Michael Healy-Rae (Kerry, Independent) | Oireachtas source

I thank the Minister of State. I come from what is widely recognised as the tourism capital of the western world, which includes Killarney town and the beautiful Ring of Kerry that encompasses places such as Killorglin, Glenbeigh, Cahersiveen, Waterville, down to Portmagee, the beautiful Valentia Island, Ballinskelligs, Kells Bay, back up to Caherdaniel, Castlecove, Sneem and on up to Kenmare. It is the most beautiful place in the western world. I am very proud and glad to have represented businesspeople in those places, and those towns and communities, first on Kerry County Council and then in Dáil Éireann.

I have been asked to give the Minister of State this message - these businesses are struggling. People in the hospitality sector are struggling. The Government's decision to hike the VAT rate on the sector last year was ill-judged and ill-advised. The 9% VAT rate should be restored without delay, especially to support food-related businesses that have seen insolvencies more than double in the past three months of the year. That is a fact. The hospitality sectors in this instance include businesses such as hotels, bars, pubs, canteens, hairdressers, barbers, catering operators, hostels, bed and breakfasts, caravan parks, self-catering accommodation and guesthouses. We have those in abundance in Kerry in the south, mid, north, east and west of the county, but particularly in south Kerry.

The aim of reducing the VAT rate is to lower consumer prices, stimulate demand and boost employment in the sector. At this stage, I thank, in a very special way, Mr. Adrian Cummins from the Restaurants Association of Ireland who met with our group under Deputy Mattie McGrath yesterday. Mr. Cummins gave us comprehensive evidence to bring before the House. He is running what I call a sterling campaign on this issue. I take this opportunity, as I did yesterday, to personally thank him on behalf of businesses in County Kerry, which he diligently worked to represent during the Covid crisis. He did so in a very hard-working fashion. He was to the forefront in insisting that the Government help that sector.

The Minister of State knows that I am not a negative person but am a fair person. I have said in the House over and over again that I thank the Government for its reaction to Covid. I thank it for the speed with which it operated. I thank it for the assistance it gave to businesses, which I outlined. I acknowledge that. Only for the Government's proactive way at that time, many of those businesses would be gone. While the Government helped very well in keeping those businesses open, I plead with it to please acknowledge that what is happening is wrong, that the VAT rate is wrong, and that the Government has helped businesses before and will help them now. I cannot understand how the Minister of State can tell me that the Government is willing to not disagree with our motion while at the same time tell us that it will not reduce the rate. That sends out a mixed message to the sector. We want to hear from the Government today that it is willing to put its shoulder to the wheel and say, "Yes. The sector is calling out for help and we will help it." This is the lifeline we so desperately need.

The tourism and hospitality sector is grappling with a multifaceted-demand scenario marked by capacity constraints, substantial cost pressures and the exceptionally high cost of doing business. I ask the Government to please acknowledge this, to please understand the sector needs its help and to listen to the cases that have been made. Instances, scenarios and case studies have been shown to it, where businesses have opened up their books, that show if the VAT rate does not change, businesses will not survive. Why does the Government now want to stand by and close down businesses that it helped keep open? That is stopping midstream in its work.

The Minister of State is an exceptionally good operator and politician. I ask him to use his influence within the Government to fight for this case.

See this speech in context