Retail
Ireland, the Ibec group that represents the retail sector, today said
the next Government must address key challenges facing the sector in the
next Programme for Government. The group
has set out a series of key asks, which it said were vital to
safeguarding the future success of the sector and the role it plays in
the wider community.
Retail Ireland Director Arnold Dillon said: “The success of the retail
sector is central to the success of the wider economy. In turn, a
successful economy is a prerequisite to a successful society, with
quality, well-funded public services and vibrant, thriving
communities. Retail is the single biggest private sector employer in
the country, with around 300,000 employed in every village, town and
city across Ireland. The sector generates around €7 billion in tax
revenue for the state every year.
“Apart from the positive economic impact of the sector when it comes to
jobs, investment and tax generation, retailers also play a vital role in
improving the communities in which they operate. The sector invests
heavily in training and skills, and supports
a wide range of social and community projects.”
General Election 2020: Key messages
Boosting education and skills
The retail sector was an early advocate of in-work learning and the
continuous up-skilling of its workforce. Hundreds of thousands of
people, from diverse backgrounds, have benefitted from varied and
fulfilling careers in the sector. A greater share of the
National Training Fund budget should be allocated to Skillnet
programmes to allow networks, such as Retail Ireland Skillnet, to build
on this success into the future.
Addressing retail crime
Many retailers are losing significant revenues due to the cost of
anti-social behaviour, theft and insurance fraud. The impact on the
staff who have to manage these issues cannot be overstated. More funding
is needed for An Garda Siochana to allow it to effectively
tackle retail crime and increase its visibility in the community. The
increase civilianisation of the force will help free up more Gardaí for
crime investigation and prevention.
Preparing for Brexit
While we have a Withdrawal Agreement, the future relationship between
the EU and UK is unknown and the deadline is tight. There is the very
real prospect of significant trade barriers between Britain and Ireland
from January 2021 and retail supply chains are
particularly exposed. An ambitious EU-UK trade deal, that seeks to
avoid any trade disruption, must be the aim. At the same time, we must
plan for all eventualities. Significant public investment will be needed
to improve trade and customs infrastructure and
help companies adjust if we face a hard Brexit at year end.
Investing in the digital future
Across all age groups the percentage of people using online mediums to
make everyday transactions are increasing. Retailers must become online
leaders if they are to remain competitive and grow into the future. The
expansion of Enterprise Ireland’s Online Retail
Scheme is needed to make it easier for SMEs to compete in this space.
Ensuring a fair and sustainable system of rates
The recent Local Authority (Rates & Other Matters) Act 2019 was
meant to streamline the rates system. It did not do this. Additional
measures are now needed to address outstanding issues. These include: A
reformed system for rates collection; an end to the
current antiquated process of linking rates to rents and substantial
reform of the revaluation process. When property tax rates are reduced
it is not equitable for business to pick up the revenue shortfall
through the rates system.
Tackling rising insurance costs
Rising insurance premiums, fraudulent and exaggerated claims and general
inefficiencies in our insurance market have become a major
competitiveness issue for retailers in recent years. Awards for soft
tissue injuries in Ireland are over four times those of
the UK and are unsustainable. The pace of reform has been far too slow
and the establishment of a Judicial Council to review legal awards is an
urgent priority.
Addressing environment challenges
Retailers have a key role to play in addressing environmental
challenges. The sector is committed to waste prevention and reduction,
and invests enormous amounts each year to ensure compliance with
environmental legislation. It is vital that new rules in this
area are practical and effective. Any new proposals, such as the
imposition of new environmental levies, must be fully supported by
regulatory impact assessment to ensure they achieve their stated
objectives and do not simply become a new revenue stream.
Allowing Irish business to compete
The cost of doing business in Ireland is continuing to rise,
particularly in the retail sector. This continues to put us at a
significant disadvantage to businesses operating in Northern Ireland.
Any increase in the National Minimum Wage should be proportionate
and in line with current and predicted levels of inflation over the
coming year. We believe inflation tracked increases offer retailers
certainty and enable them to plan for the medium term and build business
plans around a manageable cost base
