Ms Lorraine Higgins:

I thank Deputy Smith and Dr. McDonnell for their questions. Deputy Smith makes a plausible point. As somebody from the west of Ireland I know the importance of a proper functioning transport network in order to ensure connectivity on many levels. I would caution that despite CSO figures, many of our members are reporting a dip in sales, which is quite significant in some cases, particularly tourist-facing businesses in Dublin. One in particular has reported a 30% decline. That would not be the case in Cork and Limerick. It is important that we have a strong capital city. Part and parcel of what we do is to articulate these concerns to policy and decision makers. While we are involved in intensive talks with Enterprise Ireland to develop new markets for retailers we need to see what is on our doorstep and new ideas need to be welcomed.

What we want out of this report is to ensure that our proposals are acted on. We do not want it gathering dust on a shelf. We want a commitment. The upcoming budget is quite important. The reduction of value added tax, VAT, would be a critical factor in the survival and strengthening of the retail industry. It is hard enough for us to deal with sterling devaluation but when VAT is 3% higher here than in the UK that presents difficulties. I gave the figures for how much is spent online hourly. It is very important that retail is at the heart of the tourism strategy. Very often retail is forgotten despite our being the largest private industry employer on the island. We must be mindful also that tourists spend between 15% and 70% of their budget on retail in this country. Any way we can encourage them to spend at the upper end rather than the lower end is a good thing. I have been working with the Department of Foreign Affairs and Trade to increase awareness of the VAT back scheme.

I am in the process of devising a poster campaign for non-EU embassies in India, China and the United Arab Emirates to highlight the fact that tourists who spend money in retail outlets can get 23% back. We also need to look to the EU. Part of this strategy we have put in place regarding the future of an Enterprise service between Belfast and Dublin relates to Trans-European Transport Networks, TEN-T, funding. The last programme was negotiated in 2014 and approximately €20 billion is available for all member states. Ireland has benefitted from it. Shannon Foynes Port in Limerick is one such example. Generally, one criterion for availing of funding is that there be a critical mass of population. Why should the east of Ireland not benefit? I know the west has been discounted because that critical mass of population is not there. I imagine the next programme will be up for negotiation fairly soon because the next tranche of funding will be announced after 2020. Our proposal could fit in nicely with that, which is why we are focused on that.