'Restaurants Association of Ireland launch ‘A 10 point plan to protect existing employment, create new jobs and ensure the viability of the restaurant sector’
 

The Restaurants Association of Ireland (RAI) today Monday 16th November launched its 10 point survival plan for the restaurant sector. The Association has identified that over 80% of Irish Restaurants are running at a loss which puts 21,000 Irish Restaurant jobs at risk.

This will result in a potential €700m annual loss in tax revenues to the Irish economy. It confirms the worst fears expressed by the RAI since the recession started.

Adrian Cummins, Chief Executive of the Restaurants Association of Ireland  delivering the 10 point survival plan outlined a series of urgent actions needed now if the restaurant sector is to survive.
The Irish Restaurant industry employs 64,000 people (1 in 4 tourism jobs) and contributes €2 billion to the Irish economy each year.

• Irish restaurateurs pay the  highest catering wage rate in Europe 
• Ireland has the highest excise duty on wines in Europe 
• Irish food cost inputs are 24% above the European average.
(source ‘Cost Of Food Preparation Report’, commissioned by Fáilte Ireland) 
 
The Restaurants Association of Ireland’s 10 Point Plan:
 
1: Reduction in the National Minimum Wage and abolition of the JLC Structure and Sunday Premium Payments.
• The Restaurants Association of Ireland is advocating a reduction of the minimum wage from €8.65 per hour to €7.65
• Abolishing Catering JLC Minimum rates. Ireland is 54% higher than Spain and 23% Higher than UK.
• Abolishing the Sunday Premium Scheme. Only Country in Europe that pay a premium.

2 : Reduction in Local Authority Charges and Regulatory Burden.
• Ireland is the most expensive country in Europe to run a Restaurant.
• Waste license fee has increased from €1200 to €4000.
• Introduction of Grease Trap Monitoring Fee €870 per annum.
• Sunshine Tax on Outdoor Seating / Music Performance Tax / Business Improvement District Levy.
As a first step, The Minister for Finance should instruct all local authorities to decrease commercial rates to business by 10% in 2010

3. Prioritisation of a Food Tourism Strategy as a jobs creation mechanism plus the establishment of and a dedicated restaurant division in Fáilte Ireland.
• Tourism is the 2nd largest indigenous contributor to the Irish economy
• Fáilte Ireland and Tourism Ireland continue to reinforce brand Ireland
• Prioritisation of Food Tourism Strategy as a jobs creation mechanism
• The establishment of Ireland the ‘Food Tourism Island’ brand.
• Retention of the current level of activity funded by the Fáilte Ireland and Tourism Ireland international marketing budget

4. Removal of Air Travel Tax and Introduction of Free public transport to all over 65’s who visit Ireland.
• Ireland cannot afford to incur competitive disadvantage that makes routes to and from Ireland less attractive
• By 2020, roughly 20% of the European population will be aged over 65.
• Ireland could be the first to introduce this initiative within the EU and maximize on the promotional opportunity.

5. Investment in training and development to be offset against Employers PRSI.
• The Restaurants Association of Ireland is calling for investment in training to be offset against employer’s PRSI.
• This will result in a highly skilled workforce and maintaining high standards in the sector.

6. Introduction of composite VAT rates on Dining out.
• Introduction of a composite system for determining the Vat Rate applicable on a meal i.e. if food represents > 2/3rds of the total value of a meal, a Vat rate of 13.5% should apply to the whole meal.
• Encourage the practice of dining out and a café culture.
• Reverse the trend of people buying discounted alcohol products from off-licence locations and increased home consumption of  alcohol

7. Reintroduction of recoverability of VAT on Corporate Dining.
• U.K. companies can reclaim 100% of vat incurred on corporate dining.
• Any percentage of recoverability of VAT would create a stimulus to the sector, with little loss in tax revenues.

8. Introduction of capital allowances for investment in the restaurant sector.
• Businesses operating in Ireland can qualify for Capital Allowances on the fit out of their industrial buildings.
• Restaurants are not granted the same access, at present.
• Capital expenditure incurred by Restaurants has increased significantly due to, among other things, increased health and hygiene regulations, fire standards and water regulations.
• Only establishments having a Special Restaurant Licence would qualify for such allowances.

9. An Employers PRSI rebate for maintaining jobs and an extension of the Work Placement Scheme.
• Reduction of employers PRSI for those companies who have maintained their employee numbers at P35 filing time
• Work  Placement Scheme criteria to be extended to include  small businesses with less than 10 employees

10. Reduction in Excise Duty.
• Reducation of excise duty on wine served as part of a meal
• This reduction will impact on excessive home drinking as well as encouraging sensible drinking
Adrian Cummins, said “Currently, the Irish Tourism Industry is facing a crisis, and more particularly the Restaurant and hospitality sector. This crisis has been illustrated by a recent Report of the Tourism Renewal Group which identifies “survival” and “recovery” recommendations. The Restaurants Association of Ireland’s 10 point plan is fully consistent with the survival recommendations on:

- investment and marketing,
- reducing access costs,
-prioritising public spending and
supporting sustainable enterprises.

The Irish Tourism Industry one of the largest indigenous contributor to the economy and can provide a job creation mechanism when other industries are failing. The Restaurants Association of Ireland is calling on the Minister for Finance to assist tourism in becoming a significant driver of the economy’s return to growth.
 
The Restaurant sector is a critical part of the Tourism and Hospitality Industry. The Irish Restaurant industry employs 64000 people and contributes €2 Billion to the Irish economy each year. Not only does it encompass a large number of owner operated SMEs, but is also a crucial supporter of small businesses, local agriculture and food producers throughout the country. A vibrant restaurant sector is crucial to a successful tourism “product”.
 
Restaurateurs have adapted to the downturn, by reducing costs and menu prices. A series of urgent actions are now needed as the current business environment is unsustainable.
The Restaurants Association of Ireland cannot highlight enough the importance of this budget in restoring consumer confidence in the country.
 
This  is a 10 point plan to protect existing employment, create new jobs and ensure the viability of the restaurant sector’.
The Restaurants Association of Ireland
Founded in 1970, the Restaurants Association of Ireland is the professional body of the Irish Restaurant Industry. The primary functions of the Association are to promote and defend the interests of its members. The association has established itself as the representative voice of the Restaurant and catering sector.

Available for Interview
Adrian Cummins
Chief Executive Officer
The Restaurants Association of Ireland
Mobile: 0868263311
adrian@rai.ie