Paudie Coffey (Fine Gael) | Oireachtas source

I welcome the retention of the 9% VAT rate in the Finance Bill. Many of those present come from the regions of Ireland, such as the Minister of State, who comes from Wexford, while I am from Waterford and other colleagues come from other areas of the country. For such Members, this has been one of the measures that most assisted the hospitality trade during the economic crisis. That is evidenced by the vast increase in the number of tourists visiting Ireland.

People to whom I have spoken who are involved in restaurants and hostelries told me that the 9% VAT rate was one of the measures that kept them in business during that difficult time. However, I acknowledge that there is an issue, particularly in Dublin, regarding the cost of hotel rooms. The message should go out from the Seanad Chamber to hoteliers in Dublin that it is not a given that the 9% VAT rate will remain forever. I have lobbied for its retention and I will continue to do so because it is good for business and makes it cheaper for people to visit Ireland, which has a knock-on impact in terms of further expenditure in our local economies. However, the message should go out from Seanad Éireann that hoteliers should not take the 9% VAT rate for granted and should consider the competitive price of bed nights in Dublin in particular. It is an important matter that they should take into account. The Minister will take account of it, as will his officials. I welcome that a further analysis is to be conducted of the VAT rate, its impacts and how it benefits the economy.

It is also welcome for regional newspapers, a sector that has struggled considerably over many years and particularly so during the economic crisis when advertisements, a strong source of income for newspapers, decreased. They too depend on the lower VAT rate to help them become and remain sustainable businesses. Regional newspapers carry out a public service by reporting upon affairs of State and also reporting on news items in communities, towns and villages across the country. As the Minister of State said, and I support him on this point, the 9% VAT rate supports rural Ireland in many ways, such as tourism. Its benefits can be seen in the huge increase in visitors to the Waterford greenway and that it is attractive for those from outside the country to come here and visit and spend money in local economies. Local newspapers keep our communities connected and inform them of happenings, Oireachtas events and local events and it is critical for that to continue. I want to put on record that the 9% VAT rate is not just a financial measure but has helped rural Ireland and various sectors of the country on many levels. However, the Dublin hotel trade should not take the measure for granted because the prices of hotel rooms in Dublin are going through the roof and becoming uncompetitive and a problem.