Local firms back government expenditure cuts

Almost all private and family owned businesses believe they can survive the recession, according to a new survey published today.

The KPMG 2009 Smart Moves survey of over 300 owners and managers of domestically owned firms also reveals that 50 per cent of such companies believe a reduction in Government expenditure is the single most important move that could be made to support local companies.

Over half of those surveyed believe the Government is taking the right measures to address economic difficulties with 43 per cent expressing a lack of confidence on the matter.

Close to 20 per cent of private and family owned companies said a wider range of employment and/or export supports should be introduced in the budget as the main priority.

Only 39 per cent of those surveyed believe Nama will help improve credit to non-construction related business, with 26 per cent stating that it won’t assist businesses access credit

Some 42 per cent of firms surveyed said they believe export growth will be the key driver of economic recovery.

‘The survey shows that privately and family owned business have real concerns about the impact of unsustainable public expenditure and its inevitable knock on effect on business in the form of higher taxes and other costs,” said, KPMG tax partner Mike Gaffney