Wednesday 10 October 2018: Limerick Chamber has welcomed what it described as a fundamentally positive budget but expressed concern about the timing of the increase in VAT with Brexit around the corner.
Responding to the Budget 2019, Limerick Chamber CEO Dee Ryan said that positive initiatives included Brexit measures to invest in making ports ‘customs ready’; the Future Growth loan scheme for SMEs, Agricultural and Food sector; as well as increased funding for Education and Childcare. However, as the detail has yet to emerge on all of these initiatives, it is still unclear what shape they will take and if they will translate into actual cost savings for employees and their employers.
“It’s a time for holding-your-breath with regard to Brexit. However, the increase in the VAT rate for the Hospitality sector, particularly its timing, is disappointing for our Mid-West members,” the Chamber CEO stated.
“It leaves hotels, bars and restaurants in our area even more exposed to the early downside of Brexit, which will undoubtedly result in a sharp drop in U.K. visitors once sterling devalues and makes Ireland a more expensive place for UK citizens to visit.”
The Chamber acknowledged the increased investment the government is committing to housing, education and health.
“Given the significant investment in Housing and Health, which is most positive, the overall amount left for other measures was limited. We support Minister Donohoe’s cautious approach with the establishment of a Rainy-Day fund, and welcome the balancing of the budget for the first time in a decade.”
Meanwhile, speaking at this morning’s PwC Budget 2019 Breakfast, hosted in conjunction with Limerick Chamber, guest speaker Prof. Alan Ahearne, NUIG, said:
“The economic backdrop for Budget 2019 remains generally favourable with global economic growth still solid, though there are pockets of concern. The establishment of a Rainy Day Fund is welcome, but we many need larger fiscal buffers to make room to respond to the next recession when it comes.”
Prof. Alan Ahearne, NUIG and Limerick native.
Said Mairead Connoly, PwC: “Budget 2019 was a cautious balancing act by the Minister. The focus was very much on growing and protecting the Irish economy in the face of external threats.”
To view images from the PWC Budget Breakfast please click here
Ends
Share On.....