ISME urges government to address 'high-cost' business environment

The Irish Small and Medium Enterprises Association (ISME) has called on the Government to intervene regarding the current high-cost business environment, concealed in the low-level figures of overall inflation.
 
ISME was reacting to the release of the CSO Inflation figures this week and warned that economic growth for Ireland was largely dependent on addressing this issue, predicting progress would remain slow as long as businesses were forced to contend with an uncompetitive cost base.
 
The August CPI inflation figure was 0.2 per cent, with an annual inflation rate of 0.4 per cent.
 
Mark Fielding, CEO of ISME, believes the only way to improve competitiveness for small firms in Ireland is to slash state-influenced business costs.
 
"In light of concerns regarding the low inflation rate across the euro area, it is difficult to understand how Irish business costs can be constantly increasing for SME," said Fielding.
 
"Ireland continues to be a high cost business location, with excessive rents, rates, energy bills and local authority charges stifling business expansion plans and job creation. Government must act now to decrease state-influenced business costs which will improve competitiveness.
 
"The current administration has been very much focused on generating an export led recovery. However, if our state-influenced costs remain high, the efforts of the private sector will be negated.
 
"While the private sector has driven its cost base down through constant revisions, it is imperative that more effort is made in achieving real measured cost and productivity improvements in the areas influenced by the State.
 
"The latest World Economic Forum Global Competitiveness Indicator ranks Ireland at 25 which is far below the UK who are currently number nine.

"It’s clear we are still a long way from being the ‘best small country in which to do business’ and this lacklustre performance will continue until real reform and reduction of state-influenced business costs are introduced."
 
The Association has therefore called on the Government to use the Budget to find quicker ways of releasing credit to SMEs, reduce public sector costs by addressing their increments, perks and inefficiencies and more.

Date published 22 Sep 2014 | Last updated 22 Sep 2014