Seanad debates

Thursday, 28 September 2017

10:30 am

Photo of Aidan DavittAidan Davitt (Fianna Fail) | Oireachtas source

I concur with what Senator Paul Gavan said. A couple of issues have passed through the House but not been discussed. I would not agree with all the points about it but it certainly needs to be discussed.

The Minister for Finance and Minister for Public Expenditure and Reform, Deputy Paschal Donohoe, has, from time to time, floated in the papers some ideas about VAT rates for small restaurants and hotels and he is doing the same again today. There has been talk that he is considering upping the rate from 9% to 10% or 12% but I have serious concerns with this. This is a sector that has been a really great story for the Government, which has had great success in the way it has handled it. There are some problems and some hotels will not be happy until they eat the goose that lays the golden egg with their prices, and there are some rogue hotels in this regard. This is very evident in the reduction in numbers from Britain. There have been fluctuations in the currency and Brexit, among other things, has had an effect but the pricing of hotel rooms is a major factor. I call on the Leader to talk to the Minister about this. The Restaurants Association of Ireland has professionally costed a 1% rise from 9% to 10% and learned that it would cost 6,000 jobs - a substantial number. If rogue hotels are overcharging, the Minister could tackle this in better ways than upping the VAT rate.

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