More than 60 per cent of non-Dublin pubs still closed

Above: Mullingar woman Patricia Callan, Director, Drinks Ireland, pictured with Ronan Lynch, Chairman of the LVA and owner of The Swan Bar (left) and Padraig McGann, President VFI and owner of McGann’s Bar, Monivea, Co. Galway (right) at the launch of the ‘Protect our Pubs’ campaign.

More than 60% of pubs outside of Dublin remain closed, the Licensed Vintners Association (LVA) has revealed.

And, the Association is warning, there is a danger that some of them may not reopen at all.

A new campaign "Protect our Pubs" has been launched today to highlight the important social and cultural role that the drinks and hospitality industry.

Behind it are the LVA, the Vintners Federation of Ireland (VFI), and the Ibec representative group Drinks Ireland, of which the director is Mullingar woman Patricia Callan.

They are calling for a temporary reduction in the hospitality VAT rate; and extending it to apply to alcohol sales in the on-trade (pubs and bars), until 31 December 2020 and as part of the July stimulus programme promised.

Approximately two in three Dublin pubs have reopened this week. Outside of Dublin, more than 60% of pubs remain closed. For the pubs that have, or intend to reopen, Government guidelines will mean a significant change in how they operate and how consumers experience the Irish pub.

According to Protect Our Pubs, the majority of Ireland’s pubs are small, family-owned businesses. "In many communities, they act as social hubs, community centres and the only place to meet and socialise in rural communities. However, without significant financial supports to trade under these exceptional circumstances in the short-term, some of these businesses are at risk of permanent closure."

Patricia said: "Our new Taoiseach has vowed to reboot the economy with ‘urgency and ambition’ – the drinks and hospitality industry is one which requires urgent support and ambitious policy. A reduction and extension of the hospitality VAT rate to on-trade alcohol sales would tangibly deliver for the industry. Equally, it is in line the Minister for Finance’s ambition for measures in the July stimulus programme to have an immediate impact and effect in 2020."

The campaign is arguing that reduced capacity - with some operating at 50% capacity or less with time-limits on customer visits – and zero tourism will leave many pubs vulnerable, struggling to meet costs and trading at a loss.

"The outlook for pubs and hospitality businesses for 2020 and 2021 is harrowing. Over 70 percent of Ireland’s tourism revenue comes from overseas visitors – this is currently lost as the country is effectively closed to tourists."

The campaign says a reduction in the VAT rate on alcohol would support the reopening of pubs and the call comes following comments from Failte Ireland chief executive who said the pandemic’s impact on tourism has been "catastrophic" and "dwarfs all previous crises", ahead of the Covid Committee today.

Launching the campaign today, Vintners Federation of Ireland (VFI) Chief Executive, Padraig Cribben said: "The Covid-19 crisis has had a devastating impact on Ireland’s drinks and hospitality industry. The financial burden on pubs as they adapt to the new measures of social distancing, reduced capacity, expenditure on perspex screens and PPE, is significant. For many, it will be too much, and they won’t be in a position to re-open on 20 July.

"Ireland’s pubs are part of the vibrant social and cultural fabric of our cities, towns and villages. They are where many of us convene to see friends, enjoy music or celebrate a significant milestone – something we have missed over the past three and a half months. ‘Protect our Pubs’ is a reminder to us all of the value of our local pub and a direct call to the new Government to support them to get back on their feet."