WITH tourist numbers down across West Cork this summer, several councillors have lent their support to the campaign calling on the government to reduce the hospitality vat rate from 13.5% to 9%.
At a recent meeting of Cork County Council, Cllr Marie O’Sullivan (FG) warned that more small hospitality businesses will close if the rate isn’t reduced.
Several councillors also gave anecdotal evidence of tourist numbers being significantly down this summer in West Cork.
Cllr O’Sullivan, who runs her own restaurant in Kinsale, said the seriousness of this has escalated over the past few months.
‘We’ve seen many closures, especially in the hospitality sector, and businesses are fire-fighting on many sides. The cost of doing business has increased substantially and these businesses are badly in need of oxygen,’ said Cllr O’Sullivan.
‘There has been a significant fall in tourist numbers this year across the sector, with 30% [fall] reported in some areas. This is a significant number for a lot of small businesses which depend on this extra money to see them through to the winter,’ she added.
Cllr O’Sullivan fears that a lot of small businesses, especially in hospitality, will move into the mobile sector such as food trucks, which in turn will lead to empty units on the streets of the towns and villages. Cllr Caroline Cronin (FG), who runs a well-known fish and chip food trailer, Sean Og’s, at the community hall in Ballydehob, said many of her friends who are also in business, are struggling because it’s been a ‘very quiet’ season in West Cork.
Speaking to The Southern Star, Cllr Cronin said that West Cork’s cafés, bars and restaurants should be brimming with people for the summer season.
‘Yet with the weather against us and the price of both food and beverages, it’s no wonder proprietors are feeling lost,’ she said.
‘West Cork should be making the most of its fantastic standard of food, but we are not seeing the footfall and it’s only in the past week that we have seen an increase in visitors – making it a very short season.’
Top West Cork restaurateurs and café owners launched a national campaign in April called ‘Vat9.Now’ in a bid to get the lower 9% vat rate introduced.
At a recent Council meeting, Cllr Noel O’Donovan (FG) said reducing the vat is the only sustainable way of supporting businesses affected by falling tourist numbers.
Cllr Jack White (FG) said an additional problem is the inflexibility of the Revenue Commissioners who are sending out letters to small struggling firms, adding pressure to them.
‘Sometimes when times are tight, businesses dip into the money reserved for Revenue in order to pay wages and other costs, he said, adding: ‘Revenue needs to be flexible. I would ask the Department of Finance to get direction from Revenue and bring in an approach of working together. We need SMEs operating and continuing to employ people.’
Publican Cllr John Collins (Ind Ire) said many business owners in Bandon are under pressure.
‘I hope the Minister will listen to people like Cllr O’Sullivan who are speaking from the ground,’ he said.
Cllr Alan Coleman (Ind) said we need to look again at how Ireland supports small businesses.
