Small businesses will go under without substantial government support claims TD

“Many small businesses and local shops are going to close if they don’t get substantial government support to prevent soaring energy costs swallowing up their working capital,” according to Sligo-Leitrim-South Donegal TD, Marian Harkin.

“Electricity and gas bills are eating into their reserves,” Ms Harkins says, “without working capital, we all know, businesses will not survive.

“They need help right now. During the Covid crisis, the government was not found wanting when it came to supporting small businesses. Provision for a similar response needs to be made in the budget. In its most recent statement on the crisis, RGDATA quoted a retailer from Mayo who said the crisis is going to do more damage to small business than the pandemic ever did.”

Ms Harkin added that while these small shops and enterprises are run by resilient, resourceful people, there is only so much they can do on their own in the face of the immensity of the current challenges,

“For many businesses, energy and electricity account for the second biggest cost after staff. In some cases, these bills have increased by up to 400%. I have spoken to shopkeepers who are planning to take practical steps like opening an hour later and closing an hour earlier. They are investing in extra doors for their fridges and looking at all kinds of energy-saving devices, but these measures on their own are not enough."

Deputy Harkin said that the budget must include real and tangible support for small businesses, especially those heavily dependent on energy.

“They need direct financial support to sustain their working capital, they need grant aid towards the retrofitting of their premises with energy-saving technologies and they need incentives and funding to invest in alternative energy sources such as solar.

“More than anything else, the budget needs to alleviate the current cloud of uncertainty hanging over these businesses. They need to have the confidence and the wherewithal to do what it takes to tide them over. If they are left to depend on their own resources to survive, if they have to use up their working capital in day-to-day operations, they will go under. The budget needs to put in place a Covid-style support plan for small businesses," she said.