Godfrey's Gospel: Businesses are facing a tough year

ALL the tinsel and Christmas lights have been packed up and put away for another year. All the festive cartoons which adorned shop windows have also been scrubbed off to make way for whatever shop displays retailers decide on to celebrate the St Brigid’s day bank holiday on 1 February and Valentine’s day on 14 February. But no matter what they do or how optimistic a face they present to the public, the sad reality is that shop closures continue.

I happened to engage in conversation with a visitor to the town last week – he still describes himself as a Carlovian, even though he hasn’t lived here for more than 50 years. He told me of driving around the town before the Christmas lights were switched off for another year – ‘just to go down memory lane and remember what it used to be like,’ he said.

But he knew it was a completely different town from the one he had grown up in and returned to as a man in his early 20s. ‘There was a time when you knew you would meet someone you knew just walking the streets and looking into all the shop windows on Tullow Street or going into Reddy’s for a drink. But all that is now gone,’ he remarked.

We are less than a month into the new year, but already there have been further shop closures. Those in the business knew they were coming, but nevertheless it doesn’t lead to a positive outlook for the months to come.

Ask anyone involved in the retail trade and they will tell you the trick to a successful Christmas is being able to hold on to a few bob for as long as you can in January and February, because the cash register is fairly silent during those catch-your-breath months as people try to replenish their bank accounts after the usual Christmas splurge.

We all say we won’t do it, that there is no need to buy expensive gifts for everyone you know or overload the fridge with fancy foods only to do a stock take afterwards and throw out half of what you bought because it had gone out of date. But then we get ‘into the festive spirit’ and do the exact thing we said we wouldn’t do – hence the need to cut back in January and February.

But that leads to problems for the retailer, who still has bills to pay, taxes to reconcile and rents to honour. It must be almost impossible to balance the books and all too often nowadays we read of small businesses throwing in the towel because the amount of effort required to stay afloat isn’t worth it.

My friend reminded me of a time when it was ‘normal’ for people to just go for a walk around the town, take in the sights and meet and greet people. But not anymore. I had to agree and remarked I had been struck by the distinct lack of people on the streets early on new year’s eve.

Once upon a time – no matter what town you were in – people were rushing around doing a final bit of shopping for new year’s day before going home, dressing up and going back out on the streets again to ring in the new year.

I don’t know where everyone was this year, but the streets were practically deserted when I was out. Granted, I headed home shortly after 9pm and was still struck by the lack of people venturing out.

There was a time when most pubs and restaurants were packed by that time, some even putting up ‘full house’ signs. But according to a few in the licensed trade, that time has long ceased to exist. ‘House parties are the norm nowadays,’ I was told.

Again, I can understand why – it is cheaper to go to the off-license and buy a few bottles of wine or box of beer than go to a pub. Equally, the cost of dining out has become too expensive to factor in, along with taxi fares and babysitting to even contemplate venturing out on such nights.

But, sadly, the short-term gain of being able to enjoy ourselves, even if there is a risk of over-indulgence in alcohol consumption and the dangers that brings, also lead to a long-term loss where businesses are left with no option but to close their doors.

Let’s not fool yourselves into thinking that there will be a slowdown in business closures any time soon. There won’t. Businesses faced further cost increases at the start of this year, with the increase to the minimum wage and auto pension enrolment.

Before anyone jumps down my neck, let me be clear – I believe in people being paid a fair wage and also having something in place for when they retire so people can afford to stop working and actually enjoy their leisure time rather than endure constant boredom because they cannot afford to go anywhere or do anything.

So, the state pension increased by €10 a week at the start of the year. Big deal, it would hardly pay for a coffee and sandwich – something Fastway drivers were not able to afford when that company suddenly went out of business before Christmas.

Businesses have and will continue to close in Carlow and all around the country over the next year with spiralling costs front and centre as the reason why. Yet, last week, we were told exchequer returns ended the year on a high, up almost nine per cent – excluding that once-off windfall the government fought not to accept. Let’s hope we don’t kill the goose that lays the golden egg.