Retailers call for Govt help with rents and extension of rates waiver
A retail body has urged the Government to help shops with their rent costs during the Covid-19 pandemic.
Retail Excellence Ireland has said that the country's retail sector has been "disproportionately negatively impacted" by the emergency.
In recent weeks, Central Bank research estimated small firms will need €5.7bn in liquidity measures to survive the crisis. The Banking & Payments Federation Ireland, the business group for banks, estimates that €8bn or €9bn is required when larger SMEs are included.
The group believes the Government needs to draw up a road map for SMEs in the same way it has done for the lifting of Covid-19 restrictions.
David Fitzsimons, Group CEO at Retail Excellence Ireland, said: “We need a Government rent grant measure to deal with commercial rent costs over the period of emergency.
"We have proposed that the rent burden is met as follows: a 60% Government Grant, 20% Tenant rent Payment, 20% Landlord Rent Discount.
"Many other countries have announced similar support measures. Every commercial lease provides that the tenant can enjoy 'quiet enjoyment' to trade. This enjoyment has been removed for good reason by Government."
He also called for the local authority rates waiver to be extended to 12 months at least.
He said: "Local Authorities will have significant difficulty collecting rates until Q2 2021.
"We also require that essential retailers who remained open, but incurred significant losses, should be included in any rates relief measure.
"When retail businesses re-open they will face extremely subdued demand. We have profiled reopened countries across the EU and all retailers open today are suffering like-for-like revenue declines of approximately 60%. Government recovery measures must fully take account of this bleak economic forecast.
"Now is not the time for Government to be cautious, the economy needs bold & robust measures to ensure a recovery,” he added.
