Retail sector needs new code of practice, Oireachtas report urges

THE next government must tackle the growing challenges for the retailsector by introducing a new code of practice aimed at making the industry more transparent and ensuring “fairness and equity within the sector”.

The last act of the outgoing Oireachtas Joint Committee on Enterprise, Trade and Innovation yesterday was to publish a lengthy report into matters concerning the retail trade here.

“This industry has been under constant pressure in the last number of years and jobs are being lost on a daily basis,” said committee chairman Willie Penrose at yesterday’s report launch.

“We believe, having looked at all the evidence, that many of the higher prices charged in Ireland as against elsewhere, are unjustified,” the outgoing Labour TD added.

The committee has made nine recommendations, including a reduction in commercial utility costs, uniform planning regulations on both sides of the border, the retention of the current cap on floor space, amendments to EU legislation on food labelling, and an improvement in the collection of retail data.

However, although three years in the offing, the report only pays lip service to the thorny issue of upward-only rent reviews for existing leaseholders and doesn’t include it in its main list of recommendations, due to legal advice.

However, Mr Penrose said that the rent issue “will have to exercise the mind of the next Government”.

Committee member Senator Donie Cassidy said he would be confident that any potential new Government would take notice of at least 50% of the new recommendations. Mr Penrose said retailers are under “increasing pressure” from falling sales, increased costs and the lack of credit.

On the subject of a code of practice, Mr Penrose said: “We’ve seen the effects of the light-touch approach in recent years and it hasn’t worked. In fact, it’s been disastrous. We want a code with teeth that protects our companies and our jobs.”