Vintners claim 1,500 pubs have closed in seven years

SOME 1,500 pubs have closed and thousands of jobs have been lost since 2001, two vintners' organisations claimed yesterday.

The figures are based on an analysis of accounts held by the major drinks manufacturers, which supply pubs across the country.

They show that the number of on-trade accounts has fallen from 11,000 in 2001 to 9,500 now.

The Licensed Vintners' Association (LVA) and the Vintners' Federation of Ireland (VFI) also said that alcohol consumption was down by 7 per cent so far this year, as more people opted to drink at home.

Measures such as the smoking ban and drink-driving laws have been blamed in the past for reducing pub trade.

Now the publicans are blaming taxation and regulation of the sector over the past decade for the decline in business.

They accepted that some bar owners had sold their premises for redevelopment during the building boom, but said this would account for only a handful of the 1,500 closures.

In a joint statement the two vintners' associations called on the Government to reassess the cumulative impact of such policy changes. They also urged the Government not to increase further alcohol taxation in the budget.

"The old reliables are no longer reliable.

"This industry is facing major challenges and it will struggle in particular if the current high level of alcohol tax is increased again in the forthcoming budget," the joint statement said.

Donal O'Keeffe of the LVA and Pádraig Cribbin of the VFI said the pressure on pubs was "unprecedented" and had put the sector at a major disadvantage.

"Ireland has the most heavily taxed alcohol market in Europe. Nearly €1 in every €3 spent on alcohol goes to the Government in tax," they said.

Some 30 per cent of the price of a pint and 33 per cent of the price of a measure of whiskey goes towards Government taxes.

Ireland's 21 per cent VAT rate on alcohol products is higher than the rate applying to EU countries including Austria, France, Greece, Italy, Luxembourg, the Netherlands, Spain and the UK.

The publicans said they were concerned that the sector would not be able to take any further tax increases.

"Increases in excise will put even further pressure on the pub trade.

"It will be inefficient in terms of tax yield and it will cost jobs and drive inflation up."

The statement said that pubs account for tens of thousands of jobs, play a key role in our tourism industry and sustain rural communities.

"However, the strength of the sector is now under more pressure than ever before and jobs are being lost and community resources are closing," it said.