Dáil Éireann Debate, Wednesday - 20 July 2016
41. Deputy Richard Boyd Barrett asked the Minister for Jobs, Enterprise and Innovation the specific plans she has to assist struggling small businesses, particularly in towns that have felt the adverse effects of the proliferation of large multinational retail chains; and if she will make a statement on the matter. [22777/16]
Amharc ar fhreagraThe Minister, who represents the constituency of Dún Laoghaire, will be acutely aware of the pressure on small and medium enterprises in Dún Laoghaire town and the huge number of businesses that have closed, leaving many shops vacant, which is a picture that is probably repeated in many towns around the country. While there are many factors involved, the most significant is the impact of large multinational retail chains on small business.
Has the Government considered the introduction of a progressive rates system which essentially gives a break to small and medium enterprise and gives them a leg up in terms of the competition they face from large multinational companies? This is commonplace in places like France, Scotland and elsewhere.
As Minister for Jobs, Enterprise and Innovation, I am committed to increasing sustainable employment and supporting businesses across all sectors of the economy and in every town and village in the country. A key priority of this Government is to improve the living and working environment of local communities and to increase their potential to support increased economic activity into the future.
My Department provides many supports to assist small businesses to start and grow. The 31 local enterprise offices offer financial and soft supports in the form of training and mentoring to small and microenterprises across the country.
The implementation of the eight regional action plans will greatly benefit local economies, facilitating the development of local businesses and thus encouraging occupancy in work space and commercial properties in towns across the country.
Through the work of the retail consultation forum, which I chair, I support the work of the town centre revival working group. This group, the membership of which includes retail representative bodies and public sector bodies, is working towards the preparation of a framework for town centre revival. The framework will encourage collaboration between key stakeholders to implement initiatives to create and support vibrant town centres.
However, responsibility for planning rests with my colleague, the Minister for housing, planning and local government. The Minister, Deputy Coveney, has responsibility for the retail planning guidelines which duly recognise that vibrant and viable town centres are the lifeblood of the local community and local economy. The guidelines set out the key policy objectives which should guide planning authorities in addressing retail development within their development planning role.
I come from a small village in County Galway where many of the shops that had been there for up to 70 years are now closed.
There are many facets to the difficulties that small enterprise in towns and villages face, including parking charges, planning issues and the impact of recession in terms of cuts to people's income and so on. A significant factor in this regard is the impact of large multinational retail chains. These chains are draining people away from the small retail businesses in towns and villages.
I am proposing - as I did by way of motion to Dún Laoghaire-Rathdown County Council, which was passed unanimously - that, as is done in many other European countries, we introduce a progressive rates system such that the small butcher, baker and candlestick maker pays a lower rate than the multinational chains, thereby giving small business a break. That is not a radical left proposal: it is just a practical proposal that should be taken up nationally. To me, it is crazy that a bank-----
Gabh mo leithscéal, a Theachta, ach tá an t-am thart. Tá an Teachta Niall Collins ag iarraidh cúpla focal a rá. Beidh an Teachta Boyd Barrett in ann teacht isteach arís.
In regard to issue of commercial rates as referred to by Deputy Boyd Barrett, there are three Deputies in the Chamber, Deputies Quinlivan, Neville and I, who were members of the Limerick local authority which brought in an incentivised scheme to try to mitigate the rates burden on new businesses. My own personal view is that that only tinkered around the edges of the issue.
I refer the Minister to the preliminary census figures released in the last number of days. One of the most striking statistics is that there are almost 200,000 vacant dwelling units around the country. In Limerick, there are 8,500 vacant dwelling units, many of which are accommodation units above shops in our towns and villages. The core has been hollowed out of our small towns and villages consistently over the last number of years. What I am trying to impress on the Minister is the need for a bigger plan such that we are not just tinkering around with the commercial rates issue.
Deputy Collins, I am trying to allow in as many Deputies as possible.
When will the town centre revitalisation group report and is it likely to provide bigger ideas in relation to commercial rates?
I have to enforce the time limits because there are Deputies waiting to get in.
I hear what Deputy Boyd Barrett is saying about the progressive rates system, which was reiterated by Deputy Niall Collins. I am glad there are so many Limerick Deputies in the Chamber today.
Given the proliferation of large multinational retail chains, we are working on a town centre revival framework, including an action plan for the town centre revival. The action plan for towns is tasked with establishing town teams to carry out health checks, prepare town strategies and to identify and signpost supports that retailers can avail of. The primary concern of this group is to assist struggling towns by increasing footfall and the vibrancy of the town centres. As Minister for Jobs, Enterprise and Innovation, I cannot support either retail or the local authorities directly.
However, I am working with the Minister for regional development, rural affairs, arts and the Gaeltacht to ensure the work of this group is aligned with the aims of her Department's town and village regeneration fund. I will also be working with the Minister for housing, planning and local government in terms of his responsibility for overseeing the local authorities to communicate the recommendations of this working group and to ensure that the work of the group is complementary.
The rate can be set by the local authority but the system of rates is set nationally so this is the responsibility of the Government. I am asking for a change in the way we administer rates. In Scotland, rates were changed to give preferential rates to smaller businesses. A total of 60% or 70% of small businesses benefitted and got reduced rates as a result and it has helped reinvigorate small towns. This is a fairly standard policy in France, which is why its town and village centres sustain themselves far better than many of our town and village centres. I suggest that as part of this framework for supporting small and medium enterprises in towns, the Minister must think about a new rates system that distinguishes between a bank that might have the same square meterage but has massive profitability and turnover and a small flower shop or shoe shop. The Minister gets my point.
I know the Deputy is aware that the Commissioner of Valuation carried out a review of valuations in our county just recently. The Deputy mentioned Dún Laoghaire. The council has a shop front improvement scheme whereby it pays 50% of the shop front refurbishments costs up to €3,000. In our county, the vacant commercial premises incentive scheme involves the council refunding rates for businesses in premises that have been vacant for over six months. It gives 75% for the first year, 50% for the second year and 25% for the third year. Business priming funding is available for micro-enterprise within the first 18 months of the start up. There are businesses other than shops in Dún Laoghaire or any other town. They include financial businesses. I ask the Deputies to ask them to visit their local enterprise office and if they are under pressure, to look at Microfinance Ireland.
