Oireachtas Joint and Select Committees

Tuesday, 24 June 2014

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Business Growth and Job Creation in Town and Village Centres: (Resumed) Chambers Ireland and RGDATA

2:55 pm

Mr. Hugh Doyle:

I am part of Donnybrook Fair which operates five retail stores and employs approximately 280 people. There is no doubt that times are incredibly difficult. Like everyone in the trade, we have seen massive reductions in like-for-like sales over recent years. As a management team, we feel we have made some solid decisions over the past six years that have helped us survive and grow. Since 2008, we have opened three stores and are examining other opportunities. Some of the Government’s interventions, such as the PRSI reduction and the removal of the joint labour committees, have helped us maintain jobs.

We feel, however, there is a lack of support from the Government in certain areas. For example, as an independent retailer we are feeling a big effect from below-cost selling in some of our stores. Fruit and vegetables comprise one area where our sales are dropping massively. The multiples can sell bags of carrots for 5 cent and alcohol at below cost even though the Government increased duty on wine by €1. These are having major impacts on our business. It is not just about us losing the revenue but the effect it has on our footfall. This, in turn, affects the numbers of people we can employ.

While we welcome and see the obvious benefits of trade liberalisation, the issue is that large corporations seem to have an unfair advantage as they can absorb losses associated with below-cost selling. In effect, the Government is subsiding these losses while, at the same time, putting small businesses at an inherent disadvantage. While we are positive about the future and are examining more opportunities, we are looking for more support from the Government in certain areas.