RGDATA Budget 2022 submission urges government to keep business costs affordable

Specific budgetary measures sought by RGDATA include managing the costs of employment and supporting local regeneration

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Retailers’ organisation RGDATA has called on the government to support local regeneration and manage the costs of employment in its Budget 2022 Submission.

The association highlighted the challenges members have faced over the past year, stating: “Faced with Brexit and Covid-19 and their attendant economic consequences, businesses have had to make significant adjustments to maintain their operations and will be challenged for some considerable period. Ensuring that businesses are well prepared to support a jobs-led recovery is vital if Ireland’s general economic well being is to be secured.

“During the Covid-19 pandemic, the assistance of the State through support and relief schemes has been vital in assisting SMEs to retain staff, maintain their operations and continue to serve their local communities,” RGDATA continued. “It has also helped to ensure that there was sufficient money in the wider economy to allow families to live during the pandemic while some core parts of the service sector closed. It is important that any supports are ended gradually and take account of the level of recovery that is required for businesses operating in the service sector.”

Specific budgetary measures sought by RGDATA include managing the costs of employment.

“Employers having just faced through the trauma caused by Covid-19 and Brexit, are now facing the prospect of significantly increased employment costs through the promised introduction of a higher minimum wage/ living wage, mandatory sick leave and pension auto enrolment,” said RGDATA director general Tara Buckley.

“Collectively these three measures have the capacity to add significantly to the costs of employment and will disproportionately impact employers operating labour intensive models of employment,” she added. “For instance an average independent retail grocery outlet employs a ratio of up to four times more staff per square metre trading space than some of the larger international chains with whom they compete.

“Any increases in employment costs directly and disproportionately impact these retailers and place direct challenges on maintaining existing employment levels and creating new jobs. It is really important that any changes to pay, sick pay or pensions arrangements are tailored and balanced so as not to unreasonably burden employers and militate against increased employment – there is an opportunity in Budget 2022 to explore appropriate reliefs and schemes which can act to counter the impact for employers of imminent increases in employment costs.”

RGDATA is also calling on the government to support local regeneration and upgrading of the planning system, noting that independent retailers are key contributors to establishing and maintaining vibrant communities which are attractive places for people to live, work and visit.

The association also said it welcomed the commitment in the Programme for Government to the Town Centre First Policy and is encouraged at tentative steps that have been made to implementing this policy.

“However, if the policy is to succeed there needs to be a core focus on investing in co-ordination and capacity building to ensure that the Town Centre First Policy can be implemented,” Buckley said. “This will require Budget 2022 to provide funding allocations for a national body to co-ordinate the roll out of the policy nationally. This non-government co-ordinating body would be vital to support local capacity building (development of Town Teams, practical programmes to provide training and support services, upskilling local authorities etc).

“It would also promote the roll out of Collaborative Town Centre Health Checks nationally and assist towns in developing strategic plans for regeneration and renewal and shovel ready projects that can qualify for National and EU funding.”

RGDATA members can view the full submission by clicking here.

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