Publicans call for rates system reform

PUBLICANS have called on the Government to introduce a series of urgent measures, including a reform of the rates system and a ban on below-cost sales of alcohol, to help hundreds of struggling pubs around the country to survive the recession.

Delegates at the annual general conference of the Vintners’ Federation of Ireland (VFI) yesterday also voted overwhelmingly in favour of a motion seeking Government approval for longer opening hours at weekends.

The organisation claimed pub sales had already fallen by 7.4% in the first three months of 2011 after a drop in sales volume of 10.5% last year.

The VFI — which represents 4,200 publicans outside Dublin — said the Government needed to reduce the cost of doing business to help small traders.

In particular, the federation has called for an immediate amendment to rates legislation to allow for any business premises to be re-rated on request as well as legislation to allow for a ban on below-cost selling of alcohol.

The organisation yesterday launched a blueprint document, “Options 4 Recovery,” which the VFI claims, if implemented, will help to safeguard the remaining 50,000 jobs in the industry after the loss of 7,000 staff last year.

“A new system needs to be put in place to finance an efficient and re-structured local authority system that broadens the current base and takes into account ability to pay,” said VFI chief executive Padraig Cribben.

Addressing over 300 delegates at the conference, Mr Cribben said local authorities needed to be totally restructured.

“There are too many of them to administer a population of just four million people,” said Mr Cribben.

He pointed out that a recent Government report had highlighted that €550m in savings could be generated through reform of the sector.

Mr Cribben said the figure of €550m represented one-third of all rates collected from businesses last year which indicated the potential for rates to be lowered.

Publicans claim a ban on below-cost selling of alcohol is necessary to counteract the growing shift of alcohol sales to supermarkets and off-licences.

The VFI pointed out that the Scottish government is due to introduce a minimum price for alcohol to counteract the same problem.

VFI president Gerry Mellett described the practice of below-cost selling of alcohol by supermarkets as “irresponsible”.

However, he also criticised the small number of publicans who were overcharging for drinks for the impact their behaviour was having on the wider industry.

Other recommendations proposed by the VFI include the abolition of the Joint Labour Committee system, a more balanced approach to smoking rooms and a reduction on the VAT rate of alcohol sold in licensed premises.