Mr. Adrian Cummins:

I thank the Deputy. The reduction of the VAT rate from 13.5% to 9% for food-led businesses would cost €540 million, as per the Department of Finance. When we reduced it the previous time, from 2011 to 2014, the industry created 31,500 jobs back then. This is about protecting jobs and we believe that if the VAT rate was reduced, businesses would be able to open for longer hours and open on Mondays and Tuesdays. They are not doing that at present. We think 9% is the correct rate for VAT. When Ireland is benchmarked against the rest of the European Union, Ireland's rate of 13.5% for hospitality is the second highest, after Denmark. If the VAT rate was reduced to 9%, it would be brought down to the average across the European Union. If we are to be serious about our competitiveness for tourism, 9% is the correct VAT rate for us.