21/08/2024

Dear Minister / Councillor/ Local representatives

Urgent Support Needed for the Irish Hairdressing Industry is required

I am writing to you on behalf of the Irish Hairdressing Council and the thousands of small and medium-sized businesses that make up our industry. As the representative body for professional hairdressers in Ireland, we are deeply concerned about the significant challenges our industry is currently facing. I wish to bring these to your immediate attention, as they are threatening the viability of many businesses and the livelihoods of thousands of employees.

The Irish hairdressing industry is a vital part of the national economy, providing employment, supporting local communities, and contributing significantly to tax revenue. However, the current economic environment has placed unprecedented pressures on our members. Rising operational costs, evolving legislation, and the persistent challenge of unregulated operators (the “black market”) are all factors pushing many businesses to the brink of closure.

Rising Costs and VAT Reduction

Over the past year, we have seen a dramatic increase in operational costs, including rents, utilities, and wages, which have significantly reduced profit margins. The current VAT rate of 13.5% on hairdressing services is a major burden on businesses that are already struggling to cope with these increased costs. We urge the government to consider reducing the VAT rate for hairdressing services to 9%. This reduction would provide immediate relief, helping businesses to remain competitive while also making professional services more accessible to the public.

Need for Incentives to Support Small and Medium Enterprises (SMEs)

Small and medium enterprises (SMEs) are the backbone of the hairdressing industry in Ireland. However, they are also the most vulnerable to economic fluctuations. We call on the government to introduce targeted incentives that will help these businesses survive and thrive. This could include grant schemes for modernizing salons, tax relief for training and upskilling staff, and easier access to low-interest loans for business improvements. Such measures would not only help protect existing jobs but also create new opportunities within the sector.


Impact of the Black Market on Legitimate Businesses**

One of the most pressing concerns for our members is the growing prevalence of the black market in hairdressing. Unregistered operators, often working from home or on a mobile basis, are undercutting legitimate businesses by offering services at significantly lower prices. These operators do not comply with tax obligations, health and safety standards, or employment regulations, giving them an unfair competitive advantage. Meanwhile, registered businesses are left to shoulder the full weight of compliance, including paying taxes, insurance, and meeting rigorous regulatory standards.

The proliferation of black market operators not only undermines the legal framework designed to protect consumers and employees but also erodes the economic viability of law-abiding businesses. We urge the government to take immediate action to address this issue by increasing enforcement against unregistered operators and implementing stricter penalties for those who engage in such practices.

Updated Legislation and Regulatory Support

Finally, we seek your support in reviewing and updating the legislation that governs our industry. The hairdressing sector is subject to a wide range of regulations, many of which are outdated or fail to reflect the current realities of the industry. We believe that a comprehensive review, with input from industry representatives, is necessary to ensure that regulations are fair, clear, and effectively enforced. This would provide much-needed clarity and support for legitimate businesses while also enhancing consumer protection.

In conclusion, the Irish hairdressing industry is at a critical juncture. Without immediate and meaningful support from the government, we risk losing a significant number of businesses, along with the jobs and economic contributions they provide. We believe that by working together, we can create a more sustainable and prosperous future for our industry.
We have already lost a considerable amount of businesses, and risk losing more weekly/ daily

We kindly request a meeting or Some form of correspondence at your earliest convenience to discuss these matters further and explore potential solutions

Thank you for your time and consideration of this urgent matter.

Yours sincerely,

Debbie O’Keeffe Crinnion
President
Irish Hairdressing Council