Seanad debates

Thursday, 21 January 2016

10:30 am

Photo of Michael MullinsMichael Mullins (Fine Gael) | Oireachtas source

I support Senator Conway's call for a debate before we end this term with the Minister for Transport, Tourism and Sport on all the positive things that have happened in tourism in recent years. When the Government took over in 2011, it rightly identified the significant contribution tourism could make to the economic recovery. The Government set about investing and marketing Ireland as a tourist destination. We have seen record numbers of tourists in recent years. The outlook for 2016 looks particularly promising.

One significant measure taken was the introduction of the 9% VAT rate for tourism related activity and the hospitality sector. That made a major contribution to making Ireland attractive. However, we need to reiterate the warning to those in the hotel sector in particular that they need to continue to keep their end of the bargain. The Minister for Finance made some noises recently putting them on notice that the 9% VAT rate may not remain indefinitely. There is evidence, especially in the capital and in some of the larger centres of population, that the hotel sector is hiking prices, in particular when significant events are taking place in cities and major towns. If those in the hospitality sector wish to retain the 9% rate, they need to look at themselves and keep their prices in check.

Senator Mooney referred to the publication yesterday of the final report on the post office network. We all want to see a strengthened post office network in our communities, a network that can provide the type of service that people require. I very much welcome that a post office renewal process, as recommended in the report, will be established immediately and will conclude its work within six months. In particular, I welcome the Minister announcing that the Government has agreed to support the introduction of an electronic payment account in 2016. If the post office network is to survive, it must be able to provide a range of electronic transactions. I certainly hope the work being done in the coming six months will ensure and secure what remains of the post office network throughout rural Ireland.

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