Mr. Damian Duggan:

Thank you. I am secretary treasurer of the Association of Fine Jewellers, formerly Retail Jewellers of Ireland. We changed our name a year ago.

The first matter of concern is the 23% VAT rate. With shops across the Border paying 20% VAT, coupled with a strong euro, we are losing customers as we cannot be as competitive as our Northern counterparts. The loss of revenue to the Exchequer is considerable and combined with the non-policing of flights from the USA, South Africa and Dubai by customs, the loss of revenue is very large. Online sales mean cheap imports are available with no VAT implication for the consumer and no duty is paid. We plead with this committee to encourage the Government to bring forward legislation to make all the online markets liable for VAT and duties. We need fair competition for all Irish retailers that would increase revenue for the Exchequer. When we are facing these mounting obstacles to our business, we find there are more jewellers closing rather than opening.

There is the matter of compliance. While all businesses strive to be compliant in every way, we are finding more red tape is making it harder and very costly to implement compliance procedures. We understand the necessity for policing businesses but we saw an example recently of an independent retailer being threatened with a fine because although the required correct signage was visible in the store, it was not within 5 ft. of the door. The jeweller can be fined but department stores selling jewellery that have no signage whatsoever on display are ignored. Small businesses are a very easy target to for authorities as they have easy access to the decision maker in the business. The General Data Protection Regulation, GDPR, is going to be implemented next month and we are putting in measures to make sure we are compliant but the small retailer is the low-hanging fruit and will be the first to be policed and fined if not compliant, taking up more time and money.

In the jewellery business we must keep ahead with our security measures to protect staff, stock and our buildings. The lack of visible policing is certainly not helping all retail and if it was more evident, the amount of retail crime would decrease. The effect would be cheaper insurance, along with a safer environment for all. Our legislation would have to buy into supporting our police. Arresting people with 18 previous convictions while out on bail, with no jail time or punishment served, means there is no deterrent to stop crime in retail shops. This makes things frustrating for the retailer and police.

Retail business is a tough life. To be busy and have plenty of footfall is every retailer's dream. All of the above taken together, however, mean it is not an easy life for the Irish retailer in 2018. I know from speaking with many people in the retail sector, they certainly will not encourage family members to take over because they know how hard they work. They are last to get time off and last to be paid, and they have very little down time. Many small Irish retail businesses are "living to work" rather than "working to live" and when the present owners retire at 70 or 80 years old, the businesses will close.

On a positive note, people running their own business need to be encouraged because in general they are passionate about what they do. As food for thought, a coffee shop pays 9% VAT and we would gladly pay double that at 18%.

With regard to security, much crime is not reported. The first reason for this is the impact on insurance but there is also no confidence in the judicial system. There is also the threat of litigation and false accusations to consider. Moreover, there is the cost of security staff and the fact that our doors are generally locked. Even with a small business and quiet days, our insurance companies insist that two staff are on the floor at all times. At the front of the shop we are suffering an epidemic of graffiti, so we start our day at that. All shutters now must have ground locks. Working our way through the shop we can consider what we must implement to make a shop secure.

I mentioned litigation. Two jewellers were recently visited by two characters who were checking cases in shops, trying to open them without staff assistance. When they wanted to see the most expensive items in the shop, staff would not open the case, and a day later the owner got a letter in the post from a solicitor threatening legal action because of racial discrimination.

That is the sort of thing we are up against every single day of the week. I personally have been stabbed in the chest, while my staff have been threatened with needles. My father was beaten up during a robbery and died five years later. I have been through it and know what it is like. I am very passionate about what I do, but staying in business for the love of it is not getting any easier. I have been involved in the business for 38 years and given everything I can to it. Last year I took only six days' holidays. One tries to make it as simple and enjoyable for one's customers and staff and oneself as possible, but it is not easy.