Mr. Stephen McNally:

It is important to note that the JLC for the hotel sector was struck down in 2011. It is no coincidence that when the JLC was struck down that 30,000 jobs were created. That is a direct answer to the question.

It is also important to note the following. In the hotel business the minimum level is the entry rate to the business. We have found that it provides a level playing field for all businesses. The point of JLCs distorts the level playing field. That means when employees go to work on their career they have options. When there is a level playing field it is much easier to administer as well, which is also important.

We are delighted that tourism numbers have moved forward since the VAT rate was introduced. The 30,000 jobs were also assisted by the move and led to a huge increase in jobs. There are a number of issues. In 2011, we had 5.95 million foreign visits here and in 2015, we are looking at 7.6 million visitors. Two things happened, the VAT rate was introduced and landing charges.

Yesterday the Government set out a good policy to cover the next few years in terms of where we are going and we now have a roadmap to get 10 million visitors. The easiest way to hijack that goal would be to get rid of the VAT rate now when, in fact, we have proved that the numbers will come into the country. What our country needed, throughout this economic recovery, was spend from outside of Ireland. What that created, through us becoming competitiveness, was that spend from outside of Ireland came into Ireland.

From a satisfaction point of view, a Fáilte Ireland survey states that foreign visitors now say we are very good value and we are at the highest level than we have been for years. I contest that the decreases in VAT have been passed on to the customer, which is important.

Finally, there has been a lot of media speculation on how the recovery happened. We must remember, not unlike the other industry sitting beside me, that a lot of this has happened in the urban areas, particularly Dublin, Cork and Galway. Outside of those locations a lot of businesses are struggling. There is no doubt that they are struggling to stay open. At least 150 colleague hotels still remain unresolved and are financially unstable. The majority of them are based in rural areas around the country.

It is also important for us to note that every town and village in the country has a hotel or a guesthouse which often creates the first job for people. Personally, my first job was at the age of 14 or 15. It meant I was able to go into the industry and gain confidence. I was happy to get the minimum pay rate or the rate that existed because the job was all about me getting confidence. That is what we do, whether we are in retail, hotels or hospitality - we give people that first leg up.

I also note that lots of students work in our industry. Our hotels are busy at the weekends with weddings, functions, etc. During the week students go to college but at the weekend their work in the industry finances their college years. That is the way it works. The industry is very much based on supply and demand and works for all parties. It is important that we take all these points into consideration.