€435m lost to cross-border shopping

A NEW CSO report on cross-border shopping shows Irish shoppers spent some €435m shopping in Northern Ireland from the end of June 2008 to the end of June this year.

Now Retail Ireland is seeking immediate action by Government to protect jobs.

However, the report shows that most people shopping in Northern Ireland are from the border region.

Torlach Denihan, director Retail Ireland said: “The new figures give us further grounds for concern regarding the level of cross-border shopping. The report’s scope does not extend to the job losses that have occurred and the cost to the State, and thus the taxpayer, in terms of income tax lost and social welfare payments.”

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“We estimate that every 150 cross-border shopping trips result in the loss of one job here. Cross-border shopping during 2009 will cause 11,000 people to lose their jobs. The retail staff that will lose their jobs during 2009 earn over €400m. The total cost to the State in income tax lost and social welfare payments for the 2009 job losses will be €220m.

The body, which represents the retail sector in Ireland and is affiliated to IBEC, said the Government must takes steps in the Budget to combat the problem.

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