Food and Drink Ireland (FDI), a prominent industry group representing food and drink firms under the Ibec umbrella, has issued a compelling call to the Government for enhanced financial supports aimed at bolstering productivity and sustainability within the sector. With escalating costs attributed to increased wages, energy expenses, and commodity prices, FDI emphasizes the urgent need for interventions to safeguard margins, competitiveness, and investment decisions.
Paul Kelly, Director of FDI, stressed the necessity for targeted governmental action, advocating specifically for bolstered capital investment, innovation, and skills development initiatives. These measures, he contends, are pivotal in enhancing cost competitiveness both domestically and in international markets.
Highlighting the critical juncture faced by many low-margin food businesses, Kelly warned that without direct support from the Government, their financial viability could be jeopardized. Moreover, he underscored the sector’s obligation to meet stringent 2030 emissions reduction targets, stressing the imperative of substantial governmental assistance in achieving these goals.
In its pre-budget submission, FDI outlined a comprehensive wishlist designed to alleviate pressures on the sector. This wishlist includes proposals for a PRSI rebate tied to lower-earning workers, aimed at maintaining a favorable PRSI entry threshold above the national minimum wage. Additionally, FDI advocates for the introduction of a research and development (R&D) tax credit tailored for SMEs, alongside the establishment of a State-supported export credit insurance scheme.
Furthermore, the industry group proposed harnessing the growing €1.5 billion surplus in the National Training Fund (NTF) to institute a national training voucher scheme for employers. This initiative is seen as pivotal in equipping firms with essential skills to navigate evolving market demands.
In alignment with environmental imperatives, FDI urged the implementation of a “super deduction” capital allowance to incentivize business investments in environmental and sustainability-focused capital projects. Moreover, it called for comprehensive state supports to facilitate decarbonization efforts across diverse technologies, aligning with Ireland’s ambitious climate objectives.
The concerted appeal from FDI underscores the critical role of governmental collaboration in fortifying the resilience and sustainability of Ireland’s vital food and drink industry amid a backdrop of mounting economic challenges and environmental responsibilities.
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