RAI President Says Wage Subsidy Extension Is Most Urgent Support Measure Required By Restaurant Sector

By Dave Simpson
RAI President Says Wage Subsidy Extension Is Most Urgent Support Measure Required By Restaurant Sector

Restaurants Association of Ireland (RAI) president Mark McGowan has said that an extension of the Temporary Wage Subsidy Scheme is the most urgent support measure that the Irish restaurant industry requires from the government.

In the RAI's "July President's Report", which has just been published on the association's website, McGowan said, "We have lobbied for many essential supports from government, but the most urgent measure required is an extension of Temporary Wage Subsidy Scheme (TWSS). This support has enabled businesses to keep the link between employee and employer. It seems that our calls have been answered, and it has been reported by media that there will be an extension to the wage subsidy to seasonal and new staff. We await confirmation from government later in the week. I feel it would be only fair to back date the subsidy to businesses that have been left behind to ensure there is a level playing field between businesses.

Evolving "Asks"

McGowan added, "As our sector's economical position evolves, our asks of government must also evolve. We are now calling for a new VAT rate for on trade alcohol specifically focused at segments in the market to reflect public health policy around alcohol. On trade alcohol sales are provided to customers in a controlled and very much regulated environment in a responsible way. We are seeking a 5% composite rate on alcohol in line with our combined tourism industry call of a 5% VAT rate for tourism and hospitality, the cost to the exchequer will be €379 million. This will give significant help in regional and rural areas and protect jobs for the long term.

"Last week, the RAI along with the Vintners Federation of Ireland (VFI) and Irish Hotels Federation (IHF) were at the Oireachtas COVID Committee delivering our asks of government to ensure the preservation of the Irish tourism sector. It gave me great satisfaction to see a united industry working together to protect business owners and their employees. If our calls are not answered, I fear the cost of not supporting us will far outweigh the asks of our industry."

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