The Irish Small & Medium Enterprises Association (ISME) have today warned that increasing business costs are jeopardising the continuing recovery, as evidenced by the unchanged 8.4% unemployment rate.
The Association has called for greater emphasis on cost controls and productivity, not alone in the private sector but across the board, in order to maintain competitiveness. The ISME has also warned that Government intervention is required in insurance and bank sectors.
ISME Chief Executive, Mark Fielding warned, "Both private enterprise and government have a role to play in maximising productivity, which means increasing output with the same resources. Pay rates are still high by European standards and must be managed both in the public and private sector. Pay restraint will allow us to improve competitiveness in the international economy, while raising the standard of living at home".
He added, "The relentless increases in business costs such as insurance, bank interest and charges are hampering job creation. SMEs are price takers and at the mercy of the multinational providers in a cartel-like market, where Government intervention is the only solution."
Source: www.businessworld.ie