Restaurants have set out their demands for urgent state assistance, without which nine out of ten restaurants face permanent closure.

Restaurants Association of Ireland is calling for tax breaks, grants, wage supports and a commercial rates write-off to help the sector emerge from the pandemic restrictions.

The plan addresses issues such as:

VAT: 0% VAT rate for tourism and hospitality for the duration of the Covid-19 crisis and for 12 months thereafter. It then proposes a reversion to 9% VAT for five years.

Rents: Legislation to protect commercial lease holders and any mortgage holiday or write-offs to be passed on to the lease holder. The RAI suggests that the ‘60/20/20’ scheme in France would be apposite, where the government supplements rent by 60%, the landlord reduces rent by 20% and the commercial tenant pays 20% for 12 months of the crisis.

In Association with

Banks: No banking fees for hospitality until a vaccine is found. ECB interest rates on loans and a moratorium on existing loan repayments.

Insurance: Pay-outs under business interruption and notifiable disease clauses. Forbearance, in either rebates or extensions to policies for period of closure and no suspension of cover while businesses are closed.

Wage Supports: Continued supports for restaurants and hospitality until a vaccine is found. Support for people over the age of 66 and seasonal workers in the PUP and Wage Subsidy Schemes.

Liquidity/Grants: A DBEI package of grants for businesses to cover outgoings in the first six months following the return of normal trading.

Commercial Rates: Rates write-off for restaurants and hospitality for the full crisis period until a vaccine is found.

Utilities: Ban on utility providers cutting off services and demanding payments when business are closed. Review of standing charges for closure period.

Outdoor Seating: Waiver of licences for outdoor tables and chairs for one year to enable businesses to reopen and adapt to social distancing using outdoor spaces.

“Our plan, which is the only viable solution for restaurants, is on the desks of ministers and departments. We are seeking urgent action to save and recover our industry,” said Adrian Cummins (pictured), CEO of the RAI.

The scale of the crisis affecting the sector is latest government data showing that 127,000 people employed in accommodation and food services are in receipt of the €350 per week Pandemic Unemployment Payment.