Brexit ‘could derail Irish economy’

Measures need to be taken in order to make small and medium enterprises ’Brexit-proof’ or it “could derail Ireland’s economy”, a body representing Irish and British business has said.

The British Irish Chamber of Commerce said policy measures were needed to “safeguard the competitiveness” of Irish SMEs.

The organisation called for the reinstatement of the reduced lower rate of employer PRSI to 4.25%, and the expansion of the entrepreneur relief on capital gains tax (CGT) to a lifetime limit of €15m. It also called for the introduction of a voucher scheme for all SMEs dealing with customs for the first time as well as for an increase in capital expenditure to 4% of GDP, with a specific call to bring forward the scheduled start date for Metro North and Brexit proof national ports and airports.

A marketing grant for Irish SMEs that are exposed to the UK, akin to Bord Bia’s marketing intensification programme, should also be introduced, it said.

Director-general of the British Irish Chamber of Commerce, John McGrane said: “SMEs are the lifeblood of the Irish economy, accounting for over 90% of enterprises in the country and representing nearly 70% of private sector employment.

“Any significant reduction in the trading environment of the Irish SME sector has the potential to derail Ireland’s economic recovery.

“The constructive measures put forward by the Chamber’s SME Committee will help in alleviating some of the most significant Brexit-related risks to Irish business.”

Chair of the organisation, Aidan Scollard said it was paramount that trading links between the UK and Ireland were not hampered as livelihoods were at stake.

“The UK’s decision to leave the EU will have a significant effect on SMEs in Ireland and there is a pressing need to ensure that strong trading links with the UK are not disrupted.

“The livelihoods of many citizens in both countries depend on it.

“In light of the upcoming budget, it is vital that the Government recognise the importance of the sector and proactively improve the competitive environment which Irish SMEs operate in,” he said.