Latest News

4,800 Pub Industry Jobs Lost in last 12 Months

25-August-2009

This independent research was conducted by leading market researchers Ask Chili.

As a result of the findings and the precarious state the pub trade is now in, the VFI has made five clear recommendations to protect against further closures and job losses which are listed below.

Key Findings:

1) Employment: 52% of those surveyed employ 4 or more staff in their premises. 33% employ five or more staff.

2) Revenue: 81% of those surveyed reported that their revenue was down for the summer period May-July 2009 compared with the same period last year

3) Revenue: Of those who reported their revenue was down, 79% reported their revenue was down 10% or over on the period May-July 2009 compared with the same period last year. 40% say revenue was down 20% or more

4) Staff Reductions: 50% of those surveyed indicated that they have made reductions in the number of staff they employ over the last 12 months

5) Staff Reductions: 60% of those who have made staff reductions, have let two or more people go. - this equates to a total loss of at least 4,800 jobs amongst VFI members in the last 12 months

6) Staff Reductions: 54% of those surveyed anticipate that they will have to make reductions in employees in the next 12 months

7) Cutbacks: 43% of those surveyed have had to reduce their opening hours to reflect a slowdown in business

8) Cost Savings: 88% of those surveyed have taken other cost saving measures to reduce their overheads over the last 12 months
a. 67% have introduced energy/electricity cost control measures
b. 30% have reduced their water usage

9) Future Drink Driving Legislation: 97% of those surveyed believe that the proposed reduction in the blood alcohol level permissible for drivers from 80mg to 50mg would have a detrimental effect on business and will accelerate the rate of job losses

10) Commercial Rates: 90% of those surveyed believe that the increase in commercial and water rates by local authorities has had a detrimental affect on overheads

11) Future Outlook: 99% believe that more pubs are likely to close in the next 12 months in rural areas and are concerned about the future of pubs

Commenting on the findings of the independent research, Val Hanley, President of the VFI said; "We knew the pub industry was under pressure and the research has verified this. In fact, it is worse than we thought as over 4,800 jobs have gone in the last twelve months which has a huge financial cost to the State as well as a human cost. Rural pubs seem to be suffering the most and those pubs which relied on tourism trade are also well down.

"Our members have taken serious measures to make the necessary cutbacks by reducing opening hours, reducing energy output and water usage but this still has not prevented job losses. The industry is facing another very difficult few months which could decimate the sector and lead to more closures and job losses."

Padraig Cribben, CEO of the VFI said; "We are now calling on the government to help us save the pub trade in Ireland and to prevent more closures and job losses.

"Incentivising those in the hospitality sector to encourage employment would be one such move as would reducing the VAT rates and ensuring that SMEs have access to credit facilities.

"Water and commercial rates are also way too high in this country and they are crippling publicans. We would also strongly urge the Minister for Transport not to reduce the blood alcohol levels for drivers as this will have no impact on road fatalities and will directly lead to pub closures and job losses."

 VFI Recommendations to save the Irish Pub:

VFI is calling on the government to introduce the following recommendations to save the Irish pub trade and prevent further closures and job losses.

1. Extend the recently announced initiatives and incentives to encourage employment in the manufacturing sector to the hospitality sector

2. Reduce the VAT rates from 21.5% to 15% and from 13.5% to 10%

3. Appoint an ombudsman to ensure financial institutions are operating fairly and transparently in offering credit facilities to SMEs

4. Reduce local authority commercial and water rates

5. To ensure that the current blood alcohol levels permissible for drivers be kept at 80mgs and not reduced, as this proposed move will have no effect on road fatalities and is likely to lead to further pub closures and job losses in rural areas