To: The Irish Government
Immediate Supports needed for the Restaurant & Hospitality Sector!
Support Businesses & Support Jobs!
•Extended Wage Supports Scheme - revert to TWSS rates
•Sector Specific Aid Package
•VAT rate reduced to 9%
•Action on Commercial Rents
Why is this important?
The Costs of Not Supporting the Restaurant Sector
Providing support to restaurant businesses will come at a significant financial cost to the Exchequer. The proposed measures would cost around €1.6 billion in a full year. However, the costs of not providing adequate support and allowing thousands of businesses to die, would far outweigh those costs.
It is conceivable that without adequate support during this 24-month period, up to 100,000 jobs could be lost in the sector. Such an outcome would impose a very significant cost on the Exchequer, which could be as high as €2.8 billion.
If 100,000 workers were to remain unemployed for a full year:
•It would cost the Exchequer around €2 billion in increased social protection expenditure.
•It would cost the Exchequer up to up to €500 million in lost payroll taxes.
•It would cost the Exchequer around €240 million in lost VAT receipts; and
•It would cost local authorities around €52 million in lost commercial rates.