The Restaurants Association of Ireland (RAI) has launched its ten-point manifesto in advance of the general election, with the plan designed to address what it has described as the “broken financial model” facing restaurants, cafés and food-serving pubs in Ireland.
It follows last week’s rally organised by members of the hospitality sector and small business community which was attended by over 1,800 people and ahead of the imminent general election.
The rally to Leinster House saw business owners demand meaningful supports from the government, as a general election looms on the horizon. Those who took part held signs calling on the government to “wake up before its too late,” and they say that hospitality SMEs have been “left out in the cold.”
Participants and prominent spokespeople in the sector claim that the Budget ignored small businesses, whilst calling on the government to cut the VAT rate to 9 per cent – something industry representatives say will save jobs.
Adrian Cummins, CEO of the Restaurants Association of Ireland, says that an average of two restaurants, cafes, or other food-led businesses are closing every day in a crisis which has been exacerbated by a rise in VAT and people working from home.
Mr Cummins told last week’s rally that the Association’s 3,000 members will be keeping a close eye on the government support for the 20,000 businesses and 270,000 livelihoods in the sector in the political parties’ respective manifestos.
🚨Restaurants Association of Ireland launches 10-point manifesto🚨
— Restaurants Association of Ireland (@RAI_ie) October 21, 2024
Following last week's rally by the hospitality sector and small business community which was attended by over 1,800 people and in advance of an imminent general election, the RAI has launched a manifesto to fix… pic.twitter.com/xxbqdSqo5Z
More than 600 restaurants have closed across the country in the last year, with owners of restaurants, cafes and pubs taking their concerns to the Dail. Organisers of last Tuesday’s protest say 612 hospitality closures have taken place in total since the VAT rate was hiked.
The RAI has also requested an urgent meeting with party leaders Taoiseach Simon Harris and Tánaiste Micheál Martin, Minister for Finance Jack Chambers and Minister for Enterprise Peter Burke, to discuss a series of policies to avert more closures.
The manifesto sets of a range of demands, including a decoupling of the VAT rate between food and accommodation, in recognition of the different business models of small pubs and restaurants versus large hotels.
In addition, the RAI says that a separation of VAT on food and accommodation should result in a reduced VAT rate for food services while keeping the accommodation rate at its current 13.5%.
The association is also calling for a reduction of the standard VAT rate, from 23% to 21%, as well as cuts to excise duty on alcohol, which remains the second highest in the EU.
Along with financial reforms, the RAI has urged for greater support to be pri
In addition to financial reforms, the RAI has demanded government support for hospitality apprenticeships, and for the appointment of SME representation to key economic bodies like the Labour Employer Economic Forum and the Low Pay Commission.
Mr Cummins said: “Without urgent and meaningful intervention, over 1,000 businesses will close their doors over the next 12 months. The RAI has today requested meetings with Taoiseach Simon Harris, Tánaiste Micheál Martin, Minister for Finance Jack Chambers and Minister for Enterprise Peter Burke, so that we can work together, collaboratively, towards a more sustainable future for the industry.”
It is also pushing for the appointment of a dedicated Minister for Tourism and Hospitality within the Department of Enterprise in the next government, and the development of a five-year strategy for food-and-drink tourism in Ireland.
“Our pre-Budget focus was on restoring the 9% VAT rate on food, which would have been worth €37,000 to the average restaurant,” said Cummins, “But now we are asking the government to meet with us, with all options on the table.”
“We are open to any solution or combination of policies that will secure a viable future for the over 20,000 businesses and 270,000 livelihoods supported by our industry.”