Michael Collins (Cork South West, Independent) | Oireachtas source

I will concentrate on the tourism, entertainment and community and voluntary sectors in my contribution. The tourism sector is hugely important for my constituency of Cork South-West. The increase in VAT rates from 9% to 13.5%, which happened pre-Covid, had devastating consequences for the tourism industry. It was a serious error made by the Government which it could have rectified, as the UK Government did, and in terms of other models used in Europe where the rates went down to 5%. The Government had an opportunity to do that. Areas like Kinsale, Clonakilty, Skibbereen, Bantry, Mizen Head, Bere, Rosscarbery and Sheep's Head depend totally on tourism. If the Government had lowered the tourism VAT rate to at least 5%, it would have given those in the industry an opportunity for survival. Instead, they will have nothing to live on from now until next March or April when they might have some chance of a little bit of tourism. However, in the situation we are in now, it was a terrible mistake made by our Government not to do that.

We should look at the model in Northern Ireland. We tend to look across Europe as being the place to give us advice. We saw that the Taoiseach took advice from Europe recently and signed a statutory instrument for a penalty points system for our fishermen. In terms of the model in Northern Ireland, on the last two occasions I had a bus going to Belfast I could not book a bed in the Europa Hotel, which has 800 or 900 beds, because they are flat out busy. They are working because if a person buys a meal or stays in the hotel, he or she gets back £50 on every £100 spent. We have nothing like that here. I think the standard VAT rate went from 23% to 20%, which is nine cent off a pint. That is what we did in Ireland. Well done. That will not keep our economy going or save our tourism sector in west Cork.

The people in the entertainment industry are on their knees. They cannot even insure or tax their cars. These musicians who served our people and gave us comfort and joy through the years have been treated miserably. I would like the Minister of State to intervene in that situation.

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