Dáil debates

Wednesday, 29 July 2020

Financial Provisions (Covid-19) (No. 2) Bill 2020: Second Stage (Resumed)

 

2:05 pm

Photo of Holly CairnsHolly Cairns (Cork South West, Social Democrats) | Oireachtas source

While I welcome some aspects of the Bill's in regard to tourism, representatives of the industry in west Cork have pointed out that it does not go far enough to help the sector, which is one of most impacted by the pandemic. Tourism and hospitality is one of the main industries in west Cork and throughout rural Ireland. These small, often family-run, businesses provide vital employment and services in towns and villages, as well as being an outlet that local farms, fishing communities and food producers supply and rely on. The extension of the restart grant to a broader range of SMEs corrects some shortcomings of previous schemes. The specific reference to bed and breakfast accommodation has provided assurances for many businesses. However, the industry needs more ambitious grant funding rather than an extension of the credit guarantee scheme. Tour operators, restaurants, hotels, guest houses and everybody else in the hospitality sector need proper support, not more debt.

The other specific intervention for the tourism and hospitality sector, namely, the stay and spend incentive, is fundamentally flawed. It should be a simple voucher system, not a complex tax rebate that favours those who can afford to spend more and do without that money until it is rebated. People who cannot afford to avail of it and individuals who fall outside the tax net for different reasons are excluded. In addition, the October to April limit on the rebate covers the period when many businesses in the sector are closed. This incentive is of little use to them. Instead, a voucher of €125 should be provided to people to allow them to enjoy and support the hospitality sector in their local area or any of our many wonderful tourist destinations. That would allow for a greater uptake and would not discriminate against anybody. A simple voucher system, applicable for a longer period of the year, would improve the effectiveness of the scheme, enable people to holiday and dine out, and benefit the entire sector. The industry has been calling for a clear intervention for months. Instead of the planned blanket 2% VAT cut, a targeted cut for smaller retailers and the hospitality industry would be more effective.

The measures in the July stimulus to promote rural cycling, which could bring new forms of sustainable tourism to many areas, are beyond disappointing. They amount, in effect, to a planning exercise and the piloting of 20 km of cycleways this year. The plan also refers to the provision of greyways, that is, the use of hard shoulders on regional roads as cycleways or footpaths. Greyway provision seems to be a new policy, which is not referred to in Transport Infrastructure Ireland's, TII's, rural cycleway design document, and it sounds completely unappealing. If the Government is serious about developing cycling facilities and sustainable tourism, we need greenways. TII and accessibility campaigners classify greenways as fully segregated cycleways and paths. The programme for Government promises an integrated national greenway strategy. Greyways are a false start.

This pandemic has shown us all how to look at the world differently. It is very important, now more than ever, that the Government takes a more innovative and ambitious approach to supporting the tourism and hospitality sector in a sustainable way, especially in rural Ireland. The survival of many small, family-run businesses depends on it.

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