Business warns politicians against 'unfriendly' election pledges
Business groups have urged the next government — in whatever form it takes — to translate only their “business-friendly” election promises into action.
The groups have warned against throwing money at the housing problem and called on politicians to defuse the so-called pensions time bomb, and to safeguard the National Development Plan, which involves billions in spending on public infrastructure over the next 20 years.
They have also warned against increasing taxes in a bid to increase Vat receipts.
Cork Chamber said it seeks a programme for government to boost competitiveness. It also said it will “engage across all political parties to ensure that the climate, civic, public transport, infrastructure, and housing foundations are in place to realise Cork’s full potential”.
The Construction Industry Federation (CIF) has called for the next government to translate election promises into building homes and infrastructure but said “throwing money at the problem won’t solve it”.
“The last government learned exactly how difficult it is to deliver homes through the current dysfunctional system. This government will face the same challenges and simply throwing money at it will not solve it,” the CIF said.
It wants more investment in the National Development Plan — where there is currently a commitment of €116bn. “The economy, Brexit and the housing crisis necessitate a strong government in situ as quickly as possible,” it said.
Oil exploration companies are still holding out hope that any new government involving Sinn Féin and Fianna Fáil will scrap the oil drilling ban announced late last year by outgoing Taoiseach Leo Varadkar.
David Horgan, director at Petrel Resources, hoped Sinn Féin would “go into pragmatic mode” over oil drilling, but said that any three-party coalition involving the Green Party would likely lead to legislation banning new drilling getting into law.
Business lobby group Isme said that any party refusing to defuse the pensions time bomb must be asked hard questions about whether they favour pension payments and increases in social charges.
Isme also said that the softening in Vat receipts should be a warning to the next finance minister that increasing taxes does not guarantee an increase in yield.
It said replacing lower-income earners with higher earners in the Universal Social Charge was unrealistic.
“High earners already pay a disproportionate share of tax, at marginal rates of 52%. Increasing these marginal rates will alter worker behaviour, especially among professional women, who will simply reduce their working hours,” said Isme head Neil McDonnell.
Ibec last week warned about some election pledges.
