Thomas Pringle (Donegal, Independent) | Oireachtas source

I am pleased to speak on this motion regarding the VAT rate for the hospitality sector. I thank Deputy Fitzmaurice and the team for bringing forward such an important motion. I fully support and have cosigned the motion. I particularly highlight the motion's call on the Government to permanently reinstate a lower 9% VAT rate on food sales in Ireland, to recognise the critical contribution of the food sector and prioritise the protection and sustainability of the sector. I fail to see the reason behind not doing so. It seems to be difficulties around administration and how Revenue would manage it. I do not think that is a good enough reason not to do something that could make a massive difference to the viability of many businesses across Ireland, rural and urban.

There is no doubt that the food sector has faced countless pressures over the last five years, such as adapting during the Covid-19 pandemic and all the requirements that came with it, as well as dealing with the current cost-of-living crisis that we are facing. Restaurants and cafes are feeling the pressure. They are struggling to continue trading with the rising cost of electricity, gas, food and supplies. They are forced to face the full impact of rising prices alone. Many are facing potential closure and some have already been forced to close. My constituency of Donegal has seen many closures over the last few years and it is truly devastating to see. I raised this same issue two years ago when a local business in Killybegs was forced to close due to rising costs at that time, including a 50% rise in the cost of cooking oil, a 70% rise in beef, a 78% rise in dairy produce and a 90% rise in chicken costs. It is rising costs like these that the food sector is finding it difficult to recover from. This is before adding energy bills on top of everything. Two years later, south-west Donegal has seen many more closures, most recently the closure of a well loved family run restaurant in Ardara three days ago. The restaurant stated: "Unfortunately, with the difficulties facing the hospitality industry at the moment and spiralling costs, it has simply become unsustainable for us to continue." This was another devastating blow for Ardara and south-west Donegal. It seems that soon there will be nowhere left to eat if things keep going the way they are going. The industry is drowning. The Government needs to recognise this and do something about it before it is too late.

Really it is already too late for so many businesses. I am particularly concerned about rural towns that rely on seasonal work, such as the likes of Killybegs, where most employment in the area is seasonal. Killybegs relies on the food sector for seasonal employment outside the fishing business. The fishing sector only provides seasonal employment as well. Between the two of them, there is some employment about. The fishing season is getting shorter each year due to a continuous decrease in fishing quotas. Towns in south-west Donegal are barely getting by as it is, with such limited employment in the area. More closures will decimate the area completely and will force more people to leave, putting more pressure on the cities, which are already experiencing immense pressure. The small business and small food sector is growing and has the potential to grow if there is a bit of support there. That is vitally important. They are not looking for massive handouts or anything. Many places can and will develop with a bit of support. That is key.

The food sector is really struggling in cities, too. I have talked to business owners in Letterkenny who are also struggling to make ends meet and dread the ever-increasing bills. This is not the way it should be. People should not be living their lives under this much stress, especially when they play such a vital part in our towns and cities. They should be appreciated and supported, not bled dry. The food sector plays an essential role in our economy but it also plays a very important cultural role. Tourism is important and contributes massively to our economy but I do not believe in catering our economy, culture and way of life solely towards visitors. The everyday life of Irish people deserves to be valued just as much as this Government values tourism. Our citizens deserve to live a good life in Ireland, a country that is wealthy and has the resources necessary to ensure that every single person who lives here has a happy and fulfilling life. Is that not what we should all be striving for? Our food and restaurant culture is an important part of that. Supporting people to be innovative and entrepreneurial in their communities is part of it as well. Restaurateurs know the risk of setting up and doing business in the economy, yet they do it anyway. They do it to provide a service to the community, to bring life and culture to the towns and cities, even when it is not the easy thing to do, the hours long and the work stressful. We could all take inspiration in many ways from the small businesses that try it anyway. The Government could definitely take inspiration in striving to support communities, better lives and opportunities for the people of this country. Many will survive and grow with a little support, and that is what is needed: a small bit of support, endorsement and belief in what they are doing.

In many ways, the Government has offered supports through the councils. Ratepayers have to be up to date with their rates and so on. Very often, when businesses get into bother, the first thing they stop is the rates because they feel it is not an urgent cost.

There is no point keeping up to date with your rates if your lights are not on and that is the reality. A lot of businesses cannot actually qualify for those supports that are there and available at the minute. That is a problem. We need to get to the stage where we are supporting businesses' ability to pay their rates at a later stage and grow their businesses so they will be in a position to do that rather than making sure fully up-to-date ratepayers are the ones who are benefiting from it. That is important but the Minister of State should note it is a small change that might make a huge difference to how businesses can survive. While I know it is necessary that businesses meet their costs and stuff like that, they prioritise the costs they can afford and the costs that are necessary to keep open. If we keep them open, then we can get those other fees from them as well. That is vitally important and I support this motion.

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