Seanad debates

Friday, 11 December 2020

Finance Bill 2020: Committee Stage

 

10:00 am

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

I wish to bring a matter to the Minister of State's attention. Senator Casey just outlined part of it. The CRSS was a crucial piece of budget 2021 and provided businesses with certainty and necessary supports, which was especially important during the lockdown. More than 13,000 businesses have already received support under the CRSS. As the Minister of State is aware, the hospitality sector is facing difficulties. For hotels in Galway and beyond, the prohibition on leaving one's county has created considerable issues in terms of occupancy rates. Many gastropubs and restaurants up and down the west coast and beyond are not in a position to open because there are no tourists. Opening would not be feasible or viable. These businesses are now more or less seasonal, be they in Connemara or the Burren, on the Aran Islands or wherever. Opening is not viable, yet they are not eligible for the scheme. This issue needs to be examined and a three-month review may need to be conducted. It is causing difficulties and, as Senator Casey alluded to, has financial implications through putting issues on the long finger. We need to be fair to businesses.

Thankfully, we seem to be through the worst of the pandemic. Senators believe so. Today's announcement regarding the distribution of a vaccine was welcome.

I seek a comment from the Minister of State. I have gone through the Bill. I understand that the reduced VAT rate has proven effective. As the Minister of State is well aware, it was welcomed by the hospitality sector. Those who operate in the hospitality and tourism sectors feel strongly that having the reduced VAT rate of 9% for all of 2021 would be a great boost to them. It would also bring certainty, which is what businesses require now. They have come through an incredibly challenging 2020. I appreciate that reducing the VAT rate would be a major cost to the State, but is consideration being given to extending the temporary reduction, which is due to expire on 31 December? Will we be sending a message that the 9% rate will be extended for all of 2021?

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