31/10/2006

FSB advances financial proposals for NI

Business body, the Federation of Small Businesses (FSB), has unveiled plans for a Northern Ireland finance package.

The FSB have called for the introduction of a Ten Year Rates Reinvestment Fund to offer every business in Northern Ireland a 50% rates reduction if they use the capital to employ more staff and expand their business.

FSB Policy Chairman Wilfred Mitchell said: "A firm foundation for the growth of our local economy and the basis of a Financial Package has to be built upon our indigenous small businesses which currently make 98% of all business in Northern Ireland.

"The FSB want to see these businesses expand, develop new products and markets and above all increase employment.

"A second crucial element for a Financial Package must be to attract more Foreign Direct Investment to Northern Ireland. Our proposals for a Rates Reinvestment Scheme will be beneficial to both developing indigenous businesses and FDI."

"The FSB recommends that a Rates Reinvestment Fund be implemented in the province for a ten year period which would offer qualifying businesses 50% rates relief.”

The FSB say that 50% rates relief over a ten year period would be conditional on savings being reinvested into businesses providing an incentive to expand or modernise to meet the economic challenges in the years ahead.

"With such a reduction in capital, businesses could reinvest the savings in employing more staff, investing in new equipment, marketing new products, expanding export opportunities or investing in Research and Development,” said Mr Mitchell.

The FSB is hoping to discuss the plan, which could lead to increased employment, with the Secretary of State and the local political parties.

Local political parties are due to meet the UK Chancellor Gordon Brown to discuss a financial package for Northern Ireland next week.

(SP/KMcA)

Related Northern Ireland News Stories
Click here for the latest headlines.

19 March 2020
Head Teachers Union Welcomes School Closures
The National Association of Head Teachers has welcomed the news that all schools in Northern Ireland will close from Friday.
23 March 2020
NI Hospice Chief In Call For Vital Supplies
The Northern Ireland Hospice is demanding intervention by the Northern Ireland Executive to ensure provision of vital supplies for palliative care services. Hospice chief Heather Weir said they are facing difficulties accessing protective equipment for both the Adult and Children's Hospice.
07 November 2002
Political crisis threatens confidence, investment and jobs
Three-quarters of Northern Ireland business leaders say the collapse of the Good Friday Agreement would destroy business confidence. The unexpected result was part of a BBC Northern Ireland Business Day Poll survey which also revealed that if current levels of violence escalate, half of local employers would postpone planned investment or cut jobs.
16 April 2010
Developers Should 'Prepare' For NAMA
Local property developers have been urged to prepare for impending demands for an asset-related business plan.
13 June 2006
1,000 jobs to be created in Belfast
Around 1,000 jobs are to be created in Belfast, it has been announced. Indian company, ICICI OneSource, one of the country's largest business processing outsourcing (BPO) firms, is to open a call centre in the city, creating over 1,000 jobs over the next two-years.