Oireachtas Joint and Select Committees

Tuesday, 17 September 2013

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Retention of 9% VAT Rate: Discussion with Restaurants Association of Ireland

3:35 pm

Mr. Adrian Cummins:

So the 9,000 jobs created in our industry equates to a saving to her Department of over €90 million. That is a something to which consideration should be given in the context of retaining the reduction. There is no doubt that the reduction to 9% has benefited every part of the tourism economy. I visited Inishbofin two or three weeks ago and I discovered that from a tourism point of view, it has had one of its best summers ever. The island seems to be doing well in the context of tourism promotion and the reduction to 9% has been greatly applauded by every business out there.

On creating more jobs for chefs, 2004 was the last year in which there was a national HR policy in respect of tourism. There is a need for a new policy. When we set down a HR policy, we also establish benchmarks such as the number of jobs to be created, the nature of the training to be given and the level of investment and resources required. Under such policies, we can also identify where skills shortages exist. There is an urgent need for such a policy to be developed by Fáilte Ireland or some other body with responsibility in this area.

Senator Quinn inquired about tourism growth, fishing and hunting. Tourism can be increased in every county in Ireland, not just the specific high-tourism destination areas such as the Ring of Kerry, Connemara and Dublin city centre. If one is a visitor from Britain, for instance, it does not matter whether one goes horse racing in Kildare, game fishing in Ballina or cruising on the River Shannon. Tourism is part of every town and area in Ireland. We need to get agencies and local authorities to understand that. As long as local authorities have a grasp of tourism then we will at least be going in the right direction. We need to make sure that the creation of jobs comes first. I read in today’s newspaper about a small café in Gort in County Galway that has to close its doors because of the outdoor seating charge. It is a bit of nonsense. We call it a sunshine tax, making people pay for having tables and chairs outside their premises. This year we had a good summer but we did not have a good summer in the previous ten to 14 years. That business only has 30 seats inside in the restaurant but it was able to put a couple of tables and chairs outside and now it is being penalised. It would have been brought to court and had a €5,000 fine imposed. What happened is that ten people have lost their jobs and the café has closed down. Local authorities must have more flexibility and look at what is fit for purpose.

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