Rates Focus Over Mixed Jobs' News

There's both good and not so good news on jobs this week as on one hand a major furniture retailer said its Belfast store is experiencing "the most challenging period since the downturn in the economy" - with redundancies seen as last option if things continue.

But with an increase in business rates in the way, Ikea added that in the last fiscal year the NI market had already been more difficult than the Irish Republic and said that since the Dublin Ikea opened in 2009, the Belfast store had been hit and that "the current trading pattern is well below what we would expect from a market of this size".

The Northern Ireland Retail Consortium - a sister organisation of the British Retail Consortium that represents the multiple retailers who trade in Northern Ireland - has said that many retailers in Northern Ireland are preparing to take on more than 2,000 extra staff for the festive season, on top of the 30,000 people they employ all year round.

But they too hit out at a proposed rates increase and said that the businesses recruiting for Christmas include Asda, Debenhams, Marks and Spencer, Next, Sainsbury's, Tesco and Toys R Us.

Northern Ireland Retail Consortium Director, Jane Bevis, said: "Christmas is the most important trading period for most of the retail sector. Every year the increased business supports hundreds of permanent jobs and creates temporary opportunities for hundreds more.

"Increased employment is an essential part of rebalancing the Northern Ireland economy, but [Stormont Executive Ministers] seem determined to press ahead with an 'extra tax' on some of the businesses best placed to provide it," she said, referring to a planned revision of rates with all the firms due to face higher business rates from April 2012 under plans from the Northern Ireland Executive.

The Northern Ireland Retail Consortium (NIRC) warned the proposed Large Retailer Levy would increase the operating costs for businesses, which are otherwise well placed to drive growth, attract investment and support jobs.

They said it is also discriminatory in targeting just one part of a single sector, while the relief it’s due to fund will go to a wide range of businesses.

"The retailers due to be targeted by the Executive’s levy support 30,000 jobs in the region and are providing 2,000 more opportunities this Christmas. The Executive should not be penalising businesses which help to provide festive cheer - and festive jobs," concluded Ms Bevis.

Ikea is also said to be against the levy, which will see increased rates on commercial premises with a rateable value of more than £500,000.

Ikea said that if the levy is introduced it will have a rates bill of £320,000 which "would place a huge burden on Ikea Belfast's already strained balance sheet".

(BMcC/GK)