Cost falls not helping small businesses, says SFA

Date: 9th July 2010

Falling prices in a narrow range of goods in Ireland are good news for consumers but bad news for the country's small businesses.

This is the view of the Small Firms Association (SFA) following the news that the inflation figure for June 2010 was 0.9 per cent.

Avine McNally, director of the SFA, said that despite the figure being lower than that recorded in June last year, the country is not experiencing a "broadly based price deflation".

The expert said price falls in a "narrow range of goods" such as food, clothing and beverages, are good news for consumers but bad news for businesses.

"Small Irish businesses have taken harsh steps to regain cost-competitiveness, yet many costs remain outside their control as they are government influenced," he commented.

"When these costs are passed on to the rest of the economy, competitiveness and jobs are lost."

The expert said increases in public utility costs such as education, water, electricity and gas were the "most worrying" sign.

Posted by Jacob Williams