Irish bosses still expect profits to grow

CHIEF executives are less confident about the economy than last year but most still expect profit and revenues to grow, according to research on their attitudes.

Company bosses are also unhappy with labour costs and the general cost of doing business in Ireland, with transport infrastructure causing particular dissatisfaction.

The latest PricewaterhouseCoopers’ CEO pulse survey, which analyses the views of 170 business leaders found that less than a fifth rated the outlook for the economy to be favourable, compared to around three quarters last year.

Three out of five bosses expect profits to grow this year, while 88% said they were satisfied with Ireland’s corporate tax regime.

Senior partner with PwC, Ronan Murphy said: “While the survey reveals a less robust outlook for Ireland’s economy than previous years, it also highlights chief executives’ continuing confidence in our business growth fundamentals, our corporate tax regime and our ability to continue to attract foreign direct investment.

“This solid foundation, combined with a renewed focus by CEOs on competitiveness and cost control, will ensure that Ireland remains an attractive location in which to invest and to conduct business.”

Just six per cent of bosses believe that the business community is sufficiently well informed about the proposed Common Consolidated Corporate Tax Base (CCCTB).

Senior tax partner, PwC, Colm Kelly said: “This is a serious concern, given that CCCTB proposals have the potential to have a very serious negative impact on the tax strategies of businesses with operations in Ireland and elsewhere in the EU.

“Business needs to understand how the CCCTB proposals might impact on their position, and to participate in the debate as to the merits or otherwise of the proposals on that basis.”

When looking at growth opportunities in new markets, CEOs favoured markets closer to home such as Britain (22%) and the EU (18%), with Poland being a strong contender.

Partner, advisory, performance improvement, Ciaran Kelly said: “Given that we are enduring more challenging economic conditions, it is now prudent for CEOs to rigorously review their cost base.

“Careful examination of cost drivers and cost reduction strategies is vital, ” he pointed out.