Lifeline for small firms ‘is urgent’

INDUSTRY chiefs have again called on the Government to rescue distressed Irish-owned companies.

In a hard-hitting statement, chief executive Mark Fielding said the “multinational first” syndrome was disguising the “plight of the SME sector.”

He stressed the need for the Government to address the need for greater R&D training.

Mr Fielding returned to the old themes of soaring insurance costs, up 290% over the last three years, rising energy prices, up 23% in two years and labour costs that are rising by 7% per annum or at twice the EU average.

Mr Fielding said the Government must adopt a “think small first policy” when tackling the national competitiveness question in the months ahead.

With the inflow of foreign investment under threat, it is time for the Government to switch its policy initiatives if the economy is to thrive.

In Mr Fielding’s view, the pro-multinational stance of the state risks doing long-term serious damage to growth for many years to come. “The difficulty with current policy is that the ‘multinational first’ approach is still very much to the fore contrary to their commitments under the Programme for Government.” That was a grave error because this country no longer holds the attractions it did for foreign investors.

To address the current crisis, ISME has called on the Government to:

* Set up a competitiveness fund to help industry achieve measurable productivity improvements.

* Place fresh emphasis on innovation and R&D at the small firm level.

* Create a strategic alliance with the EU accession countries, India and China through bilateral economic agreements.

* Specifically target development in key sectors through well-focused training initiatives.

* Give greater representation to owner managers of small firms on state boards including FÁS, Enterprise Ireland, Science Foundation Ireland and the National Competitiveness Council.