James Reilly (Fine Gael) | Oireachtas source

We need to be clear that the argument does not stack up. The average rate quoted is a rate per annum and it does not catch the peaks, which I call "the peaks of abuse". What they are based on is what the hotels feel the market and the customer will bear. That is the long and the short of it. I have a lot of time for the hotel industry, which is a hugely important one to our tourism. We want to support it. However, if the industry is not prepared to address this issue where super profits are being sought on these weekends, there will be a public outcry for Government action. I advise the witnesses that this was already looked at and decided against on this occasion. However, the clamour for action will grow stronger if something is not done about it. We do not want to see the hotel industry destroyed and I want to see the 9% VAT rate remain, as do my colleagues. However, the issue is whether we are going to be listened to about this obvious and clear practice. No disrespect to the witnesses, but their arguments lack any credibility. There may be capacity issues, but they do not result in this peak of abuse in the rates being sought. If we follow that argument to its natural conclusion, we will be told when we have sorted out the capacity issue that hotels cannot sustain themselves for the rest of the year because they will have empty beds.

The federation cannot have it both ways. There has to be an acknowledgment that super prices are being demanded for these events. Perhaps the federation is throwing down a challenge to us. Maybe the committee needs to retrospectively investigate how many rooms were let at the super price and how many were let at the proper price that is normally charged to ascertain whether the percentage of rooms in the first category is truly just 5%. I have a sneaking suspicion that anybody who telephones two weeks before an event will find that the rates for the weekend in question are at the higher level. We are trying to help here. We do not want to castigate the witnesses or beat them up. We want to send a strong message that this issue has to be addressed. I ask Mr. Fenn and Mr. Dolan not to ask the committee to believe it is not an issue because we are hearing about it all the time from business men and woman who find when they come to this country that the rates have shot up by comparison with what has been described as the usual corporate rate. Not every company is in the nice position of being able to block-book a rate for the year for its employees. Many people come to this country on a regular but unpredictable basis. They do their business when the opportunity arises. That is the reality of life.