O’Brien rejects FG’s bleak assessment of the retail sector

Darragh O’Brien TD for Dublin North has today rejected Fine Gael’s bleak assessment of the retail sector.

Deputy O’Brien was responding to a statement by the party’s Enterprise Spokesperson Richard Bruton who was commenting on the latest CSO retail figures.

Deputy O’Brien said: “The CSO data released today show that retail sales rose by 3.5% in May of this year, compared to the same month last year. Instead of welcoming this good news, Fine Gael has chosen to paint a picture of a retail sector still in turmoil.”

“Nobody is denying that we are facing challenging times in the retail sector. However, today’s figures show that the situation is improving and that are reasons to be hopeful about the future. As pointed out by Chambers Ireland, the Exchequer also stands to gain in enhanced VAT revenues arising from this increase in sales.”

Deputy O’Brien said: “Contrary to claims by Fine Gael, Fianna Fáil in Government is committed to promoting a pro-business environment. Over the past 18 months we have introduced various measures aimed at helping small businesses. These include the establishment of the Enterprise Stabilisation Fund and the Employment Subsidy Scheme and a ban on upward only rent reviews. We have also committed to paying Government debts to businesses within 15 rather than 30 days and overhauled the public procurement policy to ensure greater SME access to public contracts.”

Deputy O’Brien said: “Recognising that businesses cannot survive without working capital, we have made the free flow of credit a priority. Under the recent recapitalisation plan, we have instructed the Allied Irish Banks and Bank of Ireland to lend an extra €3billion this year and next. We have also set up a credit review system, headed up by John Trethowan, to independently review adverse credit decisions by banks to borrowers. Any bank that ignores the decision of this review group will be publicly named and shamed.”

Deputy O’Brien said: “Improved competitiveness will also play a major role in our recovery. The news today that consumer prices are continuing to fall shows that we are beginning to price ourselves back into the market. Though difficult, we have been determined to drive down our cost base by tackling public pay and other barriers to competition such as energy costs.”

Deputy O’Brien concluded: “While today’s figures show that things are improving on the economic front, we fully realise that more remains to be done before we're where we want to be."