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Algarve business associations drop legal actions against IKEA

ikeaplanThe six Algarve business associations that took Ikea to court to try and halt the construction of its retail park near Loulé have decided to drop their claims.

“The Association of Trade and Services of the Algarve Region (ACRAL) has "dropped the legal action against IKEA, a decision backed by the other business associations in the Algarve involved in the same process.

“One of the first steps taken after the new president of ACRAL, Álvaro Viegas, took over was to meet the Ikea management and end the dispute between the parties that had been going on since 2011," reads an ACRAL statement.

The association noted that "since the beginning of the Ikea licensing process, ACRAL and several other business associations in the Algarve have tried in court to challenge the implementation of the project," but now, "as the licensing is concluded it does not make sense to continue the litigation."

"Ikea will be a reality - it's up to us to find the best strategies to turn this threat into an opportunity: the municipalities here have a good opportunity, together with ACRAL, to find solutions to attract many thousands of Ikea visitors to their cities," said Viegas in a refreshingly objective and sensible statement.

The measures filed in court had tried to halt the construction of the commercial complex and the Ikea store whose first stone was laid in August 2015 by the then Deputy Prime Minister Paulo Portas who described the investment of €200 million, as "one of the largest of this governemnt."

The Ikea store under construction near the Algarve Stadium is part of a complex that includes a shopping mall and a retail zone which will create about 3,000 jobs.

During the licensing process, three injunctions were lodged, the latest by ACRAL in July 2015, in concert with ANJE/Algarve, Associação de Empresários de Quarteira e Vilamoura, Associação de Hotéis e Empreendimentos Turísticos do Algarve (AHETA), Associação dos Industriais Hoteleiros e Similares do Algarve (AIHSA) and lastly, the Confederação de Empresários do Algarve (CEAL).

In 2011, four of the six associations had contested the urbanisation plan, but the court gave its assent to the intended location.

To enable the store to be built, Loulé council in 2013 approved the Caliços-Esteval Urbanisation Plan, which reclassified the land as urban, it previously had been National Agricultural Reserve.

As the development now is well on its way to being completed, the withdrawal of these various legal actions are welcomed and the action of Álvaro Viegas to be congratulated.

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Comments  

+1 #6 dw 2016-04-15 14:10
Ikea accused of dodging $1.1 billion in taxes

http://money.cnn.com/2016/02/14/news/companies/ikea-tax-avoidance-europe/index.html
+2 #5 Harry.W 2016-04-15 11:40
This attempt to frustrate the arrival of another IKEA store in Portugal just emphasises how Portugal never even attempted to reach the minimum standards of opening its economy to 'other EU states competition' that it agreed to when joining the European Union 30 years ago.

There are thousands of examples and we only hear of the big ones because they have the resources to fight back. And finally get heard.

Undoubtedly- as with the Finns - this IKEA development is only going ahead because Sweden (where it was founded) and no doubt the Netherlands as its abode is now; warned they would be seizing Portuguese Government owned assets if ever called upon to bail out Portugal again. This now being highly likely sobered the Portuguese VIP's up.

But still leaves many thousands of the little EU entrepreneurs having lost their "inward investment" to Portugal. And with no hope at all getting justice from that absurdity that few locals themselves have any trust in - the Portuguese Justice System.
+3 #4 Peter Booker 2016-04-15 09:02
But the 3 000 jobs created will merely replace those lost by the traders which IKEA puts out of business. This type of job displacement has happened all over Western Europe, and now it is happening in the Algarve. It is called competition, and it is to be welcomed.

An IKEA in Loulé will be far more accessible than that in Seville.
+6 #3 Charly 2016-04-13 16:51
Sorry mr DW but I suppose you simply make assumptions and you don't know exactely how IKEA makes its accounts. Well, I can tell you that IKEA INTERNATIONAL operates from its worldwide office in Zaventem (Brussels) where all accounts are consolidated and budgets made and taxes paid. The office has been inspected by tax services recently and as far as known today there was nothing "irregular". And no, there is no offshore involved at Ikea.
+4 #2 dw 2016-04-13 10:50
So as usual international corporate profiteering trumps local opinion and we're supposed to welcome another soulless giant concrete shopping mall into the world. Ikea will be using their unfair advantage of dodging tax via offshore vehicles to compete on prices. The 3000 menial jobs will no doubt mostly be on minimum wage level temporary contracts and all the profits will be heading out of Portugal straight into the offshore accounts of the global elite.
+6 #1 Charly 2016-04-13 04:44
That mr Alvaro Viegas seems to be a clever man ! Congratulations for this courageous decision. Should there finally blew a new wind trough middle aged Portugal ?

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