Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

That is fair enough. The Minister should take it when it is given to him. The issue is, when it is reversed, the impact is the same. The question is whether the industry is robust enough to withstand that impact. Of course the hotel sector, where many of the beds are located, is robust enough because of all the metrics about which we have talked. The issue with the other sector is that there are parts of it that are not able to withstand it or on which it will have a detrimental impact.

The Minister summed up his question as: if not now, when? Let me sum up the answer for him. In this Finance Bill he could raise the rate on the other sectors to 11%, taking effect from 1 January 2019, and increase it in this Finance Bill to 13.5% in the subsequent year. It is not the case that if he does not do it now, he will never do it. He can take these steps now, as we have done in respect of other legislation with which I do not agree. For example, mortgage interest relief is being stepped down every year for a number of years. When we dealt with mortgage interest relief for landlords, it was being increased by 5% every year. That was put into our legislation. We did this in a number of other areas as well.

It could be done like that if the Minister so desired, given he has clearly acknowledged that the sudden impact of a 4.5% increase in VAT may not be as easily absorbed in the sectors in question as in others. The Minister should legislate for the increase in a stepped way, which allows the sectors a bit of breathing space in that, while they would take a hit because the rate would increase next year, it would allow them time to factor in that it will increase to the full 13.5%.