I record our thanks to the joint committee for its speedy response to our request for a meeting to discuss possible initiatives to deal with rural isolation.
The problem of isolation in rural Ireland is not a new one. The gradual erosion of public and other services in rural Ireland has been a feature of life for some time. We have seen the closure of post offices, schools, service stations, Garda barracks, creameries and even convenience and local shops. The problems associated with this gradual and continuing loss of services in rural Ireland were recognised by the Commission on Liquor Licensing which reported almost three years ago in April 2003. The commission was established to examine all aspects of the licensed liquor trade and related matters. On pages 76 and 77 of its final report, the commission observed:
The majority (71%) of public houses are located in small towns (with a population of 10,000 or less) or in open country and most of them (95%) are independently owned or family run businesses. Ireland's rural public houses are not merely drinking establishments. They contribute to the quality of life experienced by rural residents by serving as a social focal point in villages; providing an informal meeting place for friends and family and a formal meeting place for community groups and associations. Many double as a post office, grocery shop or small restaurants. Rural public houses bring direct employment to villages and towns throughout the country and also provide linkage jobs in furniture and refurbishment, entertainment and maintenance trades. They also contribute positively to the important tourism sector. Traditional Irish public houses are significant in perceptions of Ireland as a tourist destination and provide an ambience and social setting for tourists that are often uniquely Irish. In a submission to the Commission, the Vintners' Federation of Ireland (VFI) stated that many rural public houses barely generate a survivable income, while one in five public houses outside of Dublin have a turnover of less than €32,000 and about one in three less than €64,000. The VFI proposed the introduction of a rates relief scheme for rural public houses, similar to that which was introduced in the UK.
UK Experience: In the UK, the Government recognised the importance of public houses as essential community amenities and granted mandatory rates relief to village public houses. Provision was made under the Local Government Rating Act 1997 for mandatory and discretionary rate relief for non-domestic rates for certain rural general stores and post offices. The rationale was that these businesses played a special role in the life of the community and their loss would reduce the amenities available to rural communities and change the character of village life. The 1997 Act retained the right of local authorities to give hardship relief. It also allowed them to grant discretionary relief of up to 100% to any shop, post office or business, including public houses which (i) have a rateable value below a certain amount; (ii) are in a designated rural settlement of 3,000 people or less; or (iii) are of benefit to the community and whose loss would be detrimental to the quality of village life.
Conclusion and Recommendation: The Commission considers that public houses play an important economic and social role in rural villages and that recognition of that role might be given by way of rates relief. Rates relief, of a limited and focused nature, could increase the long-term viability of some rural public houses and facilitate their role in the preservation of rural services. The Commission recommends that consideration be given to the introduction of rates relief for rural public houses or other licensed premises within specified turnover limits and in designated areas of low population, particularly where a public house is the only gathering place in the locality and is specifically used in a social context for meetings, etc.
The Commission on Liquor Licensing recognised the important role that the local and rural pub can play in communities and the need to ensure its survival. The commission's recommendation was not based on any particular desire to help individual publicans, but rather recognised the role the rural pub plays and how essential its survival was and is to the rest of rural society. The VFI is of the view that consideration should be given to the introduction of some rate relief for pubs in rural Ireland as recommended by the Liquor Licensing Commission.
Many services apart from those provided by the rural pub have been lost to rural communities. I have already mentioned the post office, the shop, the Garda station and the rural creamery, the loss of which amenities has contributed significantly to an increase in rural isolation. That isolation has been greatly highlighted since the introduction of random breath testing. People are now more responsible in their approach to drinking and driving and thus find themselves less mobile. It is also the case that a sense of fear has been engendered by media hype about random breath testing in the morning. People fear that even if they have as little as one or two drinks in the evening prior to a good night's sleep, they are likely to be subjected to random breath testing and penalties the following day. While this view takes no account of the metabolism of the human body, fear is a factor which is not easily overcome.
The Vintners Federation of Ireland does not oppose and has not opposed the introduction of random breath testing. Many public statements, complaints and media headlines would suggest that we have, which is incorrect. However, random breath testing has highlighted the deficiency of public transport for every aspect of rural Ireland. Previously many citizens took a risk which they now fear and feel unjustified in doing. This has had an impact on a wide variety of social, cultural and economic activities.
While much media attention has been focused on the implications for public houses, there are many other facets of society which have been impacted upon negatively to as great an extent. Volunteerism has been greatly hindered by the absence of any form of transport at local and rural level. Those who engage in what might loosely be described as the corporal works of mercy are often unable to continue in the absence of any form of transport. People throughout the country have great difficulty unless they are car owners in their ability to visit the sick, one of the great corporal acts of mercy, attend a hospital appointment, maintain social contacts with friends and neighbours or overcome the inevitable isolation which flows from living in ever-diminishing communities.
Many small local clubs depend on a local pub to hold their meetings, plan their events and do all the things which make it possible for a small rural club to survive, prosper and provide an amenity. This applies to GAA, gun, soccer, angling and fishing clubs, greyhound breeders, as well as regattas, race and festival committees. The list is almost endless.
Similarly there are the needs of people whose social outlet might be a night at bingo or the cinema. Our purpose, therefore, is not about circumventing random breath testing. Neither is it about producing a begging bowl for State funding on matters solely related to rural pubs. This is about the survival of the rural community. The pub has a role to play and an investment to make in that survival plan. The drinks industry and any other industry supplying services to the local and rural community have a role to play and we are entitled to seek investment. Similarly, we want the Government and the Oireachtas to help and support.
This may be an opportunity to create some employment in local communities. It has been suggested that better use of school buses would solve our problems and there is no doubt that this is part of the solution. It is desirable that underutilised resources should be looked at. It is quite possible to encourage investment in community-based hackneys, taxis, mini-buses or people carriers if appropriate taxation and other matters are put in place. As an example, if a local community, group or club decides to provide a hackney for a local unemployed driver, surely it should be possible to set off the vehicle registration tax or the value added tax on the purchase of that vehicle? Unfortunately, the smaller vehicle is very clearly discriminated against in these circumstances. If the vehicle has less than 16 seats, there is no clawback for VAT on the purchase, while VRT clawback is restricted to vehicles with over 12 seats. Many people would be encouraged to invest and perhaps create employment at local level if a reasonable tax regime was put in place.
Where a business purchases a vehicle with 16 seats or more, there are very significant tax concessions. We believe that those concessions should be applied to smaller vehicles used for the purpose of providing a transport service at local level. We have, for instance, seen many publicans — our own members — purchasing seven, eight and ten-seater vehicles expressly for the purpose of providing transport home for their customers. However, they have been unable to gain VAT or VRT tax relief on that vehicle.
The public in rural Ireland is entitled to a reasonable transport service. We recognise and commend the existing, though limited, rural transport initiatives which are already in place. We also wish to place on record our recognition of the promise by the Minister for Community, Rural and Gaeltacht Affairs, Deputy Éamon Ó Cúiv, that further funding will be made available to support further rural transport initiatives. We wish to declare our interest and our intention to help to develop any and all such proposals. We believe that, with the co-operation of the Oireachtas, industry and the trade, a transport service can be greatly increased and improved.
In order to achieve some movement in this regard, we would like to see two or three pilot projects initiated as soon as possible. We would see the licensed trade engaged in this process and in so far as it is of benefit to the industry, the industry should be contributing. A number of groups are willing and anxious to get involved around the country and we should not let the opportunity pass.
We do not see this as solely a matter of driving people to or from the pub. We see this as an essential service within the local community which will reap rich rewards for society, which has the potential to create employment and can significantly ease the burden of isolation with all the attendant social and health implications of that condition.
Finally, we believe it will be a recognition of the needs of rural society which feels, rightly or wrongly, that it has been ignored for too long. When members of this committee were elected to the positions they hold, they said they would and could make a difference. I urge them to show responsibility and make this difference today.
