strategy statement03 - 05

Given the particular constraints on resources over the coming strategy period, the Department will increasingly be faced with a need to identify priorities and to switch resources from lower priority areas to achieve its strategic aims.

Figure from page 47

The EU Lisbon strategy is based around a goal of making Europe the most dynamic, competitive knowledge based economy in the world, with more and better jobs and greater social cohesion.

This environmental analysis and the conclusions drawn from it serve to highlight the fact that many of the issues highlighted in the Lisbon strategy – competitiveness, knowledge and enhanced job quality – are vital to the mission of the Department.

We take a broad and holistic view of competitiveness. We do not see it as a “race to the bottom” driven only by a desire to cut costs – although our international cost competitiveness is important. Our broad view of competitiveness hinges on factors such as innovation, competition, quality employment, lifelong learning, better regulation and effectively functioning markets. In line with the vision of where the EU wants to be, overall Government strategy is clearly oriented towards building the kind of economy and society that can sustain high living standards in an inclusive way. Achieving real competitiveness can play a vital role in achieving this aim.

There is a strong inter-relationship between competitiveness and quality employment. Competitiveness at national and firm level is the major determinant of sustainable employment, on the one hand, while factors such as the quality of the learning system are crucial to employability on the other. Similarly, where other policies underpinning growth are operating effectively, labour supply has a critical effect on determining the speed of growth and, through its effects on wage rates, also feeds back into competitiveness.

Our employment performance has been outstanding. But we now face a significant challenge in maintaining low levels of unemployment. Moreover, we also need to ensure that we grow

competitiveness in a way that generates quality employment, and take steps to ensure that people have the means and opportunity to grow their skills to achieve long term employability.

The Department will also continue to pursue broader social goals to ensure that all members of society benefit from the work of the Department in establishing and protecting rights through the development of policy, legislative and institutional frameworks. Consumer welfare issues, employment rights and a continuing drive to ensure that people who are disadvantaged gain access to rewarding and meaningful work are especially relevant here.