Sinéad Gibney

Overall sentiment: 0.25
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6. Deputy Sinéad Gibney asked the Minister for Enterprise, Tourism and Employment the steps his Department is taking to support SMEs with rising delivery and postage costs, and the impact of those increased costs on their competitiveness and ability to do business; and if he will make a statement on the matter. [13367/26]

Sentiment score: 0.25

As other Deputies have raised, SMEs are acutely feeling the cost of business right now. Many of them do not have the budget or level of business to be able to engage the courier services for the same rates as bigger businesses. Many rely on An Post but it has recently increased its rates and lowered the upper limit for parcels. What is the Department doing to support small businesses dealing with the cost of delivery services so they can get their products to the consumers who continue to support them?

Sentiment score: 0.34

This issue has been raised with me and I suggest that if the Government is looking for practical measures, this is one that it should explore. We have a landscape where many small businesses do not even have retail spaces any more and make the majority of their money from online orders which they then have to send via the post or by courier to their customers. The cost of doing this has gone through the roof and there is very little these businesses can do to mitigate it, except to put up their prices. I hear so much talk about Ireland's competitiveness and the need to support a competitive economy and yet this has a huge impact on the ability of small businesses to compete. This is at a time when we are encouraging businesses to explore further digitalisation. Local enterprise offices can only do so much and we need to see real ambition from the Department when it comes to addressing the daily struggles of small businesses in a meaningful way. I accept that this should be raised with An Post directly and with the other Department with oversight of that organisation. However, this is not the first time that I have raised an issue only to be told to go to another Minister but I would argue that this is what Cabinet is for. Ministers can liaise with each other at Cabinet and the Department of enterprise can connect with the Department of culture, communications and sport to ensure that these small businesses are not being penalised.

Sentiment score: 0.17

I appreciate the Minister of State's willingness to explore this issue. I would argue that there are two ways to tackle it. One is by looking at the retail costs of An Post and the other is by looking at the supports that the his Department can specifically offer. Small business owners who have contacted my office feel forgotten. Some are new, some have been in operation for decades but these businesses are not aiming to become big operations. They provide goods and services that people want. They provide employment and a huge benefit to their communities. A small business which employs people but never expands to become a franchise, a mid-cap or unicorn is still a public good, an economic good and an important part of Irish society and enterprise. All of the supports that the Department has for such businesses seem to lead back to a business model based on either making SMEs into big businesses or allowing them to struggle and fold. Delivery cost is such a nuts and bolts basic issue. Every business needs to be able to deliver its products to its customers. Recent changes have impacted the ability of SMEs to do that and compete effectively in our economy. This is something the Department should be keen to help to tackle and find solutions for.

Sentiment score: 0.23