Dáil Éireann Debate, Tuesday - 2 October 2012
252. Deputy Bernard J. Durkan asked the Minister for Jobs; Enterprise and Innovation the extent to which upward only rent reviews have been recorded as a factor causing job losses in the commercial or retail sectors in each of the past three years to date; and if he will make a statement on the matter. [42061/12]
View answerThere is no specific data available on the extent to which upward only rent reviews have been recorded as a factor causing job losses. However, while upward only rent reviews are one of a number of factors which are causing pressure on the commercial and retail sectors at the present time, there are other factors influencing decisions of individual retailers to cut jobs. The retail sector has seen a disproportionate fall in activity due to the fall in consumer confidence and a reduction in discretionary spending by the Irish consumers.
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 – that is almost 15% of our total workforce. Recognising its importance to the economy, the Action Plan for Jobs includes a number of specific measures aimed at supporting employment in the retail sector in 2012. These actions are for delivery across a number of Departments and agencies and include a renewed focus on prompt payments, an assessment of the potential for future development of the retail sector, the introduction of a statutory code of practice for grocery goods undertakings and providing support to retail firms seeking to internationalise.
Other more general measures in the Action Plan will also help to support employment the retail sector including:
- improved access to finance for businesses;
- the enactment of legislation to reform the statutory wage setting mechanisms; and
- acceleration of the programme of revaluation of commercial premises, which will provide a basis for the adjustment in commercial rates.
Initiatives which the Government introduced as part of the Jobs Initiative in May of last year will also continue to help support employment in the retail sector. These include the halving of Employer’s PRSI on earnings up to €356 per week and the reduction in the 13.5% VAT rate to 9% on certain goods and services.
