Brian Stanley (Laois, Sinn Fein) | Oireachtas source

The increase is too severe. A rate of 13.5% for hotels is fair enough as we all are aware that hotels, not only in this city but also in large towns and other cities throughout the State, have increased their prices dramatically. The 9% rate has served its purpose. In fact, we have arrived at the point where the hotel sector is booming. However, I am surprised at the Minister for Justice and Equality, Deputy Charles Flanagan, proposing this measure for the restaurant sector as someone who represents the rural constituency of Laois-Offaly. The fact is restaurants and cafés in counties such Laois and Offaly are struggling because of high costs. Hairdressers are also struggling because of high costs. The Minister will be aware, as he must be, hearing it like I do from those who work in small businesses such as cafés and hairdressers in towns in our constituency such as Mountmellick, Portlaoise and Mountrath, that they have faced significant increases in rates, water charges and energy costs. Energy costs went up while we were all off for the summer. The energy companies shot up their prices by as much as 6% or 7% when nobody was looking. This increase is happening at a time when these businesses are under severe pressure.

Fine Gael is supposed to be the party of small business. Is it the party of big business because small businesses are taking a hit? What we, in Sinn Féin, are saying clearly is that going to a rate of 13.5% for hotels is fair enough, but other businesses in this sector such as hairdressers and cafés simply cannot take a 50% increase in the VAT rate. We propose that the rate rise to 11%, an increase of two percentage points. That is as far as it should go as that is as much as they can absorb. I am sure the Minister has been lobbied on the issue, as I have been. It is not fair on small businesses in counties such as Laois and Offaly that this is happening. I propose that the rate be 11% for these businesses.

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