SMALL COMPANIES

Sir, - To have a Senior Minister describe me as living in "Cloud Cuckoo Land", an employer of "slave labour" and running an "…

Sir, - To have a Senior Minister describe me as living in "Cloud Cuckoo Land", an employer of "slave labour" and running an "inefficient business" over the airwaves (Morning Ireland, January 30th) to some hundreds of thousands of listeners, including my wife and family and the "slaves" I employ, is unpleasant, even more so because it is inaccurate and I was not afforded the right of reply.

I do not live in Cloud Cuckoo Land, I live in a very real land do the vast majority of competitive business owners in this country. The "slaves" in my business (all 60 of them) received nearly £1 million in wages and salaries. The factory operatives ranging in ages from 17 to 67, earn approximately £11,000 each, £220 per week.

The company made a net profit last year of £76,000, a figure I am not proud of, but a number of factors contributed to it not being a good year. This year, hopefully, will be better but it will be difficult to reach even the four per cent net (£120,000) which is the average for an Irish SME.

If I were to increase my wages to say the CSO average wage, the 23 factory operatives would cost an additional £70,000 and reduce the profit to £50,000. Not an acceptable figure to provide for reinvestment contingencies, etc, and certainly not impressive to a bank whom I paid £70,000 plus in interest last year.

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I am significantly larger than most small companies, about three times larger than a typical ISME member but you could say that pro rata I am typical. It is an incontrovertible fact that myself and other members have severe difficulties in recruiting staff, particularly mature males at salaries which are in the region of £10-£11,000. It is Cloud Cuckoo Land and illogical to deny this fact.

Incidentally the majority of my "slaves" have worked with me for over five years. Six of them for over 20 years. Do you believe they live in Cloud Cuckoo Land as well? Get real Minister! - Yours, etc.,

Irish Fencing and

Railings Ltd,

Kylemore Park South,

Dublin 1.