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Exporters want no more taxes on sector

IEA Budget submission - Call for growth initiatives
IEA Budget submission - Call for growth initiatives

The Irish Exporters Association says that Irish exports could be increased by 50% over the next five years - if government expenditure is cut and a number of measures are introduced to promote and develop exports.

In its pre-budget submission, the association says that the Irish economic recovery is achievable if it is based on the twin strategies of export growth and state expenditure reduction.

The IEA's chief executive, John Whelan, says the Government must avoid any tax increases on the export sector in the December Budget and should also introduce measures to speed up growth in the sector.

Mr Whelan urges the setting up of special export zones to make Ireland a 'gateway' to developed markets for the emerging economies. He suggests that the Shannon Development area be used as a first such special export zone, which would re-energise the whole mid-west region.

He also says that Ireland's trading relationships with the developing economies be developed in a holistic way. Measures could include expanding the country's double taxation agreements, streamlining existing visa requirements and procedures and expanding the graduate programme to allow a wider range of companies and graduates.

The IEA also says that Ireland is currently losing out to the Benelux countries as a premium distribution centre for Europe. John Whelan says that Ireland must clearly carve out its own niche in this lucrative segment. He recommends that a task force to be set up by Forfás to develop the concept.

In its submission to the Minister for Finance, the Exporters Association also recommends a range of taxation policies which would act as an incentive to growth in the export industry. These include reform of the PAYE/PRSI policies, a review of property tax and other tax problems for small business and expansion of the Business Expansion Scheme and seed capital relief and incentives to encourage investment in the industry.

Mr Whelan said the Government must, at least, give the same priority to the issues regarding export expansion and economic growth as to the banking restructuring and must ensure at least the same measure of media coverage.

'If the Government is able to give equal priority to export expansion the IEA believes that this will engender greater confidence in Irish industry, consumers and in the international arena, amongst investors and suppliers,' he added.