Publicans claim lack of action will cause 5,000 job losses

PUBLICANS have vowed to step up pressure on the Government to introduce a range of measures to prevent the loss of 5,000 jobs at risk in the sector.

The Vintners’ Federation of Ireland (VFI) said 4,800 jobs had already been lost in the industry over the past year.

The industry representative group warned that the social fabric of rural Ireland was under threat from high taxes and plans to lower the drink-driving limit.

The federation, which represents 4,500 publicans outside the Dublin region, claimed the industry was in turmoil with the closure of 1,700 pubs in the past five years – with 250 alone in the last 12 months.

VFI president Val Hanley said it was now time for the Government to take action to protect both jobs and the social life of people living in rural Ireland.

Publicans have called on the Fianna Fáil-Green Party coalition to lower existing VAT rates and dramatically reduce commercial and water rates charged by local authorities.

They have also warned that proposals to lower the drink-driving limit will force many more pub owners to close their doors.

Transport Minister Noel Dempsey has insisted the measure, which was due to be implemented by June 2009 under the Road Safety Strategy, is still official Government policy.

The Irish Examiner understands that publicans have already begun a campaign to lobby rural TDs, particularly Fianna Fáil backbenchers, to oppose any change to the existing drink-driving limit.

“The fabric of rural Ireland is closing down,” said Mr Hanley.

“There will be no social outlet [for people] unless we take something in hand at this point.”

The VFI also called on the Government to extend recent initiatives to support employment in manufacturing to the hospitality industry and to appoint an ombudsman to ensure financial institutions were offering credit facilities to small businesses.

Research commissioned by the group reveals that 81% of publicans reported a downturn in turnover this summer compared to the previous year.

Four out of 10 VFI members claim their revenue is down by over 20% so far in 2009.

Over half of publicans said they had made staff redundant in the past 12 months, while 43% had reduced their opening hours to cut costs.

Mr Cribben defended the price of drinks in pubs, claiming publicans were restricted by competition legislation from introducing industry-wide price cuts or freezes.

He also pointed out that only one drinks supplier, Bulmers, had lowered the cost to the trade in the past year.