PLANS to increase the floor space cap for retailers in the major cities nationwide have been met with opposition. Minister for the Environment Phil Hogan has told the Dáil that an increase of 2% in the higher VAT rate would be part of the forthcoming budget. Limerick Deputy Niall Collins said that the move had angered retailers.
“All these pressures are feeding into business and there is also the existing pressure of commercial rates, which we debated in the House recently and during that debate we highlighted the actions that must be taken in terms of recognising the changed economic circumstances and people’s ability to pay”.
Deputy Collins added that the EU-IMF deal did not specifically provide for an increase in the cap for bigger multiples.
“Increasing the cap would allow for more space, which would squeeze the smaller retailers in town centres.
“It is a core function of proper and good planning that we develop from the core of towns and villages outward, rather than enhancing the already developed out-of-town shopping outlets”.
In response to Deputy Collins, Minister Hogan said: the Government made the decision to release for public consultation the proposed changes in that submission to modify the grocery retail floor space cap in Dublin and the major cities but not to change the existing floor space levels for petrol station outlets, retail business parks or neighbourhood and district centres in provincial towns.
Deputy Collins replied that allowing larger super stores to locate within city regions will “pull people away from smaller retailers and away from town and village centres”.
