Seán Canney (Galway East, Independent) | Oireachtas source

I welcome the witnesses. Listening to the commentary both from the witnesses and the members, the first thing I want to say is in reply to Deputy Michael Healy-Rae. Galway is coming up close to Kerry now from a tourism point of view. We are clipping at Kerry's ankles at the moment and we will catch them next year in the all-Ireland final and that will do us.

On a more serious note, we are talking about something that is very important. The witnesses explained everything about the industry, whether it be hotels, restaurants or pubs, and the impact it has on the economy. One of the things that is coming clear to me is the fact that the 9% VAT rate is something that should be set and dispensed with and not to have it as a cliff edge every year when the budget comes around so businesses can plan and will know what their outlays will be. One of the messages that I am getting from the witnesses is that the 9% VAT rate should be set as a standard and become a permanent part of the tax code from now on so that at least we know where we are going.

I am not sure the accommodation tax would work, but I will concerns, similar to Mr. Gallagher, because I believe that will affect hotels only where accommodation is being offered, whereas it will not affect restaurants, pubs or whatever. Taking that into account, it would be a retrograde step to bring that in. It is something that we have to examine. Coming back to the issue of when a measure is brought in, has it been sweated properly first to see the impact and perhaps some of the consequences that were not intended that can happen and can be negative?

I come from north Galway where some tourism is based on heritage. We have some beautiful places that are part of Ireland’s hidden heartland. It is aptly named because much of it is hidden. There are some great places. For instance, Galway city, Athlone and all of these places have the big hotels, whereas we have family-run hotels. Those are the hotels that keep the economy going in the Tuams, the Gorts, the Loughreas or whatever. They are the local employers. They are the places that if we were attracting a foreign direct investor into a regional town, they would look at the facilities that are in place. One of the things they look at is accommodation, be it hotel accommodation or restaurants, and what the whole make-up of the living environment is to attract the best people. That is something that the hospitality sector plays a huge role in. Even though it might not set out to do it, it does it.

Going back to my background, over a span of 25 years I was involved in the construction of many hotels. I know the standard that they are built to, the standard they are completed to and the pride that the owners take in them. These are owner-occupiers, as I would call them. They take great pride in the fact that they have a top-class product. When one compares what we have with, say, San Francisco or New York or whatever, I think we have a better quality hotel in a beautiful location. We have to take that as being an asset rather than being something that is taxed to the hilt. It is important that we kind of calibrate how we deal with the industry.

Pubs are struggling, especially in rural towns and areas, because life has changed for many people. Socialising has changed. People might go out now for a drink early on a Sunday evening and come home again early. They might spend a shorter time in the pub or whatever. The publican has to adapt to this. Some publicans have also decided to go into the food business. However, that does not mean a person brings in a toaster and a microwave and off they go. A kitchen has to be put in and standards have to be met. All of that is an investment. The investment is such that one has to get it back in a certain period. It is great just to be doing that in an uncertain time.

With the recommendations that the tax commission has come up with, we should dispense with some of them that it had very early so that we can say that these do not apply because we will not introduce them. I was struck by what Mr. Cummins said about the latte tax, the sugar tax or the cup tax. These are things that are being brought in to improve our environment and an adaptation that has to be done by industry. Globally, we have to do this. We have to do that together. We have to look at it in a way that we actually get it right and do not make a mess of it. There are complications when bringing in something such as this, so we have test that and sweat it as well.

If we do not have a thriving hospitality and hotel sector, we will be at a loss, even from the point of view of attracting the best people that we want into this country to help us. At a time we are looking for staff, it is most important. I am posing a question about taxation and all of this. Leaving aside all of this, is staffing a big challenge? Is it a just a seasonal issue? Some hotels are finding it hard to get staff, especially chefs and so on. It is creating a demand for them and increasing the cost of hiring them. Have the witnesses any comments on that?