PUBLISHED this week, IBEC has launched its pre-budget submission 2012 entitled ‘Reform and renewal: a growth strategy for Ireland.’ The submission was launched this week at a press conference with a number of high level meetings with relevant cabinet members and Government officials delivering their Budget message.
The submission, which is very firmly based on ideas that the IBEC members have contributed, sets out three core messages:
· That the fiscal adjustment in Budget 2012 should not exceed €3.6bn, which is enough to meet our international commitments
· That balanced growth must be delivered by ensuring the competitive environment for both mobile investment and indigenous enterprise is enhanced
· That the domestic economy needs specific interventions to encourage consumer spending and create jobs and activity
A statement said that they “propose a number of new and fresh ideas in relation to domestic demand which we believe could make a substantial difference. These include measures to normalise the housing market; to deliver activity in the home improvements field; to encourage appropriate draw down of AVCs; to provide a much stronger sense of consumer confidence through proactive communications; and to introduce a welfare retail and services card that would deliver more spend into the local economy in the short-term.
IBEC say that “Despite renewed turmoil in the international debt and equity markets in recent months, the Irish economy remains on track to grow this year for the first time since 2007. The recovery is fragile, however, and the weakness of the domestic economy remains a concern. The unemployment crisis is stark and much still needs to be done to close the budget deficit. In order to address these major challenges we need a radically new approach to economic policy. In addition to a plan for austerity, we need a vision and a strategy to grow the economy.
“Budget 2012 must make difficult choices to close the budget deficit but must also put in place the building blocks needed to grow enterprise and employment. In order to make this happen innovative economic policies are required and Budget 2012 must provide the platform for these. This Government has not yet outlined its own strategy for economic growth and must now urgently do so.
“IBEC has identified the following six priority areas as the essential ingredients of a comprehensive strategy for recovery and growth:
1. Deliver more radical economic reform.
2. Introduce measures to support the domestic economy.
3. Stick to a detailed fiscal plan.
4. Improve Ireland’s attractiveness for mobile investment.
5. Enhance the environment for indigenous enterprise.
6. Deliver a stronger incentive to work”.
