Dáil debates

Wednesday, 9 December 2009

Financial Resolution No. 3: Value-Added Tax

 

10:00 pm

Photo of Pat BreenPat Breen (Clare, Fine Gael)

I welcome the reduction in VAT. Visiting retail stores on Friday and Saturday last, most of the proprietors complained about slow business as we approach Christmas. Why will the VAT reduction not apply immediately? This would have given retail outlets a badly needed boost through increased sales before Christmas. Given that many small and medium size enterprises will close after Christmas, the measure is too little, too late.

On the resolution which deals with support for the tourism sector, there is not much point introducing a travel scheme for overseas visitors using Iarnród Éireann if airlines are not flying to Ireland. Ryanair and Aer Lingus are seeking to reduce the number of flights to and from the country. The two companies do not often issue joint statements, as they have done in urging the Government to abolish the travel tax. While increasing the budget for tourism to support a marketing drive aimed at increasing tourism by 3% is fine, it is pointless if airlines decide to move their services elsewhere. Airlines are parking aeroplanes and reducing schedules all over the world.

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