CYPRUS’ productivity level is 85.6 per cent of the EU average, giving the island a ranking of 16 out of the 27-member bloc.
“We are not the worst but we are not satisfied being average or towards the bottom of the list,” Labour Minister Antonis Vassiliou said.
“We aim to get to the top of list like Luxemburg and Ireland: an aim we believe is possible.”
The minister was speaking at a presentation to announce a National Productivity Strategy for 2007-2013. The strategy aims to raise productivity to the EU average over the next six years while simultaneously achieving better employment output, respect for the principles of equality, environmental protection and social embodiment.
Despite previous governments’ failures to implement a similar strategy, Vassiliou was confident this government had learned from their mistakes and would be successful in its efforts.
The launch of the programme was welcomed by trade unions, the Cyprus Chamber of Commerce and Industry, and the Cyprus Employers and Industrialists Federation. Representatives from each organisation said increasing productivity would benefit the economy and increase competitiveness.
“Our ambitions strategic aim is to speed up the rate of productivity so that by 2013 the total labour productivity reaches the EU average,” Vassiliou said.
“We do not aim to achieve the performance of the leaders, such as Luxembourg, Ireland or Belgium, today, but I hope that we will be in a position to do so at the completion of the programme.”
Vassiliou said the strategy was based on four main points.
Replacing low productivity jobs with high productivity jobs while simultaneously exploiting manpower and incorporating research and development in productivity procedures, putting an end to unproductive practices and institutions in the civil services, developing a productivity culture, and promoting targeted research on productivity issues.
The action plan will initially cost £2.2m for the 2007-2009 period. The main works that will be implemented include motivating businesses to replace low productivity roles with high productivity roles, which will be co-funded by the European Social Fund, research into exploiting human resources, issuing productivity indicators, and incorporating the meaning of productivity into education.
“The strategy and National Productivity Programme the launch of which we are inaugurating today offers the platform upon which we are called to invest… Success is in our hands,” Vassiliou said.
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