Budget a step in the right direction

Three businessmen give their views on Budget 2015.

Bar and restaurant director

Corporation Tax Our businesses, especially the restaurants, are heavily dependent on corporate business, a lot of which comes from the large multinationals. While I felt it was unlikely to change in this budget, it was good to see no change was even hinted at, especially in light of international pressure. Cork people still talk about the effect on the city when Fords and Dunlops closed I feel anything that jeopardised the likes of Apple or the pharmaceutical industries would be equally disastrous for the area.

Vat Rate We have been fortunate to be in a sector where affirmative action by the Government in dropping the Vat rate to 9% on food sales has resulted in a growth in business. In Electric, for example, we saw food sales rise by 30% this year which has had a knock-on effect on our suppliers. Our main food suppliers are quality local butchers, dairy businesses, and local vegetable suppliers who have all been able to weather the recession. Wage rates in Electric and the restaurant industry generally have gone up over the last year and we have been fortunate as we never had to put staff on shortened hours or reduced their rates. The reduction in Vat enabled us to commit to pay above minimum wage to all permanent employees.

The bar trade stands in stark contrast to this and with previous increases in Vat and excise duty our bar trade has not grown at all this year, and many of our colleagues have seen their trade contract.

The 9% Vat also applies to hotels and has helped Cork hotels remain competitive with other destinations. Cork is thriving as a tourist destination and this is in no small part due to this.

Income Tax/USC We are dependent on the disposable income in our customers pockets. While I was disappointed not to see more significant tax cuts and reliefs, it is a step in the right direction. People need stability before confidence returns and spending increases in that regards this budget has delivered.

Green shoots are beginning to turn into tangible positives like jobs and wage increases. Confidence is returning and while people are still cautious, they are willing to spend on a quality offering. We expanded into Dublin this year and would not have done so unless we felt that the economy was on an upward curve. I hope we are right!

CEO, BAM

Its encouraging that after several years of austerity budgets we seem to be turning a corner in terms of the measures introduced in Budget 2015.

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Budget a step in the right direction