Competiveness BS



slumdog1971

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Feb 24, 2009
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616
Possibly but the Government get nearly 75% of the price of a litre.
The Gov put 4c on a litre yet , remarkably, the price per litre goes up by 10c.

It's an absolute disgrace. If you look at the recent survery where Ireland is still 31% more expensive than other Euro countries you have to infer that we are still being ripped off by every shopkeeper.

Costs are reducing to business yet price to the consumer is staying stubbornly high. Why is that ?

I am not anti business but we need a national effort (Pardon the cliche) to get out of this mess. Not just a national effort by some and the rip off to continue for others.

That's generally what happens in this hole of a country. Workers suffer whilst the wealthy can move their wealth without fear of tax or sanction. Disgrace
 

hammer

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They might put 4cent duty on a litre. Then the garage adds its mark up. Then as far as I`m aware another 21% vat is added.

What costs are reducing to business ?
 

slumdog1971

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They might put 4cent duty on a litre. Then the garage adds its mark up. Then as far as I`m aware another 21% vat is added.

What costs are reducing to business ?

Labour costs are reducing.

Electricity costs have come down over the past two years. They might have gone up again last year but if you look over the past three years they have reduced.

Rent is stubbornly high but it has been re-negiogated in some areas

Insurance is high but this is a part of the thievery nature of Irish business.

If we were to be brutally honest, the real attacks on costs have focussed on wages becasue of some idiotic and stupid belief that Ireland will follow the norm. ie if you reduce what people can pay the the price will fall. Preserving margins and profits is the holy mantra of Irish business. And the consumer can suffer.
 

hammer

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Jul 6, 2009
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58,180
I`m making allowances as you are not in business :)

Wages were only cut in businesses where sales & profit was down. You do not go to staff and cut their pay if everything is rosy. You want to keep good staff. They are the BUSINESS.

When you say "thievery" what do you mean. Insurance Companies overcharging maybe ?

Most irish people couldn`t tell you the difference between mark up & margin. They give out when say a pharmacy make 25% marhin and yet would have no problem paying 100% + mark ups on clothes, toys etc.........and margins of near 80% on coffee.

Labour costs are reducing where you are in a position to employ new staff. There are not many businesses in that situation :(
 

deirdrem

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Nov 1, 2009
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920
the state controls the main blockages to competitiveness
1 rates
2 energy costs
3 bereaucracy
4 prices set for cities i.e taxi fares
5 minimum wage need to be renegotiated
The main cause of increasing wages over the last 10 years has been the cost of housing. When people doing ordinary jobs needed to fund a €400,000 mortgage (and upwards), they needed MUCH higher wages to do so.
Everything else followed on from that, and the unfortunate fact is that the mortgages people took out over the past 10 years have not gone away - they are still being paid for, and will be for many years to come.
As for the minimum wage needing to be renegotiated, did you not notice that it has been decreased?
Now tell me how anyone is going to pay their mortgage while earning the minimum wage?
 

Akrasia

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Joined
Oct 6, 2006
Messages
1,128
Labour costs are reducing.

Electricity costs have come down over the past two years. They might have gone up again last year but if you look over the past three years they have reduced.

Rent is stubbornly high but it has been re-negiogated in some areas

Insurance is high but this is a part of the thievery nature of Irish business.

If we were to be brutally honest, the real attacks on costs have focussed on wages becasue of some idiotic and stupid belief that Ireland will follow the norm. ie if you reduce what people can pay the the price will fall. Preserving margins and profits is the holy mantra of Irish business. And the consumer can suffer.
A lot of the reason prices are so high are because the wealthy business owners diverted all their profits into speculation on the property market during the bubble instead of setting some of their supernormal profits aside as reserves (and they were definitely supernormal profits for much of the 'celtic tiger' era)

Now that their gambling has caught up with them, they are struggling to pay their debts so they are passing them off to the consumer in terms of higher prices.
 


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