Irish Pub Closures: Cork & Limerick Hit Hard
Pub Closures Threaten Irish Communities: Report Calls for Urgent Excise Cut
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Dublin, Ireland – A stark warning has been issued regarding the accelerating decline of Ireland’s traditional pubs, with a new report highlighting the devastating impact on communities and calling for immediate government intervention. The report, authored by economist Dr. Anthony Foley and commissioned by the Drinks Industry Group of Ireland (DIGI),argues that a 10% cut in excise duty on alcohol could provide a vital lifeline to the sector,which has seen a quarter of its premises vanish over the past two decades.
Communities Reshaped as Pubs Disappear
Counties like Limerick have been particularly hard hit, losing over a third of their pubs. In seven other counties, more than 30% of licensed premises have closed. This trend, the report states, has profoundly reshaped communities and fostered social disconnection.Dr. Foley emphasized the potential for immediate relief, stating, “The Government could improve commercial viability overnight by cutting excise by 10%.” He further argued that with Irish alcohol consumption now at average EU levels and projected to continue falling, the current excise rates – the second-highest in Europe, compounded by a 23% VAT rate - are no longer justifiable. ”The time for the Government to act is now before it is indeed too late,” he urged.
A Multifaceted crisis Driving Closures
the report identifies a complex web of factors contributing to pub closures. Low commercial returns are a significant deterrent,discouraging younger generations from taking over family businesses. This is exacerbated by a range of issues including low business volumes, weak commercial sustainability, and the lack of succession planning for retiring publicans.
Further challenges include evolving regulatory landscapes, such as stricter drink-driving laws and enforcement, coupled with inadequate public transport, particularly in rural areas. Changes in population distribution,shifting consumer preferences and expectations,and transformations within the alcohol market also play a role. The report also points to the asset value of pub licenses being leveraged to facilitate the expansion of off-licences in supermarkets, convenience stores, discounters, and petrol stations.
beyond economic considerations, the DIGI stresses the cultural and social significance of Irish pubs. Described as “iconic symbols of Irish culture,” they attract thousands of tourists annually, considerably boosting the tourism and hospitality sector. “Allowing their continuing decline would mean losing one of Ireland’s most valuable assets,” the DIGI stated.The report’s findings are corroborated by recent data from the Central Statistics Office (CSO), which shows bars experiencing a 6.8% drop in sales volumes over the past year – the steepest annual decline of any industry sector.
Excise Duty: A Key Target for Government Action
The DIGI report places excise duty squarely in the government’s sights as it prepares the next budget. the report highlights the considerable tax burden imposed on alcoholic beverages, noting that the state collects an average of €1.67 from a pint of stout and €17.01 from a bottle of off-licence whiskey.
Dr. Foley provided stark international comparisons: “In Ireland,a 70cl bottle of Irish whiskey sold at an off-licence is levied with an additional excise duty of almost €12. In an Italian off-licence, that same bottle of Irish whiskey has an excise duty of just €2.90.” He added, “For a French visitor to Ireland, a standard glass of wine which would attract an excise duty in France of just 1 cent is levied with an additional 80 cents excise duty here, while 15 EU countries do not charge any excise tax on wine at all.”
“A reduction in the excise rate, as proposed by DIGI, would have the effect of promptly boosting the viability of the Irish pub, particularly in more remote, rural areas where employers are ofen hard to find,” Dr. foley concluded.