Cork Chamber survey reveals strong foundations for growth

Cork Chamber has welcomed the increase in business confidence evident in their economic trends survey for the fourth quarter of 2010.

However, the survey shows that Cork’s business community is not convinced that the four-year plan and Budget will be sufficient to secure recovery.

Chamber members’ also believe that some default/restructuring of Ireland’s bank-related debt will be necessary to restore the country’s finances to a sustainable footing.

Cork Chamber Chief Executive Conor Healy said: "The survey captures the difficulties faced by the regional economy in 2010 but it also shows that there are strong foundations for growth in 2011. There has been an increase in business confidence and 75% of respondents now say they are confident about the future of their business, up nearly 5% on the Q.3 figure. Over 80% of responding companies do not anticipate staff reductions in 2011, with 41% of respondents actually expecting to increase employee numbers in the year ahead.

According to Mr Healy, Cork’s business community is not convinced that the four-year recovery plan and the Budget do enough on a number of key issues.

Mr Healy said: "Just 12% of respondents believe the steps taken to date have resolved the banking crisis and paved the way for a return to a normal banking system, with nearly 70% believing they will prove insufficient. 78% believe that some restructuring/default of Ireland’s bank-related debt will be required to ensure the country’s sustainable economic recovery.”

"Access to credit remains an issue. In the survey 44% disagree with the Credit Review Office’s recent statement that the situation regarding bank lending to business was ‘continually improving’. When asked what they would consider the most effective way to ensure access to finance for businesses, 67% said stricter monitoring to ensure banks lend to businesses would be effective or very effective, while 65% said a new enterprise bank would be effective or very effective."