Exporters call for action in pre-Budget submission

The Irish Exporters Association (IEA) have warned in their pre-Budget 2005 submission against the loss of competitive advantage in export markets.

At the launch of the IEA Pre-Budget Submission Michael Counahan, President of the Association said: “Labour costs are now, by and large, non competitive for export companies. Irish wages have been rising faster than in other EU countries for a number of years (1998 – 2003 pre tax compensation to employees in Ireland grew by 37% whereas by only 8.7% in Germany).

"Minister Cowen must improve the cost base for exporters in this Budget to prevent total erosion of the trading margin and withdrawal from certain markets”.

He added: “The Minister has the best Revenue balance any prior finance Minister has ever had on taking up office. He must put it to good use to secure the future of the export led economy”.

Chief Executive of the Irish Exporters Association John Whelan said:

“Urgent practical measures need to be taken by Minister Cowen in his December Budget, such as the reduction of Exporters PRSI by 2% and a widening of the income tax bands to reverse the rise in the number of persons paying the top 42% rate."

The IEA also said excise duty on diesel fuel at the current level of crude oil is hitting transport costs to market and called for an immediate elimination of excise duty on diesel fuel until crude prices return to the norm of €30 per barrel.