Public Sector promised pay rises while Private Sector is ignored.
No commitment to end tax discrimination against self-employed.
Statement lacked concrete details.
ISME, Tuesday 28th April 2015
The Spring Statement today amounted to little more than a PR exercise and has done nothing to reassure concerned SMEs that Government is listening to their views and is working to improve the business environment, according to ISME, the Irish Small & Medium Enterprise Association. The Associationwarned the Government to stick to the economic strategy that has seen the country start the recovery and to steer away from auction politics by setting out the specific fiscal parameters within which the country must live.
Mark Fielding, ISME CEO, commented, “It is disappointing that, true to form, the Government courted the public sector vote by promising pay rises, while there was no indication of how private sector workers might benefit in the next budget. I would remind the minister that this government overspent by €5.5 billion last year and paid almost €7.5 billion in interest, therefore prudence must be the order of the day.”
“The Spring Statement acknowledges that the income tax rate burden on the self-employed is a disincentive but does not state any intention to rectify this. This is yet another affront to the long-suffering self-employed who are working hard to drive the recovery. We will raise this issue again at the National Economic Dialogue.”
“Minister Howlin’s intention to begin talks with the Unions regarding increasing Public Sector pay is a mistake. The economy might well have emerged from intensive care but it is nowhere near full health and it is certainly not ready for pay rises and the unwinding of FEMPI. Public Service pay is dramatically out of sync with pay rates in the private sector. There is no justification for increasing the salaries of the already over-paid and cosseted Public Sector, other than a political desire to hang on to power.”