75% expect a tough 2008

LEADING players in the Irish economy expect 2008 to be a tough year for Irish business, according to a new poll.

Three-quarters of the 364 accountants surveyed expect some deterioration in the business climate, with one in eight fearing a significant downturn next year.

An increasing number expect Ireland will be a more difficult place to do business in the future.

The survey was taken by members of the Institute of Certified Public Accountants and the results are contained in the latest CPA/Amarach Business Barometer survey.

On the plus side, more than a third forecast higher employment figures in their respective firms while 50% think job numbers will hold at existing levels.

Staff retention, availability and pay levels were pressing issues for 38% of respondents. Government regulation, cost control, interest rates, inflation and taxation levels are also matters of concern.

A mere 8% considered exchange rates a serious concern, despite significant euro gains against the dollar and the more recent rise against sterling.

Half of respondents criticised the continuing lack of broadband services.

About 59% believe IT expenditure will increase in 2008, compared with this year.

A majority of respondents — 59% — approve plans by the Government to abolish the compulsory retirement age of 66, while three-quarters of respondents believe the Government should introduce compulsory pensions.

The accountancy group’s president, Brendan Allen, said: “While we welcome the finding that most employers will either retain or increase job levels, there are other findings that are of deep concern and should be noted by Government and the social partners.

“The fact that almost half of the respondents expect a deterioration in the business climate is worrying, as is the finding that almost a third of respondents believe that Ireland will be a difficult location in which to do business in 2008.”