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.

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