Oireachtas Joint and Select Committees

Tuesday, 2 June 2020

Special Committee on Covid-19 Response

Travel Restrictions

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail) | Oireachtas source

Listening to the scenario being painted for us today, it is clear to me that we are going to be in one serious economic mess all through this year and, indeed, next year. We now need to plan rapidly for the Irish tourism and transport sectors.

I am from Carlow–Kilkenny. As people were speaking and addressing questions, I could think only of its hospitality sector, from the smallest bed and breakfast business to the range of hotels, including Mount Juliet, which rely so heavily on tourists coming to this country. The number of people travelling to Ireland is down to 1%. Visitor numbers in Kilkenny Castle will drop dramatically and the businesses that rely on it will suffer seriously. That is what is being explained to us in stark detail today. The cancellations right across the sector are for both this year and next so there will have to be an urgent Government response if we are to keep afloat those that will be able to stay afloat beyond 2021. What is happening is quite shocking.

I have seen tourists who come to this country stop at Kilkenny Castle. They often come to Ireland through Europe in groups, including from Asia, and visit Kilkenny and various spots around it. What is happening is quite concerning. Whatever Government will be in power and those who are talking about Government formation would certainly want to consider this matter and devise a plan to rescue the sector.

Over 10,000 are employed in the coach travel sector. In addition, there are the various small bus operators that rely on tourism and the school bus operators. There is to be a frightening change to how they are going to approach their business. The operator of a 53-seater bus, valued at €350,000 plus VAT and requiring 80% capacity on any route, will now be able to carry only 13 passengers if all the regulations are applied. What is the plan to save the tourism sector? What is the plan to consider further the inclusion of the private sector on the public service obligation routes? Will there be 0% VAT? Will the private operators be allowed to reclaim the VAT considering the arrangements they had in the past? Will there be a refund of excise duty? These are all major questions that will have an impact on our economy and the finances of the State.

I ask the witness from the Department of Foreign Affairs and Trade about international networks. I compliment Mr. Burgess, his officials and the Minister on their excellent response, and they are an example for others to follow in how they deal with matters immediately. What about the Department's networks? Are they engaging in order to try to have some sort of plan that is agreed within Europe and beyond in how to manage tourists? Will we see that type of plan emerging? If so, when will that happen?

There have been recommendations made to the Minister regarding transport. It was late April and May when representatives of the transport sector wrote to us and the Department but there is no plan there yet. There is an urgent need for a plan. The Department of Health did this with respect to private hospitals and so on. There is clearly an urgent need for a plan in order to save these sectors and for supports to be put in place immediately.

Comments

No comments

Log in or join to post a public comment.