Dáil debates

Thursday, 25 October 2007

4:00 pm

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)

This is too broad a question to deal with in a few minutes. A matter that is on the mind of those in the tourism industry is competitiveness. I am conscious that Deputy Brennan is the Minister for Arts, Sport and Tourism but he is aware this is a cross-cutting sector, involving a number of areas. It is up to the Minister to ensure other Ministers, whose areas have an impact on tourism, deal with the issues of competitiveness, costs to hotels, tourist attractions and difficulties of access. The Minister must bring urgency to these areas, which have an impact on tourism. It will become more difficult in the future.

There are tax matters to be considered in the budget. The tourism strategy refers to excise duties on wine. There may be reasons not to reduce the price of alcohol but it is a cost to which European visitors refer as expensive. European visitors who are accustomed to wine at a lower price find it, among other things, a major cost.

I urge the Minister to be conscious of the EU review of VAT rates. At present the areas that will attract a preferential rate, lower than the standard rate of 21%, do not include food, accommodation and the hotel sector. Those in the accommodation industry hope that this is a mistake but it is important this matter is brought to the attention of the EU. The rate here is 13.5% but that is higher than many of our competitors, which has an impact on competitiveness. As the Minister for Arts, Sport and Tourism he must be responsible for more than just the matters within his remit. He should bring such matters to the attention of other Ministers.

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