Oireachtas Joint and Select Committees

Tuesday, 24 June 2014

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Business Growth and Job Creation in Town and Village Centres: (Resumed) Chambers Ireland and RGDATA

1:55 pm

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

Aontaím leis an gcuid is mó atá ráite. For me, the biggest variable in the last seven years has been a collapse of demand. It alone is undoubtedly the most important thing to happen to the sector. Private and public investment has collapsed, as has disposable income. One of the points made by Mr. Talbot is that wages are too high and it is virtually impossible to employ people. However, if wages are too low, it is virtually impossible for people to buy things in his shop or retail outlet. There is a happy medium and, from our point of view, the minimum wage is the basic that must be paid. People must have a proper wages in order they can purchase in retail outlets.

What effects have the property charges and the talk of water charges had on the spend in Chambers Ireland members' outlets? I fully agree with Mr. Talbot on rates and the costs of doing business. We believe rates must be progressive, like every other element of taxation. It is complex but it must have some relationship, although not a full relationship, to the profitability of the business, and it can have a role in the reorganisation of towns. Mr. Talbot mentioned Cleveland, Ohio and referenced a few economic incentives that were given to businesses to move downtown. Will he give us more information on that? Also, could he give us information on energy, transport, insurance, legal and credit costs? These are having a large negative impact on business.

Parking is a function of the local government fund. When that fund reduces, the local authorities are forced to get funds from parking, among other sources, and that kills the golden goose. I also believe that some of the business groups were somewhat naive when they thought the property tax would reduce rates for businesses. It is clear there was no real intention in that regard and that the local property tax is just to substitute for the local government grant rather than business rates.

With regard to business debt, Morrissey's quarry in Carlow has been put into receivership because of business debts. Will Mr. Talbot talk about the experience of Chambers Ireland's membership with business debt?

The two-tier economy has not been focused on sufficiently either in this committee or in any other forum. There is a massive contrast between the experience of retailers within what was traditionally called the Pale and the experience in the area outside it. Perhaps Mr. Talbot will discuss that. It is not our desire to talk down enterprise anywhere, but it is important to focus on that.

What can the Government do with regard to the rolling of contracts? I believe the rolling of contracts in public procurement is a significant problem. It is creating a major difficulty for small entrepreneurs in accessing them.

I agree on the necessity for a good strategic partnership of organisations to deal with the revitalisation of town centres. The local enterprise offices, LEOs, must work with the chambers of commerce and the local authorities and they must all be on the same page with regard to delivering a proper strategy. They have been disjointed for too long and that must cease.

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