Dáil debates

Wednesday, 25 September 2013

Topical Issue Debate

VAT Rate Reductions

2:50 pm

Photo of Brendan GriffinBrendan Griffin (Kerry South, Fine Gael) | Oireachtas source

I welcome the Minister and thank him for attending in person to reply to this particular issue. I also commend my colleagues on raising this matter. As my colleagues mentioned, I also come from a constituency that is heavily dependent on the tourism industry and this matter is important. I acknowledge there was a good season both in Kerry and nationwide this year and I wish to see that continue into the future. While there were other factors, such as The Gathering and the good weather, the VAT rate of 9% also has been a factor in the performance of the tourism industry over the past two years. I commend the Minister highly on introducing this measure in the first place and I acknowledge he did mention it was a temporary measure at the time. However, if I may use a footballing analogy, I would compare this with a team that was performing quite poorly until a blood substitute was brought on as a temporary measure. As the aforementioned blood substitute has grabbed the game by the scruff of the neck, he now deserves to be left on the field and perhaps even to start in the next game.

This is how I perceive the issue. If at all possible, the Minister should reconsider the figures or examine the figures that have been presented by organisations such as the Irish Tourist Industry Confederation, ITIC, and other players in the industry and find some way to try to continue with this measure that is creating and sustaining jobs. It is allowing tourism-related businesses to grow, to make capital investments and to build for the future, which is what is needed. I always cite this move by the Government as being one of the positive, pro-jobs and proactive measures that have been taken since it came to office and I seek its continuation. I heard recently that apparently, lapdancing clubs are availing of this measure and perhaps there is scope to remove certain areas from its application. However, I believe businesses that are supporting many jobs, such as hotels and restaurants, really need to be supported and I ask the Minister to do everything he can to try to retain the 9% rate for as long as possible.

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