BUSINESS REACTION:EMPLOYERS' GROUP Ibec has expressed disappointment at the Budget, saying it could have done more to create jobs and restore competitiveness. It said the €6 billion adjustment, while necessary, could have been done in a way that was "less damaging to economic growth and employment".
Ibec said the Government’s proposals were too heavily focused on raising tax revenue and cutting capital expenditure. “More should have been done to reduce current expenditure, which remains too high given the major fall in tax revenue,” director general Danny McCoy said.
Ibec said the reduction in employer PRSI relief would cost Irish businesses about €90 billion annually. It was also concerned that the increase in excise on petrol and diesel would “lead to a significant loss of competitiveness for Irish business”.
Ibec welcomed the internship programme, which could create opportunities for graduates and limit emigration.
The Construction Industry Federation said the €1.8 billion reduction in capital investment would create a drag on domestic recovery and could cost 25,000 jobs in the building and related sectors. “The wrong choice has been taken in terms of the proportionality of cuts between capital investment and current spending,” director general Tom Parlon said.
Mr Parlon said changes to residential stamp duty would help to stimulate property transactions.
The Small Firms Association said the measures taken in the Budget were not sufficient to improve consumer confidence and get people spending.
The Government had ignored the “critical need” for getting credit flowing among small firms. “We will still require Government intervention to bridge this gap, with some form of risk sharing scheme between Government and the banks,” association chairman Dr Aidan O’Brien said.
The association welcomed the retention of the 12.5 per cent corporation tax rate and the extension of the PRSI incentive scheme.
Isme, which represents small enterprises, described the Budget as a wasted opportunity without necessary measures to stimulate businesses, jobs or the economy.
