What it means for me

DAVID WALSH, Business owner

BUSINESS OWNER David Walsh gave a broadly positive welcome to yesterday’s four-year plan.

Walsh runs Carlow-based NetWatch, a company which provides security surveillance to businesses and homes and employs 80 people.

Like many medium-sized businesses, Walsh sees the retention of the corporation tax as a major plus.

“It is not just crucial for our own businesses, but also indirectly, as many medium-sized businesses feed off the activity larger multinational firms bring to the country,” he says.

The reduction in the minimum wage proposed in the plan was also welcomed by Walsh.

“Like many companies we are competing with much lower cost economies, so any move towards competitiveness is good,” he says.

However, Walsh stresses that employers should pay the minimum wage only when absolutely necessary.

The introduction of a rates system for private property owners and a water charge from 2014 were also welcomed by Walsh.

“The business community has long argued that local authority charges should be shared among business and residential users.

“The introduction of a ‘polluter-pays’ system is fair,” he says.

While the plan allows for the extension of the employers’ PRSI scheme until 2011, Walsh says that the employers’ contribution to PRSI still represents 10 per cent of wage costs, and is a major cost for businesses.

While the proposal to increase the standard rate of VAT by 1 per cent in 2013, and a further 1 per cent to 23 per cent in 2014 will not have an impact on business-to-business trade or export businesses, he says it it will be a concern for the retail industry.

Walsh also welcomed the commitment in the plan to sustain government investment in innovation and enterprise.