Key measures in Four Year Plan
25th November 2010
Key measures in Four Year Plan need to begin immediately to support enterprise, growth and confidence – Cork Chamber
Cork Chamber today (November 24th) described the publication of the Government’s four year economic plan as a key step in stabilising the economy, adding that specific actions in the plan needed to be rolled out quickly in order to support enterprise and increase confidence.
Discussing the plan Cork Chamber President Mr Ger O’Mahoney said, “The Government faced two challenges today: delivering a clear plan for deficit reduction and setting the stage for business to lead Ireland’s recovery. The plan is important to rebalance the economy with a broadened, more sustainable tax base, to enhance competitiveness and to develop a more efficient public sector. The Plan identifies key sectors which will drive economic growth and its commitment to maintaining the corporate tax rate is vital. The extension of the Employers PRSI exemption scheme is encouraging, however the staggered VAT increase is a matter of concern particularly to SMEs”.
Mr O’Mahoney continued, “We are particularly concerned at the significant cut to the Local Government Fund (LGF) this year, in the absence of any additional revenue raising measures being introduced in 2011. In addition, we call on Government to ensure that cuts to the LGF are spread equitably across local authority areas. The proposal to end central exchequer contributions to the Local Government Fund by 2014 must also be matched with a commitment that any income raised locally through water charges and site value taxes are ring fenced for local spending. It is critical that we create strong local government models, which are properly resourced to foster regional economic development. If this does not occur, central government runs the risk of being the catalyst in the deterioration of local government services, with the potential for the business community to continue to be the funder of last resort”.
“The Plan’s commitment to implementing the recommendations of the Local Government Efficiency Review Group with the aim of reducing the level of rates charged to businesses should begin immediately. It is regrettable that while the Plan commits to the full implementation of the Croke Park Agreement, there is still no realistic idea of what the potential savings under the Croke Park agreement could be, as specific targets and firm timelines have not been set”, concluded Mr O’Mahoney.
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