Oireachtas Joint and Select Committees
Tuesday, 30 June 2020
Special Committee on Covid-19 Response
Impact of Covid-19: Hospitality Sector
Mr. Jim Power:
No. From what I have observed over the past couple of months, there has been no progress whatsoever. There are issues that are not being addressed. If they are not addressed, it is inevitable that many of the businesses that manage to reopen will not survive the next 18 months. The issues need to be addressed as quickly as possible.
I totally agree with the Deputy's assertion that the committee needs to have an input immediately because the stimulus package is intended for around the middle of July. Therefore, if all these issues are not recorded in the system immediately, we will be left with the sad legacy of the closure of hotels, pubs and restaurants that are an essential part of the tourism industry. It will not be possible to rebuild tourism at the end of all this without those businesses. Obviously, there would be a major loss of employment across the sector. With regard to the regional economic contribution, the effect would be pretty staggering and devastating. We are aware of the counties that would be most exposed. We could end up with vacant premises on the streets of our villages, towns and cities.
It goes on. The social and economic damage of not addressing those matters and others will be devastating. I spoke to a person in one restaurant who made a decision last Saturday to shut and it will not open again. The issue was definitely that the landlord was insisting that full rent be paid for March, April and May. There was absolutely no flexibility whatever given to the likelihood that turnover for the foreseeable future would be down by at least 50%.
These matters need to be addressed immediately or the economic and social legacy will be devastating.
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