Pub closures costing thousands of jobs, warn Vintners
Thousands of jobs have been lost with the closure of 1,500 pubs since the turn of the decade, it emerged today.
Two organisations representing publicans called time on rising taxes on alcohol in the upcoming Budget, warning politicians that it is no longer a reliable source of income.
The Licensed Vintners Association (LVA) and Vintners Federation of Ireland (VFI) said consumption of alcohol is down by 7% so far this year, while more people are also opting to drink at home.
They claim the country is already the most heavily taxed alcohol market in Europe, with almost €1 in every three going to the state coffers.
VFI’s Padraig Cribbin said taxation and regulation policies over the past decade has put pubs at a disadvantage.
“The on-trade sector accounts for tens of thousands of jobs, supports manufacturing jobs in brewers and distillers and plays a key role in our tourism industry and in sustaining communities in rural Ireland,” he said.
“However the strength of the sector is now under more pressure than ever before and jobs are being lost and community resources are closing.
“The old reliables are no longer reliable.
“This industry is facing major challenges and it will struggle in particular if the current high level of alcohol tax is increased again in the forthcoming budget.”
The LVA, which represents Dublin publicans, and VFI, for owners outside the capital, said accounts held by the major drinks’ manufacturers showed the number of pubs they supply dropped from 11,000 in 2001 to 9,500 last year.
Closures are hitting rural parts more than the capital.
The organisations also revealed 30% of the price of a pint and 33% of the price of a measure of whiskey are government taxes, on top of a 21% VAT rate which is higher than in Austria, France, Greece, Italy, Luxembourg, the Netherlands, Spain and the UK.
Donal O’Keeffe, of the LVA, said increases in excise will put even further pressure on the pub trade.
“Alcohol sales in the pub trade are under pressure and further raising taxes will accelerate that decline,” he said.
“Volume is what matters to government and it is not guaranteed that raising tax will raise volume. I think volume will be lost in the trade and less drink will be sold.”
Mr O’Keeffe said although some publicans sold their premises for redevelopment during the building boom, bar owners – particularly those in rural areas – have been hit with a number of changes in recent years.
“We think the whole impact of regulation over the last five to seven years has been damaging to the pub,” he continued.
“We had a complete liberalisation of the off licence trade, the smoking ban, random breath testing, and the groceries order being abolished allowing the multiple retailers to sell alcohol below cost.
“All of those changes have been damaging to the pub.
“A number of high profile pubs closed for redevelopment where the site value was a big factor of the sale, but it wouldn’t be the biggest factor. Clearly 1,500 pubs were not redeveloped, only a handful did.”
