Leo Varadkar (Dublin West, Fine Gael)

The Minister, Deputy Bruton, referred during an interview to an increase of 6,000 people in employment in the tourism sector. The situation has improved further since the most recent figure became available. To date, there has been an increase of 11,000 in the number of people working in the food and accommodation sector. However, this represents only a partial recovery on the large number of jobs lost in this past year. It would be facile to suggest that the reduction in VAT necessarily resulted in that increase in employment numbers. However it is a good sign nonetheless, by which I am encouraged.

The point I made to the hoteliers is a valid one, one which applies to the tourism industry as a whole, namely, industries will not get concessions because they are struggling - everyone is struggling. Concessions will only be given to industries which can deliver results in terms of increased revenues to the State and increased employment. It is hoped the industry will take this on board in terms of its hiring policy during the summer. The more people hired the more likely it is to retain the VAT reduction in 2013.

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