Mr. Ger Gibbons:

Coming back on this topic again, if I remember correctly, when the subsidy was in place up to 2018 the Revenue Commissioners did an analysis, in the summer of 2018 I think. The conclusion was the measure introduced in 2011 at most saved about 8,000 jobs. That was the analysis of the Revenue Commissioners. Those jobs were primarily saved in the first couple of years, in 2011 and 2012, and perhaps in 2013. I just did a quick estimate, and the €3.2 billion that it cost equated to a cost of about €400,000 per each of the 8,000 jobs saved in the first couple of years. The average wage in this sector now is €475 a week. As Dr. McDonnell was saying, we do not think it is the best use of this money. There are issues around cafes and coffee shops and all of that, but work we did years ago showed most of the fast food sold in Ireland is sold at petrol stations. I think that was a surprise to us at the time. Those are the companies that will benefit most from this measure and not the independent coffee shops we would like to see saved. Again, as Dr. McDonnell was saying, it is the opportunity cost of this measure that is the issue. It is a hugely expensive subsidy. In a way, the fact that it so dominates the conversation about this sector sort of distorts the real issues that need to be addressed in it.

If everybody is only talking about a 9% VAT rate, they not addressing the real issues. It benefited a relatively small number of very large companies in the past. I can understand - politicians all come under huge pressure because of this. We see it in our work as well but it deflects from the real issues to be addressed in the sector.