REI: Govt approach of flying kites 'damaging economic activity'

Retail Excellence Ireland has said the Government's 'kite-flying' approach to budgets "is not helpful to the domestic economy".

Ireland’s retail industry trade body has called on the Government to develop "a clear communications strategy" that is aligned across all departments for Budget 2013.

The retail body said that the Government departments have contradicted each other saying: "This approach of flying kites is not helpful to the domestic economy in the run up to the Budget."

David Fitzsimons, CEO Retail Excellence Ireland, said: "In the latest Consumer Sentiment Index, consumer sentiment fell to 60.2 in September - its weakest level since February. This sharp deterioration is no surprise considering the significant amount of budget speculation leading to consumer fear and reduced spending."

The Taoiseach and Tánaiste have asked their Ministers not to fuel budget speculation and the body has called on them to heed their advice.

Mr Fitzsimons said: "The best approach to ensure strong consumer sentiment is to make clear concise statements on what is coming up in the budget. It is important that Ministers only comment when a decision is made and that commentary is made with clarity, transparency and authority. Anything else is unhelpful and damaging to domestic economy activity."

REI has also called on the Government to appoint a Junior Minister for Retail, review the VAT rate, sick pay costs, focus on cuts rather than tax increases and to change the Budget date.