Charles Flanagan (Laois, Fine Gael) | Oireachtas source

I acknowledge the expertise of the Minister of State, Deputy Griffin, in this regard. Many of the Deputies who have spoken on this issue have made a contribution to this debate each year over the last six years. As the former Minister, Deputy Howlin, conceded, this measure was designed as a temporary measure in a time of economic and social trauma. It was under review in every budget from 2014 to 2017. This time last year, the Minister for Finance committed to carrying out an impact assessment of a reversal to the original VAT rate. We have seen that assessment and it does not point to the sky falling in or to the disaster for rural Ireland that was mentioned by the Deputies. In fact, with regard to bed and breakfast accommodation, over three quarters of registered bed and breakfast accommodation providers are not in the VAT regime and do not pay any VAT. I do not subscribe to the argument of the sky falling in.

In response to the Deputies who have sought support for tourism related businesses in rural Ireland, the Government has allocated a further €35 million to the Department of Transport, Tourism and Sport to provide more targeted supports for the sector. That will bring the total expenditure of the Department to €168 million. This allocation, in the form of targeted supports, will ensure that small businesses in the entertainment industry in rural Ireland will benefit. It will ensure that bed occupancy and seat occupancy in restaurants can be improved.

I acknowledge the success of the Wild Atlantic Way and Ireland's Hidden Heartlands, which is only beginning to impact on a part of the country that has not benefitted to any great extent from tourism endeavours. I welcome the money allocated today for the development of greenways and blueways throughout the country, which will add significantly to the tourism footprint in other parts of the country - Ireland's Ancient East, for example. The impact on rural tourism of the increase in VAT-----

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