Irish consumers are still paying a premium for goods and services when compared to other EU countries, in spite of some evidence of falling grocery prices, Fine Gael Enterprise Spokesman Leo Varadkar TD has said.

Deputy Varadkar said indications of falling prices and greater competition in the grocery sector are encouraging, but that prices are still higher than what consumers should have to pay. He called on the Government to immediately adopt Fine Gael’s proposals to tackle the rip-off and set up a consumer watchdog with real teeth.

Speaking after the Competition Authority published its report on the retail sector, Deputy Varadkar said: ‘Rip-off Ireland is alive and well, no matter how many reports are published by the Competition Authority. Although the impact of the recession has managed to bring down the price of some groceries, this is just the tip of the iceberg. Unfortunately, the exodus of shoppers to Northern Ireland will continue as long as the Tánaiste fails to address Ireland’s astronomical cost base and refuses to set up a consumer watchdog with real teeth’.

Fine Gael’s proposals to tackle Rip-off Ireland were set out in Finding Real Value. They include plans to merge the National Consumer Agency and the Competition Authority into an Irish Fair Trading Authority. The Government has adopted this policy but has made no move to set it up.

Deputy Varadkar also urged the Government to take long-overdue steps to drive down business costs, which have been cited by both the Competition Authority and the National Consumer Council, and have severely damaged Ireland’s international competitiveness.
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Fine Gael Enterprise, Trade & Employment Spokesman Leo Varadkar TD has today (Tuesday) criticised the Government’s temporary job subsidy proposal as an ineffective sop which will not work. It would only help a small number of selected companies in the traded sector and would be unlikely to save many jobs.

Deputy Varadkar said his own Party’s proposals for a cut in both rates of VAT, the abolition of the Travel Tax and lower PRSI for employers would help far more companies and save many more jobs.

“Fianna Fáil’s proposals would only help a small number of select companies and save only a few jobs. The Government should adopt Fine Gael’s proposals to cut VAT, abolish the Travel Tax and reduce employers’ PRSI instead of offering a €250 million subsidy to IBEC and the unions.

“Until the economy is restored to competitiveness, companies will continue to suffer and jobs will continue to be lost. No scheme, subsidy or clever wheeze can restore prosperity. We need to get the fundamentals right in our economy. Fine Gael’s proposals would help all businesses, large and small, by stimulating demand and reducing prices and business costs across the economy.”

Fine Gael is backing efforts by businesses to get prompt payments from creditors and Government Departments, the Party’s Enterprise Spokesman Leo Varadkar TD said today (Friday) after ISME revealed that businesses are waiting up to 120 days for payment.

“ISME’s survey is disturbing but sadly not surprising. The body found that fewer than one in four companies are being paid within 30 days, and that some have to wait as long as 120 days for payment. ISME also found that the delays are increasing.

“Fine Gael has long campaigned to speed up payments to businesses, many of whom are at risk of going under because credit is being withheld.

“The Government and its agencies are some of the worst offenders. Although the Taoiseach has given a Government commitment to pay bills within 15 days, there is no evidence that this is being implemented. What’s more, this commitment only applies to Government Departments.

“Fine Gael wants this commitment to be honoured, but also to be extended to all Government agencies, local authorities and State-owned companies. We will set up a hotline within the Department of Enterprise’s office to allow small businesses to complain directly to the Minister. We will also revive the Department’s abandoned pledge to conduct a Late Payment Survey.”

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As the slump in retail sales enters its 14th month, Fine Gael Enterprise Spokesman Leo Varadkar TD has called on the Government to kick-start the sector by implementing his Party’s proposals for small & medium enterprises.

“The last 14 months have been among the hardest on record for thousands of small businesses, with retail sales going through the floor. The motor trade is by far the worst hit, with a 60% slump in sales of new private vehicles, year-on-year.

“But the rest of the retail sector is also taking a hammering. Although there are some signs that the slump is bottoming out, the value of retail sales was down 11.2% in the year to April, while the volume was down 7.2%.

“SMEs employ some 800,000 people, but many are going to the wall on a daily basis. Urgent action is needed to protect these jobs, which is why Fine Gael produced an 18 point plan for SMEs: A Fresh Start for Jobs in Small Business.
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• €6.4 million increase in payroll costs for Department and agencies
• 40% increase in advertising
• €284,000 increase in grant for FÁS administration
• €2 million in grants to ICTU, IBEC & the CIF
• €877,000 for committees and commissions

Tánaiste Mary Coughlan has sanctioned massive increases in payroll, advertising and grants to employers’ organisations while cutting funding for small businesses and freezing the number of Community Employment places, according to Fine Gael Enterprise Spokesman Leo Varadkar TD.

Speaking today (Tuesday) at a Dáil Select Committee hearing on the revised estimates for the Department of Enterprise, Trade & Employment, Deputy Varadkar said: ‘With unemployment at a record 400,000, the Tánaiste is diverting cash from job creation and training measures while increasing funding within her own Department and its agencies’.

“Mary Coughlan has approved a €10 million hike in payroll costs, advertising, FÁS’s administration budget and grants to Social Partnership bodies like ICTU and IBEC. Yet in the same stroke, capital grants to small businesses are being slashed by more than €3 million, or 23%. The number of Community Employment Scheme places is being frozen, while IDA grant funding has been cut by more than €6 million and other Enterprise Ireland grants by more than €7 million.

“Instead of boosting job creation and training initiatives, the Tánaiste is increasing her Department’s payroll by €1million, and by €5 million for its agencies and quangos. Her advertising budget is going up by 40% to €351,000, and she has approved an extra €289,000 for the FÁS administration budget. Remarkably, payroll costs will rise at the Office of the Director of Corporate Enforcement, the Labour Court and NERA, even though the number of staff will fall.
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I was on Vincent Browne’s Nightly News last night. The show is now archived online, and last night’s show is available here.

Fine Gael Enterprise Spokesman Leo Varadkar TD has hailed a victory for consumers and small businesses after the Government agreed to introduce a new law that will allow small businesses to use the small claims court to pursue unpaid bills.

This new law also raises the maximum amount which can be claimed by both small businesses and consumers from €1,270 to €3,000.

“This is a small but important victory for consumers and small businesses. It will allow consumers to claim a refund for major purchases like holidays or household furniture, without having to hire a solicitor.

“The Bill also allows companies of all sizes to use the small claims court for the first time. It is particularly significant for small & medium enterprises which employ over 800,000 people and are suffering very badly in the recession.
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“Thousands of businesses are having problems getting bills paid by customers, including Government Departments, agencies and State-owned companies. These will all be covered by the new law.”

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