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

I am glad to get the opportunity to talk about this very important matter. I thank all those who put the motion together. It is very important that we bring this matter to the Government's attention. Tourism and the hospitality sector are of vital importance to County Kerry. So much depends on it. In recent times, or since January in any case, many restaurants and small cafés have closed. There are different reasons for this but the VAT rate is the dominant one. The increase in the VAT rate from 9% to 13.5% for the hospitality sector is having a devastating effect.

There has also been an increase in rates since the review, which is militating against many businesses. Rates have increased by a factor of three or four. That matter should have been included in the motion. In any case, in many of our towns, such as Killorglin and Kenmare, where businesses are also closing, there is less footfall. This is because 37% of our hotel beds and bed nights are taken up by asylum seekers and refugees. That is having a devastating effect on the footfall in restaurants and cafés. The Government must recognise this.

Energy costs, including electricity and gas, have gone through the roof. There is an increase in the cost of food and a scarcity in certain types of food, such as potatoes. This is already having serious repercussions for businesses and employees. Many of the places young people hoping to get work for the summer traditionally went to are not taking on staff because they simply cannot. I appeal to the Government to reduce the VAT rate from 13.5% to 9%, especially for food-led and drinks businesses. There is a suggestion of splitting the VAT rate in respect of accommodation. Some hotels in Dublin charge exorbitant prices for bed nights. If they want to persist with that, maybe the VAT rate should be left as it is for them, but not for businesses on a tight margin, such as restaurants, cafés and even pubs.

Places such as Killarney, Kenmare, Killorglin and many places around the Ring of Kerry were mentioned. We are now being told that bus traffic has reduced because of the reduction in footfall into our county.

We do not want this to continue because a place like Killarney has built up its tourism product since Queen Victoria's time in the 1860s. The town has been continuously building and adding and all the businesses in it worked tremendously well together to make Killarney the great town that it is. What they are pleading and begging for now is that the VAT rate be reduced. We do not oppose the motion but I ask that this be considered in the budget. I appeal to the Minister of State to ensure that happens. It is a long time for people to carry on, even until the budget in October. Several places in Killarney have already closed. If someone gets a cough in one place, it can lead to flu somewhere else. Such closures have a ripple effect on the entire county of Kerry. It is having a devastating effect around the Ring of Kerry and into north Kerry, in Ballybunion and other such places. We cannot emphasise enough the importance of this. I again ask the Minister of State to keep Killarney and our tourism product around the Ring of Kerry at the top of the agenda.

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