CEO update - June 2019
Many of you will have followed media reports this week on the Government’s summer economic statement and the National Economic Dialogue (NED). These are important annual milestones in the decision-making process before the Budget. Ibec will launch its priorities for Budget 2020 on 10 July so it is important for business to put down a marker and be the voice at NED.
For business, Ibec delivered a succinct message: The ratio between public and private investment has become excessively unbalanced. Business is likely to invest close to €100 billion in 2020 and whilst public investment is rising substantially, it is from a low base and will reach about €8 billion. The gap is simply too large and the need for public investment too great.
Exceptionally high levels of household income provide Government with the opportunity to tackle issues around quality of life, environmental concerns and the changing nature of work. I have spoken before about the kinds of innovative schemes that could be used to harness this wealth and redirect into building a world class public infrastructure. This is key to long-term economic sustainability. No doubt there are testing times ahead, but with the population rising sharply we must take action on public infrastructure or a once in a generation opportunity will be missed.
Separately, we continue to focus on the cost competitiveness concerns for business. Ibec has this week called for major reform of commercial rates and is actively shaping legislation currently going through the Oireachtas. On the ongoing challenge of the high cost of insurance, we have met with the Minister for Justice to ensure the urgent introduction of the Judicial Council Bill, which we believe will help reset the level of personal injury awards.
Thank you for your interest and support, and please get in touch with any queries.
All the best,