The organisation representing family-owned businesses throughout Ireland has today called for the establishment of a new state agency for indigenous and family businesses which would facilitate the scaling up of the domestic economy at a time when Ireland’s FDI model faces increasing challenges.
The new state agency proposed by the Family Business Network would become the domestic equivalent of IDA Ireland and be solely focused on scaling-up the potential of family-owned and operated firms so they can become the main job creators and drivers of economic recovery.
In its pre-budget submission to the Department of Finance, the Family Business Network also urged Government to review the commercial rates system and replace it with a new scheme which does not unfairly discriminate against local family businesses in favour of large online retailers.
With a view to rebalancing the economy, family businesses have sought a reduction in Capital Gains Tax (CGT ) from 33% to 20% to increase investment in indigenous companies who contribute 80% of Ireland’s economic value and a temporary reduction in the Capital Acquisitions Tax (CAT ) rate to 20% for a period of two years.
The Family Business Network has also called on policymakers to priories the creation of a new Planning and Environment Court to rapidly speed up decision making in the planning process. This could be accompanied by the introduction of an electronic planning system.
Speaking at the publication of the pre-budget submission, John McGrane, Executive Director of the Family BusinessNetwork, said: “As Ireland begins to emerge from what has been one of the most difficult periods since the foundation of the State, we have a unique opportunity to reinvigorate and reorganise our economy .
“Now is the time to seize the opportunity to rebalance Ireland's economy by supporting indigenous and family businesses which can be found in every town and village in Ireland. Establishing a new state agency for indigenous firms would help reinvigorate the domestic economy and reduce Ireland’s dependence on multinationals. Through the creation of this state agency together with a more supportive policy environment, Irish family-owned businesses can do what they do best – innovate, invest and grow internationally.
“Taxation is another key policy lever to unlock the job creation potential of family firms. There is an ever-growing need to cut Capital Gains Tax in order to unlock greater levels of investment within the domestic economy and deliver a jobs-led recovery.
“Through the measures we're recommending today, family businesses can be the driving force of Ireland's recovery. But it is vital that recovery is not obstructed by a failure to address issues like planning reform or by tax increases that could hinder the success of local family firms who employ close to one million people in Ireland.”
Full details of the Family Business Network Budget 2022 Submission can be found at: https://www.fbnireland.ie/family-business-call-for-establishment-of-a-state-agency-for-indigenous-and-family-business/.