Rose Conway-Walsh (Mayo, Sinn Fein) | Oireachtas source

I thank the Ceann Comhairle. We are all trying to get ready for the announcement at 9 p.m. That is the situation we are in. I apologise for being late.

I understand the absolute necessity to extend the 9% VAT rate on electricity and gas. The Eurostat figures released in October last year show that the average energy bill for an Irish household is €500 higher than the EU average. The figures are due to be updated in May and I doubt they will make for any less grim reading. We have the highest energy prices in Europe and this is crippling not only our workers and families but also our small and medium-sized businesses. This really speaks to what is happening in terms of our competitiveness and what we need to do to protect ourselves against the tariffs we are facing.

Media reports have indicated that SMEs are going to the wall because of huge energy costs. In October, the Government announced an energy subsidy of €170 million to provide approximately €4,000 to 39,000 hospitality and retail sector businesses. At the time, some in the business sector described the scheme as not worth talking about. Does the Minister of State have information on how many businesses have applied for and received the energy subsidy? There is currently extreme worry among Irish business owners regarding the imposition of US tariffs later today. We simply do not know the extent to which our economy will be affected. Even though the major threats at this point seem to point to the pharmaceutical and tech industries, any loss of jobs in those sectors will have a knock-on effect across the entire economy.

The Government needs to get to grips with this and to consult with executives in the North to ensure we have a whole-island approach to protect our island economy. While I welcome any and all business supports in light of the challenges facing our small and large firms, the elephant in the room at this stage is the Government's pre-budget commitment to lower the VAT rate on the food-led hospitality sector. That was done during the pandemic and a similar measure must be considered afresh and brought forward. This issue resonates far beyond employers, business owners and the many people who work in the sector. When well known restaurants and pubs close down, it is felt right across society. Those businesses make up an important part of our culture and are part of the social fabric of every city, town and village. We cannot have vibrant communities without a viable hospitality sector. I urge the Minister of State, in addition to this extension for electricity and gas, to consider a VAT reduction for food and catering businesses and other small service businesses. That was committed to by the Government but I ask that consideration be given to bringing it forward at this stage.

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