Ibec calls for budget to focus on growth

If the Government increases labour costs in December’s budget, either through a hike in PRSI or a statutory sick pay levy, then it will undermine the economy’s recovery, according to the employers’ group Ibec in its pre-budget submission released today.

Budgetary policies have to focus on pro-growth measures including the early release of pension funds and greater support for the SME sector, Ibec said. Innovation on tax policy for the foreign direct investment sector also has to be a priority.

Overall, the emphasis has to remain on achieving the €3.6bn adjustment through expenditure cuts rather than tax increases.