Weather ‘will cost economy €300m’

RETAIL sales have plunged 38% because of the adverse weather conditions which will cost the economy up to €300 million.

On average there was almost 13% of staff absent from firms since the new year, while the estimated percentage of sales lost since January 1 is close to 19%.

These figures are contained in a survey conducted by employers group IBEC among 261 business owners. IBEC estimates that the total value of economic output lost last week was around €700m, with €500m lost in the services sector and €200m in the manufacturing sector.

IBEC head of transport, Pat Ivory said: “While major weather events will inevitably disrupt economic life, we need to be better prepared to meet these challenges.

“Both the flooding at the end of last year and the recent freezing weather highlight the urgent need to improve the co-operation between national and local government, and the various agencies involved.”

Mr Ivory said that while the worst of the bad weather seems to have passed for the moment, serious questions remain as to the ability of the state to cope had the forecast for more bad weather this week materialised. IBEC is calling on the Government to work with industry to devise a strategic response in advance of such situations occurring in the future.

“Many companies are already struggling to survive, and the bad weather has only added to the very serious difficulties they are in,” he added.

The Government’s response to the weather crisis was inadequate, according to 84% of respondents.

The survey also indicated that 22% of retailers experienced major difficulties in delivering goods to customers.

Retail Ireland director Torlach Denihan said the impact of the bad weather was particularly severe on non-food retailers and the new year sales were hugely disrupted. He said it is likely that some business will be clawed back, particularly if there is milder weather, but up to €90m in sales will never be recouped.

“This setback comes immediately after a very poor year when retail sales fell continuously and 30,000 retail jobs were lost.”

The Small Firms Association (SFA) have estimated that if half the private workforce lost just 30 minutes a day the result is 49,825 days lost and a lost productivity cost of just over €7m.

Assistant director of the SFA Avine McNally said another threat is in the exporting sector where significant delays are still expected over the coming days.