Pub jobs ‘threatened by Vat hike’

Pub jobs ‘threatened by Vat hike’

By Pádraig Hoare

Vintners have joined hoteliers and tourism bodies in claiming jobs are at stake if the Government hikes the Vat rate on hospitality from 9% to 13.5% in the budget.

Any move to increase the rate “could do lasting damage to the growing pub food trade, impacting on pub jobs across the country”, according to the Licensed Vintners Federation (LVA) and the Vintners’ Federation of Ireland (VFI).

Chief executive of the LVA, Donall O’Keeffe said: “There has been sizeable investment made by publicans to improve their facilities, broaden their menus and employ additional staff.

“It could do lasting damage to our food service offering at a time when the sector is already under pressure due to Brexit. 

"During this period we need consistency and we need to maintain our current food prices.”

Chief executive of the VFI, Padraig Cribben said: “There are now approximately 58,000 people working in Ireland’s pub trade, with a significant portion of that number focusing on food service. 

"There have also been employment opportunities generated by the increased numbers coming to pubs, thanks to the strong value food offering.

“Increasing the Vat rate spoils that value, which will have a knock-on effect on the number of customers and the number of jobs available. 

"The solution is simple, maintain the current Vat rate and protect Irish pub jobs.”

The calls come despite the fact that hotel room prices have surpassed Celtic Tiger levels and that the exchequer is missing out on €500m yearly from the tax incentive.

According to Department of Finance figures, estimates show that restoring the 13.5% rate for all businesses favoured by the lower rate since 2011 would result in an additional €527m in revenues to the State.

Reducing the 13.5% Vat rate, to 9%, was originally envisaged as temporary to bolster industries ravaged by the recession.

It has cost the State €2.7bn since its introduction, according to the department assessment.

Opponents of retaining the 9% rate say that it has more than met its original target and that it should be removed, now that the hotel and tourism industries are thriving.

More on this topic

Business Minister travelling to Munster after more than 800 job losses announced in 24 hoursBusiness Minister travelling to Munster after more than 800 job losses announced in 24 hours

MEP calls for 'urgent intervention' as almost 70 jobs to be lost in MonaghanMEP calls for 'urgent intervention' as almost 70 jobs to be lost in Monaghan

Planning permission refusal puts 300 ESB and Bord na Mona jobs at risk Planning permission refusal puts 300 ESB and Bord na Mona jobs at risk

Bord na Móna workers to protest against job losses in Co LongfordBord na Móna workers to protest against job losses in Co Longford

More in this Section

Snapchat reveals rise in user numbers and revenue as losses shrinkSnapchat reveals rise in user numbers and revenue as losses shrink

Metro Bank chairman steps down but insists ‘the best is yet to come’Metro Bank chairman steps down but insists ‘the best is yet to come’

Malone’s  €5.7bn sale is blockedMalone’s €5.7bn sale is blocked

Reckitts, maker of Dettol, Harpic cuts its profits outlook againReckitts, maker of Dettol, Harpic cuts its profits outlook again


Lifestyle

Steak night just got zingy.How to make Antoni Porowski’s hanger steak with charred limes, fresh chillies and herbs

Seasonal affective disorder is a lot more complex than just mourning the end of summer and being a bit glum. Liz Connor finds out more.Could your winter blues be something more serious? What to do if you’re worried about SAD

Ideal for a quick mid-week meal, eaten in front of Netflix, of course.How to make Antoni Porowski’s cauliflower steaks with turmeric and crunchy almonds

Lacemakers in Limerick want to preserve their unique craft for future generations and hope to gain UNESCO heritage status, writes Ellie O’Byrne.Made in Munster: Lace-making a labour of love rather than laborious industry

More From The Irish Examiner