Oireachtas Joint and Select Committees

Tuesday, 30 June 2020

Special Committee on Covid-19 Response

Impact of Covid-19: Hospitality Sector

Photo of Michael CollinsMichael Collins (Cork South West, Independent) | Oireachtas source

I thank the witnesses for their comments. I do need to say how businesses around the country in the pub, hotel and restaurant sectors are haemorrhaging money very badly. In my constituency of Cork South-West I have spoken to business owners from Kinsale to the peninsulas and there is serious concern out there. I will be putting a number of questions and I would appreciate it if the witnesses took note of them. Some of them may have similar answers from the witnesses and there is no point in taking each of them individually. I have so many questions I could be here for the day.

I start by acknowledging a conflict of interest, as two of my brothers own pubs in west Cork and my daughter works in a pub. Maybe this is not something bad as I hear of the daily struggles of publicans. The previous Government spent its time trying its best to damage the industry, which employs more than 50,000, leading to many publicans closing their doors and in turn to massive job losses and a sense of rural isolation in communities. This new Government must step up to the mark now and put together a survival package for pubs and restaurants. From what I have heard, the most they can get so far is €2,000 from the back-to-work grant and they have not even got this yet. Do publicans qualify for any other aid, as if they do not, many publicans will not be able to open their doors again?

I know the fact that the insurance companies have acted shamefully with respect to the pub industry and others during the Covid-19 crisis has already been mentioned. All publicans have business interruption cover in their insurance, but when business was interrupted, many found they did not have cover. People were told that if they could prove a customer had Covid-19 on the premises, a claim could be made, although full proof had to be provided. I spoke to a publican today who told me he has paid €400 monthly as his premium while his doors are shut. This must be one of the biggest scandals of all time. The doors are shut but insurance companies are billing people daily for a working premises. Is the industry powerless when it comes to insurance companies?

Why did the Government allow pubs to open yesterday only if food was served? Why was every pub not allowed to open with proper guidelines being followed? The cost of Sky television packages has always baffled me. I know the charges have decreased when there has been no live sport but these astonishing charges go from between €700 per month to €2,000 per month. That is a massive mortgage in itself. Are vintners able to broker a long-term deal to tackle this massive charge? Publicans do not want to lose the Sky package as it attracts customers, but if some deal is not done, the publicans will not be able to purchase any package. I am specifically referring to this happening over the next year or two.

A hotel or restaurant will have to take on extra staff because of Covid-19. I met representatives of hotels and restaurants, and according to them, the wage subsidy scheme does not cover new staff. Is there any indication the wage subsidy scheme will cover staff taken on or could it be changed in some way?

I will give the witnesses a chance to answer. Prior to Covid-19 I pleaded for a lowering of the VAT rate on tourism but this has become a must since Covid-19 struck. I have called for a zero VAT rate on tourism for the past two months. I have since heard many Fianna Fáil Deputies call for the same, which is welcome. This is not a dig at the new Minister but I am extremely disappointed Fianna Fáil, in government, has not appointed a stand-alone Minister with responsibility for tourism. It is something the sector urgently needed. It would be very soon for a Minister to deliver but is there any indication that under this Fianna Fáil Government we will get what is needed, which is a zero VAT rate? I appreciate any answers, although I know the time is short. The witnesses might be able to touch on some of the matters.

Comments

No comments

Log in or join to post a public comment.