The chair of the Drinks Industry Group of Ireland Rosemary Garth has suggested that “10,000 jobs could go” in Ireland’s largest indigenous industry tourism in the event of a no-deal Brexit.
The Irish tourism and hospitality sector employs 8% of the entire workforce in hotels, restaurants, pubs, breweries and other businesses, with most employees working and living in rural Ireland.
She said: “A no-deal Brexit could benefit business owners in the sector, as UK tourism has reduced and euro is almost par with the value of sterling.
“However, a weakened sterling value will lead to the reduction of visitors from overseas and encourage cross-border trade, which would divert sales from Irish businesses.
"This could cause severe damage to the industry - as witnessed in the past.
“This will have a knock-on effect on the agri-food sector, drink production sectors and others. Jobs may be lost and rural businesses will face the threat of closure."
Planning required
Garth claimed with Brexit only around the corner and Westminster in turmoil, planning for a no-deal Brexit has become even more difficult and the likelihood of the UK and EU reaching a deal is now becoming smaller.
“The Irish Government must do everything in its power to reduce/remove any barriers that obstruct Irish businesses from operating at maximum efficiency and productivity.
“For full productivity, we need to ensure our taxation policies are competitive.
"We’re asking the Minister for Finance to reduce excise tax on alcohol by 15% over a two-year period.
“A reduction of tax in the drinks and hospitality sector may not solve problems overnight.
"However, it will give businesses some space and free up funds to survive a Brexit-induced downturn.”
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The chair of the Drinks Industry Group of Ireland Rosemary Garth has suggested that “10,000 jobs could go” in Ireland’s largest indigenous industry tourism in the event of a no-deal Brexit.
The Irish tourism and hospitality sector employs 8% of the entire workforce in hotels, restaurants, pubs, breweries and other businesses, with most employees working and living in rural Ireland.
She said: “A no-deal Brexit could benefit business owners in the sector, as UK tourism has reduced and euro is almost par with the value of sterling.
“However, a weakened sterling value will lead to the reduction of visitors from overseas and encourage cross-border trade, which would divert sales from Irish businesses.
"This could cause severe damage to the industry - as witnessed in the past.
“This will have a knock-on effect on the agri-food sector, drink production sectors and others. Jobs may be lost and rural businesses will face the threat of closure."
Planning required
Garth claimed with Brexit only around the corner and Westminster in turmoil, planning for a no-deal Brexit has become even more difficult and the likelihood of the UK and EU reaching a deal is now becoming smaller.
“The Irish Government must do everything in its power to reduce/remove any barriers that obstruct Irish businesses from operating at maximum efficiency and productivity.
“For full productivity, we need to ensure our taxation policies are competitive.
"We’re asking the Minister for Finance to reduce excise tax on alcohol by 15% over a two-year period.
“A reduction of tax in the drinks and hospitality sector may not solve problems overnight.
"However, it will give businesses some space and free up funds to survive a Brexit-induced downturn.”
Read more
EU free movement to continue until 2021 under no-deal Brexit
Taoiseach warns of checks on goods and animals in no-deal scenario
McGuinness: beef crisis debate to ignite Commission into action
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