Policies for the retail industry by Fine Gael and Labour are the right mix of measures to help retailers weather the recession, according to Retail Excellence Ireland.
On Thursday last Fine Gael issued its jobs and economic strategy document, following the publication of the Labour Party’s plans on Sunday January 30.
Fine Gael is proposing the following key policies for the retail industry: Create the legislative basis for tenants to implement a rent review in 2011 where the upward only clause cannot apply, thus allowing a market rent to derive, significant reform of Joint Labour Committees and consolidation of employment agreements into one employment law, a VAT reduction of at least 1.5 per cent of the more labour intensive 13.5 per cent VAT rate, a 50 per cent reduction in employers’ PRSI in certain cases, a strategy to reduce local authority rates.
David Fitzsimons, REI chief executive officer said: “Ireland’s retail industry employs over 250,000 people and the policies outlined by Fine Gael and the Labour Party will be central to our economic recovery. These policies will support jobs, reduce prices to consumers, and will greatly assist recovery in Ireland’s largest industry - retail.
“The mix of measures being proposed in the policies of Fine Gael and the Labour Party address the key issues of commercial rents and wage costs in the retail industry. They propose practical and straightforward measures that, if implemented, will provide a significant boost to many Irish retail businesses.
“In particular, we support the proposals to abolish upward-only rent reviews for all commercial leases.”
