Chambers welcome Budget commitment to capital spending

Chambers Ireland have said that Brian Cowen's Budget announced this afternoon was "a mildly expansionary budget underpinned by a sustainable and appropriate level of borrowing".

Chambers Ireland Chief Executive John Dunne said: "We particularly welcome the commitment to capital expenditure which is a key priority for Chambers and for Ireland."

"Chambers greatest concern is with respect to containing current expenditure to targeted levels. There is a real risk that public sector pay will crowd out non-pay expenditure.

"An overall cash limit should have been established particularly in the context of the unquantified cost of the new benchmarking agreement."

"The reform of the stamp duty regime was reasonable and timely. However we fear that an opportunity has been missed to locate this in the context of wider reform of property taxation."

"We welcome the rebalancing of charges on credit cards and cheques as an effort to reduce transaction costs. This new policy direction has been consistently called for by Chambers over the past number of years and will release significant efficiencies in the wider Irish economy."

"Finally, the Tánaiste announced a significant increase in motor tax which goes to the local government fund, while also announcing an unspecified raise in expenditure on local roads. No commitment has been made to local authorities to increase their funding despite the ever increasing demands being placed upon them," Dunne concluded.