The Vintners’ Federation of Ireland has slammed the proposed five per cent ESB rise estimated to cost businesses an extra €100 per month from next October, describing it as yet another hammer blow to small businesses.
According to the CEO of the Vintners’ Federation of Ireland, Padraig Cribben, this latest announcement and proposed energy levy could not have come at a worse time.
“Publicans are being hit from all angles by this Government and at a time when the live register is grabbing headlines for all the wrong reasons, this measure will only make things worse for employers and businesses around the country.
“We have long been advocates of a reduction in rates to help our members but instead of a reduction in rates what we get is a public service levy that will add an estimated five per cent to electricity prices. This levy and rise in energy costs will put a huge strain on our members who are already overstretched.
“This is not just empty rhetoric. Everything we have been saying over the past few months about overregulation squeezing the life out of our trade and small businesses the length and breadth of Ireland has been backed up by this. Over the past two years our members have been doing everything possible to maximise the reduction in energy usage. Their reward is a slap in the face and a five per cent increase in unit cost.
“As recently as last month, the Drinks Industry Group of Ireland mid-year report outlined that in the first five months of 2010 pub sales decreased by 14.6 per cent and the trade is suffering. The decline of the industry has affected the live register to the tune of 20,000 people in the last few years. The pub industry blatantly needs support, not extra charges.”
He added that it was time for the Government to take a hard look at the impact new measures have on the pub industry and small and medium businesses.
“We are haemorrhaging jobs as our pubs close or reduce hours. A total of 1,500 pubs have closed in the last three years, that’s one pub closing every day in Ireland with subsequent job losses. This latest measure announced today will only exacerbate this problem and we are in for a very long, painful, and cold winter.”
