Business leaders welcome early Budget

Business groups have today welcomed the Government’s decision to move Budget 2009 ahead almost two months to October 14.

“This clearly indicates that government is conscious of the difficulties facing the economy,” said IBEC director general Turlough O'Sullivan.

“Essentially the Irish economy is in a much better place than it was in the mid to late eighties when we were faced with a crisis of major proportions.

“However, the difficulties facing our small open economy are extremely serious nonetheless. We have limited control over our affairs given our scale and openness. However, we need to be seen to be in command of those factors within our control. Fiscal policy is one of the areas over which we do have influence. It will send out a strong message to the international investment community that Ireland is a mature economy that is capable of making hard decisions when necessary.

“None of us want to return to the bad days of the 70s and 80s when our main export was our young people. The Government needs to follow up this decisive action with direction to the social partners to revive the national partnership negotiations and to put in place a moderate agreement that underpins competitiveness and job security.

IBEC said it looks forward to meeting the Taoiseach on Friday to engage further.

The Irish Small & Medium Enterprises Association (ISME) also welcomed the decision.

“The Association has been particularly critical of the lack of action from Government in addressing the current difficult economic circumstances,” the organisation said in a statement.

“Today’s decision indicates that at last the Government have seen the light and are acknowledging that clarity and confidence is required to regenerate business confidence and revitalise economic growth.

“It is imperative that the measures introduced to underline this confidence include maintenance of the National Development Plan, tackling the cost environment particularly business costs, addressing excessive public expenditure including a pay freeze and incentivising business to develop and grow.”