Michael Collins (Cork South West, Independent) | Oireachtas source

Small businesses are going through the most horrendous time, especially in the past few months. Cafés, restaurants, pubs and family hotels are closing at an alarming rate. Hundreds have already closed this year. Businesses the length and breadth of the island are pleading for help in an effective way but to date, the call has gone unheeded by the Government. Last week, the Government stated it intends to help small businesses by providing grants, advice and mentoring. Grants may help, but for these businesses, some of which have been in operation for decades, advice and mentoring is an insult to their intelligence.

Last week, on the front page of the west Cork Southern Star, a national campaign for the VAT rate to be reduced was launched by businesses throughout west Cork. This campaign, called VAT 9 Now, run by Jamie Budd of Budd's restaurant in Ballydehob, Peter Shanahan of the Fish Basket in Long Strand Beach, Gavin Moore of Monk's Lane, Timoleague, Aisling O'Leary and Forbes Kelly of Revel, Clonakilty and Vic Sprake and Deborah Ní Chaoimhe of Camus Farm outside Clonakilty. This campaign is gaining support from hospitality businesses all over the country. The VAT rate returned to 13.5% from 9% for the hospitality and tourism industry in September 2023, although I and others pleaded with the Government at that time and beforehand, stating it would have devastating consequences for important businesses in every town and village. This destructive increase, combined with spiralling energy costs, increases in food costs and the minimum wage, are bringing already tight margins for these businesses to the point of being unviable.

Businesses have now been saying for months that the Government does not realise the effect of the VAT increase that almost doubled, plus all other costs associated with running a business, including energy costs that no one has control of and the minimum wage that no one expects to decrease. However, the Government has control over the VAT rate and the call is to immediately drop it back to 9%. If it does not, more and more of these businesses will go under. One of the business people in the group I mentioned said it is a hugely testing time for the sector, that their margins are at breaking point and that it is disheartening because they love what they do, but they cannot be busy fools. They worked long hours through Easter and having paid everything out, little is left. These businesses pay rent, rates, electricity bills, water bills, wastewater bills, waste bills, wages, suppliers, maintenance, insurance bills and most damaging, the VAT bill. These café, restaurant, pub and family hotel owners are asking how many of these businesses have to close before the Fine Gael, Fianna Fáil and Green Party Government will wake up and understand the crisis they are in. Surely, those at the top are not so disconnected that they have no idea what is happening on the ground. Are the backbencher TDs and Senators telling the Government anything? I will ask a straight-up question on behalf of the VAT 9 Now action group from west Cork, which has gone national. Will the Taoiseach support the return of the VAT rate to 9% from 13.5% this week, thus giving these businesses a small boost before the summer season? It would be a boost that may see them survive. Anything else coming from the Taoiseach today will be devastating for these businesses.

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