Noel Grealish (Galway West, Independent) | Oireachtas source

I thank the Minister for his reply. The Regional Group met Adrian Cummins and Adam Hallissey of the Restaurants Association of Ireland yesterday. They outlined the serious crisis facing the hospitality sector. They told us that the 50% increase in the VAT rate from 9% to 13.5% has resulted in more than 300 businesses closing since it came into effect, with most of the remaining businesses having to absorb this VAT increase as they could not pass on the increased costs to their customers. Most restaurants operate at a 5% to 7% margin. The increased VAT has come on top of the minimum wage increase of 12.4%, sky-high energy costs, inflated food costs and upcoming pension auto-enrolment costs. We ask the Minister to split the VAT rate, which is the norm in many EU countries, and reduce it from 13.5% back to 9% for the restaurant sector in particular. This is what we in the Regional Group will look for in our Private Members' motion on Wednesday. If it does not happen, there will be further major closures in the hospitality sector in the months ahead.

See this speech in context