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Businesses plan price hikes to combat rising costs

Examiner

By Brian O’Mahony, Chief Business Correspondent
NEARLY half of Irish businesses plan to raise prices this year because of increasing costs.

A survey of businesses has found 44% intend increasing prices this year to counteract rising wage costs, and exorbitant insurance, energy and local authority charges.

This is a considerable rise in comparison with two years ago, when a similar survey found just 10% of companies planned to increase prices.

A nationwide Chambers Ireland/Irish Examiner SME Business Confidence Survey also found that seven out of 10 businesses said rising wages was their single biggest concern facing into 2006.

The survey found four out of every five companies believe they are being overcharged by banks and that there is no competition in the banking sector.

Only 14% of the small and medium-sized enterprises (SMEs) surveyed said banks gave good value.

Three out of four businesses expressed serious dissatisfaction with the levels of competition in banking. Just 4% said the financial institutions provided a decent service.

While half of the 601 companies surveyed admitted they considered switching their accounts to another bank last year, only 27% did so. Firms in Dublin were more likely to change - 33% did - compared to companies in the south-east, where just 17% switched.

Overall, businesses remain cautious about recruitment. Last year 60% reported no jobs increase. This year that figure shot up, as 67% expected they would neither increase nor shed jobs in 2006.

SMEs have called for more action from the Government to help stem the rising costs of running a business. Much of the rising costs were to, a greater or lesser extent, accounted for by the State, the businesses claimed. They called on the Government to tackle issues in the "sheltered sectors", in particular in areas such as energy, health and communications, where price rises have been the norm.

 

Businesses plan price hikes to combat rising costs

Examiner

By Brian O’Mahony, Chief Business Correspondent
NEARLY half of Irish businesses plan to raise prices this year because of increasing costs.

A survey of businesses has found 44% intend increasing prices this year to counteract rising wage costs, and exorbitant insurance, energy and local authority charges.

This is a considerable rise in comparison with two years ago, when a similar survey found just 10% of companies planned to increase prices.

A nationwide Chambers Ireland/Irish Examiner SME Business Confidence Survey also found that seven out of 10 businesses said rising wages was their single biggest concern facing into 2006.

The survey found four out of every five companies believe they are being overcharged by banks and that there is no competition in the banking sector.

Only 14% of the small and medium-sized enterprises (SMEs) surveyed said banks gave good value.

Three out of four businesses expressed serious dissatisfaction with the levels of competition in banking. Just 4% said the financial institutions provided a decent service.

While half of the 601 companies surveyed admitted they considered switching their accounts to another bank last year, only 27% did so. Firms in Dublin were more likely to change - 33% did - compared to companies in the south-east, where just 17% switched.

Overall, businesses remain cautious about recruitment. Last year 60% reported no jobs increase. This year that figure shot up, as 67% expected they would neither increase nor shed jobs in 2006.

SMEs have called for more action from the Government to help stem the rising costs of running a business. Much of the rising costs were to, a greater or lesser extent, accounted for by the State, the businesses claimed. They called on the Government to tackle issues in the "sheltered sectors", in particular in areas such as energy, health and communications, where price rises have been the norm.

 

Businesses plan price hikes to combat rising costs

Examiner

By Brian O’Mahony, Chief Business Correspondent
NEARLY half of Irish businesses plan to raise prices this year because of increasing costs.

A survey of businesses has found 44% intend increasing prices this year to counteract rising wage costs, and exorbitant insurance, energy and local authority charges.

This is a considerable rise in comparison with two years ago, when a similar survey found just 10% of companies planned to increase prices.

A nationwide Chambers Ireland/Irish Examiner SME Business Confidence Survey also found that seven out of 10 businesses said rising wages was their single biggest concern facing into 2006.

The survey found four out of every five companies believe they are being overcharged by banks and that there is no competition in the banking sector.

Only 14% of the small and medium-sized enterprises (SMEs) surveyed said banks gave good value.

Three out of four businesses expressed serious dissatisfaction with the levels of competition in banking. Just 4% said the financial institutions provided a decent service.

While half of the 601 companies surveyed admitted they considered switching their accounts to another bank last year, only 27% did so. Firms in Dublin were more likely to change - 33% did - compared to companies in the south-east, where just 17% switched.

Overall, businesses remain cautious about recruitment. Last year 60% reported no jobs increase. This year that figure shot up, as 67% expected they would neither increase nor shed jobs in 2006.

SMEs have called for more action from the Government to help stem the rising costs of running a business. Much of the rising costs were to, a greater or lesser extent, accounted for by the State, the businesses claimed. They called on the Government to tackle issues in the "sheltered sectors", in particular in areas such as energy, health and communications, where price rises have been the norm.

 

Businesses plan price hikes to combat rising costs

Examiner

By Brian O’Mahony, Chief Business Correspondent
NEARLY half of Irish businesses plan to raise prices this year because of increasing costs.

A survey of businesses has found 44% intend increasing prices this year to counteract rising wage costs, and exorbitant insurance, energy and local authority charges.

This is a considerable rise in comparison with two years ago, when a similar survey found just 10% of companies planned to increase prices.

A nationwide Chambers Ireland/Irish Examiner SME Business Confidence Survey also found that seven out of 10 businesses said rising wages was their single biggest concern facing into 2006.

The survey found four out of every five companies believe they are being overcharged by banks and that there is no competition in the banking sector.

Only 14% of the small and medium-sized enterprises (SMEs) surveyed said banks gave good value.

Three out of four businesses expressed serious dissatisfaction with the levels of competition in banking. Just 4% said the financial institutions provided a decent service.

While half of the 601 companies surveyed admitted they considered switching their accounts to another bank last year, only 27% did so. Firms in Dublin were more likely to change - 33% did - compared to companies in the south-east, where just 17% switched.

Overall, businesses remain cautious about recruitment. Last year 60% reported no jobs increase. This year that figure shot up, as 67% expected they would neither increase nor shed jobs in 2006.

SMEs have called for more action from the Government to help stem the rising costs of running a business. Much of the rising costs were to, a greater or lesser extent, accounted for by the State, the businesses claimed. They called on the Government to tackle issues in the "sheltered sectors", in particular in areas such as energy, health and communications, where price rises have been the norm.