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Small companies on 'survival
alert' as sterling falls further
Brendan Keenan
Irish
Independent
Tuesday, March 18, 2008
AS sterling fell to parity with the old Irish pound, the Small
Firms Association (SFA) warned that many small export companies
are struggling to survive.
Yesterday, the British pound fell further, to reach 78.2p to
the euro, despite high inflation figures which suggested the Bank
of England will find it difficult to cut interest rates much further.
The Irish pound converted into euro in 1999 at an entry level
of 78.76p. It is the first time that sterling has approached these
levels since.
The assistant director of the SFA, Avine McNally, warned of "devastating
effects" on exporters if sterling fell as low as 74p to the
euro, as some forecasters have suggested.
"It is unrealistic to expect small Irish companies to compete
at such a rate against sterling," McNally said.
(Article continues below)
There were already cases of firms moving to Britain or Northern
Ireland, or thinking of doing so, she added.
"One involves a company in Roscommon which exports all its
products to the UK and employs 24 people and is moving to England.
According to the owner, the loss of 24 jobs will be devastating
in one of the country's unemployment blackspots," she said.
Another company, 12 miles from the border, was operating almost
entirely in sterling and said it might as well be located across
the border.
She said specific measures would have to be taken to reduce employment
costs for the most vulnerable and exposed companies.
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INFOWARS:
BECAUSE THERE'S A WAR ON FOR YOUR MIND
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