The greatest challenge facing the economy and society at present is to halt the recent surge in unemployment, according to IBEC West regional director John Brennan.
Mr Brennan has called on the Government to implement temporary measures to help companies retain jobs during the recession.
“A suite of temporary business supports, which would ensure that hitherto viable companies survive the next two very difficult years and sustain employment, is urgently required,” he said.
“The Exchequer has the resources to fund such supports if Government proves flexible enough to redirect existing commitments under the National Development Plan into more urgent short-term relief measures. A €1bn fund should be made available in 2009 and 2010 to facilitate the implementation of these business supports.”
Mr Brennan cited a marketing compensation grant as one example of the supports that could be provided through such a fund.
“This form of grant aid would assist businesses to overcome exceptional market distortions where they can demonstrate that loss of market share or loss of income due to exchange rate fluctuations is threatening their viability,” he explained.
“The overall aim of the supports should be to sustain as high a level of enterprise activity and employment as possible by mitigating the adverse impact of the lack of access to finance and the crippling impact of currency movements.
“The paltry €100m over two years Enterprise Stabilisation Fund announced in the supplementary Budget will do little to support struggling businesses in real terms.
“Failure by Government to implement an immediate suite of emergency support measures for those businesses affected by the recent economic, financial, and exchange rate difficulties will result in a damaging and irreversible erosion of Ireland’s enterprise base,” he warned.
