Limerick Chamber has called on government to use Budget 2014 to support SME’s ability to compete, grow and generate employment.
In advance of Budget 2014, Limerick Chamber has launched its pre-budget submission. The submission, prepared by Limerick Chamber Economist Dr Órlaith Borthwick, follows extensive consultation with Chamber members and policy panels.
The submission focuses on four key areas that contribute to the competitiveness of businesses;
- Access to Working Capital
- Lower the Cost of Doing Business
- Encourage Start-Ups, Enterprise Expansion, Employment Creation
- Incentivise Growth in Domestic Economy
Dr. Borthwick said, “The submission highlights key challenges faced by businesses in their quest to operate viably, generate employment and remain competitive. We identify policy options government should adopt as part of Budget 2014 which will allow our members compete nationally and internationally by ensuring no increase in the cost of doing business”.
“Budget 2013 contained an SME 10-point-plan which included a range of measures aimed at supporting small business; these did not go far enough. In Budget 2014, the Government has an opportunity to really support Irish business – the employers, job creators and revenue generators. By adopting such a policy priority, government would ensure Ireland’s competitiveness on an international level while supporting business growth and employment creation. ”
“There are many revenue neutral shifts in government policy which could significantly support the growth and cash flow of Irish SMEs, for example an increase in the qualifying amount for companies to use cash accounting to €2.5million; freeze employers PRSI at current levels; no transfer of sick pay obligations to the employer; as well as the retention of 9% VAT rate for the hospitality sector. “
“Other supports which we are lobbying for as part of our pre-Budget campaign include the ability for start-ups to offset corporation tax against other taxes due over a five year period; a temporary reduced rate of VAT on housing repair, maintenance and improvements; more equitable calculation of commercial rates which takes into account economic circumstances and ability to pay; as well as an array of incentives to encourage firms to increase head count and targeted supports at sectors with a recognised skills shortages. “
“As part of our lobbying campaign we will be highlighting these issues to key government Ministers and Departments. Our message is clear. Budget 2014 must support SMEs – there can be no further increases in the cost of doing business and Ireland’s competitiveness internationally can no longer be eroded by what have been misguided government policies to date,” Dr Borthwick concluded.
Share On.....