Chamber calls for improved SME access to credit

Make the tax system more business friendly; introduce policies that promote infrastructure investment; improve access to credit for SMEs and implement measures that boost consumer confidence are among a comprehensive set of recommendations contained in Cork Chamber of Commerce’s pre-budget submission.

Tue, 26 Aug, 2014 - 01:00

Speaking on the release of the submission Gillian Keating, Cork Chamber president, said, “Our recent Q2 Economic Trends survey revealed a continued positive outlook amongst Cork businesses, with 88% of those surveyed reporting confidence in the future of their business. In order to harness this fully we need to be creative in how we address the issue of consumer confidence. That is why we have identified a number of taxation, mortgage relief and health insurance policy initiatives that we feel will help put more money in the pockets of consumers to spend in the economy and help economic growth and job creation.”

Cork Chamber has outlined initiatives in five key areas of the economy. Included in its tax proposals it wants the Government to stand steadfast behind the 12.5% corporate tax rate.

Moreover, it wants 80% of the Local Property Tax collected by local authorities to be used to finance lower rates and reduce other business costs for struggling businesses.

Reducing the marginal income tax rate below 50% to make the economy more competitive; retaining the 9% Vat rate for the hospitality sector, and the introduction of a 9% Vat rate for the crafts sector and residential property construction; as well as making changes to Ireland’s holding company tax regime are among other tax policies recommended.

It has identified areas that require investment, including telecoms infrastructure; a Cork area transport system; a Cork science and innovation park; as well as a national diaspora centre based in Cork and a number of key roads.

Cork Chamber has called on the Government to improve the flow of credit to SMEs through a loan guarantee scheme and micro-finance initiatives. The Government needs to lobby the EU to have Cork re-assigned as an assisted area in the EIIS scheme and investors in start-ups should automatically get a tax deduction at 41%.

It also called for the reduction of the universal social charge from 10% to 7% for the self-employed.