Marian Harkin (Sligo-Leitrim, Independent) | Oireachtas source

The VAT rate for this sector should have been reduced from 13.5% to 9% or lower. My colleagues spoke about the regions. This cut will have a huge impact on tourism businesses but it will have a much bigger impact in the Border regions, counties such as Sligo, Leitrim, Donegal and Cavan. In many areas of these counties, the Border is only a few hundred yards away, beyond which the VAT rate has been reduced to 5%. That will make a real difference to many Border towns and to many resorts dotted along the Border. It will have a great impact on a tourism economy that is struggling and which relies on Irish people and people travelling across the Border. It is, therefore, a double whammy. Irish people living along the Border will get better value on the other side because of the lower VAT rate and may therefore be inclined to travel. That is fine but equally those who traditionally come across the Border to Donegal, Leitrim and Sligo in very significant numbers may look again because they know they can get better value at home. Many tourism providers in those Border resorts are desperately hoping for a decent August and are very disappointed that the VAT rate remains as is.

I have two final points. The stay and spend initiative is great but there is something I do not understand. Nobody seems to have seen that it is discriminatory as some people can never avail of it. An initiative like this should be universally available. It would be greatly appreciated. I think of my own mother, who will go mad when she hears I referenced her. She receives an old age pension and is on a fixed income. If she knew she had vouchers worth €125 she would love to spend them. It is the only way many of those on a fixed income could afford to go out for a meal, to go out for a day or to spend a night away somewhere. A 20% discount would give them that incentive. The Minister must find a way to extend this to everybody. They will appreciate it, they will spend it and they will think it is a good Government initiative.

My final point relates to something which is not dealt with in the July stimulus package. I ask the Minister and the Government to urgently find some way to support Aer Lingus. As far as I know, Aer Lingus is one of only a few airlines, if not the only airline, in western Europe not to have received government aid. I am deeply concerned that IAG could shut Aer Lingus down and liquidate the company. This would result in the loss of jobs, connectivity, the iconic Aer Lingus brand and competition within the aviation sector. It would desolate the workforce. It is simply unthinkable. I ask that the Minister and Government look at putting in place some form of state aid package to maintain Aer Lingus as a viable company.

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