Christopher O'Sullivan (Cork South West, Fianna Fail) | Oireachtas source

I return to the issue of price spikes. Senator Cassells aimed much of his questioning on this issue at the representatives from ITIC. To give some balance, I will address my questions to the witnesses from the Irish Hotels Federation. Mr. Kelly mentioned the reputational damage caused by price spikes, price gouging or whatever one likes to call it. Many members of this committee have worked with members of the Irish Hotels Federation and other accommodation providers right across Ireland to make the case for the retention of the 9% VAT rate. I organised a very impactful meeting between members of the industry in my locality and the Minister for Finance, Deputy Michael McGrath, to make that case. We did so on the basis of the genuine challenges members of the hospitality sector, particularly in rural Ireland and the regions, were facing by way of energy costs, wage costs, etc. These mainly family-run hotels were not increasing their prices or practising price gouging. The Minister listened and the VAT rate was retained at 9%.

A few weeks later, however, St. Patrick's Day came and the headlines, once again and specifically relating to Dublin hotels, were that price gouging was back, with €600, €700 or €800 being at the lower end of what was being charged per night. The Minister was handed something of a hospital pass on this because he was not Minister for Finance when the original decision was made. That price gouging coming just a few weeks after the decision to retain the lower VAT rate was an "up yours" to the Minister. It was an insult to the owners of the family-run hotels in the regional parts of Ireland who do not participate in price gouging.

I wonder about the witnesses' thoughts on that. Do they agree that it is an insult and an "up yours" to the Minister and to the members who work so hard to keep their rates so competitive?