‘1,000 pubs forced to close since 2007’

More than a thousand pubs have closed in Ireland since 2007, with the prospect of additional excise increases likely to further damage the industry, the Joint Oireachtas Committee of Finance heard yesterday.

Drinks Industry Group of Ireland board member Padraig Cribben told the committee that excise increases are harming the tourism industry, putting jobs at risk, and are also punishing the Irish consumer.

“Excise increases in successive budgets have cost these businesses jobs, made our tourism offering less competitive, and punished the hard-pressed Irish consumer,” Mr Cribben said.

“I can tell you that since 2007, over 1,000 pubs throughout Ireland have been forced to close.

“And the pubs that are closing are not in Dublin city centre, nor are they in Cork city centre, they are in small businesses around Ireland.”

Mr Cribben said that increases in excise duty on alcohol were not effective in tackling the issue of over consumption.

He said these increases only served to drive a greater divide between the prices offered by supermarkets and those publicans can offer as the larger chains absorb the increases and transfer them to other products.

In addition to the Drinks Industry Group, Ibec, Chambers Ireland, and the Think-tank for Action on Social Change also presented their pre-budget submissions to the finance committee yesterday.

Tasc director Nat O’Connor recommended increasing the level of taxation in the forthcoming budget.

Mr O’Connor dismissed calls to cut the higher rate of income tax, saying that any cut to the 41% rate would only benefit higher earners.

“Our recommendation is that it’s not necessary to cut the current 41% income tax or 52% marginal rate because only one in six income earners actually pay it.

“We’re saying that we shouldn’t be seeing a tax reduction because it is only going to benefit higher earners,” said Dr O’Connor.

He also included those on the national industrial wage in the higher earners bracket.

“I would make the point that those on the national industrial wage are the higher earners, it’s not the case that the average is in the middle because not everybody has employment income and those that do; a couple won’t pay the higher income tax until they earn between €45,000 and €65,000 between them if they’re combining their credits” he said.

Meanwhile, Ibec claimed that even with no budget adjustments, Ireland would reach the deficit target of 3% of GDP.

The mooted adjustment has been in the region of €2bn.

Despite this claim, the group called for spending cuts of €385m but, under questioning, could not outline any specifics of where these cuts would be made.