Galway retail crisis
Senator Healy Eames describes severe pressure on small Galway retailers from rents, rates and taxation, and supports reducing VAT to revive the sector.
This may be our last session. We do not know.
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The Cathaoirleach has already clarified it is our last session.
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Gabh mo leithscéal. Last Friday afternoon I was quite shocked at what I found in Galway city. The retail sector is on its knees there. The reason I am shocked is that many people, including the retailers, view Galway city as being paved with gold. However, when the rent, the rates and the revenue are put together, they are creased. I am talking in particular about small independent retailers. They contribute rent and rates and fill the streets with hustle and bustle, but, having spent half an hour to 40 minutes in most of the shops, I heard from the retailers that no more than two customers had entered each of these shops. My message to the Taoiseach and the Minister for Finance is to reduce VAT on retail or watch small independent retailers close by Christmas. They are not even taking a living wage. I spoke to the proprietor of one of the top 30 rated boutique shops in Ireland. The shop is called PIA. She said it is the VAT that is killing her. She buys stock and pays 23% VAT on it. She then has to slash the price of the stock to get rid of it but still has to pay 23% VAT on the original price. She cannot get a loan from a bank unless her VAT returns are completely up to date. This woman is at the leading edge of the fashion industry-----
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-----and her story was replicated by many other retailers. She is now starting a campaign to reduce VAT on retail and I support her. There is good precedent; VAT was reduced for the tourism industry. When we reduced the VAT from 13% to 9% for the tourism industry, we kicked off the industry again. Let us do it for the retail sector. These people are contributing. On a good week, she has approximately €200 to €250 to take home. This woman opened her heart to me and said she was ashamed to have to ask her parents sometimes to pay her mortgage. I am at my wits' end. These people are paying rent, rates and VAT, yet they do not have a living wage. We fight in this House for others to have a living wage. Let us give our independent small retailers, who keep our cities and towns alive and create employment, a living wage by reducing the VAT on retail. Galway needs it. The country needs it.