Survey highlights rural pubs' struggle

Many pubs in rural areas are struggling to survive, while there are not enough drinking outlets in urban areas due to laws based…

Many pubs in rural areas are struggling to survive, while there are not enough drinking outlets in urban areas due to laws based on turn-of-the-century population levels, a study into the drinks industry has shown.

The study, for the Vintners Federation of Ireland, says restrictive legislation has not allowed the geographic spread of public houses to reflect a major shift in population trends since the start of the century.

The VFI commissioned the re port as part of its submission to the Competition Authority's examination of the industry. The 100-page document, by Corporate Efficiency Analysis, a Galway-based economic consultancy, says there is a need for a change in legislation which would allow more pubs to develop in some urban areas, such as Galway, where there has been a significant increase in population.

In Dublin, 12 per cent of pubs have a turnover of under £150,000, while 15 per cent have a turnover exceeding £1 million. Outside Dublin, only 0.5 per cent have a turnover of more than £1 million, while 76.5 per cent have a turnover of under £150,000. According to the report, the drinking-age population is anticipated to increase over the next 20 years, while the imbalance in the location of pubs is set to continue unless there is a change in legislation.

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The current licensing regulations stem from the Licensing (Ireland) Act 1902 and subsequent legislation.

The broad intention of the 1902 Act, originally intended to be in force for five years, was to control the absolute number of licensed premises in the State, while gradually decreasing the number in rural areas," says the report.