18th May 2015: Limerick Chamber has observed that while costs have improved significantly since 2009, Ireland remains an expensive location in which to do business relative to some of our key competitors. However, the cost differentials between the capital and the regions are deepening and Limerick Chamber is committed to ensuring that Limerick takes full advantage of this.
The chamber made its observation following the publication of The National Competitive Council’s report called ‘Cost of Doing Business. The report benchmarks key business costs across over 50 indicators.
Commenting on the publication, Limerick Chamber Economist Dr. Órlaith Borthwick said “it is worrying that the National Competitive Council finds that Ireland’s price profile not only remains high, but is in fact rising across a number of categories.”
“As an open and exporting economy it is imperative that we remain a cost competitive location in which to invest, work and live. Upward cost pressures are emerging primarily driven by labour and property costs. Irish net earnings are 11.6% higher than the euro average and the minimum wage is fourth highest”.
“Limerick Chamber is proactively lobbying for policies that will drive competitiveness for our members and the region. We are currently drafting our pre-budget submission and a key ask of our network is the need to lower Ireland’s marginal tax rate; the differential between gross and net earnings is ultimately borne by the employer,” continued Dr Borthwick.
“As well as focusing on the marginal tax rate, we are urging government to address controllable costs as the economy returns to growth. Recent discussions regarding public sector and minimum wage increases must be carefully balanced against protecting competitiveness and jobs.”
“Wage increases must be based on productivity improvements which ultimately underpin economic growth. Our members have over the past number of years been forced to address inefficiencies and drive competitiveness, particularly in the retail and hospitality sectors. Rumours of potential changes to minimum wage will threaten future growth and jobs in some sectors; Limerick Chamber is due to meet the Low Pay Commission in the coming weeks to highlight our concerns on behalf of Limerick businesses,” Dr Borthwick noted.
“Additionally, Limerick Chamber is working with our local authority and other key stakeholders in the region to address the shortage of suitable office space in our city centre. The Living City initiative which was launched last week is a welcome measure, and we are confident that more positive announcements will be made in near future.”
“Critically, this report highlights price differentials that exist across the country, specifically on the cost pressures faced in the over-heated Dublin market. This is a very promising trend for locations such as Limerick, which offers much higher price competitiveness and quality of life for those looking to invest, live and work here”.
Dr. Borthwick concluded that Limerick Chamber is committed to their pro-active lobbying agenda to ensure that the advantages of locating in Limerick are maintained and promoted.
Limerick Chamber is hosting an evening event to update members on Limerick 2030 Masterplan. Limerick City and County CEO Conn Murray will give an overview of the progress that has been made to date as well as outlining his team’s future plans and directions.
The event is taking place Tuesday the 9th of June at 6.30pm in the Savoy Hotel. Limerick Chamber members are urged to book their place as soon as possible as this will prove to be a very popular evening.
Ends
About Limerick Chamber:
Limerick Chamber is the largest business representative group in the region representing 450 businesses who support 50,000 jobs.
For more information contact Edwina Gore, egore@limerickchamber.ie 061-217607 or 083 4588466
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