Over 80% of Derry & Donegal businesses will not be hiring in next year

A joint survey of over 130 North West businesses between the Chambers of Commerce in Derry and Letterkenny revealed serious challenges for companies in the region over key issues like Covid-19 and Brexit. Furmermore, over half of businesses - 58% - have said they envision making cuts this year to protect their business and already badly hit revenue streams.

The Chambers are calling on the governments in Stormont, Westminster and Dublin to work together with business to reach solutions around pandemic restrictions which would allow companies to continue trading, or to properly compensate them if their doors are forced shut or they experience a fall in trade.

72% of respondents meanwhile said Brexit would have a damaging effect in both the short and long term.They have several outstanding concerns including increased bureaucracy, barriers to trade, loss of business and customers, exchange rates fluctuations and supply chain interruptions.

In a joint statement, Paul Clancy, Chief Executive of Derry’s Chamber and Toni Forrester, Chief Executive, Letterkenny Chamber said: “The results of this survey make for sobering and deeply worrying reading. While the impact of Covid-19 has been clear for all to see, the evidence of its devastating impact on our entire regional economy has been laid bare. At a time when redundancies and job losses are unfortunately inevitable and rising, it is concerning but unsurprising that over 80% of firms will not be hiring over the next 12 months.

“Governments across these islands need to put in place the necessary schemes and supports which will shield one of Ireland’s historically most deprived regions at a time of growing unemployment.”

Over 80% of respondents said that without government support schemes introduced since March, it is likely that their businesses would have been lost during the pandemic, although even with these schemes, every business reported losing significant revenue. “New restrictions imposed in the North West recently on both sides of the border are starting to take effect and we have thankfully started to see a significant reduction in Covid-19 cases. However, this has come at a serious cost to our small businesses across the region. Going in and out of lockdown will be fatal for hundreds of businesses. Committed, comprehensive and sustained state support is needed - and needed immediately - to save jobs and protect livelihoods.”