Leo Varadkar (Dublin West, Fine Gael)

I thank the Deputy for the question. The reduction in the VAT rate has been successful in increasing employment in the sector and it is clear that, by and large, it has been passed on to consumers. It is important the reduced rate be continued until the end of 2013. That was always the intention. That was the announcement made at the time of the introduction of the jobs initiative and it is what is on the Revenue notice. There was some uncertainty about it earlier in the year and the tourism industry lobbied hard to make sure it had certainty on this. Having discussed it with the Minister for Finance, I am glad he is willing to allow us to give certainty in order that the industry will know what prices it will charge for next year.

Regarding the opportunities for Donegal, I agree strongly with Deputy McHugh's comments. There is a huge opportunity there to build on what is happening in the North. With the ongoing improvements on the A5, it will make it easier to get to and from the county.

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