WILL COVID-19 CALL TIME ON OUR PUBS?
IVF says Government help will be needed to prevent sector collapse
FERNS publican, Tom Dunbar, who is a leading figure on the national Irish Vintners Federation (IVF), has warned that a lot of businesses will not reopen once the Covid-19 crisis is over unless the Government implements a lot of measures to support those within the hospitality sector.
‘We did not realise it [the pandemic] would be this length and it seems to be getting worse,’ he told this newspaper.
‘At the end of the day people’s health is more important but when we do open we will be looking for support from the Government,’ said Mr Dunbar.
He said one of the things that will be sought will be a reduction in excise duty and commercial rates deferment.
However, with regard t that he said: ‘You have to apply it to all small businesses.’
He said he spoke to one business owner whose premise is closed but commercial rates are still coming out of his account.
‘ That should not be happening now,’ said Mr Dunbar.
Highlighting that 75 per cent of pubs have a turnover of less than €380,000 and that outside of Dublin that figure would be higher.
He said VAT will have to be reduced at least to 9 per cent for ‘at least five years’.
‘Maybe it should even be zero per cent for one year and then increased to 9 per cent just to get the industry back,’ he said.
Referring to the supports that were given to banks Mr Dunbar said something similar will be needed for small businesses.
‘Cheap credit should be available and speedily because at the moment you would almost have to sign for it in your own blood,’ he said.
Mr Dunbar said that in Britain businesses get grants and suggested something like that should be done here too. ‘We need a big boost,’ he said. ‘Insurance companies are saying they will not cover business being interrupted and they are saying we were only advised to close, not told to.’
He agreed, when it was put to him, that it appeared to be a case of being insured for everything but covered for nothing.
‘It’s a frightening situation because we are all walking into a different world,’ he said.
‘We will be opening our doors to a very different world.’
Mr Dunbar said the pub trade had experienced huge change within the last 15 years and pressure that those within the industry were facing has been compounded now by the pandemic.
Even if Government supports are in place the public’s attitude might have changed considerably by the time pubs open their doors again.
‘After this people could be afraid to risk going out for a long time even with a vaccine,’ said Mr Dunbar.
‘I think it will be a struggle [for the industry] one way or another and the tourist sector will also struggle,’
He commented that tourists from America and Britain will be less likely to travel and the same will be true for the Irish.
‘I would imagine that tourism will be domestic,’ he said.
While acknowledging that Bord Failte has done a lot for businesses operating within the hotel sector he said the organisation has done ‘nothing for pubs’.
‘It does good work but it’s all for hotels and never for pubs,’ he said.
Mr Dunbar then highlighted that when tourists think of Ireland and give reasons why they come here they talk about pubs: ‘ 90 per cent of visitors talk about the pubs and the social aspect of them; that’s what attracts them in the first place.’
‘Bord Failte has never tapped into that because it’s always about hotels and restaurants,’ he said.
‘ The reality is that when this [crisis] ends we will need a lot of help to survive,’ he added.
Emphasising that the ‘social fabric of rural Ireland is the pub’ Mr Dunbar said that there is a danger that if supports aren’t in place to ensure the survival of those operating within the sector the cultural and social attraction of the country will be greatly diminished.
He said the IVF will be working alongside members of the LVA [in Dublin] and the International Small Business Alliance ‘ to do the best we can’ for all small businesses.
When asked where he sees the industry going in County Wexford, especially with regard to smaller pubs and businesses, Mr Dunbar said to do so would only be speculating at this stage and that would only add to the stress and pressure that people are already under.
He said some within the industry were hoping for possible opening measures by July but admitted that is very optimistic.
‘We have adhered to the guidelines and we need to ensure the safety of our staff and customers but we will be looking for help from the Government to get us through this,’ said Mr Dunbar.
‘ There are a lot of people affected by this and unfortunately there will be a lot of businesses might not open again and that’s not just pubs but other small businesses as well. We will get through it but the Government has to help.’