Smoke ban could stub out 900 pubs in Wales
by MA Reporter
One public house in every four in Wales could close if smoking is banned on their premises, according to the Welsh trade.
Profit in 900 of the country's 3,800 establishments is too small to survive the 15% cut in takings resulting from the end of tobacco sales and loss of customers who switch to drinking at home.
But despite evidence from Licensed Victuallers (Wales) representing the self-employed section of the industry many members of the Welsh Assembly seem unconcerned.
An Assembly committee has been looking into the economic impact of restricting smoking in public places, and this week visits Ireland to study its ban.
The evidence of the effect on the trade was gained by LV(W) from the rating list, which bands premises by their turnover.
The Assembly Government has already acknowledged the economic difficulties, as well as the importance to both local communities and the tourist industry, by introducing man-datory relief for all rural pubs with a rateable value below £9,000.
Gareth John, speaking at an Assembly committee meeting on behalf of LV(W), showed that a smoking ban would reduce the net profit of 5% of Welsh pubs (191 in total), with a turnover of up to £52,000, to only 3.7%; for the next 5% (turnover up to £62,000), the net profit would slip to 7%; and for a further 15% of the trade (turnover, up to £87,000) to only 10.5%.
John said he would expect these 900 pubs to close. He said: "These are social drinking pubs, employing few if any staff. The main activities would be pool, darts, cards and companionship, with food hardly ever offered."
Politicians in Westminster have indicated that the Assembly would be free to decide the detail of any ban or restriction.
John said after the meeting that his organisation had discussed campaigning for exemption for smaller establishments partly because such one-room pubs would be unable to provide separate smoking and non-smoking facilities.
The suggestion was rejected over difficulties in defining the maximum size.
