Oireachtas Joint and Select Committees

Tuesday, 30 June 2020

Special Committee on Covid-19 Response

Impact of Covid-19: Hospitality Sector

Mr. Padraig Cribben:

There would be four specific asks. The first would be the reduction in the VAT rate on alcohol sold in the on-trade for a period to allow businesses to get back on track. The second would be an extension of the temporary wage subsidy scheme for people when they are back at work. That should stay in place until social distancing is gone. One the third issue, one of the biggest costs for business is commercial rates. The pub sector has been revalued over the past ten years. It is one of the few sectors that has been revalued based on turnover. That turnover is going to be significantly diminished so commercial rates should also be substantially diminished and parked for a period while social distancing lasts. There also needs to be a 15% reduction in alcohol excise. We have the second highest level of excise in the EU. It is not just that we are second in the league. In some instances we are six, seven or eight times higher than others. We have had two excise increases, one in 2012 and one in 2013. One of them needs to be turned back, as it were. It is a 15% reduction, the equivalent of about 10 cent a pint or 10 cent on what would be referred to as a small one. They are the four key asks.

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