IBEC - Newsroom

IBEC, the group that represents Irish business, today welcomed the move by Government on bank recapitalisation.

IBEC Director General Turlough O’Sullivan said: "IBEC supports the government in its move to recapitalise the Irish banking system. An effective banking system is vital for business and consumers alike, and is an essential precondition to economic recovery.

"The move will have a positive impact on the ability of businesses to acquire finance and maintain ongoing business activity. Recapitalisation will boost confidence and sends a positive message to the domestic and international business community.

"Following the move by government to address the crisis in the public finances and recapitalise the banks, the focus must now turn to addressing the problems in the real economy and sustaining Ireland’s enterprise base. The government must now divert some of the resources away from the National Development Plan to help firms under pressure, so that the haemorrhage of job losses can be stemmed. Indications by the government that there will be a speedy and positive response to IBEC's call for a reduction in energy costs are particularly welcome.

"Existing funding provided for the National Development Plan should be reallocated to an emergency support programme for enterprise. Almost all other EU countries are currently providing support to help sustain enterprise. Failure by government here to do likewise puts Irish firms at a considerable disadvantage. The weakness of sterling has already meant that Irish enterprise is suffering more than firms elsewhere in Europe; doing nothing is simply no longer an option."