Oireachtas Joint and Select Committees

Tuesday, 12 March 2013

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Retail Sector Report: Discussion with RGDATA

2:30 pm

Photo of David CullinaneDavid Cullinane (Sinn Fein) | Oireachtas source

I thank the three witnesses for their interesting presentations. I agree with most of what was said and disagree with some parts. I agree to an extent with regard to the car parking issue. It is a big problem. When people go to shop they need car parking space. We all accept it is more difficult to provide free parking in city and town centres and easier in out-of-town centres. Part of the problem is that retailers often try to put all of the focus on local authorities, when in fact in most towns and cities the private car parking sector is part of the problem. We look to local authorities to provide free car parking, but they are in competition with private parking operators and they must also step up to the plate. Their charges can often be very high, which adds to the problem. They, along with the availability of sufficient car parking spaces, must be part of the solution.

I share some of the Vice Chairman's concerns about out-of-town shopping and retrospectively applying charges. This would have to be teased out but as a concept it should be explored.

I come from Waterford city which has held the line on retail policy, often in very difficult circumstances. Senator Quinn stated he supports a market approach. During the Celtic tiger years the market went mad and people wanted to build any amount of out-of-town shopping centres and, if allowed, would have destroyed many city and town centres including Waterford city. I am sure many other towns and cities also held the line as much as they could. Not regulating the market is not the way to deal with this. We must have sensible policies. At national and regional level, the hierarchy is city and town centres first after which come retail parks and neighbourhood centres. It can be very difficult to hold this. Part of the problem is that even where the authorities have held the line, under significant pressure from people in the cities and towns who see the convenience of having out-of-town centres, some of the big retailers have been lost. Waterford city is a good example. The cost of doing business in city centres includes rates and rent, which is a major issue including for big retailers who have pulled out of some cities. HMV had pulled out of Kilkenny and B&Q pulled out of Waterford and other places. Rent was a big issue. While car parking is important, retailers tell me issues such as rates, utility costs and rents are bigger issues.

With regard to JLC rates, Ms Buckley stated we may have too much employment protection legislation. I am against using a review of JLCs to drive down wages in this area. I found it offensive, to be quite frank, when Senator Quinn stated having the second highest minimum wage is one of the reasons we have an unemployment crisis. To try to pin the blame on low-paid people is inaccurate. The retail sector is suffering because people do not have money to spend. The very same low income workers throughout the sector and State have had their pockets emptied after six austerity budgets. It is why many retailers tell me they do not have footfall or customers but now I hear retailers state they want to be part of this and that the wages of the low paid, mainly women and immigrant workers, need to be reduced. I do not have a difficulty with reforming JLCs. It needs to be done because many of them are outdated, but I do not want to see such reform used as an opportunity to drive down wages and nor should low paid workers be used to somehow prop up businesses which are not viable. If businesses cannot pay the minimum wage then the businesses are not viable. I fully support RGDATA with regard to rents, the cost of doing business and car parking, but I do not support any reduction in the pay of people working in the retail sector.

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