Cootehill and Clones tout for business

The challenge facing smaller towns to hold on to their local shops and indeed to grow their commercial base is something that is focusing the minds of local town councils in both Cavan and Monaghan. With the larger county towns being chosen as the location for branches of leading chain stores, there is concern that the pulling power of these large outlets selling food, light hardware, sports goods and other discounted lines of consumer products will further suck the life from smaller urban centres that have been providing a valued service to their rural hinterlands for centuries. Of course stores such as Supervalu, Centra, Spar and Mace are to be found in smaller towns but town councils, being fully aware of the drift away to larger centres, are now forced to make a sales pitch for even larger stores in order to draw in the necessary flow of people that can create a spin off for small retail outlets, which are struggling to survive. Clones Town Council noting the difficulties the chain store is having in setting up a base in Monaghan Town has written to Aldi urging them to consider Clones as a location for their Monaghan store. A similar invitation has also gone forward from Cootehill Town Council to persuade chain stores such as Lidl and Aldi to come to Cootehill where they would receive a welcome. However, efforts to persuade retail chains to consider smaller towns is proving quite a challenge as those large international enterprises with efficient marketing arms operate in a strategic manner, locating in centres capable of generating a substantial customer footfall both from the immediate local area and also from a wider catchment. There are exceptions to the rule such as Tesco's decision to site a large branch of their operation in Bailieboro. An impressive facility, this new Tesco store is designed to serve Bailieboro and a catchment area that includes most of East Cavan and adjoining areas of Monaghan and Meath. It could act as a pointer for possible further expansion into other smaller towns in the future. However, in these recessionary times it is difficult to envisage any largescale expansion even by the bigger retail chains. Aldi has just opened a new store in Cavan town, a development which was in the pipeline for sometime. The German owned group has also resumed negotiations with the relevant local authorities in Monaghan with regard to their preferred option of opening a store in the new business park developed at Clones Road, Monaghan by local industrialist, Barry Aughey. Chairman of Clones Town Council, Ross Mealiff, indicated at the recent meeting of Clones Town Council that Aldi would consider Clones if things didn't work out in Monaghan. However, Mr. Aughey has the ready-made store space available for the retail firm and there is pressure on the local authority to reach an accommodation with the German company that will allow them establish an outlet in Monaghan town. Another town councillor in Clones, Deirdre Kelly, urged the council to maintain contact with Aldi in relation to the invitation to establish in the border town but it will be a tough battle for both chambers of commerce and town councils in these smaller towns to grow their shopping base at this time. Invitation The concern that town councils have for the future of their towns is reflected in the appeals, which are now going out to various retail chains to come and locate with them. Speaking at the October meeting of Cootehill Town Council, Don Smith proposed that the council write to the likes of Aldi and Lidl inviting them to establish a presence in Cootehill. According to Cllr. Smith a positive response from the multiples could eventually result in the creation of new jobs and more competition among businesses in Cootehill. He believed that the Cootehill Chamber could also take a lead in petitioning major players to set up in the town. If Aldi and Lidl felt it was appropriate to set up in neighbouring towns, there was no reason why they couldn't establish a presence in Cootehill, he suggested. His sentiments were echoed by other councillors with Damien Kivlehan remarking that people were entitled to avail of the best choice available while Council chairman, Paddy Halton, felt that the onus was on the local Chamber to entice the multiples to set up in Cootehill. If there was more competition among local businesses, prices would be lower for the consumer, stated Cllr. Halton. According to Cllr. Sean Igoe there was an obligation on everyone with the town at heart to encourage and promote competition and he was sure that people in Cootehill would be pleased to see either Aldi or Lidl come to the town. Meanwhile, Cootehill Chamber president, John Foy, told The Anglo-Celt that the Chamber was always open to new businesses coming into the town provided they complied with the planning guidelines. He was a supermarket owner himself and didn't have any problem with competition but he was against out-of-town developments, which experience demonstrated drew away shoppers from the traditional shopping areas. He referred to the new Tesco store in Bailieboro as being a case in point. "Otherwise I have no problem of new businesses coming in here to the town area if it helps to hold on to people going to Cavan or to the North," said Mr. Foy. Pressure to reduce VAT Businesses in smaller towns and in the Border region in general are finding it tough at the present time with a strong euro making shopping in the North once again attractive. For that reason business owners in Cavan, Monaghan etc have to bring out all their skills as entrepreneurs if they are to survive through the difficult times ahead. There is pressure on for the government to play an active role and a motion was adopted at the last meeting of Cavan County Council calling for a reduction in VAT by four per cent. Cllr. Charlie Boylan proposed that the Minister for Finance, Brian Lenihan, should pull back the level of VAT from 21.5% to 17.5% in the forthcoming budget in order to assist local businesses. It was Charlie Boylan's contention that the minister's decision to increase the level of VAT by 0.5% in last year's budget instead of bringing it down to nearer the UK level "drove a wedge between North and South and left businesses with a serious problem". It is now felt that if the Minister can reduce the VAT, and if as predicted there is an increase in VAT in the UK budget, that both these factors will balance things out more evenly in favour of businesses on this side of the Border. Monaghan Councillor, Seamus Treanor, has also called for similar VAT reduction in a bid to support local business. This is an issue which won't go away and between now and Budget day there will be intense lobbying by the local business community on politicians in a bid to seek some form of comfort in the difficult situation in which small businesses currently find themselves.