Realism from the EU - Now time for the Gov't to Act

Posted by Keith Martin on April 15, 2009 at 01:13 PM

Nessa Childers

Great to see some real action from the EU today - they've removed restrictions on State Aid to small and medium enterprises in Ireland.

What that means in normal language is that the Government can give financial (or other) support to companies that are experiencing difficulties due to the economic downturn. Of course what that means is that there are no more excuses for Fianna Fáil as they continue to procrastinate on the matter!

Commissioner Kroes' announcement today is very welcome, and comes at a time when Government assistance to small and medium businesses is urgently needed. The Government must now act immediately to get assistance to the companies that need it.

Across the country, businesses are struggling for finance - and particularly for cash flow support. The temporary exemption for Ireland means the Government has no more excuses not to step in and provide that support where needed.

Many companies have been forced to lay off staff due to cash flow problems. The Government now has an opportunity to provide a solution, and it must do so immediately.

The Government also now has an opportunity to spend money to save jobs where needed. Each job lost in the current crisis costs the country at least €20,000 per year. An investment smaller than that can often save huge numbers of jobs. From today, the Government has no excuses about its hands being tied by EU regulations. The time to act is now, and I'm calling on the Tánaiste and Minister for Enterprise, Trade & Employment to get to work saving jobs immediately.

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