Complacency about future business growth is a key risk facing the country ahead of the next general election.
That’s the view of employers’ representative organisation, Ibec, which launched its election manifesto ahead of the next national vote, the date of which has yet to be decided or disclosed.
Ibec says the current strength of Ireland’s economy offers a generational opportunity for the next Government to be able to address barriers to growth and tackle threats to competitiveness.
It claims Irish firms involved in exporting will increasingly face challenges during the lifetime of the next administration.
This, it says, will be because of rising geopolitical tensions, increasing trade barriers and the growth of competition for investment that is being driven by states.
Danny McCoy, the chief executive of Ibec, predicted that the general election will be one of the most consequential in recent times.
“As we look toward the next general election, the economy is in a position of real strength,” he said.
“Our message to all political parties is that business and economic growth will underpin much of the progress we hope to see during the next government’s term.”
“Therefore, it is essential to ensure that policies support domestic business growth while enabling new waves of investment by global companies.”
Among the policy measures the lobby group proposes parties adopt in order to ensure competitiveness is maintained are an entry point to the top rate of tax above the average full-time wage and a sustainable, broad tax base.
It says it also wants to see a clear strategy for harnessing Ireland’s potential for renewable energy and energy costs which are competitive with EU norms.
The organisation also proposes that the growth of labour costs should be in line with competitor economies and that Ireland should be an innovation leader in Europe.
The regulation agenda should be better resourced and placed at the heart of Government, it says.
Planning timelines also need to be reduced and major projects delivered, it suggests.
On climate it says sectoral emissions ceilings must be met, while on housing it says between 50,000 and 60,000 new homes need to be constructed each year.
At EU level, Irish influence needs to continue, while all-island investments and approaches need to be adopted in areas of common interest, including climate action.
The manifesto also says the labour market must stay open to talent from around the world and the National Training Fund used to meet future skill needs.
“Businesses of all sizes across the country have played a vital role in the growth of cities, towns, and villages, ensuring greater wealth distribution than ever before,” said Danny McCoy.
“Ibec and our members are extremely optimistic about the resources available to the next government and what can be achieved. However, it is conceivable that future governments may not have the same level of resources available as the next one.”
“Therefore, now is the time to address the challenges that have been the Achilles’ heel of growth, such as the long and drawn-out nature of infrastructure delivery, poor public services, and housing issues.”
“Given the fortunate position we find ourselves in, one of the biggest risks for Ireland now is complacency, especially in the face of a highly volatile geopolitical landscape and intensifying global competition for investment.”
Article Source: Ibec warns against complacency ahead of general election
