IBEC call for new state-backed investment bank
The Irish Business and Employers Confederation (IBEC) is calling for the creation of a new state-backed investment bank.
It's one of a number of suggestions contained in its Action Plan for Recovery, which was launched this afternoon.
IBEC are also calling for further reforms in the public sector along with measures to stimulate spending such as pension reforms, tax incentives for home renovations and a social welfare smart card that ensures child benefit is spent in Ireland.
Chief Economist with IBEC Fergal O'Brien says the proposed new bank would not necessarily be a new brand on the street but he says other countries with strong banking sectors have implemented the idea.
"A state backed fund is a very important part in terms of funding, business growth and expansion in those economies.
"What we're suggesting in Ireland is not that we need a new brand on the street or need new channels on the street. We need a fund that will be backed through a state investment fund, delivered through the existing banking channels.
The plan sets out a range of ideas from the business community, which aim to make a real difference to Ireland's recovery. They include job creations, restoring domestic demand and the delivery of world-class public services.
Speaking at the plan's launch, IBEC Director General Danny McCoy said: "The positive outcome from the recent EU summit should reduce Ireland's sovereign debt burden and improve sustainability, but to make real progress we need economic growth to take off. Exports are doing well, but we need all sectors of the economy to fire on all cylinders.
"This week’s announcement by Government on infrastructure projects is a step in the right direction but we need an ambitious growth strategy that covers the whole economy. Decisive action is needed to restore consumer spending, reform the labour market, and provide new funding streams to finance business start-ups and expansion. We are realists and none of the stand-alone actions we propose is a game changer. There is no simple, single solution: the Government and private sector need to take action on a wide range of fronts."
