Budget 2013: A Message from Business to Government

With less than 48 hours to go before the Fine Gael/Labour coalition delivers its second budget, Chambers Ireland has reiterated its call for Government to help businesses and job creators to succeed by focussing on employment and the domestic economy.

Speaking this morning (04/12/2012), Ian Talbot, Chambers Ireland Chief Executive said, “We are suggesting three key policy priorities that, if implemented, could go some of the way to easing the two main problems facing Ireland: the deficit and unemployment.

1. Firstly, the path to economic growth and a sustainable recovery is job creation. While the Action Plan for Jobs 2012 was strong on aspiration, it was weak on delivery. This budget must create an environment conducive to job creation that will get people back to work, thereby increasing revenues through taxation and reducing pressure on the social welfare system.
2. Secondly, there must be no new taxes on employment. Proposals from the Department of Social Protection that the cost of sick pay will be transferred to employers in the private sector and PRSI rates paid by employers will be increased, would further weaken the business case for creating new employment.
3. Finally, it is essential that social welfare rates do not act as a perverse incentive for people to remain unemployed. The system should be structured in such a way that people are encouraged to gain employment and, where possible, move from working three days a week to five days a week. Clearly, these are tough times for job seekers and welfare provides essential supports for the most vulnerable in society; however, people should be supported back to work wherever and whenever possible.”

“Given the context of an economy where we continue to borrow more than €1 billion every month, it is essential that the deficit is reduced. The best way to achieve this is through cost containment measures, rather than tax rises. Government needs to be mindful of these realities as we face in to 2013,” he concluded.

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For further information contact Amy Woods, Chambers Ireland on 01 400 4319, 086 6081605 or email amy.woods@www.chambers.ie.