Small businesses - IBEC wants measures to help jobs growth Employers' group IBEC has urged the new government to take a number of measures to help encourage businesses to create jobs.
One of its main recommendations is a loan guarantee scheme for small businesses, which it says is present in many other EU countries.
In a report called 'Delivering the Jobs Agenda', IBEC also calls for a reduction in commercial rates and a targeted reduction in employers' PRSI, adding that these two measures could be funded by the introduction of a property tax. IBEC also urges a new government to reiterate its commitment to Ireland's 12.5% corporation tax rate.
In a separate quarterly economic outlook, IBEC forecasts that the economy will grow next year for the first time since 2007, led by the export sector. But it says domestic demand is still fragile, adding that consumer spending is likely to drop marginally in 2011.
IBEC believes the economy, as measured by GDP, will grow by 1.8% this year, though GNP growth will be more muted at 0.8% because of weak domestic demand. The IBEC forecast is more optimistic than the 1% GDP growth predicted recently by the Central Bank.
The body says the cost and availability of credit is the biggest issue facing the small business sector, making expansion impossible and hitting the prospects for jobs growth. IBEC is calling on a new Government ot bring in measures such as a loan guarantee scheme for small firms.
It also urges the new Government to spearhead a 'co-ordinated push' to aggressively promote and sell Ireland internationally in the coming months.
IBEC forecasts that investment will fall by another 4% this year, due to weakness in the construction sector, though investment in machinery and equipment may pick up. It predicts an average inflation rate of 1.5%. IBEC says a little inflation would be 'no bad thing', but imported inflation from oil and food prices will affect spending power.
IBEC says there is 'little or no' wage growth in the Irish economy, and that most firms plan further pay freezes in 2011. It says pay rates are about 5% lower than pre-crisis levels, while our main trading partners have recorded rises of 5% in the same period.
Meanwhile, Social Justice Ireland has called for a wider tax base. It also wants to see the EU-IMF deal renegotiated in the interests of social fairness and also calls for job creation to be prioritised.
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