Dessie Ellis (Dublin North West, Sinn Fein)
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To ask the Minister for Jobs, Enterprise and Innovation his plans to safeguard and promote jobs within the faltering indigenous small and medium enterprises retail sector in the State. [51895/12]

Dara Calleary (Mayo, Fianna Fail)
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To ask the Minister for Jobs, Enterprise and Innovation the action he will take to assist the retail sector; and if he will make a statement on the matter. [51836/12]

John Perry (Sligo-North Leitrim, Fine Gael)
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I propose to take Questions Nos. 8 and 14 together.

As I outlined in response to an earlier question from Deputy Calleary, the Government recognises the importance of the retail sector to the economy. It is employment intensive and covers every community in the country. Combined with wholesale, the sector employs 258,000 people in Ireland, which is almost 15% of our total workforce. The sector straddles a range of operations, from one person online set-ups to multinational chains, and the types of assistance needed vary throughout the sector.

The measures I outlined for the retail sector as a whole will support SMEs and larger enterprises in the sector, as well as the more general measures in the action plan for jobs aimed at supporting employment throughout the economy. In addition, small businesses in the retail sector will be able to benefit from ambitious reform of the delivery of services to small businesses generally. This will include the dissolution of the county and city enterprise boards and the establishment of local enterprise offices, LEOs, to create a high quality, innovative, one-stop shop support service for small businesses. Key local authority services will be integrated into the LEOs to promote a local environment within which enterprise can thrive.

It is useful to note that while the retail sector in Ireland has been struggling as a result of the economic downturn, lack of confidence and a lack of credit, it compares relatively well with the retail sector throughout the EU. In September 2012, compared with September 2011, the retail sales index fell by 0.8% in the euro area, while it rose by 1.3% for the same period in Ireland.

I am aware that in recent weeks a number of retailers have made announcements that more than 2,000 seasonal retail jobs will be available for the Christmas season in a range of both part-time and full-time roles throughout the country. This is very welcome.

Peadar Tóibín (Meath West, Sinn Fein)
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The Nevin Economic Research Institute has indicated 30,000 jobs have been lost in the retail and wholesale sectors in recent years and the knock-on effect of these losses in local areas has been greater than this. Some parts of the State and some retail sectors have experienced a lift in recent months, but the main streets of many provincial towns have a significant number of shops boarded up. Many retailers are struggling with a number of issues on which the Government could focus, including upward-only rents. These have been mentioned in the House on many occasions and will be mentioned again because as long as businesses are forced to pay uncompetitive rents, the issue must be raised in the House. The Government has stated it cannot act on it, but I urge it to show the information received from the Attorney General in this regard. It is stated governments do not do so but on occasion I have seen other governments detail Attorney General evidence.

The cost of energy is crippling. I know of a bar which pays an electricity bill of €2,000 every month which makes it very difficult to operate. We have urged the Government to introduce progressive rates which would take at least some consideration of the profitability of a business. Will the development of the new small enterprise sector allow for a level of grant funding for the retail sector? I understand displacement is a problem in this area. Will further funding supports be available for the retail sector in the shake-up of enterprise development?

John Perry (Sligo-North Leitrim, Fine Gael)
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To take the last point, very effective soft supports exist for small businesses, such as educational and mentoring supports. With regard to electricity, people do not realise commercial electricity charges here are cheaper than in Northern Ireland and Britain. People do not fully recognise that VAT is reclaimable and this reduces the unit cost to a very competitive rate. Business people do not make one fully aware of this.

With regard to upward-only rent reviews, it might be different on Grafton Street but in Castlebar and smaller towns landlords believe some money is better than no money and if a tenant states he or she can pay only half the rent paid in 2007, many landlords will accept this. The commercial reality has surfaced and most business people will accept lower rents regardless of the legislation. The Minister, Deputy Bruton, has stated on many occasions that new rental agreements have an option for downward rent reviews, but the Attorney General has stated we cannot retrospectively deal with rents.

Dara Calleary (Mayo, Fianna Fail)
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The Minister of State knew that before the election.

John Perry (Sligo-North Leitrim, Fine Gael)
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There was much known that was clarified by the Attorney General when we came into government and there was much more information we found out afterwards that we did not know about the disaster of the previous Government.

Dara Calleary (Mayo, Fianna Fail)
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Returning to my previous question on a promotional campaign - before the Acting Chairman gets excited, it is applicable to the retail sector - and a knowledge campaign for the two new schemes, these are not known of among the general business community. Would the Minister of State give me any idea of the drawdown of the facilities?

The Minister of State will not convince me that he is doing anything serious about retail. I would encourage him to look at the record of this debate. On manufacturing, in the case of specific initiatives and specific time lines, we got the jobs action plan. The Government threw the kitchen sink into initiatives on retail.

On the local enterprise offices, LEOs, we had a worthwhile engagement at the Joint Committee on Jobs, Enterprise and Innovation with Enterprise Ireland, a fantastic organisation which will bring an entirely different edge to this. However, retail is not in Enterprise Ireland's mix. It is not on its plate at all. At the committee, we have started on a cross-party basis conducting a review of the retail sector. Some committee members will be in Kilkenny and Waterford at the weekend and we will travel the country to get first-hand experience. I would encourage the Minister of State, who is a retailer, to bring his experience to the table in the design of the LEOs so that, as well as soft support, there is also some real support so that retail is part of the LEOs remit from their outset, not something to be pushed off as an AOB item.

Perhaps the Minister of State give us an update on the following matter which, I accept, is a budget decision. Has the Department engaged with the proposal of the Minister for Social Protection, Deputy Joan Burton, to put another burden on business around sick pay and is there any update since the previous debate on that?

Finally, I repeat that the Minister of State, as a Member of this House, was aware of the constitutional blockages on upward-only rent reviews prior to the last election and prior to him making the promises that his party made, and he completely reversed his position when he went into government. In rural economies rents are not the problem but in the cities upward-only rent reviews are a major issue. They are causing serious job losses. Only two weeks ago, an iconic retailer in Dublin closed because it was not in a position to re-negotiate its rent. If the Minister of State goes down Nassau Street, he will see the empty unit.

Peter Mathews (Dublin South, Fine Gael)
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To put the Minister of State on notice, Deputy Wallace wants to ask a question and there are nearly three and a half minutes left.

John Perry (Sligo-North Leitrim, Fine Gael)
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When it comes to the reality of business in the retail trade at present, if one takes small business, while retail is under considerable pressure, it is about confidence and credit. There are many spheres in the economy affecting small business, while Deputy Calleary gets hung up on the retail trade.

The previous Administration fuelled shopping centres in every village and town, far beyond what was needed. Deputy Calleary may have a big issue, which he has raised time and again, with rents. It is not as big an issue as he makes out. There may be one exception, but the bulk of landlords have vacant units in every large town and city, not only here in Dublin, and are happy to renegotiate, and that is now taking place.

With the promotion of the micro-loan fund, every county and city enterprise board has launched a plan of action. The Department is conscious of that and there will be promotion of that in the new year. We have a clear plan.

It is important to recognise that 258,000 people work in retail and wholesale. There is the proliferation of the large multiples. People are now selling alcohol below cost. It is the 80:20 principle. It is driven by value. When one looks at the tourism sector, there is a revitalisation as a result of the lower VAT on hotels. We have done more in 18 months for small business than the previous Administration did in 14 years. The previous Administration did nothing for them.

Dara Calleary (Mayo, Fianna Fail)
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The Minister of State is in cloud cuckoo land.

John Perry (Sligo-North Leitrim, Fine Gael)
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Deputy Calleary did nothing for them.

Dara Calleary (Mayo, Fianna Fail)
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The Minister is in some other land.

John Perry (Sligo-North Leitrim, Fine Gael)
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Deputy Calleary does not want to recognise what was done. The Government to which he was party did nothing. I was here in opposition asking it time and again. Deputy Calleary had no respect for the domestic economy.

Peter Mathews (Dublin South, Fine Gael)
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I want to respect-----

John Perry (Sligo-North Leitrim, Fine Gael)
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The Government has an understanding, concern and respect for small business which the previous Administration did not have.

Peter Mathews (Dublin South, Fine Gael)
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I want to respect Deputy Wallace's opportunity to ask a question.

Mick Wallace (Wexford, Independent)
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The Minister of State stated that there were too many retail units anyway. With seven a day going out of business in Ireland at present, I would say that we have gone past the mark at this stage of what should be sustainable.

Returning to finance and the retail sector, should I take it from the Minister of State's last reply that we should forget about the strategic investment bank?

He stated that banks should not give money to someone who would never give it back, and I agree. If I had a bank, I would like to get it back as well. Given that the State owns the banks, if the banks were to go for their best option they would be investing outside the country, which many of them are doing, rather than giving it to local enterprise or businesses.

As Deputy Perry will probably be aware with regard to retail, rates are being revised in Dublin at present. I have one particular unit, on which I got word two weeks ago and on which the rates were already one third of the rent. I have just been told that my new rate is 40% higher. How, in God's name, is that realistic? Do those coming up with these figures know anything about the problems businesses face?

Peter Mathews (Dublin South, Fine Gael)
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There is only half a minute left.

John Perry (Sligo-North Leitrim, Fine Gael)
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On the revaluation of rates, that is why it is so important that there will be centralisation of services in the one business desk where local government will be very much involved. On the revaluation of rates in Dublin, it is hard to justify such a 40% increase. It does not stack up. I would certainly appeal that decision.

If Deputy Wallace was raising the role of the investment bank, the Minister, Deputy Richard Bruton, has stated that there are many opportunities for the micro-finance fund, the loan guarantee and the banks. We are very much benchmarking the banks to give out the money. One must remember that our banks are now domestic banks. They are back here in the local domestic economy. Clearly, it is about supporting the role. However, I am not disagreeing with Deputy Wallace. An investment bank is something that was in the Action Plan for Jobs. It is something on which the Government must make a decision in the future.

We are now asking the banks to do better than they are doing. I am not here condoning the difficulties business people are encountering where they are experiencing considerable difficulty in getting loans from banks. We advise going through the process, appealing the decision, going to the Credit Review Office and noting the loan options provided by Government, such as the microfinance fund and the loan guarantee, which facilities those in business should use.