IBEC - Newsroom

IBEC, the group that represents Irish business, today welcomed the Taxing Master's decision to reduce the level of legal fees sought in a recent case, which it said were grossly excessive. The group also said that many professional fees, but particularly legal fees, must fall as part of the major and necessary adjustment that is taking place right across the economy.

IBEC Director General Danny McCoy said: "In serious cases of excessive pricing, the deterrents must be substantial. Where fees are grossly overstated there is a case for all entitlements to be forfeited.

Speaking about business costs across the economy, Mr McCoy said: "If the economy is to return to sustainable growth, Ireland's cost base must come back into line with competitor economies. While significant strides have been made in getting business costs under control, there remain areas where costs are excessive.

"Irish companies continue to pay above the odds for many professional services and this is making it more difficult for them to survive the downturn. While the cost of some professional services has dropped considerably in the last 18 months, some costs remain at unsustainably high levels. The country is going through a painful but necessary period of economic adjustment and it is important that all sectors play their part."

Recent work by the National Competitiveness Council shows that Irish legal fees are exceptionally high by international standards, and have continued to rise even during the course of the recession.