Mixed welcome to plan from groups involved in business

BUSINESS REACTION: THE REACTION of business groups to the Government's economic plan was mixed yesterday, with some welcoming it and others saying it does not go far enough.

Small Firms Association director Patricia Callan said the group intended "engaging" with the Government and social partners in developing what needed to be done to restructure the economy and ensure growth in the future.

"It is imperative that we now focus, more clearly than ever before, on how to get more people into work, which means encouraging more start-ups of innovative small firms."

The Irish Venture Capital Association welcomed the proposals to establish funds worth a total of €500 million that would be used to invest in start-up companies focused on innovation and research and development. Director general Regina Breheny said indigenous technology-based firms were "Ireland's future".

The Institute of Certified Public Accountants said the plan was welcome, but warned that it needed to be followed up with specific targets and "time-lined" action plans.

"There are good ideas in this document but economic recession is a gathering pace while the credibility of any plan will quickly wither if not followed through."

Another accountancy body, the Institute of Chartered Accountants in Ireland, said it was disappointed that it included no new tax initiatives.

It said any tax changes suggested in the document were based on the outcome of the work being done by the Government's Commission on Taxation.

"In this respect, the work of the commission should be accelerated with a view to producing early recommendations in areas highlighted in today's plan."

It added that focusing on developing Ireland as a location of choice for hi-tech business was well worthwhile.

The Irish Small and Medium-sized Enterprise (ISME) association said the plan was vague and bereft of ideas.

"The association is particularly concerned that the key issues affecting small and medium-sized enterprises have not been addressed, with no indication of how the Government plans to deal with increasing business costs, record job losses, reduced consumer demand, the sterling crisis, late payments and the lack of credit from the banks, among other issues," ISME's statement noted.