James Reilly (Fine Gael) | Oireachtas source

I apologies for not being here earlier. I was in the Seanad and got waylaid on the way back.

I have read the delegates' documents and some of the comments they have made. I have a few questions. Some were asked already. If rates are not based on rent, as they are at present, on what should they be based?

I wish to comment on the positive element of the budget in regard to the VAT rate for the tourism and hospitality industry. That was much discussed because many people are very unhappy with the manner in which hotel prices have shot up, particularly in Dublin, and how, when there is an event on, there is what people clearly consider to be price gouging taking place, to the point where it was suggested that hotels should not be allowed to avail of the tax relief.

That is a matter the hotel industry needs to address because it will make it very difficult to argue for the retention of the lower rate in the future. That would be regrettable. There is no doubt that the Irish tourism industry is facing huge challenges but at the same time meeting them in many instances and exploring new markets. There are wonderful opportunities in a host of areas, particularly in respect of those aged between 65 and 80 who are healthy, relatively wealthy and looking for something to do but who would get turned off very quickly if they were being charged what I consider to be outrageous amounts for an hotel bedroom for a night.

I agree with the comments on reducing red tape. The Government has been attempting to do that through various mechanisms. The Government has been very strong on ensuring people take more pay home in their pocket by way of reducing income tax rather than driving up the cost of labour for both businesses and industry.

I strongly support the statements made on SMEs and I believe they have a huge role to play. They do play a huge role. Anything we can do to promote more innovation, as we have done through various other mechanisms in the budget, is to be welcomed. I do not disagree at all in terms of business being expected to pay for the full cost of water infrastructure or any other infrastructure for that matter.

Mr. Burke stated €220 million in rates is uncollected. Is that an annual figure or an accumulated amount? I do not have that information to hand.

The Government and committees have spent a lot of time trying to address the ever-rising cost of insurance. I do not refer to this committee in particular but to others. Everybody agrees this matter needs to be kept under review constantly. A whiplash injury in Ireland results in the claimant receiving €20,000, on average. In the United Kingdom, it is £9,000 or £6,000. I am not sure which but it is certainly less than half the award here. We need to get away from that culture.

The cost of legal expenses is not a matter we have touched upon much in this committee but I believe we are out of kilter with many other jurisdictions in this regard. I have quoted Americans who state that, in respect of the simple issue of conveyancing, they can complete their conveyancing tasks online in ten days. Here it seems to take months or years. For a substantial property with a long title, one is definitely facing a year.

If rates are not to be based on rent, how might they be assessed? We are all interested in keeping rates to a minimum but we are all cognisant of the fact that our local authorities need funding to deliver the services they deliver. I would like a comment from the Irish Hotels Federation on the high price of rooms.