Kilcullen small business concerns raised with Enterprise minister

The need for a business association in Kilcullen was highlighted at a meeting of local business representatives with two government ministers in the town yesterday, writes Brian Byrne. The idea came up during the face to face with Minister at the Department of Enterprise Neale Richmond TD, and Minister at the Department of Agriculture Martin Heydon TD, held in Bardons. 

Paul Treacey of The River Cafe, who said such an association is required, noted that Gorey is an equivalent town that has ‘got it right’ in terms of small businesses. “They formed a group and developed it the way they wanted,” he said. Minister Richmond agreed that it was a good idea, noting that it would only cost around €5,000 to set it up, including a website.

Among a range of concerns discussed was the impact in a small town of the loss of any single business. Cllr Tracey O’Dwyer, who had arranged the meeting, said her own knowledge of the people around the table was that they represented enterprises which ‘need something done quickly’. “Kilcullen can’t afford to lose any more businesses,” she said, adding that there were business people in the town ‘hanging on by their nails’. “When a small town loses a business, it has a major impact on the community. They always support local clubs and organisations, for instance, and when one goes it can have a major impact on the town.”

Dawn Behan of Woodbine Books brought up the matter of retail units being repurposed to residential. “When that happens, they can never be returned to retail,” she said, emphasising the effect which this has on footfall for other retail businesses in the vicinity. Paul Treacey said six such conversions from retail to residential had taken place in Kilcullen in recent times, describing it as ‘one of the biggest problems’ other retail operators in the town face.

Paddy Nugent raised the issue of cut-price competition from large supermarket multiples to small local off-licence businesses. Telling the minister all he wanted was ‘a level playing pitch’, he said it can't be right when someone can buy a bottle of whiskey in a large supermarket for cheaper than he could buy in a wholesaler. He said the other off-licence operations in Kilcullen were not his competitors. “Our competitors are the Dunnes Stores and the Tescos, where you could buy a bottle of whiskey for €20 before Christmas, and I'm paying €28-30 for it.” 

Paul Lenehan of Firecastle and Hartes in Kildare and President of the Restaurants Association of Ireland, said the RAI were being notified of two to three closures a day nationally at the moment. "These were businesses that used to be viable, but not in the present situation." Paul Treacey said 2022 had been a good year after the restrictions of the pandemic, but 2023 'had dipped' and 2024 is also dipping. Eddie Cross said the balance of the scales 'is tipping the wrong way' and there would be more closures if it didn't go in the other direction quickly. Mary Fennin of the Clanard Court Hotel in Athy said costs had 'shot up', including areas the government has control of such as the increase in the VAT rate from 9pc to 13.5pc, "and all happened at the same time."

Earlier, much of the meeting had centred around employers PRSI and minimum wage for retail and VAT rates for hospitality. For both sectors, the increasing wage and PRSI costs on employing part-timers versus full-time employees is a major issue. The associated costs are becoming 'unsustainable', the ministers were told. Derek Walsh of Eurospar asked why the same minimum wage was applicable to part-timers and full-time staff? "That needs to be split," he said. "It's mad that somebody doing eight hours a week gets the same rate as someone doing a full-time week."

When Minister Richmond said this was the first time this had been raised directly with him, Paul Treacey said that was a symptom that the government is not in touch with the people on the ground. "Decisions are made on what the multinationals would be happy with, and not the small things that would make a big difference for people like us."

Martin Murphy of Murphy Design told the ministers that construction and building will 'fall off a cliff' in the next ten years because there are not enough young people coming through to skill the workforce. When Minister Richmond said there are currently 9,000 apprenticeships in the sector, Martin said he didn't see them. "They're not completing them, because they're not prepared to go through a couple of tough years, to work for the small money. They're saying, 'we want our €150 a day or we're gone'. Everyone in the industry that I talk to, they're struggling to get staff."

At the end of the meeting, Minister Richmond agreed the hospitality industry and smaller retail has been the most affected by increased costs. He said the Government is committed to providing 'targeted' supports for businesses most affected, "which we have identified as hospitality and part of retail." 

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