Dáil debates
Thursday, 20 November 2025
Haulage Costs for SMEs: Statements
7:55 am
Pádraig O'Sullivan (Cork North-Central, Fianna Fail)
SMEs are the lifeblood of Ireland's economy. They account for 99.8% of all businesses and employ over two thirds of our workforce. They are primarily the family-owned firms, rural hauliers and local manufacturers that keep our communities alive. Today they are under unprecedented strain. One of the most pressing issues they face is the rising cost of haulage. Haulage is not a luxury; it is the backbone of our supply chains. Every product we consume, from food to pharma, depends on road transport. For SMEs, the cost of moving goods has spiralled beyond control. Fuel prices remain volatile, insurance premiums are climbing and maintenance costs are squeezing margins tighter than ever. For many small operators, these costs are not just a challenge but an existential threat. The Irish Road Haulage Association has warned soaring insurance costs are forcing some rural SMEs to shut their doors. Add to this the challenge of delayed payments and cash flow uncertainty, and it is a perfect storm for small businesses trying to keep their wheels turning. These are not abstract figures; these are real businesses, real jobs and real communities at risk.
Government has taken steps, such as the €18 million licensed haulage support scheme and the diesel rebate scheme, and these have helped to some degree, but they are temporary, limited in scope and often underutilised. For example, only 45% of eligible operators claimed the diesel rebate last year. We have to ask why. It is because this process is complex and small operators simply do not have the administrative capacity to navigate it.
This is not just about cost but about competitiveness. When haulage costs rise, Irish SMEs lose ground to larger firms and international competitors. We risk hollowing out our domestic economy and leaving rural Ireland behind but there are things we can do. We need long-term solutions, not just short-term patches. We could target financial supports for SMEs and haulage, not just during crises but as part of an ongoing policy. These businesses need predictability, not uncertainty. Investment in green and fuel-efficient technologies can reduce costs and help us meet our climate targets. Let us make sustainability a cost-saving measure, not a burden. Insurance reform could tackle spiralling premiums that are crippling rural hauliers. This is a structural issue that demands structural change. Better engagement with SMEs would ensure they could access schemes like invoice financing and microloans to manage cash flow. Supports must be practical, not bureaucratic.
If we allow haulage costs to continue to rise unchecked, we risk undermining the businesses that sustain our communities. SMEs are resilient but resilience has its limits. Let us act decisively to keep Ireland's supply chain strong and our small businesses competitive. This is not just an economic issue but a social one. Every time a small haulier closes its doors, a community loses jobs, a family loses income and rural Ireland loses another piece of its fabric. We cannot allow that to happen.
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