Four small firms on what they want from a new Government
by Gail Conway, https://www.facebook.com/rtenews/ · RTE.ieIrish businesses are feeling the pressure of increased labour, supply and energy costs and the upcoming auto enrolment for pensions for employees.
But these are not the only issues they're experiencing or want to talk to their political representatives about.
With the election just two weeks away some small and medium-sized business owners from around the country have been sharing with RTÉ News what they want from new and returning candidates.
Celtic Roots Studio
In the heart of the picturesque village of Ballinahown in Co Westmeath, that recently won gold at the Entente Florale in Hungary and Ireland’s Tidiest Village in the Tidy Towns competition, lies Helen Conneely’s Celtic Roots studio.
Ms Conneely is a celtic sculptress and feminine maker, who’s medium of expression is the numinous bog oak.
The wood she works with is sourced from Lough Boora, County Offaly.
She considers her business so small that she describes it as a micro business.
Despite using recycled materials like the bog oak that she carves, she is constantly striving for more sustainability within her business practices.
Currently, Ms Conneely is looking at greening her business and even though the carving work is a low energy cost she would like to switch her diesel van to Hydrotreated Vegetable Oil (HVO).
From her research, switching diesel to a HVO tank would be more cost effective for her than buying an electric van.
She believes the Government’s Power Up Grant to assist SME’s with energy costs has proven to be a simple and straightforward process.
But she would like to see another round of the grant that is linked to energy saving.
She thinks the platform and methodology could also be used to measure greening initiatives implemented by companies.
"If there is another round I would be asking for it to be linked to you actually submitting your bills to show you’ve actually done green stuff," she said.
"The Power Up Grant is a really good way of giving you the initial money to start, this year its for helping you with the costs of your business."
"But I see the process has been very straightforward and it would be a really good way of giving very small businesses money towards greening their business."
"In return businesses would show the inputs and the investments they've put in rather than the company trying to do their greening process from their own proceeds, which I think people are finding it really hard to do."
Bua Collective
The Irish Physical Activity Alliance (IPAA), representing 891 gyms and fitness facilities across the country, has said it is perplexed by Fine Gael's recent announcement proposing an increase in VAT on gym memberships from 9% to 11%
It said it appreciate the party’s commitment to a tax rebate on gym memberships but the proposed VAT hike would negate any benefits by forcing gyms to raise their prices, making them less accessible to the public.
It also said such an increase demonstrates a lack of understanding of the current health crisis, and is at odds with the government’s own healthcare policies, including the Healthy Ireland Strategic Initiative.
The owner of the Bua Collective, Darina Dunne, runs five gyms in Kildare, Dublin and Louth, and is also Chair of the IPAA.
According to Ms Dunne most gyms are run by small, independent, family owned occupiers who are struggling and not making huge profit, yet they provide a huge service to the community.
"This 2% price increase we will have to push on to our members and ultimately that will mean going to the gym is more expensive," she said.
"So, we're creating barriers for people to become fit and healthy, it seems insane."
"Individuals during the cost-of-living crisis, when you're coming to the end of a month and they're trying to determine what to spend money on, people choose to give up their fitness and for their long term health it really is tragic."
"It's not a pretty picture for the health of the country and it really shows a lack of understanding from Fine Gael of the health crisis with an ageing population we face."
The National Physical Activity Guidelines recommend at least 150 minutes of cardiovascular exercise and two resistance training sessions weekly.
With an ageing population set to place even greater demands on a struggling healthcare system, Ms Dunne believes a fit and healthy population is one way to ease the burden on the HSE and delay people entering nursing homes.
"The best markers in terms of your long-term health, your cardiovascular fitness and your muscular strength, the thing that keeps you out of a nursing home and determines your quality of life, is how fit you are," she said.
Ms Dunne wants more support for industry from Government, considering the role she says it plays in the health of the nation and keeping people physically active.
"More people attend gyms than play football, rugby and gaelic games combined, but yet we're given no support," she added.
"2%, although it may not seem like a huge increase for gym owners, it could be their wages."
"There very few gym owners making significant profits."
Keane’s Florist with Niamh
Keane’s Florist with Niamh, a flower shop in Terryland Retail Business Park in Galway City, employs two full-time and four part time employees.
The owner Niamh Crowe describes the ongoing rise in the cost base of doing business as being "of elemental concern."
She would like to see more supports in line with growing costs and she is worried the closures of small businesses could change the landscape in Irish towns and villages.
Ms Crowe says despite inflation slowing down, previous cost increases seem to be baked in and there is no respite in sight.
"Auto-enrolment is a good and necessary thing but it is another cost to bear," she said.
"For small retail operations there is only so much cost that can be passed on to the consumer before you price yourself out of customers and eventually out of business."
"It feels like we’re constantly running uphill and if the reward for the stress and struggle of running a business is not there, well there comes a time when you have to consider whether or not it is worthwhile continuing."
Ms Crowe believes small retail businesses are the backbone of Irish towns and villages.
"If they start folding in increasing numbers, we could well end up with town centres like they have in England which are dominated by chain stores and franchises and often lack any personality and vibrancy."
The Lunch Bag / Fresh Today
Fresh Today produces and delivers meals for the DEIS school market and The Lunch Bag provides to non DEIS schools.
Between them they deliver 150,000 children’s lunches every day to primary schools across the country.
Raymond Nangle who is CEO of both companies believes the outgoing government has done well in their commitment to rolling out free school meals to all primary schools and that every primary school in the country should have free meals by 2025.
However, the follow on from this will be free meals for all secondary school children and he is concerned the scheme for secondary schools is outdated and needs to be brought in line with primary schools.
He said there is a disparity in the cost between what’s given to a primary school child and a secondary school child, adding that the rate for secondary school meals is based on a rate that dates back to 2003.
"Currently, we're given €3.20 to feed a primary school kid versus we're given €2.50 to feed a secondary school kid," he said.
"As you can imagine, a secondary school kid takes a lot more feeding than a primary school kid."
"The continuation of that scheme into the secondary school and then a realignment of the rate for the secondary school is the biggest challenge that we would face as a company."
The main problem the school meals market is facing is that it’s not linked to the CPI or indexed in any manner, according to Mr Nangle.
He said the main increase in the costs that they have are Government-imposed costs, including increased sick leave days and auto enrolment in relation to pensions.
"All of those benefits for employees land directly on to us as a cost, but yet we still have a fixed cost from the Government in relation to the price of the school meal, which is a challenge in itself," he said.
"Then with it not linked or indexed in any manner means each year we're at the whim of a minister making a decision in relation to try to increase it."
New nutritional guidelines and new rates were introduced for the hot school meals for primary schools in recent years.
Mr Nangle wants to see the same done for secondary schools.
"Because we're a service industry directly to the government and we've fixed costs that we have from the Government, we need those fixed costs to be linked to inflation or to something that it can gather pace with it," he concluded.