24|Retail News|November 2013|www.retailnews.ie
Retail Ireland: Monthly Update BUDGET 2014: WHAT IT MEANS FOR RETAIL RETAIL Ireland warmly welcomed the inclusion of a number of pro-retailer measures in Budget 2014. Indeed, many of the Budgetary measures adopted by the Government are ones which we here at Retail Ireland have long-campaigned for. We welcome, in particular, Revenue’s new stop and search powers as part of a package of measures to tackle the black market and illicit trade. Secondly, the establishment of an attractive tax incentive scheme for home renovations heralds a welcome boost for the DIY, hardware and home décor sectors in particular. Further, there is to be no change in all existing VAT rates, including the lower rate of 9% that applies to hospitality and tourism, including food service, and no change in excise duty on petrol, diesel, gas and home heating oil. However we are concerned about the potentially damaging impact of a significant increase in excise duty on alcohol. There has been an increase of €2 on a bottle of spirits and 50 cents on a bottle of wine. Retail Ireland was the only retail group to meet the Minister in advance of this year’s Budget. Our work for a retail-friendly Budget next year starts now.
Government’s Alcohol Policy: The Reality ON October 24, the Government finally published its long-awaited alcohol policy. It is likely that the existing RRAI voluntary code will be adopted as a statutory instrument and will be closely monitored and reviewed in two years. If the code is considered ineffective or the rate of non-compliance is unacceptably high, there exists a proposal to implement Section 9 of the Intoxicating Liquor Act 2008, which allows for “structural separation” of alcohol from all other in-store products. With this in mind, to avoid the costly and detrimental introduction of “structural separation”, Retail Ireland strongly encourages retailers to take all steps to ensure that the code works effectively and is seen to work effectively. Meanwhile, the policy also provides for the Government to set a minimum price for alcohol, which will be calculated based on the number of grams of alcohol in each product, at a level yet to be decided. The Government intends to introduce minimum pricing in tandem with the authorities in Northern Ireland, thereby minimising the potential for a return to the highly-damaging phenomenon of cross-border shopping.
Martin addresses Council Meeting
MICHEÁL Martin TD, Fianna Fáil leader, is pictured addressing the most recent Retail Ireland Council Meeting. Also pictured are Stephen Lynam, Director, Retail Ireland, and Frank Gleeson, Chairman, Retail Ireland.
Proposed Statutory Grocery Code a Bad Call OCTOBER saw the publication of the Oireachtas Joint Committee on Agriculture, Food and the Marine’s report on the grocery sector. The report makes a total of 13 recommendations, including: • A statutory code of practice for retailer-supplier relations; • The establishment of an ombudsman scheme for the supermarket sector; • A ban on below cost selling of alcohol and staple products; • Publication of the profits of large retailers. The report will now be considered by Government departments, who have no obligation to implement it. Retail Ireland’s position is that the introduction of a statutory grocery code of conduct is misguided and if implemented, will result in higher consumer prices. Explaining this position, Stephen Lynam, Director of Retail Ireland, stated: “A statutory code of practice will make it more difficult for retailers to negotiate the best price for consumers. The report also calls for price controls on staple goods, which would also push up prices. These measures would not benefit farmers, as retailers usually buy from suppliers, wholesalers and manufacturers. Those are the groups who stand to benefit. Irish retailers are committed to fair play, which is why many have already signaled their intent to sign up to the Supply Chain Initiative at EU level. This initiative is a much better way of ensuring a fair deal for consumers, retailers, suppliers and farmers.”
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