Viewing retail through a new lens

Transcription

1 Submission to the Minister for finance Submission to the Minister for Finance Budget 2019 Budget 2018 Viewing retail through a new lens

2 Introduction The retail sector is Ireland s largest employer. With a footprint in every town and village in Ireland, it is the country s most geographically and socially diverse industry. The wholesale and retail sector employs 295,000 people accounting for 13.3% of total employment in Q The majority of the 46,595 retail and wholesale enterprises operating in Ireland are small businesses with 87% of businesses employing less than 10 people. The sector is also the biggest contributor to the Irish Exchequer, generating 22% of total tax receipts in Ireland. This is 66% higher than Ireland's second largest sector, financial services, which accounts for 13%. Since 2013, tax revenue for the sector has grown by 34% has been a challenging year, but overall a positive one for the Irish retail sector. Retail sales values grew by 2% in quarter one compared to the same quarter in 2017 and consumer sentiment remains relatively strong. Nonetheless, CSO figures estimate GDP to have grown by 7.2% in , while retail sales values grew by 3.9% in 2017, highlighting retail sales are growing at a far slower rate than the wider economy. The retail sector has seen increasing pressure on several of our input costs over the last 12 months. Labour, rent, local authority rates and insurance costs have all increased significantly in that period. Allied to this cost recovery in the market is challenging, as competition has driven goods prices back to 2000 levels. Our members report that many of the gains in sales values have been undermined and eroded by this growing cost base. A healthy retail sector is vital to the Irish economy and to the commercial life of our towns and cities. Employment in this labour-intensive sector has grown by 5.1% or 14,400 jobs, since These growth figures are very disappointing when you consider that employment in retail declined by over 45,000 from a peak of some 320,000 in As technology and consumer behaviour changes, retail is undergoing a structural transition, which is already changing the skills required and roles available within the sector. To permit job growth and create career opportunities within our industry, Retail Ireland is expanding and developing its education and skills training and actively promoting retail as an exciting and rewarding career path. The UK s decision to leave the EU poses significant challenges and presents potential risks to the Irish retail sector. The most obvious short-term impact is the devaluation of sterling against the euro and the impact the falling value of the pound is having on retailers in the border area. This has led to the return of cross border shopping and resulted in a significant jump in online shopping in all parts of Ireland, in particular from UK online retailers. Greater volatility in the future could adversely impact the retail sector. In the long-term, Irish retailers will need to diversify their sourcing strategy to alleviate disruption to their supply chains, so that they remain competitive. Retail Ireland believes that Budget 2019 should be viewed as an opportunity to strengthen growth within Ireland s largest industry and largest private sector employer. Our objective is to see the delivery of much needed strategic investment, through new and existing funding structures, and the protection of the retail sector from internal and external risks. Our submission sets out several measures which will help put the retail sector on a path of sustainable growth. This mix of actions will grow confidence within the sector and ease the tax burden on consumers and retailers, which will in turn help maintain growth and enhance consumer spending power. 1 RTE, Economic growth for 2017 revised down to 7.2% from 7.8%, accessed 23 July 2018, < 1

3 The following is the basis for our position: Education Retail Ireland proposes that government should produce a credible response to the underfunding of tertiary education and develop a sustainable model based on contributions from the state, individuals and business. In-work and life-long training should be prioritised in future education funding models. Until this is done retailers support the allocation of a greater share of the National Training Fund budget towards the Skillnet programme to allow networks, such as Retail Ireland Skillnet, access to increased funding to meet the everincreasing demand from member companies and retail employees alike. At the same time, additional support and resources should be allocated to the creation of new apprenticeships to support industry-led consortiums at the assessment and development stages. Brexit In the context of Brexit, retailers will need support and resources to re-align their business models in order to offset the threat posed by Brexit to them and consumers. Retail Ireland urges government to put in place funds to support retailers adapt their businesses to the worst impacts of Brexit and succeed into the future. To support retailers and reduce disruption to supply chains and costs relating to delays in transit, a specific funding stream should be introduced to allow for the modernisation of customs procedures in advance of Brexit. Fulfilling retail s infrastructure needs To deliver balanced regional development additional funding for the Town and Village Renewal Scheme is needed to provide for the implementation of the Framework for Town Centre Renewal. A core part of improving the attractiveness of our town and village centres in the future will be the roll out of key infrastructure such as transport links and broadband. Existing and planned investment in community policing must also be protected and enforcement and sanctions on the sale of counterfeit goods and the unlawful sale of ordinary goods, regarding fuel laundering, illicit tobacco and counterfeit medicines along the border increased. To fulfil the growing gap in our national recycling infrastructure, plans to develop a secondary raw material market should be accelerated. Protecting consumers and retailers from rising costs To protect consumer sentiment and support disposable income growth the Government should implement a freeze on consumer taxes and duties on consumer products and retain the 9% VAT rate for the food service, newspaper sales and hairdressing categories. Furthermore, cutting income tax will boost spending by putting more money into consumers pockets and ultimately benefit exchequer revenues through increased tax generation. Feedback from retailers tells us that rising business costs are reducing the sector s competitiveness. To change this, government need to act to control increases in areas controlled by them, such as the National Minimum Wage and levies attached to utilities, and every effort should be made to ensure input cost differentials with NI/UK are not exacerbated by policy. Modernising the retail sector To modernise the retail sector a greater share of government funded business initiatives should be allocated towards capital investment, business expansion and in-work training for Ireland's largest industry and largest employer. To meet consumer demands for an omnichannel shopping experience across the country and maintain competitiveness in our sector, Retail Ireland proposes the introduction of a scheme based on the current R&D tax credit system which would allow retailers to offset the cost of web developments against their VAT costs. In order to support retailers and suppliers, Retail Ireland urges government to mandate state agencies to support ongoing work by large and mid-sized retailers who are providing international supply chain opportunities and training to smaller producers. 2

4 Education Apprenticeships and in-work training The retail sector takes the provision of further education and the continuous upskilling of its staff very seriously. The industry strives to build long term careers, for school leavers, industry switchers and skilled professionals. Retail Ireland members aim to significantly invest in work-based learning over the coming years through the development of a new retail apprenticeship programme and our continued enhancement of our Skillnet education and training modes of learning. Since its inception, Retail Ireland Skillnet has provided 574,000 training days, while over 15,000 retail employees have been upskilled through our qualified training programmes. In-work training provides employees with an alternative to traditional educational courses. Work-based learning is designed to help people working in the retail industry gain practical skills and knowledge not just academic skills. Investing in career development opportunities is seen by our members as the best way to attract and retain talent, and to expand the skills base within the Irish retail sector. In conjunction with the National Apprenticeship Council, Retail Ireland has been working to develop a retail apprenticeship programme which is now at an advanced stage of development and will commence in Our retail apprenticeship programme aims to provide exciting career opportunities and career paths for new entrants, existing employees and career changers across local communities in Ireland. To meet the Government s commitment to apprenticeships of doubling the number of new apprentices registered to 9,000 by 2020, Retail Ireland believes that additional support and resources need to be provided to industry-led consortiums at the assessment and development stages of new apprenticeships, to improve delivery times and meet set targets. Skills shortages are becoming increasingly apparent across a broad range of sectors, including retail. The education system s ability to meet this demand has been undermined by years of under-investment during the economic crisis. As part of its response to this challenge, the Government introduced the first of three increases to the national training levy in Budget This has highlighted two major concerns for business. In its current configuration, the levy is little more than an earmarked tax' which bears little relation to business upskilling priorities. The government has given a commitment that the final two levy increases will be subject to the implementation of the necessary reforms to ensure that employers have a greater role in determining the priorities and strategic development of the National Training Fund (NTF). However, a major reorientation of the Fund will be required to develop demand-driven schemes that would enable business to source relevant state-supported training services for existing and potential employees. The supposed reason for increasing the levy was to address the higher education funding deficit. In fact, the increase is an attempt at a short-term fix due to the absence of a credible and more sustainable solution. 3

5 NTF supported programmes which are not meeting explicit employer-defined upskilling or reskilling should be discontinued or funded from alternative exchequer sources. A new NTF supported cost reimbursement scheme which would enable employers to choose suitable training services from individual accredited education and training providers should be introduced. The Government should produce a credible response to the under-funding of tertiary education and develop a sustainable model based on contributions from the state, individuals and business. Allocate a greater share of the National Training Fund budget towards the Skillnet programme to allow networks, such as Retail Ireland Skillnet, access to increased funding to meet the ever-increasing demand from member companies and retail employees alike. Fund additional support and resources to industry-led consortiums at the assessment and development stages for the creation of new apprenticeships. Fulfilling retail s infrastructure needs Town centre regeneration The recovery in our sector is uneven, with the greater Dublin area and other urban areas continuing to record the strongest growth. Regional locations continue to lag. Brexit and intense competition from pure play online retailers are posing a major challenge to the longterm sustainability of the sector in these areas. Between Q2 and Q3 of 2017 the proportion of cars parked in Northern Ireland shopping centres with an Irish registration increased from 32% to 48%. Previously, it was typically the Border counties that were affected by cross border shopping however, with the sharp increase in online shopping, other parts of the country are now affected by the sterling depreciation. As a result, retailers are focussing investment on better performing high streets, shopping centres and retail parks. Across the regions, retail accounts for between 12.5% and 15.3% of total employment. Approximately 70% of those employed in the sector are based outside of Dublin, which is much higher than in sectors such as ICT and financial services where less than 50% of jobs are outside the Dublin area. Retail Ireland welcomes the launch of Project Ireland 2040, its focus on supporting enterprise and employment in rural areas, and its commitment to improve infrastructure and connectivity for rural communities. The growth of online shopping at the expense of shop visits and fluctuations in consumer confidence is significantly contributing to vacancy rates in retail units across the country. Under investment in the public realm, streetscape and shop fronts in rural and urban areas have also added to the loss of footfall in recent years. Additional funding for the Town and Village Renewal Scheme to support economic development and enhance the attractiveness of our village and town centres is needed. Furthermore, to maintain and grow economic activity within our urban and rural areas visible, effective and responsive policing is required. Our members report a significant increase in 4

6 robberies and retail focused crime in recent months. Only greater policing resources will help curb this rising trend. To support regional regeneration and retain and attract new retailers to our rural and urban areas, the speedy roll-out of high speed broadband and improvements in mobile coverage in rural areas is essential. This will allow Irish retailers to capture the benefits of e-commerce and enable regional retailers to enhance their physical stores using new technologies. Ensure funds for rural development and urban regeneration under Project Ireland 2040 deliver balanced regional development. Increase funding to the Town and Village Renewal Scheme to provide for the implementation of the Framework for Town Centre Renewal. Ensure existing and planned investment in broadband rollout is protected. Increase enforcement and sanctions on the sale of counterfeit goods and the unlawful sale of ordinary goods, regarding fuel laundering, illicit tobacco and counterfeit medicines along the border. Prioritise funding for community policing. Recycling infrastructure needed The Chinese government s decision, earlier this year, to ban imports of plastic material and other waste for recycling, means that significant public investment is needed now to develop adequate recycling infrastructure to handle domestic plastic waste within Ireland. The infrastructure deficit in Ireland in respect of the recycling of soft plastics is clearly exacerbating the current plastics challenge and must be addressed. According to EuroStat, Ireland collects 82% of plastic packaging and recycles 34% 2. This clearly points to a gap in our national recycling infrastructure. It is this gap, rather than potentially duplicating collection systems, or concentrating on short-term fixes that must be addressed to truly deliver the Government s commitment to the development of a circular economy for packaging. Retailers stand ready to use as much recycled material as technically feasible and available, provided that national infrastructure exists to provide a fully functioning secondary raw material market resulting in the availability, accessibility and affordability of food grade quality packaging. Address the infrastructure deficit in Ireland in respect of the recycling of soft plastics within the domestic economy by accelerating plans within Project Ireland Eurostat, Waste statistics, accessed 10 July 2018, < 5

7 Brexit Brexit alleviation measures Brexit leaves the Irish retail sector potentially exposed to higher logistic costs, loss of trade and supply chain disruption from the reintroduction of customs controls and duties. Therefore, it is vital that Budget 2019 takes decisive steps to offset risks that would add costs to the supply chain. According to new research, approximately two thirds of products on supermarket shelves have either been manufactured in the UK or transited through the UK for delivery to Irish shops 3. The cost of living is also expected to rise due to the impact of Brexit, according to ESRI analysis, depending on the nature of Brexit, it could raise the price level in Ireland by between 2% and 3%, with the effects being greater for those on low incomes than those on high incomes 4. Therefore, Irish retailers will need to diversify their sourcing strategy so that prices and consumer choice can be protected. To offset the threat posed by Brexit to the Irish retail sector assistance should be provided to help retailers prepare for Brexit and support trading through any period of disruption in the future. To support retailers and reduce disruptions to supply chains and costs relating to delays in transit, an investment programme to modernise and advance the use of technology at all Irish ports and airports and any other points of entry and exit to the State should be introduced. Investment in our regional and national road network would also reduce the impact of Brexit on Irish consumers and the retail industry. Budget 2019 should ensure potential business cost differentials with Northern Ireland and the UK are not exacerbated by policy decisions in areas such as the National Minimum Wage, changes to the 9% VAT to support the retail and tourism industry or new legislation such as the Public Health Alcohol Bill 2015, Waste Reduction Bill 2017 and Employment (Miscellaneous Provisions) Bill Due to the threat of increased cross-border shopping and black-market activity arising from a more volatile pound it is important that Budget 2019 allocate, additional resources to increase enforcement and sanctions on the sale of counterfeit goods and the unlawful sale of ordinary goods, regarding fuel laundering, illicit tobacco and counterfeit medicines along the border. Put in place funds to support retailers adapt their businesses to the worst impacts of Brexit and succeed into the future. Allocate a specific funding stream to allow for the modernisation of customs procedures in advance of Brexit. Ensure input cost differentials with NI/UK are not exacerbated by policy. Increase enforcement and sanctions on the sale of counterfeit goods and the unlawful sale of ordinary goods, regarding fuel laundering, illicit tobacco and counterfeit medicines along the border. 3 IIEA, Brexit and the Distribution Sector, accessed 10 July 2018, < 4 IIEA, Brexit and the Distribution Sector, accessed 10 July 2018, < 6

8 Modernising the retail sector Focused funding for the retail sector Irish consumers now expect omni-channel shopping experiences, with secure payment opinions as standard. Internet penetration in Ireland is rising with 82% of individuals using the internet in the past 12 months, 53% of these individuals made purchases online in the past 12 months 5. Recent data from the Central Bank shows that total e-commerce expenditure was 1.4 billion in March 2018, with 985 million and 412 million attributable to debit cards and credit cards, respectively. The March value is 10% higher than the previous year, although not all of this is accounted for by traditional retail 6. Research suggests that the majority of online purchases are made with cross-border retailers, who have no physical presence in Ireland and make a limited contribution to the Irish economy or communities around Ireland. Due to the recent fall in the value of sterling, there has been a considerable upsurge in online shopping with UK online retailers. Several retail categories have reached a critical point, where failure to act and embrace e- commerce in the short term will lead to closures and the gradual disappearance of certain retail formats from our high street. Retailers need to urgently align their stores, online shopping channels, engagement platforms and supply chains to meet growing consumer expectations. Unfortunately, falling consumer prices and rising business costs have prohibited Irish retailers to investment in this area, and small and well-established medium sized retailers continue to struggle to meet the challenge of investing and establishing an online shopping channel or upskilling and building key digital competencies amongst their employees. To wrestle back some of this international spend, retailers need help to take advantage of the possibilities that e-commerce presents. Such supports would significantly increase revenue for the exchequer, with minimal investment by the State. In 1. Budget 2019 the Government should: Introduce a scheme that allows small and medium sized retailers to offset the 4. cost of establishing an online presence. We propose the introduction of a 5. scheme based on the current R&D tax credit system which would allow retailers to offset the cost of web developments against their VAT costs. 6. Make sure that more SMEs can gain access to the online trading voucher by 7. expanding its upper limit on employment to 50 and turnover limit to 10 million. 8. Ensure existing and planned investment in broadband rollout is protected. Allocate a greater share of the National Training Fund budget towards the Skillnet programme to allow networks, such as Retail Ireland Skillnet, access to increased funding to provide accredited courses designed and delivered in conjunction with industry to address the challenges and opportunities faced by Irish retailers. 5 Eurostat, E-commerce statistics for individuals, accessed 3 July 2018 < 6 Central bank, Credit and Debit Card statistics, accessed 25 June 2018, 2018 < 7

9 Access to international supply chain opportunities The rise of online marketplaces is changing the way retailers sell online, access new markets and consumers. Online marketplaces are being used by international retailers in addition to their own e-commerce platforms and bricks and mortar stores. Irish retailers are committed to buying local and supporting Irish suppliers. To support local suppliers and the agricultural sector, Retail Ireland member companies are actively working to foster entrepreneurial skills and develop export opportunities for Irish food by connecting small local suppliers and manufacturers with global markets through online platforms. By giving such small producers access to their networks and allowing them take advantage of welldeveloped and sophisticated supply chains such suppliers now have access to a global marketplace way beyond their scale, offering them opportunities to grow exponentially. Mandate state agencies to support ongoing work by large and mid-sized retailers who are providing international supply chain opportunities and training to smaller producers. Allocate a greater share of government funded business initiatives towards capital investment, business expansion and in-work training for Ireland's largest industry and largest employer. Protecting consumers and retailers from rising costs Reduce the burden of consumer taxes Any cut in income tax should not be funded through increases in other taxes such as excise duties, VAT etc. By increasing these taxes consumers will not feel they have extra disposable income and the retail sector will not experience any appreciable increase in sales. In addition, we remain in fundamental disagreement with any move to introduce additional food taxes. The 9% VAT rate for special tourism-related activities has made a substantial contribution to those industries. It has also had the added benefit of supporting certain retail categories which fall within its remit. Categories such as food service, newspapers sales and hairdressing have all benefited from the reduction in their applicable VAT rate. Any move to increase this rate at this point would have a severely detrimental impact on sectors which have only recently stabilised and are only now beginning to look to return to a period of growth. While the hospitality sector may be experiencing significant growth, these sectors of retail who share their VAT rate continue to struggle with falling prices and slow growth rates. Furthermore, food service and hairdressing provide new labour market entrants with exciting career opportunities and career paths in every town and village in Ireland. Since it was introduced, the reduced rate has enabled these categories of retail to employ and train increasing numbers of apprentices, while also enhancing training programmes and other further education opportunities. Any move to increase their cost base at this point would inevitably impact their ability to sustain such activities. With the closure of JobBridge and the slow rate of growth within the whole retail sector, the abolishment of this special 9% VAT rate could discourage the creation and uptake of jobs and support for the retail apprenticeship within these categories of retail. 8

10 Additionally, Retail Ireland does not support an increase in betting tax in Budget 2019 or any move to increase the excise rate on diesel motor fuel or moves to align this rate with that of petrol. Implement a freeze on consumer taxes and duties on consumer products. Retain the 9% VAT rate for the food service, newspaper sales and hairdressing categories of retail. Refrain from introducing further sin taxes or increasing betting tax. Desist from increasing the excise rate on diesel motor fuel. Continue to ease the tax burden on Irish consumers Cutting income tax will boost spending by putting more money into the pockets of Irish consumers and ultimately benefit exchequer revenues through increased tax generation. Ireland s exceptionally high marginal tax rate discourages employment, investment and consumer spending. Our marginal tax rate deters the uptake of overtime work and limits the opportunity for productivity gains in a highly labour-intensive sector such as retail. Support disposable income growth by increasing the entry point to the 40% rate of income tax by 1,000 to keep ahead of wage growth. Reduce the higher marginal rate of tax for those earning over 70,000 by 1% and commit to reducing the all-in marginal rate for all employees to 47% over the coming years. Impose no new costs on retailers Since 2013 employment in the retail sector grew by 5.1% or 14,400 jobs. These growth figures are very disappointing when you consider that employment in retail declined by over 45,000 from a peak of some 320,000 in Since 2015, the National Minimum Wage has increased by 10.4%, with a further rise likely, effective January We believe that recent increases in the National Minimum Wage has been partly responsible for the stunted growth in numbers employed in the retail sector. After two recent hikes upwards, Ireland s minimum wage rate is the second highest in the EU and monthly retail wages in Ireland are the fourth highest in the EU. It should also be noted that according to the CSO in 2016, 155,100 workers were earning the minimum wage or less, and of this 26% were employed in retail. This would suggest that a little over 40,000 employees in the retail sector, or 13% of the total number employed in retail and wholesale enterprises, are in receipt of the minimum wage. This cohort is largely made up of new entrants to the sector with low skill levels, and those engaged in part time work while in school or college. This is further evidenced by the fact that almost 38% of those in receipt of the NMW are in the age group. The retail sector provides a valuable, flexible source of work for this younger cohort who use such part time employment to supplement their full-time education. Any further increase in the minimum wage must not price new entrants out of the sector or discourage the creation of entry routes to work. 9

11 Earlier this year, Retail Ireland recommend to the Low Pay Commission that should they see fit to recommend an increase in the minimum wage in 2019, it should be proportionate and in line with current and predicted levels of inflation over the coming year (circa 1%). We believe inflation tracked increases, or decreases, offer retailers certainty and enable them to plan for the medium term and build business plans around a manageable cost base. At time when cost competitiveness is of upmost importance, we are disappointed that the Low Pay Commission have recommended a 0.25 cent (2.6%) increase in As we reach full employment, the high cost of housing and childcare allied to high marginal tax rates on second earners and long commutes is impacting retail s ability to adequately resource our stores and supply chain. In addition, these are the main obstacles to getting more workers into the labour force or indeed to continue living and working in this country. Wage pressures arising from rising employee s personal costs such as housing and childcare are a result of failures of public policy over many years. It is entirely unreasonable to expect individual employers such as retailers to bear the cost of these. Retail offers an exciting, dynamic and rewarding career and many retailers are engaging with the Department of Social Protection through schemes such as JobsPlus to provide employment opportunities to job seekers. To allow more welfare recipients to take up positions with Irish retailers, in particular during busy periods, a more flexible and innovative social welfare system is needed. This could help transition social welfare recipients into fulltime employment, while at the same time increasing their disposable income. Reflect current economic realities in setting the National Minimum Wage rate for 2019 and limit any increase to minor recent inflation trend of circa 1%. Address rising housing and childcare costs and introduce targeted measures to increase labour force participation. Allocate greater resources to administer and promote the JobsPlus scheme to encourage employers to offer employment opportunities to the long-term unemployed. Rising business costs The State has played a significant role in driving input costs upwards and reducing retail s competitive position. Since 2015, the National Minimum Wage has increased by 10.4%, with a further rise likely, effective January In addition, the energy Public Service Obligation (PSO) levy was increased by 30% in October of last year. In that period retailers have also seen rents return to pre-crash levels in prime retail locations, along with local authority rate increases. Our members also report public and employer liability insurance increases of between 5 and 10%. Proposals contained within the Public Health (Alcohol) Bill 2015, the Employment (Miscellaneous Provisions) Bill 2017 and the Waste Reduction Bill 2017 have the potential to introduce large costs for Irish retailers. The implementation of the Sugar Sweetened Drinks Tax and the Grocery Goods Regulations have also added to the cost of doing business. From a business point of view this is damaging competitiveness at a time when retailers are not able to pass through cost pressures in the form of higher prices. During the uncertainty of the Brexit negotiations and in a post Brexit era, control of costs and a focus on our competitiveness will be essential to sustain the recovery in Irish retail. 10

12 Address the cost base concerns of the retail sector in areas such as, local authority charges, energy, government services and other business input costs. Ensure input cost differentials with NI/UK are not exacerbated by policy. Undertake reform of the revaluation process. Introduce the Commercial Rates Bill before the end of Continue to implement the Cost of Insurance Working Group recommendations without delay. Extend the Home Renovation Scheme To deal with the housing crisis and help stimulate the construction, homeware and furniture sectors, the Government should extend the hugely successful Home Renovation Scheme. This will allow extra time for homeowners and landlords to make the necessary changes to their properties, provide additional support to the construction sector and continue the growth in retail categories linked to Ireland s burgeoning house market, which were hardest hit in the recession. Extend the hugely successful Home Renovation Scheme to both homeowners and landlords for a further year, until December 31, Conclusion 11

13 Conclusion There is increasing evidence to suggest that the linkage between retail sales and economic growth is getting weaker, meaning it cannot be taken for granted that Irish retail sales will grow in line with general economic growth in the coming years. To sustain retail s positive economic impact on the domestic economy, it is vital that factors such as increasing input costs, public investment, the uncertainty of Brexit and its effects on exchange rates, and rising wage expectations to offset the high cost of housing and shortages in childcare are addressed by government. After enduring a torrid time over the last ten years, the Irish retail sector is finally in a period of growth driven by a more confident consumer with respect to their future personal finances and the generally more positive economic environment. This improved outlook should provide retailers with the opportunity to invest in both their businesses and employees. This investment will strengthen the Irish retail sector, create employment opportunities and allow the sector to meet the demands of the changing Irish consumer in the years to come. We would encourage government to do all in its power to support this emerging growth. Budget 2019 provides a further opportunity to government to introduce a set of measures that will help the retail sector realise its potential. Retail Ireland fully supports the Government s stated aim of delivering sustainable economic and social infrastructure across urban and rural Ireland. To achieve this, the Government must harness growth in the retail sector and throughout the economy by adopting the proposals outlined above. 12

14 Retail Ireland 84/86 Lower Baggot Street Dublin retail@ibec.ie