Chamber: Most Cork businesses feel confident with no staff cuts envisaged

JUST over two-thirds of Cork businesses are confident about the future with three-quarters saying they have no intention of cutting staff numbers over the next 12 months.

Cork Chamber president Ger O’Mahoney said while this is a welcome development, many people will be eager to see this renewed confidence converted into job creation.

“At the very least, current employment will have to be maintained in order to provide a sound foundation for future growth,” he said.

The latest Cork Chamber economic trends survey of 130 companies said more than half of respondents feel their business is not being curtailed by credit restrictions when compared with 12 months ago, where 70% had reported serious credit restrictions.

The main difficulties being faced are with bank overdrafts and the non-processing of loans.

Of those currently seeking bank finance, two-thirds are seeking it for working capital.

“This can be attributed to one of the most concerning trends emerging from the chamber’s economic trends surveys, which is that delays in receiving payment for goods and services are presenting significant challenges to businesses in the Cork region,” said Mr O’Mahoney.

Mr O’Mahoney said with regards to the banking crisis, there has been a significant change in respondents’ views on the ability of NAMA to free up access to bank credit.

Two thirds believe NAMA will not get credit flowing to business. This is an increase of 24% on the last survey, indicating a sharp change in the business community’s perception of the NAMA process, he said.

The chamber is calling for the analysis and reporting outcomes from the recently established credit review office to be published in the interests of transparency.

A third of respondents said public sector reform should be the main priority of Government.

“Ireland is too small a country to be engaged in a divisive and damaging row between the public and private sectors,” said Mr O’Mahoney.