The Mayo branch of the Irish Hotels Federation has called on Irish banks to deliver on their obligations under the Government recapitalisation scheme and immediately increase the flow of lending to small and medium enterprises. John Raftery, chairman, Mayo branch, IHF highlighted the lack of funding and stated that action taken by the Government has so far failed to deliver for the hotel sector any significant increase in credit facilities.
Figures just issued by the Central Bank reveal that the total bank debt to the hotel and restaurant sector at the end of 2008 was 2.9 per cent less than at the end of 2007. This figure confirms the feedback from IHF members throughout the country who are experiencing the potentially disastrous situation of additional working capital not being available.
According to Mr Raftery: “Our sector is not alone in this regard. Other sectors are experiencing the same constricted pipeline of finance. It is unacceptable that the banking sector, which has been shored up by the Government and tax payers, is not providing additional assistances to businesses which are essential to the economy but are at present struggling to survive.”
The IHF also has serious concerns with the fact that its members are being forced to call time on hotel services on Sundays given the exorbitant hourly rates imposed under the Joint Labour Committee system. John Raftery, chairman Mayo branch IHF, states that, given the major economic challenges facing the hotel sector, it is essential to control wage costs in an effort to improve competitiveness within the industry and safeguard existing jobs.
