Dundalk TD "flabbergasted" by cost increases facing Louth businesses

Louth TD Peter Fitzpatrick has said he has been “flabbergasted by the cost increases” facing many businesses in Dundalk and County Louth while speaking to local business owners.

Speaking on a Dail Private Members bill concerning business costs facing Micro, Small, and Medium Enterprises (MSMEs) he cited the ability of businesses to innovate, create employment, and contribute to regional development, he said:

“These enterprises play a crucial role in fostering innovation, generating employment opportunities, and driving economic development. MSMEs often function as the catalysts for economic inclusivity, as they provide jobs to a significant portion of the population.”

MSMEs represent a substantial portion of Ireland's private sector, comprising 95% to 98% of all businesses, producing 50% of GDP, and generating 1.2 million jobs. 

However, Fitzpatrick highlighted the mounting pressures faced by MSMEs, including rising input costs such as energy, inflation, insurance, and labour expenses. 

Additionally, he said impending financial obligations, including the repayment of warehoused tax debt from Covid-19 restrictions, further threaten the viability of these businesses.

The impact of these challenges has been particularly felt in sectors like retail, hospitality, and construction, with a projection of 1,000 business insolvencies in the coming year. Fitzpatrick emphasised the detrimental effect of these closures on regional economies, especially in towns and villages reliant on tourism.

Speaking specifically about Louth and east Meath, Fitzpatrick stressed the importance of supporting the tourism sector, which he said plays a crucial role in driving economic activity. 

“The Government needs to recognise the importance of the tourism industry to every town and county. We need to support the delivery of enhanced tourism amenities in line with the objectives of the new National Development Plan 2021-2030,” he said.

He called for immediate measures to alleviate financial burdens on businesses, including reducing the VAT rate for food businesses in hospitality from 13.5% to 9% and cutting PRSI rates for struggling SMEs.

Drawing parallels with initiatives undertaken by the British Government to support SMEs, Fitzpatrick advocated for the establishment of a task force comprising micro and small businesses. This task force, chaired by a Cabinet Minister, would review government-controlled costs and seek to reduce the financial burdens imposed on MSMEs.