IBEC calls for moves to boost local economy
Published 19/07/2010 | 05:00
EMPLOYERS' lobby group IBEC has called on the Government to introduce measures to boost the domestic economy if the country is to avoid a two-speed recovery.
A new report released by the group yesterday said that the country was currently experiencing a thriving export sector but poor domestic demand.
However, the group claims Ireland is once again becoming a favoured location for foreign direct investment (FDI),
"The focus over the past two years on increasing productivity and cutting costs has helped companies restore some of the competitiveness lost in the preceding years. Although there is still some way to go, we have made significant strides," IBEC's Director of International Affairs Brendan Butler said.
But the domestic economy had to become a priority for government action, he warned.
He said the Government needed to put in place a well-targeted public capital-investment programme and ensure that any changes to the tax system promoted confidence and encouraged a return to more normal spending patterns.
"While current government expenditure is running marginally ahead of budget, capital investment is a substantial 25pc behind target. It is vital that the Government remains committed to its own capital investment targets," Mr Butler said.