ISME: Incoming Govt must take control costs for business

ISME has said that the new incoming Government must prioritise cost competitiveness after the latest inflation figures showed an annual rise of 1.7% to the end of January.

The Irish Small & Medium Enterprises warned that the steady rise in inflation would have a devastating affect on small businesses and had the potential to stymie any recovery, if not addressed.

ISME Chief Executive Mark Fielding said: "Cost competitiveness remains a serious issue for SMEs as, the level of cost increases impacting on businesses have consistently eclipsed the rate of inflation. What is most noticeable is the inexorable rise in Government-controlled costs, particularly in the areas of energy, waste, transport, utilities and local charges.

"The small business sector does not have the price-setting ability to increase revenues to compensate for State-influenced costs, which undermine their competitiveness and lead to job losses and company closures.

"It is vitally important that the dramatic increases in production costs, witnessed over the last number of years, including Government-controlled costs, are brought under control or else we run the risk of continuing to price ourselves out of the market."