There was a slight improvement in the length of time small and medium enterprises had to wait for payment in the second quarter of 2016, according to SME representative group ISME. The improved outlook comes as the sector faces into a potentially difficult, particularly for exporters in the wake of the Brexit vote.
Mark Fielding, CEO of ISME, said that while the figures represent an improvement on the days of the financial crisis when 25% of SMEs were waiting more than three months for payment, they are still too high. Speaking on RTÉ's Morning Ireland he said that large businesses are contracting out of the law and paying whenever they want.
Mr Fielding said that larger businesses are putting undue pressure on their smaller counterparts and proper legislation is needed in order to combat it. He suggested a scaled change in the legislation over a number of years in order to improve payment times to within 30 days.
He also said that many SMEs had managed to avoid any major shocks from the British decision to leave the European Union by hedging sterling. However, he advised caution in the short and medium-term as companies will have lost in the region of 30% competitiveness as a result of the vote. Mr Fielding sounded a note of optimism, pointing out that many exporters have been diversifying, meaning the UK market is not as significant as it once was.
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MORNING BRIEFS - There has been a sharp rise in property prices outside of Dublin, according to the latest reports from two housing websites. Daft and MyHome.ie both indicate there has been a sharp increase in asking prices for newly listed properties in the three months to the end of June this year.
*** UK Chancellor George Osborne has indicated that he will look to cut Britain's corporation tax rates to 15% in order to improve competitiveness. Slicing more than 5% off the current rate would see Britain close in on Ireland's 12.5% levy and make it one of the most competitive global economies.
*** Irish wholesale gas prices have fallen 28% year-on-year, according to market research published by Vayu Energy. The fall in price of gas, combined with the amount of power generated from renewable sources, has also lead to a decline in wholesale electricity prices year-on-year.
