PUBLIC SECTOR PAY POSES GREATEST INTERNAL THREAT TO IRISH ECONOMY

• Government must take responsibility to reform Public Sector.


• Parallel pay worlds must not be allowed to develop.


• An efficient Public Sector is an important component of our modern economy.


• 47% pay gap a triumph of Greed over Need.


• Second Benchmarking exercise must reflect realities and not capitulate to Public Sector Unions’ demands.

ISME’s END OF YEAR STATEMENT 2006

• 2006 - A positive year for small business.


• However, state-driven inflation is having harmful effects on doing business in Ireland.


• Higher labour and energy costs biggest threat to viability of small business in 2007.


• Small Business Forum recommendations have a significant impact on business environment.


• Economic prospects remain good and growth looks set to continue its strong momentum in 2007.

PUBLICATION OF ISME’s FOURTH QUARTERLY BUSINESS TRENDS SURVEY WINTER 2006

• 38% of SMEs positive about prospects in 2007, with increases in employment and investment predicted.


• 30% of SMEs expect to increase employment over the next 12 months. Worryingly however no net new jobs in manufacturing.


• Manufacturing ‘bucks the trend’, with worrying signs on the horizon.


• The cost environment, particularly wages and energy, continues to be the Number 1 concern for SMEs.


• Increases in the minimum wage, energy, electricity and local charges to negatively impact on SME performance in 2007.

SUBSTANTIAL HIKE IN MINIMUM WAGE TO UNDERMINE COMPETITIVENESS

• 13% increase to be introduced within a matter of days, with no thought for the impact on small business.


• 29% of SMEs outline the increase will have a significant impact on their business, with 23% anticipating employing less.


• Social Partners’ ‘dithering’ back-fires on business.


• Small business needs ignored once more in Process.

ISME SLAMS ICTU’S BES COMPLAINT

ISME CRITICAL OF AN POST PRICE INCREASE APPLICATION

• Small Business refusing to bail-out inefficient postal service.


• 15% increase a step too far for business.

DRAMATIC INCREASE IN INFLATION A MAJOR SHOCK FOR SMALL BUSINESS

• Increase in inflation bad Christmas box for small business.


• Increases in electricity, the minimum wage, local charges and current Government expenditure to maintain upward inflationary pressures.


• Service inflation figures at 8.5%, in comparison to 0.3% in the traded goods sector, a major concern.

ISME CALLS FOR PAID LEARNING LEAVE FOR SMALL BUSINESS

• Training essential for small business growth and development


• Over 500 SMEs have benefited from ISME Training courses.


• ISME training initiative proves beneficial to increasing company productivity.


• 400% return on investment in training reported by ISME members.


• Training for small business as important as investment in R & D and technology.


• ISME calls for bulk of National Training Fund to be earmarked for SME training.


• The introduction of paid learning leave a priority for SMEs.

ISME BUDGET 2007 RESPONSE MIXED BAG BUDGET A STEP IN THE RIGHT DIRECTION

• An opportunity lost however, as increasing cost environment not tackled in Budget.


• Short term gain could lead to long term pain.

ISME SLAMS SUBSTANTIAL HIKE IN MINIMUM WAGE RECOMMENDATION

• 13% increase unwarranted and unjustified.


• Highest Minimum Wage in Europe to further undermine competitiveness.

ISME EMPLOYMENT LAW TRAINING DAY TO BENEFIT SMALL BUSINESSOWNER MANAGERS

• ISME hosts training course for SMEs to keep up to date on relevant employment legislation in response recent key changes.


• Opportunity for Owner/Managers to question Ireland’s top employment law experts

PUBLIC SECTOR PAY THREATENS ECONOMIC VIABILITY

• Public sector pay a massive 46% higher than the average industrial wage.


• Pay and pensions bill will reach €18bn next year, representing 38% of current Government expenditure. Benchmarking awards will significantly add to this figure.


• Public sector pay has more than doubled since 2000, with employment up 67,000 in the same period.


• Tax increases will be required to pay for unprecedented levels of public sector pay.


• No accountability, no action plans, no adequate services should equal no benchmarking.


• ISME calls for a complete overhaul of the public sector in order to achieve value for money.

ISME QUESTIONS GOVERNMENT DECISION TO BUY TOLL BRIDGE

• Government set to maintain tolls, post purchase.


• Finance should be rerouted into construction of outer orbital road.


• Purchase smacks of ‘election ploy’.

SLIGHT REDUCTION IN INFLATION OF LITTLE COMFORT TO INDIGENOUS SMEs

• Public utility charges still threaten indigenous Manufacturing.


• Official figures masking true cost of doing business, increasing at 10% per annum.

ISME SLAMS GOVERNMENT’S HYPOCRITICAL STANCE ON COMPETITION

• Government stance on Aer Lingus contrary to their policy of prevention of competition in energy and transport sectors.


• Pandering to the Unions creating high costs, inefficiencies and bad services.

PUBLICATION OF ISME’s THIRD QUARTERLY BUSINESS TRENDS SURVEY AUTUMN 2006

• Sharp decline in Manufacturing takes gloss off otherwise positive outlook.


• As other sectors show increased employment, turnover and investment, a reverse reported in Manufacturing.


• Labour and energy costs a huge concern as competitiveness continues to suffer.


• The upcoming Budget must address cost increases to save Manufacturing, which is ‘on the ropes’.


• ISME calls for the immediate implementation of the High Level Manufacturing Group to investigate and address the concerns of the sector

ISME PRE-BUDGET SUBMISSION 2007

• Rewarding the Risk Taker


• Restoring Irish competiveness and rewarding enterprise should be key priorities in formulating Budget 2007.


• ISME calls for Government’s contributions to SSIAs to be transferred into Infrastructure.


• Staff profit sharing initiatives and the reintroduction of dividend relief vital to developing and maintaining SME growth.


• ISME outlines that domestic business is suffocating due to high cost environment. Investment in alternative energy and the redistribution of water charges and commercial rates to householders and the State suggested.


• The full implementation of the Small Business Forum recommendations a good indicator of Government commitment to Small Business.

ISME WELCOMES TEMPORARY RESPITE BUT WARNS AGAINST COMPLACENCY

• Services inflation at 7.5% a major concern.


• Energy cost increases will prove ‘a step too far’ for many businesses.


• ISME warns Government on give-away Budget.

HOUSING COSTS AND INFRASTRUCTURE INEFFICIENCIES COSTING BUSINESS MILLIONS

• Infrastructure “bottle-necks” threatening future economic growth.


• Significant investment required to achieve regional balanced development.


• ISME Chief calls for the setting up of a National Infrastructure Body to accelerate the provision of Infrastructural projects within time and within cost.

ADDRESS BY ISME CHAIRMAN, DANIEL HICKEY AT THE ASSOCIATION'S ANNUAL CONFERENCE

• The importance of small business ignored at official level, according to ISME Chairman.


• Lack of Government support hindering the development of enterprise.


• Sub standard policies leading to sub standard services.


• ISME Chief challenges Minister over decision not to break-up the ESB.


• Implementation of Small Business Forum recommendations and a ‘think small first’ policy a prerequisite for success.

ISME CRITICAL OF DECISION NOT TO BREAK UP ESB

• Green paper flawed in its failure to address competition and protection of the dominant electricity supplier.

Fear of Unions behind decision.

• Implementation of Deloitte recommendations required in order to bring real competition into the electricity sector.

ISME ATTACKS OUT OF CONTROL PUBLIC SECTOR PAY

• Public sector pay a massive 47% higher than the average industrial wage.


• The differential between public and private sector pay increasing annually.


• Figures confirm the ‘con job’ that is benchmarking.


• ISME calls for a radical review of the public sector to avoid an increased tax burden.

ISME CHIEF CALLS FOR URGENT ACTION TO TACKLE ‘OUT OF CONTROL’ COST ENVIRONMENT FOR SMALL BUSINESS

• Drastic action required before small companies are 'priced out' of doing business in the area.


• Crippling costs leading to job losses and company closures.


• Energy and labour costs the main concerns for small business.

ISME SLAMS CER DECISION TO ALLOW FURTHER ELECTRICITY INCREASE

• Electricity cost for SMEs have risen by a massive 89% in 5 years.


• Energy costs now 'enemy number one' for SMEs.


• Energy Regulation has been a disaster for Small Business.


• CER seen as nothing more than a mudguard for the Minister.


• Review of the position and role of the Energy Regulator needed urgently.

ISME SHOCKED BY OMINOUS RISING INFLATION FIGURES

• Inflation rate doubled in last 12 months to highest rate in over three years.


• Small Business paying the price of Government's inaction.


• Anti-inflation committee marked absent.


• Government’s tendency towards a ‘give-away’ budget must be resisted.

GOVERNMENT ACTION URGENTLY NEEDED TO TACKLE ‘OUT OF CONTROL’ INFLATION

• An anti-inflation policy required to address eroding competitiveness.

ISME STRONGLY OBJECTS TO THE INTRODUCTION OF MANDATORY PENSIONS

• The proposal by the Pensions Board of a Mandatory Pension is a non-runner for small employers

ISME INTRODUCES UNIQUE TRAINING PROGRAMMES FOR SMALL BUSINESSES

• New training initiative to significantly increase productivity and enhance competitiveness for small companies


• ISME identifies training as key to future business development and growth of Irish companies

GAS HIKE ANOTHER BODY BLOW FOR SMALL BUSINESS

• Dreadful decision a step too far for small business as energy costs run out of control.


• Gas prices will have increased by an unsustainable 91% since 2002.


• Many companies will be hit with an additional, €13,000 bill on top of proposed electricity increases.


• A typical SME will have to increase turnover by €250,000 just to pay for the increased gas cost alone.


• National energy policy immediately required to incentivise and promote alternative sources of energy

ISME ANGERED BY PROPOSED ELECTRICITY PRICE INCREASE

• In five years electricity prices will have increased by over 80%, five times the rate of Inflation.


• Increase will further undermine the competitiveness and the viability of many small businesses.


• The Association warns of dire consequences particularly for traditional manufacturing if further increases are approved.


• Blatant attempt to profiteer on the backs of the consumer and small business.


• ISME calls on the Government to take back responsibility from an ineffectual regulator and to immediately review the process in order to prevent further increases of the magnitude experienced to date.

ISME RESPONSE TO INFLATION ‘CRISIS’

• Irish Competitiveness being eroded by ‘out of control’ inflation.


• Government inaction detrimental to future growth prospects.


• Alarm at dramatic widening of Irish and European Inflation rates.


• Inflation to top 4.5% in the next number of months.

PUBLICATION OF ISME’s SECOND QUARTERLY BUSINESS TRENDS SURVEY SUMMER 2006

• The SME sector continues to perform robustly with positive indicators on business confidence, employment and investment.


• Once again SMEs will continue to be the main drivers of employment growth, with 36% of companies expecting to increase employment over the next number of months.


• Warning signs, as the Construction sector is the least positive about business prospects despite recording the highest increases in employment.


• High cost environment continues to be the biggest threat to future development and growth, with production costs increasing by 10% per annum on average.


• Reduction in exports linked directly to persistent high costs.


• Benchmarking II constitutes an added threat to future economic and business performance.

ISME SLAMS SIPTU’s DISRUPTION TO AIRPORT SERVICES

• Thinly disguised industrial action at airports a disgrace


• Disruption will leave thousands stranded at one of the busiest times of the year.


• Power-hungry and avaricious Union’s total disregard for passengers confirms urgent need for privatisation and strong management at Aer Lingus.

ISME WELCOMES THE INTRODUCTION OF BUSINESS ACCOUNT SWITCHING CODE

• ISME calls on the individual banks to ‘play ball’ to ensure that changing banks becomes a simple hassle free process.


• Code if operated effectively should ensure increased competition, more options and greater leverage for small business owner/managers.

SOCIAL PARTNERSHIP AGREEMENT A BAD DEAL FOR SMALL BUSINESS

• A heavy price will be paid for ‘Agreement at all costs’.


• Wage increases without productivity increases a recipe for economic disaster.


• All give and no take as IBEC submits to the Trade Unions and ‘sells small business down the swanny’.


• Democracy undermined as the terms of the agreement confirm that the Unions and the even less representative CORI are effectively dictating economic and social policy.


• Increases in minimum wage, in social welfare payments and discussion on mandatory pensions confirm that Employers were not adequately represented at the negotiation process.

ISME WARNS AGAINST RISING PUBLIC SECTOR COSTS DRIVING INFLATION

• Inflation at its highest rate in three years


• Recent wage increases will fuel further inflation spiral

BLACK ECONOMY THREATENING LEGITIMATE BUSINESSES, COSTING THE STATE BILLIONS IN LOST REVENUE

• Over €1bn per month the estimated value of the black economy.


• An estimated €2.7bn lost to the exchequer annually in unpaid taxes.


• Legitimate businesses being undercut by rogue operators.


• ISME calls for Government action to tackle the illegal activities of rogue operators, racketeers and others who participate in the black economy.

ISME REACTION TO CSO QUARTERLY NATIONAL HOUSEHOLD SURVEY

• Latest employment figures confirm continuing heavy reliance on migrant labour.


• 56% of all new jobs created were filled by non-nationals, bolstering the argument for a 'well-planned' immigration system which identifies and attracts foreign workers to ensure that employment opportunities are filled without delay.


• Concern at dramatic increase in public sector numbers with 31,000 or 35% of 89,800 jobs created in areas dominated by the Public Sector.


• Manufacturing continues to shed jobs; a huge worry.

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Tuesday 23th May 2006

ISME CHIEF WARNS SOCIAL PARTNERS NOT TO DESTROY IRISH COMPETITIVENESS IN WAGE NEGOTIATIONS

• Trade Union demands, if conceded, would do irreversible damage to small business competitiveness.


• ISME warns that exorbitant wage demands leading to an upward wage/inflation cycle will have a detrimental impact on the economy.


• The best way to protect Irish jobs is not to price them out of the marketplace


• Pay rate increases need to be brought down to the European average to protect Irish competitiveness

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Tuesday 16th May 2006

ISME WELCOMES SMALL BUSINESS FORUM REPORT

• Implementation body must follow through on recommendations and drive subsequent action to implement them.


• Unique opportunity for Government to affirm its commitment to the SME sector and to growing a strong indigenous platform.

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Thursday 11th May 2006

ISME WELCOMES INCREASE IN THE AUDIT EXEMPTION FOR SMALL BUSINESS

• New threshold is a step in the right direction and brings Ireland into line with the rest of Europe.

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Thursday 11th May 2006

ISME ALARMED BY RISING INFLATION

• Inflation at its highest rate in three years.


• Where has the anti-inflation committee gone?


• Further hikes in gas and electricity should be resisted at all costs.

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Tuesday 9th May 2006

ISME CALLS FOR IMPLEMENTATION REVIEW BODY TO MONITOR THE DEVELOPMENT AND GROWTH OF SMALL BUSINESS

• Small Business Forum report redundant without the support of an implementation review body.


• Whatever happened the Enterprise Strategy Group Report?


• Experience confirms that previous industrial policy reports are left to gather dust unless a review body is introduced to monitor their effectiveness.


• The implementation of the recommendations of the Small Business Forum and ongoing review of the sector is essential in order to promote and sustain enterprise.

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Thursday 4th May 2006

ISME CRITICAL OF RUNAWAY PUBLIC SECTOR PAY

• Public sector pay running 47% ahead of the private sector


• ISME questions Government commitment to reduce numbers in the public sector, as employment increased by 15,000 in the last three years.


• CSO statistics reconfirm the scam and lies that is 'Benchmarking'


• ISME calls for the Benchmarking process to be replaced by a radical overhaul of the public service, based on productivity increases before pay increases and not the other way around.

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Thursday 4th May 2006

ISME CALLS FOR SPEEDY DELIVERY OF CORRIB GAS IN LIGHT OF POSITIVE SAFETY RECOMMENDATIONS

• Indigenous supplies of gas urgently required to off-set heavy dependence on imports.


• 60% of future gas demand to be met from Corrib gas field.


• Local and National economies to benefit.

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Wednesday 3rd May 2006

ISME CHIEF WARNS ON SOCIAL PARTNERSHIP NEGOTIATIONS

• Conceding to Trade Union demands would do irreversible damage to small business competitiveness.


• ISME warns that common sense must prevail and the Unions must realise that the best way to protect Irish jobs is not to price them out of the marketplace, particularly in the manufacturing sector.


• Pay rates need to be brought down to the European average from twice the EU average to protect Irish competitiveness.

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Friday 28th April 2006

ISME WELCOMES MINISTER DEMPSEY’S ANNOUNCEMENT TO PROVIDE COMREG WITH NEW POWERS TO ADDRESS BROADBAND FIASCO

• Actions not words required to bring broadband services into the 21st Century.


• Lack of affordable broadband 'hindering' small business


• Recent survey highlights that broadband is not available to 47% of SME businesses.


• Long delays and high prices damaging competitiveness.


• Eircom's dominant position preventing Broadband rollout.


• Stronger legislation required to improve network access.

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Monday 24th April 2006

PUBLICATION OF ISME’s FIRST QUARTERLY BUSINESS TRENDS SURVEY SPRING 2006

• High level of optimism as key indicators reveal upbeat business sentiment shown by SMEs.


• Business confidence, employment and investment prospects continue positively.


• Employment prospects particularly upbeat, with a net 31% of companies anticipating an increase in employment.


• Manufacturing continues to show positive employment and investment figures, in comparison to the static performance of the sector in recent years


• The survey confirms that labour and energy costs represent the biggest threat to small business.


• ISME calls on Government to tackle public sector costs in pay talks element of Social Partnership.


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Thursday 20th April 2006

RISING OIL COSTS A SERIOUS CONCERN FOR SMALL BUSINESS


• Unsustainable oil price increases will have a ‘catastrophic’ effect leading to company closures and job losses.


• Lack of National Energy Policy brought into focus.


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Thursday 13th April 2006


INFLATION

• Worrying signs as inflation at its highest since June 2003


• Public utility costs remain ‘enemy number one’ in battle to reduce the level of inflation


• As the Government stands idly by competitiveness continues to be eroded.


• Small business hit by ‘double whammy’ of increasing public utility costs and in turn their influence on increased wage demands.


• ISME calls on Government commitment to tackle public sector costs as part of pay talks element of Social Partnership.

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Thursday 6th April 2006

ISME CHIEF HITS OUT AT UNION SCAREMONGERING ON SPURIOUS ‘DISPLACEMENT’ ISSUE

• Trade Unions false agenda exposed.


• Promotion of so-called ‘displacement’ a cynical and dangerous exercise, which will lead to increased racism and xenophobia.


• No evidence of ‘displacement’ in buoyant jobs market.

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Tuesday 4th April 2006

ISME CONCERNED AT INCREASING REDUNDANCY FIGURES

• 36% increase in redundancies in the first quarter of the year causes considerable concern.


• Manufacturing in Ireland under threat if current cost base not addressed.


• ISME calls for an immediate review of the cost environment in which businesses operate, particularly Government influenced costs, which are directly contributing to job losses.

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Thursday 21st March 2006


ISME WARNS COMPANIES OF UPSURGE IN INTERNATIONAL BUSINESS SCAMS

• Increase in scams and business fraud has the potential to cost business thousands of Euro.


• False invoices, phishing* and international business directories particularly problematic.


• ISME recommends small companies to be extremely vigilant for fraudulent activity particularly during the summer season and other holiday periods.

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Thursday 16th March 2006

ISME CONCERNED AT DRAMATIC INCREASE IN INFLATION

• In the last two months alone the rate of inflation has increased by almost one percentage point, a worrying development.


• Irish inflation well below the European Inflation, which has reduced to 2.3%.


• Domestically driven inflation adding to business costs, undermining competitiveness and leading to job losses.

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Thursday 9th March 2006

ISME CALLS FOR THE IMMEDIATE INCREASE IN THE AUDIT EXEMPTION FOR SMALL BUSINESS

• EU threshold (€7.3m) is 5 times the current Irish exemption of €1.5m.


• Irish SMEs at competitive disadvantage against Northern Ireland and UK companies.


• New Auditing standards causing confusion and adding unnecessarily to costs for many small companies

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Tuesday 21st February 2006

LAUNCH OF ISME SKILLNETS TRAINING NETWORK 2006/2007

• Unprecedented demand for training by small companies leads to the introduction of exciting initiative.

Training a key component in addressing competitive weakness. [/list

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Thursday 09th February 2006

INFLATION

• ISME warns against continuous rising public sector costs underpinning inflation.


• Wage moderation the key to Economic stability.

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Tuesday 01st February 2006

ISME CHIEF SLAMS GOVERNMENT FAILURE TO CONTROL RUNAWAY PUBLIC SECTOR PAY

• Average public sector pay running 47% ahead of the private sector


• ISME questions Government commitment to reduce numbers in the public sector, as employment increased by 18,000 in the last three years.


• CSO statistics reconfirm the scam and lies that is 'Benchmarking'


• ISME calls for the Benchmarking process to be replaced by a radical overhaul of the public service, based on productivity increases before pay increases and not the other way around

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Thursday 19th January 2006

INFLATION

• ISME welcomes slight reduction in inflation but warns against continuous rising public sector costs.

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Wednesday 18th January 2006

ISME CHIEF CALLS FOR A ‘FRESH APPROACH’ TO SOCIAL PARTNERSHIP AT MEETING OF SMALL BUSINESS OWNERS IN NAVAN


• Current process seen as undemocratic, unrepresentative and insular.


• Excessive Trade Union influence a threat to future economic growth.


• ISME calls for a 'fresh approach' to Social Partnership by expanding the structure to include front bench spokespersons, representatives of the ESRI, Central Bank and Small Business.

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Wednesday 18th January 2006

ISME CHIEF CALLS FOR A ‘FRESH APPROACH’ TO SOCIAL PARTNERSHIP AT MEETING OF SMALL BUSINESS OWNERS IN DUBLIN


• Current process seen as undemocratic, unrepresentative and insular.


• Excessive Trade Union influence a threat to future economic growth.


• ISME calls for a 'fresh approach' to Social Partnership by expanding the structure to include front bench spokespersons, representatives of the ESRI, Central Bank and Small Business.

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Thursday 5th January 2006

ISME CALLS FOR SPEEDY RESOLUTION OF CORRIB GAS PIPELINE DISPUTE IN THE WAKE OF RUSSIAN-UKRAINIAN STAND-OFF


• Ireland’s over-reliance on imported gas highlighted by recent Russia-Ukrainian stand-off.


• Indigenous supplies of gas urgently required to off-set heavy dependence on imports.

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