North-bound shoppers urged to "think long-term"

Business people in Mullingar are becoming concerned about the possible long-term effects which could result from an increased number of shoppers heading across the border to do their Christmas shopping, or in many cases, to carry out a monthly shop.As the economic downturn begins to bite, the N52 - Westmeaths gateway to the North - has been jammed with cars heading for Ulster border towns like Enniskillen and Newry, as they go in search of bargains and better deals.Mullingar Chamber of Commerce President Paul O"Brennan has said this week that while there was no way of calculating the Christmas retail leakage, it was clear that price differences between North and South was having an effect on local business.'There"s a lot of people going north, and because we"re only an hour and a quarter from places like Newry, we"re losing out as well as any other area,' Mr. O"Brennan said. 'The two main reasons for this are the strength of the euro against the pound sterling, and the recent temporary VAT cut in the UK, which puts the Irish VAT rate six percent ahead of the UK.'With the recession in full swing, local businesses are feeling the pinch, and have called on Mullingar shoppers to think about the long-term ramifications which may result from spending their money across the border.'I"m a great believer in people spending money where they"re earning it, and helping to keep themselves and their neighbours in a job locally,' said Des Walsh, proprietor of Walsh"s Jewellers on Oliver Plunkett Street, Mullingar. 'If everyone kept going north, businesses would close down and there"d be no jobs for anybody.'It"s tempting for people to do it, but they should think of the future and long-term scenarios. The Government could be doing a lot more, but at the end of the day it"s up to people themselves.continued from front pageImagine how they"re suffering in the border towns.'Tommy Nally, proprietor of Rochfort"s store on Mullingar"s Dominick Street, said that despite the reports of retail leakage, he still enjoys the loyal support of his regular customers. 'When you deal with people properly, you"ll find that they"ll come back to you,' he said.However, Mr. Nally admitted that the steady stream of North-bound shoppers is a worry for Mullingar businesses.'The reality is that while this is happening, the same people come to businesses like us looking to get jobs for their kids during the summer, or at Christmas. How do you fathom that?'I remember the same thing happened during the tough times in the 80s, when people used to go up to Jonesborough to do their shopping. It"s very short-sighted.'The Chamber President said that while it was a long shot, a proposal to cut the VAT rate from 21.5 percent to 13.5 percent for the month of December might be worth exploring.'If the Government does the maths and concludes that we might lose more in the long run, then we"d have to reconsider. It"s a crazy idea, but if it kept retailers rolling for Christmas, then it might be worth taking it on board,' Mr. O"Brennan said.Under the current economic circumstances, he said that he couldn"t blame Irish people suffering in the midst of a downturn for attempting to save money. 'You can play the patriotic and 'guaranteed Irish' cards, but if people are suffering, and they"re looking at saving to allow them to buy what they or their kids need, then I can"t argue with that.'But I find it morally wrong for people who can afford to spend money at home to go north of the border.'Mr. O"Brennan said that if he was a retailer, he would consider a voluntary price drop in the run-up to Christmas. 'I"ve seen the very dark days of the 1980s when nobody had a penny, and in these times, between business and government, there has to be a bit of imagination.'A positive sign was the decision taken by Mullingar Town Council"s nine members not to increase commercial rates, and I have called on Westmeath County Council to do the same. If they don"t follow suit, they won"t be showing leadership,' Mr. O"Brennan added.