Pubs cut 7,000 jobs last year to survive

PUBLICANS have cut staff numbers and working hours in a bid to stay afloat, according to the Vintners Federation of Ireland (VFI), who warned of further pub closures this year.

With the Drinks Industry Group of Ireland estimating that 7,000 jobs were lost in 2010 in the pub sector, VFI will hold its annual general meeting today in Cavan.

Motions to be debated include lobbying the Department of Justice to allow later opening times at the weekend and giving publicans a choice on whether or not to open on Good Friday. The AGM will also include the launch of Options 4 Recovery, a VFI-generated blueprint for saving jobs and pubs.

Some in the industry have estimated pub closures at a rate of one a day, and research commissioned by the VFI indicates that its members have taken a number of steps to survive.

The survey, from a sample of 117 members, showed:

* 65% have reduced their staffing levels in the last 12 months.

* 73% have reduced working hours for existing staff.

* 62% have reduced the price of alcohol in the last 12 months, while three out of five members serving food lowered food prices.

* More than 70% are putting on extra events and activities to attract customers.

* 73% of members have introduced cost saving measures over the past 12 months that include reducing utility bills, installing energy saving measures and reducing trading hours.

The AGM, to be held at the Slieve Russell Hotel, will hear the views of some of its 4,500-strong membership and nine motions.

The VFI survey also highlights the main issues publicans want addressed at government level: a ban on below-cost selling, called for by 85% of respondents, and a reduction in local rates, which was demanded by 79% of members surveyed.

There are also calls for the strict control of the marketing and advertising of alcohol in mixed trading and extended opening hours on St Stephen’s Day, as well as a reduction in the VAT rate from 21% to 13.5%.

Speaking ahead of the AGM, VFI president Gerry Mellett said the results “confirm our worst fears”.

Mr Mellett, who runs a pub in Carlow, said: “Last year, 41% of our members had reduced staffing levels. This year that is up to 71%. Last year, 66% had made changes to the working hours of existing staff — this year that is also up to 73%. Things have got worse but they have also got worse for a lot of other people.

“Our members are working very hard to stay afloat and they are looking at every angle. A huge majority are improving our offering by providing events and entertainment, another large majority have reduced their prices in drink and in food. Our members are also cutting costs wherever they can. From energy-saving light bulbs, to sensors on lights and water, to reducing local sponsorships, they are looking at everything.”