protocol Archives - Ireland's Forecourt & Convenience Retailer

Current EV support has to be retained: Brian Cooke

Linda Stewart — Wed, 16 Mar 2022 12:13:15 +0000

Brian Cooke, Director General of SIMI, tells IFCR how the motor industry rose to the challenges of 2021 and takes a look at the year ahead.

2021 brought us Brexit, COVID, Semi-Conductors and a new Climate Action Plan – all massive challenges individually, but crystallising at the same time has certainly made business more difficult, not just this year but for the year ahead.

But I have no doubt our industry will rise to these challenges. Resilience is a word that best describes 2021 – it is a quality that the Irish motor industry has displayed time and time again and is something we must carry forward into 2022.

For all sectors 2021 has been yet another difficult year, the start of which saw the closure of our dealerships from January until May, yet despite this the industry adapted to offer a click and deliver service.

The heavy investment by dealers in their online platforms helped to continue an amount of vehicle activity and provided some relief to the sector, while many of our members continued to provide essential services such as vehicle testing, servicing, repair and recovery.

2021 was the year we finally saw a trading agreement between the EU and the UK, but if we thought that was the end of the negotiations, we were mistaken, as the GB Government’s refusal to implement what was agreed in relation to the Northern Ireland Protocol continues to bring uncertainty. The imposition of customs duties and formalities have added costs to many members’ business, as well as causing delivery delays.

In addition, the handling of the Brexit margin scheme and the treatment of VAT for used vehicle imports into Northern Ireland continues to be an area of huge concern, as both the current and proposed Great Britain measures not only discriminate against Republic of Ireland’s dealers, but also run counter to the protocol and EU vat rules. The industry, like many other sectors, will be following this situation closely and we will have to see how it will evolve in 2022.

On a global level the shortage of semiconductor chips hampered the supply of new cars, and while the situation is improving, it will take time to get back to normal levels. In the first half of 2022 there will be an issue with the supply of new cars and we hope that will resolve itself to some degree next year.

With the dual registration period January to June and July to December, we would be hopefully that any potential sales we might lose because of supply issues in the first half of the year could be recovered in the second half of the year.

104,563 total new cars were registered year to date (January-November) compared to 87,724 for the same period in 2020 (+19.2%) and 116,885 in 2019 (-10.5%). Of this total new car registrations 8,533 were electric vehicles (EVs), an increase on the number of EVs in 2020 (3,928) and on 2019 (3,413).

The ongoing growth in the electric car segment is very positive, with a further increase in electric vehicle sales anticipated next year. Notwithstanding this, we are still in the early stages of decarbonising the national fleet and we have a very long way to go to get close to the targets in the Climate Action Plan.

The decarbonisation of the national fleet is both a massive challenge and a great opportunity for our industry. In the right economic and taxation environment, the Irish motor industry can rise to this challenge and deliver for the country, both on an environmental and economic levels.

However, the portents are not good. In Budget 2022 we saw another increase in Vehicle Registration Tax (VRT) on new cars for a second consecutive year, while at the same time SEAI Grant support for Plug-in Hybrid Vehicles (PHEVs) removed; both of these measures are short-sighted and counterproductive.

To do so at a time when our industry like so many others is emerging from a pandemic, underlines that we are not safe from further future increases. It is essential that the existing basket of Electric Vehicle (EV) incentives are maintained, until we see the dial moving towards mass adoption over the next 10 years.

The domestic economy in 2021 bounced back, and the motor industry has certainly benefited from increased consumer spending. It is important this trend continues into 2022 and beyond, which, along with a fairer motoring taxation regime, can allow our members continue to support both their local economies and Ireland’s ambition to drive down emissions.

To read the full article in the IFCR yearbook, click HERE.

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Sainsbury’s store closure sparks Brexit pull-out fears

Linda Stewart — Wed, 20 Oct 2021 15:47:07 +0000

The planned closure of one of Sainsbury’s stores and its petrol station in Northern Ireland early next year has sparked fears that the supermarket may be reconsidering its future here.

Unite says more than 100 workers’ jobs are at risk and questioned whether Brexit was a factor in the decision.

Sainsbury’s said the decision to close its Craigavon store and petrol station was “not taken lightly and is based on a range of factors”.

Describing the decision as “difficult”, the supermarket said it is doing everything it can to find alternative roles within Sainsbury’s.

‘Huddle’

Staff at the store said they were told of the closure ‘in a huddle’ this morning.

Unite regional officer Taryn Trainor called on the company to ensure that 109 workers who now face the prospect of losing their jobs are redeployed.

The supermarket would not confirm how many workers are affected, and how many can be redeployed, but said the store and filling station will close early next year.

Ms Trainor said: “This morning’s announcement will be hugely concerning news for the 109 workers at the Craigavon supermarket who now face the prospect of losing their livelihoods in the mouth of Christmas. Unite has been on the ground engaging with our members to charter a course to secure protections and guarantees from this employer.

“There is absolutely no excuse for this decision. Last year and despite the pandemic lockdown, the company still made a clear profit before tax of £356 million pounds. Sales have surged in the last quarter suggesting that the company will make even higher profits in the year to come.

‘Paying the price’

“Sadly however, this company expects the workers employed at its Craigavon site to pay the price for increasing those profits even further – as their store is not judged profitable enough.

“We are seeking guarantees that the mostly low-paid workers facing the threat of joblessness will be found alternative employment elsewhere with costs of redeployment being met by Sainsbury’s. It is unconscionable that a worker earning a bare living wage of £9.50 an hour should not be expected to cover such costs.”

Ms Trainor also called on Sainsbury’s to confirm its commitment to the post-Brexit Northern Ireland retail market.

“There are fears that this closure could be a weathervane for more to come. The rationale offered by Sainsbury’s for this closure include changing demographics which makes little sense except that as a cover for the impact of post-Brexit trading arrangements under the Northern Ireland Protocol,” she said.

‘Extremely vocal’

“Sainsbury’s has been extremely vocal in recent months highlighting the impact of Brexit on reduced choice of products on shelves here in Northern Ireland. They have also had to use competitors to supply stores in Northern Ireland. These factors would obviously impact profits.

“We need have a commitment from Sainsbury’s that they are committed to Northern Ireland for the long-term. Unite will be engaging with our members in this store to determine our next steps in response to this devastating announcement,” said Ms Trainor.

The supermarket has said customers could continue to shop online and at its stores in the surrounding area, including Dungannon, Armagh and Lisburn.

Sainsbury’s partnered with local wholesaler Henderson’s early this year to help manage post-Brexit disruption. The move meant availability “hasn’t been affected as much as I initially feared”, Emer Compston, store manager for Sainsbury’s Craigavon, said last month.

Covid-related costs

Sainsbury’s said it had dropped to a £261m loss in April as a result of Covid-related costs and more than £600m of restructuring charges for its Argos transformation programme. This offset its surge in revenues, with grocery sales for the year up 7.8%.

Sainsbury’s employees have been notified of the decision to close the store and petrol station next year, a company spokeswoman said.

“We understand this will be an unsettling time for those affected and we are doing everything we can to find alternative roles within Sainsbury’s,” she said.

The supermarket giant said that in the year to 6 March, Covid costs “to help keep our colleagues and customers safe” had been “high”.

However, it said it expected profits to bounce back in the coming year.

‘Huge shock’

Upper Bann MP Carla Lockhart said: “This announcement has come as a huge shock to staff and to the wider community. This store is very popular and Craigavon has proven itself to be a strong base for retail.

“Indeed the Rushmere Centre has recently had the news that Primark is taking up the former Debenhams unit and this will drive footfall even more.

“While there is lead in time to closure obviously this is a difficult time for staff. I trust that support can be provided to them to secure alternative employment and anyone needing guidance can contact me for signposting to support.”

High unemployment

SDLP Upper Bann MLA Dolores Kelly has said the closure of the Sainsbury’s store at Rushmere Shopping Centre in Craigavon is a huge jobs blow for the area.

The Upper Bann MLA said: “This announcement is devastating news for staff and shoppers in this area who frequent this store. For 109 staff to potentially lose their jobs in the run-up to Christmas is a huge jobs blow. This area has long suffered from a chronic lack of investment and this is evidenced by the already high unemployment locally and this news will only make things worse.

“This closure will also leave this huge store empty, while I hope it will be filled by another shop as soon as possible there are only a limited number of companies capable of taking on this huge space. This is the latest in a long line of business closures in this area and we need to see an Executive strategy to revitalise this town and the many other towns across the North that find themselves in the same position.

“Questions have also been raised about what led to this decision with Sainsbury’s making large pre-tax profits last year, with many local people relying on this store during the coronavirus lockdown. My office will be liaising with the staff affected to see what assistance can be offered and I hope that they secure alternative employment soon.”

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