TÁNAISTE MICHEÁL MARTIN has said he will talk to the Finance Minister about structuring warehoused debt repayments for the hospitality sector following a wave of restaurant closures.

Last week, Cork eatery Nash 19 closed after over 30 years in business, with the loss of some 20 jobs.

Adrian Cummins of the Restaurant Association of Ireland (RAI) said he was “shocked and saddened” at the closure of the “Cork institution”.

He called for the government to take “immediate action” and added: “If a long-standing business like this is closing, what hope for the rest of the sector.”

The RAI has said over 280 food-led businesses have closed down in the past six months and that the industry is “facing a crisis”.

It has released what it has called a “five-point plan to save the food-led hospitality industry”.

This includes reinstating the 9% VAT rate and phased warehoused debt repayments, where businesses are allowed to “pay back what they owe over a 10-year period to avoid a tsunami of liquidations”.

Our industry is currently in crisis.

Each and every day, several independent food-led businesses are being forced to close their doors for good.

The RAI has a plan to help the Government avoid an otherwise inevitable tsunami of restaurant and café closures in 2024. pic.twitter.com/cwDXgkJwr3

— Restaurants Association of Ireland (@RAI_ie) January 13, 2024

Warehousing of tax debt assists businesses who experienced cash-flow and trading difficulties during the Covid-19 pandemic and speaking to reporters in Cork yesterday, Tánaiste Micheál Martin said “that’s certainly something we can look at.”

He also remarked: “I’ll talk to Finance Minister Michael McGrath in respect of that, to see if that can be structured.”

However, he added that it has “already been restructured to some degree in terms of phasing”.

Meanwhile, Martin noted that VAT reductions are “temporary”.

He told reporters: “On VAT, 13.5% was always the VAT rate, it was only during Covid and after the last crash as well, that it’s been temporarily reduced to try and give a kick.”

He also pointed to “problems” with hotels.

“It’s difficult to separate out the restaurants from the hotels,” said Martin.

“That was one of the problems because hotels, when we did bring it down to 9%, a lot of hotels didn’t bring down prices, the prices went up, as we witnessed across many towns and cities if the truth be told.”

Martin added that the government brought in a €250 million package in the budget “as a way of helping businesses generally in the cost of living package to support them”.

“Our objective is to keep businesses open and there was a €250 million allocation made in the cost of living package that accompanied the budget for businesses generally, in terms of grant availability.”

Martin also said that “there has been unprecedented support over the last three years for the hospitality sector, that should be acknowledged”.

“There are undoubtedly difficulties and challenges, particularly because of the most recent inflationary round and that’s without question,” said Martin.

“We will do what we can to help, but I wouldn’t accept any suggestions that we’re not listening, I don’t think that’s valid.”

Martin also said that the government “stepped up to the plate during Covid and provided very substantial resources to the hospitality sector”.

“They are going through a lot of pressure, I think what we’re witnessing is the more long-term effect of Covid.

“Its impact on a whole range of the economy and society has not gone away.”