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Seanad
‹ Order of Business

Black Friday retail impact

Summary

Senator Mullen raised concerns about Black Friday and Cyber Monday sales, arguing they benefit consumers but damage Irish retailers. The Leader responded separately to Ardagh’s broadband points and the Chair concluded the business by putting an amendment to the schedule, which was agreed.

I would like to raise two separate but somewhat interconnected issues. In recent years, we have all become used to the hype around the so-called Black Friday and Cyber Monday sales.

This practice is the latest in a long line of fads that have been imported into Ireland from America, although not all of them are negative. As recent reporting indicates, it tends to be more focused on online sales to the detriment of the retail sector. This is great news for consumers, but Retail Ireland, an affiliate of IBEC, warned recently that the trend only had damaging impacts on Irish retailers because of the very deep discounts that the practice tended to incur. Many retailers are reassessing the practice for this reason. In reality, there is very little we can do or would want to do to deter online shopping, but we must do everything we possibly can to make it attractive for people to buy Irish and shop locally, particularly in town and village centres which are falling victim to larger shopping centres, often on the periphery of towns.

This prompts reflection on another serious matter discussed briefly on radio this morning. It concerns the amount of packaging generated by online shopping, for which the figures are extraordinary. Repak estimates that 10,000 tonnes of waste will be created by online shopping this year. It is incredible to quantify it in this way, but 1.74 million parcels were delivered by An Post over the Christmas period last year, an increase of over one quarter on the figure for the same period in 2017. I am not surprised as one of my relatives seems to be one of the best customers. Hardly a day goes by without a ringing of the doorbell and a package being delivered. It costs €500,000 per annum to collect and manage this waste. Repak's members, which comprise large and small businesses alike, foot the bill every year. They are subsidising the collection and processing of what we put in our green bins.

It seems that online retailers based in foreign jurisdictions, with the exception of Amazon, are not contributing to the fund. Essentially, Irish businesses are subsidising the recycling of packaging supplied by foreign businesses, which seems to be grossly unfair and anti-competitive. It seems EU legislation, as it stands, unwittingly, allows this to happen as there is a gap in the law under EU packaging regulations. It is also a problem for other countries. The best way to deal with the matter is through amendment of the regulations and the introduction of EU-wide legislation governing the process and ensuring a level playing field. In the interim we need to discuss the matter with the Minister for Communications, Climate Action and Environment and consider if the Department is aware of the matter or what it plans to do about it, either at local or European level. We could also debate whether it would be appropriate to consider putting in place some voluntary contribution from online retailers similar to the way in which Amazon apparently is partaking. It is a matter we should discuss and I would like to hear from the Government on it. We must address it as best we can to protect both the environment and Irish businesses and jobs.

Comment on this

Senator Ardagh raised three matters, the first of which was broadband. As stated in recent days, the Government is committed to providing high-speed broadband in 100% of the country. Today it noted and accepted the conclusions made in the independent auditor's report. As it is satisfied that there was no influence exerted on the process by the former Minister, the plan has not been compromised. Therefore, it will proceed with its long-held desire to increase access to broadband for everybody throughout the country. A debate with the Minister, Deputy Bruton, would be useful, not least on that matter, but also on the matter raised by Senator Mullen.

Senator Ardagh also referred to the Capuchin Day Centre. None of us wants to see such scenes. There is no suggestion from the photo that certain citizens are starving. The reality is the State provides for mothers and babies in difficult financial circumstances. It is good that there is extra provision of certain things they need from the Capuchin Day Centre. A picture paints 1,000 words, but other matters might not necessarily be discussed that are relevant to it.

The Senator referred to the proposal for a super depot in the Liberties. It would be appropriate to raise it in the Commencement debate. Perhaps she might consider doing so.

I cannot comment on that particular issue but I can ask for comment from the relevant Minister. Senator Ardagh also referred to the lack of green space which is a significant issue throughout the city and I agree with the views she expressed in that regard.

Senator Boyhan spoke about the rural regeneration scheme in positive terms. A lot of very positive announcements were made yesterday. It is the Government's intention to drive the regeneration and rejuvenation of strategic areas throughout the country, particularly the five main cities and our large towns. As Senator Boyhan said, the announcement made yesterday was very positive.

Senator Conway-Walsh raised the important issue of sexual violence and paid tribute to the Rape Crisis Centre in Mayo. The Rape Crisis Network should be commended on its work throughout the country. There are several legislative initiatives in the offing and I am anxious to see the sexual offences Bill coming before this House before Christmas or at least to have sight of the Bill that is currently being drafted.

Senator Ó Ríordáin raised policing and I agree with him about the requirement for a Garda station in Clongriffin. I also agree with his comments on Spinraza, an issue on which I have done some work. A process is ongoing involving the HSE in which the Minister cannot intervene. It is my understanding that there will be an announcement on the matter in the near future.

Senator O'Mahony spoke about Irish rugby and the very positive autumn international results for Ireland. His comments are well made and hopefully we will see the current manager go out on a high, winning the Six Nations and possibly the Rugby World Cup.

Senator Colm Burke raised the very serious issue of commenting on court cases. It is also important to note that many victims of certain crimes or situations do not pursue cases because the commentary can turn them into double victims. This is an area of serious concern. The separation of powers is very important and, as Members of the Oireachtas, we have a duty to be mindful of that. The Senator also spoke about medical graduates and I commend him on his continued work in this area. This is an issue that merits discussion with the Minister for Health in the House in the near future.

Senator Feighan commented on the Brexit withdrawal agreement. He also paid tribute to Mr. Martin O'Neill, who was definitely positive for Ireland. We all wish the new manager well.

Senator Wilson raised a very serious issue that is close to my own heart. The particular situation to which he referred is very difficult for the individual involved and it also speaks to the wider issue of how we choose to discuss matters with one another as a society. The use of social media has facilitated a very negative vibe, to say the least, when it comes to what people consider acceptable to say to others. It is hard to know where it will all end but it is a topic worthy of further debate. I do a lot of work on this issue but sometimes I feel that we are bashing our heads off a brick wall vis-à-vis the tech giants and social media firms because they are commercially driven. They talk the good talk about how they want to help with this type of abuse but I do not see it as meaningful.

Senator Martin Conway raised a local issue relating to Shannon and I suggest he consider raising it as a Commencement matter. Senator Rónán Mullen raised two issues and I agree with his views on both. Black Friday is a bit mad in terms of how it has affected consumer activity. The Senator raised what is a tax equalisation issue with regard to retailers in the State and online retailers outside of the State who are not paying the same taxes. I cannot remember the exact figures but I know that one of retail bodies has done some work on this matter. It is a serious issue for retailers in Ireland because it makes it difficult for them to compete with online retailers which have an unfair advantage. I tend to shop online with Irish companies, some of which are excellent in the way they conduct their online business. However, as the Senator points out, the packaging involved is out of control. One wonders if companies are thinking about this. One can receive an item with a plastic hanger and several layers of plastic wrapping around it, inside a cardboard box. Often it is only the cardboard that is recyclable but one must dispose of all of the packaging.

I totally agree with the Senator on that. Nothing short of an EU-wide agreement on this will have any major impact. It is all well and good for consumers to be aware - I am very aware - but it is not possible for a person to control what retailers do in terms of how they provide products. It is an issue I would prioritise for debate in the House. It is very important. As far as I am concerned, it is the issue of our time.

That completes the responses to the Order of Business. I need to propose an amendment to the Order of Business as the Dáil is delayed somewhat. We should adjourn the House and begin No. 1 at 5.15 p.m.

Comment on this
Paul Coghlan An Leas-Chathaoirleach Fine Gael

Senator Noone has proposed an amendment to the Order of Business: "That No. 1 be taken at 5.15 p.m." Is the amendment agreed? Agreed.

Comment on this