Survey: New government boosts confidence amongst CFOs

A survey of chief financial officers at Irish companies shows more than three quarters (78%) believe the new government will boost international confidence in our economy.

Some 65% of CFOs surveyed told researchers from Deloitte they think fiscal policy will improve under the Fine Gael/Labour coalition.

Respondents also felt that the new government would have a positive impact on political reform (76%) and job creation (76%).

However they are less likely to believe that the change in administration would ease problems being faced by businesses as a result of the banking crisis.

Just 11% believe that the new coalition will effect change to the cost of credit, only 19% expect improvements in the levels of taxation and 32% believe credit availability for small businesses will improve.

The three most pressing measures that CFOs believe the government should concentrate on as a matter of priority are public sector reform, cost cutting and job creation, according to the survey.

“Last quarter we observed a noticeable fall in sentiment among CFOs," said Shane Mohan of Deloitte.

"This seems to have stabilised in the first quarter of 2011 which is another indication that the presence of the new government has inspired some confidence.

"However, it’s clear that the uncertainty that was so pronounced in previous quarters is still being felt and still lingers. Rising interest rates, political uncertainty in North Africa, rising oil prices and the impact of the Japanese earthquake on the global economy are all contributing to this.”