The Irish Exporters Association (IEA) today welcomed the new Programme for Government, agreed by Fine Gael and Labour across the weekend
The IEA in particular welcomed the supportive actions to increase exports that the Parties were committed to, but warned of the dangers of reversing of the minimum wage, pointing out that this could start a cycle of wage rises which could derail a return to competitive exporting.

IEA chief executive John Whelan said:
‘’On a broad front , the Government’s commitment to the 12.5% corporation tax , and the important public sector reform required as part of the IMF/EU deal , is a solid basis for a return to confidence in our dealings with international investors .
However, this must be linked with a sustained effort across all Government departments and across all sectors of the economy to reduce costs of trading so that our export growth can continue.’’

The IEA further stated;
The Programme for Government has many of the features that exporters have been pushing for, and we look forward to a rapid implementation of the measures, to underpin the export growth which is underway;
· To lower the cost of employment through PRSI reduction.
· To assist business to continue to spend on R & D , by rapidly amending the Finance Act so that ;
-Companies in receipt of RTI grants will automatically be entitled to the R&D credit.
-Companies can offset the R&D credit against Employers’ PRSI and against corporation tax.
-Companies with R&D spend of under €100,000 per annum will be entitled to a full tax credit on the spend, rather than the increment over  the 2003 base year threshold.
· To improve the flow of funds to exporters by introducing the credit guarantee scheme
· To reduce costs and bureaucracy on services through VAT reductions and in the case of services exports elimination of VAT entirely. .
· To take advantage of the international opportunities in the agri-food sector by tearing down the barriers to growth , and promoting Irish brand development , one such measure – the removing unfair ‘hello money’ to retailers demanded of producers , which has held back market penetration at home and abroad- is very welcome .

John Whelan concluded by saying;
‘’The IEA is committed to working with the new Government to support an export led economic recovery, which will generate jobs and prosperity. We will also work with Government to ensure the damage to Ireland’s international reputation is rapidly repaired, and once again restored to its prior high standing. Decisive action by the new Government over the three months will be crucial.’’

-ENDS -


For further information, please contact:

John Whelan

Mobile: 087 927 1243