Eoin Hayes (Dublin Bay South, Social Democrats) | Oireachtas source

I thank all the witnesses for attending. I really appreciate their time. I know it takes a lot of time to prepare for these things and get all the materials together. I am a former small business owner myself and I have advised small businesses, so I have a decent understanding of different things. This meeting, though, is an education for me as well. I am not as familiar with the restaurant sector, for example, so this is very helpful.

I am concerned about what is happening in the indigenous economy for small businesses. It is important to say to the small business owners that I am sorry for how difficult it is right now. I think the country is failing them. When we look at how we are thinking about the wider economy and the cost of living, which is something that every consumer and individual experiences, we often do not talk about the cost of living in businesses and for business owners as well, but it is part and parcel of the same thing. Importantly, I acknowledge the core role small businesses play in our economy, not just in terms of employment, but also in terms of community services and social need and the important taxes paid that fund 30% to 40% of everything that happens in our local authorities, as I remind my constituents when they talk to me about local property taxes.

More generally, I raised this issue of the indigenous economy with the Minister last week and how there are significant weaknesses here that we need to address, including things like the fall-off in tourist numbers, the increase in liquidations and the increase in redundancies. All of this then factors into demand for the businesses the groups here represent, the customers that come through their doors and the money they have.

I am going to make a very brief pitch with some of the time I have. Sometimes, people look at me and Deputy George Lawlor - people in left-wing parties - and they wonder what we are doing in left-wing parties as business owners. I will just say there is a social democratic model that allows private enterprise to thrive. If we pursue some of these policies, we will get reductions. We will get a VAT reduction, insurance and energy costs coming down and demand going up. Commercial rates would perhaps be more focused on larger, multinational businesses rather than the smaller businesses. There would also be investment in youth diversion programmes, access to justice, drugs programmes and community gardaí. Rents and mortgages would also be cheaper. I think these policies can have a big impact on how small businesses thrive.

More specifically, I will ask a few questions with my remaining time. First, I am not as familiar with the margins as a percentage in some of these different sectors. I would just like to get a sense of what these figures might look like from the perspectives of the Restaurants Association of Ireland and the Retail Grocery Dairy and Allied Traders Association and what kinds of margin they are dealing with.

Second, on demand, if the witnesses could speak to any footfall changes they have seen in the last few years, how this has influenced the average spending per customer and how this might have changed over the last little while, it would be helpful for me to understand the situation.

Third, on owned versus rented properties, we talked a little about the retailers. Multigenerational businesses often own their properties outright. I am not as familiar with whether this is common in the restaurant sector or if the properties are mostly rented. This might change a little bit, too, depending on whether people are in Dublin or outside it. I believe it is also different in the small business sector by the breadth of businesses concerned.

Fourth, the Social Democrats are very much in favour of a 9% VAT rate, for restaurants in particular. It was a commitment I wanted to see implemented as soon as the Government was formed. Obviously, we are still waiting for it. A business owner I spoke to last week said he thought the VAT rate was going to come in on 1 October, but it is 1 January in the budget, so that is disappointing.

Fifth, in terms of restaurant operating expenses, what is the breakdown of these in terms of the percentage of labour, the percentage of ingredients and the percentage of rent or mortgage costs, just so I can get some idea of that balance?

Turning to the retailers, I would like them to tell me a little about the buying groups people are engaging in. I refer to the pressures on supplies and ingredients, the acquisition of goods and how the costs may have gone up. Those questions are for the members of RGDATA.