2007
Press Release
5 December 2007
Budget 2008 –
Exporters Comments
The Irish Exporters Association (IEA) today 5 December 2007 responded to Minister Brian Cowen’s budget speech as follows:
(1) The National Development Programme
The commitment to capital expenditure of 6% of GNP will enable the continued rapid rollout of the National Development Programme 2007-2013. This was particularly welcomed by exporters, at a time when the exchequer funds are falling. This should help to underpin our future competitiveness.
(2) R&D
The tax credit modifications using 2003 as the base year for calculation of tax relief should see some €60m in tax credits released back to industry in 2008. This is a small amount in the context of total budgetary measures. While exporters welcome this initiative, the IEA believes it is not a sufficient stimulus for the industry.
Capital Fund Allocation
This is strongly welcomed. The IEA stated it looks forward to working with Enterprise Ireland on the best distribution of €19.9m on R&D. The €16.6m allocated to Science Foundation Ireland (SFI), bringing the total allocation up to €36.5m is considered a balanced move on the part of the Minister.
Training Fund Allocation
The IEA welcomed the allocation of €25.8m to FAS for training innovation. The Skill Nets training fund increase of €7m is also seen by the IEA as a very constructive move.
(3) Energy
The IEA has lobbied extensively for a reduction in energy costs for exporters. Whereas Budget 2008 does not address this directly, the IEA welcomes the increase in research funding of €13.2m, with particular focus on developing energy from ocean sources (subject of the Energy Strategy Statement submitted to Department of Communications, Energy & Natural Resources).
(4) Income Tax & Labour Costs
The IEA welcomed the budget as facilitating the control of labour costs as the adjustment in tax bands, in line with inflation, should enable exporters to maintain labour costs at current levels.
(5) Small Business
The corporation tax and VAT exemptions will continue to assist small business at early stages of development and, in particular, businesses taking higher risks in export markets.
(6) Cheques & Bills of Exchange
The IEA considers that paper based drafts continue to be considered a secure means of doing business in some export markets. The move to double the duty on these paper-based instruments was considered premature and will result in increased operational costs for small exporters.
Ends.
For further comment contact: John Whelan
Irish Exporters Association
Telephone: +353 1 661 2182
Mobile: 087 927 1243
About the Irish Exporters Association (IEA)
The IEA represents the needs of export industry ensuring that the necessary conditions are created and the necessary support is provided to assist companies to maximise their export sales. The IEA draws its membership from every exporting sector, ensuring that the interests of all industries are represented and promoted at the highest level.
www.irishexporters.ie
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