A RESTAURANT is closing every day in the State and eight out of 10 are running at a loss, the Restaurant Association of Ireland will tell the Government today.

The figures are contained in its pre-budget submission which calls for measures to support the sector. They include changes to VAT and excise rates, the removal of the €10 tourist tax, a reduction in local authority rates and more incentives for investment.

The first six months of this year saw a 20 per cent decline in overseas visitors, and restaurants have also been affected by a drop in domestic trade as consumers reduce spending due to the downturn.

The association’s submission highlights the fact that Irish restaurateurs pay the second highest wage rates in Europe, and the highest excise duty on wines.

Restaurateurs say their food cost inputs are 24 per cent above the European average.

Proposed budget measures include the abolition of premium payments for working on Sundays. The association says this is forcing restaurants to close on Sundays because they would operate at a loss if they had to pay the increased wages.

Restaurateurs are also seeking an extension of the Government’s work-placement scheme to include businesses with fewer than 10 employees.

The association’s chief executive, Adrian Cummins, said the Government had done nothing in the past year to help the sector. This inaction was putting 21,000 restaurant jobs at risk and could cause the loss of €700 million to the economy. He called for a series of “urgent actions” to rescue the sector.

The Irish restaurant industry employs 64,000 people and contributes some €2 billion to the Irish economy each year.