‘Black economy poses threat to 250k retail jobs’

The Government has issued a fresh warning to consumers over the buying of illegal goods — saying the black economy poses a serious threat to the 250,000 jobs in the Irish retail sector.

The Exchequer lost out on approximately €250 million in excise duty and VAT from the sale of illegal cigarettes alone last year — with around 178 million cigarettes also being seized during 2011. Additionally, sales of pirated computer software and DVDs cost the economy around €63.5m.

Minister for Small Business John Perry yesterday warned of the effects of black economy trade; also noting that Ireland ranks as the sixth biggest culprit of illegal medicine sales — with the market worth an estimated €86m a year — in the EU.

He also mentioned a recent Garda find of an oil laundering plant in Cavan, which had the capacity to launder around 10 million litres of fuel per year and cost the exchequer €5m in tax take on an annual basis.

“There were 8,000 fewer small businesses and 105,000 less people employed by small businesses in 2009 than there were in 2007. Over 50,000 jobs have been lost in the retail sector, alone, since the onset of the crisis and the continued growth of the hidden economy is a serious threat to the 250,000 retail jobs that remain in Ireland.”

“The more illegal goods sold and bought in this country, the more difficult it is for small and medium enterprises to grow their business, create jobs and help people off the live register and into employment,” he added.

The minister went on to say: “Consumers must be vigilant when purchasing goods and services, and understand the negative effects of purchasing illegal goods. The hidden economy is not a victimless crime: its victims are the local shop around the corner or the local tradesman who pays his taxes every year. Buying illegal goods kills jobs and passes on the benefit to organised gangs and paramilitary groups. In order to protect our friends and families’ jobs, we must say no to illegal goods.”