Carol Nolan (Offaly, Independent) | Oireachtas source

The proposal to increase the VAT rate to 13.5% is extremely unfair. I do not support any VAT increase, particularly in rural counties, regardless of whether it is the 11% rate proposed by some parties or 13.5%. It is extremely unfair.

I have been contacted by many owners of small businesses from counties Laois and Offaly and learned that they are absolutely struggling to pay rates and to meet ever-rising insurance costs. The Minister, Deputy Flanagan, will know this from his town, Mountmellick. I have heard many concerns coming from there also.

The proposed measure will have a serious impact on the progress that has been made. It is slow progress in regional areas. We are not making the same progress as areas such as Dublin, which was mentioned. We have the Hidden Heartlands tourism strategy but it is in its infancy. We do not know with certainty whether it will work. Therefore, it is an absolute insult to small businesses to turn around and slap them with this measure when they are struggling to keep their doors open every day. Many restaurants and hotels in rural areas, particularly in regional areas such as Laois and Offaly in the midlands, will struggle. Only earlier this week, Gerard Brady, head of tax and fiscal policy in IBEC, expressed serious concern over the proposed measure, stating that higher prices when consumers are facing rising costs will lead to fewer customers and lower expenditure among those customers who are spending. The increase will be absorbed in urban areas but not in rural areas, which are struggling.

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