Mr. Tobin is going to run through some of those figures in a few moments.
If the supplier cost is 75% of the input cost, Irish retailers are, therefore, at a severe disadvantage when it comes to paying differentials or premiums. There are retailers who are purchasing products at a price which is similar to the retail price in the UK. This gives an indication of how challenging is the position.
Rent is unbelievably expensive in Ireland. Due to the fact that our law insists that all leases have an upward-only clause, there are 24,000 stores in Ireland in respect of which the rent is only going one way. There is a great deal of sharp practice among landlords. For example, the developer of a shopping centre may want to keep rents at a maximum. What will happen is that the developer will approach a retailer and will ask him or her to pay a premium of perhaps 20% or 50% more in rent. If the retailer refuses, the developer will state that a side letter will be written, which will be confidential in nature, and that the money involved will be rebated to the retailer and that no one will be informed of this. Neighbouring businesses will come to hear about the new rent precedent that has been set. Regardless of the legal recourse they decide to take in the context of expert arbitration, that precedent will have already been set and a new falsely inflated rent level will have been established for the market or specifically for that shopping centre.
Rent is an amazingly challenging cost for retailers. I was asked a question on radio this morning with regard to where all the money and profits have gone. I replied that the retailers who made the most profit are those who are most in trouble. Someone who owned three stores ten years ago may now have 30 and is now employing 300 people rather than 30. There will be 30 aggressive leases on those stores to which unbelievable rent levels apply. In the good old days, these people could get out without losing their homes.
Another fundamental cost relating to retailing in Ireland is wages. There is a 40% differential between wage costs in the Republic of Ireland and those that apply in the UK. We have the second highest minimum wage in Europe. I wish to place on record the magnificent response from the 311,000 people who currently work in the industry. I walked along Baggot Street and Grafton Street this morning and saw people queuing up to do a day's work. Most of these individuals have taken pay cuts and have been asked to work a four-day week. The response from the industry and those who work in it has been incredible. Due to the fact that they are working in stores which are quiet and in which the tills are empty, these people realise what is happening.
There are other minor costs such as VAT. Everyone is aware of the differential that applies in respect of VAT and utilities. A gentleman with whom I had a conversation yesterday informed me that the electricity for his store is €140,000 per year, which is incredible.
We are not representing manufacturers or suppliers at this meeting and I am delighted we can discuss with members the major issue for us, which is that of bad practice among suppliers in the market. I will ask Mr. Tobin, who employs 860 people, to inform members with regard to this matter.
Deputy Willie Penrose took the Chair.