Seán Kyne (Fine Gael) | Oireachtas source

Fine Gael is fully supportive of section 6. We initiated reduced VAT rate in 2011 in response to the unemployment crisis. We needed to look at sectors that were capable of providing employment and could provide a quick response to a stimulus to direct support. At that time, it was one of the key components of the Action Plan for Jobs introduced by the then Minister, Deputy Bruton. It worked by targeting hospitality and tourism. It provided jobs in rural and urban areas. It was highly successful and kick-started the recovery of the economy at the time. While that eventually came to an end and was reversed, in response to the Covid pandemic it was a provision we were able to put back in place. It was the correct decision to do that as a quick change that could be enacted to support the tourism sector. It amends that Act to apply the 9% rate for key sectors.

Coming from Galway and Connemara, we know the benefit of such a rate to the tourism and hospitality sector. It was a successful intervention in the past, it is still, and it can be into the future. I acknowledge and commend the Minister on this initiative and its continuation. I certainly support section 6.