As the debate on Ireland’s economic recession continues, the Irish Small and Medium Enterprises Association (ISME) warned this week that high levels of black market activity, as currently being witnessed by some of its members, will undermine legitimate businesses. The association also said that employment and livelihoods are under threat as a result.
According to the ISME, several companies that have complained to the association say that they are being undercut by rogue operators who are not concerned about the prospect of recession. The ISME said a conservative estimate on the real cost of such activities is anywhere between 7.5 per cent to 15.8 per cent of GNP. That is an enormous amount when translated to tax. “The amount of unpaid taxes alone is conservatively estimated at €3.54bn, which could be used to substantially reverse the current exchequer revenue shortfall,” ISME chief executive Mark Fielding is quoted as saying.
Metro Éireann believes that this revelation from the ISME is very timely, considering the fact that thousands of jobs are directly under threat due to the present economic dispensation in the country. Already, thousands of people have lost their jobs since the beginning of this year, and further losses look likely to follow.
However, a lot could have been done to prevent the black market from becoming a threat to the nation’s economy. Over the past several years, many observers have strongly highlighted the issue and its dangerous consequences. Unfortunately, nothing was done to tackle it by the authorities.
That is not to say, however, that it is too late for the authorities to intervene. We strongly believe that the rising level of black market activity as reported by the ISME can be reduced to enable the economy to continue to function. And perhaps this could even help us to avert the much talked-about economic downturn in Ireland.
