Fury at wine licence hike

RESTAURANT owners and retailers say a significant rise in licence fees for selling wine – due to kick in at the end of next month – will cripple recession-hit businesses.

Licences for selling wine are being increased from €300 to €500. When other rates and local levies are added on, owners say some premises will struggle to keep their doors open.

The Restaurant Association of Ireland (RAI) yesterday called on Finance Minister Brian Lenihan to reverse the hike, which was decided in the last budget.

“Any increase in charges for businesses at the moment is detrimental to the industry. We’ve seen stealth costs over the years but restaurants are now feeling the pain across the country. Our members are extremely angry with this licence increase,” said RAI chief executive, Adrian Cummins.

The Department of Finance last night pointed out that wine licence fees had remained untouched since 1992 until last year, when they rose from €250 to €300, and then to €500 in the second budget.

Under the changes, off-licence owners and some premises will not only pay for wine licences but also €500 each for beer and spirit licences. The department says the move is in line with the increased sales of take-home alcohol.

Restaurateurs, though, point to the fact they already pay local authority rates, water charges, food oil and fat levies and a “sunshine tax” where payments are made for putting chairs on a footpath. Owners are only making a 2% profit when also faced with significant taxes, which are some of the highest in Europe, says the association.