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The representative group for small businesses has criticised the Government’s response to the worsening economic situation.

Pat Crotty, chairman of the Small Firms Association (SFA) told delegates at its national conference in Dublin Castle today Minister for Finance Brian Lenihan was concentrating too much on protecting its own cash flow.

“It must remember that it is only if businesses make a profit and continue to employ people, will government have the money to fulfil its social agenda, through taxation on capital and labour. We all need businesses to thrive so that the economy can thrive,” he said.

He called for assistance for businesses outside the current state agency regime.

“To date, the emphasis has been on manufacturing businesses that export and on internationally traded services. This neglects the group of companies that are operating very successfully in the domestic market.”

Crotty also called on the Government to restrain prices for public services, adding that it was “worrying” that the Government and its agencies are containing to impose increases.

He called for the measure of inflation in Ireland to be harmomised to the European system which excludes mortgage interest repayments.

“For the life of me, I cannot understand why the Local Authorities, for example, need to include mortgage interest in their calculation of how much rates to charge you and me for the coming year. The same applies to all other agents of the state.”