‘THERE is nothing in it for businesses, as far as I can see,’ a shop and forecourt owner in Skibbereen said in response to the Finance Minister’s Budget25 speech in the Dáil.
BY JACKIE KEOGH AND KIERAN O'MAHONY
Paul Connolly of Spar Cork Road said the rise in the minimum wage by 80c from €12.70 to €13.50 will increase his annual wage bill by as much as €25,000.
There are 40 full-time and part-time staff employed at the busy retail store, deli and service station, and Paul said businesses will still struggle to meet wage increases, paid statutory sick days, and the pension auto-enrolment plan next September.
He described the offering of a €4,000 automatic refund for businesses that are paying less than €30,000 in rates, as ‘a pat on the head’. ‘Costs are through the roof,’ he said. ‘They are double, or three times what they are giving you back, so it doesn’t really help because costs are rising faster.’ He noted the increased carbon taxes will add 2c per litre to petrol and diesel, making Ireland’s fuel taxation the highest in the EU, with almost two-thirds of the cost being tax.
Meanwhile, the owner of The Favourite hair salon in Skibbereen, Grainne Collins, wasn’t overly impressed with the so-called ‘giveaway’ Budget.
‘Our costs with suppliers are rising every day so we will have no choice but to put up the cost in the salon,’ said Grainne. ‘The government increased the minimum wage but haven’t given any rent subsidies,’ she added.
‘On a personal level, the widening of the tax bands is welcome. As a mother, I welcome the extra child benefit payment, which is fantastic,’ said Grainne.
The businesswoman also welcomed plans to roll out €37m of free hormone replacement therapy for people who need it, as well as the provision of post-mastectomy products, and the expansion of IVF funding eligibility.
Chris Downey, the owner of SuperValu in Castletownbere, took an optimistic view of Budget 2025, saying: ‘The positive measures will put more money in consumers’ pockets and increase spending in the domestic economy in the run-up to Christmas.’
But he said businesses supports ‘do not go far enough to address the growing costs retailers face’.
The former president of the Restaurants Association of Ireland (RAI), Liam Edwards of Jim Edwards Bar & Restaurant in Kinsale said he was shocked that the hospitality vat rate did not come down.
‘A couple of weeks ago, we actually thought all the politicians were listening to us. It’s hard to believe,’ said Liam.
‘Restaurants are closing for a reason, as the margins have decreased significantly and the only thing the government could have done was to give us back the 9% – that was the only show in town.’
Caroline Murphy of West Cork Eggs, a mother of two teenage children said that, from a personal point of view, she welcomed the child benefit increase, but added it wasn’t a good Budget for business. ‘It was an electoral Budget. There was nothing in it, or support, for small businesses and it was very disappointing they didn’t reduce the vat rate for the hospitality industry,’ said Caroline.
Meanwhile, Paul Melody of the Lagoon Activity Centre in Rosscarbery also described it as an ‘election budget’ and noted it will cost his business an extra €3,500 due to the increase in minimum wage.
‘It’s great for people who rely on minimum wage but at the end of the day it’s affecting my bottom line,’ said Paul.
As a member of the Rosscarbery Waste Water Action Group, he welcomed the additional €1bn for Uisce Éireann and said he hopes that it will bring Rosscarbery up the pecking line in terms of getting works completed.
West Cork ICMSA chair and Timoleague farmer DJ Keohane said the Budget was ‘disappointing’. ‘Income volatility is the biggest challenge facing the farm sector – it is completely entwined with the question of the transition to low emissions farming and investment – and it is bluntly disappointing that the government did not deliver on its commitment contained in the original Programme for Government.’
Meanwhile, opposition and government politicians are naturally divided on Budget25. Independent Ireland leader and Cork South West TD Michael Collins said the Budget neglected the critical needs of struggling sectors, like hospitality.
‘They know over 600 restaurants have closed so far this year. Each closure represents jobs lost, businesses destroyed, and communities suffering. It’s disgraceful that the Government has turned a blind eye to this.’
West Cork Fine Gael Senator Tim Lombard claimed that the hospitality sector has not been ignored.
‘Small retailers and the hospitality sector will immediately benefit from the new €4,000 Power Up grant,’ Sen Lombard said. ‘This grant will make a significant difference for SMEs landing before Christmas.’
Fianna Fáil TD for Cork South West Christopher O’Sullivan said €1m funding for Uisce Éireann means ‘there can be no more excuses’ now. ‘We need an immediate upgrade to the wastewater treatment plant at Shannonvale,’ he said. ‘I also want this funding to be allocated to upgrade wastewater issues at Dunmanway and Rosscarbery.’
Fianna Fáil TD for Cork North West Michael Moynihan welcomed widening of access to supports for family carers.
But Labour Party candidate in Cork South West Evie Nevin said the 6% allocation for mental health in the €25.76bn health budget is ‘deeply frustrating’. She also expressed concern that the government has not extended free GP care beyond eight years of age, meaning children born when the scheme was introduced are now ‘ageing out of it.’
