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. Brian Fallon:

I thank the Chairman and the committee for such a positive response. We thought we would have to work really hard to convince the committee but the members already appear to be convinced that the VAT reduction has been a great success.

Adrian Cummins represents almost 1,000 restaurants in the country. I can outline the reality of what he has said. I have a restaurant in Dublin and one in Kildare. Undoubtedly, there are two tiers at work. In central Dublin, in Fallon & Byrne, we have approximately 160 staff. We have increased the number by approximately 10% in the last two years. There is no doubt that the VAT reduction has been a massive boost to us. It might sound a bit alarmist but it is simple mathematics that if the VAT increases, the number of our staff will decrease. It is that simple. Kildare is something of a struggle. As Deputy Lawlor knows, things are a little different outside the Pale. While we are seeing double digit growth in town, we are seeing double digit decline in Kildare, which is a little worrying. Only God knows where that will end.

With regard to chefs, this is something I have been shouting about for a long time. Driving through town today I passed two restaurants that had "Chefs wanted" signs in the windows. It is incredible. Many of our European counterparts cannot understand it. I have a friend who runs a catering school on the Costa del Sol and he just cannot believe we are in such dire straits for chefs. We are now looking outside the country for them, which is a cardinal sin with so many unemployed.

Again, I thank the committee for such a positive reception today.

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