Up to 8,000 jobs at risk in struggling Galway firms

Date Published: {J}

By Declan Tierney

A grim warning has been issued that 8,000 jobs across Galway city and county could be lost if the overheads that businesses face on an annual basis are not reduced in the short term.

This follows claims that hundreds of businesses across the county are on the verge of closing down and are currently contemplating lay offs as overheads like commercial rates, water charges and VAT are forcing them to the wall.

And those involved in business have also made an impassioned plea for a reduction in employers’ PRSI and energy charges among others.

The call has come from a former Mayor of County Galway who is involved in the building and hotel trade and knows at first hand the difficulties currently being experienced by those in business.

Reductions in these charges, he argues, could then be passed on to the consumer in an effort to generate more spending.

Cllr Tom McHugh said that there had to be a more common sense approach to the current crisis – rather than just punishing both employers and consumers.

He is supported by Michael Coyle, CEO of Galway Chamber of Commerce who said that there were up to 4,000 businesses in the city who all could realistically shed one job because of the punishing rates they have to pay to Galway City Council.

“Wages to employees account for around 70% of employers’ costs and it stands to reason that jobs will be lost if overheads are not reduced in a meaningful way,” Mr. Coyle added.

For more, read this week’s Connacht Tribune.