Business costs spiral ‘out of control’

BUSINESS costs are rising at three times the general rate of inflation and threatening jobs in homegrown and multinational companies, according to a major new survey from employers group IBEC.

The body said costs such as insurance, local authority rates and electricity were “spiralling out of control” and that the level of price hikes seen over the last two years could not be allowed to continue. The survey found general costs facing businesses, excluding wages and salaries, had risen by a total of 19% since 2002. The Consumer Price Index, which is the benchmark for measuring inflation, had jumped by just 5.9% over the same period.

“Increases of this scale are both indefensible and unsustainable,” said IBEC director of enterprise Brendan Butler. “Unless meaningful action is taken to address this imbalance, the ability of Irish business to compete will be seriously threatened and this will ultimately put jobs at risk,” he said.