A government decision to lift the cap on the development of superstores in the Irish Republic has provoked angry protests from independent retailers and business groups.
The change in the planning guidelines, taking effect from next month, will apply only to stores selling durable goods and not to food outlets.
But groups such as RGDATA, the independent grocers’ body, warn it is establishing a bad precedent that could lead to further changes later on.
Already, state body the Competition Authority has called for the new rules to be applied to grocery, arguing such a change would reduce prices and offer greater choice.
Authority chairman John Fingleton claimed the sector “is insulated from full competition and new entrants, which undoubtedly contributes to higher inflation”. A 6,000 sq m
cap on retail warehouses has operated in the Republic since 2001. Under the amended guidelines announced by environment minister Dick Roche, this restriction will no longer apply in Dublin and nine provincial centres, including Cork, Galway, Limerick, Sligo and Waterford.
Initially, the planning change is intended to facilitate Ikea, the Swedish furniture giant, which wants to open a €100m superstore on a 100-acre site in the Dublin suburb of Ballymun.
But other megastores are likely to follow in its wake, with Costco among those that have made submissions to the government in a bid to have the guidelines revised.
In its protest, the business group Irish Small and Medium Enterprises (ISME) described Ikea as “Viking marauders” and claimed the lifting of the cap was a direct attack on small indigenous retailers and suppliers, which would lead to job losses.
RGDATA’s director general Tara Buckley said the government’s decision was “a cause of serious concern” for retailers.
“It shows the government is prepared to amend the retail planning guidelines to suit the demands of large multinationals, and that sets a very bad precedent.”
Anthony Garvey
The change in the planning guidelines, taking effect from next month, will apply only to stores selling durable goods and not to food outlets.
But groups such as RGDATA, the independent grocers’ body, warn it is establishing a bad precedent that could lead to further changes later on.
Already, state body the Competition Authority has called for the new rules to be applied to grocery, arguing such a change would reduce prices and offer greater choice.
Authority chairman John Fingleton claimed the sector “is insulated from full competition and new entrants, which undoubtedly contributes to higher inflation”. A 6,000 sq m
cap on retail warehouses has operated in the Republic since 2001. Under the amended guidelines announced by environment minister Dick Roche, this restriction will no longer apply in Dublin and nine provincial centres, including Cork, Galway, Limerick, Sligo and Waterford.
Initially, the planning change is intended to facilitate Ikea, the Swedish furniture giant, which wants to open a €100m superstore on a 100-acre site in the Dublin suburb of Ballymun.
But other megastores are likely to follow in its wake, with Costco among those that have made submissions to the government in a bid to have the guidelines revised.
In its protest, the business group Irish Small and Medium Enterprises (ISME) described Ikea as “Viking marauders” and claimed the lifting of the cap was a direct attack on small indigenous retailers and suppliers, which would lead to job losses.
RGDATA’s director general Tara Buckley said the government’s decision was “a cause of serious concern” for retailers.
“It shows the government is prepared to amend the retail planning guidelines to suit the demands of large multinationals, and that sets a very bad precedent.”
Anthony Garvey
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