Oireachtas Joint and Select Committees

Tuesday, 20 April 2021

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Loan Guarantee Schemes Agreements (Strategic Banking Corporation of Ireland) Bill 2021: Waiver of Pre-Legislative Scrutiny

Mr. Declan Hughes:

We have been working with the retail sector in the context of both Covid and Brexit since 2016 or 2017. We have really good contacts with the sector across the representative bodies, including the Convenience Stores and Newsagents Association, CSNA, and the Retail Grocery Dairy and Allied Trades Association, RGDATA. They are members of a retail forum which is chaired by the Minister of State with responsibility for retail, Deputy English. We have also had, for the last year in particular, a retail and supply chain round table which during last year was meeting probably once a month or every two weeks, and over Christmas and at the back end of last year it was probably meeting weekly, to deal with both the Covid and Brexit impacts. It was to ensure that we have continuity of supply, and retailers and wholesalers put in extraordinary work to ensure we had continuity of supply, and to deal with all the issues that existed in terms of new customs and other procedures.

The retail sector proved relatively resilient last year because it had click and collect. It diversified quite quickly in using the online vouchers from the local enterprise offices. Indeed, many found new markets and alternatives. In some of the grocery retail, we know that off-licences and other parts of it have done quite well, in some cases up 15%, 17% or 20%. However, it is the broader base of retailers that populate our high streets and main streets that have been particularly impacted since Christmas, especially in not being able to avail of click and collect. That is a huge sacrifice. People stayed at home, did not congregate and so forth and that was based on public health advice. We had a meeting of the retail forum with the Minister of State, Deputy English, last week which looked at the reopening roadmap and the prospect, which the Tánaiste and Taoiseach have mentioned, of reopening click and collect, hopefully in May if the numbers continue to go the right way, and then the remainder of non-essential retail thereafter. Indeed, our advice now to all retailers is to put preparatory actions in place by ensuring they have work safely protocols, ventilation and queuing systems. We are engaging with shopping centres and others in regard to that reopening.

At the same time, we have also had the compliance issues, which the Deputy mentioned. There are clear regulations which specify the outlets and activities that are to be open and not open, in terms of essential or non-essential. The regulations are also very clear for mixed retailers. Where there may be, for example, fashion, clothing and home ware, they are to be sectioned off. It is not permitted to allow the public into those areas except on compassionate grounds.

We all know of many examples where people need clothing for job interviews or funerals, for example, and the compassionate grounds provision exists in those circumstances. The Government has also introduced new regulations to allow for the fitting and purchase of children's shoes from last week by appointment.

Therefore, the regulations are clear. An Garda Síochána has been working very closely with us and members of the force met with the retail forum last week to outline the measures being taken. Those measures focus on engaging, encouraging and informing. Where that is not the case, however, and the Garda is not getting co-operation, enforcement will be proceeded with. I think just under 200 cases have been referred by the Garda for consideration to the Director of Public Prosecutions, DPP, and I believe several cases are pending in that regard. It is a very credible regime and we have continuously sought the co-operation of all retailers. I reiterate that the majority of retailers are bearing the brunt of this situation. In the remaining time, it behoves everybody to fall into line with the regulations to ensure we have a safe reopening for everybody.

The full range of supports are available. The CRSS is specifically for retail outlets that have had to close on public health grounds and have not been able to allow the public access. That support is available and is being accessed by the retailers. Hopefully, it will sustain those retailers on the main street and ensure that they are in a position to reopen. Many of those retailers have stock from last spring and summer and perhaps now autumn stock as well which has not cleared. That is a significant issue for them, but we will provide encouragement regarding there being good value available in such areas when we get back out and reopen. Hopefully, the public will be back out supporting those retailers.

The small business assistance scheme, SBASC, has also been beneficial in this regard. Approximately 22% of the applicants so far have been from the wholesale and retail trade. Many wholesalers and suppliers to the retail sector that do not benefit from the CRSS because they do not have customers coming in have been benefiting from SBASC. There has also been very high take-up under the credit guarantee scheme, and they will also be able to benefit from the scheme under consideration.

We must now work towards a safe reopening, get consumers back out spending and get cash flow back in the retail sector. As the Deputy will be aware, we have been working with the local authorities to ensure that the public realm is attractive and safe for local shopping. Significant initiatives were taken in this area before Christmas. The Deputy will be aware that there is a new €200,000 grant scheme for local authorities to undertake further improvements in respect of streetscapes to ensure that our town and city centres are attractive for people to come into, mingle and enjoy recreation, shows and other entertainment as well. Regarding co-operation, many chambers of commerce around the country are working at local level with the local authorities, retailers and the hospitality sector to ensure the provision of attractive public realms in which people will feel it is safe to come back into and spend some of their savings.

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