Irish pubs in crisis after 4,800 jobs cut
Irish pubs are urging the Government to take action to help the industry after 4,800 jobs were lost in the last 12 months.
At a "crisis" meeting yesterday, the Vintners Federation of Ireland (VFI) — which represents 5,000 rural licensees — revealed that 81% of pubs had reported a downturn in revenue for the summer period from May to July 2009, with 79% reporting a 10% drop and 40% a 20% drop in takings.
Of those surveyed, 50% had made staff reductions in the last year and 54% said they would have to make further cutbacks in the coming year.
A total of 43% have had to cut back on opening hours and 99% believe that more pubs in rural areas will close in the next year if action is not taken.
"We knew the pub industry was under pressure and the research has verified this," said VFI president Val Hanley. "In fact, it is worse than we thought as over 4,800 jobs have gone in the last twelve months which has a huge financial cost to the state as well as a human cost. Rural pubs seem to be suffering the most and those pubs which relied on tourism trade are also well down.
"The industry is facing another very difficult few months which could decimate the sector and lead to more closures and job losses."
The VFI called for:
• Incentives to encourage employment
• A reduction in the higher VAT rate from 21.5% to 15% and in the lower rate from 13.5% to 10%
• Appointment of an ombudsman to get banks lending to pubs
• A reduction in local authority, commercial and water rates
• Ensure there is no reduction in the drink drive limit
Call for action
Padraig Cribben, chief executive of the VFI, said: "We are now calling on the Government to help us save the pub trade in Ireland and to prevent more closures and job losses.
"Incentivising those in the hospitality sector to encourage employment would be one such move as would reducing the VAT rates and ensuring that SMEs have access to credit facilities.
"Water and commercial rates are also way too high in this country and they are crippling publicans. We would also strongly urge the Minister for Transport not to reduce the blood alcohol levels for drivers as this will have no impact on road fatalities and will directly lead to pub closures and job losses."
