John O'Donoghue (Kerry South, Fianna Fail)

Registered hotels are obliged to notify the maximum rack rent they will charge for the following season to Fáilte Ireland. They are prohibited from charging above that rack rent. The difficulty highlighted by Deputy Wall relates to hotels which for a long period of the year charge X amount and suddenly increase their price to X plus Y, up to the maximum amount of the rack rent which they have notified to Fáilte Ireland. Invariably this is done when demand is highest. It is a practice of which I disapprove but the hotels are legally entitled to do it, having notified the maximum rack rent. They are not entitled to exceed the maximum rack rent.

The reason visitors to the country have little complaint about the cost of accommodation overall is the variety of accommodation available. There is a choice of really good accommodation at reasonable rates throughout the country. This is appreciated by most people. Nonetheless, I accept Deputy Wall's point that there have been times, and it continues as a practice, where rates are driven up unreasonably because demand is high. It is part of the market.

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