Michael Collins (Cork South-West, Independent Ireland Party) | Oireachtas source

This discussion is centred on extending certain provisions of the Civil Law (Miscellaneous Provisions) Act. This extension aims to allow the hospitality sector to continue providing outdoor seating areas for the sale and consumption of alcohol. Independent Ireland and I are in full agreement with this extension.

This is crucial for offering clarity and certainty to business, patrons, local authorities and An Garda Síochána. As a politician, business owners speak to me on a daily basis about the costs of doing business in Ireland. They constantly ask me when the VAT rate will be reduced to make it somewhat easier to keep their doors open.

The Restaurants Association of Ireland, RAI, expressed significant concerns about the current state of the restaurant industry. It recently highlighted that 150 restaurants closed in the first quarter of 2025 due to soaring business costs. The RAI warns that more closures could follow if these financial pressures continue. The association is actively lobbying for changes in regulation and legislation to support the industry. It emphasises the need for Government action to prioritise tourism and hospitality, which are vital to the economy.

The association has put forward several key proposals to support the restaurant industry. Some of these proposals include decoupling VAT rates, separating the VAT rate for food services from accommodation and advocating for a reduced VAT rate for a food service while maintaining the current rate for accommodation. It emphasises the need for greater support for hospitality apprenticeships to ensure skilled workers and a five-year strategy for developing a comprehensive strategy to boost food and drink tourism in Ireland. These proposals aim to address the financial challenges facing the industry and ensure its long-term sustainability.

While we are talking about seating outside businesses, I fully support this legislation going through but I have serious concerns that businesses are being rated for having seating and tables outside, mainly for the few months of the summer season. This is another kick in the teeth for businesses that are struggling at this present time. Business owners in my community have told me that they are being rated. These businesses we are talking about are paying rates already, electricity-----

See this speech in context