Irish retailers slam tobacco licence plans

Irish retailers have criticised the proposal of a new tobacco licence imposed on stores by the government, due to continued fears over rising costs.

Under Irish law, retailers already pay to register with the National Tobacco Control Office to sell tobacco over the counter or through self-service machines. While few EU countries operate a licensing system, plans have previously been discussed in Ireland, in a bid to limit tobacco sales to a reduced number of licensed retailers or pharmacies.

In an interview with local station South East Radio last week, Peter Steemers, owner of Steemers-O’Leary’s News in Wexford, explained retailers shouldn’t have to hold all the responsibility. “There’s a tobacco selling licence on the horizon, but why do retailers have to bear the brunt for our customers?” he said.

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“They should make the smoker have a licence to smoke. Why should we sponsor their smoking?” In a report published this year by the country’s Health Service Executive, it reported 63% of respondents to a public survey favoured tobacco sales being banned from local shops, newsagents, off-licences and petrol stations.

However, Steemers said any future plans to introduce a licence would put even more pressure on retailers, especially those running small stores and who are already facing unmanageable cost rises. “Electricity prices have gone through the roof,” he said. “I spent thousands on upgrading my lighting to energy-saving LED, only to find myself back at the same cost, if not more.”

“Our overheads have to be justified by our retail prices. We can’t be seen as profiteering, but at the same time, we have to make a living.” During the interview, Steemers went on to illustrate how increased employer contributions to Social Insurance have also hit independent retailers hard. He said: “We are a fairly small shop, but we have a team of 10, and I am paying anything between £800 and £1,500 a month in contributions.”

Last month, The Fed welcomed news that the Irish government was considering a windfall tax on energy producers’ profits. However, this was not enacted in the country’s budget, unveiled last week. Ireland may still benefit from plans to impose a European-wide tax, yet to be confirmed. Irish district president Martin Mulligan told Better Retailing: “It’s challenging times ahead for all independent retailers as to whether or not we can survive without major assistance.

“We need financial support immediately. Small independent retailers have been ignored by all governments for far too long. This is about the survival of small businesses and helping them to remain at the heart of their local communities.”

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