Responding to the Budget 2012 measures announced by Minister for Finance Michael Noonan TD; Graham Byrne Director, Bibby Financial Services Ireland said:
“The lack of long term, even logical thinking apparent in today’s budget is of major and grave concern. The Irish populace is relying on businesses, specifically indigenous SMEs, to save our economy from slipping into further turmoil. The extreme austerity measures of this Budget coupled with yet another version of a weak Loan Guarantee Scheme that has so far all but failed, is heavily detrimental to business survival, never mind the recovery and growth it forecasts.”
“Too often we have been told that we have to be realistic and accept the harsh measures required to address the
significant exchequer deficit. However true, it is the Government who need to be realistic and accept that austerity measures and growth are at opposite ends of the scale.
“Whilst this is the current Government’s first Budget, we would be mistaken to fall into the trap of believing that the measures announced today are anything new. Political optics do little to distract from the short-sightedness that remains at the fore.
“In the intervening years since the collapse of the Irish bank sector, SME owners have adapted accordingly where possible and it is time that the Government played catch-up and did the same. The nature of how business is done in Ireland, and globally has changed; these challenges have created opportunities but these opportunities need to be supported by all key stake-holders in the economy. Business owners have been left with no choice but to move away from relying on traditional lenders and embrace new ways of doing business and sourcing credit.
“There is some good news in the introduction of the Foreign Earnings Deduction to support companies seeking to expand into emerging markets. This will go some way towards assisting Irish exporters who our own research has shown need practical measures and support. Also, the extension of the corporate tax exemption for new start-up companies for the next three years is to be welcomed as well as the R&D Tax Credit to help boost enterprise. However, the substance and support structures behind this remain to be seen to stimulate innovation, enterprise and opportunity to help kick-start the economy.”
Posted on 06 December 2011