28|Retail News|October 2013|www.retailnews.ie
Retail Ireland: Monthly Update EXCHEQUER CAN SAVE MILLIONS IF BLACK MARKET IS TACKLED RETAIL Ireland believes the Government's work to correct the public finances must include efforts to tackle Ireland's enormous black market in tobacco, fuel, pharmaceuticals, entertainment, and counterfeit products. We made the announcement after several recent seizures, including nine million illegal cigarettes worth €4.3m in Co. Louth, and two oil laundering plants, in County Monaghan, with a potential loss of over €3m in tax. Our recent report, conducted for Retail Ireland by Grant Thornton, estimates the loss to the exchequer to be at least €400m per annum. If even some of this money could be recouped, it would greatly help the Government reach its targets, while also protecting retail Retail Ireland chairperson, jobs and boosting the domestic economy. Frank Gleeson. Some of the measures to tackle the black market include: • A freeze on excise duties and taxes, to prevent the price between legal and illegal products from widening; • Prioritising Garda and Revenue Commissioner resources to detect and deter illicit trade; • Increased penalties for those convicted, and new criminal penalties for consumers who knowingly purchase illegal products, including illicit tobacco; • Fuel duty equalisation, with a rebate system for farmers, and an end to dyeing fuel marked for agricultural use to prevent laundering; and • Consumer awareness campaigns to inform people of the damage black market purchases do to them, their communities and their country. “These policies, and many others, should form part of a strategic plan to tackle illicit trade, led by a Government steering group and comprised of Government departments,” said Retail Ireland Chairperson, Frank Gleeson. “Such a joined-up approach will see the Exchequer benefit, and criminals lose out.”
Sales Dip in August Shows Fragility of Retail Sector CSO figures published for retail sales in August showed the continued fragile state of the domestic economy and consumer spending. The value of sales, excluding motor trades and bars, fell by 0.3% in August compared with the same month last year. The end of the very fine weather that we enjoyed in July also saw some very sharp month-on-month falls, with sales of hardware items (which include garden furniture and barbecues) down over 8% in August compared with the previous month. Retail Ireland believes our sector must be put on a sustainable path to recovery. Director Stephen Lynam said “The Government must instil confidence in consumers, stimulate domestic spending, reduce the cost of doing business, freeze consumer charges and taxes and tackle the black market. If that happens, sustainable growth in the domestic economy is possible.”
Retailers and Suppliers Agree on Best Practice A NEW initiative where retailers and suppliers in the food supply chain agree to comply with a set of principles of good practice was been launched in Brussels last month. The initiative is supported by seven representative bodies (including European retail trade association EuroCommerce) and already 82 companies have signalled their intention to sign up. Retail Ireland is a member of EuroCommerce and has urged Irish retailers to do so. The principles are simple and common sense: • That all agreements should be in writing. • That unilateral change to contract terms shall not take place unless such a possibility has been agreed in advance. • That all agreements are complied with. • That information is exchanged in strict compliance with competition law. • That all contracting parties in the supply chain should bear their own appropriate entrepreneurial risk. • That there shall be no application of threats in order to obtain an unjustified advantage or transfer an unjustified cost. Authorities in Brussels and throughout the EU are considering this matter. At an Irish level, the Government had previously indicated it would seek to impose a costly statutory code that would impose a heavy and unfair regulatory burden on retailers, that will ultimately be paid for by consumers. This initiative, with the backing of retailer and supplier groups, ensures fairness without imposing huge costs. This win-win arrangement should be given support over the coming months to thrive. For more, see our website. www.retailireland.ie
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