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BP SURVEY
Accountants
Derry Gray
BDO
I expect things to remain flat for the first
two quarters of 2012 but activity may
pick up in September. If that sets a tone,
then we may avoid a double dip. There
is still a large amount of fear among
consumers and it is fear that is really
holding back growth. I don’t think there
has been any significant improvement in
liquidity and credit conditions for SMEs.
If anything, it is the volume of
applications for funding that has
dropped off, as the expectation levels of
success have deteriorated. A key issue for
the future is competition. It is a concern
that in the medium-to-longer term there
may be a significant lack of choice of
potential funding institutions in the Irish
market.
Rebuilding confidence is the key to
recovery. In this regard, the following
initiatives would help:
The state-owned pillar banks should
provide more working capital to
businesses that have sustainable models
and robust business plans.
State development of key
infrastructure projects like hospitals,
where long-term savings and
efficiencies can be driven to ultimately
pay for the initial capital expenditure.
This investment will retain key
construction, project management and
architecture skills in Ireland.
Accelerate the sale and transfer of
Derry Gray, BDO
assets from Nama into appropriately
funded private or JV hands. By getting
our fixed asset and building stock into
new ownership, new and less costly
options will be made available for
business, which will act as a pump
primer for the economy.
Tackle public sector reform and
alleviate fears among the business
community that the disproportionate
cost of our public sector is a key barrier
to our future growth.
Ireland has many friends globally.
We need to have a government
department focused on overseas links
and connections to filter investments,
projects and activities linking Ireland
with its connections.
Tony Carey
Cooney Carey
I believe that we need to stop looking to
the past and encourage business to work
for the future. However, the economy’s
well-being is intrinsically linked to our
ability to export and attract foreign
business. Therefore our ability to direct
our future and avoid a double-dip
recession substantially depends on the
performance of the larger economies we
are linked with.
Over the past
year, the banks
have designed
policies and
refocused to
enable them to
lend, so there is
hope for the
coming year.
Lending
criteria are
rightly focusing
on cashflow
rather than
asset value. The
challenge to the
Tony Carey,
Cooney Carey
borrower is to prove to the bank that a
solid business exists, irrespective of
underperforming loans associated with
property investment. The challenge to
the bank is to restructure such loans to
enable it to lend to good businesses.
There is an urgent need for the
government to provide liquidity.
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