Cut in tax on profits `a boost'

Mr Ray Moore is managing director of Hibernia Steel Products, based in Co Louth, which specialises in the distribution of steel…

Mr Ray Moore is managing director of Hibernia Steel Products, based in Co Louth, which specialises in the distribution of steel products throughout the Republic.

He employs 16 people and says the main issue which concerned him before the Budget was ensuring people are properly rewarded when they take up employment.

He said Mr McCreevy's Budget was one of the best he has seen in recent years. He was particularly happy with the commitment that anybody who earns £100 or less will be removed from the tax net.

"It is hard for us to get employees and the measures in this Budget should improve that situation as it makes work more attractive than staying on the dole," he said. He described the increases in personal allowances as "especially generous" and he predicted they should create an "incentive to work".

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While he did not like the increase in employer's PRSI, he welcomed the reduction in corporation tax from 32 per cent to 28 per cent as "a great morale boost".

He described as extremely positive the application of the 25 per cent rate to the first £100,000 of profits - double the previous ceiling of £50,000.

"I think the tax changes are very encouraging, although like a lot of people I think the Government will have to explain more clearly how this system of tax credits works," he added.

He said the one failing was not tackling the housing problem.

"A lot of our staff are having dreadful problems trying to buy a house and there is nothing in this Budget which is really going to tackle that.

"At least there is more money in people's pockets so that may increase their chances of being able to come up with the purchase price of a house," he added.