Irish Levies Sinking Pub Industry: VFI

by Robert Lee, Tax-News.com, London

01 September 2009

The Vintners’ Federation of Ireland (VFI) on August 25 urged the government to help stave off further job losses stemming from the global downturn.

The VFI called on the government to reduce tax and other costs for the industry, to prevent further crisis-related unemployment, and to help retain much-needed revenue.

Research, undertaken on behalf of the VFI, by Ask Chili, found that:

• 81% of those surveyed reported that their revenue was down for the summer period May-July 2009 compared with the same period last year;
• Of those who reported their revenue was down, 79% reported their revenue was down 10% or over on the period May-July 2009 compared with the same period last year. 40% said that revenue was down 20% or more;
• 50% of those surveyed indicated that they had made reductions in the number of staff they employ over the last twelve months;
• 60% of those who have made staff reductions, have let two or more people go, equating to a total loss of at least 4,800 jobs amongst VFI members alone in the last 12 months.

Commenting on the findings of the independent research, Padraig Cribben, CEO of the VFI announced that:

"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."

The Federation is calling on the government to introduce make the following moves in order to save the Irish pub trade and prevent further closures and job losses:

• Extend the recently announced initiatives and incentives to encourage employment in the manufacturing sector to the hospitality sector;
• Reduce the VAT rates from 21.5% to 15% and from 13.5% to 10%;
• Appoint an ombudsman to ensure financial institutions are operating fairly and transparently in offering credit facilities to SMEs;
• Reduce local authority commercial and water rates; and
• Ensure that the current blood alcohol levels permissible for drivers be kept at 80mgs and not reduced.

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