Black economy poses ‘serious threat’

The black economy is posing a serious threat to jobs and businesses in Galway, as increasing numbers of people opt for ‘cheap’ products and services, the Chamber of Commerce has warned.

And a conference on the black market held in the city yesterday heard legit businesses here are finding it “next to impossible” to compete with illegal operators.

In the midst of a Revenue crackdown in the city on tax-dodging traders, tradespeople, retailers and landlords, the Chamber said that “there is always a loser somewhere”.

Chief Executive Michael Coyle said there is a lot of anecdotal evidence on a local and national scale of black marketeers ‘cashing in’ on the economic downturn.

“In terms of black market activity, we hear about services such as painting and decorating, builders, electrical work and so on, moreso than a specific commodity, such as cigarettes, where phenomenal numbers are being seized at ports. The numbers there are truly mind-boggling.

“There are huge risks associated with the black market, not least for the people using service. If somebody is up a ladder carrying out work on your house, and they’re not properly insured and have an accident, that will have serious implications for you.

“The job may be cheaper, but the risks are high, the quality of work may not be there, there’ll be no certification which will have an impact in terms of home insurance. The cheap job might be the dearest in the end.

“Legitimate businesses employ people, apprentices and so on. If the job is being done ‘under the counter’, it’s not a level playing field, and jobs are at risk,” said Mr Coyle.

He said there are massive Revenue implications from the black market trade.

Meanwhile, a panel discussion on the black market held in Galway yesterday by accountancy firm Grant Thornton heard the black market in Ireland costs the economy €1.5 billion each year.

Brendan Foster of Grant Thornton said: “Illicit trade is costing the Exchequer hundreds of millions of euro at a time when every cent of tax revenue is vital to the recovery of the country.

“We work closely with local businesses in Galway, some of whom are finding it next to impossible to compete against fraudulent goods being sold by organised crime gangs in the Western region.   These illegal actions must be stamped out to avoid further business closures and job losses,” said Mr Foster.

Galway West Fine Gael TD Seán Kyne told the conference that a report is to be published on black market trading in the coming weeks.

For more on this story, see the Galway City Tribune.