Dáil debates

Thursday, 9 July 2009

Local Government (Charges) Bill 2009 [Seanad]: Committee and Remaining Stages

 

12:00 pm

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

I thank the Minister for his response. I have just spoken on this topic and do not want to repeat what I said. However, I want to convey to the Minister that this is an industry in crisis, haemorrhaging jobs and losing infrastructure. The departure tax has done irreparable damage to hotels and B&Bs and this tax means wipe-out for many people in the self-catering sector. That is no exaggeration. Many feel this is the thin end of the wedge and a €200 charge this year might be €2,000 before we blink. Even if the fee does not increase, this will be the extra cost that drives many businesses over the edge. They are slashing, even halving, their prices to salvage an income out of a maximum 14 weeks season when demand is down to keep any kind of bookings coming in. These businesses are in real trouble.

I plead with the Minister to consider these self-catering holiday homes that are registered with Fáilte Ireland. They already pay €200 to register. This will drive many people into the black market. My main concern is to maintain jobs in the tourism industry. The Minister stated that they will not have to pay the charge if they are paying rates. They are making a local contribution. It may not be rates but they are paying water charges, refuse charges and an additional fee for a building energy rating, BER, certificate for each holiday letting, introduced by the Minister's Department. They also pay national taxes such as corporate tax, income tax and VAT. Many cannot afford to pay the interest on their debts. We are driving people out of business. Many of them face ruination. They owe money to the banks which will sell their bad debts to the taxpayer. This makes no sense from anybody's perspective, and the Exchequer will lose more money than it can ever hope to gain from this tax. I ask the Minister to consider these businesses. I understand the total cost would be €2 million if the Minister were to exempt the registered properties.

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