ISME criticises Ireland’s ‘third-world infrastructure’

The cost and delivery of housing and infrastructure is having a profound impact on local small businesses, according to Irish Small and Medium Enterprise (ISME) chief executive Mark Fielding.

Addressing local businesspeople at the organisation's business network briefing session in the Stillorgan Park Hotel, Dublin today, Fielding outlined claimed businesses are now dealing with increased wage costs and inefficiencies.

“The high cost of housing and rents is driving wage demands on many SME employers and is a significant contributory factor to wage rate increases in Ireland at two and a half times the average European rates over the last number of years,” said Fielding

“As wages and salaries in SMEs represent 48% of value added in comparison to 8% for larger firms, the impact on wage pressures is more keenly felt by the sector.”

He claimed that Irish housing is among the most expensive in Europe and the country's infrastructure is among the worst, with the rollout both slow and costly.

“Even with improvements in the last number of years, Ireland still has a third world infrastructure, servicing a first world economy,” he said.

“Although the economy is continuing to grow rapidly, the infrastructure bottle-neck is causing real problems for Irish businesses and is threatening future economic growth prospects.

“The cost and quality of infrastructure is also negatively impacting on the business community, with many public projects over-priced and under performing, leading to expensive delays, with the costs constantly being picked up by the taxpayer.

“Even taking account of the increase in the investment cap to 5% of GNP, twice the EU average, current levels of funding are wholly inadequate.

“On optimistic assumptions, it will take a minimum of 10 years to close Ireland's infrastructure gap with core EU countries.”