“These incentives are now there to get buyers back into the market over the next 12 months”.
The reduction in stamp duty from 6 to 2% for transactions on commercial activity is seen as a very positive move by Mr Crosse, who noted that: “Releasing finance to potential buyers is key, and there will come the point when buyers will take that step and reenter the market”.
Kieran MacSweeney, Limerick Chamber President is disappointed at the lack of a financial support structure for local authorities to pass on rates reductions, especially for Limerick city, but he welcomes the pro- business measures taken to allow greater access to funding for SMEs.
Increasing spending in the economy is something that Jim O’Donovan of O’Donovan Caulfield and Lavin, regards as central to the economic survival of local businesses.
“The problem in Limerick is the lack of consumer spending. A little known statistic is that Ireland has the largest saving ratio in Europe at 14% of gross disposable income, which in monetary terms. equates to an annual savings take of over €12billion euro”.
“The minister, however, in increasing DIRT to 30%, and some personal savings could result in withdrawals and back into spending”.
The directive that the two pillar banks are to release a combination of 7.5bilion euro in lending over the next two years is seen as a massive pro business shift, as is the waiver of corporation tax to new business in their first three years, which Mr O’Donnovan sees as vital to getting the economy rolling again.
There is also relief that corporation tax remains untouched, and Minister Noonan has vowed to encourage the major multinationals to remain in this country and to also attract further foreign direct investment and commitment from the global business players by keeping the corporation tax at 12%.
