strategy statement03 - 05

dimensions of sustainable development - economy, environment and society - must be integrated in a balanced way into all areas and at all levels of policy-making and action.

To date, the main impact of sustainable development on the enterprise sector has been in terms of the environmental dimension. For example, over the past few years there has been an increasing level of new environmental legislation affecting business, mainly emanating from the EU. This trend is set to continue. Climate change will be particularly important for the enterprise sector in the coming strategy period. Meeting Ireland’s target for emissions reductions – set in 1990 – is now posing a serious challenge.

However, there are other “drivers” of the sustainable development agenda, including pressure from consumers and other stakeholders and increasing awareness among enterprises of the competitiveness and cost advantages of improving their resource use and reducing their environmental impact.

The Department has published a detailed strategy that sets out our plans to promote and achieve sustainable development. The strategy is available on our website (www.entemp.ie). Implementation of the strategy will involve working closely with the Departments of Environment and Local Government, Finance, and Communications, Marine and Natural Resources and bodies such as the Environmental Protection Agency and Sustainable Energy Ireland.

Effective regulation has a vital role to play in safeguarding businesses and consumers in their transactions with one another. To be successful, regulation must be balanced so that it does not create disproportionate burdens on those affected. Appropriate regulation can contribute to national competitiveness by ensuring that Ireland has an attractive, safe and well-regulated environment which is conducive to trade and the attraction of internationally mobile investment.

Figure from page 27

Data from the Annual Competitiveness Report 2002 show that, internationally, Ireland performs slightly above average both on competition and regulation. However, there are clearly some key areas of the Irish economy which would benefit from further reforms of regulation and increased competition. As indicated earlier, this has become more evident over recent years, with the rapid increase in prices and costs to consumers and firms.

Following the publication of the OECD review, Regulatory Reform in Ireland, the Government published a consultation document entitled Towards Better Regulation and a national policy statement is now being drafted. Work is also being undertaken on Regulatory Impact Analysis with the ultimate aim of ensuring that new primary and secondary legislation undergoes formal assessment.

1.15.1Competition

The Competition Act 2002 made improvements in a number of areas, including the Competition Authority’s powers, the treatment of various offences, the Competition Authority’s advocacy function, and its relations with regulators. In addition, the Authority’s resources have been increased to complement its new powers.

1.15.2Corporate Governance

There has been a major change in the external environment deriving from the emergence of a number of international corporate scandals, notably in the US. These corporate collapses and oversight failures have had a negative impact on global capital markets, and have led to a loss of investor confidence in the transparency and reliability of audited financial statements. This, in turn, has led to moves both at EU and international level to review systems of corporate governance within industry, by the accounting and auditing professions, and by public