SFA: Low taxes, rates and inflation needed to create jobs

The annual Small Firms Association (SFA) National Employment Survey shows that 50,243 jobs were created in the small business sector in 2006.

Although the figure represents an annual increase of 6.1%, it is 18% down on the 61,003 new jobs created in 2005.

The SFA said that a low taxation, low interest, low inflation environment is the key to economic success

The Director of the Small Firms Association, Patricia Callan said: "The survey results confirm that the prospects for employment are strong and that the small business sector continues to be the fulcrum of employment creation.

"78% of companies indicated that they are more likely to expand their business in 2006 if trading conditions are right, up from 64% in 2005, yet fewer jobs will be created in 2006 than last year, when 61,003 new jobs were created.

"These figures clearly demonstrate the move towards the knowledge-based economy by small Irish companies, as opposed to labour-intensive, employment driven growth.

"This sends a clear signal to Government, that we need to focus on the upskilling of our workforce to ensure that skills gaps do not curtail potential economic growth."