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. Adrian Cummins:

I thank the committee for the opportunity to speak at the meeting today. I am joined by the president of the Restaurants Association of Ireland, Mr. Mark McGowan.

As we are all aware, Covid-19 has had a devastating impact on lives, livelihoods and society in general. Some 4,588 people have lost their lives due to Covid-19 and the association's sympathies go to their families and loved ones. We also think about the 280,000 people who work in hospitality and tourism and who have had their lives turned upside down.

Half of those employed in hospitality work in restaurants, cafés and pubs that serve food. We are here today to offer insight on how Covid-19 has impacted upon the restaurant and food service sector and to propose supports for the survival of a sector which has had restricted trading for more than a year now. Let us be very clear that we trust the medical advisers. We do not want to open before it is safe to do so. We are looking for the metrics on how we can reopen our businesses safely and the plan that will allow us to see light at the end of the tunnel.

Hospitality businesses are on the brink of collapse. Some 50% of restaurants face permanent closure. Reopening our businesses viably with indoor dining is our first priority. The narrative of a summer outdoors does not work for restaurants. We need a plan to re-employ staff and, above all, our industry needs hope. Current business supports do not go far enough for our industry. Continuation of the EWSS at the current rate is crucial. The Covid recovery support scheme must be extended to include level 3 restrictions and the current rate doubled to cover fixed costs. Businesses previously excluded due to a lack of fixed premises, such as contract and event caterers, must be included in financial supports going forward. A restart grant equivalent to eight weeks of CRSS is needed for reopening costs. The commercial rates waiver must be extended until the end of 2021 and the current VAT rate of 9% must remain in place until 2025.

As we start on the road to recovery, we have a number of challenges. There is little to no payment on business interruption from insurance claims. Commercial landlords are seeking full rents for the period of closure with some charging interest on arrears, to add to the misery restaurant owners are going through at present. Utility providers are disconnecting services to restaurants and hospitality businesses. The banking sector is blacklisting hospitality businesses and workers by way of declining mortgages and loan applications. Local authorities are issuing commercial rates bills while businesses are in lockdown, having traded for a maximum of 64 days since last March. With only 20% of restaurants able to avail of outdoor dining, the current regime is wrapped in red tape, major associated costs and extreme restrictions. There is no restaurant or gastropub representation on the boards of Fáilte Ireland, Tourism Ireland or the tourism recovery oversight group. The chef apprenticeship scheme is cost-prohibitive with very little output of qualified apprentices based on the size and scale of the industry. Finally, there is a lack of a joined-up approach by State bodies with responsibility for tourism and hospitality.

Urgent action is needed to ensure the restaurant and hospitality sector survives. I thank the committee for taking the time to hear our concerns and reading our proposal for supports. We are happy to take any questions.

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