The Vintners Federation of Ireland (VFI) has called on the Irish government to reduce VAT rates in a bid avoid job losses and to secure the long-term future of the country's pub industry.

An independent study commissioned by the VFI and conducted by the Dublin-based research agency, Ask Chili, revealed that 54 per cent of all Irish pubs expect to be forced into reducing staff levels during the next year. The research also revealed that 4,800 jobs had already been lost over the past 12 months, while 88 per cent of pub owners had to adopt cost saving measures, such as energy cost controls and reduced water usage, in a bid to reduce overheads.

As well as the reduction in VAT rates, the VFI wants the Irish government to extend employment initiatives to the hospitality sector and to appoint an ombudsman to ensure that banks are being fair in their approach to providing credit facilities to pubs. VFI president Val Hanley said: "More than 4,800 jobs have gone in the last twelve months, which has a huge financial cost to the state as well as a human cost. Rural pubs seem to be suffering the most and those pubs which relied on tourism trade are also well down.

"Our members have taken serious measures to make the necessary cutbacks by reducing opening hours, reducing energy output and water usage but this still has not prevented job losses. The industry is facing another very difficult few months which could decimate the sector and lead to more closures and job losses."