Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Jobs, Enterprise and Innovation if he has had any recent meetings with RGDATA; and if he will make a statement on the matter. [18972/13]

John Perry (Sligo-North Leitrim, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am acutely aware of the importance of the retail sector in the Irish economy. The combined wholesale and retail sector in Ireland employs 273,000 people which is one in every seven working in Ireland at the end of 2012. The sector also supports employment in other related services such as transport and logistics. A number of bodies represent different parts of the retail sector, with RGData representing independent family-owned grocery shops, convenience stores, forecourt stores and supermarkets. I launched the first of AIB's series of outlook reports for the SME sector on Friday, 19 April. It is a very detailed report on the retail sector. As that report was focused on the retail sector and undertaken in conjunction with RGData I met with the director general of RGData at that event and on numerous other occasions. In addition RGData was part of the local jobs alliance delegation which met with the Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, in September 2012.

In addition, a representative of RGDATA, the Retail Grocery Dairy and Allied Trades Association, sits on the high level group on business regulation, which I chair, so we engage regularly on issues relevant to the retail and small business sector through that forum, including the meeting on 30 January last. RGDATA has been active in making input in many areas affecting the business climate and many of the reforms introduced by the Government have responded to these concerns.

In recognising the importance of the retail sector to the economy, the 2013 Action Plan for Jobs contains several measures aimed at supporting the sector. We are currently introducing new initiatives including the rationalisation of 25 retail licences and provision of a single retail licensing system which will cut down on regulation; promoting a proposed competitive voucher scheme to assist retailers to go online and strengthening the Credit Review Office to deal with problems in getting access to finance.

Additional information not given on the floor of the House

There will also be the integration of local authority business support into a stronger local enterprise office to support the emergence of a better local environment for micro and small businesses. In addition, the Government has committed to establishing an interdepartmental group to undertake a short examination of possible further measures to assist the retail sector, which could, for example, be considered in the context of the budget or the 2014 Action Plan for Jobs. The group will comprise key Departments and will consult with relevant stakeholders across the retail sector as part of its work. RGDATA will be one of the representative bodies which is consulted as part of that examination of the retail sector.

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I acknowledge the work the Minister of State is doing in tidying up the licensing side of matters. Concerns have been expressed by RGDATA and other small business organisations about the practices adopted by AIB and Bank of Ireland regarding banking charges. For example, there has been a 165% increase in lodgment fees by AIB, the State-owned bank to small business. I know of a practice by Bank of Ireland, one I suspect also used by AIB, of designating certain days for lodging coin and others for lodging cash. As an experienced businessman, the Minister knows a small business will not know what day it will have to lodge notes or what day, coins. Has the Department expressed concerns to the banks about these kinds of decisions? The banks are making day-to-day business banking more expensive and more awkward. Has the Minister had any interaction with the banks on this? Is the RGDATA report quoted by the Minister earlier sponsored by AIB?

John Perry (Sligo-North Leitrim, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Yes, it is a joint report.

Many concerns have been raised about the quadrupling of the charge for the handling of every €100 to 14 cent. I plan to raise this issue with the banks. It, as well as cheque clearances, is a significant charge for a small business’s bottom line. I am disappointed they raised the charges for handling cash. Representatives from AIB and Bank of Ireland will attend the advisory group on small business, which RGDATA sits on too, to discuss access to credit. This matter can be raised with them as a follow-on question.

The report on retail trends launched last week by RGDATA pointed out how there has been a seismic shift to discounters. It found that three out of four retailers are seeing consumers buying more items on special offer. Up to 57% of retailers experienced a decrease in turnover between 2011 and 2012, while 16% reported an increase. A key finding from the survey was that half of those who took part in it plan to improve or expand their business in the next three years while one out of five expects their business to be taken over by a family member.

I intend to raise the issue of increased bank charges and stacked up hidden costs for small businesses with the banks at the next advisory group meeting.

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

It would be better if AIB did fewer glossy reports telling us what we know and took business seriously to give them a fair pitch in financing day-to-day business. What is happening is ridiculous. The banks are doing the bank robbery and robbing business. As the Government is the prime shareholder in AIB, will the Minister point out forcefully that these practices are not helping the growth of the economy and are actually destroying businesses trying to create jobs?