Oireachtas Joint and Select Committees

Tuesday, 17 June 2014

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Business Growth and Job Creation in Town and Village Centres: Discussion

2:00 pm

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein) | Oireachtas source

Ba mhaith liom buíochas a ghabháil le Mr. Lynam, Mr. Sealey agus Mr. Parker as a gcur i láthair.

The Government has a big role to play in this issue. The under-funding of local authorities has pushed local authorities to obtain their funding from two areas, business rates and car parking charges. These often kill the goose that lays the egg in the first place. It is important that the Government play its role in this regard. We believe in the necessity to have a progressive rate, which might fit in with what Mr. Sealey said. While the rate should reflect the size and type of business, it should also reflect the profitability of the business. It should not be so high that it makes a successful business uncompetitive but allows for businesses that are struggling, especially at present, to fight another day. Also, the flat taxes introduced in recent times have had an effect on retailers. Property charges made a dent in people's disposable income and I have heard much anecdotal evidence that the current talk about water charges is lowering expectations of disposable income into the future. They are, therefore, making allowances for them now also.

I realise Retail Ireland represents both out-of-town and town centre businesses. If we want to get people back into the town centre, a carrot and stick approach is required. It must be incentivised which is sometimes a zero sum experience. It is hard to please all representative groups. Are the car parking spaces in out-of-town centres subject to rates? Obviously, a major competitive advantage for Dundrum shopping centre as opposed to businesses on Grafton Street would be the availability of car parking spaces. We brought forward a Bill on upward only rent reviews, but the Government did not accept it. I believe Mr. Lynam is correct in saying it is important it be tested constitutionally.

Local authorities have a massive role to play. In the North local authorities will provide merchandising and market training for businesses; they will provide mystery shoppers and do their utmost to ensure town centre retailers are fully tied up. Approximately €3 billion is spent on online sales, of which two thirds leaves the island. That figure will only increase in the future. Local authorities and especially the local enterprise offices, LEOs, have a massive role to play in training retailers in town centres in how to provide for online marketing at least, if not a step up to online retailing also.

Providing a cycle path on the north side of the city is a matter of life and death. People will die in the next couple of years if a cycle path is not provided. Buses continuously cut off cyclists.

While there might be a reduction in the net spend per individual, the challenge is to make sure the cycling leads to a reduction in congestion. That will lead to more people being in the town centres, which will offset that reduction in the net spend per individual.

I commend the analysis done by Retail Ireland of the number of vacancies in main streets because the "shutter island" experience is real, particularly in areas outside the M50. Some of the figures Mr. Lynam gave us show a dramatic increase from 2013 to 2014.

Mr. Lynam mentioned rates holidays. Many incumbent retailers have problems with rates holidays because they believe a competitive advantage is being given to a "newbie" in the particular market, which takes money from one and gives to the other. It is similar to the Government's attitude with regard to grants - one does not displace business that already exists. I ask that we would try to square that circle.

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