McCreevy calls on firms not to increase prices

The Minister for Finance has called on businesses not to exploit the changeover to the euro with price increases.

The Minister for Finance has called on businesses not to exploit the changeover to the euro with price increases.

Speaking to the Chambers of Commerce of Ireland, Mr McCreevy stressed the need for firms to avoid price increases as a result of the changeover - or to increase margins.

"We must ensure when it unwinds, we have a competitive cost structure in place."

According to the Minister, inflation is easing this year, but it is still well above our EU partners.

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He added that tax changes had reduced prices in other years, but that increased profit margins and wages were factors in higher inflation. "The business sector has a key role in ensuring the continued easing of inflation."

The Dublin Chamber of Commerce has called on the Minister to reduce the rate of employers' PRSI from 12 per cent to 9 per cent to compensate for the elimination of the ceiling in the last Budget. This is in line with calls from most other business organisations and looks as if it may be heeded to some degree, with perhaps a two percentage point reduction.

The chamber, which met the Minister earlier this week, is also calling for an employer-led affordable housing scheme for employees and incentives to invest in rental units.

Other measures to solve the accommodation crisis should include a restoration of the tax deduction for interest paid by investors providing accommodation.

The submission also warns that the lack of a transport infrastructure is having serious knock-on effects and now poses a credibility issue for Dublin as a business investment location.

"The plans for transport infrastructure must be implemented as a matter of urgency," it states.

Priority projects should include a fast rail link to Dublin Airport and DART and suburban rail enhancements, with a central rail hub.