Mr. Ian Talbot:

I will share time with Thomas Mc Hugh from Cork Chamber of Commerce. We thought it would be good to have some regional views as well.

Chambers Ireland is Ireland's largest business network, with 45 chambers of commerce across the country representing over 10,000 businesses ranging from small and medium enterprises, SMEs, to large corporations. We welcome the opportunity to work with the committee. As a general point, our network has called this year for priority to be given to infrastructure build over other potential budgetary measures such as reducing marginal rates of tax.

On the specific topics we raised in our submission, labour costs account for one of the largest outlays for businesses in the country and are therefore of huge interest and concern. Of most concern to businesses are the high cost of living and the rising cost and lack of supply of housing, both of which potentially will contribute significantly to demands for increased pay. We also refer to the minimum wage and the process adopted for increasing it this year. In future we would like to see the Low Pay Commission report being published and discussed in advance of any announcement by the Government on changes in rates. In addition, we continue to believe that this process should take place as part of the annual budget cycle so all impacts to incomes through tax, welfare, social insurance, minimum wage adjustments and so forth are dealt with in conjunction with each other, not separately.

Regarding property, while significant developments of commercial property are now under way and coming available there remains uncertainty about whether the amount under construction will meet demand. In the meantime, rent levels are escalating significantly and are a threat to competitiveness. However, investment in housing is critical. The national housing crisis is also a business-critical issue. Business is anxious that long-term solutions are adopted and applied, aside from addressing the short-term issues. We welcome initiatives such as home building finance Ireland, HBFI, and the introduction of a site value tax from 2019.

Our network also has concerns about the stagnation surrounding local property tax, LPT, while noting the Government’s plan for a comprehensive review of the tax. Failure to reset values and further exemptions from LPT carry the risk that businesses will be expected to make up the shortfall arising in funding through commercial rates. Concerns about significantly increasing values leading to a surge in the individual rate of tax can be addressed by adapting bands and rates appropriately.

Infrastructure development generally is a priority, none more so than in transport. We welcome the work being put into the national planning framework to create a template for strategic investment in the future.

Access to finance appears to be less significant as an issue now than during the recession. The main challenge facing businesses is the absolute cost of credit in Ireland and the need for alternative sources of finance, such as equity investment. Regulation is also a particular concern. Government Departments should undertake regular regulatory impact assessments. We are also concerned about the general data protection regulations, GDPR, and Brexit.

As regards insurance costs, we welcome the work of the cost of insurance working group and emphasise the importance of implementing its recommendations. In particular, claims costs and types appear to be a significant issue. We welcome the enactment of the Mediation Act as a means to assist in more cost and time effective resolution of disputes.

I will hand over to my colleague, Thomas Mc Hugh.