IBEC gives guarded welcome to Budget

The Irish Business and Employers Confederation (IBEC) has broadly welcomed the emergency Budget announced in the Dáil today.

"Business considers that this Budget is a credible response to the current difficulties in the public finances," said director general of IBEC, Turlough O’Sullivan.

"It sends a clear and positive signal that the Irish Government is taking effective remedial action over the next five years.

"IBEC would have preferred a greater emphasis on cutting current expenditure immediately rather than on increasing taxation.

"Unpleasant though it is for all of us, the increases in income levies announced today are the most effective means of raising revenue with the urgency and simplicity required.

"On balance, IBEC supports the establishment of a national asset management agency and believes that this measure will further stabilise the banking sector and will help re-establish lending to businesses and households. It is critical that this is done in such a way that taxpayers’ interests are protected.

"It is regrettable that the supports for enterprise are so modest that they will do little to stabilise employment. This is a matter which must be urgently addressed.

"Whilst each one of us feels pain today, this Budget is a critically important step towards restoring our financial stability and international reputation."