ND1025113

Title: Northern Ireland Considers Big Box Store Tax to Aid Small Retailers

Description: With its 17-percent store vacancy rate, Northern Ireland proposes a ?large retailer levy,? a plan that would redistribute funds via a business rate relief plan to small businesses.

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BELFAST, NORTHERN IRELAND ? In an effort to address complaints from local, small retailers that large retailers have made it too difficult for them to compete, the Northern Ireland executive is considering a ?large retailer levy?, the Financial Times reports.

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A survey by the British Retail Consortium noted 17.1 percent of Northern Ireland shops were vacant at the end of May 2011, which prompted the levy proposal. Large retailers have voiced strong opposition to the plan, which would look to generate roughly �7m ($11.2 million U.S.) from the 80 biggest retail stores in the region and redistribute it via a relief plan to small companies.

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?This is a stop-gap measure to deal with the effects of the recession. Small retailers and town centers are very vulnerable to downturns and the rates bill is one of their biggest overheads,? said Sammy Wilson, minister for finance in the executive.

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Wilson said he?s trying to push the legislation through at an accelerated place, in order to have it in effect by April 2012.

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In response, Tesco, Sainsbury, and B&Q have promised to reevaluate their investments in the region.

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?Mr. Wilson should not assume if he raises business taxes by 15 per cent it will not affect our investment. This will cost us �1.5m to �2m per year,? said David North, corporate affairs director with Tesco. ?This is the wrong tax at the wrong time for Northern Ireland.?

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Wilson, responding to Tesco, accused big retailers of scaremongering, adding that they have benefited from an executive decision that has frozen business rates over the past four years.

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Smaller retailers firmly back the proposal, citing an equity factor. ?Big retailers have not been paying their fair share of rates as they don?t pay rates on their out-of-town car parks,? said Glyn Roberts, chief executive of the Northern Ireland Independent Retail Trade Association. ?Big retailers have had a pretty good recession while more and more small businesses are closing ? This about leveling the playing field.?

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Content Subject: International

Formatted Article Date: October 25, 2011

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