ISME outlines priorities for political party manifestos ahead of General Election
Dublin, 9th September 2024: As the next General Election approaches, ISME (Irish Small and Medium Enterprises Association) is outlining its key priorities for inclusion in the manifestos of political parties. These priorities highlight the urgent need for policy reforms in areas crucial to Ireland’s SME sector and the wider economy.
The recommendations include a wide range of issues affecting SMEs across the country, such as tax policy changes, tackling the cost of living, infrastructure, legal reforms and upskilling policies.
Neil McDonnell, CEO of ISME, said, “With the General Election on the horizon, it is critical that political parties commit to addressing the key challenges facing employers, particularly those in the SME sector. Representation at the Labour Employer Economic Forum, housing affordability, and broader economic reforms must be central to political manifestos. Over the coming weeks, we will be proactively engaging with political parties and encouraging them to include measures supporting SMEs in their manifestos for the election.”
ISME’s recommendations for political party manifestos include:
- Representation at Labour Employer Economic Forum (LEEF): To address systemic employer issues, SME employers must have formal representation at LEEF.
- Addressing the Housing and Living Crisis: The cost of accommodation and living cannot be resolved solely by raising the National Minimum Wage (NMW). The Government must incentivise private sector investment to increase rental accommodation supply, having a greater impact on affordability.
- Corporation Tax and Indigenous Industrial Policy: Political parties must avoid assuming the stability of corporation tax receipts. Establishing a robust indigenous industrial policy is essential, particularly given the risks of relying on multinational tax contributions.
- Infrastructure and Housing Investment: A significant increase in infrastructure and housing investment will be necessary. This should align with addressing risks in the National Risk Assessment while ensuring balanced budget priorities.
- Cost of Living: As the second most expensive state in the eurozone, Ireland should aim to be the most affordable. ISME advocates revisiting VAT rates to help reduce consumer costs.
- Efficient Public Spending: Increasing funding without reforming state services will not deliver improved outcomes. Efficient and targeted public spending must be a priority for the next Government.
- Taxation: Currently, workers pay the marginal tax rate at 88% of the average industrial wage. ISME calls for equitable taxation without pushing more workers into higher tax brackets.
- Legal System Reform: Ireland’s legal system is slowing infrastructure development, housing, and growth in key sectors. ISME calls for the implementation of IMF-recommended legal reforms to enhance investment.
- Social Insurance Fund: The underfunded Social Insurance Fund, with a €350 billion shortfall, needs reform. ISME recommends a new PRSI rate structure to reduce costs for lower-earning workers while addressing future liabilities.
- Electric Vehicle Sales Decline: Unpredictable incentives for electric vehicles undermine decarbonisation efforts. Clear and consistent policies are needed to support green transitions.
- Upskilling Workers & Business Owners: Ireland’s workforce needs significant upskilling in areas like digitalisation and decarbonisation. The National Training Fund surplus should be used to enhance workforce skills as originally intended.
For more information and to view ISME’s full submission ahead of the General Election, please visit: ISME Submission 2025.
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Issued on behalf of ISME by Heneghan
For Information:
Neil McDonnell / ISME – (087) 299 5658 (available for comment)
Nigel Heneghan – (086) 258 7206 – nigel@heneghan.ie
Rory Sweeney – (086) 897 6442 – rory@heneghan.ie
