Effective competition is a prerequisite for the objectives of the government's industrial policy.

Commentary on the draft government employment policy

The Competition Authority has reported Review on the draft of a new government industrial policy. The Competition Authority considers it positive that the proposed industrial policy is based on objectives of innovation, diversification of export sectors and diversification of jobs nationwide, all with an emphasis on opportunities for increased productivity and enhanced competitiveness. Furthermore, it is positive that the draft's discussion of specific areas of economic activity does not appear to involve a plan for the government to provide certain industries with special support over others (picking winners) or to protect them from external competition (protectionism).

Í the review it is emphasised that effective competition needs to be made a visible cornerstone of policy, inter alia through a legally binding competition assessment, regulatory simplification and improved public procurement. Furthermore, numerous opinions from the Competition Authority are outlined which could support the objectives of the industrial policy. The review also points out that effective competition is a prerequisite for the government's objectives of increased productivity, innovation and international competitiveness to be achieved, and proposes that the following sixth general policy focus be added:

We will strengthen competition by facilitating access for foreign and domestic operators, tackling all forms of barriers to competition, and ensuring that regulation, concessions and public support do not distort competition.

Such a policy focus would help ensure that employment policy rests on a strong foundation and that the objectives of increased productivity and value creation are achieved in the long term.