Maria Byrne (Fine Gael) | Oireachtas source

I agree with the points made by Senator Coffey. A very clear message needs to go out in regard to hotels in Dublin. However, I lobbied for the retention of the 9% VAT rate in the past and on this occasion, and it sends a very positive message in terms of job creation, as the Minister of State said.

Another benefit I have seen in the regions is the amount of investment people are beginning to put into their businesses in the hospitality industry. The 9% VAT rate has encouraged people in that trade because they have to constantly reinvent themselves and invest in their businesses to give good offers to their customers. However, without the retention of the 9% rate we would not have increased employment or investment. I agree with its retention. It is to be welcomed that the Minister, Deputy Donohoe, listened to proponents of the rate and kept it because there were rumours that it would be changed and there was lobbying by the Opposition in that regard. It has been a positive measure but it is important that the message be clear that it will not always be available and that hotels in Dublin need to sit up and take cognisance of that.