Jimmy Deenihan (Kerry North-West Limerick, Fine Gael)

The introduction of the new temporary 9% VAT rate on certain tourism related services and goods falls within the statutory remit of my colleague, the Minister for Finance. This initiative has been introduced primarily as part of the Government's overall job creation strategy. It will apply to a variety of areas, including the hospitality and tourism sectors, and operate from 1 July 2011 to 31 December 2013. In order for the measure to be successful, it requires the reduction in VAT to be passed on to consumers through a reduction in prices in the tourism sector. With this in mind, the Minister for Finance has stated the VAT change will be kept under review and evaluated before the end of 2012 in order to determine its effectiveness in aiding the industry. If it is shown that the VAT reduction has had little or no effect in aiding the industry, the measure will be reformed or abolished.

I naturally welcome the decision relating to the reduction of the VAT rate to 9% in respect of cultural venues, including cinemas, theatres and museums. This is a recognition that the arts are a central component of our cultural tourism offering. I strongly encourage traders to deal with the savings that arise to benefit all those who wish to avail of these cultural pursuits.

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