THE vast majority of Limerick business leaders believe that the Government is not doing enough to support them and have warned against any moves to increase the cost of employment in the upcoming budget. In its pre-budget submission to Government, Limerick Chamber outlined the findings of a recent survey of its members that showed 90 per cent of them were of the opinion that the Government was not giving adequate support to local business.
Chamber Chief Executive Maria Kelly said that with a high unemployment rate, the Government continues to reiterate that job creation is their number one priority. However, to achieve this, it is imperative that appropriate measures are put in place to promote and support competitiveness for existing businesses.
“Yet we have found that over 90 per cent of businesses in Limerick feel the Government is not doing enough to support them”, she said.
The Chamber survey has identified major concern amongst the business community regarding increased in employers PRSI and the transfer of sick pay obligations.
Half of the businesses indicated that an increase in employer’s share of PRSI would prevent job creation; while the transfer of responsibility for sick pay could lead to potential job losses in over 40 per cent of the businesses surveyed.
Ms. Kelly continued: “The results of this survey are overwhelming. Any initiatives that raise the cost of employment will do nothing but increase the burden on business and hamper job creation and retention. It is essential that the Government gives some degree of certainty on PRSI and sick pay now, rather than allow rumours to continue and undermine business confidence over the next couple of months.”
The Chamber conveyed its concerns to Minister for Social Protection Joan Burton during her recent visit to Limerick.
According to Ms Kelly, the Minister understood the city business community’s concerns regarding potential PRSI hikes and cited the commitment not to increase the cost of doing business in the Programme for Government.
In her meeting with the Chamber, Minister Burton also reiterated her pledge for reform of the current system regarding sick pay.
Ms Kelly commented: “The transfer of responsibility for sick pay on to employers can be interpreted as an increased cost to business – an additional cost that our survey shows could lead to higher unemployment.”
