Ms Tara Buckley:

Because retail grocers are subject to a joint labour committee, JLC wage rate, the employers PRSI issue had a much more significant impact on them than the rise in the minimum wage. Wage bills went up overnight between €20,000 and €80,000. If one is running a business, as people here have explained, and one has a certain budget to pay for wages, then one cannot handle an overnight increase of €20,000 or €80,000 a year. Unfortunately, what one then has to do is look at the hours and the number of staff. At the same time there was huge pressure coming on the grocery sector from a different retail format which proved very popular with consumers - a very low employment format. It is difficult for an employer with 90 staff to compete with a shop which has 15 staff.