Dáil debates

Tuesday, 9 October 2018

Financial Resolution No. 3: Value-Added Tax

 

10:50 pm

Photo of Peter FitzpatrickPeter Fitzpatrick (Louth, Independent) | Oireachtas source

Further south there are the historic towns of Dundalk and Drogheda, the many attractions of the Boyne valley and the seaside villages of Laytown and Bettystown. These areas suffered greatly when the economy collapsed and we faced years of austerity. Now we have the threat of Brexit which will be particularly felt in Border areas.

The 9% VAT rate has been critical to Louth and east Meath's tourism success, having brought Ireland more closely in line with the tourism VAT rates in the European countries with which we compete. Tourism is one of our largest indigenous industries and is essential for prosperity and economic well-being. I have always advocated for keeping the VAT rate at 9% and will continue to do so.

As the UK plans to leave the EU, there is a level of uncertainty about what Brexit means for many things and we must consider what it will mean for the future of our tourism and hospitality sectors. We are still in the process of achieving sustainability, and much of our tourism and hospitality is seasonal. We rely on tourism from the UK market, with tourists from the UK being our largest overseas market. As the euro has grown more expensive relative to sterling, visitors are spending less.

Since the announcement of Brexit in 2016, the number of UK visitors has reduced. The UK market presents a challenge. With that in mind, I cannot understand or agree with the decision to reverse the VAT rate from 9% to 13.5%. The measure was a great help to the tourism sector at the time of its introduction and I firmly believe it should be retained to help it to cope with the undoubted fact that Brexit is looming. I, for one, cannot support the proposed measure and will not be voting in favour of it.

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