By Evelyn Cullen
THE high excise duty is a major challenge facing pubs, with one local publican forecasting a turbulent time ahead for the industry unless measures are put in place for its survival in the coming budget.
Councillor Martin Harley was speaking in the wake of a new report by the Drinks Industry Group of Ireland (DIGI), which reveals 122 pubs in Donegal have closed their doors since 2005.
According to the report, there are 2,054 fewer pubs across the country than there were nine years ago.
Mr Harley, pictured below, is the joint owner of Cheers Bar in Ballybofey and is the Donegal spokesperson for the Vintners’ Federation of Ireland.
Speaking to the Donegal News, he said: “The main challenge pubs face is the high excise duty on beers and spirits, which is the second highest in Europe, second only to Finland. Alcoholic beverages are currently subject to 23% VAT.”
A reduction in this would make a “massive difference” said Cllr Harley, and he is hopeful that there will be measures for pubs in the coming budget.
A recent analysis by the Vintners’ Federation of Ireland shows that out of the average price of €5.77 for a pint of Guinness, as little as 17 cent goes to the publican after the bills are paid including suppliers, staff wages and vat.
Mr Harley said that as well as a reduction in the excise duty, there are other things that could be done in the Budget to ease costs, such as grants for solar panels which would reduce energy bills, some of which can already be accessed through the local enterprise office.
The energy bill for Cheers Bar is €800 a month.
Other reasons for the decline in pubs across the country include “a decrease in the consumption of alcohol, a change in how we socialise and a rise in low-alcohol beverages” according to Professor Tony Foley, author of the DIGI report.
Many pubs in Donegal are family-owned and the average age of publicans in Donegal is the 50s age bracket. They work on average 50 hours a week, most of them unsociable as well as during Christmas, Easter, St Patrick’s Day and Bank Holidays.
“It’s not easy,” said Cllr Harley.
But it’s not all doom and gloom and it’s often the family connections that make our local pubs great.
“The service, the friendliness and the welcoming atmosphere of pubs in Donegal are what sets us apart from other places” said Cllr Harley.
He also applauds the mental health benefits of a visit to your local while drinking sensibly.
“Pubs are social hubs where people can come to meet each other, chat and have the craic. Coming into the winter months now it’s important to get out and socialise, and with a wider variety of non-alcohol drinks available now, pubs aren’t just for the beer drinkers. You can drink a coffee, a zero beer or a mocktail” he said.
Mr Harley was also quick to point out the success of Donegal pubs in the last number of years, saying: “Don’t forget, we have many successful and award-winning pubs in Donegal.”
At the sixth Irish Hospitality Awards this year, Donegal tourism and hospitality businesses took home a string of prestigious titles with Farren’s Bar in Malin Head winning Best Bar in Ireland and the Silver Tassie Hotel winning Hotel of the Year.
Receive quality journalism wherever you are, on any device. Keep up to date from the comfort of your own home with a digital subscription.
Any time | Any place | Anywhere
SUBSCRIBE TO CURRENT EDITION TODAY
and get access to our archive editions dating back to 2007(CLICK ON THE TITLE BELOW TO SUBSCRIBE)