BUDGET 2015 RETAIL FUNDAMENTAL TO RECOVERY 1 REI BUDGET 2015 SUBMISSION

Transcription

1 BUDGET 2015 RETAIL FUNDAMENTAL TO RECOVERY 1 REI BUDGET 2015 SUBMISSION

2 In order to sustain our recovery, grow the economy and support employment in the Irish retail industry, we call for the following measures to be implemented in Budget TAXATION & FISCAL POLICY Retain the 9% VAT rate which has positively impacted on job retention and creation in labour intensive sectors. The 9% VAT rate has raised an additional 323million for the Irish state. For annualised VAT data please contact REI directly. Reinstate the 4.25% PRSI rate for lower paid workers (from 8.5%). The reintroduction of the 8.5% rate in Budget 2014 has negatively impacted job retention and creation in the retail industry. It has also undermined many Government labour activation initiatives. No further excise increases should be applied to alcohol and tobacco products. Any increase will lead to a diminution of taxation collected due to the resultant increase in black market and cross border demand. Introduce a white goods scrappage scheme for water efficient dish washers and washing machines. In the context of the introduction of water taxes we believe a scrappage scheme to replace water inefficient white goods will reduce the cost of water tax to consumers, assist in the revival of this stagnant retail sector and promote a policy which will assist in the achievement of EU WEEE targets. Further details of the proposed scheme are available from REI. New models are as much as eight times more water efficient than older equivalents. Reduce consumer taxes including the higher VAT rate to 21%. There are 275,000 people employed in the Irish Retail Industry, making it Ireland s largest private sector employer MICRO-ECONOMIC INTERVENTIONS Policy Level Appoint a Retail Minister. As the largest industry in Ireland with the potential to lead the Nation to economic recovery, we urge the appointment of a Junior Minister with specific responsibility for the retail industry. 2 REI BUDGET 2015 SUBMISSION Employment and Labour Activation Issues Halt the reintroduction of JLCs which add a further unnecessary level of bureaucracy on employers and negatively impact on job creation. Apprenticeships in Retail We support Government s plans to develop and launch sector specific apprenticeships, especially the delivery of an accessible and professional apprenticeship programme for the retail industry. A fairer balance must be achieved in the practical application of employment and industrial relations legislation. We urge Government to consider an IDA style grant for retailers who open a new store in a town centre which employs over an agreed number of employees. We support the various schemes aimed at activating the labour market however a number of employers who endeavoured to include long-term unemployed candidates in new hiring campaigns are faced with a situation where, following a lengthy recruitment and induction process, the potential candidates were found to be ineligible for the schemes. The process should be improved to ensure this does not reoccur. Sector Specific Issues Ban below cost selling. We support the implementation of a grocery code of practice to ban below cost selling. Below cost selling is damaging to independent retail and to suppliers in this sector. Ultimately it will be damaging to consumer choice. Tackling the black market. Greater effort must be invested by Government agencies to reduce black market activity including tobacco smuggling and illicit fuel laundering. Increased surveillance and longer jail terms should be considered. Oil Duty Pre-Payment. Oil importers should be permitted to pay duty on oil sales once the product has been sold to the end consumer. The application of duty on the product prior to its arrival into the State places an onerous burden on the oil importing companies and leads to increased consumer prices at the pump. We call for the immediate implementation of Section 21 of the Betting Amendment Bill to enable bookmaker shops to open throughout the year until 10.00pm rather than just for 6 months of the year. This intervention will create 500 new jobs. Irish retailers paid salaries of 8.8billion in These salaries were paid in every town and village in the Country

3 Tourism We must streamline the visa application process thus making Ireland more accessible for non-eu nationals. We require a visa process similar to that in the UK. Increase the stamping limit on tax back for visitors from 2,000 to 4,000 thus reducing the need for visitors to have to seek stamping approval at the airports. This measure will increase visitor spending and deliver a convenient and better experience for the visitor. Increase the profiling and marketing of Ireland as a retail destination to visitors. Home Renovation Scheme Improve the regulation of the Home Renovation Scheme - It is reported that under the current scheme some builders are supplying consumer electronic goods and applying the 13.5% VAT rate. Furthermore the value of the consumer electronic goods is being included in the tax credit application. There are 44,000 retail businesses in Ireland. Most operate in small towns and villages. They are central to our societal infrastructure. They anchor our communities Local Authority Rates A town centre first approach should be promoted by applying lower local authority rates in town centres. Implement Section 2 of the Local Government Rates Act (1970) to permit Local Authorities to grant rates waivers or reductions for new entrants (which meet Local Authority identified retail mix deficiency). This will assist in achieving a balanced retail and hospitality mix in our towns and cities. Increase funding for Local Authorities through the residential property tax thus allowing for the reduction in the rates burden for businesses. Local Authorities should be assisted in the provision of rent and rates controlled zones in urban environments. The zones will provide an opportunity for SME owned and operated stores to open, and for towns to deliver a unique retail mix to consumers. Review the national implementation of the rates revaluation which now links rates to rent levels in the market. Where implemented, the revaluation has led to a notable increase in local authority rates in town and city centres. Town Centre Revival In order to improve the focus of Local Authorities on town centre management disciplines, REI proposes the establishment of a Town Centre Management Academy (in partnership with the Association of Town & City Management UK). Mandate Local Authorities of scale to fund the appointment, or the secondment, of a dedicated and skilled full-time Town Centre Manager. We encourage Local Authorities to engage with local Town Teams and be creative in their approach to citizen engagement and footfall generation i.e. trial parking promotions etc. Promote an all-island approach to retail planning thus ensuring a balanced and sustainable retail mix in border areas. Mandate the rigorous application of the sequential test especially in the context of food retailing. The suggested implementation of car parking fees in retail park and business park locations to assist in the revival of town centres is totally unacceptable, unworkable and non-productive. Support REI and CCMA efforts to establish a Town and City investment database listing important contacts across all Local Authority and other town information including current retail mix, investment incentives which apply et al. The database will better link local Government with prospective retail and hospitality investors. Introduce a more streamlined planning application process for relatively minor applications such as signage, shop fronts and mechanical plant installations at roof levels. At a minimum a three week turnaround on application is required. Furthermore a well justified reason from the planning Authority must be provided should additional information requests be requested by that Authority. Anti-Social Issues & Crime Our civic spaces must be policed more proactively. We are dealing with daily complaints regarding crime, begging and other anti-social behaviour. A shopping centre approach to anti-social behaviour must be implemented. In some urban locations there has been a noticeable and concerning increase in drug taking, drug dealing and general anti-social behaviour with many retailers citing that their area has been over-run with criminality. Increase the penalties for forecourt drive offs and better equip the Gardai to deal with the crime in a more expedient manner. Introduce harsher penalties for retail crime and improve enforcement of the current laws. 3 REI BUDGET 2015 SUBMISSION

4 ecommerce and Digital Introduce postcodes in a timely fashion. Provide for a closed community online fraud database which, while working within the remit of the data protection laws, can be shared by online retailers and reduce instances of fraud. Work with REI and ecommerce Europe in the establishment of a Trustmark for online retailers. Grow retailers export and cross-border trading capabilities through the delivery of bespoke market intelligence and funding support. Enterprise Ireland must refine their business funding model to allow for an extension of supports into this category of business. Access to anonymous data for ID&V is paramount to the success of online trading. Identification of fraud and fraudulent activities and the credit worthiness of an individual will allow the retailer to make informed decisions which will ultimately reduce fraud and increase revenues. Key inputs required are 1) Lobby the Data Protection Commissioner and Government regarding the requirements needed for the Data Protection Act 2014 and 2) Work with ecommerce Europe regarding policies on data protection within a European context. The Irish retail industry contributes 10.8% of GDP Cost of Doing Business in Ireland Ban Upward Only Rents - Introduce the Senator Feargal Quinn proposed Bill to allow vulnerable tenants to apply for a market rent for a limited time period. Commercial rents increased by 240% between the years 2000 and 2007, while over the same period the consumer price index (CPI) increased by 30%. Illness Benefit Administration. Government must remove the onus on the employer to adjust the tax returns of employees who have received illness benefit. Currently employees are required to give the counterfoil from every Illness Benefit payment to their employer who will then adjust their tax. The responsibility of this task completely falls on the employer. This is an incredibly time consuming and burdensome task, especially for SMEs. 4 REI BUDGET 2015 SUBMISSION

5 Established in 1995, Retail Excellence Ireland is owned by the members, for the members. We are a not for profits organisation which invests in innovative learning, market intelligence, human resources services, Government representation, retail industry awards and member networking initiatives. Retail Excellence Ireland involves over 1,100 leading retail companies who operate over 11,000 stores in the Irish market. Our members are the most progressive and innovative retail operators. We make every effort to deliver activity which is wholeheartedly based on member requirements. REI is by far the largest retail industry body in Ireland. RETAIL EXCELLENCE IRELAND (REI) Dublin Fitzwilliam Square, Dublin 2 Ennis Barrack Street, Ennis, County Clare info@retailexcellence.ie 5 REI BUDGET 2015 SUBMISSION