Denis Landy (Labour) | Oireachtas source

I welcome the Minister of State, Deputy Jan O'Sullivan, to the House and wish her all the best for 2014. I also commend Senator Paul Coghlan and his colleagues, Senators Cummins and Mullins, on bringing forward this legislation. It is an important and topical issue that surfaces regularly. A number of months ago my colleagues in the Labour Party group, including Senator Whelan and me, together with many others, tabled a full Private Members' motion on this very issue of rural retailing, which the Minister of State took at the time. During the discussion, she indicated to Members that an interdepartmental task force was sitting in respect of the issue of rural retailing and that she hoped its findings would come to fruition shortly. As an aside, she might indicate whether this has happened. At the time, I also called for a task force on rural retailing to be set up, towards which the Minister of State was highly positive. I hope she may be able to respond to these two issues in her reply today.

This Bill aims to alleviate some of the pressure on the small to medium-sized enterprise, SME, sector and on artisan retailers in main streets and town centres nationwide by levelling the playing field to a degree from a competitive perspective. Unfortunately, however, much as all Members, including the Bill's mover, Senator Coghlan, would wish to find some way to redress the imbalance and the misguided planning decisions that have brought us to this position vis-à-vis out-of-town shopping developments, the horse has bolted on that issue. I do not believe it will be possible to address this problem in the fashion one would wish at this time. Independent family-owned shops in Ireland employ 90,000 people and contribute €3.5 billion to the national Exchequer. A total of 75% of what they sell is produced in Ireland or sold through Irish suppliers. The money people spend in these shops stays in local communities and more initiatives like this Bill are needed to protect that particular part of the market. I did some research on this issue in the lead-up to my party's own retailing motion with a view to levelling the playing field for Irish-owned businesses with respect to those multinationals with which they are trying to compete. In my home town of Carrick-on-Suir, for example, 24% of all retail units on the high street are lying vacant. Subventions are needed by the Government to allow local authorities greater flexibility to pursue policies that promote businesses in town centres, such as the promotion of pop-up shops and once-off-type shopping.

An Taisce drew up a report recently on acquiring some funding for this area through the charging of a 50-cent-per-hour parking fee on all out-of-town shopping spaces nationwide. This would amass €16 million per year, which could be put back into the very issue this Bill is trying to address. It also is clear from my research that this Bill may encounter some obstacles, although I sincerely hope it will not. However, I clearly discern a difficulty in respect of retrospectively attempting to implement this type of legislation. The Minister of State may respond to that point. There is no doubt, however, that were the Bill passed, it would lead to a significant redistribution of profits from cash-rich multinationals back into local communities and local town centres to address the pre-existing imbalance. While I have conducted some limited research on this area since Members have had sight of the Bill, I am led to believe, however, that the valuation of properties in shopping centres and shopping malls works on the basis of the rent these units pay. Moreover, the rent is based on the availability of free parking, which is factored into the rental. Whether this Bill can be implemented on top of that type of valuation is a matter the Minister of State also might address.

I sincerely hope something can be done in this regard but it comes back to Senator Byrne's observation - I believe Senator Cummins also mentioned it - that it all hinges on the Valuation (Amendment) (No. 2) Bill 2012, which was introduced into this House in September 2012. One must wait for the new valuation system to be implemented and set across the country to ascertain how that Bill will make a difference between what is being charged for town centre retail shops and what is being charged for out-of-town multi-storey and multinational-type shopping arcades. In addition, we must ensure that where greater amounts of money are collected on a pro rata basis from the shopping centres, which I am led to believe will happen on foot of this Bill, this generated money is used by the local authorities to provide incentives to give a better opportunity and a better chance to retailers in town centres.

I am interested to hear the Minister of State's response to this important Bill. As Senator Paul Coghlan stated, it is limited to a specific purpose. It is a short Bill. If it can be implemented, it will be very effective. In saying that, I am cognisant from my research that there are potential difficulties and I would like to hear the Minister of State's response to them.

I support the work that Senator Coghlan has done with his colleagues in order for us, as Members of the Oireachtas, to show that we are listening to people with small shops and business in rural areas who are struggling to keep their doors open on a daily basis, and that we can provide some hope to them that through the legislative system we can do something that will make it a little easier for them. I thank Senator Coghlan again and I thank the Minister of State for coming to the House.