The Irish SME Association (ISME) has said the election of Donald Trump as US President means the policies adopted by the next government will be more consequential to businesses and workers.

The group would like to see the appointment of a junior minister with sole responsibility for the small and medium-sized enterprise sector due to the high number of SMEs in Ireland.

SMEs are defined as companies with annual turnover of less than €50m and fewer than 250 staff. There are now 272,500 SMEs in Ireland accounting for 52% of the workforce with close to 1.2m staff.

More generally, ISME is asking all political parties to promote the interests of SMEs, and the body would like to see the next government formally engage with employers via the Labour Employer Economic Forum (LEEF).

ISME also wants to see action on the housing and cost-of-living crises through the increase in supply of accommodation and measures to tackle consumer costs rather than government "forcing up" the minimum wage.

The group added that the government must focus on growing indigenous enterprise with corporation tax receipts in doubt once again under the Trump presidency,

ISME said Ireland must resource higher levels of infrastructure and housing spend, as well as address risks identified in our National Risk Assessment.

Conceding that State expenditure would have to be limited elsewhere, the group believes the private sector will assist if incentivised to do so.

Additionally, to make life in Ireland more affordable, ISME said that VAT and the cost of energy, insurance, legal services and labour must be reduced, and State services must be reformed to make them more efficient and effective for a larger population

"Outcomes for citizens will not improve without reform, no matter how much money we spend," the group stated.

Other proposals include bringing the marginal rate of income tax in line with or higher than the average industrial wage.

The point at which single workers start paying the 40% rate of income tax will increase to €44,000 in January while the average salary equated to around €50,000 in Q2.

"Our personal tax rates are not high, but the income at which workers pay the Top rate of tax is below the average industrial wage. We must stop removing workers from the tax net, we depend too much on the tiny number of high earners in the state; all workers must make some level of contribution," ISME said.

The organisation has also called for legal system reforms to clear the way for to infrastructure development, affordable housing, affordable family law, free speech, and timely commercial dispute resolution as well as continued foreign direct investment.

Citing the a €350bn shortfall in the social insurance fund, ISME proposed a 2% PRSI rate to be applied to all earnings up to €424 per week, and 6% on the balance, equating to a reduction in PRSI payments for full-time workers earning up to €848 per week.

ISME has also called for the National Training Fund to be spent on upskilling to help businesses and workers to scale, digitalise, decarbonise and export, and for greater tax incentives on electric vehicles.

“Now is the time to assert these important points on behalf of SMEs in Ireland. We could be heading into an interesting period with an incoming inward-looking administration in the United States," said Neil O'Donnell, CEO of ISME.

"This could well have implications for businesses of every description in Ireland, and we ask that the political parties work hard to create indigenous, independent strength in Ireland’s economy.

"To that end, as well as calling for a dedicated SME Minister of State, ISME has set out numerous suggestions that make both economic and business sense.”

Photo: Minister for Enterprise, Trade & Employment Peter Burke. (Pic: Sasko Lazarov/Rollingnews.ie)