The report from the Chair of the National Economic Dialogue 2024, which took place on 27 May, has published, and describes a “more shock-prone world” with changing global trade and investment patterns presenting significant implications for the domestic economy.
Under the broad headings of competitiveness and inclusion, four specific themes emerged as the key areas of concern.
- Public service delivery
- Challenges facing the SME sector
- Housing and infrastructure and
- Labour markets
A breakout session on climate actions and the green transition discussed the impact of the green transition on Ireland’s international competitiveness. It pointed to how Ireland is operating in a global market and with vast investment in the green economy by the US and China. This, and the resulting actions by other EU governments, presents a danger that Irish businesses are losing a level playing field.
There was a call to review how the tax system and further regulatory and policy certainty can assist with supporting the competitiveness of Irish businesses, particularly in giving confidence to businesses and industry to undertake the kind of long-term investments that are needed from the private sector for the green transition. There was a strong desire for multi-year budget policies that span Governments to remove the perceived risk to those investing in the green transition.
Under the theme of ‘the challenges of sluggish and disjointed systems’, actions were suggested that could make it easier to access supports, including positive tax provisions. Carbon contracts for difference, which gave some certainty for investors, especially in the higher interest rate environment, were mentioned as a possible avenue for exploration.
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