The government has been called upon to implement financial aid measures in the upcoming budget to bolster food and drink companies. This boost in support is a strategy aimed at enhancing sustainability and productivity amidst escalating costs within the industry. Food Drink Ireland (FDI), a representation group within Ibec for food and beverage firms, has voiced its concern about the damaging repercussions of the current high levels of costs and cost inflation – an effect of increased wages, energy prices and commodities price elevation – on investment decisions, margins, and competitiveness.
Paul Kelly, the director of FDI, insists that government should prioritise backing for innovation, capital investment and skills training to enhance cost competitiveness in both domestic and foreign markets. He warned that the financial survival of a number of low-earning food-based businesses is under threat without any substantial support from the government. He further indicated that accomplishing the 2030 emissions reduction goal for the sector would need significant government backing.
In its pre-budget report, the group proposed the initiation of a PRSI discount linked the value to of an organisation’s lower income employees. Their recommendation was also that the threshold for the highest rate of PRSI should stay above the national minimum wage.
The list of budget ambitions from the group also includes the introduction of a research and development tax credit for small and medium enterprises (SMEs) and an export credit insurance scheme subsidised by the government.
FDI has also suggested that the growing surplus of the €1.5 billion National Training Fund (NTF) should be utilised through the implementation of a nationwide training voucher programme for employers.
To support businesses in their efforts to decrease their carbon emissions, the group has proposed “a superior deductions capital grant for business investments in environmental and sustainability related capital investments”. The group is advocating for governmental backing for decarbonisation across numerous technologies in view of Ireland’s challenging climate targets.