The Licensed Vintners Association (LVA) has said Budget 27 “serves up nothing” for pubs in Dublin or other urban areas, but a higher cost of doing business.
Highlighting the increase in the minimum wage at a rate “significantly above inflation”, the LVA believes this will place “meaningful” cost pressure on pubs all around the country in the year ahead.
The LVA also said it was very disappointed to see no movement from Government on reducing excise duty on alcohol which remains the second highest in Europe and no efforts to address the high cost of Special Exemption Orders (SEOs) for late bars and nightclubs who wish to open late.
Research recently published by the LVA showed that the number of extended openings fell by 950 nights across the country last year and there were 23% more late openings in 2018.
“We are very disappointed with this year’s Budget,” said Donall O’Keeffe, CEO of the LVA.
“Not only has the Government not provided any measures that will help pubs in urban areas, it has actually taken steps that will make it even more costly to do business.
“Increasing the minimum wage at a rate that is significantly above inflation will place meaningful cost pressure on pubs all around the country in the year ahead.
“This will be keenly felt and it will have ongoing ramifications for hospitality the length and breadth of the country.
“We were also very disappointed to see no movement on reducing alcohol excise, which remains the second highest rate in Europe.
“This is in a context when alcohol consumption in Ireland has fallen to the European average.
“There was also nothing done to help maintain late night openings.
“Our research has shown that the number of late night openings declined by 950 last year and there were 23% more late night openings in 2018.
“Part of the reason for that is the high cost of opening late.
“A pub or nightclub that wants to open for 2 additional hours, 3 nights per week faces an extra annual tax of about €32,000 plus legal fees.
“Given that this whole process was meant to be addressed by the missing in action Sale of Alcohol legislation, it seems remiss of the Government to continue to collect this tax while late night is struggling.
“Overall, this Budget will make it harder for pubs to operate next year and that ultimately is something that will be felt at pubs counters all around the country,” Mr. O’Keeffe concluded.