Paschal Mooney (Fianna Fail)

I welcome the reduction. I have advocated this on a number of occasions in the House, especially as it applies to tourist related activities, which initially was the main thrust of the initiative. However, there is inequity in the small print, as my colleagues have pointed out.

I will focus on one aspect of the section, which the Minister of State might clarify. It refers to "certain musical performances". Perhaps he could elaborate as to what "certain musical performances" are. I assume it means that the major concerts taking place in the O2 and in various other places will now be subject to the lower rate of VAT. I welcome anything that would generate economic activity, but with the Take That concert in Dublin this weekend, there has been much criticism of the manner in which the hotels have jacked up their prices. One hotel source was quoted in the newspaper this morning as saying that as they offer relatively cheap rooms for the rest of the year, jacking up the price and doubling or trebling the rate for this weekend evens out across the year. It may even out their books, but where does the consumer come into this? This is not unique to this country as it happens everywhere there are sporting, musical or other events taking place over a weekend. Not only do the hotels indulge in jacking up prices, but the airlines also do it for international football and rugby matches.

I welcome the reduction because it will be a pull factor for international acts to come into the country as they will be paying less to the Government. However, one should also remember that while Take That and other musical acts are providing a great deal of entertainment, there are hundreds of thousands of euro going out of the country in fees and so on to bring them in.

I will also focus, in the context of "certain musical performances", on what is euphemistically referred to as the live band industry here. There is a live band industry which is in decline primarily due to the lack of promotion on our national airwaves, but local radio fulfils that gap to some degree. I am talking about many of the indigenous Irish singers and bands; not necessarily those that are playing country music, but those who are playing Irish traditional, folk and other forms of Irish music. Will the venues presenting indigenous Irish music be able to take advantage of the reduction in the VAT rate? These bands, groups, artists and the venues pay VAT. If these venues are to be exempt from the higher rate and will be able to take advantage of the lower 9% rate, this will be a good thing because it means that their cost base will be reduced considerably. That will be in the interests of the consumer.

I welcome the reduction in the VAT rate as it applies to cinemas and theatres. We pride ourselves on our artistic endeavours and inclinations. The point has been made that while it will be cheaper to go to the cinema and theatre, businesses with high fuel bills will not be exempted. However, reducing the VAT on cinema attendance is a positive move. Going out to the cinema and the theatre can be very expensive. It is not necessarily contained in the admission price, but it is often in the ancillaries. I used to advise my children, when they were going to the cinema, to go to the shop across the road to buy their popcorn, because it was three times the price in the cinema. They contributed in a small way to the local business while the cinema was getting the admission price anyway.

To sum up, the thrust of my contribution is to ask exactly what the "certain musical performances" are.