Seán Canney (Galway East, Independent) | Oireachtas source

I welcome the motion from the Independent Group. It is important we look at the hospitality and pub sector in a different light. The pub is part of our tradition and culture and is a tourist attraction for people coming into the country. What I am finding happening on the ground is that pubs are downsizing. Where they had a big space, they have cut it down to a small bar size. They are relying on a few customers coming in and a party every so often - a 21st, 40th, 50th, 60th, or, in my case, maybe a 70th or 80th. That is what the pub trade in rural Ireland relies on.

There is a complete disconnect from what is happening on the ground. The rates these businesses pay have been changed and in many cases have gone up for people in the hospitality sector. That is not sustainable because rates are not a tax on profit but on doing business. Rates are paid based on turnover and the size of the floor area of a building. It is incredible to think people who are not making any money still have to pay rates. Successive Governments have left local authorities reliant on this money to keep services going in our counties. If we have fewer businesses operational we will have less rates and poorer local authorities. It is important we take a common sense approach to that.

Another issue I sometimes get annoyed about is when the Government makes an announcement it is increasing the minimum wage by a certain amount in the next budget or next year or whatever. The announcement is made as if the Government is paying for it but it is not. It is being paid for by the blood, sweat and tears of the coffee shops, bakeries, small shops and pubs around the country. It is not just the person on the minimum wage who will get an increase; everybody else employed in that business will also have to get an increase.

I met a businessman last week who said that the small increase in the minimum wage announced in the budget will cost him an extra €266 per week in wages. If we multiply that by 52 weeks, we are talking about €12,500 or €13,000 extra that must be paid by that businessman because of the Government's great announcement that it is increasing the minimum wage. Part of that cost arises because he has to pay more PRSI. It is important to remember when we make these grandiose announcements about the minimum wage that while it is great and may be considered popular, the increase is crucifying businesses. Unless we can offer proper, long-term support for businesses, we are giving the two fingers to small businesses.

It is not often that the publicans and restaurateurs come together to try to alert people to problems. The march in Dublin yesterday suggests we are at that point. Publicans and restaurateurs are in trouble and we need to do something for them in the long term.

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