The Government has been urged to introduce a series of financial supports in the budget for food and drink firms in a bid to improve productivity and sustainability across the sector in the face of rising costs.
Food Drink Ireland (FDI), the Ibec group that represents food and drink firms, said existing high cost levels and cost inflation from higher wages, energy costs and commodity price rises were impacting “margins, competitiveness, and investment decisions”.
“There should be a focus on support for capital investment, innovation, and skills development to improve cost competitiveness in domestic and export markets,” FDI director Paul Kelly said.
“In the absence of any direct supports from Government, these challenges will threaten the financial viability of many low margin food businesses,” he said. The 2030 sectoral emissions reductions targets would also require significant Government support, Mr Kelly said.
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In a pre-budget submission, the group called for the introduction of a PRSI rebate based on the number of lower earning workers on a company’s payroll and “to ensure the entry point to the top rate of PRSI remains above the national minimum wage”.
The group’s budget wishlist also included the introduction of a research and development (R&D) tax credit for SMEs and a State-supported export credit insurance scheme.
The FDI also called for the growing €1.5 billion National Training Fund (NTF) surplus to be put to use via a national training voucher scheme for employers.
To help firms reduce their carbon footprint, it also called for “a super deduction capital allowance for business investment in environmental and sustainability related capital investments”.
It also wanted state supports for decarbonisation across a range of technologies which are aimed at meeting Ireland’s ambitious climate targets.
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