The Government should be careful about changing the rules governing the size of major shops in its upcoming review, small hardware and building supplies stores warned last night.
Under existing rules to protect town centres from competition from out-of-town shopping centres, all stores must have less than 6,000 square metres of retail space to qualify for planning permission.
In the review due to be completed in October, the Minister for the Environment, Mr Cullen, has hinted, however, that changes could be made to accommodate the demands of international retailers. One of them, Swedish home supplies and furniture giant IKEA, has already said it will not set up in the Republic under the existing space limit.
Seeking submissions from interested parties before October 3rd, Mr Cullen said the cap introduced in January 2001 would now be subject to a limited review.
"This cap is now being reviewed, taking account of the need to ensure effective competition in this sector of retailing and to ongoing developments in retail formats, while ensuring planning and sustainable development.
"The guidelines were intended to ensure that the principles of sustainable land use development would apply to the future development of the retail sector, while a competitive retail sector benefiting the consumer would also be facilitated.
"While I am generally satisfied that the guidelines are operating satisfactorily, concerns have been expressed about the impact of the cap on retail warehouses on competition," said Mr Cullen.
The Irish Hardware and Building Materials' Association complimented the Minister for starting a round of consultation "rather than merely amending the guidelines at the whim of certain large-scale retailers".
However, the association, which represents small DIY and hardware shops, said the guidelines were supposed to remain in place for five years. Mr Jim Goulding, its secretary general, said the guidelines had "been enormously positive" for consumers, retailers and suppliers, while thousands of retail jobs had been created.
"The Government should be very cautious about tinkering with the guidelines merely to satisfy the business development objectives of large multinational retailers," he said.
Retailers such as the UK-based hardware chain B&Q "have shown that they can operate and develop their businesses in Ireland within the limits applied by the retail planning guidelines".
Other entrants, such as Aldi, Lidl, Harvey Norman and ID Design have also set up, or are about to set up, without suffering ill-effects from the planning guidelines.
"They might prefer larger format stores to help them deliver greater profits, but their operating preferences should be a secondary consideration to issues of sustainability, spatial planning, national roads policy and the vibrancy and vitality of town centres," he said.
"It is important that the Government is not bounced into changing these guidelines merely because some foreign operators have indicated they will not locate here unless we change our laws. This high-handedness must be rejected."
The association has 600 members operating 800 outlets throughout Ireland, who between them employ 24,000 people.
Meanwhile, B&Q welcomed the review. "We have made the point to the Government that the regulations are anti-competitive and do not give the customer the full range of value," said a spokeswoman.
B&Q already operates a shop in the Liffey Valley Shopping Centre in Dublin and is set to open another in Tallaght in October, creating 170 jobs.
It plans to set up a further eight stores. "But we have never said that we want all of them to be big stores. Some of them, in Dublin, would be, but others would not," said the spokeswoman.
