Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

I oppose the section. I have argued that the VAT rate should be restored for the hotel sector, and there is clear evidence for that. Nonetheless, there are differences throughout the regions and we do not have in some areas the same kind of occupancy and rates being charged in some of the urban areas. We need to formulate innovative ways to support the sector in this respect. Even the Department's report indicated that this was not being passed on. We have some of the highest occupancy rates in Europe and the revenue per available room metric for Irish hotels indicates they are among the busiest and most lucrative in Europe, notwithstanding my comments on regional disparities.

The concern I have and my objection to the section relates to the increase in the VAT rate for the other parts of the tourism sector. It is not warranted at this point.

At the very least, it should have been increased incrementally as opposed to going from 9% up to 13.5% in one fell swoop. It would have been more appropriate to have increased it in a number of steps over a couple of years to help the sector. We are talking here about hairdressers and others in the tourism sector. While the tourism sector is doing well, it is not doing well everywhere. There is an uplift in many parts of the country but there are also major parts of this State that have not seen the economic recovery that is taking place in other parts, particularly in our capital city. That is why I oppose this section. In opposing the section I want to make it clear that, as Sinn Féin has argued, it was remiss of the Minister not to get rid of the relief for the hotel sector at an earlier stage. That being said, I acknowledge that he has moved on that now and I welcome that. However, it should have been done by way of separating hotel beds from the rest of the sector and then restoring the rate in an incremental way.