Business

Government aid will come too late to save many businesses warns hospitality boss

Hospitality Ulster has warned that one-in-four restaurants and one-in-eight pubs are at risk
Hospitality Ulster has warned that one-in-four restaurants and one-in-eight pubs are at risk Hospitality Ulster has warned that one-in-four restaurants and one-in-eight pubs are at risk

THE promise of future funding will come too late for many pubs, hotels and restaurants, the head of Hospitality Ulster has warned.

It’s one month since Irish bars and restaurants began pulling down their shutters in response to safety concerns over coronavirus.

On Friday, Economy Minister Diane Dodds said it could be another month before a £25,000 emergency grant lands in company bank accounts.

Smaller retail, hospitality and tourism businesses can apply for the scheme from April 20, but officials have said it will take around 15 working days to process, including verification.

A similar scheme in England, where leisure businesses are included, is already being rolled out by local authorities.

Colin Neill of Hospitality Ulster has said many businesses have already exhausted cash reserves. He estimates that 10-12 per cent of pubs, 15 per cent of hotels and a quarter of restaurants in the north are vulnerable.

“We’ve asked, we’ve lobbied, but now we’re appealing – for God’s sake, somebody help us. It is as dramatic as that. It’s at that point. People have no money.

“There’s no point saying the lifeboat is coming in ten minutes, if you’ve only got three minutes left,” said the chief executive.

“It is critical. I have grown men on the phone crying. People are at their wits’ end. They don’t know what to do.”

The Government-backed coronavirus job retention scheme is set to open on April 20. While the trade representative said it will help with staff costs, he said many other overheads remain.

“It’s not going to keep us going for months and months.

“You have promises of money, but it’s money tomorrow. We need it today.

“The health of the nation comes first, the NHS comes first. But the actual health of our economy is connected to people’s mental health,” he warned.

“I honestly have concerns for the mental health of some of the people who have been ringing me.

“People are in desperation.”

Hospitality Ulster estimates that 65,000 people in the north depend on the industry for employment.

“If we start losing those numbers, that’s huge job losses straight away,” said Mr Neill.

He said the sector also accounts for 60 per cent of tourism spend.

“If you take a big chunk out of hospitality, you take a big chunk out of tourism spend, it sets us back years.

“I’m not even talking any more about reopening, it’s about rebuilding.”

Reopening pubs and restaurants won’t be straightforward either. Mr Neill said once the decision is made, it could take at least two more weeks for the industry to get supply chains operating again.

Hospitality businesses will also need significant funds to restock.

“There will be a number of premises which don’t open again. That’s an unfortunate given,” he said.

“I feel like I’m letting them down, because I can’t deliver for them. We thought we made progress with the grants and furlough, but if it doesn’t come in time, we’re back to square one.”

Retail NI boss Glyn Roberts also expressed his concern yesterday that many cash strapped retailers may not survive until they receive the payment next month.

“Many businesses assumed that they would get the grant well before then to keep them going until they receive furlough payments,” he said.

Mr Roberts also called for the scheme to be altered to allow independent traders with more than one store to benefit from more than one payment.

“This change would support front line independent retailers who have more than one store, continue to provide food and other essential products to consumers. It would also assist those independent retailers who have had to close their doors during this crisis.”

Friday’s announcement by Diane Dodds also included the confirmation that the Executive had backed her request to extend the smaller £10,000 cash grant to 2,500 small manufacturers initially left out of the scheme.