Pubs ‘dying a fast death’

The Minister for Finance has been asked to consider tax reliefs for rural pubs, as Tipperary councillors warn that the loss of the pub will have far-reaching consequences for local communities.

Before the September meeting of Tipperary Co Council was a notice of motion from Cllr Andy Moloney, who wanted the minister to address the decline of rural pubs in the forthcoming budget.

“We are great to introduce incentives to open new business, but the pub trade is dying a fast death and similar incentives should be introduced to keep doors open,” Cllr Moloney said. He was alarmed at the increasing numbers of people drinking alcohol at home, and said it is unfair that publicans have to pay so much tax compared to off-licence operators.

The loss of the pub has had a “knock-on effect of social isolation” in rural communities, Cllr Moloney said. “With covid, people never went out again after it; pubs – if they go, it’ll be the same,” he said.

Several councillors spoke in support of the motion, including Cllr David Dunne, who said taxis should be subsidised in order to get people back out to their local pub. The Local Link transport service does not go far enough towards this end, he reasoned.

‘HUB OF SOCIAL INTERACTION’

Cllr John Carroll described the pub as the “hub of social interaction” when he grew up. Everyone and every organisation including sports clubs met in the pub. He regretted that this has now been lost and wanted to bring it back. Cllr Carroll was concerned that younger people are now drinking in an “unregulated environment”.

Cllr Willie Kennedy agreed. “When you drink at home, there’s no limit, no measure,” he said. He also agreed that transport needs to be looked at as a means of attracting people back to the pub.

“When a pub goes, the parish goes with it,” Cllr Kennedy exclaimed.

Of a similar view was Cllr Mark Fitzgerald, who spoke of increasing levels of domestic violence since the pandemic, when people became used to drinking at home. Publicans have a “duty of care” towards their customers, he said, adding that pubs present an opportunity for new people to get to know their community.

Tipperary TD Ryan O’Meara joined the Vintners’ Federation of Ireland (VFI) outside Leinster House this Wednesday in calling on the Government to support rural pubs in Budget 2027, warning that the decisions taken next Tuesday will see last orders for hundreds of rural pubs across the country.

Deputy O’Meara joined VFI leaders and supportive TDs and Senators outside Leinster House as the organisation issued a stark warning over the mounting financial pressures facing rural pubs and called for the introduction of the proposed On-Trade Sustainability Scheme, a capped tax credit for pubs similar to existing tax credits available to film, television, reality TV and digital gaming production sectors.

More than 2,200 pubs have closed since 2005. Up to 2019, the annual closure rate amounted to 112. Since then, it has climbed to 128 per year.

The VFI has also warned that rural Ireland is being disproportionately affected, with 1% of pubs in Dublin having closed since 2005. However, that figure climbs to almost 28% outside the capital.

New Amárach polling commissioned by the VFI highlights the importance the public places on rural pubs and the role they play in communities. 80% of adults believe the Government should take action to protect small rural pubs because of their role in local communities, while 85% recognise that rural pubs play an important role in tackling social isolation.

Deputy Ryan O’Meara said:

“I strongly support the call from VFI for supports for our rural pubs under Budget 2027.

“I have met with VFI previously on this and I was proud to stand with them today outside Leinster House.

“Rural pubs are at the heart of so many of our communities. For many villages and rural areas, they remain the last central meeting point. They are not just commercial businesses, they are a hub, a community gathering, a meeting point for those who feel isolated, and every pub that closes is a pub that will most likely never reopen.

“Budget 2027 is a chance for Government to support an important institution of rural Ireland and I am continuing to raise this issue in advance of the Budget next week.”

VFI CEO Pat Crotty said:

“This Tuesday will decide the future of hundreds of rural pubs. Publicans have been dealing with rising Government-controlled costs across almost every aspect of their businesses.

“Wages, energy, water, insurance, and supplier costs have all increased, while many pubs are operating on margins of less than 1%.

“For rural communities, this is about much more than the future of individual businesses. The local pub is often a vital community hub, hosting GAA gatherings, fundraisers, music sessions and community events, and providing somewhere for people to come together.

“It is important to note that while welcome, two thirds of rural pubs did not benefit from the VAT reduction announced in last year’s Budget.

“We are making one final appeal to the Government ahead of Tuesday’s Budget. The decisions taken this week will have a direct impact on whether many rural pubs can continue to operate and continue serving their local communities."