Majority of closed pubs will go bust by 2021 if restrictions continue - survey

Support, not sympathy urgently needed for sector, says Vintners’ Federation of Ireland

File photo. Photograph: Dara MacDonaill

Two thirds of Ireland’s pubs will be out of business by the new year if current conditions persist, according to an umbrella group representing the sector.

The Vintners' Federation of Ireland (VFI) has said the vast majority of publicans are losing faith in how the Government is handling the pandemic.

It said “support, not sympathy’” is urgently needed as it pointed to a survey of publicans whose premises are still closed which showed that more than 60 per cent are feeling “extremely stressed” and gloomy about the future.

The survey suggests that 65 per cent of the pubs still unable to open believe they will be out of business by January 2021 based on current conditions while 96 per cent say the Government does not have a plan to allow pubs which do not serve food reopen while the crisis persists.

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Some 92 per cent of publicans think pubs have been scapegoated and 91 per cent are unsatisfied with the Government’s handling of the Covid-19 crisis.

The survey suggests that almost half of the pubs still closed have accrued debts of €16,000 or more since the lockdown began in March, while just under one in five have accumulated debts of at least €30,000 while they have been closed.

The survey was carried out ahead of a Government decision on whether the 3,500 pubs closed across the country can reopen on August 31st, with the views of 1,539 publicans canvassed.

In light of a spike in Covid-19 cases in many parts of the country in recent weeks most publicans are gloomy about the prospects for reopening and are of the view it will be delayed for a third time in the days ahead.

The VFI said the focus had shifted to what plan the Government will bring forward for pubs who will have to remain closed.

In a statement, it said a further three-week delay in reopening would mean pubs will have been closed for six months with about 25,000 people out of work as a result.

The survey suggested that 63 per cent of publicans are suffering from extreme stress with four out of 10 worried about being able to put food on the table and 57 per cent worried about the future of their employees. Only one in 25 said they could describe themselves as content.

“This survey highlights how much the pubs that are still closed feel abandoned by the Government,” said Pádraig Cribben, chief executive of the VFI. He added that there was “little expectation that the Government will allow these pubs to reopen next week. So the question is what are they going to do for these pubs who are being deprived from opening their doors by Government order.”

Conor Pope

Conor Pope

Conor Pope is Consumer Affairs Correspondent, Pricewatch Editor