A new survey by Isme, the Irish Small and Medium Enterprises Association, reveals overall satisfaction with the Government's performance is at its highest level since the survey commenced in 2012.
However, the group’s latest Government Satisfaction Survey also suggests relatively high business costs and the Government’s dealings with the banks remain the chief sources of concern within the business community here.
Isme’s survey, which was based on the responses of 956 SMEs in the third week of December, showed overall satisfaction with the Coalition jumped nine points from +2 to +11, with the larger enterprises submitting the most positive satisfaction ratings.
The survey asks respondents four specific questions on the Government’s performance in dealing with jobs, banking, business costs and its handling of the economy, from which an overall performance metric is derived.
There was a large increase in the satisfaction rating association with the Government’s handling of the jobs situation, with the rating rising from +9 to +22, the highest score on record.
“This reflects the slow but steady decline in numbers on the live register and the positive press announcements,” the survey noted.
SMEs also expressed satisfaction with the Government's handling of the economy with sub-index jumping to +18 with Irish economy forecast to grow by up to 7 per cent this year, the highest rate in Europe.
The worst performing indicator was business costs, which fell to -52 from -47, and which continues to be the highest rated reason for dissatisfaction with the current administration.
The association is concerned that Ireland is rapidly losing its competitive edge and we have continuously called on Government to conduct a review of all business costs to bring them into line with our main export competitors," it said.
"Business costs must be reduced and Government must focus on this area if we are to regain our competitiveness," Isme boss Mark Fielding said
Approval of the Government’s handling of the banking sector also deteriorated slightly.
The survey noted that while SME access to finance has improved, an increase in loan application declines had been recorded in recent months.
Mr Fielding said: “External factors continue to assist the economy and the growth rate reflects this. Favourable exchange rate with and growth in our major export countries and low oil prices have given us a boost as we come out of the recession.”
“While we can benefit from these factors, they are completely outside of our control. The factors within our control, business costs and access to finance, need much more work by Government and, if not addressed, will cause untold damage as the economic cycle unfolds”.
