'If we lose rural pubs, we lose a part of who we are'
The owner of The Castle Inn in Cork city, Michael O'Donovan. Picture Conor McCabe Photography.
As someone who has run the family pub in Cork city centre for 25 years, I understand the deep cultural and social value that pubs bring to Irish life. Pubs are more than just places to have a drink – they are the heart of our communities, where stories are told, friendships are forged and traditions are passed down. But our unique pub culture is under threat and urgent action is needed to preserve it.
The numbers tell a stark story. Between 2005 and 2023, the number of public houses outside Dublin fell by 2,032 – a 25.9% decline, from 7,831 to 5,799. In Limerick alone, the drop was 35.6%. Seven counties experienced declines of over 30%. These closures are not just statistics as they represent the loss of community hubs, the loss of local employment and the erosion of a way of life that has been part of Ireland for generations.
The causes of this decline are well known. The cost of doing business has soared, driven by high inflation, the impact of the Ukraine war, the lingering effects of covid, and declining tourism numbers. But one of the most significant factors is government policy, which has imposed relentless cost pressures on small businesses.
A decision to pause the introduction of the living wage is welcome but the minimum wage has still increased by 36% over the past four budgets. This is unsustainable for small rural pubs, which cannot absorb such rapid rises without severe consequences. Rising PRSI costs also hit hard.
The excise tax on alcohol is another crushing burden. A pint of stout in Ireland is taxed including Vat at €1.62, representing 28.1% of the price. A pint of lager is taxed at 27.6%, while a standard whiskey is taxed at 29.7%. Ireland has the joint second-highest beer excise in the EU27 and UK, just behind Finland. This excessive taxation is making it impossible for small pubs to survive.
In 2023, the Exchequer collected €1.26bn in alcohol excise, of which around €567m came directly from the public house and bar sector. Given this enormous contribution, it is only fair that some of this revenue is used to ensure the survival of the businesses that generate it.
The VFI is calling for Government to reduce the excise burden on rural pubs to give them a fighting chance of survival. This is not a handout but a necessary support for a sector under immense pressure.
Our case goes beyond economics. Pubs are the social fabric of rural Ireland. They are where local clubs meet, where fundraisers are held, where neighbours look out for each other. For many older people, a visit to the local pub is a lifeline, a chance to see familiar faces, catch up on local news and feel part of a community.
Every pub that closes is another light going out in its community.
Pubs also support local economies, providing employment for thousands of people. Many rural pubs source produce locally, from butchers to breweries, supporting other small businesses. The impact of a pub closure ripples through the local economy, affecting suppliers, tradespeople and even local musicians who rely on pubs for gigs.
At the VFI’s AGM in Limerick this week, we will discuss the path forward. Our members are resilient, but they cannot continue without meaningful support. We are urging the Government to include supports in the upcoming Budget through practical, fair measures that would directly support pubs, such as a reduction in Europe’s second highest excise rate.
The Government has previously recognised the importance of hospitality through the promised Vat reduction, which only benefits food-serving pubs. Rural, traditional pubs are being left behind.
There is still time to turn the tide. An excise reduction would not only support struggling publicans but would also be an investment in the communities that depend on them.
The cost of inaction is clear. More closures, more empty buildings on main streets, more lost jobs and the slow death of rural Ireland’s social fabric.
If we lose our rural pubs, we lose a part of who we are as a nation. The Government must act now – not just for the pub trade, but for the communities we serve.
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