Kevin Humphreys (Labour) | Oireachtas source

I will not exploit the discretion the Acting Chairman has given me. I very much welcome the Bill. Investment in the tourism industry has brought real dividends. We must be slightly concerned about the VAT rate. The Minister of State referred to the 9% VAT rate which I support, although it needs to be a little more targeted. The Minister of State is right about the Dublin region. We must question whether we continue the 9% VAT rate. I accept that it would be very difficult to apply different VAT rates across the country. The Department should engage with the hospitality sector and inform it that the State, taxpayer and citizen need to see a return. The hospitality sector in the Dublin region, especially the hotel sector, is operating at capacity. If they are receiving a preferential VAT rate, there is an onus on employers to consider the long-term unemployed. They have a social and moral responsibility, especially given that they are receiving a tax break from Central Government. This tax break comes from the taxpayers and citizens and it is well over €300 million.

I have travelled quite a bit within Ireland on holidays, and restaurant prices have increased within and outside the Dublin region. Much of this relates to demand. The Minister of State mentioned Killarney. I was there recently and I also saw a substantial increase in bedroom rates and in the hotel sector. If we are not going to kill the goose that laid the golden egg, we must ensure we keep our costs under control. Those costs are not labour costs but exploitation costs. The Minister of State mentioned that when there is a rugby match on a Sunday or an all-Ireland final, there is often exploitation of people who have to visit the city for those major championships. If we want them to return and use Dublin as a gateway, they must see value for money.

I ask the Minister of State to try to engage with the hospitality sector. When I was Minister of State at the Department of Social Protection, I engaged with the sector regarding employment opportunities. A loud and clear message must be sent to the sector that if it wants to keep the benefit of the 9% rate, it must consider our unemployed people and youths for jobs. We can train them, but if the hospitality sector is not giving them the breaks but is constantly seeking visas for people to come in and work in those areas, it is unacceptable. We need to clearly tell the hospitality sector that if it does not play ball with us, we will put the 9% rate under the magnifying glass. Unless the sector considers employing people from the long-term unemployed group, they will lose the 9% VAT rate. They have got a very good deal and they have a social responsibility to step up to the plate.