Martin Browne (Tipperary, Sinn Fein) | Oireachtas source

The challenges that continue to be faced by many small- and medium-sized businesses are considerable. Locally, in my part of Tipperary, we have seen a number of closures in the area of hospitality. Tipperary town has seen more than its fair share of closures and there are also instances in other parts of the county. Every loss has its impact on the locality and other businesses operating nearby. We must do what we can to offset the challenges these businesses are facing and keep their survival at the forefront of our minds. That is our duty in this House.

I fully support reviewing the VAT rate for the hospitality and tourism sector because Ireland has the third highest VAT rate for accommodation in the EU. We have the eighth highest rate for restaurants and catering. We must assess the implications for the sector of the closures we have seen locally in Tipperary and then respond accordingly. We must assess the role VAT has played in the closures we have recently witnessed and how adjusting the rate could assist the sector. We will take stock of the demands being made of these businesses. Key among those considerations must be those businesses that are struggling and those that have closed because they are unable to maintain viability.

In addition, we call for consideration to be given to targeted policy supports, such as a PRSI rebate scheme for SMEs that are facing higher business costs. The motion also refers to the VAT measures employed by other countries, where varying rates are applied based on economic activity, demand and need. Nothing should be dismissed and, equally, nothing should be considered irrevocable, just because it represents the current status quo. That includes our VAT rates. Another possibility is a PRSI rebate scheme, for which we have called for some time.

Our SMEs are the lifeblood of our communities. We need a root-and-branch examination of the demands placed on them.

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