National Recovery Plan
Last Updated: 24 Nov 2010
Wednesday, 24th November 2010
National Recovery Plan: Implementation Key
Corporation Tax Remains Unchanged
Chambers Ireland has today (24/11/10) said that while there are many constructive measures outlined in the National Recovery Plan, the Government has shied away from cutting significant costs out of the public sector pay and pensions bill.
Seán Murphy, Chambers Ireland Deputy Chief Executive said, “Ireland needs a credible plan to meet its financial commitments and to get to a balanced budget in a realistic time period. The publication of the National Recovery Plan 2011-2014 is the next step in achieving this. However, in the absence of additional savings arising from the Croke Park Agreement, the Government will have to return to cuts in this spending line item.”
Labour Costs
“The reduction of the national minimum wage to €7.65 is an important move that is welcomed. It will support the economy’s ongoing reduction in the unit cost of labour and underpin cost-competitiveness. We also note the Government’s commitment to review the Registered Employment Agreements and Employment Regulation Orders within three months. This is important and the vast majority of them need to be abolished.”
Cost of Doing Business
“All of the recommendations of the Local Government Efficiency Review Group (LGERF) must be implemented without delay. The Plan suggests that rate reductions “where possible” will be introduced, this is not good enough. Businesses need rate reductions now and LGERF should be implemented in full. Not implementing report recommendations wastes time and money,” he said.
Revenue Raised Locally Must Stay Locally
“All revenue raised by the introduction of the Site Value Tax in 2012 must be re-invested into local services. They should follow the principle already established with the Non-Principal Private Residence Levy.”
VAT
“While it is disappointing that the rate of VAT will increase by 2% by 2014, it must be borne in mind that the British rate of tax is also increasing from January 2011, which should reduce the pull-factors for Irish consumers going north of the border.”
“Finally, we welcome the fact that Corporation Tax will remain unchanged at 12.5%,” Murphy concluded.
