Currys, which operates in Limerick and 18 other locations around the country, have made several recommendations to the Government, including the slashing of VAT in the Republic from 21.5% to 18%, as well as “immediate and retrospective” rates relief.

The company issued a statement this week urging the Government to stop “playing politics” with retail in Ireland, and to come to grips with the negative effect this is having on consumer sentiment.

Increasingly, the statement says, consumers believe that the best value is to be had only in Northern Ireland and not in the Republic.

The 19 Currys stores in Ireland are located in Limerick, Dublin, Cork, Galway, Sligo, Navan, Drogheda, Dundalk and Carlow and Letterkenny.

“Retailers need to look at their costs forensically. Of the key two-rent and labour-the report recommends a legislative solution that allows retailers to negotiate downward rental costs from landlords. Reducing staff numbers is another cost cutter but the report argues that, in certain cases, retailers should be given an incentive to retain employees rather than add to dole queues,” a Currys statement said.

As a business with stores in the Republic and the North, Currys took one product category-large TV sets-and analysed sales over a two year period from May 2007 to May 2009, centred on retail purchases by shoppers from the South in Newry, Enniskillen and Derry.  

The reports added that business is clearly still migrating northwards. Declan Ronayne, Managing Director of DSG Retail Ireland Ltd said: “The Currys Report is just a snapshot of what's happening-and being allowed to happen-to the retail business in Ireland.  

“The Government needs to take action on VAT and new incentives to support retailers in the Republic to safeguard trade and employment prospects and to keep much needed exchequer revenue in this country,” Mr Ronayne said.

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