Crime cost firms €1.48bn in 2010, up 10%

THE cost of crime to Irish business hit €1.48 billion in 2010 — up 10% on 2009.

ISME, the Irish Small & Medium Enterprises Association, said firms who took part in its national survey identified the recession as a key factor in the rising crime figures.

The association called for greater focus on this form of business crime, an area that has been neglected in comparison to other sectors of crime.

The survey attracted 714 responses and shows that in the last 12 months over one third of companies (34%), have been the target of criminal activity, up from 28% from the previous year.

The retail sector was the area of business most affected, it found.

The most common crime reported was “robbery” by 34% of respondents, followed by vandalism at 28%, with theft by outsiders and burglary each at 27%.

About two thirds of respondents (67%) reported they felt the general level of crime increased in the last 12 months, with 75% identifying the recession as the main reason for rising business crime.

Nearly half of those surveyed said that incidents of crime in their locality is “getting worse”, which was a sharp increase from the 30% in 2010.

On a regional basis the highest incidence of crime was reported in Dublin county 49%, followed by Munster 35%, Dublin city 34%, the rest of Leinster 31% and Connacht 16%.

The survey also found the SME sector has lost faith in the ability of the judicial system to protect them, with only 3% having faith in the judiciary.

“This figure has remained this low for a number of years with absolutely no effort forthcoming from our well paid judiciary to rectify the situation,” ISME said.

“Crime has a devastating impact on SMEs, eroding finances and causingmayhem, disruption and anxiety in the workplace,” said Mark Fielding, chief executive of ISME.

For firms struggling to survive crime can “tip the balance from success to failure,” he said.

Business failure deprives the community of goods and services and without successful SME businesses, “efforts at regeneration will flounder and employment and investment opportunities will suffer,” he said.