Ibec chief warns Government against pre-election budget of 'handouts' 

Danny McCoy said Budget 2025 should be a long-term plan rather than a package of measures such as utility bill subsidies

Ibec CEO Danny McCoy: 'If we want to guarantee high living standards into the future, we must use this pre-election budget to look past short-term gains and clearly define where we need the economy to be in the coming years.'

Danny McCoy, the chief executive of business group Ibec, has warned the Government about any pre-election budget that would extend “handouts” to households such as continuing to subside utility bills.

The Government should instead think long-term and invest in businesses as global political tensions and trade wars mean that Ireland faces more competition to attract foreign direct investment, according to the Ibec chief.

“This will be achieved through a budget that addresses strategic issues, rather than distributing handouts that end up spreading the pot too thinly,” said Mr McCoy, reiterating Ibec’s call for the Government to reallocate resources to help firms to train employees.

“We must underpin the cost competitiveness of business; substantially increase investment in upskilling and following through on its commitment to unlock the National Training Fund; address our energy competitiveness challenges; and adopt a more strategic playbook to ensure that Ireland can continue to compete with jurisdictions offering far greater financial incentives for mobile investment,” Mr McCoy said.

“If we want to guarantee high living standards into the future, we must use this pre-election budget to look past short-term gains and clearly define where we need the economy to be in the coming years,” he said. 

The head of the business group is echoing calls made on all governments by the OECD and the IMF to wind down and withdraw a wide range of measures primed two years ago to help households cope with the surge in utility bills following the invasion of Ukraine. The supports are no longer needed after the price of gas and crude oil have eased from their recent high levels, they say.

Separately, the National Women’s Council of Ireland (NWCI) has said a pre-election budget will need to help to create a system of public childcare “as a crucial component in achieving gender equality”.

“To tackle the inequalities in our society, Government must be ambitious in its plans for Budget 2025, placing emphasis on large-scale investment and structural reform of public services, and not on tax cuts and minor tweaks,” said NWCI head of policy and development Kate Mitchell.