The business sector has broadly welcomed the new programme for government, which was agreed by Fine Gael and Labour at the weekend.
Lobby group Ibec responded positively to the programme's support for job creation and efforts to tackle the budget deficit in line with the EU-IMF programme.
However, it added that any move to reverse the minimum wage reduction or introduce collective bargaining rights was "at odds with the economic needs of the country."
Ibec welcomed the commitment to Ireland’s 12.5 per cent corporation tax, and the decision not to increase the top marginal rates on income Further commitments to hold employers’ PRSI at current rates and offer a reduced rate for some employments were also received positively.
The Small Firms Association gave a cautious welcome to the new programme. It praised the commitment to introduce a loan guarantee scheme and support for job creation. However, the association criticised the proposal to reverse the cut in the minimum wage.
The association’s director Avine McNally said that many firms would be disappointed that there was no commitment for a reduction in local authority rates or a reduction in employers PRSI. However, she welcomed that some other business costs such as commercial rents would be addressed.
Isme described the programme as a 'mixed bag' saying that while some aspects of the deal were good for small and medium-sized firms, issues such as cost competitiveness and public sector reform "were either ignored or fudged."
The association welcomed the decision to ensure an adequate pool of credit for SMEs and the setting up of a strategic investment bank. It also said decisions to reduce employers PRSI and VAT on services and abolish the travel tax were all steps in the right direction but was critical of the decision to reverse the minimum wage reduction.
Chambers Ireland expressed disappointment that some of the measures outlined in the programme for government may not go far enough to help businesses create jobs.
The organisation's deputy chief executive Seán Murphy said the decision to reverse the cut in the minimum wage was "disappointing" and could undermine some of the recent gains Ireland has made in terms of cost-competitiveness.
The Construction Industry Federation (CIF) said investment in infrastructure under the programme offers the potential for a significant employment boost, but warned of the need for "significant reform" of how projects are delivered.
Elsewhere, the Irish Hotels Federation (IHF) called on the incoming government to make low-fare air travel a central plank of its tourism policy in an effort to reverse the 2.2 million decline in overseas visitors since 2007.
