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FOOD BUSINESSES ANTICIPATE another year of “survival mode” as they didn’t get the VAT cut they’d hoped for in the Budget.
The government has been accused of ignoring mass closures, as nearly 600 restaurants shut their doors in the last year, according to the Restaurants Association of Ireland.
VAT for the tourism and hospitality sectors was reduced to 9% during the Covid-19 pandemic, but the previous 13.5% rate was reinstated last August.
A month ago, Public Expenditure Minister Paschal Donohoe rejected calls to bring it back to 9%, but the sector was still hopeful up until yesterday’s Budget announcement.
In July, the Department of Finance’s Tax Strategy Group estimated that the cost of the measure could cost between €545 million to €764 million for the full year.
One support offered in the business package was a €4,000 energy bill subsidy. This amounts to less than €77 per week, which one restaurant owner described as “negligible”.
Four years of challenges
Paul Dignam has been running The Revolution in Rathgar, Dublin 6 for nearly 10 years. It’s a busy restaurant, but he says with what’s left at the end of the month sometimes, “you wouldn’t know it”.
This isn’t a new problem as the last four years have each presented their own challenges.
“The Covid years were difficult, but a lot of restaurants showed resilience … and there was government help.
“2022 was very difficult because all the help dried up, but customers were still nervous and not going out as much.”
The energy crisis caused by the war in Ukraine meant the restaurant’s bills “went up 400%” between 2018 and 2023. “That was an extra €40,000 we had to find,” said Dignam.
“It’s hard when we’re paying high utility fees and you see these utility companies making record profits.”
Between that and increases in rent, insurance and food costs, he says they feel like they’re always playing catch up.
“We have put our prices up numerous times over the last few years,” he said.
You have to put the prices up if you want to survive.
He says a decrease in VAT would’ve allowed him more room to grow the business, but now he’s in survival mode for another year.
‘One thing after another’
Eimear Killian, owner of Builín Blasta in Spiddal, Co Galway, increased prices at the café last year and she’ll likely have to do it again in light of the continuous pressures.
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“It wasn’t just that the VAT went up. Once the VAT went up, then the minimum wage went up, PRSI went up,” she told The Journal.
“Chocolate alone has tripled in price due to a crisis with chocolate plantations.
From 1 January, the minimum wage will go up to €13.50, an 80 cent increase.
Killian says this has a “ripple effect” on everyone’s pay, not just minimum wage workers.
“You might walk into the café here and say, ‘oh jeez, Eimear’s really busy’ … but at the end of the day when you add it all up and you take out your costs, the margins have just gone.”
There were 24 staff working at Builín Blasta this summer, many of whom are young people saving money for college.
A café closure would mean fewer jobs for young people in a rural village and more parents having to help their children out financially.
“[Spiddal] is medium sized village and if we were to close in the morning, that has a ripple effect on the whole area.
We sponsor lots of people, between the GAA and the local creche and the coffee morning for the hospice and all that sort of stuff … So that’ll all be lost as well.
Jérôme Fernandes owns Guinea Pig restaurant in Dalkey, South Co Dublin.
He’s been a chef in Ireland for 30 years, previously running a restaurant in Ranelagh. He says the current crisis is worse than what he’d seen 2008.
Guinea Pig, Dalkey, Co Dublin Jérôme Fernandes
Jérôme Fernandes
At the start of this year, statutory sick leave – where employees get a portion of their pay when they’re ill and can’t work – was increased from three to five days.
It will mean that employees will contribute to their pension, with their contributions set to be matched by their employer as a percentage of the employee’s gross income. This contribution will then be topped up by the State.
Fernandes says that while staff need to get paid properly, with the multitude of measures implemented in recent years “you don’t feel like the State supports small enterprises like us”.
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@Stephen:
Jared’s father…In 2005, he was convicted of illegal campaign contributions, tax evasion, and witness tampering after hiring a prostitute to seduce his brother-in-law, arranging to record a sexual encounter between the two, and sending the tape to his sister
Hunter Biden, incorrectly filled out a form and failed to pay his tax on time (because he was addicted to crack cocaine)
@Stephen: If Biden Jr. would be treated fairly then I don’t see Biden Sr. pardoning him. He’s right that he’s targeted particularly because it’s his son that wouldn’t happen to another person. The Republicans are outraged because only they get to pardon criminals and believe the law only applies to others.
@Stephen: That’s the issue really and noone is talking about that. Very easy for Biden to consider a failure to pardon as tantamount to locking his son up himself. Ridiculous position to be in.
Take off your anything but Trump glasses for one minute and look at the pardon on its merits….it was completely and utterly wrong to issue him a pardon especially as he had categorically stated he would not issue a pardon to his son on multiple occasions.
@KTH: Ridiculous comment….both are wrong full stop. A disgraceful move on Biden’s part- he is a complete hypocrite on so many levels. When will the people of Ballina get rid of the Joe Biden mural? It’s extremely embarrassing at this stage. The whitewashing of this guy’s record, particularly over the last year has to stop.
@KTH:
Donald Trump has said that he intended to pardon all the Capitol riot criminals.
He intends to pardon himself from his own convictions,and many of his other.cronies.
He is the last person who has any right to comment.
Trump is only raging because he would have fixed it to make sure Biden was given a severe sentence,while him and his cult escaped justice.
@Louis Jacob: if you’re a pro Biden supporter enough said! Man was deemed incompetent to run for President but is mentally competent to continue to act as it(he’s been a mere puppet for several years). Looking forward to January
@Any Name: @Stephen @Pat O’Shea…
@Stephen, where did I say I was standing up for Hunter? My opinion that I was asked for, is that Joe is not wrong.
@Any Name, two wrongs don’t make a right, no, they make it even…
Hahaha “anti-Trump glasses” I don’t need glasses I’ve 20/20 vision…
“Completely and utterly wrong” PMSL “categorically stated” ROFL, Trump never said something that wasn’t true? LOL
“Anti-Trump, raging he won the election” blah blah blah, I’ll make a nice latte from all of your cultists tears in the morning,
Hahaha,
I’ve never in my life seen so many people so angry anywhere when person B does what person A did, and knowing person A will do it again soon, but much worse.
Sad bunch of people.
Hahahaha :)
@KTH: Two wrongs don’t make a right. The fact of the matter is Biden has been saying that he would never abuse his power, and that he is not above the law… he’s a hypocrite!
The real issue for me is the blatant lies by Biden, he and his press officer were explicitly asked multiple times if he would pardon his son and multiple times confirmed no, stating no one is above the law. Clearly this lie was just to avoid abuse-of-power questions during the election.
He was always going to wait until his presidency was nearly over to pardon his son..he was never going to do it at the start of his term as it would be constantly thrown at him everywhere he went.in fairness i think most parents would do the same.
@morgan crowe: well his son was knee deep involved in the cesspit that is Ukraine following Natos rainbow revolution in 2012….look where we are know, closest time in history to nuclear war….military industrial complex should give him a medal of honor for bulging their revenue.
@Philip Gerard (Philip Gerard): its a fact, it’s not even disputed. In April 2014 Hunter joined the board of Burisma earning an estimated 50,000 per month. What is disputed is why he got that job, was it because his dad was the vice president of the US? Seems more likely than this crackhead being considered the most qualified and capable person for the job.
@Gearoid MacEachaidh: every president (I believe) has used the official pardons office to process pardons. Biden however jn this case has not. He lied about the pardon, his administration lied about the pardon. The pardon is dated back to January 2014 also. Joe is covering his own back. Which ironically may bite him in the a$$, if he is charged with any financial crimes Hunter will be forced to testify against his father. Due to his pardon he will not be able to plead the 5th
@Eric Gaffney: Will he also save the woman who tried to help him so much. “The Ninth Circuit U.S. Court of Appeals ruled in favor of the former president on Tuesday, ordering adult film star Stormy Daniels to pay $121,972 in legal fees for a failed defamation suit.”
Put yourself in Biden shoes who lost two children already and didn’t want to lose another, so what would you do lad??
Sure it’s grand you and your ilk to pass judgement from your ivory towers, go give your head a shake.
Of course he was. I would have done the same though. It’s his son and Biden’s ambition is a huge factor in his potential in his potential incarceration. I think he chose the evil he could better live with. No point in being a chump.
Just have the balls and the intellectual honesty to condemn it Larry and leave aside your partisan biases. Hunter Biden literally videoed himself smoking crack while using the firearms that he acquired by lying on his licence application forms. Hunter is also a serial tax cheat whose tax evasion goes back to at least 2012. Joe Biden said when he was still in the race for re-election a few months back that he wouldn’t pardon his son as a matter “fairness” and “equality under the law” and now he’s completely backtracked. He kept attacking Donald Trump back in 2020 for pardoning his allies but he’s just gone an exposed his rank hypocrisy for the world to see.
As a father I would say he was correct. As a politician he most definitely was wrong. He set a precedent for the Republicans to do as they please without possibility of criticism as they now have a standard set by democrats. It shows how corrupt American politics is.
@Mic JHintl:
Trump has pardoned more people than anyone else
He now has a full list of people he wants to pardon including himself.
He has set the standard not President Biden.
My real issue with Biden is that he ran atall considering he knew his fragile drug addict son would be heavily in the firing line. The guilt must be overwhelming. Same goes for Don Jr, except we all know Trump doesn’t give a rat’s arse about him.
Tells you everything you need to know about these men and their reckless ambition
Even Cheney pulled out of a Republican primary because he found out his daughter was a lesbian and he wanted to protect her.
Say what you want, but that’s what a real man does.
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