Ibec's McCoy urges action on  Omicron contacts to prevent 'widespread economic disruption'

Businesses facing shortages and disruption to supply chains  due to large numbers of close contacts being advised to isolate

Ibec's head office on Baggot St in Dublin. The head of the business group has urged the Government to act swiftly to provide guidelines for workers isolating because of Omicron.

The head of business group Ibec has urged the Government to act swiftly to provide guidelines for workers isolating because of Omicron or face "widespread economic disruption" because so many close contacts of ill people are sheltering for long periods from the disease.                                  

Chief executive Danny McCoy said that Irish businesses face shortages and disruption to supply chains in the coming week from the so-called "pingdemic" of alerts involving large numbers of close contacts being advised to shelter.

"The well-documented delays in access to PCR tests and booster availability for younger age cohorts across the country are further adding to these staffing challenges," he said. 

Business group Retail Excellence also said that a move on close contacts is now needed after "the Government has gone some way towards acknowledging the scale of the crisis by cutting the period of isolation from 10 to seven days for those who themselves have received a positive result and have been boosted or have been infected in the previous three months". 

Meanwhile, the Iseq index of Irish shares ended the last trading day of the year slightly lower, as AIB, Bank of Ireland, and CRH, and Ryanair retreated. 

However, the Iseq ended 2021 with gains of 7.7% during the year. 

The pan-European Stoxx-600 index also fell slightly but has ended 2021 with gains of 22%. 

"As we look ahead into 2022, the questions around inflation, growth and the return of the pandemic remain with us, while the monetary policy outlook is clouded by the potential for more rate hikes throughout the coming months," said Chris Beauchamp at online broker IG. 

"Overall it still seems sensible to expect further gains for stocks, but with perhaps less of the exuberance we saw in 2021," he said.