After a slew of business closures in Cork, the CBA wants the Government to intervene

It’s been a week of sad news for Cork cafés and restaurants.
And with a number of hospitality businesses closing their doors, Cork Business Association (CBA) is calling for government intervention.
In response to the escalating challenges faced by small businesses, heightened by the legacy issues of the Covid-19 pandemic and the war in Ukraine, the CBA has held discussions with key government officials including Minister for Finance Michael McGrath and Minister for Trade and Employment Simon Coveney, to highlight the major issues facing businesses on Leeside.
The CBA Budget 2023 submission also relayed the issues including debt warehousing, increases in the minimum wage, security costs, staff accommodation, inflation, high interest rates, and upcoming challenges such as employer PRSI increases and mandatory pension contributions for employees.
But if you’re a business owner in dire straits this week, what can you do to keep the wolf from the door?
“Our advice is for businesses to engage with their creditors, especially Revenue, and see what can be done regarding repayment schedules,” said Dave O’Brien, finance spokesperson for CBA and Tax Partner with Quintas.
“You should not be forced into repayment periods that are not sustainable. Revenue will often accommodate longer repayment periods but do need to be nudged in the right direction.”
O’Brian emphasises the need for businesses to conduct a thorough solvency review, urging them to consider restructuring before resorting to closure, and points to the relevance of the relatively new SCARP scheme (Small Business Rescue Package):
“For instance, the SCARP scheme should be considered and will, we believe, become very relevant over the coming months and years.”

