Galway Independent Column - 5 January 2011

The news that 85 jobs are lost in the hospitality sector in one go here in Galway this New Year does not bode well for an industry that has tried everything in its power to stave off this type of situation.
Job losses at any time of year are catastrophic for those involved but particularly in these difficult early January days when festive bills have to be paid. It’s all the more extraordinary then to read of a hotelier in Cork who cites last year as being his best ever and is quoted as saying that he doesn’t believe that the hotel sector is as bad as the media is making it out to be.

I’m not sure that the hospitality industry here in Galway ie hotels, restaurants, pubs, nightclubs would agree with him. This industry in particular depends very heavily on consumer spending and as such has been seriously compromised over the last couple of years. This combined with weather and water crises in the last trading period (Christmas being the peak trading period for the majority of the sector) has minimised any ‘cushion’ for the bleak early months of 2011.

Galway Chamber has consistently called for supports for SMEs and has urged support particularly for our smaller indigenous businesses. These are the backbone of our economy and are what makes us different. It is time that Government realised that this sector is not the ‘poor relation’ of multi national and other sectors, rather it is a crucial bedrock of our economy. More than ever now they need support to grow and prosper and to ensure job retention. We hear all the time about the economic recovery being tied into exports and that’s great, but we cannot forget the SME sector. It should also be remembered that this sector is the foundation of our tourism industry and as the world economy improves tourism will provide us with a serious sector to be serviced.

In the complete absence of reductions (or minimal reductions) in government controlled costs for small businesses ie Commercial Rates being one, these businesses will have to continue to cut the costs that are within their control and make no mistake, this will mean job losses. What we need now is Government action, task forces, incentives, basically Government attention to this situation. Small business needs access to credit…now…not promises or talk. The traditional retail, hospitality SME sector needs priority and above all, action. This may well include specifics like a special Commercial Rates incentive for start ups, straight employment grants, tax incentives or combinations of those and others.

On a different but related matter, it has also been reported that Minister for Housing Michael Finneran said in a recent interview that he ‘questions the need for 88 different housing authorities to support the delivery of housing services’. It appears that senior figures in his department are currently looking at this and will report in the coming weeks. This is as a result of the report of the Local Government Efficiency Review Group which said that certain departments in city and county councils should be merged to make cost savings. Galway Chamber has been urging local City and County Council to investigate the recommendations of this group to make cost savings across back office functions (not necessarily or just housing) which could then be used to alleviate the burden of Commercial Rates on business. One small step for Minister Finneran could be a major leap for local authorities as we know them.

Ath bhliain faoi shean is faoi mhaise do gach ball de Chumann Tráchtála na Gaillimhe