Thousands of bar workers facing unemployment, warn vintners
Almost 10,000 bar jobs will be lost by next year unless action is taken to save the traditional country pub, industry chiefs warned today.
The Vintners Federation of Ireland said 1,700 watering holes have shut their doors in the last five years with just less than 5,000 jobs axed in the last 12 months alone.
The body demanded the Government slash VAT and local authority charges to help boost the beleaguered sector.
It also claimed banks were not giving credit to small businesses and called for a special watchdog to monitor their lending habits.
Val Hanley, VFI President, 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% said revenue was down during the summer compared to the same period last year, with the vast majority saying they had lost 10%.
*Half said they laid off staff during the last year, with 60% saying they let two or more go.
* Some 54% 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% have tried to cut costs, with 67% reducing electricity use and 30% cutting back on the amount of water they are 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.
However, 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 is 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% to 15% and the lower rate from 13.5% to 10%.
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.”
