Oireachtas Joint and Select Committees

Wednesday, 1 March 2023

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Challenges Facing Small and Medium Enterprises: Discussion

Mr. Neil McDonnell:

Although this issue is very significant for employers, many of them are not making a lot of noise about it. That is because there are thousands of businesses that are housing tens of thousands of workers. I am aware of one of our member companies that has almost 110 people housed outside Dublin. People are not making a lot of noise about it because it presents a significant tax and benefit in kind issue for employers and employees. The employers are providing the accommodation at a sub-market rent or are not charging rent. It is not just an issue for SMEs. I serve on the board of a school in Dublin. The school lost a teacher after one day because he secured a job offer in the midlands and took the job on the basis of the rent he would be paying. For most employees considering employment, available housing and the cost thereof is the most important consideration after salary or wage offer. That has nothing to do with the employer. We have a big concern that in the most recent recession a strategic or Government-level decision was taken that rental accommodation would be provided by institutional landlords. Those landlords are not interested in Ballaghaderreen or Lahinch. I am not saying it is not a problem in Dublin; it is a big problem there.