LIMERICK’S business and tourism sectors have welcomed Budget 2016 as a step in the right direction.
Limerick Chamber CEO James Ring says the organisation is “delighted” that many of the measures it recommended to government were adopted in this year’s Budget.
Dr Ring welcomed “the pro-entrepreneurial move to reduce capital gains tax from 33 per cent to 20 per cent” as well as the “earned income credit” for the self-employed.
In a local context, Dr Ring pointed out: “The increase in the Film Relief Tax cap, the extension of the agri-tax reliefs, and introduction of tax incentives for the construction of aviation services facilitates will support existing and new sectoral strengths of our region”.
“We also welcome the announcement that IDA are to deliver a regional property programme to accompany the Regional Action Plan for jobs and Limerick Chamber look forward to receiving more details of how this will be delivered over the coming weeks.”
He also revealed that Limerick Chamber will be stepping up their campaign to ensure that Limerick is assigned a significant portion of the 600 new Garda posts.
However, the Chamber is concerned about the increase in labour costs that many businesses will face following the 50c increase in the hourly minimum wage.
“Limerick Chamber will closely monitor the impact that this measure will have on our regional economy and numbers employed,” added Dr Ring.
Limerick hoteliers have welcomed the retention of the nine per cent tourism VAT rate in Budget 2016.
Elaina Fitzgerald-Kane, chair of the Shannon Branch of the Irish Hotels Federation (IHF) said the measure continues to act as a vital support for employment growth, building on the 33,000 new jobs created by tourism businesses since the measure was introduced in 2011.
“Today’s budget is very positive for local tourism businesses which now support over 7,000 jobs throughout Limerick and contribute some €180 million to the local economy each year.
“The nine per cent VAT rate, in particular, is of enormous importance to the industry, helping to level the playing field for Irish tourism when competing with international destinations. As a result, Irish tourism is now on track to create a further 40,000 jobs nationally over the next five years.”
