Wexford Chamber Eagerly Awaits Budget 2014
The Government’s third budget will be published on 15 October, and while the nature and scale of both fiscal and spending adjustments is unclear, there is little doubt that further tax raising measures will be introduced in the budget, possibly the last in the recent series of painful budgets. PwC in association with Wexford Chamber will be holding a Budget Briefing in The Talbot Hotel on Wednesday, 16 October that will assess Budget 2014’s impact on business. The briefing commences with registration at 7.45am and concludes no later than 9.30am.
Wexford Chamber President Fleur Creed is eager to see if issues raised in the Chamber’s pre-Budget submission have been taken on board. “Budget 2014 comes at another crucial time for the Irish economy and despite recent positive news, such as the deal on the promissory notes, Ireland continues to borrow over €1 billion every month” said Fleur.
“It is not a case of either or when it comes to austerity but a case of ensuring there is balance between the need to match costs to income while also encouraging investment, which is the key to growth and prosperity,” she adds.
In preparing its pre-Budget submission, Wexford Chamber took account of one of the biggest problems facing the business community, the collapse in domestic demand, the related impact on confidence and levels of economic activity. While Government has improved conditions for investment capital availability, many firms continue to struggle as they simply do not have adequate cash flow to remain sustainable or to grow their activities. Wexford Chamber has called on Government to support business in a number of areas.
Wexford Chamber believes that the Government should not be complacent in its determination to make progress on Ireland’s competitiveness and should make budgetary and investment decisions to improve the productivity of the traded sector.
“This has to be a priority. The Government needs to set and communicate clear targets for the reduction of costs to business, particularly in areas such as energy, healthcare, local government and utility costs,” Fleur added.
In the area of taxation, Wexford Chamber has called on Government to defend the current 12.5% Corporation Tax rate as a vital attractor of foreign direct investment, to steer away from any further tax increases other than those already scheduled, on either business or consumers, and to hold sick pay costs and Employers’ PRSI contributions at their current levels.
Wexford Chamber has also requested that:
• certainty is given to the 9% VAT rate for the hospitality sector
• cost savings be secured from Local Authority mergers, and that they are passed on to business via targeted reduction in rates
• the requirement for businesses taking over a previously occupied building to pay outstanding rates bills owed, be removed
• a business’s cash flow be boosted through not requiring them to pay rates on building space no longer required
• the qualifying amount for companies to use cash flow accounting be increased
• the regime re Tax Clearance Certs for government contracts be modified
• employers’ PRSI be maintained at current levels as any increase in the PRSI contributions of employers could have a detrimental impact on SMEs.
• more be done to grow the number of companies applying for the Seed Capital Scheme and that the Seed Capital Scheme and the Employment Investment Scheme be improved
“Wexford Chamber believes that considerable public spending should be focused on the need to get people back to work, and contests that reforms can be made in a number of distinct but related areas if we are to create an environment which facilitates job creation, work is rewarded, and unemployment and underemployment are reduced” Fleur concluded.
For further details or to make a booking please contact Wexford Chamber on firstname.lastname@example.org or 053 91 22226
Tickets are limited and cost €25 per person.