Kieran O'Donnell (Fine Gael) | Oireachtas source

I welcome the Minister, Deputy Ross, to the House. He is no stranger, but it is good to see him here. One can judge a man by the fact that he never forgets his roots and I commend him in that regard.

Part of the reason for tabling the motion relates to Brexit. Any hotelier or person running a bed and breakfast to whom one speaks can point to a slight dip in tourism numbers from the UK coming to this country. That is caused by a number of factors that include uncertainty and the depreciation in sterling vis-à-visthe euro. The tourism sector is under pressure and could come increasingly under pressure. The 9% VAT rate was originally introduced against the backdrop of the worst combination of economic factors in this country. Currently, due to uncertainty in terms of the future, Brexit and sterling, there is a need to ensure the tourism industry is competitive. The 9% VAT rate should have been passed on the consumer but that is not happening universally. Even though the State has provided a lift to the tourism sector, it has not been reciprocated in all cases by tourism providers. In most cases it has, but the Minister should examine whether the benefit has been passed on in terms of the VAT rate. As the Minister is probably aware, when someone goes into a restaurant, hotel or a bed and breakfast accommodation, they are paying a gross figure. VAT has to be paid out of that figure. If that VAT rate had been at 13.5% or 23% and it suddenly came down to 9%, that would make a significant difference to the net take home amount of the tourism service provider. Rates were very depressed when the 9% rate came in. However, as anyone who is staying in Dublin or around the country will know, rates are going up. They are not going up consistently, but in certain hotels and restaurants, particularly the hotel sector, there have been astronomical increases in rates charged. We live in a market economy. However, there would be no harm in setting up a review mechanism to see how the 9% rate has worked and how it is being passed on. We should be doing due diligence to make certain that it has worked well, as I believe it has. We must make certain that retaining the 9% rate ensures that we have a vibrant tourism sector.

Senator Conway-Walsh made reference to the fact that we do not have oil. Our natural resource is slightly intangible. We have a céad míle fáilte. We are very, very good at tourism. When people come to Ireland, they want to come back. This goodwill is an intangible asset, but it is an extremely important one. With that come jobs in hotels and restaurants, and spin-offs to all the amenities in the area. However, while the 9% rate will allow the tourism sector continue to be competitive there cannot be exploitation by the tourism sector in what they charge consumers, both Irish visitors and people from overseas.

Can I ask the Minister to factor in forecasts-----