Dáil Éireann Debate, Thursday - 22 November 2012
103. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which upward only rent reviews continue to remain a reason for closure or job losses in the retail or commercial sectors; and if he will make a statement on the matter. [52064/12]
View answerAs I informed the Deputy in response to a previous question on 2nd October 2012 PQ (Ref. 42061/12), there is no specific data available on the extent to which upward only rent reviews have been a factor causing job losses. While I am aware that upward only rent reviews are putting pressure on some enterprises in the commercial and retail sectors at the present time, there are other factors influencing decisions of individual companies to reduce jobs. The retail sector has, for example, seen a disproportionate fall in activity due to the fall in consumer confidence and a reduction in discretionary spending by Irish consumers.
Recognising the importance of the retail sector to the economy, the Action Plan for Jobs includes a number of specific measures aimed at supporting employment in the sector. These actions are for delivery across a number of Departments and agencies and include a renewed focus on prompt payments, the introduction of a statutory code of practice for grocery goods undertakings, the provision of support to retail firms seeking to internationalise, and the provision of funding for the up-skilling of workers in the sector.
Other measures in the Action Plan for Jobs which will also help to support employment the retail sector include:
- improved access to finance for businesses;
- the enactment of legislation to reform the statutory wage setting mechanisms;
- supports to business to help them manage their energy costs; and
- the acceleration of the programme of revaluation of commercial premises, which will provide a basis for the adjustment in commercial rates.
Other 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. The most recent retail sales index has seen an increase in activity in the sector and there have been a number of seasonal and permanent job announcements by this sector in recent weeks.
