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NI BUSINESS WANTS CONSERVATIVE GOVERNMENT

Friday 14 May 2010

A significant majority of the local business community wants to see the Conservative Party form the next UK Government.

That is one of the key findings of the latest Goldblatt McGuigan Business Survey conducted exclusively for the Business Telegraph amongst a sample of 168 local businesses.

From the perspective of their business, 68% of respondents said they wanted to see a Conservative victory in the General Election while 26% are hoping to see Labour returned to power and just 6% want the Liberal Democrats to form the next Government

And when asked ‘What are the top 3 things you would like to see the new UK Government do to benefit your business?’, a reduction in Corporation Tax (41%); committing the banks to increase lending to business (37%) and reducing employers’ NIC contributions (34%) are at the top of the business sector’s wish list with reducing administrative red tape coming in at 24%.  Only 6% of those surveyed want the UK to be brought into the Euro-zone.

Moving closer to home, it would appear that the local political parties have still much to do in building confidence with the business community.  To the question ‘Irrespective of your personal voting intentions which of the local political parties do you think best understands the needs of business?’ the highest number of respondents (34%) answered ‘None’.  The Conservative and Unionist New Force  (UCUNF) fared best with 26% saying they understood business best, closely followed by the Democratic Unionist Party  (DUP).  The rest of the parties had a very low or zero showing.

In terms of what business feels our local politicians should be focusing on to get the Northern Ireland economy back on track, achieving a special Corporation Tax status for Northern Ireland is cited as the most important (35%).  Next, at 28%, is investing in major infrastructural and capital projects and third is making the public sector more efficient, followed closely in fourth and fifth place by encouraging banks to lend to SMEs (23%) and giving local businesses more financial support to grow (22%). 

Commenting on the findings of the Business Survey, Jackie Smith, Partner, Goldblatt McGuigan said –

“It surely comes as no surprise to see business calling on the new UK Government to reduce Corporation Tax and, given the lower rates enjoyed in the Republic of Ireland, on our local politicians to focus on the achievement of a special Corporation Tax status for Northern Ireland.  The call for a reduction in employers’ NIC contributions also highlights the strain felt across the business sector as the result of an increasing tax burden.  

Although the major banks are at pains to tell us that their lending levels are rising and that they are very much ready to ‘do business’, the findings of our survey appear to show that many businesses are still finding it difficult to get finance.  Both at a UK and a local NI level, encouraging the banks to lend more, particularly to the SME sector, must clearly be a priority for all politicians.

The dependence of the Northern Ireland economy on the Public Sector is well documented and has been a major topic during the election campaign. It is surely significant that 26% of businesses surveyed want to see local politicians making the Public Sector more efficient and that this is seen as an even higher priority than giving local businesses more financial support to develop and grow at 22%.  That said, the potential impact of increased Public Sector investment in major infrastructure and capital projects on the local economy is highly regarded with 28% of businesses citing that as a major catalyst to economic recovery” said Jackie Smith.

The Goldblatt McGuigan Business Survey was conducted 22^nd - 26^th April by email and follow-up telephone interview amongst a sample of 168 local businesses representing a cross section of private sector enterprises, large and small and spanning the manufacturing, service and construction sectors. The full findings of the Survey can be found at www.goldblattmcguigan.com

 What the businesses said

 Neil Templeton, Director of Templeton Robinson:

“It is essential that in order to help grow the economy that the new government ensures that the banks are committed to increase lending to businesses. A reduction in corporation tax would also help stimulate the economy and recognise the special status of Northern Ireland.”

Philip Woolsey, General Manager, Huhtamaki (Lurgan) Ltd.

“The government should be offering better incentives to businesses to encourage them to invest in new facilities and equipment that will have a positive impact on the local economy. In conjunction with this they should also be doing more to ensure that the banks are lending to small and medium sized enterprises to help them invest for the future.”

Peter Dixon, Group Chief Executive, Phoenix Energy Holdings:

“It is crucially important that the new UK government puts business at the top of its agenda to help stimulate the economy. In order to help business, the government should reduce employers National Insurance contributions as a matter of urgency.”

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