Two thirds of Irish small firms expect their businesses to grow this year. A survey of almost 900 of its members by the Small Firms Association also finds that over 70% of them expect to invest in their businesses in 2015.
Patricia Callan, chief executive of the SFA, says she is disappointed by the fact that many ministers are pre-judging the outcome of the Low Pay Commission in suggesting that the minimum wage might rise. The factors that the Commission will take into account include inflation rates, exchange rates and unemployment rates which all indicate that we are not out of the woods yet. While saying that there is no real justification at this point for a minimum wage rise, Ms Callan says she is fully supportive of the process of having an independent commission to look at the issue. She hopes that member companies will participate and give vital input into the process. Ms Callan said that small firms have moved on from survival mode, from hanging on by their finger tips to focussing on how they can grow their companies. She says small firms are now looking to upskilling their staff and to hiring new people to support their expansion plans.
On the availability of credit, the SFA chief said she has seen some progress on debt financing with the launch of the Strategic Investment Bank, adding that hopefully businesses will see some products coming from the bank in the next few months through the financial intermediaries. She said she would like to see more players enter the market place and produce more innovative financial products including longer term loans and payment holidays. A key challenge for businesses is to get lenders to understand their business, she added. While financial resources are still an issue for people, they are now looking at another issues such as consumer confidence, what is happening in Europe and whether the Government can create an environment that is pro-business, she concludes.
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MORNING BRIEFS - Ryanair recorded another big jump in monthly passenger numbers during December. The airline carried just over 6 million people during the month, up 20% on the same period last year. It filled 88% of seats on planes in December compared to 81% in December 2013.
*** A combination of investor hopes for what Mario Draghi will do and fears over what Greek politician Alexis Tsipras might do saw the euro fall to its lowest level in almost six years overnight. The single currency weakened by over 1% and at one point fell below $1.19 for the first time since March 2009. Investors have been interpreting comments by ECB president Mario Draghi last week as the strongest hint yet that the bank will soon begin buying up the debt of euro zone governments to provide further stimulus in the moribund euro zone. Meanwhile Syriza, the coalition of anti-austerity politicians led by Alexis Tsipras, is looking increasingly likely to be in power following elections in Greece later this month. Over the weekend Germany's Der Spiegel magazine reported that senior officials in Berlin viewed a Greek exit from the euro zone as "manageable". It said Chancellor Angela Merkel was prepared to abandon a previous commitment to retaining Greece in the currency union and plan for what has colloquially become known as the Grexit. A spokesman for the German government said yesterday, however, in response to the Der Spiegel article that no such plans exist and that the Federal Government is assuming Greece will continue to meet all its obligations regardless of which party is in power after the upcoming elections.
*** Permanent TSB is this morning announcing cuts to its variable rates for new customers only. Its variable rate for new customers where the loan is worth between 80% and 90% of the value of their home will fall from 4.69% to 4.28% bringing it from one of the more expensive to one of the cheaper options available at present.
