Industries plead for lifelines with existence at stake
Employers and employees across Ireland are feeling the impact of Covid-19 and are predicting billions of euro of losses and mass closures unless major economic policies are introduced
Hotels
THE crisis could lead to €3bn in lost revenues for the Irish hotel industry, with a drop of up to 40pc in business.
Up to 100,000 jobs are at risk. Hotels are due to reopen on July 20, with limited occupancy, and on-site bars will be closed until August 10.
Elaina Fitzgerald Kane, president of the Irish Hotels Federation, said: “It’s imperative we do everything possible to mitigate the risk. Urgent Government supports are essential, including the continuation of the wage subsidy scheme, to safeguard 260,000 livelihoods and the tourism industry.
“We need a rates waiver for a minimum of 12 months and the VAT rate to be reduced to zero for a year.” Retail
UP to 100,000 retail jobs are under threat and billions of euro in revenue could be annihilated.
Garden centres, hardware and electrical stores can open on May 18, small retail outlets on June 8, larger nonessential shops on June 29, and on August 10, enclosed shopping centres will be reopened with restrictions.
David Fitzsimons, group chief executive of Retail Excellence Ireland, said: “We’re looking at potential losses in the billions to the industry. We need substantial Government grants, a rent waiver for 12 months and a waiver on rates. We don’t need loans, we need free money and we need it now, to get people back in business.”
Hairdressers
AROUND €500m in revenue could be wiped out for the hairdressing industry, with around 1,000 premises at risk of closure.
Hairdressers won’t be opened until July 20, a delay the Irish Hairdressers Federation (IHF) fears could result in the black market dominating, impacting the sector financially, and increasing the risk of spreading the virus.
David Campbell, president of the IHF, said: “There are 30,000 people employed in the industry. We could lose 50pc. We need to open earlier than July 20.”
Mr Campbell, who runs House of Colour in Charlestown Shopping Centre, Dublin, added: “We’ve had members call us and tell us they’re not opening back up, that it’s too big a burden.”
Restaurants & cafés
RESTAURANTS and cafés could haemorrhage up to 120,000 jobs and suffer around €6bn in revenue losses.
Adrian Cummins, chief executive of the Restaurants Association of Ireland (RAI), said: “We could lose 90pc of the workforce.
“You’re talking nearly 8,000 businesses and the difference between opening and being viable, if we open.”
Restaurants and cafés are due to open where they can comply with social distancing, on June 29.
Mr Cummins said a large number will “not be viable” due to the social distancing rules.
“We need support, for VAT to be reduced to zero, grant aid, commercial rates to be written off, and for rents to drop by 50pc,” he said.
“We’re looking at financial ruin if something doesn’t happen quickly.
“This is dire straits for the country. Small businesses need a bailout. The Government needs to act now.”
Pubs
MOST of Ireland’s 7,000 pubs face potential closure and 50,000 jobs could be lost, if they are unable to trade to a normal standard.
The Licensed Vintners’ Association (LVA) has said as the industry was one of the first to close, on March 15, and it will be one of the last to open, on August 10, trade will suffer immensely.
Donall O’Keeffe, chief executive of the LVA, said: “Pubs have been one of the business sectors hardest hit by this crisis. We will be the last to reopen, five months after we closed our doors.
“Since we closed, turnover for most pubs has dropped to zero. Even when we’re allowed to reopen, social distancing and public health requirements will make it unviable for many pubs to trade.”
Construction
THE construction industry estimates a loss of up to €2.3bn after the shutting down of building projects during the crisis.
Some 75,000 construction workers have become unemployed, while 90pc of building activity has ceased.
A spokesman for the Construction Industry Federation (CIF) said: “Pre-Covid demand for construction was very high, including pent-up demand for 35,000 houses per annum and over €110bn of public infrastructure.
“Unfortunately, without Government support, strong investment on infrastructure and collaboration between public sector clients on the costs of coping with Covid-19, significant job losses and company shutdowns will materialise.
“This would have a debilitating knock-on effect on the wider economic recovery as other economic sectors are depending on construction to deliver the infrastructure, housing and commercial projects that underpins our competitiveness.”
Childcare
THE childcare industry can’t yet estimate the impact on jobs and revenue, as the sector watches for the fall-out of Covid-19.
However, the “one-size-fitsall approach” of Government policies, such as the wage subsidy childcare scheme “while welcome given that it’s covering 100pc of staff wages, is having a mixed impact”, said Frances Byrne, director of policy, advocacy and campaigning at Early Childhood Ireland.
“It remains to be seen if it will have the desirable effect of allowing Ireland’s 4,500 creches to survive the current emergency.”
On June 29, creches, childminders and preschools will reopen for children of essential workers, with social distancing and other restrictions in place.
“Early Childhood Ireland will be monitoring this carefully. The missing piece in terms of funding is parents’ fees,” Ms Byrne said.
Gyms & fitness
AROUND €165m has so far been lost in revenue this year by the gym and fitness industry, with 10,000 jobs at risk.
The main challenges the industry is facing are the costs of maintaining leisure centres and gyms which are currently closed and generating no income.
More than 10,000 people work in the industry, which includes lifeguards, swimming teachers, personal trainers, fitness instructors, coaches and operational staff.
Conn McCluskey, chief executive of Ireland Active, said: “All these jobs are at risk. From looking at our international colleagues, revenues can drop by as much as 50pc due to the restrictions on reopening.
“Support from the Government is needed in terms of VAT rate reductions, rent contributions and grants towards operational costs.”
The arts
THE arts will suffer an estimated €6.4m loss up to the end of May.
Some 19,000 days of work, right up to the end of April, have also been lost.
An Arts Council advisory group has been established as a result of the crisis.
Members of the group include Lenny Abrahamson, director of hit drama ‘Normal People’ and theatre and opera producer Anne Clarke.
Arts Council chairman, Professor Kevin Rafter, who will also chair the group, said: “The board of the Arts Council recognises the scale of the crisis in the arts sector. We have asked the advisory group to consider the huge challenges now facing artists and arts organisations.”
The Arts Council has opened applications for a €1m funding scheme to support new artistic work to be showcased online.
Marine
THE marine leisure sector says despite being “hit hard” along with other industries, it feels “in good shape” to weather the storm.
Though the industry is going to be dealt a heavy blow due to a lack of tourism this year, the Irish Marine Federation (IMF) feels “cautious optimism.”
The sector may be operating in some capacity from as early as May 18, with social distancing restrictions in place.
Paul Janson, chairman of the IMF, said: “People will be allowed to use their boats within the guidelines and holidaying at home will be popular for this year and likely next year also.”