The Tánaiste today conceded the Government has learned a "harsh lesson" in relation to competitiveness and warned there were sectors where "the chill winds of economic reality" have yet to reach.
Speaking at the MacGill Summer School, Glenties, Co Donegal, today, Mary Coughlan, the Minister for Enterprise, Trade and Employment, said the events of the past year served as a reminder that "Ireland is a small vessel on the economic tides".
"This reality has been brought home to individuals and families across the country through jobs lost, income reduced or tiger-era certainty dashed. It is a difficult time for many.
"To be successful, it is clear that we need all sectors of the economy to reboot to the new reality," the Minister said during an address on creating a "smart economy".
"It is my view that we must never again allow costs to drift out of line with those of our competitors. We have learned a harsh lesson, but as a Government we have acted with resolve and will continue to take the necessary actions to restore our external competitiveness.
"There is more work to be done. There are certain sectors where competition and the chill winds of economic reality have yet to reach. Certain professions have yet to play their part and have yet to tell us how they will reduce their fees and charges. There is no place in an Ireland where the majority have to make painful choices for this level of economic conceit from any sector" Ms Coughlan said.
The Minister noted that the report from "An Bord Snip Nua", chaired by Colm McCarthy signalled there were "further difficult spending decisions" ahead for the Government.
"There is a growing acceptance however that the need to stabilise our public finances, restore our competitive position and get our banks working again is a prerequisite to recovery," she said.
"Be in no doubt however that addressing Ireland’s cost competitiveness is of fundamental importance to recovering long-term sustainable growth and is a foundation stone for the building of a smart economy."
"In our exuberance over the last decade we lost sight of the importance of retaining a competitive cost position. We must recover this lost ground quickly and restore flexibility and adaptability to our small but internationally connected economy," the Minister told the summer school audience.