Written answers

Thursday, 24 January 2013

Department of Jobs, Enterprise and Innovation

Retail Sector

Photo of Séamus KirkSéamus Kirk (Louth, Fianna Fail)
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To ask the Minister for Jobs, Enterprise and Innovation if he will consider establishing a retail strategy group; and if he will make a statement on the matter. [3326/13]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The Government recognises the importance of the retail sector to Ireland’s economy. It is employment-intensive, and covers every community in the country. The combined wholesale and retail sector employs almost 273,000 people in Ireland – that is almost 15% of our total workforce.

In recognising the importance of the sector to the economy, the 2012 Action Plan for Jobs signalled out the sector as one with employment potential and contained a number of measures aimed at supporting the retail sector specifically.

We have also introduced a number of initiatives of particular assistance including:

- Reduction in the VAT rate from 13.5% to 9% on a range of labour-intensive services, with a particular focus on the hospitality sector.

- Introduction of the Credit guarantee scheme

- Reform of wage setting mechanisms

We are also working to reduce the level of compliance on small businesses, and as part of the Action Plan for Jobs developed the business regulation website and aim to deliver a 25% reduction in administrative burdens imposed on business and enable online compliance with regulations where possible. In addition, initiatives by the Companies Registration Office regarding online filing and the forthcoming Companies Bill will ensure a more efficient operating environment for enterprise. During 2012, an audit of 159 licences for key sectors was conducted which identified potential to reduce considerably the burden of compliance with licenses. I will seek to prioritise actions in this area for the retail sector in the coming year.

I frequently meet with representatives of the retail sector and hear the challenges they face, including in relation to the costs of doing business. My officials have also held separate discussions with retail representatives. These engagements have assisted us in implementing the commitments in the Action Plan for Jobs and in identifying any further actions that can be taken to support the retail sector.

I am currently finalising the 2013 Action Plan for Jobs on behalf of the Government and I can confirm that it will include further actions aimed at supporting the retail sector. My Department will continue its on-going engagement with representatives of the retail sector. These engagements have proven very useful in their current format and I do not envisage setting up a separate retail strategy group at the present time.

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