Seanad debates

Thursday, 8 October 2020

Nithe i dtosach suíonna - Commencement Matters

Covid-19 Pandemic

10:30 am

Photo of Ollie CroweOllie Crowe (Fianna Fail) | Oireachtas source

I thank the Minister of State for attending. As Senator Casey has outlined, the strain placed on the hospitality sector has been enormous in recent weeks and months. I will outline a number of specifics for the attention of the Minister of State. The hospitality sector contributes €4.5 billion in wages, salaries and employment taxes every year. More than 330,000 people are employed or are supported directly by demand from the sector. Tens of thousands of their jobs are located outside cities in places where jobs will be especially difficult to replace. The Government has acted and, it must be acknowledged, has put in place considerable supports. Following the latest blow of being essentially shut down, as Senator Casey just outlined, however, we are at level 3 but the hospitality sector is at level 5. We have now been informed that we will be closed for another three weeks. It is clear that these supports must be enhanced in next week’s budget. Some 8% of the entire population is employed in what the Central Statistics Office defines as the accommodation and food service sector, which includes local pubs, restaurants and hotels. This is one of the most important sectors in the economy.

This is the time to act and to place confidence in the ability of this sector to rebound quickly when we begin to emerge from Covid-19. Our sector can and will, with sufficient supports, come back and create a huge improvement, similar to the effect it had on the economy in recent years. We need to consider a range of measures, including a reduction in VAT and an exemption from 2021 commercial rates - this is essential - which will be a considerable portion of the commercial rates for the entirety of next year. Of course, as the Minister of State is aware, this will result in additional expense in the short-term but I firmly believe that it will be a case of short-term pain for long-term gain whereby we can ensure the future viability of businesses in the hospitality sector.

Behind every business, whether it is a hotel, a bar or a restaurant, there is a family. In Galway's inner city where I come from, the situation is particularly frightening and this is having huge implications on the mental health and well-being of people. As alluded to by Senator Casey, hundreds of thousands of jobs are at stake here. The uncertainty of that is taking its toll. I have already told the Taoiseach that I fail to understand how 12 hours’ notice or, as was the case last week, 36 hours’ notice are acceptable in the context of shutting down the entire industry. I can inform the House about my first-hand knowledge of the wastage in restaurants, bars and hotels. Three days’ or five days’ notice could have been given. It was the same in Dublin, where 12 hours’ notice was given. I do not think the Government realises the impact this is having. I ask, as Senator Casey did, that if the evidence is there, can it be published in order that we might have some certainty? We do not know whether we will be able to reopen in three weeks' time or whether we will remain closed. This is having an enormous effect in the cities but also, I am sure, in rural areas. I await the Minister of State’s response.

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