Jack Wall (Kildare South, Labour)

I am delighted the Minister is in favour of investigating the matter and having it rectified. The situation is counterproductive, given what the Arts Council is attempting to achieve. On the one hand, the council gives grants to festivals while, on the other, the 21% VAT rate is applied. This does not help to attract the artists who would make a difference. In many instances, local organising committees must give huge incentives to assist fund-raising. If the 21% rate did not apply, it would be far easier for them to get the best artists and advance their festivals through the addition of workshops and so on but that is not possible due to the huge incentives needed to attract the artists in the first place. The 21% rate is prohibitive. I am pleased to note it is the Minister's intention to deal with the matter and consult the Minister for Finance. We will keep in contact in this regard because the issue has a major effect. Whether a festival is small or large, the VAT rate is a major impediment to its progress. It is welcome the Minister has been briefed and that some action will be taken.

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