Mayo representatives slam cost of doing business for significant loss of jobs

Mayo Independent councillors Richard Finn and Patsy O’Brien have strongly criticised what they describe as the spiralling cost of doing business in Ireland, following the collapse last Friday of Cosmetic Creations in Claremorris.

The collapse has cost 50 job losses in the local area, Cosmetic Creations a contract manufacturer specialising in cosmetics, food supplements and nutraceuticals, operated a state-of-the-art facility in Mayo and provided product development, formulation and packaging services to brands in the beauty and wellness sectors.

Its product lines included high-performance skincare and wellness ranges such as “Ready Set Recover,” designed to support post-workout and everyday recovery.

Describing the job losses as “a devastating blow to Claremorris and the wider Mayo area,” Councillor Finn said the closure must serve as a wake-up call.

“Fifty jobs gone in a town the size of Claremorris is not just a statistic. These are families, mortgages, and livelihoods,” he said.

“We cannot ignore the reality that the cost of doing business in this country has reached unsustainable levels.”

Councillor O’Brien said the fact that a modern, innovative manufacturer had been forced to close raised serious concerns about national policy.

“This was a state-of-the-art facility with a skilled workforce and a strong reputation for quality,” he said.

“If a company like that cannot survive in the current climate, then something is fundamentally wrong with how business is being treated in this country.”

Both councillors pointed to what they described as the cumulative impact of government measures on employers.

“In recent years we have seen a rise in the minimum wage, increases in Employers’ PRSI, the introduction of auto-enrolment pension contributions, rising commercial rates, soaring insurance premiums, and crippling electricity costs,” Cllr Finn said.

“Each measure is introduced in isolation, but together they create a perfect storm.”

Cllr O’Brien said the new auto-enrolment pension scheme, while well intentioned, adds yet another cost layer.

“Every employer will now have to make additional contributions under the new pension scheme.

On top of increased Employers’ PRSI and a rising minimum wage, that is another hit to payroll,” he said. “Individually, each of these changes might seem manageable. Collectively, they are overwhelming.”

The councillors stressed that manufacturers operating in competitive international markets are particularly exposed. Cosmetic and chemical-based production carries high insurance costs, and energy-intensive processes leave companies vulnerable to electricity price spikes.

“When you are producing cosmetics and supplements, your insurance premiums are already extremely high because of the nature of the products,” Cllr Finn said. “Add in high energy usage and rising wage bills, and margins become razor thin.”

Cllr O’Brien said the consequence is that Irish firms are being squeezed from all sides.

“If businesses reflect the true cost of all these increases in their sales price, the end product becomes too expensive to compete in the marketplace,” he said. “If they absorb the costs instead, they simply cannot survive. That is the corner many of them are being backed into.”

While both councillors said they support fair wages and worker protections, they argued that policy must be balanced with competitiveness.

“You cannot keep increasing the cost base for Irish businesses and expect them to compete internationally,” Cllr Finn said. “Manufacturers in other jurisdictions are operating with lower energy costs and lower overheads. We are asking our companies to fight with one hand tied behind their back.”

Cllr O’Brien added that electricity costs in particular continue to disadvantage regional industry.

“For a manufacturing facility, energy is not optional — it is fundamental. When electricity bills rise sharply, that cost feeds directly into every unit produced,” he said. “That makes it harder and harder for Irish-made products to compete.”

In a joint statement, the councillors said the collapse of Cosmetic Creations must prompt an urgent review of how cumulative policy decisions are affecting indigenous industry.

“The government cannot continue to pile costs onto employers and assume there will be no consequences,” they said. “If we are serious about sustaining jobs in towns like Claremorris, then we must create an environment where businesses can operate competitively.”

Both councillors called for immediate supports for the 50 affected workers and proactive engagement with enterprise agencies to attract replacement employment to the area.

“Our first concern is for the workers and their families,” Cllr Finn said, with Cllr O’Brien adding, “But we also have to ensure this is not the start of a wider pattern. The cost of doing business in Ireland is pushing companies to breaking point, and that needs to change.”