CEO Update: Ibec launches Budget 2024 campaign
Dear Member,
Today we launched the Ibec Budget 2024 campaign.
Our main message is that Ireland needs to create greater economic capacity through both infrastructural and social investment.
Ibec argues that delaying investment in the short term to mitigate the risk of overheating will hinder future economic expansion and negatively impact Ireland's long-term competitiveness.
A lack of investment to date, has led to systemic congestion in both access to physical assets like housing and infrastructure and to the ability of households to access services which should be afforded in a wealthy society.
The recommendations in the Ibec Budget 2024 Submission cover:
Infrastructural Investment
To ensure continuous investment in infrastructure regardless of economic conditions, Ibec proposes the establishment of a National Infrastructure Fund. This fund, supported by a substantial portion of the budget surpluses, aims to address Ireland's significant social, economic, and environmental infrastructure needs over the next decade. Our proposed target is to provide an additional €30 billion for infrastructure spending by 2030.
Innovation and Productivity
Ireland cannot afford to be complacent when it comes to innovation, productivity and skills. In a highly competitive global environment, it is crucial to foster, enhance, and promote high value investment. This requires a focus on future-proofing the talent pipeline, particularly in areas of digital, climate action proficiency, and Industry 5.0. As part of this drive, Budget 2024 should unlock the €1.5bn surplus of the National Training Fund to help deliver the key skills for the 21st century.
Cost Competitiveness
Budget 2024 must recognise the implications of rising employment and operating costs, as well as general inflation. Implementing measures such as providing support to counter the impact of increasing regulated employment costs, including the living wage, ensuring tax rates and bands are indexed, and preserving the 9% VAT rate for the experience economy are among Ibec’s recommendations to address these challenges.
Social Investment
Ibec is calling for a €125 million budget allocation to enhance state capacity and modernise systems for improved infrastructure delivery. Additionally, Ibec recommends allocating €700 million to enhance housing delivery and €200 million to expand childcare accessibility, including increased subsidies, support for out-of-school hours care, and assistance for carers, workers with disabilities, and the introduction of an Access Employment Programme.
The Budget 2024 campaign is being amplified across various communication channels. Over the last number of weeks, we have lobbied important political and policy stakeholders on these key issues. Yesterday, we hosted leading members of Irish and international media at Ibec’s Dublin Office for a special press conference. This morning we shared our submission with Government and politicians and our campaign went live on our website and across social media.
We would especially appreciate your support on social media by sharing content from Ibec’s LinkedIn and Twitter accounts and using the hashtags #Ibec and #Budget2024
If you have any questions relating to the campaign, please do get in touch.
Regards,
Danny McCoy
CEO
Ibec
