Brexit a ‘low priority’ as Irish firms battle rising costs

TWO-THIRDS of Irish businesses say costs are higher than before the recession, with four out of five firms stating costs have risen in the last year, according to a new survey by Vision-net, the business and credit analyst.

Almost 80pc of firms said they have seen increased wage costs in the last year, with more than seven out of 10 firms experiencing increased commercial insurance during that time.

The ‘Vision-net.ie Cost of Doing Business Survey’, carried out by Amarach Research, polled 250 Irish businesses across a broad range of sectors and found that more than half (51pc) of firms claim that rising costs are diverting funds away from company growth and investment initiatives.

“Most Irish businesses agree that Ireland is a more expensive place to do business today than it was before the crash,” said Christine Cullen, managing director of Vision-net.ie, who warned spiralling costs are contributing to Brexit complacency.

“Higher employee salaries and insurance premiums are squeezing cash flows, meaning most businesses must forego long-term investment,” she said.

“Against this backdrop, Brexit is low on businesses’ priority list. Only a minority feel it will have any effect on their business.

“This likely means few have contingency plans in place in case the UK departs the EU without a trade deal, or if new tariffs and regulations are introduced that negatively affect Irish exports.”

Just 37pc of respondents think Brexit will increase their costs with most citing currency volatility as the biggest issue.

Ms Cullen said Brexit is still “the great unknown”, adding that planning for a worst-case scenario will help to mitigate future risks and minimise the affect of a hard Brexit.