Kevin Humphreys (Labour) | Oireachtas source

Mr. Cummins is misunderstanding my question. I accept there are EU rules on VAT. However, if one puts the value of the 9% rate in real terms it comes to hundreds of millions of euro. If the rate were returned to 13.5%, it would yield between €500 million and €600 million. In turn, that could be spent in a more targeted manner in assisting growth in the tourism industry in rural areas. For example, assistance required by Border counties to deal with Brexit issues or investment in the Wild Atlantic Way and Ireland's Ancient East could come from this tax take. We have to be much smarter in how we spend our money to make the best hit.

There are hotels near where I live which are running at a 92% occupancy rate and management have to put on a night-time shift to turn rooms around. However, that is not happening across the country. The hotel in Dublin with 92% occupancy rates is benefiting from this foregone tax yield when hotels in west Cork or Clare may need targeted financial assistance to ensure they can stay open. We may have to be more intelligent in how we spend a foregone tax of €600 million. One of the biggest arguments against the reduction of the VAT rate is that once it is introduced, it is hard to go back on it.