According to a Chamber of Small and Medium Enterprises business survey, 62 per cent of respondents want to see the government reduce the water and electricity surcharge as it was one of the main reasons, they believe, that trading was not going well.

The multiple choice (and answer) survey covered the first four months of the year and was answered by 315 respondents, which translates into 25 per cent of the business community.

Twenty-nine per cent of respondents said that their turnover had remained the same as the same period last year, 52 per cent said they had registered a decrease of between 10 and 30 per cent while only 19 per cent said turnover had increased.

In comparison, only 12 per cent said that profits had increased by between 10 and 30 per cent while a staggering 63 per cent said that their profits had fallen by between 10 and 30 per cent. A quarter of respondents said their profits had remained the same.

When asked what the factors were to their business improving this year, 14.8 per cent said that they had increased the range of products or services they offer. Other reasons given, ranging from 5.6 per cent to 3.5 per cent, cited more advertising, reduced prices, discounts, new schemes, more money in people’s pockets and EU membership.

Meanwhile 50 per cent of those who said that their business slumped said that the reason was due to increased costs. 39.44 per cent said it was due to the water and electricity surcharge, 29.5 per cent said it was due to the stagnant economy, 26.7 per cent said it was due to an increase in taxes while 25 per cent said that it was down to fuel price increases. Other reasons included more regulation (16.3 per cent), competition from new businesses (18.3 per cent) and falling prices (17.6 per cent).

The GRTU said that 71 per cent of respondents said they think that their activity for the rest of the year would remain the same. Fourteen per cent said they would increase their activity and an equal percentage said their activity would decrease. One per cent said they would shut shop.

Seventy per cent of respondents said that they would keep the same staff complement. 19 per cent said that they would reduce staff while 11 per cent said they would be taking on more people.

Meanwhile, 52 per cent of respondents said that they thought the rest of the year would remain the same. Thirty-three per cent believe business will be even worse while only 15 per cent believed that business would pick up.

Those who believed their prospects would look up were asked why. Eleven per cent said that it was because the economy would be boosted and three per cent (the next highest percentage) said that it was because they expected an increase in tourism.

The rest of the reasons ranged between one and two per cent and included, a reduction in fuel prices, a reduction in the energy surcharge, more money in hand, more government assistance and less taxes.

Of those who said they thought 2006 was going to continue to decline, 35 per cent and 34 per cent respectively said that it was due to increased costs and the surcharge on water and electricity.

Twenty-two per cent said it was due to increased taxes and 20 per cent because of fuel costs. The other answers ranged from 18 to 11 per cent and included increased red tape, more competition from new businesses, falling prices and a stagnant economy.

Asked about their wish-list for 2006, a significant 62 per cent said that they wanted to see a drop in the surcharge, 57 per cent wanted more government assistance, 51 per cent wanted less tax on trading, 49 per cent wanted to see a drop in income tax, 45 per cent wanted less red tape, 39 per cent wanted to see fuel prices drop and 30 per cent wanted the introduction of low cost airlines.

All respondents were asked what their main worry for 2006 was and the largest number (24 per cent) said the economy’s performance, 22 per cent said the surcharge, 19 per cent said increasing competition, 13 per cent said the tax compliance unit, 11 per cent said the price of fuel, six per cent said the euro change over and one per cent said local issues.