Around 1,000 individuals in the pub and restaurant industry set aside their routines for a day to march from the Peppercanister Church in Dublin to Dáil Éireann, via the Department of Finance. This display of unrest is quite unusual for this sector. Along their path, they made their grievances heard with loud whistle-blowing and raucous chants.
For the first time in her life, Darina Allen, the head of the Ballymaloe House business, joined a picket line. Her participation required an early start to catch the first train to Dublin. While her business was not struggling herself, she noted that five neighbouring restaurants in Midleton, Co Cork, had shuttered. Additionally, an acquaintance in the same line of work had not paid herself for a quarter of a year.
The hike in the VAT from 9 per cent to 13.5 per cent by the government last year, coupled with a lack of support in the budget except for a meagre €4,000 energy expenses grant, was the main cause for discontent amongst restaurateurs. Added to this burden were the escalating costs of energy, minimum wage, and raw materials, which were pushing small establishments to the brink. Allen questioned why the VAT was not reduced back to 9 per cent, as there was, in her opinion, sufficient money in the exchequer to facilitate such help. She lamented the potential loss of these businesses for rural communities, which they invigorate.
This protest was the result of a joint effort by the Restaurants Association of Ireland and the Vintners’ Federation of Ireland (VFI) in response to the closure of over 600 restaurants following the reinstatement of the 13.5 per cent VAT rate in the prior September.
CEO of VFI, Pat Crotty, stated that leading alcohol distributors now service 1,400 less pubs than they did three years prior. He recognised that pub-goers were becoming less frequent, but he has put the blame solely on the government for the past two years. The significant 36% increase in the minimum wage over the last four years combined with VAT, he exclaimed, is a burden businesses simply cannot afford. The government’s actions, according to him, are inducing business failures.
Joan McManus, who runs the King Sitric pub and restaurant in Howth, shares a similar sentiment. Her bi-weekly VAT bill averages around €47,000, leading customers to believe they are being misled, which she denies.
Likewise, Conor Maher of the Oarsman pub and restaurant in Carrick-on-Shannon pointed out that many businesses failing are those maintaining high standards. He commented that keeping a business afloat has become extremely challenging. “Something is broken,” he expressed.
Paul Lenehan, RAI president and co-owner of four businesses in Co Kildare, encouraged those at a meeting to take pride in their solidarity. Despite the substantial gathering, he stated, “None of us want to be here. We’ve run out of options. We desire to be in our distinct establishments, doing what we’re passionate about. We are the lifeblood of our communities.”
Eimear Killian, the manager of Builín Blasta Café and Bakery in Spiddal, Co Galway, finds the increase in the VAT rate exacerbates the challenge of treble food costs over the last two years. Even though the café is busy, she says, “We are not striking it rich. All we hope for is to afford our mortgages.”
Cathal Sheridan of Sheridan’s Bar and Restaurant gave a grim prognosis. He belongs to the seventh generation of his family running the establishment but does not foresee an eighth one continuing unless immediate changes occur. “We will have to go to the Costa del Sol to find an Irish pub,” he declared.