Retail Excellence Ireland (REI) has today called on the government to urgently intervene with supports for the retail industry.
Ireland’s largest representative body for the retail industry made the appeal as it noted that a combination of several rising costs and increasing levels of crime and anti-social behaviour have hurt the retail industry.
REI suggested that the government use some of the €13 billion it will receive from US tech company Apple in backdated taxes to fund supports that “will be the difference between survival and liquidation.”
In a ruling last week, the European Court of Justice ordered Apple to pay the Irish government €13.1 billion in backdated taxes, plus €1.2 billion in interest to an independent third-party escrow account.
SME Alliance
REI made its appeal as it announced its membership of a new umbrella organisation called SME Alliance.
The organisation has thus called for the introduction of a range of measures to support the retail industry.
First, it suggests changing the calculation of minimum wage to reflect that some 48% of the workforce are employed by the public sector or multinationals with far higher salaries.
It also asked that the government apply the 8.8% rate of PRSI to the entirety of the National Minimum Wage, currently €495.30 per week.
Finally, it suggested that the government reduce the stated 23% VAT rate to its historical 21% rate.
REI is also seeking recognition for small- and medium-sized enterprises (SMEs) and employer representation at the Labour Employer Economic Forum (LEEF) and on the Low Pay Commission.
‘The Difference Between Survival And Liquidation’
Speaking today, the chief executive of REI Jean McCabe said, “After receiving a huge windfall from Apple, the Government now has the means to provide the kind of support that could be the difference between survival and liquidation for many businesses around the country.
“The retail industry has been decimated by several rising costs, including the minimum wage, statutory sick pay, insurance premiums and general inflation, and are dealing with ever-increasing instances of crime and anti-social behaviour.
“Every week we are seeing shops go out of business and people losing their jobs.
“We are not in a recessionary environment, so the onus is on the Government to give the industry the support it needs to navigate this particularly difficult time.”
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