Eugene Murphy (Roscommon-Galway, Fianna Fail) | Oireachtas source

This is a really retrograde step. I have spoken about it to restaurateurs in particular. I spoke to restaurateurs in Ballinasloe only yesterday and to those in other parts of my constituency, including Strokestown, Castlerea, Carrick-on-Shannon and Termonbarry. All of these people pleaded with me not to allow the rate of VAT to increase to 13.5%.

There was great enthusiasm in recent months when the Hidden Heartlands initiative was announced. There was a real feeling in the community that it represented a new beginning. However, this has been very much dampened today by this announcement. Like Deputy Brendan Howlin, I ask the Minister for Justice and Equality to go back to the Government with this issue, even if the result is an increase of 2%. The increase will mean jobs will be lost. We must take account of the fact that smaller restaurants and small family hotels have faced significant increases in insurance costs. Their premiums have increased by more than 100% in recent years. Revaluation has taken place. These people are struggling. This is the last thing they want. There is no doubt that part-time jobs, which have been very important to the rural areas, will go. Again, I appeal to the Minister strongly to go back to the Government and at least try to do something in regard to this matter. It is serious.

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