2013-08-18

If you keep pushing it up we just become even less competitive

Budget save small firms from the Brexit

Canada Goose Coats On Sale ”He speaks like the CEO of a listed company,” said one impressed businessman who had turned up for the early morning breakfast briefing to hear how Donohoe’s first Budget will impact Irish business. Canada Goose Coats On Sale

canadian goose jacket Businesses have largely been giving a cautious welcome to the Budget since Donohoe delivered a package that was uncontroversial and delivered no hostages to fortune. canadian goose jacket

uk canada goose As Donohoe spoke at length two days canada goose outlet reviews later to the assembled business people in St Stephen’s Green, a well timed Luas passed by on the newly built tramline outside the window as if to underline economic progress, bringing a smile to the face of the former Transport Minister. uk canada goose

Canada Goose online ”A lot done, more to do,” he might have quipped, canada goose outlet toronto factory if the slogan was not already taken. Canada Goose online

Canada Goose sale But miles from the vibrant hustle and bustle of Dublin city centre, in the village of Finea, Co Westmeath, right on the border with Co Cavan, Bernard Coyle takes a canada goose outlet shop somewhat more downbeat view of Donohoe’s first budget. Canada Goose sale

Coyle’s company, Mr Crumb, provides 100 jobs in the village in a modern food processing plant that exports artisan bread crumb and stuffing products to the UK and Europe. Its brand can be found on the shelves of most of the major UK multiples and the business is the main employer in an area with very few alternatives.

canada goose uk shop For Mr Crumb, and many other similar small Irish food producers canada goose outlet uk sale dependent on exporting to Britain, the threat of Brexit and the subsequent fall in sterling is placing a question mark over their very existence. canada goose uk shop

So where others may have been looking for a few euro extra in their pocket at the end of the month from the Budget, food producers such as Mr Crumb were looking for a lifeline.

”People over the years came to see budgets like Christmas and canada goose outlet new york city this is more of a balance the canada goose outlet books type budget, which is probably as it should be,” said Coyle. ”But, that being said, for many of us in small companies, particularly in the food industry, it is something of a disappointment.”

Perhaps, the standout announcement from the Budget for small business owners was the 300m Brexit loan scheme announced by Donohoe to help companies through the challenges ahead.

canada goose black friday sale But, said Coyle, there was a distinct lack of detail as to how this will work in practice for prepared consumer food companies such as Mr Crumb, which operate on net single digit margins and which send about 20pc of canada goose outlet nyc their total production to the UK where they are now dealing with a 20pc drop in canada goose outlet online sterling. canada goose black friday sale

”It seems like a very small sum of money to deal with the problems that lie ahead. There is little detail, for example, whether it will work through long term low interest loans or, even better, whether it could be used to take preference https://www.canadagooseisverige.com shares in some of these companies.

”If they don’t do something dramatic I have absolutely no doubt canada goose outlet black friday that a lot of companies in this sector will not survive the cliff edge that is approaching over the next 12 months.”

canada goose store Apart from the lack of detail around the Brexit loan scheme, Coyle believes the Budget has one very negative development for small exporting businesses, which, he said, were already 15pc less competitive than similar producers on the continent and in the UK. canada goose store

canada goose clearance ”We have one of the highest minimum wage rates in Europe and that has canada goose black friday sale just gone up again by 30 cent an hour. canada goose clearance

Canada Goose Jackets ”I understand this is an expensive country to live canada goose factory outlet in but the government should be looking to reduce taxes for low paid canada goose outlet uk people rather than increasing the minimum wage. If you keep pushing it up we just become even less competitive.” Canada Goose Jackets

canada goose coats on sale Coyle estimates that the latest increase will cost his company about 70,000 a year. ”Where does the Government think that companies such as ours are going to magic up such sums canada goose outlet store of money?” he says. canada goose coats on sale

”A canada goose outlet online uk lot of these companies are scattered around rural Ireland so the loss of canada goose outlet jackets jobs that is going to come inevitably, in my opinion, is going to be felt outside of the big cities in companies that employ five to 50 people.”

Michael Carey, chairman of Bord Bia and managing director of East Coast Bakehouse, canada goose outlet parka believes canada goose outlet in usa that there is a recognition of the needs of the sector.

”I think there’s a realisation of the potential impact and the need for support. I would question the extent of it. Obviously more funds would be more useful for the companies and the extent canada goose jacket outlet of the funds that have been made available across such a wide scope of potential organisations is perhaps too limited,” he canada goose outlet store uk said.

cheap canada goose uk Lots of work has been undertaken regarding the extent of preparedness in the food industry and where the needs lie, said Carey. However, ”there’s an awful lot of work still to happen within individual businesses to develop specific marketing programmes for the UK and for new markets as the footprint of exports is broadened,” he added. cheap canada goose uk

”A lot of companies need a lot of support to get really ready to defend their position in the UK and to extend their export reach. In that sense there’s still a lot of work to go in terms of being prepared for the impact.”

Canada Goose Outlet Eoin O’Neill, president of the British Irish Chamber of Commerce, believes that the Brexit loan scheme will be crucial to help smaller companies develop new markets. He highlights one largely missed detail that, at first glance, would seem to have little if anything to do with small, struggling canada goose outlet sale Irish companies. Canada Goose Outlet

”The announcement of the additional 23m for foreign affairs and the announcement by Minister [for Foreign Affairs Simon] Coveney of the opening of five new embassies may not sound very significant to people. But I’ve been on the ground with ambassadors and I’ve seen the impact they have in a local market and their ability to start to open doors.”

But for many SMEs struggling to keep the doors open, thoughts of new far flung markets are remote indeed. Supermac’s founder Pat McDonagh has spoken regularly about the problems faced by small businesses in Ireland, from planning to insurance to red tape.

”It’s a neutral Budget, a fiver for everyone,” he said, official canada goose outlet adding that he did not see many measures that would help SME owners that face unique difficulties.

Canada Goose Online ”The big multinationals get incentives to come in here and get a good tax deal. Small business by contrast does not seem to be able to get through government to bring canada goose outlet about the changes they need to help them,” he said. Canada Goose Online

buy canada goose jacket cheap One such change that was widely touted ahead of Budget day was a possible cut in the 33pc rate of capital gains tax for entrepreneurs, but that did not materialise. buy canada goose jacket cheap

cheap Canada Goose But one measure that could prove very beneficial to SMEs is the introduction of the Key Employee Engagement Programme, KEEP for short. It is a new share option scheme that will mean staff will pay less tax on share options from their company. Minister Donohoe highlighted the scheme canada goose outlet canada as a boon to SMEs at the Budget Breakfast event, which was organised by INM cheap Canada Goose.