Business group welcomes Spring Statement

Press Release

Limerick Chamber Economist Dr. Órlaith Borthwick has today (28^th April 2015) welcomed the inaugural Spring Statement by government.

“The Spring Statement has ignited a welcome discussion on budget 2016 priorities in the context of where Ireland wants to progress, both in terms of our economic and societal aspirations.

As outlined by Minister’s Noonan and Howlin, government will spend between €1.2b and €1.5b in Budget 2016. Interestingly, there appears to be agreement across government that this money is to be equally split between taxation and spending measures.

In a pre-election year one imagines that taxation measures will primarily be aimed at ensuring that net pay increases are felt by ‘middle-income’ earners. This is an important policy shift which will facilitate increased demand for goods and services. The cyclical impact of this injection of money will drive increases in domestic demand; a particularly stagnant metric which needs a boost to remove our over-reliance on income from exports as a driver for economic growth.

As a business representative group we have lobbied for the sector specific taxations initiatives which have been introduced over the past number of years. We will continue with this agenda into Budget 2016. Job creation is the core focus of government and supporting businesses, the generators and creators of employment, is the key tool in which to achieve this.

Any expenditure measures introduced must be strategic and effective in supporting and facilitating an improved business environment; they cannot be overly focused on current account matters. Key strategic capital investment programmes need to enhanced, particularly investment in roads and broadband in the regions outside of Dublin. For example an improved road infrastructure connecting Foynes Port to the national road network will enable expansion and growth of this economic driver for the entire region.  A by-pass of Adare is a long-overdue bottleneck; while motorway inter-urban connectivity between Limerick and Cork is an essential piece of national infrastructure which needs to be prioritised.

Limerick continues to prove its attractiveness as a location in which to invest and do business, recent expansion and investments by world leaders such Northern Trust, Dell, Regeneron, Analog, J&J, Optel Vision and Amax highlight the talent pool and high quality of life that we have to offer. Limerick Chamber plays a key role in lobbying for a business environment which facilitates such business and we welcome Minister Noonan’s commitment to Ireland’s 12.5% corporate tax once again in the Spring Statement” concluded Dr. Borthwick.

Limerick Chamber has commenced its consultation with members to develop a suite of pro-business policy measures which it will be lobbying government to adopt as part of Budget 2016. The Chamber invites input from members.

Ends

For more information contact Dr. Órlaith Borthwick

E| oborthwick@limerickchamber.ie

M| 087-9581318

Notes to editor:

Limerick Chamber is the leading business organisation in the Midwest representing the interests of over 450 businesses that support 45,000 jobs across the region.

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