Press Release
5.00 pm 7th December 2010

Budget Good First Step say Exporters who welcome cuts in Public Sector Costs, but more Stimulus Measures needed if we are to Maximise on Export Potential and Drive Economic Growth

The Irish Exporters Association (IEA), 7th December, in the aftermath of the Budget Speech by Minister for Finance, Brian Lenihan T.D., stated:

· The measures to reduce the unsustainable cost of the public sector is strongly welcomed by the IEA, and will go a long way to returning sanity to much of our cost base. This must now be delivered on and not frittered away by shifting the cost burden to the private part of the economy.

· Holding the income tax rates is strongly welcomed, as an increase would have impacted exporters’ competitiveness.

· The spreading of the tax net was an essential requirement to ensure a more sustainable economic system into the future.

· The proposed restructuring of the BES Scheme toward a more employment generating model is a measure that the Exporters Association has called for. The IEA looks forward to finalising the details of the scheme with the Department of Finance and the state promotional bodies.

· Extending the Employers PRSI Rebate Scheme for a further year was a positive employment step and one the IEA had called for.

· The cap on R &D tax incentives must be revisited as it will damage indigenous hi-tech export development.

· The reduction in the Air Travel Tax is a small but welcome measure to reduce the cost of international travel.

· The public private partnership arrangement to support a progressive capital programme is also a well intentioned move.

· The expected increase in excise on diesel must not be allowed to affect the competitiveness of transport to export markets, and the IEA again call for the essential users rebate scheme prevalent in France, to be introduced here.


In conclusion, John Whelan, Chief Executive of the IEA stated:
“Exports are already driving growth of the economy but if we wish to achieve a higher export growth level and more assuredly reach the targeted Exchequer income and employment levels outlined in the Four Year Recovery Plan, we will need greater stimulus measures than has been forthcoming in the Budget today.”

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For further information, please contact:
John Whelan
Mobile: 087 927 1273
Email : jfwhelan@irishexporters.ie