Mr. Liam Berney:

The problem as we see it is that the VAT reduction has been used to increase profits. That is evidenced by what the Deputy has just said about the cost of hotel rooms today. It has been used to increase profits and has not been used in a way that has seen the development of the sector in any significant way. It was not necessary in order for the sector to develop. In terms of how the State spends its money on the resources it has, we do not believe that it is a necessary subsidy at this point in time and, therefore, we are arguing that the VAT rate should be normalised and the money should be used on the priorities that we have identified in our pre-budget submission around the issues of child care, infrastructure development, housing and homelessness. When one is in an emergency one has to take emergency measures. We have been saying this for a while; this is not the first pre-budget submission where we have talked about a reduction in the VAT rate. We have been saying this since before Brexit was a reality.

To respond to a point raised by Deputy Chambers, it is not as if the workers in the sector have benefitted from a reduced VAT rate. These employers refuse to engage in the joint labour committee system that is established for collective bargaining in that sector. Our approach was described as being aggressive. It is not aggressive. There is no partnership work in this sector at all. It is being used purely to profit take, and we see no justification for its continuance.