The Small Firms Association has said the Finance Minister should plan for the worse case scenario and take the required 'difficult' action on April 7 instead of having a number of mini-budgets on a reactionary basis throughout the year.
In a pre-Budget submission, the SFA says the Government will have to deliver significant expenditure cuts, just as every small business in the country is doing within its own operations.
The SFA's Patricia Callan says there needs to be a decrease in pay and conditions of employment and a cut in the numbers working in the public sector on a pro-rata basis to the losses suffered in the private sector.
She also says it is essential that any revenue raising aspect of the mini-budget is implemented with immediate effect. 'We believe any increases in taxation should focus on adjustments to the existing tax levies,' she commented.
The SFA says it is critical that the country's corporation tax rate of 12.5% should be retained and also warns against any further increases in the VAT rate.
It recommends that the €1 billion currently not allocated under the National Development Plan be immediately redirected to provide support for small firms experiencing extreme trading difficulties to help them stay in business and preserve jobs.
These supports could include the introduction of a Government-backed loan guarantee scheme for small businesses and a reduction of employers' PRSI.
The SFA also calls on the Government to pay its own bills to businesses within ten days and to take action on tackling the country's excessive cost-base.
It also says it is 'unsustainable' in the long term for 40% of people at work to be outside the income tax net and calls for the current wage agreement to be set aside.
