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The price of securing a licence to trade, and the extra costs of drinks pubs charge as a result, is killing the pub industry, according to the Vintners Federation. David Cheskin/PA Wire
Pubs

Off-licences force one pub to close every day - VFI

The price of securing a licence to sell alcohol in a supermarket is forcing pubs to close at the rate of one per day, vintners say.

PUBS CLOSED at the rate of one per day over the last five years, according to new figures from the Revenue Commissioners – a stat that publicans put down to the price of securing a licence to trade.

The number of pubs fell by 1,300 over the last five years, Revenue says, with the number of licences in issue standing at 7,616 in 2010 – down from 8,922 in 2006, the Irish Times reports.

That drop, of 1306, equates to one licence not being renewed every weekday over five years.

The Vintners Federation of Ireland, which represents 4,500 rural publicans, says the costs of securing the necessary licences to trade varies too much between pubs and supermarket off-licences – making pubs inherently uncompetitive.

The cost of a pub’s licence is based on its turnover, while an off-licence – which commonly makes a higher turnover – pays a flat fee. This saving, the VFI said, can then be passed on to customers, making pubs a less viable option.

“The removal of restrictions on below-cost selling has really broken the back of the industry because they’re selling at prices that we can never compete with,” said Gerry Mellett, president of the VFI.

“When you combine this with stricter drink-driving regulations and the smoking ban, we’re making it increasingly difficult for people to socialise.”

The Revenue’s figures came as a popular chain of Galway city nightspots, pubs and off-licences announced its closure, citing falling alcohol sales. Staff at the Cellar Bar, Cuba nightclub, Bar 903, and the Harvest off-licence chain in the city were told on Saturday that the chain would be shutting.