Limerick based chauffeur companies facing job losses without government help

Hundreds of jobs in the chauffeur industry in Ireland are facing wipe-out within six weeks, with companies across the country set to fold unless they get government support to see them through the worst season on record, according to the Western Chauffeur Drive Association Ireland (WCDAI).

The industry’s largest representative body, says that otherwise viable businesses will become insolvent unless the government makes a COVID-19 support fund available for the industry. 

The industry is almost entirely dependent on the high-end inbound travel market, which has been entirely wiped out for 2020.  With operators having significant borrowings due to the need to constantly upgrade their executive class fleets, many businesses will become insolvent the moment the bank moratorium on loans is lifted.  A survey by the industry has already found a reduction in revenue of up to 98% on last year, Chairman Paul Thompson confirmed. 

“We were still hopeful a month or so ago that the season could be somehow rescued but even if the quarantine on visitors is lifted after July 20, the season is now beyond recovery.  

“Hotels, bars and restaurants are able to benefit from staycations so there is some hope for them.  But for us, the year is a write off as we are entirely dependent on the inbound tourist market.  The reality is that pretty much every operator has significant borrowings as you always have to update your fleet in this industry and they simply won’t be able to meet repayments once the bank moratorium is lifted.”

Secretary Fergal Jordan said that every business was viable at the start of the year and if they can be supported through to year end, they will rebuild again from there. “The July stimulus package is much anticipated but unless there’s a fund in this for our industry, it will be no good to us. If this was any other sector, there would be a rescue package but because of our size, we are being overlooked,” he said. 

“We have viable businesses and provide a very important service. We spend more time with the country’s highest yielding visitors than any other service provider. Our drivers are brilliant ambassadors, often developing close relationships with customers that ensures repeat business for Ireland.  Not a huge amount is needed to keep the industry afloat for this year but if we don’t get that support, businesses will go to the wall, hundreds of jobs will be permanently lost and this is going to put huge pressure on families.”

The association represents members from 13 counties from the west coast to Dublin which is typically busiest from April to the early autumn.  The WCDAI surveyed its 37 members, who employ 300, and found that earnings this year dropped by as much as 98% for some operators, when compared to the same period last year. 

Operators’ clientele ranges from A-list celebrities to golf-tours and foreign dignitaries.   The sector in general contributes €200m to the Irish economy each year.