Irish restaurant leaders call for measures to protect businesses from detrimental Brexit effects

The sector employs 171,700 people and contributes €2billion to the economy each year.

Brexit represents the most dangerous threat to the Irish restaurant industry, it was warned yesterday.

Industry leaders are calling for the 9% hospitality VAT to be retained until 2022 amid the uncertainty.

Identifying Britain’s EU withdrawal as the most potent danger facing the industry, Restaurants Association of Ireland chief Adrian Cummins said: “It is our most immediate threat in 2018 and will follow into next year.

“We must retain measures such as the 9% VAT rate to allow businesses to remain competitive while we continue to measure the potential damage of Brexit.

“When the economy went into decline, restaurants endured falling numbers of diners, rising prices and great financial uncertainty, with many having to close.

“Money generated by this reduced VAT rate, however, has kick-started fortunes. Employment in the restaurant and tourism sector increased by approximately 54,400 direct jobs with an additional 25,024 indirect jobs which gives a total increase of 79,424. This will continue if VAT at 9% remains.

“Restaurateurs are entrepreneurs. When a restaurant opens or expands, they will create jobs and generate business.

“Restaurants all over Ireland are relying on the VAT to remain at 9% for the survival of their business.”

The rate among many of Ireland’s EU counterparts is 10% or lower and Mr Cummins warned it is critical the reduced VAT is kept in place to maintain a competitive edge on rivals.

The sector employs 171,700 people and contributes €2billion to the economy each year.

Yesterday the RAI launched its Pre-Budget Submission, which included a plan which it believes will sustain jobs, maintain competitiveness and deliver certainty for the sector.

The RAI said restaurants will suffer post-Brexit if UK visitors continue to decline due to sterling weakness.

Businesses in the border counties are particularly vulnerable as less people will come from the North and customers from the South will have a financial incentive to go North.

If a hard Brexit transpires, indigenous Irish exporters will come under significant pressure with farming and agri-food businesses most likely hit.

The RAI is also calling for a number of other key points in its pre-budget plans including for the excise duty to be reduced by 15%, for wage increases to be minimised and for policies to tackle the chronic chef shortage in Ireland to be introduced.

Read more news of Dublin on our site.
If you notice an error, highlight the text you want and press Ctrl + Enter to report it to the editor
1 view in january
I recommend
No recommendations yet


Post your comment to communicate and discuss this article.

Victor Marin Del Sol's children spent a year in Irish schools. A Dublin-based Spanish waiter killed his partner and two Irish-born children in a murder-suicide in Poland just days before Christmas. Two Dublin schools have expressed their shock at the news. Victor Marin Del Sol's three children spent a year in schools in Rathfarnham, before they moved to Poland with their mother. The Irish Independent reports that Marin Del Sol flew to Poland to spend time...
New laws on hold in Dáil to focus on emergency legislation. Ministers will today agree to essentially freeze work on all new laws as they bid to get ahead of a chaotic no-deal Brexit. Just six pieces of non-Brexit related legislation have made it to the Government's priority list for the new term, the Irish Independent understands. This is an acknowledgement that British Prime Minister Theresa May faces a crushing defeat when the Withdrawal Agreement is pu...
The incident happened on Ballinteer Avenue in south Dublin at around 6pm on Sunday evening. Four people were arrested after a vehicle crashed into a wall after failing to stop for gardai.The incident happened on Ballinteer Avenue in south Dublin at around 6pm on Sunday evening. Three of the arrested men are in their 20s and were held in Dunrdrum garda station while a fourth (juvenile) was held in Dun Laoghaire.Three of the men are set to appear in court th...
Too early to say when hotel on Leitrim-Roscommon border can open, says Minister. The Minister for Justice has said he is “deeply concerned” following a fire at a former hotel on the Leitrim/Roscommon border that was to open as a centre for asylum seekers. The Shannon Key West hotel in Rooskey on the Leitrim/Roscommon border had been due to open shortly as a direct-provision accommodation centre for 80 people. However, on Thursday night, the emergency servi...
Life lessons from a man who’s lived a lot of life – without ever dipping into psychobabble. We enter in masses beneath a mighty arch and encounter a stage emblazoned with the words “Leading you to Greatness”. This can mean one of only two things. A man in a uniform is about to shout about his plans for achieving Lebensraum or we’re at one of those motivational events aimed at making miserable people believe they can swim the Atlantic. The presence of Boris...
REPRO FREE NO REPRO FEE Monday, 29th October 2018 Nina Kiernan (12) pictured at the display at Wild Lights in Dublin Zoo. Ireland’s award-winning night-time spectacular will open to the public this Thursday, 1st November and run until Sunday 6th, January from 5pm – 9pm. The event, which sold out in 2017, returns with a brand-new theme, “Ocean of Light” and entirely new cast of silk lanterns. Tickets are available exclusively at -ENDS- For mor...
The Irish Nurses and Midwives Organisation claims 2018 was the worst year on record for hospital overcrowding. New analysis from the organisation said 108,227 patients went without hospital beds last year - a record high. The figures are a 9% increase on 2017, which was itself a record high. This is nearly double the number in 2006 (55,720), when INMO records began. The months with the highest figures last year were January (12,201), February (10,772) and...
Iarnród Éireann is launching its first external recruitment process for train drivers.   The company is looking for 100 drivers over four years and says it is very keen to recruit women drivers.   There are only four female train drivers out of a current total of 500 in Iarnród Éireann. Drivers' salaries start at €45,000, going up to €57,000 on a ten-year scale.   It says candidates must meet European Train Driver Licensing requirements, with a minimum of...
A new law on domestic violence comes into effect today. Announcing the commencement of the Domestic Violence Act, Minister for Justice and Equality Charlie Flanagan said it improves the protections available to victims of domestic violence under both civil and criminal law. One of the key new protections for victims under criminal law is the creation of a new offence of coercive control. This is psychological abuse in an intimate relationship that causes f...