Oireachtas Joint and Select Committees

Wednesday, 20 September 2017

Committee on Budgetary Oversight

Ex-ante Scrutiny of Budget 2018: Nevin Economic Research Institute, Irish Congress of Trade Unions, Irish Tax Institute and Chambers Ireland

9:00 am

Photo of Lisa ChambersLisa Chambers (Mayo, Fianna Fail) | Oireachtas source

I thank Mr. Talbot for his presentation. The Chairman talked about the presentation from ICTU and its very strong proposal that the VAT rate should be increased. Part of that is coming from the fact that it is still perceived as a very low paying sector and that the benefit in the reduction of VAT has not been passed on to employees or, if it has, it is marginal. I would like to hear Mr. Talbot's views on that. It is very difficult to maintain the VAT rate at 9% when there are hoteliers in Dublin charging €600 for a room without breakfast. There is a regional aspect to it. In the west of Ireland, which I represent, it is vastly different to Dublin. How do we deal with that? It seems as though there are huge profits being made in some urban centres, with the benefit not being passed on to the employees and the price reductions not being passed on to the consumer.

In terms of preparedness for Brexit, how prepared does Mr. Talbot think his members are? Are there any things we should be taking into consideration for the budget for next year and for the committee's work into the future in terms of helping Chambers Ireland members?

Mr. Talbot spoke about the need for investment in transport, broadband and infrastructure. In the west of Ireland, there is a massive infrastructure deficit and broadband is a huge issue. It appears that lots of the resources available are being pumped into infrastructure projects in urban areas. While we need that because we have populations migrating east - if they are not emigrating - it is creating huge problems for us in the west of Ireland.

What are Mr. Talbot's thoughts in terms of regional balance for this budget? Are we in the west of Ireland getting our fair share of the investment in infrastructure as opposed to the rest of the country? In terms of job creation, there are now people commuting exceptionally long distances. They are spending a lot of time in their cars and on trains, increasing the time away from their families. It is having a devastating impact on family life, on mental health and on all those other factors. What are the members of Chambers Ireland saying about that? From where are they getting their pool of people? Obviously the housing issue is definitely having an impact on that, but the fact that our investment in infrastructure and capital is so weighted towards the urban centres means that we are not giving the regions a fair chance at providing that employment and assisting them to keep people in those areas.

My final question is on climate change. I know Mr. Talbot has touched on this and on the need to address these issues. This country is looking at substantial fines. How prepared is the business community to adapt to any budgetary measures which might be introduced in order to tackle emissions targets? Has Mr. Talbot's organisation done any work on how industry and businesses might cope with the huge fines we may face? How receptive are they to doing their fair share in terms of reducing emissions?

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