Michael McNamara (Clare, Independent) | Oireachtas source

I thank Deputy Shanahan and all his colleagues in the Regional Group for giving us the opportunity to discuss this very important issue. In my constituency, as in his and those of all in that group, including Deputies Berry and Lowry, small businesses are under pressure, hospitality businesses in particular.

I will focus a little on County Clare. Businesses there are under pressure for two reasons, one of which is of the Government's making and one that is not. The Government has increased the costs for small business through increasing the national minimum wage, etc. It will say that is only fair to keep pace with inflation. Indeed, people have to be paid to keep pace with inflation. However, small businesses are not able to pass that on to consumers because there are fewer consumers. The majority of hotel rooms across north and west Clare, where most hospitality businesses are based, are filled with Ukrainians fleeing the situation in Ukraine. To be very clear, that is not the fault of Ukrainians or the Government, but the Government has to bear that in mind and has to introduce measures. The increase in the VAT rate from 9% to 13.5% effectively stripped out the margins of those hospitality businesses. Going from Bellharbour all the way down the coast to Ballynacally, such businesses are the major employers. Their margins are gone. I ask that the Government revisit the VAT issue, even if it is only for counties or parts of counties where such a large proportion of bed numbers are taken up by Ukrainians because those businesses are taking a huge hit.

I will also mention farming businesses. They might not be considered to be SMEs but they are small businesses. They are under significant pressure because, like the hospitality sector, their costs have risen dramatically in the past two years but the price they are getting for their product has not increased. It fell precipitously last year with regard to milk. It stabilised with regard to beef but it is not rising to match the cost of inputs. Again, their margins have gone. People cannot operate without profits.

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