Without profound and immediate changes in the housing market, Ireland will not be able to house its population, says Chartered Accountants Ireland in its annual blueprint for the economy.

“A sustainable economy requires a functioning housing market,, says The Next Financial Year policy proposals document which CAI says is informed by insights from its 30,000 members on the island.

"Targeted tax incentives should prioritise measures that reduce development costs, ease cashflow concerns and making investment more appealing," the organisation suggests.

There are more than 100 recommendations in the paper, to improve the business operating environment and to meet individual business needs, and those of employees.

Director of public policy Dr Brian Keegan (pictured) commented: “This document sets out what is required for well-functioning economies and societies into the next year. Is speaks to structural challenges in the business environment, the individual needs of businesses, and critically, the needs of employees living in our communities.”

In Association with

The broad range of grants and supports aimed at the manufacturing or internationally traded services sectors should be be adapted for SMEs, according to CAI.

The body suggests widening the eligibility criteria for state aids to include ‘traditional’ industries and service sectors, and that the basis on which many grants and supports are offered should be adapted, with value rather than headcount the key performance indicator. 

Keegan stated: “Last year we noted that government in the future will be bigger, and this needs to happens in a way that helps business flourish. SMEs face increasing financial and administrative burdens in the coming months, from necessary legislative developments on auto-enrolment, the right to request remote working, and statutory sick pay.

"The timing of these and their impact on business needs to be considered and balanced. Equally, for each, comprehensive guidance on the new rules is needed well in advance of introduction.” 

Chartered accountants are also concerned about the departure of two major banks, Ulster Bank and KBC, from the Irish market.

“There is widespread support for creating a third pillar bank with many suggesting that role could be fulfilled by Permanent TSB, given the apparent lack of interest by foreign institutions in the Irish market. In addition, credit unions should be supported in their ambition to deepen their involvement as community-based lenders to small enterprises. 
 
“As well as supporting competition in business banking, the government should also recognise the importance of next-tier, alternative lenders,” said Keegan.

“The non-bank funding market in Ireland is far too small and requires state support to grow. The SBCI needs to continue to grow and develop partnerships to create competition that will benefit and support SMEs.” 

Keegan added: “All around us we can see the impacts of a property market in crisis, and the impact of taxation decisions on our competitiveness as a business environment. Many of the recommendations we are making today will, if adopted, have a real impact on people’s lives.” 

The Next Financial Year is available by emailing jill.farrelly@charteredaccountants.ie and there’s more detail here.