Up to 80 city shops now empty

Date Published: {J}

Around 80 retail units in Galway City are lying empty, with the prospect of further closures after the January sales, a city businessman has warned, while Galway Chamber has said that jobs will be lost unless people ‘shop local’ this Christmas.

Councillor Niall McNelis, who runs two businesses in the city centre, said that the City Council, landlords and banks need to “change their ways” if businesses are to survive.

He called on the Council to introduce free parking on weekday mornings in order to attract shoppers. Otherwise, he said, the first three months of next year could be a “bloodbath” with job losses and business closures.

“It is so important that businesses stay open. You hear of factories closing with big job losses, but you rarely hear about the small retailers that disappear. But you have to remember that each small business might mean at least three jobs,” said Cllr McNelis.

“The Council should introduce free parking, say from 9am to noon on Monday to Thursday. At the moment, their carparks are lying empty, they’re down €1m on parking revenue in the past year. If people aren’t spending money, businesses aren’t paying rates to the Council, and then roads aren’t being swept or bins emptied.

“January, February and March will be a bloodbath, so the Government needs to look at some sort of incentive in the Budget next week for businesses.

“You can see a lot of people are already struggling, and we’re [his two businesses] are finding it hard too. It’s happening across the board.

“Developers bought premises around the city centre at the height of the boom for stupid money, and they are under pressure from the banks to make repayments, so they won’t reduce rents. Then you have empty units,” said Cllr McNelis.

He said that during the Summer, he counted 64 empty retail units in the city, and this figure is now likely to be closer to 80. Despite the closures, he stressed Galway is still an excellent shopping location.

“I would sing Galway’s praises. There is still brilliant choice in Galway. We have great shops like Brown Thomas and Anthony Ryans, and smaller retailers. Born is one of the coolest shops in the country, that’s why Galway is so good,” said Cllr McNeils.

He said that Dublin City Council has made 3,500 parking spaces available free each day, and that Galway should follow suit.

“If people support Galway and shop local, remember that these local businesses are the ones that sponsor local events and give donations,” said Cllr McNelis.

He added that the Government decision to ban ‘upward only’ rent reviews from next February was welcomed. Deputy Frank Fahey said the ban would reduce pressure on businesses in the city.

Michael Coyle, Chief Executive of Galway Chamber told the Galway City Tribune that jobs are seriously at risk unless people shop locally.

“These are exceptionally difficult economic times we’re in. People need to understand that our ‘Shop Galway’ campaign isn’t about lining the pockets of traders. It’s about saving jobs. Unless people spend locally, the people they see in shops around town and in shopping centres will lose their jobs,” said Mr Coyle.

He said that the City Council’s response to their request to discount parking for the Festive season was “disappointing”.

“We’ve called on the Council and private carpark operators to support the business community by discounting charges, to boost trade. The Council’s response has been disappointing. If Dublin City can introduce a suspension of the ‘bus gate’, then we should be discounting or free parking here. It would definitely have an impact,” he said.

He said that commercial rates as well as high rents were also a major burden on retailers. The business chief said the Government needs to provide ‘risk capital’ to banks, similar to in the 1980s, so funding would be available to struggling businesses.

“It’s a difficult situation for all concerned. Banks are cautious about lending to businesses with deteriorating trade, and the businesses cannot survive without a higher overdraft.

“What is at risk is our current employment base, and the Government have an onus to protect jobs,” he said.