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Dublin: 12 °C Wednesday 19 June, 2013

Publicans make demands to Government after protest

The pub industry says it is haemorrhaging jobs and has called for urgent action after it suffered its worst October in over 20 years.

John McMahon from Limerick joined hundreds of publicans.
John McMahon from Limerick joined hundreds of publicans.
Image: Photocall Ireland

THE VINTNERS’ FEDERATION of Ireland predicts that about 5,000 jobs will be lost in the pub industry next year.

Gathering outside the Dáil today, members of the representative group called on the Government to act immediately to protect the positions.

The VFI laid down its demands to Government after today’s protest outside Leinster House.

Publicans want to see the upcoming Valuation Bill have a clause that allows an appeal on rates to be made in certain economic circumstances.

CEO Padraig Cribben said that the rates burden should be reduced by 15 per cent per year over the next four years.

They have also called on the Government to exempt their members from VAT and VRT on all new seven and nine seat vehicles to recognise that rural publicans are acting as “de facto taxi drivers in rural Ireland”. This marginal saving would go some way in supporting publicans, said Cribben.

The organisation says an increase in the VAT exemption threshold from a turnover figure of €75,000 to €100,000 and a reduction in excise would be welcomed.

“The budget needs to recognize that we currently have the third highest level of excise in Europe and anything other than a reasonable reduction will have a negative impact on jobs,” it said in a statement.

Speaking at today’s gathering, president of the VFI Gerry Mellett said,

The pub industry is on its knees and more than one pub is closing every day. The industry is haemorrhaging jobs and last year over 5,000 people went out of work from our industry. That is the equivalent of five Avivas and next year is looking even bleaker. We have experienced our worst October in over two decades after years of decline and we need urgent action to save jobs.”

VFI claim that 30,000 jobs have been lost in the pub trade over the past five years, costing the Exchequer an estimated €630 million.

Earlier this year, the federation called on the Government to address the issue of cheap alcohol in supermarkets by introducing a minimum price on drink.

Read more: Irish publicans call for end to cut-price booze>

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Comments (34 Comments)

  • The VFI should try telling it’s members to cut their prices and they might get people back in their pubs again! People vote with their feet when they know they are being ripped off and if you want to get ripped off in Ireland then a pub is a good bet! The overpricing of both alcoholic and soft drinks in Irish pubs, clubs, hotels and restaurants has gotten way out of sync with peoples disposable income and until the publicans, brewers and govt. wake up to that fact then more of them are going to go out of business. The Irish govt., needs to pay heed too with the 3rd highest excise in Europe they are only adding to the absurd prices and driving people away from the pubs. They need to cut the excise it’s extortionate! Rural pubs have another problem in that tougher drink drive laws mean people simply are not prepared to drive to outlying pubs anymore especially if they find that they are not getting good value for money.

    Reply
    • Ed – Pubs are like all small businesses – it amazes me how people seem to think that a pub is different. Do you know anything about the cost of running a business – you have staff costs, water rates, bins, esb, gas, mortgage and that is the absolute minimum. People need to stop presuming that pubs are racking in the money. If this was the case why is there a pub closing everyday in this country.

      If you check the prices of drink in this country now compared to 10 years ago there actually isn’t that much of a difference but check the increase on wages, esb, gas and the outrageous bin and water rates being charged by councils.

      Check your details and use your brain before making ridiculous statements like the above.

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    • I can buy a large (568 ml) bottle of Bulmers (Magners) cider in the bar around the corner from my apartment on Manhattans upper east side CHEAPER than I can in the bar in my home village in North Tipperary.
      GREED is a massive factor in why vinteners are losing out.

      Reply
    • Sean C 17/11/11 #

      Allison in business the customer is the most important element, they decide if a business thrives or dives. If customers walk there’s a problem with the product or service. Irish people are traveling more and further afield than at any other time. They have been exposed to different ways alcohol is enjoyed around the world, the cafe culture of Europe, the BBQ culture of Australia, the in home social culture of Canada and the Bia Hoi culture of Vietnam to mention a few. Then they arrive home to there local which hasn’t had a lick of paint for decades. So taking a six pack to a mates place to watch the game becomes the better option.

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    • SMcB 17/11/11 #

      There’s a well known pub in Dublin 6 which continues to charge a HIGHER price for alcohol after 12am Thursday to Sunday. It’s easy knowing that same pub is in quite an affluent area – whilst I acknowledge not all pubs do this, it’s hard to have any real sympathy for publicans based on the carry on of a few.

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    • Allison you stay in denial, most people have no choice but to pay ESB, Mortgage, bins etc but they have a choice when it comes to buying drinks, ie the supermarkets which in case you hadn’t noticed many are choosing over the pubs, now I wonder why that is! Of course pubs are business and they are like any other business in the current climate but the fact remains that pub prices are too high and some pubs are going to fail because they have become insolvent and that’s because people vote with their feet and don’t use them any more and much of that is down to price. Open your eyes and stop making excuses and take your own advice and engage your brain before trumpeting out the same old bullshit that we hear from everyone from pharmacists to publicans when they are trying to get special treatment instead of dropping their prices!

      Reply
  • ok so the government reduces duty by a few percent giving publicans a much needed boost but a week later publicans are so grateful they increase prices by double the amount for Christmas. this has happened before and would happen again!

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  • I agree they ripped us off for years and can now go to hell, some place I have been in charged 1.50 for pint of water and dash of orange, long live supermarket We do party night ong my friends and great time and don’t feel ripped off.

    Reply
  • Lower prices,increase quality and stock Erdinger.

    Reply
  • Its a dying trade i think… Pubs were popping up everywhere during the boom party years. I work for a leading UK water management company and i proposed a simple device to the VFI to knock thousands off their annual water bills by electronically controlling the mens auto flush urinals in every pub. The device cost €200 as a one off. I got NO reply. Rates my ass.

    Reply
  • Pint of Guinness,4.70. Half pint, 3.20!

    Here endeth the lesson.

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    • The great anomaly of Irish pubs! Pint €4.70 half pint €3.20 instead of €2.35 Can some publican please explain why this is? How does ‘drinking responsibly’ justify charging 85c more?

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  • My heart bleeds for these poor chaps. On a totally unrelated point, my Super Value are doing a slab of Bud/Bulmers large cans for 25 yoyos. 24 cans or 6 pints next door?

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  • Publicans have been gouging us for years. It is not the consumers problem that they massively overpaid for premise over the past 15 years. The days of the drinking house are, quite rightly, numbered. Roll on the cafe bar and lets have more pub restaraunts. There are very few countries in the world were an establishment can thrive selling only drink at outrageous prices.

    Reply
  • Sick of pubs whining about losing business- instead of demanding government aid, how about looking at your business model and um perhaps improving it to get more punters in?
    Here are three areas to get you started: not such a smart idea to be charging 2007 prices for drinks, serving dull overpriced food menus, and expecting people to be happy with a very limited choice of (bland) beers.

    Instead, have food and drink promotions, put on table quizzes/race nights and the like, and look into the thousands of excellent small breweries around the world.

    Hotels and restaurants around Ireland have generally responded to the recesssion in a positive customer focused way- why can’t pubs?

    Reply
    • Most pubs are effectively restaurants now making all the efforts you mentioned. The point was focused on drink prices for brevity. You can equally pick up a bottle of wine and a steak in a supermarket for a fraction of the price paid in restaurants and pubs. Would argue that the difference in price is understandable for the same reasons listed above. You can buy a six pack of burgers in the supermarket for the price of a takeaway burger and nobody complains nor should they, takeaways have overheads, the burgers are not sold at cost.

      Reply
  • As one publican said before , around the smoking ban ” we run the country not the politicians ” the well has run dry get over it , and turn ur pub into a spar

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  • I know a pub in west of Ireland where they lowered the price of their drink on all the spirits, draft and bottles, even giving the odd free mineral to the driver. They were the cheapest in the town. They were also members of the VFI. Over the following weeks, they kept getting calls from other local pubs asking what they were doing and telling them they should not be so cheap, that it was “bad for business”. The pub stuck with the prices and ignored the other publicans. A week or two later, that pub got calls from the VFI telling them to raise their prices and “get in line” with the other pubs in the town or face being thrown out of the VFI. In the end the pub bowed to the pressure but still kept the prices €0.50/€.25 cheaper than the other pubs. And it’s still one of the few pubs making a profit in the town. The VFI are simply greedy and the authors of their own destruction. They have lost the monopoly they once demanded and are now cribbing about the supermarkets and off-licences taking their business. Fact is the VFI drove their customers away by their greed.

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  • The pubs are not enticing people to come anymore. They have a band in the corner, that’s nice, but they take over the whole pub. They are too loud sometimes. People go to the pub for the chat and a pint.

    Minerals and dashes should be free to entice designated drivers. €2.50/€3 for a small bottle of coke is disgraceful.

    Shots/shorts are highly overpriced, €2.50 to €5 in some cases. This should be minimum of €1.50.

    Pints should stay the same, or at least €5 or less. Not having enough for 2 pints with a tenner is shocking.

    I like the idea of Vat exception for people carriers for pubs. This is a good thing to be honest.

    Reply
  • FoxT 18/11/11 #

    30,000 jobs lost at cost of WHAT!!! eu630 million? This is a contribution of eu21,000 per job.This is the VFI claiming that the average pub employee has a comfortable salary of about eu50k per year.. I am sure there are many people in Ireland today who would welcome such a remunerative opportunity.Unfortunately, this is a lie. I must repeat this – it is a mendacious, distorted,deceitful, duplicitous, fallacious, fraudulent, insincere, lie, motivated by their own short term, self-important, pious interests.

    The VFI can survive only if they get consumers on their side. They could start by dropping their pretentious & untruthful name. A Vintner is a winemaker. These people are not vintners, they are operators of public houses.
    Many of them, to be fair, have made large investments in their businesses, but a combination of drink driving laws, anti-smoking laws, cheap supermarkets ,off-licenses, and societal change are killing their hitherto monopolistic business practices. This is wonderful, and I hope that the pharmacists are next in line!

    I am sympathetic to them as individuals, but their collective voice is toxic & best disregarded.

    They are gradually adopting, many offer decent food, & some offer decent entertainment – but the eu4+ per pint model will kill them – and if they maintain this business model, it will be suicide, not murder.

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  • I have seen in some pubs bottles of Coors & Bud with the label not for individual sale on the shelves.

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  • 17/11/11 #

    off to Tesco

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  • I can see some argument surrounding alcohol being relatively expensive and kept that way. If I head to the pub and decide I want to have a fruit juice, it’s €2.50-€3 for a 250ml bottle of orange juice. I can get a litre of the stuff in Aldi for 99c. Personally, I don’t want the fancy bottle and would be happy with a dash out of a carton and a glass. I’d be even happier if the cost was then €1-€1.20 which there’s no reason it couldn’t be. It’s initiatives like this that would make me go out more. I must say that here in Galway as well it’s possible to get pints for €3 in places. Those are the pubs I head to!

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  • Sean 17/11/11 #

    a lot of pubs did spend years ripping people off but right now there are genuine places going out of business and to say the only reason that they are is because “dastardly” publicans would rather be bankrupt than lower prices on drinks isnt a fair representation of the true circumstances of a lot of the industry

    Reply
  • I had relatives over from the UK recently, and they were appalled by the pubs they visited here. Every establishment serving the same bland choice of Heineken, Carlsberg, Budweiser, Bulmers and Guinness – cheap, tasteless, fizzy, ‘Brewed under license’ crap.

    Visit any decent pub/bar in the UK, Europe, even the USA these days and you are generally offered a selection of quality, often local beers and ciders including a selection of guest ales that rotates every week or so. VFI members, have a look at the growing selection of quality beers being stocked in supermarkets/off licenses these days and you will find the reason why I rarely visit a pub in Ireland these days.

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  • Bizarre comparing supermarket prices to pub prices. Any home-owner should appreciate the volume of bills that have to be paid before dinner is put on the table. Multiply them by silly numbers and then start paying the kids by the hour. Pay massive tv sports commercial rates, cctv, pest control, mortgage or lease, insurance, countless maintenance contracts, fire extinguishers, grease traps, licences, not to mention stock and wages etc. A euro a can factors in none of these costs and is often sold at no profit to get you into the supermarket.

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    • A fairer comparison might be to restaurants? They also have rent, rates, insurance and other various costs to factor into their pricing, but a huge effort has gone into bringing prices down, introducing early bird menus etc and customers have definitely responded to that. Why can’t pubs do something similar instead of whinging about off licences and supermarkets?

      It’s like restaurant owners calling for takeaways to be have minimum pricing as their business is suffering!

      Reply
  • A lot of your comments here are quite biased towards the pub industry. Some people don’t seem to realise the running costs of a public house mortgage,rates, esb, wages, insurance, taxes, sky tv( robbery)and the VFI trying to get the rates dropped is a great start towards lowering the price of a Pint in your local. In this climate there’s not many publicans that are greedy, but if there is they deserve to close down. The below cost selling in supermarkets is killing the pub, it’s all well and good you can get your cans or bottles for less then €1 each but the reality is wholesalers can’t supply pubs at this cost. Tesco and dunnes are able to bulk buy and don’t care if they sell alcohol at a loss, they make it back elsewhere. The government need to take action and lower excise and implement a stop to below cost selling, 8 years ago the cheapest a crate of cans was €40!! SMcB the pub in Dublin 6 obviously has a late license, do you know it’s costs €500 per night for this plus court fees then add security and extra staff costs, so the extra 50c on a pint isn’t a whole lot. Nearly any late bar with no cover charge will do this. I run a bar in a suburban town and would hate to have to let any staff go. There is no business Monday to Thursday anymore so we rely on the weekends. I do everything I can to entice customers in and make sure they get value for money. I know it’s tough for people and when they go out one night a week they want value. I don’t hear too many people giving out about there local convenience store ripping them off and most of the time they are.

    Reply

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