Over the past two years business in Ireland has been forced to reduce the price of their products and services in order to pass on the cost reductions that their respective customers and clients are demanding.
However, there remains a sector in Irish business that has failed to reduce the price of their service, namely Government. Many of the organisations under Government control have failed to bring down the cost of service. In fact a number of them have increased the charges to business and consumers over the past twelve months.
Why does Government persistently ignore that it too must undertake the crucial steps that private business has implemented to reduce their costs and improve their competitiveness? Private business owners should not have to accept an increase in state services while they are reducing the price of their respective products and services.
In my opinion Private Business in Ireland deserves greater respect than this and I feel it is disingenuous of Government not to undertake an internal review of productivity and overheads in order that it can find the means by which to affect internal cost reduction and thereby pass such improvements on to consumers by reducing the cost of Government controlled services.
Statistics released by ISME have highlighted that from 2002 to 2009 the Consumer Price Index has increased by 22% however the costs to business has increased over the same period as follows:
- – Electricity 67%
- – Gas 120%
- – Rates 42%
- – Water Charges 104%
- – Waste Charges 158%
- – Retail Rent 37%
- – Labour Costs 45%
- – Petrol 48%
- – Diesel 57%
Many of the increases in the above cost have come from increases in taxes imposed by Government.
The return to competitiveness that Irish business requires will falter further if Government continues to ignore the responsibility to undertake a review of their own business practices and cost structures. Irish business people have made many sacrifices to ensure their business continues to survive over the coming years therefore Government should respect its responsibilities and undertake the necessary review needed to bring about a reduction in charges to business.