Overheads close 600 rural pubs: VFI

Six hundred country pubs have closed in the past two years, the Vintners’ Federation of Ireland (VFI) said today.

Overheads were blamed as the main reason for the closures. The 600 affected pubs represent 10% of the VFI's membership.

"There are varying reasons for these closures – retirement, realising value of licence or property. However, for many small rural pubs they simply could not survive against spiralling overheads," said VFI president Seamus O’Donoghue.

The VFI said that according to a study undertaken by IBEC for the period 2004-2005, waste collection charges increased by 23.2%; local authority charges by 20.5% and water charges by 21%. The cumulative average inflation over the same period was 4.8%.

“The figures don’t stack up and it is becoming increasingly difficult to maintain a viable business in such a difficult economic environment,” said Mr O’Donoghue.

“In particular, the costs of water, waste and environmental services are totally unjustified, unreal and grossly inflated. Annual water rates have continued to soar and are now unsustainable."