Mary Upton (Dublin South Central, Labour)

I thank the Minister for his very extensive reply. Part of my question specifically related to rates and the Minister addressed it to some extent. I understand there is a balance between the local authority needing the rates and the cost to the hotel sector. At present, the hotel sector is considered to be in debt to the order of approximately €6.7 billion; a phenomenal amount of money, almost at Irish Nationwide levels, and reckoned to be at approximately €110,000 per bed.

The Irish Hotels Federation makes the point that rates are set based on the size of premises and have nothing to do with turnover or employment. This gives a very skewed rate for those trying their best to keep people in employment. I recognise what the Minister stated about local authorities needing to receive the rates but we have to consider what is happening to the hotel industry. Can any realistic approaches be made to the Department of the Environment, Heritage and Local Government to address this? South Dublin County Council was one of the local authorities that reduced its rates. The Minister stated that rates were increased by 1.3% overall. The Irish Hotels Federation believes it should be reduced by approximately 30% for the sector to be viable. Perhaps 30% is an optimistic level of reduction but increasing the rates is making it impossible for many hotels to be viable.

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