Urgent action needed to support businesses facing rising cost threats

June 1, 2017

Urgent actions must be taken on foot of today’s warning by the National Competitiveness Council about rising costs facing businesses, Social Democrats co-leader Catherine Murphy TD has said.

Deputy Murphy was commenting on the Council’s ‘Cost of Doing Business in Ireland’ report which says that rising rent and house prices will fuel calls for higher wages and ultimately damage competitiveness and the economy.

Deputy Murphy said: “This report is a warning signal that cannot be ignored. It highlights a host of pressures, including soaring property prices, infrastructure bottlenecks, skills shortages, and high costs associated with doing business.

“We need to take urgent action to support businesses and ensure our economy grows at its full potential. Business costs could be instantly lowered if we reduced rates for new businesses in their set-up phase. Investment in new apprenticeship programmes would help reduce skills shortages, especially in the construction sector.

“We could also help businesses reduce the host of administrative costs they face in paying taxes and complying with regulations. The Norwegian model of an online portal has been incredibly successful in cutting down form filling and administration for businesses in that country, and could be replicated here for a modest cost.”

ENDS

1 June 2017