2 in 5 publicans have reduced staff in Q1 of 2013

“If a ban on alcohol sponsorship is to be brought in, the Irish Government will have to factor into this the impact that a loss of €3.5 million per annum will have on grass roots organisations and the societal impact of same.” – Gerry Rafter.

Some 86% of publicans have expressed dissatisfaction with the level of support from Government for Irish business and some 39% have made reductions in staffing levels in the first three months of this year in attempting to stay open, according to an independent survey carried out by the Federation ahead of today’s conference.

Print

Print

Off-trade

Over 350 publicans from all over Ireland are in the Knightsbrook Hotel, Trim, County Meath, today for the 40th VFI Annual Conference and the VFI has released the findings of its most recent research.

The results echo similar findings in 2011 and 2012 and detail more pub closures and redundancies; however the survey has also outlined the deep dissatisfaction amongst the 4,200 VFI members with the Government.

It is clear that members are doing all they can to stay open but feel neglected by the present administration in their fight.
Recent figures released by Revenue outlined that a further 150 pubs closed their doors last year and based on this independent survey and the trends outlined in same, the VFI believes that 2013 will see a further decline. 

However what the survey also showed is that publicans are still supporting local sports teams and outdoor events to the best of their abilities and it gives an indication of the impact that a ban on alcohol sponsorship of sports and outdoor events would have on grass roots sport and on local events and festivals.

49% of VFI members sponsor local sports teams with an average investment of €1,726 per member in those local activities annually. The overall average spend of VFI members is thus put at €3.5m (€3,425,247), a significant investment in local projects and activities.

However this support and investment from local publicans has diminished somewhat with 29% of pubs withdrawing from recent arrangements, mostly due to financial constraints. This is a further sign of the difficulties publicans are facing and the knock-on effect on local communities.

Some of the key findings of the independent wide-ranging Ignite Market Research survey which was conducted this month include:

Government Support
•    65% of publicans are very dissatisfied with the level of support from Government for Irish business, with 21% being somewhat dissatisfied

•    12% were neither satisfied nor dissatisfied

•    Only 2% were either very satisfied or somewhat satisfied
 
Employment Levels
•    39% of VFI members have made reductions in staffing levels in the first three months of 2013

•    Only 8% have increased staffing levels in the same period

•    43% have reduced the working hours of existing staff
 
Economic Overview (Jan-Mar 2013)
•    For 62% of VFI members business has been slow and turnover down

•    Only 9% have recorded an increase in business/turnover

•    When compared with the first three months in 2012, 36% say that business is down between 1-10%

•    15% have recorded an increase in turnover when compared with first three months of 2012
 
Local Sponsorship and Patronage
•    49% of VFI members are currently supporting a local sports club or outdoor event

•    29% have had to withdraw their support with 46% saying they couldn’t afford it anymore

•    VFI members involved in supporting local teams and events do so to the tune of €1,726 per publican

•    Annual support by VFI members towards local sports teams and events is just short of €3.5m

•    73% feel that a ban on alcohol sponsorship would have a detrimental effect on local sports clubs and events as there is a heavy reliance on publican support

Minimum Unit Pricing
•    18% of publicans believe that the introduction or not of a Minimum Unit Price for alcohol will be the difference between staying open and closing

•    71% of publicans surveyed believe that a MUP for alcohol would be a positive first step for the pub trade but only part of the solution.

 
VFI President Gerry Rafter commented, “Unfortunately we find ourselves in a very similar situation to this time 12 months ago with further pub closures and job losses casting a long shadow over our AGM. The Government made a lot of noise in their programme for Government about helping Irish business but as yet we have seen very little action.

“While we wait for the Government to realise the danger that over 50,000 jobs are in, I think it’s time that we started to shout about the positive contribution the Irish pub has made and continues to make to Irish society and in particular rural communities.

“We all know the positive impact in terms of jobs, facilities and offering a social hub and outlet. But what this independent research now also shows is the impact that the Irish publican has on local sports clubs and outdoor events.

“If a ban on alcohol sponsorship is to be brought in, the Irish Government will have to factor into this the impact that a loss of €3.5 million per annum will have on grass roots organisations and the societal impact of same.”

Related Articles

Roe & Co unveils Roe & Co Flor Single Grain Irish Whiskey →

Madrí Excepcional Hosts LVA delegation at La Sagra Brewery →

Powerscourt Distillery triumphs with double gold and gold wins at SFWSC →

The Busker debuts small batch Single Pot Still Whiskey →