At the National Economic Dialogue, which took place in Dublin Castle yesterday (Monday, 27 June), Ibec said that even though the UK’s vote to leave the EU is a blow to the Irish business community, nothing has changed fundamentally in the short term.
It went to say that over the coming months, there shouldn't be any change in the current relationship between the UK and Ireland.
Ibec CEO Danny McCoy commented, "In the build up to the referendum, we highlighted the compelling reasons for Britain to remain in the EU but now we must deal with the reality of this democratic decision by our most important trading partner."
He explained that when the British EU exit negotiations commence, it is essential that the interests of Ireland and its business community are protected, and that the importance of the country’s trading relationship with the UK is reflected at the negotiating table.
"While this is undoubtedly a negative outcome for Ireland, it is also important to note that we are in a strong position to benefit from ongoing new investment opportunities," McCoy noted.
"However, the government must ramp up investment expenditure to ensure that we are equipped with the necessary infrastructure to capitalise on this opportunity."
Ibec now recommends that the Government be vigilant on cost competitiveness, and make sure that enterprises do not face any regulatory, labour cost or tax increases during this period of uncertainty.
It also says that since the resources for Budget 2017 may be less than previously estimated, the government must prioritise available budgetary resources for investment spending, particularly in infrastructure, innovation and labour market measure.
It wants the state to accelerate both non-exchequer fiscal measures to the support the economy, and the flow of financing and investment resources available through the Ireland Strategic Investment Fund (ISIF) for enterprise and infrastructure projects
Finally, Ibec is calling on the Irish Government to push harder in negotiating flexibility in EU fiscal rules. It says that the Brexit has led to an increased urgency for Government to negotiate flexibility in the application of EU fiscal rules, "which currently place inappropriate and unnecessary restrictions on investment".
© 2016 - Checkout Magazine by Jenny Whelan
