Oireachtas Joint and Select Committees

Tuesday, 21 May 2013

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Effects of Black Economy: Discussion with National Federation of Retail Newsagents and Grant Thornton

2:50 pm

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

Go raibh míle maith agat agus fáilte roimh anseo anniu. I understand that retailers are in crisis. It has been mentioned that nearly 50,000 people have lost their jobs and another 30,000 jobs are in jeopardy in the sector. That proves that the sector is in crisis and, if the current economic climate continues, it has not reached the bottom unlike many other sectors. The State does not give enough support to retailers and enterprise. In the North of Ireland local authorities will often develop strategic plans for towns, merchandising Internet development, social media development, and different supports can be achieved. Some local authorities provide the same support in the South but on an ad hoc basis.

As much as 30% of all tobacco sales in the State are illicit which threatens the Government's health policy. An illicit tobacco seller can be fined €2,800 but some gangs earn up to €3 million per week on the trade. I would like hear the delegation's views on deterrents. Can it suggest an appropriate fine?

Illicit fuel sales have been regularly debated by the committee. The illicit trad will continue until an all-Ireland fuel price is introduced which is the only way to solve the problem. As long as a differential exists someone will exploit it to make a profit. No matter what type of response, such as surveillance, the trade will continue to exist. We must resolve the matter.

Earlier Deputy Áine Collins mentioned that one of the barriers to facilitating a fuel rebate may be the North's policy of marked gas oil. The committee and the Oireachtas should work with the Assembly in the North to create a joint response to the marked gas oil problem. Fuel suppliers in my part of the country are under enormous pressure. As mentioned earlier, anybody north of County Meath who fulfils their responsibilities regarding fuel and the State are, in many ways, not competitive.

I want to hear the delegation's views on progressive rates. Should some element be based on the profitability of business? My party is working on progressive rates. We want small retailers who are struggling to pay a slightly lower rate and large profitable companies, such as Tesco, should pay a marginally larger rate. Such a provision would give small retailers breathing space because they are suffering during these very severe economic times.