New government 'must take heed of small firms'

All political parties must ensure that small business remains at the heart of future Government policy.

Speaking at the launch Small Firms Association (SFA) Election 2007 Manifesto, chairman Pat Crotty said that this theory would be key for Irish small businesses.

“The reality is that costs in Ireland are rising more rapidly than in competitor countries.

“Although labour costs remain one of the most significant problems facing small business, non-pay costs are exerting huge pressures on the ability of small businesses to invest, develop, expand and create new jobs,” he said.

The manifesto looked at a number of key business areas including energy and inflation.

Mr Crotty called on the new Government to address the high inflation rate which is currently 5.1%.

Excessively high inflation is damaging to individuals, to businesses and to the economy generally and the new Government will need to take immediate action to ensure that the main domestic drivers of the inflation rate, which are mainly the result of Government-controlled costs, are brought under control.”

On local authority charges, he said that increasing charges were a significant issue for small firms.

“Increased charges such as commercial rates, service charges, planning and development fees are impacting negatively on competitiveness and stifling our growth.

“The SFA believes that local authority reform must be delivered in advance of any further increases in local authority funding from the business community.

“A new approach to local government financing is now required.”

In conclusion, be said that all political parties must realise that while the economy continued to perform well, this could not be taken for granted and it would be naive to underestimate the potential impact of the business problems faced by small firms.

“The challenge for the future Government is to maintain Ireland’s economic prosperity and to ensure that Irish small firms remain competitive under increasing global pressures.”