With the Low Pay Commission’s recommendations to the Government due to be published his week, the Small Firms Association (SFA) has highlighted the danger an increase in minimum wage could pose to small businesses.
Acting Director of the SFA, Linda Barry stated that following on from the Brexit vote, “Exchange rate movements have already left Irish goods 19% more expensive in the British market than they were at the end of 2015.
“Now is the time for action to enhance the Irish business environment, not to create additional pressures for businesses.”
She went on to say that SFA members have identified wage inflation as the main threat to their businesses over the coming year.
“This is despite the fact that many small businesses plan to give pay increases, where – crucially – the performance of the business allows,” she noted.
The SFA’s position is that while there are many factors affecting the Irish economy that Ireland has little or no domestic control over, it is essential that the Government is proactive on those elements within its control.
Barry concluded, “It is vital that Ireland reacts proactively to the Brexit vote by boosting our competitive offering. No additional cost pressures should be placed on small businesses at a time when they are so vulnerable.”
© 2016 - Checkout Magazine by Jenny Whelan
