THE NEW measures unveiled by the North’s Assembly to counteract the downturn in the economy will “help real people in real businesses”.
That is according to the organisation which represents hundreds of small firms in Northern Ireland and one of the sectors struggling most as a result of the credit crunch.
The Federation of Small Businesses said it cautiously welcomed the £70 million initiative from the Northern Ireland Executive.
Wilfred Mitchell, its policy head, said initiatives such as freezing business rates and introducing a targeted rates relief scheme were positive. But further clarification was needed on the full implications of the package.
“Small businesses currently represent 98 per cent of the business environment and employ just over half a million people across Northern Ireland,” he said. “Rates relief will put money back into the hands of small businesses which are best placed to know how to spend their money and this is the best way to help small businesses survive the current challenging environment.”
Business advisers PricewaterhouseCoopers (PwC) believes the North’s Minister for Finance has delivered a confidence package that will deliver Christmas cheer, particularly for construction firms.
PwC’s chief economist Philip McDonagh said the construction industry would welcome a further £400 million of public sector contracts before the end of March and particularly the Minister’s commitment to procure over £3 billion of new capital expenditure in the next two years.
“If these contracts are procured quickly they may go some way to alleviate the potentially devastating job losses predicted in the recent Construction Employers’ Federation survey,” Mr McDonagh said.
The North’s Independent Retail Trade Association (NIRTA)believes the Executive’s hardship package is good for local businesses and shows politicians can make a “real difference” when it comes to helping the local economy.
Glyn Roberts, chief executive of the association, said: “This shows that devolution can make a difference. NIRTA has been lobbying consistently on the need for the establishment of a small business rates relief scheme for the past five years and we are delighted that the Minister has listened to us. The freezing in cash terms of non-domestic rates will help those small retailers who are struggling with the current economic downturn.”
