MORE CLARITY NEEDED
Publicans in The Avondhu area have said the new Government scheme to help the hospitality sector will be of benefit, but clarity is still needed on the finer details.
The Government announced the Covid Restrictions Support Scheme (CRSS) on Tuesday as part of Budget 2021, to “provide targeted support for businesses”, according to the Department of Finance.
VAT 'GREAT NEWS'
The Avondhu spoke to two businesses - Ka Cahill of Tod’s Bar and John O’Connor of Market Place - who commented that there are some positives, particularly around the VAT decrease.
“The VAT rate is great news. I think the payment scheme will benefit smaller pubs that are closed long term and also have a low turnover,” said Ka, who is the Vintners representative for the area.
“The general example that I have is that if the turnover per year is €100,000 there is a calculation taken on the turnover for 2019 and then get ten percent of that, with the final figure coming from 52 weeks.
“The example basically says that the payment would be around €190 per week - that would be particularly beneficial for elderly publicans on pensions or people on the PUP.
“There is still a lot to go through and we need greater clarity, but there is at least some plan in place now,” she added.
The scheme, will operate at level 3 or higher and will see businesses receive weekly payments of up to €5,000 if they are forced to close or effectively close because of prohibited or restricted access by customers.
Payments will be calculated on the basis of 10% of the first €1 million in turnover and 5% thereafter, based on average VAT-exclusive turnover for 2019. The payments will cease when restrictions are lifted, and the entire scheme is due to close on March 31, 2021.
In relation to VAT, the rate for the hospitality sector will be reduced from 13.5% to 9% from November 1. This will remain in place until December 2021.
CLARITY
Mr O’Connor said that like a lot of publicans, he is trying to get an understanding of what it all means.
“On the face of it it doesn’t make much of a difference to me, the VAT rate does help. It all probably needs a bit more clarity, I need to get down to nitty gritty of what it all means.
“I think the payment scheme would be of benefit to people who are closed permanently. I am doing a small few seats outside for food and also takeaways. I think it’s better to try and turn over a few quid that way than closing down and depending on the payments.
“It might benefit a fully closed pub, it might benefit a few of those publicans in Mitchelstown, who are just trying to keep their heads above water,” he said.