Cowen content to lose retail tax millions

Sceala Clann T.D. Location: Wicklow

I ....was ...someone who considered Brian Cowen a most able economic politician. I thought he deserved a chance.
My judgement was blinded by his previous record. One year on ...Cowen's government has been a disaster for Ireland.
Billions given to corrupt banks .....personal taxes are up to pay for criminals ...honest jobs are lost ...there is no sign of any recovery in Ireland ...not even the medium term.
One year on of a disastrous Irish retail market ...with millions lost in sales to NI.
Cowen's government has not acted ....the same government that is considering saving 1 million euro by closing rural Garda stations.
One has to now assume that nothing will be done ....and that Cowen's Government is content to lose 810 million in lost revenues.
Cartoon from the Irish Times ....Cowen asks where would You make the cuts.
Irish Community Images

25% jump in cross-Border shopping - survey
Cross-Border shopping will cost the Republic's economy more than €810 million this year.Cross-Border shopping will cost the Republic's economy more than €810 million this year.
PAUL CULLEN Consumer Affairs Correspondent
SOME 250,000 households in the Republic are now regularly doing their grocery shopping in the North, up 25 per cent since the end of last year, according to new figures.

There has also been a major increase in cross-Border alcohol shopping, the latest figures from market research firm Nielsen Ireland show. Off-licence sales in the North have risen by 30 per cent in the year to August, while off-sales in the South are down by 7 per cent.

Separately, figures compiled by InterTrade Ireland, a North-South business development body, show the proportion of Southern-registered cars in shopping centre car parks in Newry, Enniskillen and Derry has increased from 40-50 per cent over the summer to 70 per cent now.

Cross-Border shopping will cost the Republic’s economy over €810 million this year, it is estimated, compared to €640 million last year and €393 million in 2007.

“Cross-Border shopping has picked up significantly again,” commented Eoin Magennis, policy research manager of InterTrade Ireland, “and is probably as high as it ever was”. While people were shopping less often than before, they tended to buy more when they make the trip, he said.

The cross-Border shopping phenomenon has benefited the retail multiples far more than smaller shops, he said. In contrast, local shoppers in the North have moved their custom elsewhere because of the delays and traffic congestion caused by Southern daytrippers.

Up to 25 per cent of goods bought in Newry are purchased in euro, according to Orla Jackson of the town’s chamber of commerce. She said there had been a “marked increase” in shoppers crossing the Border in recent weeks due to the changes in the exchange rate.

However, Bill Tosh of Dundalk Chamber of Commerce said trade in the town was holding up, and that major retailers were “holding their own”. The exception was the trade in alcohol, where some items were up to 180 per cent dearer in the South.

The drinks industry estimates that by the end of this year, 10 per cent of off-licence business will have migrated to the north of Ireland.

Almost half of all alcohol sold on the island is sold in the North, in spite of its much smaller population than the Republic.

The figures appear to show that the price war between supermarkets in the Republic since May has had only a limited effect in stemming the exodus of shoppers to the North. Although food prices have dropped by up to 20 per cent in some multiples, overall prices are still cheaper in the North.

Tesco, for example, says it charges 12 per cent more in the Republic than the north of Ireland because of the higher cost of business. A recent survey by the Consumers Association of Ireland puts the margin in Tesco’s stores at 18 per cent on a basket of goods.

The Alcohol Beverage Federation of Ireland, which released the Nielsen figures, said alcohol was a major contributory factor driving cross-Border shopping. Its director Rosemary Garth called on the Government to address the issue of higher alcohol taxes in the Republic relative to the UK.

“Both drinks industry and retail groups have estimated that cross-Border shopping has cost the Irish exchequer €400 million in lost revenue this year. This figure is set to increase in advance of Christmas as thousands more shoppers will understandably choose to shop in the north of Ireland, in particular should the rate of sterling continue its present decline against the euro.

“The consequences for jobs and revenue, particularly in the Border region, are profound. Our industry supports 90,000 jobs across bars, restaurants, manufacturing and supply. Many of these will be at risk as a direct consequence of cross-Border shopping.”

Retailers are also calling for Government action to stave off another disastrous Christmas shopping season this year.

Retail Ireland, an Ibec sub-group, says excise on alcohol in the Republic should be cut by 20 per cent to discourage people from shopping in the North.

Excise rates in the Republic are the highest in Europe for wine and the second highest for beer and spirits, it points out. It has also called for a reduction in the VAT rate from 21.5 per cent to 18 per cent to stimulate retail sales.
http://www.irishtimes.com/newspaper/ireland/2009/1026/1224257456822.html
Recent article from the Belfast Telegraph
the north of Ireland's tourism spin-off from the border shopping boom
Today is a bank holiday in the Republic and a pound is worth around 92c. Throw in historically cheaper prices on this side of the border, and southern shoppers are expected to descend on towns such as Enniskillen and Newry to stock up on the goods that are much cheaper here — and even start filling their boots with Christmas presents.

In Newry, temporary road signs have been put up to ease the strain on the usually-overworked Dublin Road. Peter Murray, manager of the city’s Buttercrane Centre, said even the weekend was busier than usual and that he hopes the continuing weak sterling will help the city ride out the recession.

Buttercrane, and the city’s Quay’s Centre, experienced boom-time last year when the exchange rate — at one point, pound-euro parity — meant southern shoppers couldn’t stay away. “Last year was an exceptional year, and if we achieve that again, we will be reasonably happy,” Mr Murray said.

A new junction of the city’s bypass will open temporarily in December to ease the flow of traffic into the city in December.

Cathal Austin, manager of the Quay’s Centre, said the city’s merchants never forget that retail in a border region is a cyclical business. “In years gone by we have watched Dundalk at the top of the cycle. Now Newry is benefiting from a reverse cycle. The big task for us now is to ensure that we give people added value and something extra that keeps them coming back,” he said.

But the the north of Ireland Tourist Board has argued that cross border shopping is just one side of the pound coin, of which 7m were estimated to have been spent in the north of Ireland last year as a result of the strong euro.

A two-year campaign to increase overnight trips from the Republic seemed to pay off — last year, visitors were up by 14% to 45,000, with the number of holiday trips up 26% and people staying even longer with an average stay of two-and-a-half nights.

Laura Harvey, director of corporate development at the NITB, said: “People are not just coming up for the day to shop. They are staying overnight, meaning they are coming and experiencing restaurants, hotels and our key attractions.

“Previously there was a lack of awareness of what there was to see and do — but we have invested significantly in a big marketing push.

“We moved out our promotional material into shopping centres in places like Newry, Enniskillen and Banbridge.”

And travel expert Simon Calder said: “Canny travellers from elsewhere in the UK have already worked out that the north of Ireland offers a remarkable diversity of attractions, both natural and man-made, plus a warm welcome, and all in a place where the pound is still worth a pound.”

He said the reopening of Belfast’s City Hall and Ulster Museum would also give the city’s tourist potential a boost.

John McKenna, Belfast-born author of the Bridgestone Guide to food, drink and accommodation in Ireland, said Belfast’s St George’s Market was an important stop on the tourist trail.

“It’s one of the leading food attractions in the whole country, up there with Temple Bar Market or Dun Laoghaire market. It’s got music, places you can sit and eat — there is nowhere quite like it.”
Read more: http://www.belfasttelegraph.co.uk/news/local-national/northern-irelands-tourism-spinoff-from-the-border-shopping-boom-14542488.html#ixzz0Wl1DJKB1

Register

The Irish Community have posted
3 REPLIES TO THIS TOPIC
for logged in members to view.

Irish Forums Message Discussion :: Cowen content to lose retail tax millions

Cowen content to lose retail tax millions