Right Decisions will Bring Back Growth; Wrong Decisions will Bring Back the ‘80’s
Chambers Ireland has today (05/10/08) said that it is vital that Government take the correct actions in the forthcoming Budget to restore confidence, deal with the economic downturn and position Ireland to capitalise on the upturn when it happens.
According to Ian Talbot, Chief Executive, Chambers Ireland, “the Government must carefully consider the course of action to be taken to turn Ireland’s economy around. Last week the Oireachtas demonstrated their willingness to take decisive action but we also saw how the rapidly introduced legislation to protect Irish-owned financial institutions left others exposed. All banks providing retail services in Ireland should be given access to the same support provisions as a matter of urgency.”
Enhance Property Market Liquidity “Chambers Ireland believes that property values need to find their market level. However, at a time when we need to attract international capital, our stamp duty levels are not competitive. This has not mattered until now. By modifying stamp duty on commercial property to an internationally competitive rate of 4pc it will offer the advantage of attracting international capital into our currently becalmed commercial property market. This will also free up liquidity in the Irish market–with obvious benefits for both banks and the building sector.”
House prices: Let the Market Know “The Revenue Commissioners gather all of the information that the market needs on house sales prices via stamp duty collections. By publishing these updates online on a weekly basis, vendors and buyers would have quality information available to them to make informed decisions on house prices, thereby enabling them to buy with greater confidence,” Talbot continued.
Attract More Tax Revenues to Ireland “We must refocus our efforts to maintain Ireland’s attractiveness to mobile international capital. By dramatically increasing our network of tax treaties–currently only 45–we can drive growth by opening up new markets, particularly for our services industry. It is imperative that Ireland remains internationally competitive. By extending our network of Double Taxation Treaties it will improve trading activities and investment with the new agreement countries and further develop our international growth.”
Continue Infrastructure Investments Subject to Cost/Benefit Analysis Although curbing infrastructure development to pay for other projects may reduce current exchequer shortfalls, taking this action would ultimately damage the broader development of Ireland as a competitor to do business on the world stage. However, we believe that there is scope for a cost/benefit analysis to be undertaken on all of the capital projects planned under the NDP. This analysis should address the timescale of envisaged return, development potential unlocked by the investment and priorities,” Talbot concluded.
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For further information or to request a copy of the Pre-Budget Submission contact Jessica Dempsey, Press & Communications Officer, Chambers Ireland on 01-400 4303, 086-608 1605 or email jessica.dempsey@chambers.ie.
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