Government plans to change licensing laws in Ireland that are over 200 years old could pose a potential threat to family owned rural pubs, the Vintners’ Federation of Ireland (VFI) has warned today (Thursday, January 5).

The VFI claims that the new laws, which aim to “streamline” the licensing system, could undermine existing rural pubs because they could “create unsustainable competition”.

According to VFI chief executive Paul Clancy an estimated 110 rural pubs closed last year.

He said although the closure rate has showed rural pub owners continue to face major challenges in relation to rising costs and staff issues.

VFI chief executive Paul Clancy

“Rural pubs are the hubs of many communities. In some villages, where for example they have lost their post offices, they really are the last bastion,” he said.

“Our concern is about the viability of these pubs, many of which are family owned and who play a really important part in their local communities.”

Under the General Scheme of the Sale of Alcohol Bill 2022, which is set to come before the Oireachtas this year, the current requirement that anyone who wants to open a new pub or an off licence must first purchase a licence from an existing licence holder in order to do so, will be removed.

This ‘extinguishment’ provision as it is termed will remain in place for off licences.

The Minister for Justice Helen McEntee, who is currently on maternity leave, previously said that “the current system makes it difficult for anyone who wants to open a new pub in towns and villages where a pub has closed its doors”.

The minister also believes the proposed new laws will “support the industry, protect and back our pubs”. 

She said it would help to “reinvigorate ” the nighttime culture and economy across the country.

The VFI it welcomes the government’s commitment to support pubs and the hospitality industry, but Clancy claims that removing the ‘extinguishment’ provision could open the door for pub chains to move into villages and undermine a locally owned pub.

“This could be groups that are not traditionally part of the life of a village or a community, that don’t know local trade and that might move in and then quickly move out and then there would be no pub in that area,” he said.

“Family run rural pubs offer a lot to their local communities; they’re a meeting place, they’re part of the fabric of a community and with more people now relocating to live in rural areas, they are are bouncing back from the pandemic,” Clancy added.