Michael Ring (Mayo, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I was not expecting the question on The Gathering, but I will answer off the top of my head. I will supply the figures. I am glad that the Chairman asked the question, as it gives me an opportunity to discuss the matter. The Gathering is going brilliantly. Our first quarter figures increased by more than 7.2%. Our North American, Italian, French, German and other markets are doing well, but the British market has been weak in recent years. The good news is that, for the first time in many years, there has been an increase in our British figures. It is not that the British traveller had been going elsewhere. With Britain's economy, people were simply not travelling at all.

The Gathering is not working because of my Department, Fáilte Ireland or Tourism Ireland, but because 15,000 to 16,000 Irish people attended public meetings in September, October, November and December and did something that I have not seen done for a long time, that being, they mobilised. As the Chairman and every elected representative knows, events are being held every weekend in every corner of this country. When my old school in Westport held its reunion last weekend, people came from England, America and across Europe. That experience is being replicated across the country. We were expecting the first quarter to be weak. The New Year's Eve and St. Patrick's Day celebrations had a good effect and April to July looks to be a promising period. I am confident that The Gathering will work because it is community led.

I compliment the country's communities and volunteers who are doing something instead of just talking. I thank the local authorities and public bodies for their funding. I also want to thank everyone who has played a part. I am confident that The Gathering will be a major success. We need to build a legacy out of it. People who visit our country this year will be our ambassadors for the coming years. They will take with them a good or a bad message about Ireland. I want it to be a good one, as tourism is important to us. We expect 325,000 extra visitors this year, providing revenue that is badly wanted. For every 35 visitors, a job is created. It is important that we make The Gathering a success.

The Chairman asked about VAT. When we entered into government, we targeted tourism as a priority for job creation. The Government reduced the VAT rate from 13% to 9%. It also changed PRSI rates for low-paid workers. We changed the visa rules so that people who had visas to visit Britain could continue into Ireland. This was a major problem, as a person from outside Europe could have waited as long as three months for an Irish visa. The new system is working well.

The VAT rate will continue this year. I have discussed the matter with the Minister for Finance, who knows my opinions on this issue. The current rate should be retained, although this is a matter for the Government. In 99.9% of cases, the reduction was passed on. For the first time, the general public saw a reduction in the cost of eating in restaurants. It helped the tourism trade. The recent budget introduced tax initiatives to help hoteliers to redevelop their properties. Their main problem relates to their borrowings. I recently attended a dinner in Limerick of 470 hoteliers. They were upbeat and believed they had turned a corner. This is an important year for them and I hope that we can support them. I also hope that the Government will see fit to leave VAT at its current rate for another two years at least.