TOWN CENTRES HAVE traditionally been at the very heart of communities throughout Ireland; a thriving and vibrant retail sector is integral to those town centres. The decline of town centres has an impact that transcends the interests of retailers, as established sites of community activity and social interaction are lost.
Increased levels of footfall and consumer spending are vital to animating town centres and supporting the businesses based there – and the availability of car parking is a vital prerequisite to this. If car parking is expensive to pay for, then consumers will simply go elsewhere and businesses will die.
Without a variety of retailers and other businesses offering a broad mix of services, the heart will be cut out of our town centres.
Launched in October 2012, the Department of the Environment’s Action Programme for Effective Local Government: ‘Putting People First’ has introduced significant changes to the structure and governance of local authorities in Ireland, and with that has come an opportunity to revitalise our town centres. However, some of the options and policy choices currently being followed will do little to sustain or revitalise.
The integration of Town Councils into County Councils and the creation of ‘municipalities’ is certainly to be welcomed in terms of saving money; however, it is not so clear whether the associated policies will produce the best outcomes for people living and working in these centres.
Car parking may seem like a minor example but it is of crucial importance; a recently circulated Implementation Guidance Framework proposes that income generated by a municipal district from parking and leisure charges be retained by that district and linked to the total General Municipal Allocation (GMA) provided by County Councils to these areas.
It also notes that if the municipal district decides to reduce the charges for parking and leisure facilities, then the total amount of the GMA available to that district will also be reduced – and that increases in the income from those charges would result in additional funding for the municipal district.
This guidance document incentivises municipalities to increase car parking charges – this will only harm the many businesses providing significant employment while struggling to compete with out-of-town centres where parking is currently free.
Chambers Ireland believes that a proportion of the savings achieved from the integration of Town Councils should be earmarked to guarantee free parking provision at optimal periods; ideally the first two hours should be free to encourage consumers to shop in town centres and support footfall.
Car parking isn’t the only issue affecting retailers. Rents and rates continue to stifle the consistently impressive entrepreneurial and business ambition of Irish people. In our pre-budget submission, Chambers Ireland has called for targeted rates reductions for businesses in town centres and flexibility to be given to Local Authorities over how and when rates are collected. Both of these options could encourage the development of an attractive retail mix in town centres that all of us as consumers want.
Chambers of Commerce all over Ireland are involved in schemes that support town centres. Initiatives such as Shop LK in Letterkenny, produce a virtuous circle of activity as customers are attracted by the benefits on offer, retailers thrive and communities grow. Crucially retail jobs are sustained in a sector that has seen the greatest numbers of jobs losses, after construction, since the downturn began.
There is also a responsibility on retailers themselves. The realities of doing business have changed and more should be encouraged to trade online. Almost 60 per cent of Irish internet users bought goods online in 2012; however, of these users, 60 per cent made purchases from EU countries other than Ireland.
This threat becomes an opportunity if our retailers can develop a vibrant online presence. Consumers must be given the option to shop online and tourists, who have sampled goods in Ireland, must have the opportunity to order products when they return home.
One simple incentive that could help this migration would be to abolish the stamp duty charge on payment cards and raise duties on the 84 million cheques used in Ireland last year. This would encourage more customers and businesses to make the leap to ePayment.
Retailers have faced very challenging times since the downturn. Those Local Authorities which are sympathetic to the needs of retailers and related businesses which adopt initiatives, such as free parking in the first two hours in town centres, will create somewhere that families can live, people can work and employers can create jobs. Somewhere like a community.
Seán Murphy is the Deputy Chief Executive of Chambers Ireland.
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