Tax windfall must not be 'squandered' — Chambers Ireland

In its pre-budget submission, business group says tax revenues should be set aside for infrastructure and pension costs

Chambers Ireland Chief Executive Ian Talbot said its members were extremely concerned about the infrastructure gap which is lowering the quality of life for people working in Ireland. 

Business groups have warned the Government the current windfall from exchequer returns must not be "squandered" and excess funds need to be locked into a special purpose fund targeted at the country's infrastructure deficits in the coming years.

In its pre- budget submission, Chambers Ireland said for the first time in five years, the Government would be creating its budget without being under the shadow of an immediate impending crisis. 

"Ireland has, since Brexit, been navigating an uncertain world with un-anticipatable crises impacting us in successive years," its submission states.

"At last, Budget 2024, is being drafted during a period of relative calm. Government parties and ministers need to use this opportunity to cement the gains that we have made and prepare for both the uncertain years we have before us and the impact of our population growth on infrastructure and services."

Chambers Ireland, representing the country's 40 chambers of commerce organisations, said its submission was focused on housing and infrastructure including the activation of vacant sites, brownfield redevelopment and modern methods of construction.

"Having successfully weathered so many crises, we are in an era of unprecedented tax revenues which are largely a result of the unique mix of businesses based on this island," the submission states. 

This windfall must not be squandered, and excess funds need to be locked into a special purpose fund that will ensure that the capital we need to make good on our infrastructural deficits is consistently available when needed.

Chambers Ireland Chief Executive Ian Talbot said its members were extremely concerned about the infrastructure gap which is lowering the quality of life for people working in Ireland. 

"The challenges of recruiting and retaining staff is lowering our competitiveness and damaging our reputation internationally," he said.

"Covid, Brexit, and inflation have all delayed the closing of the gap which is the result of the post-crash decade of under-investment. 

The economic problems our members are experiencing today are all problems of capacity — much of our energy, transport, housing, health, and water networks are operating at or beyond their projected utility. 

"The recent Census results underline how important it is that our ambitious plans are delivered in a timely manner, or we will continue to play catch-up."

Taoiseach Leo Varadkar has said Budget 2024 will include a package of measures for businesses that will recognise the additional costs coming down the line, including the expected increase in the minimum wage.

“It is really important, as a country, that we don’t engage in any hubris here. We have seen, in the past, how quickly a small, open economy like Ireland can be affected by making the wrong policy choices and by events that happen internationally. 

“That is why we are taking the decision to set aside about €10bn from the surplus next year to pay down the debt.

“To set that aside for future infrastructure costs. To set it aside for future pension costs and I think that is the right decision.”