Oireachtas Joint and Select Committees

Tuesday, 23 March 2021

Joint Committee on Media, Tourism, Arts, Culture, Sport and the Gaeltacht

Impact of Covid-19 on the Hospitality Sector: Discussion

Mr. Padraig Cribben:

On behalf of the Vintners Federation of Ireland, I welcome this opportunity and thank the committee for it. First, we express our deepest sympathy and condolences to those who have lost loved ones to the pandemic over the past year. From the outset, we have urged all our members to support and adhere to the public health measures in place at any given time, and we continue to do that.

We represent 4,000 family-owned and family-run small businesses in every parish, town and city outside County Dublin. The majority of those businesses, as Mr. O'Keeffe outlined, have been closed for over a year, except for a two-week trading period in September and for those that have a food operation. It is not just those families who are suffering, it is also their staff, the musicians who play on the premises, the comedians who perform at the venues, the large and small suppliers, local and national, of both food and drink, and the service people who ensure refrigeration and other services are running to required standards. The list is endless. Members and those dependent on them for their livelihood are suffering both financially and mentally.

No business can be financially healthy if closed for a full year. Yes, the Government's supports have been welcome and helpful, but they are a long way short of meeting the ongoing outflows of cash. That is before we look at financing and banking activity. Some of the banks, despite their soft public words, are certainly not being supportive to the level required. What is required from a financial point of view? Currently, there is a need for a doubling of the Covid restrictions support scheme, CRSS, to help businesses to be in place when reopening happens. A substantial restart grant will have to be put in place prior to reopening. By "substantial" I mean double the restart grant plus of 2020. On reopening, there must be an extension of the employment wage subsidy scheme, EWSS, until the end of March next year, an extension of the CRSS for those businesses categorised as able to open but trading at less than 25%, an extension of the waiver on commercial rates until March 2022, an extension of the 9% VAT rate to 2025 and, in particular, a system of making finance available to those who want it at very low interest rates over a ten-year period but outside the main banking structures.

The past year has been very challenging mentally. Publicans, by their nature, are used to dealing and mixing with people. When one combines this with the financial losses and concerns and worries, it is not a good recipe. The pressures have been exacerbated by a lack of clear messaging over the past year from the Government. On a number of occasions publicans were ready to open, with stock in place at serious cost and staff ready, only for the rug to be pulled at the last minute. At a time when the Government was advising members of the public to mind their mental health, it was the cause of adverse mental health effects in this sector. The artificial divide between food and non-food pubs also created unnecessary divisions and pressures.

The sector now needs a clear roadmap outlining the conditions that must be in place for reopening, including the levels of vaccination, community transmission, hospitalisation and so forth. It is a roadmap, not dates. Hope is necessary, and there is none at present. Such a roadmap would provide hope and would help to reduce stress levels. In addition, we must have a clear statement from the Government that all hospitality outlets will be allowed to open at the same time, under the same conditions and subject to the same sanctions. There must be no more divide between food and non-food outlets.

The challenges have been, and are, great. The sector has been impacted more than most. However, with the proper supports, as I have outlined, and a clear roadmap we will emerge at the other side ready and willing to be the hub in the community again, to be an employer again, particularly of young people, to be the provider of opportunities to musicians and entertainers again and to playing an integral part in a recovering tourism offering.

We thank the committee for the opportunity to outline our position. We hope the committee will impress upon the Government the need for both the financial supports I outlined and the roadmap. We are willing to address any questions members have at the appropriate time.

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