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

3:45 pm

Photo of Michael MullinsMichael Mullins (Fine Gael) | Oireachtas source

I hope we will be able to prolong their stay and keep them for the October fair in Ballinasloe. I very much welcome the fact that the Chairman has indicated that he will bring the relevant Departments together to see how skills shortages and the shortage of chefs can be addressed. It seems ludicrous that so many people are emigrating when there are obvious career opportunities for young people and that we cannot sort out the problem once and for all. We must focus and see how we can get more people into the supply chain.

I strongly support the notion of keeping the VAT rate at 9%. There is no doubt it has been a great success. Mr. Cummins correctly said that agriculture and tourism have been the two areas in which we have seen significant job growth in the past two years. I hope we can build on the successes of 2013 with The Gathering and that many people who have had a good experience in this country in the past year will return or will spread the word and their contacts and relatives will make their way here next year. What is significant is that it would appear that the majority of restaurants have passed on the VAT reduction. There is no doubt there is much better value to be had in restaurants around the country. If customers get good value and service, that is what will bring them back. There is a strong emphasis in most establishments on looking after the customer. Senator Quinn is someone who always talks about care of the customer and ensuring that their experience is good whether they go into a store or a restaurant. There is no doubt that if one has a good experience one will tell a few but if one has a bad experience one will tell many. I compliment the work of the Restaurants Association of Ireland in recent years in instilling in their members the importance of looking after the customer. I will do everything possible to ensure we keep the VAT rate at 9%.

Following on from Deputy Kyne’s question about the €90 million cost, I can see the difficulty the Minister might have with the figure of €360 million in some of the areas that were included as part of the overall VAT reduction package. I would not be surprised if there were a change but I hope the 9% VAT rate is retained for the hospitality industry and the tourism sector.

Comments

No comments

Log in or join to post a public comment.