IEA Post Budget 2015 Statement
Immediate 14th October 2014
Time; 5.15 pm
The Irish Exporters Association (IEA) broadly welcomes the 2015 export friendly budget. The organisation will continue to call on government to deliver on SME financing and on measures to attract and retain talent.
Simon McKeever, Chief Executive of the Irish Exporters Association commenting on Minister Noonan’s Budget Statement 2015:
“The Irish Exporters Association has lobbied hard around the following areas in its pre-budget submission and welcomes the below measures announced in Budget 2015 as outlined by Minister Noonan – we are particularly pleased to see:
- The changes in the income tax system, including the reduction in the marginal rate of tax to 40% from 41% and the small reforms in the USC. These changes will help improve our competitiveness on the world stage improving our attractiveness as a location to invest.
- The expansion of the FED (Foreign Earnings Deduction) to include new countries in the Far East and Asia, in Chile and in particular to support our rapidly expanding export market in Mexico, along with practical measures around travel time. This measure will encourage more companies to explore and develop new exports.
- The re-assertion of our commitment to the 12.5% corporation tax rate and the move to abolish the so called “Double Irish”. These measures give certainty to our existing and prospective Investment community as well as enhancing our reputation abroad.
- The decision to not increase excise duty on motor vehicles, petrol and diesel. Keeping transportation costs at bay, particularly in times of lowering global oil prices will only add to our competitiveness.”
More is needed:
Simon McKeever went on to comment that more is needed and that the Minister for Finance could have gone further in a couple of areas:
- “We await to see further developments of the Road Map on Business Investment as outlined by the Minister as more work is required, particularly in the area if SARP – the Special Assignee Relief Programme (SARP). We need to make sure we are doing enough to attract and keep the best talent in this country and there has been miniscule take-up of this. We lobbied repeatedly on this one, we’re delighted to see it get a mention and look forward to seeing the planned approach.
- We note the Minister’s comment “…that SMEs are the lifeblood of our economy and play a crucial role in economic and employment growth…” However, finance is the lifeblood of these SME’s and they are still finding it difficult to get enough of it. We see a lot of things being mentioned such as the launch of the Strategic Banking Corporation of Ireland at the end of this month, potential moves by PTSB and Ulster to join the Credit Review Office process and we need to see action in this area, and very soon.We are disappointed that there was no announcement for SME financing in today’s budget. We have repeatedly called for an independent SME Bank to be set up which will provide the boost needed to get this sector going again.”