Changes to legal limit ‘will cost more jobs’

PUBLICANS have warned the Government that any tampering with drink-driving limits would accelerate further job losses in the industry.

The Vintners’ Federation of Ireland also claimed the controversial proposal, which is contained in the Government’s Road Safety Strategy, would do nothing to save any more lives on Irish roads.

In a stark warning issued yesterday, the VFI indicated that almost 10,000 bar jobs could be lost during the course of 2009 unless immediate steps are taken to lower the cost of running pubs.

It followed a meeting of around 70 members of the VFI’s national executive council in Rathfarnham, Dublin, yesterday to discuss the crisis facing the pub trade.

VFI president Val Hanley said proposals to lower the legal drink-driving limit was a smokescreen being used by the Government over its failure to introduce a nationwide system of speed cameras.

“The proposed reduction on blood-alcohol levels for drivers will have no impact on road fatalities and will directly lead to pub closures and job losses,” said Mr Hanley.

New research commissioned by the VFI shows that the vast majority of publicans have suffered a significant downturn in business over the past year.

The survey of 140 publicans based outside Dublin revealed that 81% were having a worse year than in 2008 with most reporting revenue down in excess of 10%.

Half of all publicans have made some staff redundant due to falling trade with the VFI estimating that 4,800 jobs have been lost in the industry over the past 12 months.

The study showed 54% of bar owners also predicted that they will have to make further reductions in staffing levels over the next year.

Not surprisingly, 97% of those surveyed claimed any reduction in the drink-driving limit would have a detrimental effect on their business.

Mr Hanley said the research findings were even worse than feared by his members. “Rural pubs seem to be suffering the most and those pubs which relied on tourism trade are also well down,” said Mr Hanley

The VFI said many publicans had already made efforts to reduce costs in the form of reduced opening hours and lower energy and water usage, although such measures had still failed to prevent job losses.

Mr Hanley said every publican was under pressure. In a hard-hitting observation, the VFI president said: “The fabric of rural Ireland is closing down. There will be no social outlet [for people] unless we take something in hand at this point.”

He described pubs as “the last bastion for a lot of people living in rural Ireland to come out and meet each other”.

Publicans also questioned claims by banks and other lending institutes that they were open for business. “There is no credit available at the moment for small-medium businesses,” said VFI chief executive officer Padraig Cribben.

He also criticised high VAT rates on alcohol in Ireland compared with Britain which had recently lowered VAT rates to boost consumer spending.

Mr Cribben said taxes on alcohol in Ireland were the highest in Europe by some distance.

The VFI also expressed concern about the cost of providing Sky Sports and other subscription channels for customers. It is estimated that pay-TV costs can average about €1,200 per month with some large pubs having to pay up to €3,000 in monthly fees.

But the organisation defended criticism of the high cost of drinks, both alcoholic and non-alcoholic, in pubs. The VFI pointed out that the Competition Authority had recently ruled that a price freeze agreed by the VFI and the Licensed Vintners’ Association was contrary to competition legislation.