2. Written evidence from the Federation
of Small Businesses
The Federation of Small Businesses (FSB) welcomes
the opportunity to respond to the Northern Ireland Affairs Committee
on Organised Crime in Northern Ireland. The Federation of Small
Businesses is Northern Ireland's largest business organisation
with over 5,000 members. The FSB is a non-party political lobbying
group for Small and Medium Sized (SME) businesses existing to
promote and protect the interests of all who own and/or manage
their own businesses.
Organised crime against business is an increasing
concern to us and our members in the FSB. Crime in general is
one of our key priorities as FSB "Lifting the Barriers to
growth" research indicated that 59% of businesses are a victim
of crime in a year. Most crime against businesses are not reported
as (36%) of businesses believes they will not achieve anything
by reporting incidents and there is a lack of confidence in the
ability of the police to find the criminals (26%).
FSB research indicates that Northern Ireland
is fourth highest region in the UK experiencing business crime.
In addition, to regular business crime we are conscious of the
additional burden of extortion and racketeering through paramilitary
activity. This is an additional hidden cost of doing business
in Northern Ireland were costs are higher in general.
In particular we have a growing concern on the
level of extortion and racketeering by paramilitaries in local
communities. Businesses that are easily visible, that depends
on local consumers, such as the retail and service are regularly
targeted. The construction industry is also a target for "protection"
money but only if carrying out works in areas where this activity
remains endemic.
Politicians and government are aware of the
geographic areas where this activity is ongoing but choose not
to tackle this issue. The FSB recognises that the exact scale
and scope of extortion and racketeering is hard to assess, but
the issue must become one of the main priorities for the Organised
Crime Task Force in Northern Ireland.
Businesses choose not to locate to particular
areas due to the demand for "protection" money. In many
areas this has impacted on limited shopping facilities for those
most vulnerable in society.
The FSB believes that it is unrealistic to rely
solely on businesses to report this crime—as the cost to
the victims in terms of personal security is too high. Therefore
it is up to Government and politicians to take a lead on this
issue.
SME's make a vital social and economic contribution
to N Ireland, making up 99% of all businesses, 79% of employment
and 75% of turnover. It is crucial therefore, that:
— The Organised Crime Force makes racketeering
and extortion against the SME community a core priority.
— Research into the cost and impact
of racketeering and extortion against the SME community is commissioned.
— Politicians have to accept their
role and take a lead to deal with this issue at all levels especially
at a local level.
The FSB has carried out a small survey with
members on the impact of donations in general and below are some
of the comments we received regarding illegal donations.
"We are a small town business,
donations are excessive but . . . I feel I could do more harm
by not donating". Retail, two employees.
"Having groups of men in uniform
coming in to the practice is quite intimidating especially as
they insist on person behind desk signing form and writing how
much they are giving". Opticians, four employees.
"If the small amount to be paid
is `seen to be paid' there is no problem. My windows and personal
safety are worth a lot more than £100 a year". Barbers,
two employees.
"Money is one thing—risk
to staff, intimidation and ongoing worry—no value".
Retail, 17 employees.
"I have had to refuse requests
for `protection money'. I have had to donate money to `prisoner
charities'". Services, four employees.
The FSB believes it has a duty to business to
highlight the `tip of the iceberg' regarding the pressures faced
on this issue.
Wilfred Mitchell
Policy Chairman
12 December 2005
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