The Small Firms Association has called on Finance Minister Brian Lenihan to deliver a 'tough' Budget in December, which will restore confidence in the economy.
In its pre-Budget submission, the SFA says that the Government must not lessen its commitments, especially its promise to cut €4 billion from current public expenditure.
SFA Chairman Dr Aidan O'Boyle said that if the Government in Budget 2010 show that they now have 'a realistic and feasible plan' for addressing the €26 billion deficit, he is confident that business people who have been postponing investment decisions will go ahead and consumer demand will increase.
The SFA wants the €4 billion cuts shared in three ways - one third from a reduction in the cost of the provision of public services, one third through a reduction in the social welfare bill and one third through efficiency gains across the broader current public expenditure heads.
The association said the McCarthy report should service as a basis for these cuts. Dr O'Boyle noted that with deflation running at 6.6%, the real impact of these cuts would be far less than the headline rates.
The SFA also wants the introduction of a Government-backed loan/equity guarantee scheme as a part of a range of measures to support small businesses and project jobs. It says it does not believe that NAMA will deliver on its aim of improving credit flow to small businesses.
The association also urged Brian Lenihan to take action to address the competitiveness deficit facing small firms here.
'Issues such as the cross-border trade and difficulties facing exporters must now be addressed by Government as part of a wide-reaching enterprise and jobs support policy,' said Dr O'Boyle.
