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Republic bordering on financial disaster

Saturday, 6 December 2008

Earlier this week we reported on the boom time being enjoyed by traders in the Newry and Londonderry areas as the Republic’s ‘Euro tourists’ chased bargains on this side of the border. But, as Niamh Horan reports, it’s a different story if you’re watching your livelihood disappear up north

From yesterday morning, the first sign of the mass Christmas shopping exodus could be seen 11 kilometres outside Newry.

Cars packed with eager shoppers sat bumper-to-bumper all the way into the town.

Southern registration plates illustrated how far a nation on the brink of an economic meltdown was willing to go to save some of their hard-earned money.

From Dublin, Kildare, Wexford, Tipperary and Roscommon -- they waited patiently, armed with their cash.

After an hour waiting in traffic, drivers began to step out of their cars and stick their heads out of sunroof windows to see how far the queues stretched and they quickly discovered it was further than the eye could see.

You would almost have to witness it to believe it -- or to even begin to try and grasp just how big a dent this is going to leave in the Irish economy.

After two hours, the toilet breaks began and handfuls of drivers got out to relieve themselves at the side of the road. As with bargain-hunting, desperate times call for desperate measures.

I pulled down my window to chat to neighbouring cars and to see if there was even a hint of guilt among the trail of shoppers. One by one, they gave a uninterested shrug and shook their heads.

Debbie, a blonde in a Volvo jeep, pulled up beside me. She was bringing her two Dublin girlfriends shopping and couldn't believe how quickly word has spread about the good deals, having been up the previous week.

"I thought there was an accident up ahead so my husband rang the guards to find out why the tailbacks were so bad and it turns out it's all down to people going shopping. It's unbelievable."

Like every other driver I chatted to, she had no qualms whatsoever about bringing her money north.

"Ten years ago, when everyone was coming down to do their shopping in the south, I didn't hear anyone complain. What goes around comes around."

Before driving off she gave me some extra tips to get most out of my Christmas spend.

"Banbridge has some fantastic outlet stores. There are about 70 shops in all. Make sure you go to the information desk and they will give you up to 30 per cent discount vouchers for your first visit," she beamed.

Another driver who pulled up beside me had an empty trailer attached to his car. "Will that be full on the way home?" I asked. He gave me a smile and a nod and told me he was off to load up at Ikea.

A lengthy three hours after I left Dublin and I was in the heart of Newry, but the two main shopping centres, Buttercrane and The Quays, were still out of my reach.

A trail of traffic was snaking into the car park of each centre, horns were blowing, people fighting for spaces.

And with every one car pulling out, three more were waiting to take the spot. It was utter mayhem.

The car park attendant said his job has changed from pointing out spaces to defusing full-blown rows between customers.

"Tempers are flaring because people are so frustrated with the traffic. I think the fact that the locals are a bit bitter about all the people coming up from the south and causing the queues doesn't help."

Inside The Quays shopping centre, there was no let-up in the volume of shoppers. Nicola from Diamonds Jewellers says it has got to the point where the queues are repelling locals.

"I know a woman who spent two hours in her car the other day simply coming down the hill into Newry. It's insane."

She said their shop has had to re-order their Juicy Couture range several times to satisfy "groups of young girls from Dublin".

Shop windows have begun putting '€ for ?' signs in the window and, with the euro so strong against sterling, the majority of shoppers say they'll be paying another visit to the town over the next fortnight. It seems there's no end to their insatiable appetite for a good bargain.

As Mary Flynn from Taugh Macconnell in Roscommon said: "It's worth the drive. I have three neighbours who came home from the north last week with carloads of shopping and there's no doubt that I'll be back again on December 8."

I asked if she feels somewhat guilty about her shopping spree as jobs fritter away back home.

"People will always go where the bargains are. It's up to the Government to do something to save the retail sector. People are going to lose their jobs over this, but it's not up to us to sort it out."

The policy of looking after number one prevails throughout the crowd.

Tara Griffin, from Clondalkin, Dublin, says there's only one thing she's worried about and that is looking after her family.

"I'm not here to look after other people's jobs, that's the Government's duty. My job is to look after my family.

"I've saved literally hundreds here today – and I’ll be back.”

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These people are materialistic, selfish, short sighted idiots - they are causing their own economy to self destruct and when it colapses they will not be imune.

There isn't one of them who would work for the wages and conditions which prevail in the North.
For some strange reason they think that they can get high wages in the South and spend them in the North.

Guess who they'll go whinging to demanding social welfare when they don't have a job? It won't be the queen!

Posted by James Swann | 14.12.08, 01:19 GMT

We see the same thing in Toronto. If the Canadian dollar is doing well against the US dollar then everyone heads south to Buffalo for the bargains.

It is not acceptable for a government to blame people for doing this. Especially if prices are high at home because of taxes.

It is human nature for people to take advantage of a bargain.

In all likelyhood the reverse will be happening within a year or two.

Posted by Mick | 12.12.08, 05:11 GMT

to beat the traffic head a bit further to Portadown, Craigavon or Lurgan all the bargains but a lot less traffic !

Posted by James | 11.12.08, 10:54 GMT

Surely the paper of record in NI can come up with a less sensational headline than "Republic bordering on financial disaster" to describe some cross-border shopping ?! I think the financial stability of the Republic will withstand this latest phase of cross-border shopping! Cross border shopping has been going on since the creation of NI and will continue with advantages swinging between one side and the other. Politicians in the Republic asking shoppers to stay south of the border are way of the mark - people will go where there see value as is their right.

BTW Kenneth Bate VAT can be cut in Ireland if the Irish government so wishes this has nothing to do with belonging to the Euro and does not require commission authority. Taxation rates are the remit of national governments.

Posted by Jake M | 08.12.08, 12:12 GMT

I live in Belfast, but I work in Dublin two days a week, so I know why people are coming up North to do their shopping, the costs of goods have risen significantly over the past 12 months.

A simple shop in Tesco's in Dublin for carrots, humous, a pack of grapes and a bottle of water came to €13 recently, I wouldn't expect to pay more than £6 for the same in Belfast?

My sister-in-law who lives in Dublin is getting us to buy all of her Christmas gifts from Argos, simply by going on-line and having the goods delivered to our address, the savings are anything up to 30% off.

As for booze, two double vodka's and coke cost me €28 last week in Dublin, that will be the last time I go out for a drink, the same would have cost me £14 in Belfast.

I know if the shoe was on the other foot, I would be heading south, as I have for diesel for the past ten years, so I'd just like to extend a warm Belfast welcome to anyone who has never been, Belfast is a great city with friendly people!

Posted by Steven | 07.12.08, 18:36 GMT

There is not going to be an 'upturn'.

Anyone who is connected to the energy, farming or global
corporate worlds, know this as a fact.

All those of you who are spending easy come- easy go - will be homeless, hungry and open to the kind of abuses those in the Congo are suffering at present soon enough.

Pay off the mortgage or move back in with your parents if you are lucky enough to have either.

Fly you Fools.

Posted by Sarita | 07.12.08, 11:04 GMT

Three hours from Dublin to Newry? You could be in Belfast in half that time - and the prices are cheaper with more selection!

Posted by Centaur | 07.12.08, 01:58 GMT

I'v commented here before about shopping north of the border, I'v always shopped in the wee six. I live on the north side of Dublin and I can be in Sprucefield in the same time it takes me to get to Dundrum town Centre.
I have no sympathy for southern traders and their rip off mentality.
WE are always told how it is more xpensive to transport goods to the South, how come the German trader ALDI can sell stuff imported from france and germany cheaper than TESCO or any other multiple.
Look at DUNNES they never pass on the weak sterling to their customers.
HELL RUB IT INTO THEM IS WHAT I SAY!!
THIS IS THE SURVIVAL OF THE FITTEST.
If things are as bad as southern government say they are let them stop paying their ministers 250,000 Euro per year or 5000 EURO per week.
SOME CHEEK THEY HAVE APPEALING TO FOLK'S PATRIOTISM TO SHOP IN THE SOUTH.

Posted by Anton Good | 06.12.08, 23:37 GMT

Am I mistaken or did this article appear almost a week ago in the Sunday Independent

Posted by MervynB | 06.12.08, 20:28 GMT

And New Labour want to deliver us into the Euro, no thanks! While I take on board what kenneth bate says but I'd still like to take my chances with sterling.

Posted by T J McClean | 06.12.08, 18:35 GMT

Why do you use the word guilt?? The pound is a busted flush and has been under Gordon Browns so-called financial tutelage since 1997. VAT will not be cut in Eire because they belong to the Euro currency and require commission authority. Cutting VAT in the UK was a futile & politically motivated action which has achieved nothing. The £ will be par with the euro within 12 months and although the UK government deny it, they are currently already negotiating a switch to the Euro. So the people of Newry should make hay whilst the sun shines!

Posted by kenneth bate | 06.12.08, 11:06 GMT