Ms Tara Buckley:

I thank the committee for the opportunity to discuss our report. My colleagues will give some detail later on their shops, employee numbers, the key challenges they face and on the car parking report, the black economy and the future of the independent retail sector, which topics the committee asked us to consider for today's meeting.

RGDATA has been the voice of the independent retail grocery sector in Ireland for 70 years. Collectively, its members own and operate more than 4,000 shops, convenience stores, forecourt stores and supermarkets throughout Ireland. RGDATA members are present in every community in Ireland and collectively hold over a third of the retail grocery market. It is an extremely competitive, highly dynamic sector providing consumers with convenience, choice, quality and value. RGDATA members provide 90,000 jobs in the independent retail sector and contribute €3.6 billion annually to the Irish economy. While small individually together we are a force.

RGDATA is a strong supporter of vibrant towns and villages, sustainable retail development and shops to which people can walk. Independent grocers are the biggest supporters of Irish producers and suppliers. RGDATA members provide a vital route to market for many small and medium sized food suppliers and producers. RGDATA welcomes this opportunity to highlight the true value of local shops. Every €1 spent on Irish goods in an Irish owned shop is worth four times more to the local economy than is a euro spent in a UK or German multiple. RGDATA is a champion for vibrant town centres and self sufficient local communities. Its members are town centre traders, local heroes who play a significant role in their local communities. Like the committee, RGDATA wants to ensure that independent shops survive and thrive and that our towns and villages remain vibrant places in which to live, shop, work and get together as a community.

Frustration with car parking is a significant issue consistently raised by our members. For this reason, RGDATA carried out a study of car parking regimes in 16 towns and villages throughout Ireland and reviewed car parking practises in other countries, leading to the publication of its report "Nightmare on Every Street – Car Parking and Smart Travel". We have circulated that study widely and it is available on our website. Our key recommendation is that national guidelines on car parking be developed, in respect of which we seek the support of the committee. As evident from the report, restrictive parking policies are a major disincentive in many towns. Rather than attracting customers in to do their shopping, conduct business or spend time in the town centre, car parking policies are driving people to out-of-town retail parks, where parking is free of charge and widely available.

RGDATA is seeking a more equitable, flexible and sustainable policy solution to reverse the damage that has been done. We understand that local government must be funded and that anti-traffic congestion policies must be maintained. However, we believe this needs to be done in a way that enables town centres to flourish. A survey of RGDATA members' views on car parking indicates that more than 60% of the shops in town centres that have pay-parking are in direct competition with edge-of-town or out-of-town shopping centres such as Tesco, Dunnes Stores, Lidl and Aldi, all of which offer free parking. The RGDATA report also shows that there is a disconnect between the various policies on this issue. Government policy measures like the smarter travel strategy, guidelines for planning authorities on spatial planning and national roads, and the retail planning guidelines recognise the disparity between parking regimes between town and out-of-town centres. However, they do not address how the issues should be remedied in a coherent manner. The result is an ad hoc approach among local authorities, which is largely conflicting with current government policy. For this reason, RGDATA is seeking the support of the committee in addressing this issue and reversing the decline in Irish town centres.

A key recommendation of the report, which we would like the committee to consider, is the introduction of national guidelines on car parking and smart travel. We would welcome the introduction of more flexible parking services to customers and incentives to shop in the town centre, including streamlining of parking charges and fines, special offers on short-stay parking, special day rates for long-stay parking, low off-peak charges, free parking for special occasions, more flexible payment mechanisms and graded fines. We are also seeking strategic pricing structures in order to complement sustainable transport initiatives and ensure that there is no congestion of traffic. We are not suggesting there should be no charges, we are saying rather than this being about a revenue grab it should be about ensuring parking is utilised properly and people can come and go and do their business. We are asking for equitable and fair systems across towns.

We also believe that clamping and parking fines should not be used to unduly penalise car users in town centres. My colleagues will elaborate later on how this is damaging businesses in their communities. We believe there should be a rates reduction in recognition of the negative impact of town centre parking charges on town centre businesses. Many of our members in town centres are struggling, having lost business because customers are opting to shop out-of-town where parking is free. We believe it would be fair to equalise the system between town centres and out-of-town centres.

This could be done through ending the practice of free parking at out-of-town shopping centres by imposing a levy on the operator of the out-of-town retail outlet to be paid to the local authorities. Operators could decide whether to pass on the cost of the parking levy to the customer. A paid parking system should be established on all new out-of-town or edge-of-town retail developments if a paid parking system exists in the town centre.

The committee also asked us to address the black market, which is a huge issue for the independent retail grocery sector, which is being particularly hard hit by the rise in the illicit trade in fuel, tobacco and alcohol. The black market is having a significant impact on the legitimate retail sector in the current climate, causing a significant drop in retail sales and the loss of jobs. Illegal trade in smuggled and counterfeit goods has reach epidemic proportions, and according to industry estimates it costs the Exchequer more than €860 million a year in lost excise duties and VAT. The black market also makes a farce out of the annual compliance costs for established legitimate retailers which amount to an average of approximately €5,500 per year for permits and licences. This does not even include the cost of staff time to fill out compliance forms and the further cost of management time.

RGDATA has witnessed a significant increase in the number of rogue traders in unauthorised premises in recent years, and this significantly undermines the work of retailers in established shops. The total cost of compliance for the 4,000 members of RGDATA is estimated at more than €26 million. To add further insult to injury, retailers operating outside the law impose extra costs on law-abiding retailers through loss of sales and increasing difficulty in maintaining a viable business, not to mention the impact on jobs and the criminal activities being funded by these rogue traders.

Fuel laundering is another significant black market issue for RGDATA members, many of whom operate petrol forecourts. The illegal fuel trade is estimated to cost the Exchequer €155 million in lost taxes every year and 12% of all diesel sold in Ireland is illegal. This has a significant impact on our members and we support the recent introduction of a registration system for fuel users. However, we note the irony once again that legitimate traders must pay new annual fees to fund this system. The good guys are taking the hit again. We urge the committee to recommend more inspections of rogue traders and more punitive penalties for those found laundering fuel, selling illegal fuel or dumping toxic waste.

With regard to casual trading, if the committee is serious about tackling the black market it should ensure that the Government and the authorities enforce practical measures which would stamp out rogue trading practices. This should start with strict enforcement of planning and casual trading laws. Authorities must break the link between rogue traders and their clientele, this link being their trading premises. When proper planning and trading laws are observed, illegal traders do not have access to a means of distribution or a premises through which to sell their goods. On a very basic level, we suggest more regular and thorough checks on the casual trading sector, which would ensure best practice is observed and counterfeit products are not for sale.

The Government should re-examine the provisions of the Casual Trading Act 1995 to ensure the authorities are adequately equipped to effectively regulate all markets. Banning the sale of tobacco products at any market or fair would be helpful and the penalties for those caught selling tobacco products in these markets should be increased under the Casual Trading Act. They should be brought in line with penalties in the Finance Acts.

RGDATA believes an extensive public awareness campaign on the health and economic consequences of purchasing illicit goods, particularly tobacco and alcohol, should be co-ordinated between all relevant Government agencies. It is vital to make the general public aware of the extent and effect of black market activity on the legitimate retail sector, jobs in the sector and the local economy. The public should also be made aware of the criminal activities funded by these purchases. Further awareness must also be created about avenues for reporting such crime and trading practices, including the confidential free phone number operated by Revenue with regard to tobacco smuggling. Revenue should consider providing an incentive for more members of the public to come forward and report cases of illicit trade by providing a reward for cases which result in a conviction.

Much work could be done on policing and penalties with regard to illegal trade. Specialised investigators and trained personnel must be engaged by the Government to work with Revenue and the Garda in efforts to ramp up actions in this area. It is a cross-Border problem between North and South and between Ireland and mainland Europe, in which action needs to be taken at EU level with cross-border agencies and joined-up policing initiatives. On a very basic level, high profile Garda checkpoints can be an effective means of monitoring transport and traffic movements and controlling the trade in illicit goods. They also make the public aware of the seriousness of this issue. Customs officials should be resourced and scanning equipment should be available at all ports.

RGDATA supports the introduction of sufficient deterrents to stop criminals engaging in counterfeit sales. The authorities must prioritise the most serious of offences with custodial sentences, and must engage the Criminal Assets Bureau to deal with criminal activities which involve illicit operations on a bigger and more complex scale.

I invite my colleagues to say a few words about their shops and the key challenges they face.