Dublin Pubs Call Last Orders (21/09/06)

In the last six months 24 Dublin Pubs have called last orders for the final time. Despite having only 10% of the bars in Ireland to cater for 35% of the population Dublin pubs are closing in unprecedented numbers and being turned into apartment and retail complexes.

Prior to the introduction of the smoking ban hardly a week went by when some politician, consumer group, or business interest were not calling for more bar licenses to be issued and in particular for the Dublin area. At about the same time the smoking ban was introduced Justice Minister Michael McDowell was promising legislation which would open up competition to allow for more bar licensees to be issued. How times quickly changed after the smoking ban. As pub sales dropped plans to deregulate the trade were shelved as publicans began putting their businesses on the market. Despite a shortage of licensed premises prior to the ban, a booming economy and population explosion, pubs in Dublin are closing at an unprecedented rate as elsewhere in Ireland. Recently it was revealed by a media report that 24 bars in Dublin have closed for good in the past six months.

Normally bars coming on the market in Ireland would find no shortage of buyers with banks offering 100% mortgages such was their business potential. A bar licence alone was worth in excess of €125,000. Once considered a 'gold mine' for the owner, once much sought after Irish bars have lost their appeal. The smoking ban has reversed the once lucrative business potential of Irish bars. Irish pubs now have little interest to investors other than property developers. As profits have plummeted in the wake of the smoking ban publicans fortunate enough to own premises in prime locations in Dublin have been selling up to developers. Vintner organisations now state that over 10% of their members have closed their bars and sold up in the little over two years since the ban was introduced.

Anti smoking groups and smoking ban supporters try to blame everything but the smoking ban for the dramatic increase in Irish bar closures. However, if one were to go back one hundred years and chart Irish bar closures the line will effectively flat line until March 2004, the time the smoking ban was imposed. At that point the line will shoot up steeply. Even a four year old child is likely to be able to point out the catalyst for the phenomenon of Irish pub closures is the smoking ban.