Priorities for Exporters in their Submission Pre the Emergency Budget 7th April 09

The Irish Exporters Association (IEA) outlined to day (3rd April) it's priorities as proposed to Government over the past weeks , as necessary components in it's Emergency Budget due to be announced on the 7th April ;

Commenting on the exporters priorities for the upcoming Budget, IEA Chief Executive John Whelan said:

"The international landscape for Irish exporters has changed dramatically over the past 6 months, many tried and trusted customers have failed to survive the very harsh recession, and products and services once vibrant sellers are no longer deemed necessary. Trade finance, the key lubricant of international trade has dried up and credit has become a very scarce commodity. Against this background it is essential that the Government in the Emergency Budget ensure that the correct balance is struck between the necessary measures to reduce public sector expenditure and stimulate the economy , particularly the export sector where greatest opportunity lies to restore growth."

"The IEA are fully aware of the exceptional collapse in Exchequer revenue and that some additional tax measures will have to be introduced. However, any tax measures should not reduce our capacity to compete internationally, and should be capable of introduction with minimum administration difficulty from a business point of view."

The IEA recommendations for the upcoming Budget are as follows;

• Outline a credible multi-year fiscal strategy so that businesses and households know what tax burden they will have to shoulder over the next 5 years.
• Stimulate the export sector to drive the economy back to it's balanced model of the 1990's, by cutting energy regulated costs by a further 20%, and ensuring a framework for reducing wage costs by 15% across the public and private sector.

• Stem the loss of trade finance through a government guarantee scheme to support export credit insurance.
• Provide a short term grant scheme in line with EC recommended measures, to support exporter's cash flow requirements in 2009 and 2010, and prevent unnecessary market and job losses.
• Revisit the new Banking Code to increase lending to the small business sector by 50%.
• Do not increase corporation tax, employers PRSI, or excise duty on diesel for transport.
• Continue productive capital investment through a Reconfigured National Development Plan
• Public sector current expenditure must be reduced back to the levels prevailing in the late 1990's.
• A clearly defined increase in the income levy for 2009 and 2010 only, would find widespread acceptance the IEA believe. This should be geared to raise €1.0 to€1.5 billion. However, the public sector pension and other cost reduction measures must also be managed to yield at least the €2 billion originally planned for 2009.
  

END

For further info contact;

John Whelan, 087 9271243

JFWHELAN@IRISHEXPORTERS.IE