Damien English (Meath West, Fine Gael) | Oireachtas source

I thank Senator Crowe for raising this issue. It is important that we have this discussion given the importance of pubs and restaurants in the hospitality sector, and all they do for this country. The pub trade has been very much affected during the Covid-19 pandemic. I thank all involved in both representative bodies for their work in assisting the Government. I am conscious that Padraig Cribben has moved on as chief executive of the VFI, and John Clendennen is the new chief executive. It is great to have those associations working closely with us to help us design supports and policies at difficult times, but also to try to get policy right in the long run.

Senator Crowe is correct to raise the skills, talent and availability of staff. I will come back to the matter at a later stage in the discussion because it is very important that we focus on developing the career path and opportunities within the pub trade and the wider hospitality sector. Pubs are a vital component of the hospitality sector and there is a great opportunity for employment in every region throughout the country.

I again thank Senator Crowe for raising this issue today. I am providing a response on behalf of the Minister for Finance because he was not able to make it here due to a Cabinet meeting. I am informed by the Revenue Commissioners that the latest data available on the number of publican licences issued across each turnover band is for the 2018-19 licensing period. The reason for this is due to one of the supports the Government provided for the sector during the pandemic, namely, the licence fee waiver. As the renewal fees were waived and no payment was required in 2020 or 2021, pub turnover data for these licensing periods is not available yet.

While I do not have a breakdown by band for the publicans' licences, the total uptake of publican licences for 2021 shows that there has not been a significant decrease over the period. Senator Crowe referred to a number of pubs. In 2021 there were just over 200 fewer publican licences issued than in 2019, which was approximately a 3% reduction over the period. I am conscious that might not capture all the changes in the system. We all know there are some difficult situations.

Details of the precise number of licences for the year can be made available to the Senator in tabular form. These licence figures show that, despite the significant difficulties the sector faced in the context of a global pandemic, Government supports assisted in the vast majority of pubs surviving. A number of supports specific to the sector were provided throughout the last two years. I thank Senator Crowe for his work in designing those schemes, and for his efforts in this House. We had the same discussions in the other House about trying to target supports at this sector.

The Government introduced a support package of measures for vintners impacted by Covid-19 restrictions in August 2020, including a provision to waive excise duty for on-trade liquor licences on renewal in 2020 until 30 September 2021, which was subsequently extended to the end of September 2022, additional support for vintners under the tourism adaptation fund and a 40% top-up to the restart grant for all pubs and bars. A Government decision in October 2021 provided for a waiver of court fees, and associated excise duty, in respect of applications for special exemption orders, which allow the sale and consumption of alcohol in licensed premises beyond normal trading hours by holders of on-licences. The waiver covered a court fee of €300, which goes to the Department of Justice and an excise duty of €110, which is collected by the courts on behalf of Revenue and applied until the end of December 2021. In January 2022, a further application of the waiver for special exemption orders for late licences was provided until 30 April 2022.

At the outset of the pandemic, Revenue also put measures in place that allowed alcohol products, on which excise tax had been paid, but which was spoiled due to the closure of premises, to be returned to a tax warehouse. The excise duty previously paid on the alcohol was refunded or remitted by agreement with the returning trader's local Revenue control officer.

As the Senator will be aware, in May this year the Government extended the 9% VAT rate that currently applies to the tourism and hospitality sector for a further six months until 28 February 2023, at an estimated cost of €250 million. In addition to these support measures, it is worth noting that there has been no increase in excise on alcohol since 2014. This means that excise as a percentage of the price of a pint as sold in the on-trade is at the lowest level in approximately 20 years.

I recognise that the sector has come through a very difficult time and it will take time to get fully back up and running. There are the added pressures of trying to deal with increased costs due to the war in Ukraine and delivery and supply chains. Most people involved in the hospitality sector raise with me the issue of attracting staff. I am willing to work with the various organisations in individual sectors - the education system, the Department of Social Protection and my Department, the Department of Enterprise, Trade and Employment, to try to bring forward solutions to the development of skills, upskilling and training but also to try to develop a long-term career to make the sector more attractive as well. It is important that we do focus on that.

The Tánaiste co-chairs the hospitality forum with the Minister for Tourism, Culture, Arts, Sport, Gaeltacht and Media, Deputy Martin, and they are focused on issues to develop the hospitality sector, provide supports and also the development of talents and skills.