Over 1,500 firms 'failed' last year

MORE THAN 1,500 firms went into liquidation, receivership or examinership last year, Minister for Finance Brian Lenihan told the Dáil.

A large number were in the construction and other related sectors, he said. “This is in part due to the rebalancing of the Irish economy away from unsustainable growth dominated by construction in recent years,” he said.

On a more encouraging note, he said, 14,015 companies were incorporated in Ireland last year, representing an increase of 5 per cent over 2009.

Labour spokeswoman Joan Burton said there was fear and despair in towns, cities and villages all over Ireland for businesses that were in very serious trouble, particularly in the retail sector, the hotel and licence trade and tourism.

The rents businesses were paying were such that they were not capable of being met under the current deterioration in trade, she said.

For the past 2½ years, Ms Burton added, Labour had asked the Government to change the upward-only rent review rule on existing leases so that businesses could negotiate lower rents.

Mr Lenihan said the national recovery plan provided a blueprint for Ireland’s return to sustainable economic growth, identifying areas of activity which would provide increased employment opportunities.

Mr Lenihan said that after experiencing two years of significant falling output, it was now clear that growth had returned during the latter part of last year.

“The strength of the corporate sector is also reflected in the performance of corporation tax receipts in 2010”, he added.