The Vintners Federation of Ireland has called for a reduction in VAT and a cut local authority charges to help save some 5,000 jobs which it claimed would be lost unless action is taken to save the bar trade.
Publicans attending a meeting of the VFI national executive council today said some 1,700 bars have shut their doors in the last five years with just under 5,000 jobs lost in the last 12 months alone.
They also claimed banks were not giving credit to small businesses and called for a ombudsman to monitor their lending habits.
VFI president Val Hanley said: “We’re under pressure. Jobs are being lost, pubs are being closed, the rural fabric of rural Ireland is closing down.
“They’ll be no social outlet if we don’t take something in hand.”
The VFI called an emergency meeting of members after a survey found 4,800 jobs were lost in the last 12 months. The body predicts another 5,000 will be axed by next year with further pub closures.
Some 140 of the VFI’s 4,600 members were surveyed and the key findings are:
- 81 per cent said revenue was down over the summer compared to the same period last year, with the vast majority saying they had lost 10 per cent.
- Half said they laid off staff over the last year, with 60 per cent saying they let two or more go.
- Some 54 per cent said they expect to have to lay off more staff in the next year, while 43% said they’ve been forced to reduce opening hours.
- 88 per cent have tried to cut costs, with 67 per cent reducing electricity use and 30 per cent cutting-back on the amount of water they’re using.
Padraig Cribben, VFI chief executive, said publicans also faced high entertainment charges, with premium television packages costing up to €3,000 a month.
“There’s a sign of an industry in a level of turmoil,” Mr Cribben said.
But the industry bosses claimed prices for drink were fair as just one supplier had cut their charges and the alcohol tax rate in Ireland was the highest in Europe.
Publicans attending today’s meeting said they had never seen it so bad.
Michael Fitzgerald, whose family have been operating a bar in Waterford City for 30 years, said he’s been forced to lay off two people.
“Up to four years ago there would have been six pubs in our area, now there’s three,” Mr Fitzgerald said.
“The recession in pubs started four or five years ago. There’s been more changes in the last four years than in the last 20.”
Mr Fitzgerald said the clampdown on drink driving and the smoking ban, rolled out in March 2004, had hit the industry badly.
The VFI have come up with five recommendations to help boost the pub trade, including reducing the standard rate of VAT from 21.5 per cent to 15 per cent and the lower rate from 13.5 per cent to 10 per cent.
It also wants local authority charges and water rates to be cut and the current blood alcohol levels for drivers to be kept at 80mgs.
And VFI chiefs said an ombudsman should be appointed to ensure banks are giving credit to businesses.
“There is no credit available to small and medium businesses, and not alone is there no credit available the credit that is there is being slashed,” Mr Cribben said.
“At the same time the banks are saying we’re open for business and 80% of all applications are being met. We say that’s not true.
“It’s just simply not true and were asking for an ombudsperson to be appointed to see exactly what the banks are doing.”
PA