THE CEO OF the Irish Stock Exchange (ISE) has accused the Government of prioritising multinationals and start-ups, and ignoring the needs of mid-size companies.
ISE Chief Executive Deirdre Somers was speaking at the Funding for Growth conference in Dublin, where she said that Ireland needs “a more balanced enterprise policy” to enable the growth of a strong enterprise sector.
Developing more home-grown success stories, which are capable of earning money abroad and spending it on creating jobs at home, can make a major and sustainable contribution to the economic and social life of this country.
She added that having a low corporation tax rate will not itself deliver successful mid-market companies.
According to Somers, the Irish Stock Exchange is ready to help mid-market companies – those with annual turnover of more than €20m and profits of more than €3m – access the funding they need through the public equity and debt markets.
However, she said that the Government’s current tax policy is “making it unattractive” for companies to do so.
While she said the success of the Government enabling the introduction of REITs into Ireland is a great example of how collaboration can bring investment, she added that a similar approach now needs to be taken to resolving the funding challenges of private, mid-market companies.
Somers also said that a “profound rethink” of how we tax capital, share options and exits is necessary. She said that the Government should stop taxing investment in Ireland and Irish companies by charging stamp duty on investors who buy share.
The anticipated exit from the Troika bailout programme in the coming weeks “will further enhance Ireland’s credentials as a favourable home for investment,” she concluded.
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