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

I thank the Regional Group for bringing this very timely motion. Elaine Fitzgerald Kane, the chairperson of the Irish Tourism Industry Confederation, said recently that the tourism sector has been abuzz with discussion about the significant number of closures of food-led hospitality businesses in January 2024, particularly when compared to January 2023. The scale of these closures is both astounding and distressing. We have witnessed too many livelihoods lost and gaping voids left in the fabric of numerous communities across our nation. These closures have sparked conversation about the future of our social outlets. Where will we go now for our daily cup of coffee? It was often a social interaction for many. Where will we celebrate special occasions? Where will we gather after a funeral?

Regrettably, this wave of closures was not unexpected. It had been anticipated and flagged to the Government. The backdrop of this situation is the escalating cost of doing business in the aftermath of the pandemic, which has been exacerbated by the recent increase in VAT and other Government-controlled costs, with warehoused tax liabilities due to be repaid by May. Many business owners cannot envision their businesses and livelihoods surviving in the current operating environment. The typically challenging early months of the year have taken on a new level of difficulty for our seasonal tourism community this year. While recent measures announced by the Government are welcome, they have not been timely or substantial enough to save many food-led hospitality businesses and livelihoods.

Surely be to God, Fine Gael and Fianna Fáil politicians are out around the countryside every weekend when they get back to their constituencies. Are they staying inside in bed?

Do they not understand the crisis that many of these cafés, restaurants and pubs are going through? There is not a care in the world in here. I brought this issue up with the Taoiseach about two weeks ago and his answer was appalling. It was more or less that these companies were going to the wall anyway and that we should move on. This is appalling and it is time for the Government to understand that the VAT rate must go back to 9% immediately. That is the first move of many that the Government must make, or is it happy for these businesses to shut their doors on the people?

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