Oireachtas Joint and Select Committees

Tuesday, 22 October 2013

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Business Closures and Job Losses: Discussion with National Off-Licence Association

2:10 pm

Mr. Andrew Kinsella:

Clearly. Including myself, I employed around six people on a full-time and part-time basis. Between 2007 and 2012 my business was down between 35% and 40% but I managed to get some movement on my fixed upward-only lease from my landlord. Rates were the only cost that increased; Dún Laoghaire-Rathdown County Council increased my rates by 10%. Even if the figure had increased by €1,000 I would have had to sell €5,000 worth of wine in order to recoup that sum. I have reached the point at which I wonder whether anything will change.

I may no longer be a member of the industry, but between 3,500 and 5,000 people still work in the industry in small businesses. People have suggested that I lodge an appeal with the county council seeking a reduction in my rates bill, but it would cost me money to do so. When rates keep increasing, one must decide at some point whether it is worthwhile to continue in business. Unfortunately, instead of being a collector of VAT and a payer of taxes - both PRSI for staff and income tax - I ended up being unemployed. As a small business person I received no income because I had no rights in that regard. I could not draw any welfare payment. I found myself unemployed for the first time in 25 years. There has been one small benefit. I managed to secure a place on a Springboard course, which proved successful, because I am glad to say that I am back in employment. However, instead of contributing to the Exchequer I ended up, for the first time in 25 years, drawing from it to the value of a course that may have cost between €5,000 and €6,000. I came here today because I do not want to see other members of the association in the same situation. The following applies also to other sectors but particularly the drinks industry. It seems to me that a particular disadvantage has been built into the legislation that affects small business.

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