Peadar Tóibín (Meath West, Sinn Fein) | Oireachtas source

Cuirim fáilte roimh na finnéithe. One of the difficulties for the hospitality sector is that its offering is often considered a luxury product which may be more sensitive to price increases. An increase in VAT, therefore, is likely to have an even greater impact than would be the case in other sectors. I have a dislike for VAT in general because it is a regressive tax which does not involve a strong linkage between the charge levied and ability to pay. We have seen VAT rates increase steadily since 2001. In the restaurant industry, a particularly labour intensive industry, it is effectively a tax on labour.

I strongly agree with Mr. Cummins's point on the great disparity between urban and rural in the context of the overall performance of the sector. In County Meath, for example, restaurants served as a weather vane of the crash, being some of the first businesses to topple when the economy declined. They continue throughout the country to struggle. Another factor hitting restaurants hard is the payment of rates. My view is that rates should also be tied to income or ability to pay. It seems very unfair that businesses which are not even making a profit are being hit to the same extent as their profitable counterparts.

I was impressed by Mr. Cummins's proposal of a linkage with food tourism. There is ongoing expansion of the level of trade and employment in the agrifood sector. Food tourism fits very closely with the idea of Ireland as a food island, both in an export sense and in terms of tourism. There is certainly an opportunity in that regard.

Mr. Cummins apportions a specific figure to jobs created as a consequence of the reduction in VAT. Are all of these jobs directly related to the VAT decrease or have other initiatives taken by the Government to support tourism come into play?