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Sam Boal

Government job targets rely on small business support, warns SFA

The SFA has also warned that firms could go to the wall if there’s a bump in the minimum wage.

GOVERNMENT JOB PROMISES can only be delivered by improving the business environment for smaller enterprises, the Small Firms Association has told Jobs Minister Richard Bruton and junior minister Damien English.

Speaking after the meeting, Small Firms Association director Patricia Callan said that there is a need “to encourage more people to take the risk and become self-employed and set up new businesses”.

She argued that Irish labour costs are now 30.8% more than in the UK and 16% higher than the EU average.

“This is putting us at a distinct competitive disadvantage, and is a particular problem for SMEs in the services sector where the cost of employing an individual accounts for over 80% of location sensitive business costs.”

Minimum wage

Setting out its stall in advance of the October Budget, the SFA said that there was no room for a higher minimum wage, which it argued would force more employers out of business.

“We are opposed to any increase in the statutory minimum wage and mandatory sick pay or pension provision, which would have a devastating impact on the fragile recovery that is taking place in small firm employment.”

The SFA is also calling for a further three-year extension to the lower rate of employer PRSI on wages of €356 or less per week, which ran at 4.25% rather than the usual 8.5% from 2011 to 2013.

“It is now hitting payroll costs and affecting employment decisions and should be reversed in Budget 2015.”

She concluded:

The small business sector has consistently demonstrated that given the right economic conditions, small business owner-managers will, with confidence, continue to invest, create and grow new business.

Read: Call for more scrutiny on bank lending to SMEs>

Read: Government urged to take the lead on ‘bond market for SMEs’>

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10 Comments
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    Mute royston T justice
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    Jul 21st 2014, 6:21 PM

    It’s a shame to read the same old argument “Irish labour costs are higher than that of the UK & EU”..

    Taking Dublin for instance, of course the labour costs are higher, our house prices & the costs of living are far higher than most of Europe & certainly the UK.

    Try looking more at Scandinavia or Northern Europe instead of the UK for a proper comparison. Otherwise statements like that just look like a poor excuse for lowering wages here & I don’t see anyone’s mortgages or rent coming down anytime soon..

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    Mute Neoc Divid
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    Jul 21st 2014, 6:45 PM

    Wages should not be judged by idiots buying overpriced houses that they could never afford …. The market should set the wage …. If you want to work for 5 euro an hour you should be let do it …. Simple if you want to sit on the dole that’s fine but withdraw all after 9 months you would see a lot of folks working for whatever they could get and the tax payer would not be paying for the layabouts

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    Mute The Truth Hurts
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    Jul 21st 2014, 7:09 PM

    I’d love to see you try live from week to week on a 5eur hr wage…

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    Mute Mark Kelly
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    Jul 21st 2014, 10:24 PM

    @Neoc – I completely agree. Truth Hurts – it’s roughly the same as a weeks dole. The dossers are managing fine on that (I’m not talking about everybody on social welfare before anybody starts).

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    Mute john mcgrattan
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    Jul 21st 2014, 6:07 PM

    Somebody should call john perry oh sorry

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    Mute Dermot Ryan
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    Jul 21st 2014, 7:08 PM

    Is it true that he’s leaving politics and going into Banking ?

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    Mute Neoc Divid
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    Jul 21st 2014, 7:13 PM

    Easy work eighty hours a week … You lazy git … The smart people will make the money the idiots can keep the place clean …. For 5 euro an hour …. Simples …..

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    Mute Dermot Ryan
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    Jul 21st 2014, 7:10 PM

    The S.F.A. should sent a report as gaeilge to the minister ‘cos he knows S.F.A./ about Irish ;
    “Common ground is always the best starting point in negotiations !”
    Ching Zo — Chinese Philosopher .

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    Mute Smokeyno7
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    Jul 21st 2014, 10:44 PM

    Of course it does governments don’t create jobs just the need for high taxes to support the

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    Mute Banga Ncube
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    Jul 22nd 2014, 8:51 AM

    m

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