Grocery shops want red tape cut

RED tape-entangled grocery shop owners want their 17 annual visits by inspectors grouped together to save time and their 21 licensing fees reduced by 15%.

Small retailers are collectively paying out €26.5m in regulatory fees and individually spending the equivalent of a 50-hour week each year filling forms and ticking boxes, according to an RGDATA report presented to the Oireachtas Economic Regulatory Affairs Committee yesterday.

The report, prepared by economist Jim Power for RGDATA, which represents 4,000 family-run grocery shops in Ireland, warns that this regulatory burden is threatening the viability and survival of small local shops.

RGDATA director general Tara Buckley said: “Given that one in four 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. 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.”

Small grocery retailers must comply with 17 inspections, such as the grading of potatoes and eggs to compliance with the plastic bag tax. To trade legally, they also need 21 different licences.

In its submission, RGDATA proposes grouping inspections; cutting licensing fees by 15%; a reduction in information requests to businesses of a similar type; greater use of IT in the inspection process; and the abolition of JLC labour compliance costs.

Economist Jim Power adds: “This is an important indigenous sector which generates €4.76bn each year to the national economy, equivalent to 3.6% of Ireland’s GDP.

“Given the importance of this sector locally and nationally, it is imperative that all costs, including regulatory costs are targeted and reduced.”