1. This report comes to the unsurprising conclusion that consumers are price and value conscious, savvy and will travel extensively to avail of good value and savings. However, a key conclusion from this report is that consumer thinking that sees value only in Northern Ireland is embedded and must be addressed. 2. This perception is best addressed by a reduction in the VAT rate. The rate should be reduced from 21.5 % to 18 %. With the cost of currency conversion in the order of 2 % this creates a 1 % price disadvantage to Irish retailers. 3. Many retailers in border areas will not survive if these trading patterns are to continue. Retailers in Donegal, Louth, Monaghan, Cavan and Sligo should receive immediate and retrospective rates relief. 4. The cost of running a retail business in the South must be addressed. Retail rents cannot flex downwards as markets decline. Retailers are faced with the double whammy of consumer migration to the north and declining sales. A legislative solution to downward rental flexibility is urgently needed. 5. Retailers must examine their costs. The two key costs in retail are rent and labour. Rent is addressed in point 4. A reduction in labour costs will mean an unwanted reduction in employment. The solution is to provide retailers with an incentive to retain employees rather than add to the dole queues. 6. Government, its agencies and opposition should understand the influence they can have on consumer sentiment. The effect of "playing politics " with retail price differentials has been considerable on retail employment, as has a political desperation to blame retailers. Retail closures abound .
