The Irish Hotels Federation (IHF) has warned that the failure of an Irish government recapitalisation scheme to deliver an increase in funding for the hospitality sector is putting 60,000 jobs at risk.

Figures released by Ireland's Central Bank reported a 2.9 per cent decrease in total bank debt to the industry for 2008, and the IHF has called for an increase in credit facilities in order to provide extra working capital as part of the government scheme. Speaking at the IHF's annual conference in Killarney, County Kerry, president Matthew Ryan said: "Government efforts in the lead up to and following the recapitalisation plan have had little impact on the availability of funds within the sector.

"The change in economic circumstances, and the absence of the likelihood of a return to growth in 2009 or 2010, makes it imperative for hotels and guesthouses to concentrate on survival." New proposals outlined by the IHF include the easing of tax payment requirements, including commercial rates in a bid to reduce the risk to lending agencies. The federation also suggested that if banks fail to provide sufficient lending within the next four months, the Irish government should intervene to help the industry.

Ryan added: "The situation is too urgent and difficult to discover, in some months time, that the measures have not improved in the hotel financing situation. There must be immediate accountability, monitoring and transparency in credit availability."