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
3:55 pm
Mr. Adrian Cummins:
The report before the members was commissioned by the Minister for Transport, Tourism and Sport, Deputy Leo Varadkar. We hope that the Department of Finance and the Department of Transport, Tourism and Sport will come together and get the figures right. That report says it is costing the tourism industry €90 million, and we stand over that. It is a great deal of money in today's budget, but it is not a great deal when 9,000 jobs are created and many people are taken off the live register. There are huge savings for the Department of Social Protection in that regard. We will ramp up our efforts over the next month to get that message across clearly and distinctly.
With regard to the new types of tourism, I fully support the Deputy. We must look at all areas and, as I said earlier, every county must benefit from it. Senator Mullins and I are from the River Shannon area but there is no policy regarding the growth of waterways in Ireland as a tourism product. That could be done. Cruise hire on the River Shannon and on many inland waterways has declined rapidly. Angling tourism is being decimated by a number of issues that can be discussed at a later date. We must examine green ways and cycle routes, linking with the canals across the midlands as a cycle route. The Greenway in Mayo has worked and it is a huge benefit to that area. We must use our natural physical environment, our forestry through Coillte and walkways. Consider small towns and villages where there might be a small pub, shop and grocery. If tourists are brought to such areas, it brings life to the village. That is what we must consider so we can give them hope, to use President Obama's phrase. Unfortunately, in the tourism industry at present certain counties and regions are getting much more hope than other counties. Tourism is a 26-county industry for development; it is not just for specific centres. In respect of international promotion, it is a 32-county promotion through Tourism Ireland.
I am sure my colleagues will wish to give their own opinions on why the 9% rate should be retained, but I will first make a final point. When we conducted our roadshow around the country and talked to the businesses, one guy equated the 9% VAT rate to the corporation tax. The corporation tax is sacrosanct. For us, a change in the 9% will have international ramifications. It is not that it will increase by 1% or up to 13%, it is that Ireland will have become more expensive. Tour operators and the international travel media will be writing about this for two or three months and it will have a negative effect next year on tourism throughout the country.
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