Jonathan O'Brien (Cork North Central, Sinn Fein) | Oireachtas source

I will be brief in order that as many Members as possible will be able to speak.

This measure goes too far. No doubt, as has been said, the hotel sector in Dublin is booming. One of the difficulties, however, is that one cannot have a regional VAT rate outside Dublin. Therefore, we must look at it in the round. The difficulty my party has is that the measure is being extended across the sector. It is not only for hotels that the rate is being increased to 13.5%. It is also being increased for local hairdressers, cinemas, museums, restaurants and cafés. For us, that is a step too far and it is being done in one big jump. Many of the businesses about which I am talking are small and family-owned and it is too much in one year to jump from a rate of 9% to 13.5%. For these reasons, we cannot support the proposal. In saying that, we understand the hotel sector in Dublin is booming. One cannot even find a room in which to stay. Even in the past 12 months, prices have doubled. Therefore, we would fully support reverting the rate back to 13.5% for the hotel sector. However, extending it across the entire sector is a retrograde step, one we cannot support. We will be voting against the proposal.

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