2026-04-28

126. Deputy Sean Fleming asked the Minister for Enterprise, Tourism and Employment the measures he is taking to support the retail sector; and if he will make a statement on the matter. [30062/26]

What supports are currently available to the retail sector and are any additional measures being considered to assist retailers facing increased operating costs? I have asked this question previously on a lot of occasions, and the answers the Minister of State gave me, to be honest, just do not land with retailers on the ground.

I thank the Deputy for his question. The Government acknowledges the enormous contribution of the retail sector to our economy in every city, town and village in Ireland. It plays an important role in employment, with over 220,000 people directly employed in retail. As I said in response to the previous Deputy, I meet quarterly with the retail representative bodies for all retailers right across the country. The Minister, Deputy Burke, and I are aware of the issues facing retailers. In addition, during the recent fuel price disruptions, officials in my Department engaged with the main multiple grocery retailers and focused on the impact on issues such as distribution, supply and home deliveries. As I said earlier, we are looking to identify practical actions that could be taken by the Government, or by industry itself, to support the sector, with particular emphasis on achieving sustainable jobs growth in the sector. The last meeting of the retail forum took place on 3 March. The topics discussed included retail crime, the deposit return scheme, environmental levies on single-use disposable cups and the national minimum wage. The Deputy might be aware that the cost of doing business advisory forum has been established. It will look at the inherent costs for many retailers who are finding it challenging in regard to the increase in labour, insurance and energy costs impacting them. Over the last eight weeks, we have met regarding the various thematic areas of concern. Most of those focused on planning, insurance, infrastructure, water services and wastewater and legal costs. We want real outcomes from this forum. The last meeting was only held last week. It was attended by the Minister and the two Ministers of State here, given the political commitment we have to try to support the retail sector.

I welcome the supports that are in place and acknowledge the strong work being done for small and medium-sized enterprises by local enterprise offices, LEOs, and Enterprise Ireland in supporting businesses across the country. However, we have to be honest about the reality facing the retail sector. Over the last 12 months in particular, retailers have been hit from every angle. Rising energy costs, increases in the minimum wage and now the additional burden of auto-enrolment are all adding to the pressure on businesses already operating on very tight margins. I have raised this issue with the Minister of State previously on the floor of this House, and while the supports are appreciated, there is a clear sense across the sector that more needs to be done. I say this not just as a public representative but on a personal level. I started my first retail business at the age of 21. I was born into the retail business sector through a family shop at home. I know what it feels like to open the doors every morning wondering if enough will be made to cover the costs. I understand the responsibility that comes from employing people, the weight of knowing that others rely on you for their livelihood. I have lived it. Right now, many retailers feel that they are not being heard. What additional targeted measures are now being considered to support the retail sector in the face of rising costs, including energy, labour and auto-enrolment obligations, so that viable businesses can survive?

I understand the concern raised by the Deputy, and I certainly do not underestimate the challenges many retail businesses face. That is why we have undertaken interventions in March and April in regard to the ongoing energy crisis we face. We have also looked at VAT changes, which will be introduced in July of this year, in respect of many cafés and small coffee shops. We have also looked at the targeted grants for local enterprise offices around cost reduction and digital adaptation. This is important. As I said earlier, we want to ensure that many retailers have consistency around cost certainty, simplification and where we can inform policy and inform regulators in regard to challenges or burdens being placed on retailers. This is why that exercise within the forum is not a box-ticking exercise. We want to look at the situation structurally and see where we can identify cost pressures and alleviate many of them to ensure the viability of businesses.

Building on that, there is real concern that without further action, small, independent retailers will continue to struggle, particularly in regional towns and rural communities. These businesses are the backbone of our local economies, as the Minister of State said, and are vital to keeping our town centres alive. Are specific cost relief measures being actively considered for the sector, particularly in relation to energy costs, labour pressures and the added impact of auto-enrolment? Will the Government engage directly with retailers to ensure the supports being developed truly reflect the reality they are facing day to day? Talk is cheap. We need to act now and act fast.

We are actively engaging with the retailers and the representative organisations. That is crucial. The charge may be that we are not listening, but we are listening. I think that is an important starting point. The Deputy hit the nail on the head when he said we want to have less talk and more action. This is exactly what we are looking to do, focusing on delivery. We want to ensure that the grants around green for business, digitalisation and energy reductions, working with the Sustainable Energy Authority of Ireland, SEAI, are targeting businesses and reducing their energy dependency. This is something we are talking to the Department of Climate, Energy and the Environment and the Minister, Deputy Darragh O’Brien, about, and the energy affordability task force will look at the structural costs around energy for businesses. On regulation as well, we have established the small business unit within our Department. That is about the thinking small business first principle, which is what we want to do. We have introduced the SME test within the Cabinet handbook. This is very much focused on assessing before approval the regulatory impact on small businesses of any new policy or legislation that comes forward.