DAIL COMMITTEE TOLD THAT FAMILY SHOPS ARE SUFFOCATING UNDER 40 DIFFERENT LICENSING AND INSPECTION REGIMES

RED TAPE COSTING SECTOR €27MILLION EACH YEAR

RGDATA, the organisation representing 4,000 family run grocery shops has warned that the increasing regulatory burden being imposed on local shops is threatening their viability and survival.

At a presentation before the Oireachtas Economic Regulatory Affairs Committee, an RGDATA delegation revealed that local shopkeepers are subject to up to 17 different inspection regimes from regulators and must have up to 21 different licenses to operate their shops.

A report by economist Jim Power for RGDATA and published this week has calculated the direct cost of the regulatory burden to RGDATA retailers at approximately €26.5 m, with most shop owners spending the equivalent of a 50 hour week each year just form filling and box ticking.

Speaking before appearing at the Oireachtas Committee, Tara Buckley, the RGDATA Director General warned that the burden imposed by excessive regulation on local shops posed a direct and serious threat to their future. Buckley commented

"Local shops have taken the brunt of this recession with the massive reduction in consumer spending. All business must keep a tight rein on costs and regulatory costs represent a direct hit for retailers. Given that 1 in 4 retail jobs have been lost over the last 12 months, it is urgent that the Government prioritises the reduction of regulatory costs for our sector"

RGDATA advised the Committee of at least 17 separate inspection regimes that apply to grocery retailers ranging from the grading of potatoes and eggs to compliance with the plastic bag tax. In addition there are at least 21 different licenses that retailers are obliged to have, ranging from licenses to sell stamps, salmon, batteries, videos, tobacco, alcohol, the national lottery as well as licenses required for the general operation of the shop (waste; water; storage of rubbish). 

Jim Power said that it is urgent that the regulatory burden is tackled and costs reduced;

"This is an important indigenous sector which generates €4.76bn each year to the national economy, equivalent to 3.6% of Irelands GDP. It is also a sector that employs 95,000 people and plays a significant role in the local economy in which each shop is located. It is a sector that has borne the brunt of the recession with a significant number of job losses and retailer insolvencies. Given the importance of this sector locally and nationally, it is imperative that all costs, including regulatory costs are targeted and reduced. Government has the central role in this regard. "

The RGDATA delegation outlined a series of measures that could be taken by government to tackle regulatory costs, including;

• Group inspections together
• Reducing direct inspection and licensing fees by 15%
• A reduction in information requests to business of a similar type
• Greater use of IT in inspection process and for dealing with requests
• Abolition of labour compliance costs arising from the outdated JLC regime

Tara Buckley said that RGDATA would be seeking a coordinated response from the Government to tackling the regulatory burden.

Ends

Enclosed - Jim Power report on the Independent Retail Grocery Sector - the tables of licenses and inspections appear at pages 25 -27.

Contact: Tara Buckley 086- 8258008

Jim Power 087 - 2431731

RGDATA 01-2887584 This e-mail address is being protected from spam bots, you need JavaScript enabled to view it