Oireachtas Joint and Select Committees
Wednesday, 23 November 2022
Committee on Budgetary Oversight
Report of the Commission on Taxation and Welfare: Discussion (Resumed)
Michael Healy-Rae (Kerry, Independent) | Oireachtas source
First, I warmly welcome the witnesses. I appreciate their time, their experience in their fields and I thank them for their representation not just now but particularly during the pandemic. I come from the tourism capital of the world, that is County Kerry, and everybody knows and acknowledges we do tourism better than anywhere else, not just in Ireland but throughout Europe and the whole world. Places like Killarney are the leading crown in the tourism industry worldwide. Being a representative from that county, I am acutely tuned into the finances of restaurants, guesthouses, hotels and people in the hospitality sector. I hold my clinics in many of those places and I hear first-hand exactly what is happening.
It is ironic that during the pandemic when the actual facilities were closed and hotels were not able to function at all, it is an awful thing to say but financially they were nearly more secure than they are at present. I do not want to exaggerate because I do not ever want to be accused of exaggerating a situation but the reason I am so fearful now is the massive hike in energy costs. I am looking at respectable people like Deputy Durkan who is here a lifetime and, as I always do, I acknowledge the work and the efforts of the Government such as the great work done during the pandemic in supporting industries, not least the hospitality sector. I also acknowledge the efforts made in the budget regarding the assistance that will be there for business regarding energy costs. To be honest, it will be like a spit in the ocean because the representatives here today or anyone who operates any type of a hotel, and restaurants owners as well, will know the massive increase in the energy costs. Running ovens, heating systems and literally keeping the lights on, costs an absolute fortune. In the hotels we are talking about, this is so important. The Government created uncertainty and anguish in the budget in not telling us it was going to continue with the 9% and in other words that we were being thrown to the wolves. It is quite simply not acceptable. Governments have done U-turns before and when they do, I do not even like using the term U-turn. I call it listening to the people and to the sectors. I hope the Government will actually listen to the representatives who are here tonight, the well-meaning, good people who have come to give their views on behalf of the people in their organisations, and will say they actually got it wrong and have to support the hospitality sector further. In fairness, it kept us alive when we were shut. Why would they want to do anything to endanger us now?
I am really fearful for some businesses. I have seen so many public houses close for instance. I do between 50 and 60 clinics every four weeks in County Kerry for the past 25 years. I started off doing clinics with my late father Jackie. I do what we call the runs at night where you might visit ten or 15 places between hotels, community centres, schools and different places such as meetings halls, but predominately public houses. How sad it is for me now to pass pubs which were once vibrant and where there were people. Now I am passing and the lights are off and there are no cars outside the door. The building in some cases is derelict and in other cases the people are living upstairs but the lights and the fire that used be on downstairs are gone. The merriment that went on inside in those places is silent and that is so sad. I do not want to see that happening to our hotels or to our restaurants.
I will start off first of all in County Kerry. In defence of the prices being charged, I do not ever want to see people being charged too much for accommodation, for staying overnight or for the meals or anything like that, but I would be the first person - I do not care whether the hotel is here in Dublin, in Wicklow or in Kerry - to defend them as what they are trying to do is keep the doors open and keep the lights on. If they are charging more than we would like them to charge, does anybody think that it might be to do with insurance, energy, wages and all the different things? My goodness when you open a door, whether you are the manager of the hotel or the person sweeping the floor, between the Irish Music Rights Organisation, IMRO, and every type of person who comes and bangs on your door saying I want, I want, I want, all they are looking for is whatever they can take out of your establishment. You have to bring in enough money every day to try to make a modest profit at the end of the year.
They talk about bigger business. Of course, predominately being a rural-based politician, it might be said I represent small business, but I also readily acknowledge that the bigger the business, the bigger the heartache, the bills, the responsibilities and the wages. Some people seem to think it is no bother to them because they are a big group. My goodness, big responsibilities follow from being part of or being a big group. It is not all sunshine and light and the grass is always greener on the other side of the ditch. What I want to say to the people who are here is that I want to see common sense prevailing. I am not a person to attack the Government or say to hell with them, they are doing no good. It is the exact opposite. I want to debate my points in a reasonable way.
Could the Government please consider this and listen to the group? That is what I see coming out of the witnesses being here this evening.
I politely remind those who are talking about spreading the tax base and trying to get more tax out of people that you can squeeze only so much out of anything and cannot get blood out of the turnip. For God's sake, you have to remember these things. It is very easy for people in offices to imagine how to get more money from people in business, but businesses can pay and give only so much. The people who really understand business are those who are at it. A small employer, like me, knows how difficult it is. When I started off, I thought it was normal for the sheriff to write to people every month. When I was starting out, I thought there was something wrong with me if I did not get a letter from the sheriff every month. I knew the sheriff personally. God be good to him, he has gone to his reward, but there were plenty of times that I used to pray for him because my heart used to be in my mouth when opening the brown letters that came. I used to imagine the authorities coming the next day to seize something. That is what it is to start out in business; that is the reality of business. That is what it really means to be starting with nothing, trying to keep the show on the road, your taxes right and bills paid, and trying to have enough to keep going until the next week.
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