Mattie McGrath: Small Businesses 'Under Intense Pressure' as Closures Rise
Mattie McGrath spoke in the Dáil on 6 October 2022, warning that small businesses are under intense pressure and reporting local closures, including a family firm of 62 years due to close. He criticised the budget as offering very little meaningful support and urged action on energy chargers and rising costs.
Local business closures
McGrath said businesses in Clanmel town and rural villages are already closing and more are likely to follow. He described how hard it is to restart a business or attract a new one, and highlighted a 62-year-old family firm scheduled to close the following Saturday, calling the situation "unreal."
Budget measures and criticism
McGrath argued the recent budget provided very little for small businesses and criticised the failure to address chargers for gas and the ESB, saying more taxes have been piled on and only credits have been returned to some people. He listed pressures including rates, insurance costs and rising wages combined with higher prices, saying the situation is spiralling out of control.
Government response
The minister responded that there were 15 budget measures intended to help businesses, including a scheme of up to 10,000 euros a month to assist small businesses with energy costs. The minister said that support would be backdated to September and businesses should see payments by November, while also acknowledging a recent rise in business failures.
Consequences and outlook
Both speakers noted the human impact of business closures, with McGrath stressing the sadness of long-standing family businesses folding after decades. The minister cautioned that some businesses which survived the pandemic with government support are not viable now, and also pointed to sectors where firms are doing well but cannot get staff.
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Honest to you, you're Minister for Business and Industry and everything else. Businesses, small businesses especially, were never under as much pressure as they're under now. In Clanmel Town there's a number of them closed this week and more to go. Out rural villages as well. And they're just, it's so hard to restart the business or get a new business in. So we have a huge issue here. The budget is very little, very little for small businesses. And you need to do something with the chargers for the gas and ESB. You haven't done it, you've just piled down more taxes. You're giving back credits to people, giving back what they've paid. But there's one business, 62 years is there. Fabulous business. Closing next Saturday. And I don't want to mention any names. But it's just, it's unreal through the country. The pressure that business people are under. And you're talking here about this, that and the other. No meaningful supports for them. Rates, insurance costs, you name it. And then the cost of wages with the price increases as well. It's spiraling out of control. And they cannot continue in business. And it's so sad to see businesses that led into decades. They're six decades and they're going out of business. Thanks Deputy. There were actually 15 things in the budget last week that helped business. The biggest element of it being up to 10,000 euros a month. To help small businesses with their energy costs. And that will be backdated to September. And businesses will see that money by November. But it is true that we've seen an increase in business failures around the country in the last couple of weeks. I'm seeing it in my constituency in this city. And I know about businesses closing in Clam Mel as well from Gerrit O'Hearn. And that's really sad. Because a family business failing is almost like a debt in the family. People put their heart and soul and their lives into their business. And when it fails, that's a very sad thing when that happens. But we also need to be honest with people as well. Sometimes businesses aren't viable. There are lots of businesses that only got through the pandemic period because of the government's support. When that ended, they tried to make a go of it. And now they're not able to. And unfortunately, some of those businesses will close. But we're also at a time. At a time when many businesses are doing well and they can't get staff. We have to bear that in mind as well. We have to bear that in mind.
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