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

The cost of living is pushing people to the edge. In my constituency that is what they tell me in my clinics during the weekends and over the phone, as many more have said tonight. Electricity and fuel are at exorbitant prices. The Government has done nothing to make sure that that does not impact the people. Businesses are struggling. The Government must signal to the tourism and hospitality sector that it will extend the 9% VAT rate currently applied to the industry. The rate is due to increase to 13.5% in March. The reality is that west Cork tourism and all the indirect jobs that rely on it are simply not in a position to absorb any increase in the VAT rate. If anything, there has to be an extension of the VAT rate and an extension of the temporary business energy support scheme, TBESS, which is due to end in February. If TBESS goes and the VAT rate increase proceeds, it will be nothing less than an economic assault on west Cork tourism, on every restaurant, every hotel, every café and every pub which is struggling at present.

I can show the Minister of State if he comes down to west Cork. Unfortunately, if you drive around, Friday and Saturday are the only chance to see the doors open in our local community for many cafés and pubs at present. Our local hotels, many of which are family-run, are shuddering at the thought of what is coming down the tracks. This is reflected in data from the Irish Hotels Federation, which recently found that an astonishing 81% of Irish hoteliers are very concerned about the impact of a VAT increase on their businesses as they do not expect a full recovery in overseas visitor numbers until 2026 at the earliest.

Let us not forget our hairdressers, who are also very vulnerable. Their industry, too, has been plunged into major fear of significant job losses and closures across the sector. The Government has said that with the VAT decrease it provided for last year there will be a soft blow. There should be no blow because the decrease should not be taken back this time.

See this speech in context