Budget 2022: “I hope they tackle the cost of electricity, tariffs and insurance,” says publican
The rising cost of electricity and insurance is straining publicans.
ay Aughey owns the Squealing Pig in County Monaghan and is the president of the Monaghan Vintners Association.
Mr Aughey said something needs to be done about the cost of basic utilities that businesses cannot live without as the 2022 budget looms.
âIn addition to reducing excise duties and VAT, I would like them to do something about electricity prices, tariffs and insurance,â he said.
âThe government was supposed to be working on the insurance industry, but prices keep going up and for all the tax collectors I’ve spoken to, electricity is a huge problem. These are all fixed costs that you cannot do without.
âWater has increased with the new Irish Water regulations, electricity has increased by at least 20-40% for businesses, and domestic customers are seeing it too.
âThe cost of insurance hasn’t come down and that’s a big problem. The question is why isn’t the insurance going down? For us at Co Monaghan our assessment was done in 2019 for our local rates and I’m sure many companies haven’t achieved the same turnover as before.
âThe rising costs also affect the consumer and can lead to a decrease in the number of outputs. This will have the effect that people won’t want to go out because it’s too expensive to go out and it has a ripple effect on the industry.
Mr Aughey said staff shortages are a huge problem for the hospitality industry.
âA lot of people haven’t been able to have staff at all levels. Previously you could have students, but we haven’t been able to get them yet. “
Mr. Aughey believes that the price of alcohol will have to rise.
âI would say that companies have no choice but to raise prices. Transport prices will certainly increase, âhe said.
âThere is no way that companies supplying the hospitality industry can maintain prices as fuel prices are going to rise.
âI would say there’s no way they can hold back the prices. Diesel only goes one way.
âThe suppliers to our business certainly suffer the same as we do. I think the beer suppliers would increase their prices.
âFood prices have already gone up in the industry – you see it in the local supermarket. We then have no choice but to increase the prices.
The Drinks Industry Group of Ireland (DIGI) has suggested a 7.5% reduction in the excise tax on beer, wine, spirits and cider in the budget, which they say could have an immediate impact. over thousands of hotel companies, hundreds of thousands of workers, and customers.