Government under pressure to carry out election promises
Retailing lobby groups are pressing the new government to introduce the urgent reform needed to safeguard jobs within the retail sector.
Print16 March 2011
Lobby groups for the retail sector are putting pressure on the new government to carry out promises made during the election campaign. The new Programme for Government, agreed by Fine Gael and Labour is a promising start but there is a fear that conflicts within the new government might delay decision making.
A cautious welcome was given to the new Programme for Government by NFRN Ireland (National Federation of Retail Newsagents) president Joe Sweeney.
He said, “Whilst I greatly welcome a change in government I am cautious that a coalition will make policy less clear and a conflict of election promises could cause time delays in getting policies implemented.”
At meetings with both Deputy Kenny and Deputy Gilmore in advance of the election, common ground was identified between their manifestos and that of NFRN Ireland.
“It is reassuring to read in the new programme for government that some key issues facing retailers have been identified. Specifically I welcome the measures to reduce red tape, to reform the JLC rate structure and to combat the growth of illicit tobacco. I also gladly note that legislation to reform the upward only lease agreements and to reduce the VAT rate to 12% are set to be implemented. Whilst we would have liked to have seen a reduction in the employers PRSI contribution of 10.75%, we welcome the news that it will not be increased.”
Retail Ireland also said that the new government must follow through on election commitments to support the retail sector.
Retail Ireland director Torlach Denihan said: “The key challenge facing the incoming government is to restore consumer confidence and boost spending in the economy. To safeguard jobs in the retail sector urgent reform is needed to reduce key business costs, such as rent, labour costs and commercial rates, and improve access to credit.
“Legislation to address unsustainable commercial rents is needed urgently.”
IBEC gave a measured welcome to the new Programme for Government. The group welcomed the firm commitment to support job creation and tackle the budget deficit in line with the IMF/EU programme, but said any move to reverse the minimum wage reduction or introduce collective bargaining rights was at odds with the economic needs of the country.
IBEC director general Danny McCoy said: “Key programme priorities, such as the establishment of a jobs fund to support employment and the commitment to introduce no new taxes on employment, are welcome…. The government must move quickly to implement the programme and press ahead with important structural reforms already agreed with the IMF and EU.”
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