John McGuinness (Carlow-Kilkenny, Fianna Fail) | Oireachtas source

I take Deputy Howlin's point that it was a measure to assist the sector, and in that regard it worked. To withdraw it in one go is not how business works. The Department should have conducted an impact analysis of the increase before the Minister announced it. Not every business is coining it. Some businesses, particularly in rural areas, are in serious difficulty and the Minister is adding significantly to their costs. Businesses work on the basis of projections for one, two or five years.

I come from a city and county that rely heavily on tourism and have seen hotels struggle during those years. They received some relief in terms of that tax rate but they had ten years of hardship, of trying to keep the doors open, of investing whatever surplus moneys they might have had into their business and of not being able to get loans for expansion and so on. In one fell swoop and without any analysis, the Minister turns it back to the previous rate. Jobs must be sustained and money is committed in the context of the business to sustain those jobs. What the Minister has done is take away that money that might have been relied upon to ensure jobs were not just created but sustained. It is the one single issue that clearly demonstrates the difference between the big urban centres like Dublin and the rest of the country because the rest of the country is struggling desperately to keep jobs in their regions and to ensure that they are there to play a part in the economic upturn whenever that happens in rural Ireland.

I ask the Minister to take a fresh look at this. Obviously, we cannot participate in a vote on it but I would certainly support ensuring that while the Government is carrying out the analysis, it ensures that these businesses are able to pay their bills and that support is there for them. If there is one thing the Government could do to illustrate that, it would be to assist businesses rather than put obstacles in their way.

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