Tuesday 16 January 2018

Three-year plan needed for firms hit by Brexit - Ibec

Building new markets takes time: Ibec's Gerard Brady Photo: Gary O'Neill
Building new markets takes time: Ibec's Gerard Brady Photo: Gary O'Neill
Colm Kelpie

Colm Kelpie

The Government must use the Budget to set out a three-year plan worth around €1.2bn to fund businesses exposed to Brexit, Ibec has said.

Support should be targeted at supporting innovation, market diversification, upskilling and capital expenditure in equipment and machinery, the business lobby group said.

The money would come from both Government and EU sources, Ibec said. The body's head of tax and fiscal policy, Gerard Brady, said a strategy focused on encouraging exporting companies to diversify away from the UK will not be enough.

"Loss of UK market share, where it occurs, is likely to happen relatively quickly whilst building new markets abroad can take years and even decades," Mr Brady said.

"Diversification also involves considerable risk and expense.

"Even within the single market companies face barriers in establishing commercial relationships, adapting supply chains, building cash flow, tailoring product and marketing to consumer tastes and overcoming administrative barriers to dealing with new tax and regulatory regimes."

It comes as the majority of Irish hotels and guesthouses are reporting a continued fall in business levels from the UK this summer, according to the results of the latest quarterly barometer from the Irish Hotels Federation.

While business levels overall were up across the summer months most reported a fall in business from Britain.

Irish Independent

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