Pub landlords call time on price hikes

PUB landlords yesterday called time on hiking up drink prices for a year.

Two representative bodies for publicans across the Republic announced a 12-month freeze on increases on alcohol at the till with immediate effect.

The gloomy economic outlook, rising unemployment, and more people opting to drink at home has put pressure on the industry to get revellers back into bars.

The Licensed Vintners Association (LVA) and the Vintners Federation of Ireland (VFI) claimed more then 5,500 publicans nationwide have vowed to honour the initiative which is voluntary.

The LVA, which represents publicans in Dublin, and VFI, representing publicans in the rest of the country, said 2009 will be a difficult and challenging year for everyone and they recognise that people are going to be under real pressure to tighten their belts.

The organisations called on drinks suppliers and manufacturers to support the move by keeping its sales costs the same too.

The LVA and VFI said, during the last 10 years the volume of alcohol sold in pubs has dropped from 68% to 32%, while supermarket and off-licences sales rose.

Donal O’Keefe, of the LVA, said consumer confidence was shot to pieces.

“Lots of regulations have moved against the pub trade, in particular we’ve had the liberation of the off licence trade, the smoking ban, random breath testing and the abolition of the Groceries Orders facilitating low-cost selling so it’s a very challenging environment.

“As people’s disposable income tightens up it’s natural all retailers will struggle and that’s clearly impacting on pubs. This is pro-consumer, it’s for the betterment of the consumer and our legal advice is it does not breach competition law.”

The plight of the pub trade hit the headlines when the Thomas Read Group, which owns 22 bars and restaurants across Dublin city, admitted having debts of more than €26 million.

Mr O’Keefe said the firm going to the High Court to secure legal action to stave off creditors was a major development. “It shows the difficulties the pub trade is in and it proves what we’ve been saying for some while.”

VFI’s Padraig Cribben said the pub trade was dominated by small businesses with a small turnover. “95% are independently, or family-owned. It’s a lot of these pubs that are feeling pressure.”