Limerick bar’s trade is going South as recession hits

DAVID HICKEY, the owner of popular South’s pub in the heart of Limerick city, will celebrate 50 years in the licensed trade this summer.

However, the Clare-born publican claims 2009 will also stand out in his memory as the worst year for business – even grimmer than the recession of the 1980s.

Although a busy urban pub located near Limerick’s main thoroughfare, O’Connell Street, South’s has suffered like every other business in the economic downturn.

“Unlike the last recession, people now have borrowings, back then people didn’t know where Portugal or Spain were. Now all my customers have plastic cards and credit union loans. Money is at a premium” Hickey says.

“They’ve also been spending their money following Munster rugby,” he laughs.

Hickey acknowledges that cultural changes have seen reductions in the amount of alcohol consumed in pubs in favour of domestic settings. However, he insists that high taxes, particularly VAT rates, are crippling the sector.

His greatest fear, like many other publicans, is the potential impact of proposals to reduce the drink-driving limit.

“It would be the biggest nail to hit the trade,” says Hickey.

“That will have a huge detrimental impact on my business. It’s the last thing we want. It will affect everyone. There’ll be many customers I won’t see again.”

Former president of the Vintners’ Federation, Hickey claims the important tea-time trade for South’s, with customers stopping off to enjoy an after-work drink, is already disappearing because of road safety legislation introduced in the past few years.

Regarding a reduction in the drink driving he says: “Nobody wants to see people getting into a car to drive with too much drink on them but the bottom line is people should not be afraid to drive a short distance to their local pub for two pints and drive home again without the fear of losing their licence.

“In the current climate, people can’t afford to be going to the expense of taxis or buses to go out for a few pints.”

He estimates turnover in South’s is down 10% over the past 12 months while staff numbers have been reduced from 18 to 14 with remaining workers also seeing a reduction in their hours.