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LAST UPDATE | 28 Aug 2020
THE GOVERNMENT HAS announced a €16 million support package for the pubs around the country following the confirmation the they would not be reopening.
Since 29 June, pubs that serve food have been permitted to re-open under strict guidelines, but other pubs have had to remain shut.
They were initially slated to reopen on 10 August but that was pushed back until 31 August. It was confirmed last night that this date was to be pushed back again.
Following this decision, Tánaiste Leo Varadkar announced this evening after a Cabinet meeting that a support package for publicans was to be introduced.
Exact details of the package are yet to be revealed but the Varadkar said they would top-up the restart grant for affected pubs by 40%, waive licence fees and court fees for pubs that remain closed as part of the package.
Varadkar added that the National Public Health Emergency Team (NPHET) was working with the Government on protocols that could allow pubs to re-open in future, if the spread of Covid-19 becomes more limited.
Minister for Public Expenditure and Reform Michael McGrath said the package would be worth up to €4,000 for licence holders, and confirmed it would also apply to restaurants, hotels and bars that are already open.
“We all know what they really want is to be allowed to re-open, and that is an issue that the Government will engage with NPHET on,” he said.
Pubs ‘wither on the vine’
Responding to the announcement today, the Licensed Vintners Association (LVA) and the Vintners Federation of Ireland (VFI) said: “We asked for support, not sympathy and the Government has given us crumbs.”
“Pubs that are still closed will receive the same level of restart grant as provided to businesses in Kildare, some of whom remained open.
Kildare businesses received a 40% grant for four weeks closure but wet pubs, who will be kept closed for a minimum of six months, will receive the same 40% grant.
“This is paltry gesture which shows how little regard this Government has for the troubles of the pub industry,” said Donall O’Keeffe, Chief Executive of the LVA. “It is disappointing in the extreme.”
Padraig Cribben, CEO of VFI said that the package was “woefully inadequate”.
Our members are facing into an autumn of uncertainty with no guidance from Government about how and when they will be allowed reopen.
Publicans are now in complete despair. They can’t see any light at the end of the tunnel and these supports will do nothing to ease their fears for the future.
“The Government is allowing thousands of pubs wither on the vine and the damage being done to local communities across the country is incalculable,” he said.
The Licensed Vintners Association (LVA) and the Vintners Federation of Ireland (VFI) have previously stated that pubs were being treated differently to other sectors of the economy and that funding was needed if they were to remain closed.
Publicans had called for support including direct financial aid, the maintenance of the Pandemic Unemployment Payment and temporary wage subsidy at current rates for all closed pubs until their reopening and an extension of current licences until September next year.
Speaking earlier this month, Varadkar had said he hoped to announced a support package for pubs and nightclubs if the date for reopening was pushed back further.
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Sounds good but how many are just annual overdraft renewals?
Yes…you’re right…overdraft renewals and in a lot of cases overdrafts being transformed into loans. Banks are still keeping the screws on where small shops and service sector business is concerned.
I think the important question is “how sustainable is the business?” It’s all about context. Simply referring to SMEs as some sort of a business description is nonsensical: SMEs range from a one-horse shop selling Hunter wellies in Finglas, to a EUR 50m turnover company with 249 employees supplying medical medical devices to Boston Scientific. One’s a really good bet, the other better be really good…
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I sincerely doubt they’re approving that much. They told us we could have some investment money if we already had the money to begin with. They wouldn’t accept property as collateral :)
Good to hear that those of you signing up to Bank Of Ireland online banking be very careful .We are long standing Bank of Ireland online customers last wednesday our on line banking was hacked .We are still waiting for bank of Ireland to respond to this urgent matter.We are a small company.
Their loan restructures also involve drawing down a new loan and a positive lending statistic for them.
Also , we recently applied for an increase in our business overdraft limit with BOI as currently it is only 30% of monthly turnover and in our contracting business is limiting any chance of real growth. No problem we were told!
Just secure the increased limit with an equivalent amount locked into a holding account. When I made the point that we didnt have those funds I was offered a seperate business loan to draw down the security for the overdraft.
BOI would get positive lending statistics for the overdraft increase and for the loan to secure that overdraft increase. They would also get the interest on the overdraft as well as the loan. I declined naturally and have to shelve plans to increase sales. The work is available but we dont have the credit to do it… great little country to di business in.
From first hand experience with bank of Ireland they have gone completely impersonal so it’s easier to say no. They are doing there damnedest to find reasons to say no
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