Pub owners ‘drowning under sea of regulation’
Landlords are counting on a boom during Euro 2012 this summer to keep their heads above water.
The Vintners’ Federation of Ireland (VFI) said research carried out among its members found that the introduction of minimum pricing for alcohol was the most important factor for the survival of the pub trade.
Speaking at the organisation’s annual conference in Kilkenny, incoming president Gerry Rafter said: “Publicans I represent from Dungarvan to Donegal have clearly expressed to me the urgency of reducing local authority rates, reducing red tape, and introducing a minimum price for alcohol.”
He said consumer confidence was at “rock bottom” and urged the Government to take measures to stimulate spending and keep small and medium enterprises going.
Mr Rafter said research carried out among 4,500 publicans in the VFI, which represents the trade outside Dublin, found that nearly two thirds had reduced staffing levels in the past year and that a similar percentage had reduced working hours for existing staff.
“The evidence clearly shows that publicans are struggling and the regulatory environment is not conducive to encouraging small and medium-size enterprises to flourish.”
Members were looking at “event-driven activity” to attract people to the pub, said Mr Rafter. A survey of 351 members found that 62% felt Euro 2012 would have the most positive impact on the trade.
VFI estimates the on-trade (pub sector) now accounts for 45% of the total trade, compared to 70% six years ago, with supermarkets eating up the lion’s share.
Mr Rafter said industry estimates suggest 5,000 jobs have been lost in the pub trade in the last three years. He said Revenue figures showed that the number of pub licences had fallen from 8,617 in 2005 to 7,509 in 2011 (down 13%). “We estimate there is one pub closing every day,” he said.
Publicans said the introduction of minimum pricing was the single most important factor in helping the pub trade survive.
“Roisín Shortall [junior minister at the Department of Heath] has been working on minimum pricing through the health lobby for almost a year,” said Mr Rafter. “We would like to see action taking place.”
He said Scotland had this week set their minimum price at 50p (62c) a unit. “We would be quite happy if that came into play here,” said Mr Rafter. “Ideally, we would like to see 70c per unit, which would make a 500ml can €1.40. But we don’t know what level yet will be set here.”
Mr Rafter said a second key issue for pubs was the enactment on existing legislation regarding the physical separation of alcohol from other products in super-markets and grocery stores.
The Irish Examiner the week reported that the Government was considering rowing back on plans to enact this legislation in favour of a softer option.
“Separation is a huge issue for us,” said Mr Rafter. “What kind of message are we sending out? You have a mother with kids walking down an aisle in a supermarket putting in yoghurt and cornflakes and then putting in bottles of wine or a slab of beer. We need a licence to sell it. Alcohol is a special product.”
A survey of 351 publicans by the Vintners Federation of Ireland found:
* 63% cut staff in the past 12 months
* Only 10% increased staff
* 62% reduced the working hours of staff
* 58% were putting on extra events and activities to attract customers
* 86% were frustrated with the level of regulation of the industry
* 58% said consumer confidence is low and getting lower with another 16% saying it has hit rock bottom
* 76% said local authority rates was the issue most exercising them
* 35% said the introduction of minimum pricing was the most important factor in aiding a recovery for pubs, with 21% mentioning value for money and 11% service
* 62% feel Euro 2012 will have the most positive impact on trade
* Of members (all outside Dublin), 39% are in Munster, 32% Leinster, 20% Connaught and 9% Ulster.
* 45% of pubs are in rural areas, 41% in towns, 9% in cities and 5% in city suburbs
* 63% of pubs employ five or fewer, 18% employ six to 10 people, 6% employ 11-15, and 13% employ 16 or more.
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