Groups representing business this evening expressed their disappointment at the Budget for 2003 saying it will increase the cost of doing business.
The Dublin Chamber of Commerce was "very disappointed" at the Government's decision to implement the Benchmarking Report. without any requirement for productivity increases. The VAT rate rise to 13.5 per cent was described as "savage".
Ms Gina Quin, Chamber ceo said: While we welcome the moves to cap the number of public servants employed and the plan to reduce numbers over the next three years, the total pay envelope should be set at the at the 2001 level, with increases not greater than 5 per cent in any one year".
"This budget is hugely disappointing for business and will add further to the difficulty Irish business has in maintaining competitiveness on a global basis," she added.
The Chamber dismissed the €209 million increase in spending on roads projects as " a mere fraction of what is needed. The Minister could safely have borrowed at least another billion euros for capital projects and remained prudently within borrowing limits," Ms Quin said.
The Chambers of Commerce of Ireland (CCI) was also critical of the Minister for Finance Mr McCreevy's sixth Budget, saying the changes would increase the cost of doing business.
Changes in the tax code, such as increase in the lower rate of VAT, will increase business costs and feeding into higher wage demands, said John Dunne CCI chief executive.
He said the trend of increasing current expenditure over capital spending was very worrying. "We are concerned that of the €1.3 billion in spending announced by the Minister, only €200 million was towards productive infrastructure."
Mr Dunne added that the CCI remained sceptical that that the Minister would achieve his own inflation target of 4.8 per cent.
- The Irish Software Association (ISA) welcomed the continuing commitment to the National Development Plan and the attempt to control public sector pay.
Ms Kathryn Raleigh, director of the ISA said the Minister had recognised the current delicate state of the software sector in formulating his Budget.
