Mr. Paul Gallagher:

The reluctance of the hotel industry to absorb an additional tax that would have to be passed on to consumers, places our hotels at a disadvantage when customers are weighing up where they might travel to. In Scotland, it is the complete reverse of Ireland. Some 70% of all of Scotland's customers are actually from the UK; 30% are from overseas. It is the flip for Ireland. Some 70% of all our customers are from overseas and 30% of all our revenue customers are from Ireland. It would place us at a huge disadvantage when we are looking to compete in the overseas markets in order to attract consumers. Quite honestly, the level of taxation applied or enforced on the hotel industry is already extraordinary. We have not even mentioned local authority rates. Some 800 hotels in Ireland pay 12% of the total rates bill for the whole country. It is simply unsustainable. For example, across the road I pay €87,000 for a 67-bedroomed hotel whether those beds are occupied or not. It is an extraordinary burden we already bare. Notwithstanding the Government wanting to broaden the base, I am not sure you will find us willing participants in doing so.