Bernard Allen
Ceist:78 Mr. Allen asked the Minister for the Environment Heritage and Local Government if he proposes to amend S.I. No. 494 of 1998 regarding maximum retail floor space. [16801/03]
Priority Questions. - Retail Sector.
Current land use policy on retailing is set out in retail planning guidelines issued as ministerial guidelines under section 28 of the Planning and Development Act 2000. These guidelines came into force on 1 January 2001 and replaced earlier interim retail planning guidelines issued in 1998. The purpose of the retail planning guidelines is to assist local authorities in addressing retail development in the context of their development plans and in assessing applications for planning permission, to guide retailers and developers in formulating development proposals and to ensure that preferred locations for retail development are guided by considerations of sustainable land use, including access by public transport where feasible.
In relation to the capping of the permitted size of certain retail developments, the guidelines prescribe a maximum area of 3,000 square metres net retail floor space for food store development, except in the greater Dublin area, where the cap is 3,500 square metres. The guidelines also prescribe a maximum area of 6,000 square metres gross retail floor space for large scale retail warehouse development. When the retail planning guidelines were published it was indicated they would be reviewed in light of experience with their operation. I am now activating such a review, which will need to consider a number of factors including current and prospective economic circumstances, inflation, land use and sustainable development issues and developments in retailing. It is intended the review will be informed by wide consultation with a view to ensuring that all interested parties have the opportunity of making an input before any decisions are taken.
Can the Minister give an assurance that any pressure being put on his Department from multinational superstores will be resisted, along with any threats that they will go elsewhere if they do not get their way? I was surprised to hear that the Minister, Deputy Cullen, was taken around one of the major superstores in Scotland by its owners some time ago. The Department must balance the need for competition with the need to ensure that our towns and villages remain viable and retain their retail outlets which are there for people's convenience, especially those who cannot travel the long distances to the superstores on the outskirts of towns and cities. Taking into consideration that post offices are being shut down, banks are closing some of their branches and the ESB is closing some of its shops in rural areas, will he try to ensure that rural Ireland and the villages and towns outside major population areas are not denuded of essential services?
There are pressures from both sides in this regard and it is important to arrive at a balance. It is the intention to ensure that all relevant considerations both from a planning and economic point of view are taken into account. It was clearly stated when the new guidelines came into operation a few years ago that they would be reviewed within three or four years, which has happened. There are different reasons for this. A couple of reports were drawn up by State organisations. A Forfás consumer pricing report stated that Irish foodstuffs and non-food consumer prices are among the highest in the euro zone. There was also the national competitive council statement on inflation. Some State reports urge us to look at these matters but it is a case of achieving a balance and trying to look at the issue from an economic and sustainable land use point of view.
When in Scotland on other business some months ago, the Minister took the opportunity to look at an operation of a well known multi-national organisation which had indicated some interest in setting up business in Ireland. He looked at this operation to see at first hand what it was about. It is a case of reviewing the issue and letting everyone have their say. There are competing pressures and it is important to look at the issue from a wide perspective.
The Minister of State must accept that even though inflation was running at 5% for a while, RGDATA pointed out that food prices were increasing at a rate of approximately 2.5%. Therefore, we cannot blame lack of competition for these increases. His Department should not fall into the trap of thinking that the introduction of super stores will mean a reduction in prices, or that as a result of wiping out smaller retailers and corner shops prices will not shoot through the roof. This is what has happened in other countries, including the UK. Will he ensure that a balance will be struck between competition, proper planning and sustainable development, particularly outside the bigger population centres?
That is the intention. As I said earlier, there is a current cap of 3,500 square feet in the Dublin area and 6,000 for other stores. However, some stores which were already erected exceed 6,000 square feet. There are probably stores which double the 6,000 square feet. Everyone is entitled to have their say. I agree with the Deputy that it is about considering the issue from every perspective. What is suitable for Dublin might not be suitable in the country. All parties will be given time to have an input.