Reaction to Budget 2011
7th December 2010
Responding to today’s Budget, Cork Chamber acknowledged that difficult decisions were required in order to stabilise the public finances, saying the swift implementation of measures to build on the strengths of the economy was essential to build confidence and achieve the priorities of economic growth and employment creation.
According to Cork Chamber President Ger O’Mahoney, “Any increases in the cost of employment are regrettable in the current climate. We are extremely critical of the reduction by 50% of employer PRSI exemptions on pension contributions. Also, the increase in self employed PRSI contributions may dissuade entrepreneurs. The extension of the employer PRSI incentive scheme until the end of 2011 does however offer employers some respite.”
“As called for in our pre-budget submission to Government, the Chamber is pleased to see a revised and simplified Business Expansion Scheme. The new Employment and Investment Incentive will include a greater maximum amount that can be raised by companies and will enhance the ability of growing companies to access investment.”
“This budget needed to deliver a more sustainable tax base and more efficient public spending while supporting entrepreneurship and competitiveness. We would have expected a greater emphasis on employer supports and stimulus in order to protect existing levels of economic activity and promote growth,” Mr. O Mahoney continued.
Mr O’Mahoney concluded, “Studies by the Chamber have confirmed the role Cork Airport plays in securing business connectivity and inward tourism and investment. The reduction in the air travel tax combined with the airport incentive scheme is a welcome opportunity to fulfil Cork Airport’s critical role in regional economic development.”
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