The cost of doing business in Ireland has fallen – largely as a result of the recession – but broadband, legal advice and property costs remain too high, according to a new report.
The National Competitiveness Council (NCC) today published the Costs of Doing Business in Ireland in 2010 study, which analyses the relative cost of operating here using four criteria: wage costs, property, utilities and business services.
Chairman Dr Don Thornhill said much of the improvement since January 2008 was due to the recession, and he called for action to further reduce costs and improve competitiveness.
The report found although rental costs for an industrial unit in Ireland dropped 18 per cent between 2008 and 2009, this only moved the State from the most expensive to the third most expensive country for commercial rents due to similar rental falls in all other countries.
A second area of concern was locally trading sectors. The NCC found waste water services costs rose 18.8 per cent last year while legal services remain high and are 18.4 per cent above the 2006 levels.
The report noted prices of industrial electricity fell by 24 per cent last year but added much of the reduction was based on a drop in international fossil fuel prices and may be temporary.
Health and education services costs have continued to rise, the report found, adding transport costs in Ireland remain “relatively expensive” compared with our main trading partners.
Fine Gael’s enterprise spokesman, Richard Bruton, said State-provided services remained the biggest obstacle to making Ireland a cheaper location for firms and consumers. He called on the Government to develop a competitiveness plan.