600 rural pubs closed in past two years - VFI

Some 600 public houses outside Dublin have closed in the past two years, the Vintners Federation of Ireland (VFI) claimed today.

Speaking at the beginning of its annual conference in Sligo, VFI president Seamus O'Donoghue said rising business costs were the main reason why many publicans were unable to continue in business.

He said local authority charges in particular were making the licensed trade unprofitable for rural pubs.

"There are varying reasons for these closures - retirement, realising value of licence or property however for many small rural pubs they simply could not survive against these spiralling overheads," Mr O'Donoghue said.

The decline in regional tourism was also a factor in the closures, said Mr O'Donoghue, whose federation represents licensed traders outside Dublin.

Measures need to be taken at Government level to help the business community in rural areas compete, he added.

He referred to an Ibec study that said waste collection charges increased by 23.2 per cent; local authority charges by 20.5 per cent and water charges by 21 per cent.

"In particular, the costs of water, waste and environmental services are totally unjustified, unreal and grossly inflated. Annual water rates have continued to soar and are now unsustainable," said Mr O'Donoghue.

Ibec's environmental executive, Paul Sweetman, who will address delegates tomorrow, said that local authority charges are both inconsistent and inequitable.

"Many of the services local government provide are essential to the functioning of all sectors of society, including business. However, while all of society is benefiting from the services, it is only business who are picking up the bill," said Mr Sweetman.