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

2:30 pm

Mr. Stephen Lynam:

I will be very brief because I suspect the members want to hear from the retailers more than me. There were many questions but the common theme was online retailing. Those who said we should regard online retailing not as a threat but as an opportunity are correct. There are barriers specific to the market that stop small, medium and large Irish operators from going online. In our strategy for retail, we have committed to a body of work to assist Irish retailers in going online. Annually, we survey members on their existing online presence and plans to develop it. Last year, we identified that two thirds of Irish retailers intended either to establish or improve an existing online presence. We have identified specific barriers to online trading. For example, the cost of postage and delivery is one. There is anecdotal evidence that it is cheaper to send a product to Newry and have it re-sent through the Royal Mail than it is to use our postal service. That will not encourage any Irish retailer to go online, particularly where there are different economies of scale. However, I accept Senator Quinn's point that every Irish retailer is now a potential exporter with a much bigger market, the world market.

We are working with the Department of Jobs, Enterprise and Innovation through the retail consultation forum, which we lobbied intensively to establish, to come up with proposals. Retail Ireland and IBEC operate the biggest skill net for retailers in the country. A specific body of work in this regard is to assist small and medium retailers in getting online, obtaining the expertise to maintain an online presence and building on it. Getting online is not just about creating a website and leaving it there; it is like having a whole new store. It is that intricate and intensive. It does not happen overnight, particularly for small businesses and the businesses mentioned by members.

I said at the start that we need a national approach, not just one for Dublin. That is certainly the case. What will work to rejuvenate Dublin city centre will not work to rejuvenate Castlebar, Portlaoise and Navan. Therefore, we need a nuanced and specific set of proposals, depending on the particular problems in particular towns.

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