Ollie Crowe (Fianna Fail) | Oireachtas source

I welcome the Minister of State back to the Chamber. I would like him to outline the situation regarding bars and pubs throughout the country. As background, over the past two decades before the Covid-19 pandemic, 1,500 pubs closed and hundreds more have followed during the pandemic. The vast majority of the pub industry comprises independent pubs, small businesses and family-run operations. Pubs do not merely serve their local communities but are a major factor in our tourism success, as has been reflected in all the research carried out. Survey after survey shows that up to 80% of visitors to this country indicate the Irish pub is a major factor in choosing Ireland as a travel destination. As we are aware, the Guinness Storehouse is the number one visitor attraction for tourists.

As the Minister of State and Senators will appreciate, the tourism sector is vital to Ireland's economy. Prior to the pandemic, it employed in the region of 260,000 people and was worth €9.5 billion to the economy. As I have noted consistently, the Irish pub was one of the main attractions cited by tourists who choose to holiday here and that needs to be recognised.That is in addition to the 40,000 staff directly employed by Irish pubs, many of them in small towns and villages right across the country.

I played my part, and the Government did offer substantial supports throughout Covid. They played a significant part in ensuring the number of pubs that shut down was not even higher. The new initiative to revitalise the night-time economy is also particularly welcome. A pilot scheme to support rural pubs as community hubs, as part of Our Rural Future, is also a programme with considerable potential and it is proving very successful.

These measures are extremely welcome, but there is a major crisis and staff shortages. During the pandemic, many qualified and extremely capable workers left the trade because they could not rely on it for their income in the way it was possible in other sectors that were not subject to the same level of restrictions. Those two years of closures and restrictions had a devastating impact on staff retention. It is estimated that one third of all staff departed the sector. Before the pandemic, it was already challenging to retain and recruit quality chefs, bar managers and senior bar staff. Many operators in the sector tell me it is next to impossible now. Job offers remain open for months, with few if any applicants.

Figures from the two representative bodies of the trade, the Vintners Federation of Ireland and the Licensed Vintners Association show that staff shortages are a major issue for 90% of pubs. Such is the scale of the problem, many pubs have been forced to close for two days in the early part of the week. This means that in some areas of the country it is now challenging to get a booking for food on those nights. That is creating a very negative image for tourists and it must be addressed urgently by the Government. We must take measures in that regard. In particular, as the Minister of State is aware, the work permit rules for non-EU workers must be examined. The process must be simplified and prioritised.

The hospitality VAT rate of 9%, which is scheduled to increase next year, is something that also needs to be reviewed before any increase should even be considered. Many pubs and all restaurants face spiralling costs for their food offerings. Raising VAT from 9% could compound the threat to pubs and restaurants that support local producers in every part of the country.