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

On behalf of Independent Ireland I extend my heartfelt congratulations to Paschal Donohoe on his appointment to the World Bank. This is an extraordinary achievement. I wish him and his family the very best, and the same to the Minister, Deputy McEntee; the Ministers of State, Deputies Naughton and Higgins; and the incoming Minister of State, Deputy Feighan. I congratulate them on their elevation to new offices.

While we acknowledge the service of Deputy Donohoe, we cannot ignore the legacy of the most recent budget for 2026. It was presented as sensible and protective of growth, yet for many families it fell short, with modest increases of €10 in weekly social welfare payments, €8 or €16 for child payments and €5 in the fuel allowance. There was no meaningful cost-of-living package and no changes to personal income taxes. Meanwhile, housing remains in crisis despite €5 billion in capital commitments. The minimum wage increase to €14.15 barely scratches the surface of inflationary pressures. There were no energy credits for families and pensioners, who are still choosing between heating and eating.

Disturbingly, buried in the recent budget is a significant, large unannounced measure, whereby the VAT rate on room hire, excluding hotel and guesthouse bedrooms, will increase from 13.5% to 23% on 1 January. This change, being introduced without clear communication, will impose a substantial financial burden on hospitality business. For example, one Cork hotel estimates it will cost approximately €25,000 annually if absorbed internally. To offset this, it would need to generate more than €120,000 additional gross revenue next year, a near impossible target in the current climate. This comes at a time when the minimum wage is set to rise by almost 5% and auto-enrolment for pensions is being introduced, adding further pressure to payroll costs. These combined measures place enormous strain on small hotels and rural businesses that are already struggling to remain viable. These establishments are not only commercial entities; they are pillars of their communities that support local events, charities and even political activities. Such hidden changes erode trust and fuel frustration among the electorate.

At a time when transparency and fairness should be paramount, these stealth increases will leave a bitter taste among rural businesses across the country. It is no wonder people feel disillusioned when decisions of this nature are made without proper debate or disclosure.

I wanted to talk about the writ in relation to Galway West and Dublin Central but, unfortunately, I do not have time. It is hugely important we debate that issue here and that the Government calls immediate by-elections in both of those constituencies.

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