Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

My argument could be summed up by, if not now, when? Yes, we do have parts of our country that are not doing as well as others, which I fully acknowledge, but we have an economy overall that is seeing very strong income and employment growth. The reality, as I look beyond this point, is that if we had made the choice to split the two and not to increase the rate for restaurants, then despite what the Deputy has said, it would never happen. If we had separated the two of them and made a move on hotels but not on other sectors, we would be breaking a link that has always been there. The Deputy may feel differently about it, and he clearly does, but I go back to a thread I have had in many of the different changes that we have argued. If a change is made that benefits many different sectors and we say that change is going to be temporary, if the change goes in one way, affecting all, then the logic I am now establishing is that it has to go in the other way, affecting all as well. If we end up in a place where we are happy to make changes that benefit all, but when we undo them, we are willing to allow the costs to be distributed in a different way, then the changes will never happen.

Yes, I acknowledge that, for those who are working in food or restaurants and some in tourism, this could have a different effect outside of the larger cities. I am aware of that. It was, however, because all of these arguments were put with regard to this relief that it did not change in the past. It is because all of these arguments are continually put with regard to different parts of our tax code that we have not been willing to make changes to reliefs at a time when changes should have been made. It is for that reason that the appropriate way to do this is to undo this change in the way that it was made in the first place. As I have said, if we do not do this now, in a few years’ time, we will still have different VAT rates in place in different sectors and with the same issue existing.