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Dublin: 12 °C Wednesday 8 July, 2020
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Foreign multinationals are thriving while Irish businesses go to the wall - ISME

The small business association has lashed out against Government “complacency”.

Image: Laura Hutton/Photocall Ireland

THE IRISH SMALL and Medium Enterprises Association has warned that credit-starved Irish companies are dying out while multinationals thrive in the current business environment.

Speaking after the release of inflation figures by the Central Statistics Office today, ISME warned that the Government’s “complacent stance on SME bank credit and the uncompetitive high business costs being borne by Irish SMEs are costing jobs”.

ISME chief executive Mark Fielding said “The Government’s attempts to generate an export-led recovery are being jeopardised by a lack of bank credit and the high business costs that they impose.”

While multinationals, which are not dependent on local banks, thrive, the domestic economy is being strangled by a lack of bank credit.

Competitiveness 

He also warned that Ireland is losing ground in the competitiveness battle against our closest rivals.

“Irish businesses continue to pay more than their international competitors for electricity, gas, transport, rates etc. As long as this situation continues recovery will remain slow and indigenous businesses will struggle to expand.”

Fielding argued that the Government should step in to drive down costs for SME owners, with a particular focus on defusing demands for higher wages.

“Most SME owner-managers cannot afford to give wage increases at this point and continued wage pressure will result in them taking a cautious approach to recruitment.”

Fielding added that that this morning’s low inflation figures mask “steadily increasing business costs being borne by SMEs”.

Read: SMEs call for Budget 2015 to focus on competitiveness>

Read: Consumers still ‘afraid to spend’ in climate of uncertainty>

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About the author:

Jack Horgan-Jones

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