Galway Chamber pleads for retail sector Budget break

Galway Chamber of Commerce has pleaded with the Finance Minister to introduce support measures for the retail sector, claiming it is a key ingredient in attracting tourists to the region.

In a pre-Budget submission, the Chamber called for a series of changes, including the reduction of the standard rate of VAT to 18% (on a phased basis from 23%), a commitment to the 9% VAT rate for the hospitality sector, a fairer commercial rates system and for black marketeers to be tackled.

Michael Coyle, Chief Executive of Galway Chamber said: “The domestic economy, particularly the retail and related services sectors have borne the brunt of the effects of the austerity programme that has been implemented, of necessity, by Government over the last five years.

“Galway Chamber believes it is now time to introduce measures that will help these sectors recover. Consumer confidence must be restored and consuming spending must be stimulated in order to protect that tens of thousands of jobs at risk in these sectors.

“Galway’s retail sector is a key ingredient in its attractiveness as a tourist destination – it must be supported in the forthcoming Budget,” said Mr Coyle.

The proposals include a rates reduction for companies located within town and city centres, “which provide much needed employment and contribute to the quality of life in these areas, a reduced VAT rate on housing repair, maintenance and improvement which would stimulate goods demand and support so more retailers have an online presence”. They would also want local authorities to be given flexibility over rates to encourage an attractive retail mix in town centres.

The Chamber has also called for a reduced VAT rate on housing repair, maintenance and improvement, which they believe would stimulate goods demand.

Other proposals include:

• support more retailers to have an online presence
• challenge black market activity
• develop car parking policies sensitive to retailers needs

Other elements of the submission from the Chamber include: public sector cost savings/reform, infrastructure, pensions, education, taxation, stimuli for Small and Medium Enterprises, and the subject ‘Maintaining Ireland as an Attractive Area for Investment’.