The government’s €250m support scheme is not sufficient to cover the needs of SMEs, particularly in the hospitality industry, Paul Lenehan, Presdients of the Restaurants’ Association, told the RAI AGM at Carton House
The allocation of the €10 m fund mainly favoured tourism attractions and activities businesses, rather than restaurants, cafes, and pubs that have also been affected by reduced tourism.
Energy prices remain high, and energy supports for the next year were not introduced.
Insurance costs and staffing shortages continue to be ongoing challenges in the industry.
“Another issue I’m focused on along with the RAI team at the moment is tourism figures and the CSO’s reporting of them. The Government tells us everything is perfect – tourism and hospitality has had a full recovery post-pandemic and there is no need for them to support or promote us anymore. But, the CSO’s own figures show that the numbers of foreign overseas visitors are WAY DOWN this year compared to pre-pandemic. So, either the CSO’s figures are wrong or the Government’s illusion that tourism and hospitality are flying is wrong. We’re going to get to the bottom of this, probably by spearheading an Oireachtas committee meeting in the coming months.”
He said that while the 9pc VAT rate was extended for six months, despite initial reluctance from politicians and officials, its removal was a blow to the industry.
The TBESS support scheme was enhanced and expanded to include a kerosene-specific scheme.
Me Lenehan emphasised the importance of upskilling and staff well-being, as they are key to the success of the industry.
“With all of the difficulties and challenges, setbacks and heartbreaks we have faced in hospitality over the past few years, we can easily lose sight of why we do what we do, and why we love what we do. Our industry is full of small to medium size restaurants, like my own, all family run, these business rely on family and the wider family, that is their staff. Our staff are key to everything we do. Today we spoke about the importance of upskilling and giving our staff a sense of belonging, this is now more important than ever before. We can talk Vat, we can talk warehoused vat, we can talk pensions and rising costs, but without staff we are nothing. Therefore changing the perception of hospitality being a suitable career for people starts with each and everyone of us here today.”
