Ibec has called for a ‘decisive and immediate national response’ to the effect that Brexit has had on the sterling, which it says has left many key export businesses reeling.
Ibec’s warning has come as a new survey highlights the currency strain on exporters following the UK’s vote to leave the EU.
Its survey found that almost half (45%) of companies included in the research feel that a weakened sterling following the vote is the biggest threat to their business.
It also revealed that cheaper UK imports are seen as the biggest risk by one third (33%), and that only one in ten businesses have Brexit contingency plans in place.
Ibec Director of Policy Fergal O'Brien commented, “The Brexit strain is manifest and intense. Without urgent action to address competitive pressures, hundreds of millions of euro worth of exports and thousands of Irish jobs will be lost.
He added that, “This is now a full blown currency crisis. For exporters, the speed of sterling’s decline is on a par with the 1992 currency crisis. Irish exporters to the UK are already 15% less competitive and things could get much worse.”
As part of its call-to-action, Ibec says that an immediate Brexit response package should include an enterprise stabilisation and employment support fund available to the worst affected firms, a intense ongoing focus on cost competitiveness, a concerted drive to secure exemptions to EU, and a fully ‘Brexit-proofed’ Budget.
© 2016 - Checkout Magazine by Jenny Whelan