Mr. Ian Talbot:

I thank the Chair and the committee for inviting us. I am going to share a brief period of time with my colleague, Mr. Paddy Malone as well. We will try to rattle through it as quickly as possible. To set the scene, our budget recommendations over the last three years have focused mainly on the need for investment to make up for the lost decade during our economic recession.

The year 2019 will be important for Ireland as we confront an uncertain world not just limited to Brexit. Our economic competitiveness is increasingly under threat from the high cost of doing business and the general high cost of living across Ireland. Government must focus on addressing the issues contributing to these high costs, from making child care more affordable to increasing the delivery of housing. It must also ensure the secure and affordable provision of energy for all businesses and communities across the country as we face into our obligations for the future in terms of climate change and control. While the economy is performing strongly, the threat to Irish businesses posed by Brexit is severe. Further, Ireland is uniquely exposed to increasing volatility in global trade as other states become increasingly protectionist.

In drafting our submission, we consulted with our chambers, who make up a network of 41 affiliated chambers located in every major town and city and region in the country and represent businesses of all sizes and across all sectors. The message we heard from the network in these consultations was clear: we must focus on the delivery of Project Ireland 2040 and the national development plan if we are to ensure continued growth and we must take steps to boost our competitiveness and resilience, particularly ahead of Brexit.

Turning to infrastructure and a sustainable future through investment in infrastructure, budget 2019 will be the first budget following finalisation of Project Ireland 2040 and it is critical that investments announced in the national development plan begin and that the strategic plans set out in the national planning framework are followed. Investment in infrastructure has been a major concern of business for the last number of years following a decade of under-investment. Given the limited budget package available, the priority must be on capital spending that will address growth-constraining infrastructural deficits and will enable all of our cities to compete for investment and jobs as they drive growth and unlock the potential of their wider regions. Government must ensure that the plans laid out in the national development plan and set in the national planning framework are committed to, met and monitored closely with appropriate key performance indicators, KPIs. We must ensure that Ireland moves closer to the highest levels of public investment in infrastructure in the OECD, the current average at OECD level being 3% to 4% of GDP.

Chambers Ireland has in the past called for the establishment of what has become known as "a rainy day fund". We would like to see the establishment of an equalisation fund to ensure that future shocks to our economy do not lead to a decline in capital investment. We could use this equalisation fund to bridge any gaps in capital investment. Given that we are about to enter a period of economic volatility, we support the commitment of the Minister for Finance, Deputy Donohoe, to the establishment of a rainy day fund. In addition, given the national development plan is underpinned by projections of the economy's potential growth - assumed at a minimum of 2% over the period 2022 to 2027 - we believe that using the fund to support the delivery of the national development plan, should growth fall below the required 2%, would ensure that we do not find ourselves unable to maintain investment in capital infrastructure in times of recession. We also recommend that the Government monitors corporation tax receipts and transfers any revenue generated above profile to the rainy day fund.

I will now hand over to my colleague, Mr. Paddy Malone, from Dundalk Chamber, who will speak in particular about Brexit and tourism.