Limerick publicans fearing VAT rise

THE IDEA of going out for an impromptu drink or meal in Limerick is in danger of becoming “a thing of the past”, it’s been warned.

Robert Byrne, who runs Bobby Byrne’s gastropub at O’Connell Avenue in the city, was speaking with the hospitality VAT rate expected to rise next month.

The tax paid on items in the hospitality sector currently stands at nine per cent.

But it's expected to rise by 4.5% from the start of September.

And Mr Byrne, who is the local representative of the Vintners Federation of Ireland, a trade group for publicans, says this will make things even harder for those who work in the industry.

“Unfortunately, the way our industry is going is that the casual meal or the casual drink will become a thing of the past because people won't be able to afford to do it.

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“It'll be more occasion-driven - people will only come in for occasions and events,” he said.

He pointed out Ireland also has one of the highest excise duties around and believes government has “lost interest” in the small business “which has been the backbone of this country for years”.

“They’ve let costs spiral out of control completely. It’s at a stage now where it’s nearly prohibitive to be employed in a privately-owned business in Ireland as the costs are so high,” Mr Byrne said.

“All government seems to be interested in is the multi-nationals or the big pharma corporations employing 1,000 or 2,000 people. But these are the ones which can let 800 t0 1,000 people go,” he pointed out.

Also on the cards for an increase is the national minimum wage, which the Low Pay Commission recommends next year should be €12.70 per hour.

At the start of the year, it was up from €10.30 to €11.50.

Referring to the rise from €10.30 to potentially €12.70, Mr Byrne said: “That’s a 20% increase. How do we reflect that in our pricing? What do we do to combat this?”

“We would love to charge less because that would bring in more business. But at the moment, we can't,” he concluded.