'The elephant in the room here is cocaine use' - Leitrim publican on rural pub decline
Speaking to the Leitrim Observer, Manorhamilton publican and councillor Felim Gurn said that the “cost of living and change in culture” is having a detrimental affect on pubs across Leitrim and the country and recently had to close his own kitchen after 43 years.
This week the Vintners’ Federation of Ireland (VFI) told the Oireachtas Joint Committee on Enterprise, Tourism and Employment that rising business costs are contributing to job losses across the pub sector and threatening the viability of many rural pubs.
It said that 22% of pubs reported a decrease in staffing levels over the past 12 months and CSO figures show employment declined by 15% over the past year.
Speaking to the Leitrim Observer, Manorhamilton publican and councillor Felim Gurn said that the “cost of living and change in culture” is having a detrimental affect on pubs across Leitrim and the country and he recently had to close his own kitchen after 43 years.
He stressed: “Costs are going through the roof; the VAT rate in Spain and other similar countries is only 5% and wage costs are a lot less but they’re getting our prices from tourists. In Ireland, since Covid, the minimum wage is gone from €9 to €14. Obviously it’s not that people don’t want to pay their staff but costs are through the roof with electricity, insurance and rates and waste costs. You’re dealing with your staff and pension schemes, holidays, sick days and it’s not viable now for a small business to have staff.”
He said that he believes, going forward, “people will not be hiring staff unless they are big outfits in bigger towns. Unfortunately, pubs will start closing in rural Ireland. They are not just a pub; they are a meeting place from when you are born until you die. They are a social outlet. There are a lot of statistics showing that people are living with loneliness and the pub was an outlet for them.”
He went on to say that people “often don’t know their neighbours anymore and in parts of Ireland, there are no taxis or rural transport and anti-drink driving campaign campaigns have people worried about the next day even if they have a drink at home.”
He added that the “elephant in the room here is the amount of cocaine use and nothing is being done about it; the pub has been the easy target. We are seeing the drug problem destroying families and they have been very silent about it.”
He said that the younger generation more focused on fitness but “are totally in isolation themselves because a lot of them are not actually talking to each other and that’s why there has been a huge rise in mental health issues whereas years ago, people would go out to a pub and socialise and interact with each other.”
He continued: “Since the government was formed it was promised that the VAT rate would be brought down and that wasn’t implemented until 18 months later and during that time, a lot of people who were in that sector have closed their doors due to costs.”
He added: “You are in a perfect storm. We’ve been through recessions, been through covid but we’ve never seen anything like the cost of living.”
The Committee also heard that publicans have experienced significant increases in key operating costs over the past five years, including electricity costs rising by 70%, wages by 40%, and water tariffs increasing by 30% in 2024 followed by a further 10% increase in 2025.
It also heard that 2,200 pubs have closed across Ireland since 2005, representing a decline of over 25% in the total number of licensed pubs.
While welcoming the restoration of the 9% VAT rate for food-led hospitality businesses, the VFI said the measure does not benefit the majority of rural pubs, with 64% not serving hot food.
As part of its Budget 2027 submission, the VFI is calling on Government to introduce a new On-Trade Sustainability Scheme aimed at protecting smaller and rural pubs.
The proposed measure would operate through a targeted tax credit linked to verified purchases of draught products, with support capped at €20,000 per premises.
Cllr Gurn concluded: “We are asking people to move back to Leitrim but it’s taken 15 or 20 years to sort out the problem with one-off housing but what will be left in our towns and villages? All we’ll have is takeaways, phone shops and vape shops and all small shops and rural pubs will be gone with no outlet for communities.”
He added that people are now making “community pubs to try and bring life back to the area. If the pub goes in the local area, the community is gone.”