'Mixed bag' Budget fails to address cost environment: ISME

The Independent Business Organisation ISME has described Budget 2007 as a "mixed bag, with many positive aspects".

However, ISME said the Budget missed "a significant opportunity to restore Irish competitiveness by failing to adequately address the cost environment in which businesses operate".

The association said the Minister did not address "out-of-control" inflation.

"If anything, today’s Budget could exacerbate the situation and fuel inflation with an 11.5% increase in current government expenditure in 2007. This could result in short-term gain, which may lead to long-term pain," ISME said in a statement.

"The Minister should have addressed the massive public sector pay bill and the shortfalls in local authority budgets, which will force businesses to pay more in commercial rates, water charges and other local charges.

"His failure will have significant consequences in the next number of years, particularly in relation to our competitiveness."