Ann Phelan (Carlow-Kilkenny, Labour) | Oireachtas source

I thank the Ceann Comhairle for the opportunity to discuss this important issue that is critical to the constituency I represent, namely, Carlow-Kilkenny, which also is highly dependent on the tourism sector. The introduction of the reduction in the VAT rate in July 2011 from 13.5% to 9% to boost tourism and stimulate employment in the tourism and hospitality sectors has had a significant impact on all local economies. Based on a survey I undertook in my constituency of Carlow-Kilkenny and based on the level of feedback I received on foot of my interaction with local businesses, the response has been overwhelmingly in favour of retaining the lower rate of VAT. This lower rate has helped businesses to remain open and continue trading. Moreover, in many cases it has helped to increase the workforce by creating jobs, and by increasing the general economic output in the tourism sector it has resulted in lower prices which, in turn, have been passed on to the consumer. It has renewed growth in the domestic and overseas tourism markets and has improved Ireland's international competitiveness in the sector. Figures from the Central Statistics Office indicate an 8% increase in employment in the hospitality sector in the past 12 months. I must state that while this issue may be more complicated from the perspective of the Department of Finance, it appears simple to me and this measure certainly is having the desired effect. People greatly welcome the reduction in the VAT rate locally. A recent report prepared by Fáilte Ireland indicates that domestic tourism figures have risen since 2011 as an increased number of Irish people have holidayed at home. In addition, while total overseas visitor numbers rose by 6% since 2010, more importantly, more than 650,000 domestic visitors were recorded by 2011.

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