The Family Business Network is calling on the Government to establish a dedicated taskforce to address the rising cost of doing business in Ireland.
Family-owned businesses employ around a million people in over 170,000 firms across the country.
With energy and manufacturing prices increasing by 17.4% and 2.8% respectively, the organisation has proposed the establishment of a taskforce that would work to identify the impact that the rising costs are having on Irish businesses.
Its remit would consist in identifying the different sectoral and regional challenges facing family firms across the country and recommending whole-of-Government policy remedies to tackle the price hikes of energy and raw materials.
John McGrane, Executive Director of the Family Business Network said rapidly rising costs of doing business in Ireland are putting thousands of jobs across the country at risk.
“We are calling on the Government to immediately establish a cross departmental business taskforce to develop a clear approach, informed by the views of all stakeholders, to address the spiralling cost of doing business in Ireland with a specific focus on energy and raw materials.
“From speaking with local firms across the country, the inflation that we are seeing is not a transitory phenomenon that many predicted it would be. As evidenced by recent figures, it seems that this inflation has not reached its peak and will likely put serious pressure on the public as well as businesses,” Mr McGrane said.
“While businesses will adapt to this, as they always do, our members believe that not enough is being done to support them while they make this transition to higher costs.
The Family Business Network is also calling for the extension of the tax warehousing scheme, a reduction on the VAT charged on electricity bills and a one-off grant for businesses to offset the cost of energy increases.
Allowing for a one-time scaled grant for businesses to offset the cost of energy increases, akin to the €200 household payment, would be an additional action that the Network advised the Government to take.
“We would urge the Government to also consider an extension of the tax warehousing scheme, which has proven to keep struggling businesses and the employment they provide alive during Covid-19. An extension to this scheme, coupled with targeted once-off tax relief and reduction on the VAT charged on electricity bills, would be the right measures to help our indigenous businesses adjust to the current cost of doing business crisis.”
The organisation believes that these targeted measures could be the difference needed to stave off widespread insolvency for businesses and resultant job losses.
The Family Business Network also urged Government officials to extend the tax warehousing scheme, a vital tool that has kept struggling businesses alive during the pandemic restrictions, and immediately reduce the VAT charged on electricity bills.