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

I understand the constraints on the Minister, but I agree with my colleague that a return to the 13.5% rate will have a devastating effect at this stage. It is tantalising to see the growth in the sector. Throughout the summer I walked down High Street in Kilkenny and saw the number of people who were able to go into the local restaurants. The restaurants will not be thanked for having to pass on higher prices to consumers. Given our current economic situation, there is a certain confidence level here and if we return to the 13.5% rate, we will strike at the heart of that confidence. The businesses are beginning to gain confidence and it would be a retrograde step to return to the other rate. As one of the businesses said:

There is no consumer confidence in the marketplace and in its absence struggling ... businesses, regardless of how many people they employ, are not going to be thanked by the public for price increases. They are going to lose out and suffer further, maybe even closing. While the Government has no responsibility for helping me maintain a business, it does have a responsibility to create the environment in which we can create jobs.

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