Committee Reports > List of Committees > Joint > 2000 > Committee on Enterprise and Small Business > Report - A Report on Sunday and 24 Hour Trading

JOINT OIREACHTAS COMMITTEE ON ENTERPRISE AND SMALL BUSINESS

A REPORT ON SUNDAY AND 24 HOUR TRADING

PRESENTED BY

DAVID STANTON T.D.

8 DECEMBER 1998

ACKNOWLEDGEMENTS

The help and assistance of all that made submissions to this report is acknowledged and these submissions can be viewed in the appendix.

INTRODUCTION

It is obvious that many changes with regard to trading hours have occurred in the retail sector in the last number of years. One of the most dramatic changes has been the extension of opening hours which involves many of the larger outlets opening on Sundays and until late on Thursdays and Fridays.

Some stores have also experimented with 24 hours opening, in the run up to Christmas.

Members of the Oireachtas Joint Committee on Enterprise and Small Business have expressed an interest and some concern at the possible implications of these changes. It must be noted that the then Department of Enterprise and Employment commissioned the Irish Productivity Centre (IPC) to undertake a study to examine the implications of Sunday trading (in the retail trades) which was presented to that Committee in May 1995. In its executive summary the IPC implicitly recognised that Sunday trading was a reality and further implied that Sunday trading would be extended throughout the retail sector.

METHODOLOGY

With regard to Sunday and 24 hour trading it is self evident that a number of interest groups exist. It has been the practice of the Oireachtas Joint Committee on Enterprise and Small Business to invite individuals and groups to come before the Committee in order to make presentations orally and/or in writing and to answer questions from members of the Committee.

Accordingly, in line with this practice, various individuals, interest groups and organisations were contacted and invited to submit their views on Sunday trading and 24-hour trading, in writing, to the rapporteur.

It should be noted that 40 invitations were issued and that there were 18 responses. As well as this, invitations were issued to 58 Chambers of Commerce around Ireland and of these 13 replied. All the responses are included in the appendix to this report. The responses were then analysed and conclusions drawn.

A number of meetings were held with interested parties in the course of drawing up this report. These were mainly for the purpose of clarification with regard to the issues involved.

Sunday trading and 24 hour trading in Europe was also examined and a number of studies are included in the appendix.

SUNDAY TRADING AND 24 HOUR TRADING

The arguments put forward with regard to Sunday trading range from total abolition by legislation to no regulation at all. There were also requests for opening hours to be limited by law in certain respects. It should be noted that the large multiples such as Tesco and Marks and Spencers are both in favour on Sunday trading. Superquinn maintain that “Companies must be left free to adapt to the market and to provide what ever services that customers need”. They are therefore not in favour on legal restraints on opening hours. However, Superquinn regret personally this extension of traditional retailing hours but maintain that it is essential that businesses are free to adapt to changing customer demands.

On the other end of the scale the Ballybay Presbyterian Church believe that Sunday is a special day for the worship of God and for rest from normal routines and for reasons of health, family, prices and religion they discourage members from shopping and trading on Sundays, believing that six days out of seven are adequate.

The Church of Ireland on the other hand are concerned that “Sundays should be distinctive from the other days of the week and that every effort should be made to preserve the opportunity of its people to attend Sunday worship”. They also seem to accept that traditionally larger stores, particularly in cities and bigger towns open for business on five Sundays prior to Christmas.

They note the possible adverse effect on the corner shop and that the loss of the corner shop could cause elderly and those people with no transport to suffer, as they would find it very difficult to get to the larger shopping centres. The Church of Ireland put forward a compromise view and wishes to preserve the opportunity for its people to attend Sunday worship and recommends that larger outlets should not open until, at least after 12 noon on Sundays.

Chambers of Commerce based in the west of Ireland that responded were very concerned about Sunday trading and were of the opinion that only convenience stores should be allowed to open on Sundays. Sunday trading and 24 hour trading was seen to be anti-social, anti-family and anti-small business accordingly to the Cobh Chamber of Commerce. Cootehill Chamber of Commerce was concerned about centralisation to larger towns and cities as this contains the demise, as they saw it, of smaller rural towns such as Cootehill. Chamber of Commerce of Westport, Nenagh, Ballina, Claremorris and South Dublin expressed similar views.

Nenagh Chamber of Commerce carried out two surveys – results attached.

Both SIPTU and Mandate put forward arguments for controlling Sunday and 24-hour trading. They are obviously concerned about the terms, conditions and jobs of their members in the retail trade. However, it is interesting to note that SIPTU would have a strong preference for a total embargo (except for 2/3 Sundays before Christmas) on all Sunday trading of retail outlets above a certain size.

The National Federation of Retail Newsagents represents a group of retail outlets that have been, in the past, the only outlets which opened on a Sunday as a result of consumer needs for newspapers, confectionery etc. They oppose out of town shopping and Sunday trading and maintain that community shops and village and high street shops are being forced to close down because of what the say is the “predatory advance of multiples” which according to NFRN has seen them encroach into the traditional lines of the news/magazine/confectionery business.

The National Federation of Retail Newsagents made two further interesting points. They highlight, that what they term as the severe invasion of the environmental entitlement of neighbourhoods who are subjected to the increase level of noise associated with trading and shopping at unsociable hours and they argue that having to work unsociable hours in the retail sector is a major contributor to the fact that there is a dearth of employees to take up positions at present in the sector.

The Retail, Grocery and Dairy and Allied Trades Association (RGDATA) made a substantial submission to this report. They have also carried out research into the question, copies of which are attached. RGDATA believe that new legislation is required to regulate Sunday trading and 24 hour trading.

They call for a repeal of the shops (Conditions of Employment Acts) 1932 and 1948 and also call for distinction to be drawn in new legislation between different sized shops. RGDATA have, in their submission, included consideration on the wider implications of more liberal opening hours.

They speak about the effect on staff, on residents living adjacent to shopping centres, on the independent family owned retailer, on consumers, on sport and social clubs, on the Churches, on the environment and on rural Ireland. RGDATA argue that 24-hour trading should not be regulated and have put forward suggestions regarding their proposals with respect to opening hours and regulation of same.

The Irish Pharmaceutical Union would not welcome the prospect of additional trading hours as the personal presence of the pharmacist is required in a pharmacy at all times. The IPU maintains that the vast majority of their members have little enough time to spend with their families or to pursue leisure activities and if hours of trading were extended widely it could lead to excessive demands being made on its members.

The Cork Business Association felt that Sunday trading and 24 hour trading would be detrimental to the business of small traders as they could not afford to pay staff treble time and compete with the bigger stores. These traders would therefore, be against the idea of Sunday trading and 24 hour trading.

Easons do not accept the need for further legislation on the issue of Sunday trading and 24-hour trading. They maintain that customers’ expectations are being met by the present arrangements in most of their shops and that they have agreed with their staff in those locations on rates of pay etc.

The Irish Business and Employers Confederation (IBEC) concentrated, on their submission, on the recently issued Code of Practice on Sunday working in the retail trade.

They included a copy of the report to the Minister for Labour, Trade and Consumer Affairs on Sunday working in the retail trade a copy of which is attached.

It should be noted that in Europe, most countries have restrictions for Sunday trading and late night opening of shops. However, in recent decades several countries have liberalised these restrictions. Recreational shopping is put forward as part of the rational for easing the restrictions.

RECOMMENDATIONS AND CONCLUSIONS

It is interesting to note that, despite reminders, that so few of those invited to make a submission actually responded. This could, of course, indicate either a lack of understanding or a lack of interest in the issues involved.

The fact that virtually no regulation exists in Ireland with regard to Sunday Trading, at present, left the larger stores, in particular, free to extend their opening hours to include Sundays. This extended opening began a number of years ago when some stores opened on Sundays prior to Christmas. This practice has extended to virtually all year round in some areas and the practice is still expanding.

From the point of view of the Oireachtas Committee and from the recommendations received it seems that those most concerned and affected by this development are the small and medium sized retail outlets. Churches that responded are also concerned about the matter both from religious and social perspectives.

While those most opposed to Sunday trading never the less accept Sunday trading as a fact of life that is here to stay they none the less are concerned to lay down some perimeters.

It would be preferable if the Minister introduced guidelines, in relation to Sunday trading thus avoiding the need for legislation. These guidelines should be formulated in consultation with all the interested parties.

The guidelines should include hours of opening for different types of shops. Failure to reach agreement on such guidelines would necessitate the introduction of legislation. One of the advantages of guidelines would be that they would be relatively easy and straightforward to amend in the event of changing circumstances. All parties to the guidelines would be required to sign up to them and they would take the form of a registered agreement.

These guidelines could include the following suggestions:

1.It is suggested that there would be a prohibition on all shops opening to the public on Easter Sunday, St Patrick’s Day or Christmas Day.

2.It is suggested that small “stand-alone” shops with a net sales area of less than 300 square meters would be free to open at any time during Sunday.

3.It is suggested that family run shops not exceeding 2000 square meters in net sales area owned and operated by a family and in which a member of a family is present would be permitted to open between 9.00 a.m. and 9.00 p.m. on Sundays.

4.It is suggested that shops larger than 2000 square metres in net sales area would only open after 12 noon and would close no later than 6.00 p.m.

5.It is suggested that all shops would be free to open between 8.00 a.m. and 9.00 p.m. Monday to Saturday.

6.It is suggested that specialised shops such as pharmacies, off licences, fast food outlets and petrol stations to include forecourt shops need to be dealt with separately.

7.It is suggested that where any shop plans to open on Sundays in order to carry out trading or where any shop wishes to extend hours of trading then planning permission would be required from the Local Authority as such a change of use of premises could cause inconvenience and disturbance to other residents in the area and that these third parties should be given the opportunity to object.

8.It is suggested that as garden centres and DIY outlets have built up a tradition of Sunday opening that they should also be involved in the drawing up of these guidelines.