Mr. Ger Gibbons:

We do not underestimate the importance of this sector. If you look at the measures that have been taken over the past number of years, the reduced VAT rate that was introduced in 2011 and lasted until 2018 cost about €3.2 billion. When it was reintroduced as we were beginning to come out of Covid, that cost €1.2 billion. It has cost €4.5 billion so far. While it was in place in previous years, the Department of Finance did an analysis and its polite conclusion was the subsidy was not used to increase productivity. The profits increased but there was no increase in productivity in this sector. It is a very expensive subsidy that does not really work. That is not to say there are not challenges in this sector.

Any time I go into a restaurant or takeaway, I see people coming in and out to deliver food and the rise of the platform economy. That is a challenge the sector is facing. They cannot all make money from the same production of food. There is another piece of European legislation Ireland has agreed to and is supposed to implement by next summer, namely, the platform work directive. That is aimed at trying to secure better terms and conditions for workers such as delivery drivers - the guys who go out on bikes and can be seen all around the city and towns like Navan.

We have not had any engagement with the Government on this. We would like to sit down with the Government, the Department of enterprise and with employers to discuss the issues. We will not agree on everything but we think there is a way of addressing the real concerns there rather than giving another subsidy that does not really work. If it does come in, it will cost about €800 million. If it lasts four years, that is another €3.2 billion. That is a huge amount of money and we do not think it is the best use of that money. There is so much more that could be done with that money over the coming years than what is currently being suggested for it.