Midwest planning moratorium will cost
New regional guidelines threaten the jobs of many at Tesco and could cost Tesco €100 million in lost capital.
15 June 2010
New regional planning guidelines in the Midwest will result in the loss of 700 future jobs in Tesco’s operations, the supermarket has said.
Draft planning guidelines covering Limerick, Clare and north Tipperary are proposing that local authorities allow no net increase in floor space in large retail developments other than that arising from redevelopment projects.
Tesco claimed this moratorium on planning would cost the region E100 million in lost capital investment, and lead to a significant loss of jobs in Ennis, Shannon, Nenagh and Thurles.
“By restricting this planned investment, there may be a loss of tax revenue and continued growth in unemployment estimated to cost E5.5 million per annum,” Tesco said.
The group added: “Tesco are not involved in speculative retail developments, but rather seek to construct/occupy units where a proven need exists following detailed research and analysis.”
RGDATA has argued however that the planning recommendation represents “a practical and sustainable limitation,” given the overprovision of retail space arising from “the building boom up to 2008.”
Director general Tara Buckey told ShelfLife: “This is classic Tesco – engaging in some unsubstantiated scare mongering in an attempt to cajole councillors and planners to allow them build more and more out of town and edge of town retail developments.”
She added that “the job displacement factor” should be examined. “When a Tesco store opens in or usually outside a town this leads to the closure or curtailment of other businesses and the displacement of jobs right across the community,” she said.



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