Seán Kyne (Fine Gael) | Oireachtas source

I welcome the Minister. I am speaking on behalf of my colleague, Senator Maria Byrne. I acknowledge the range of supports the Government has provided since the outset of the Covid pandemic. I thought we were coming to the end of Covid, but, for obvious reasons, it is still in the Title of the Bill. Hopefully, it will be the last time that it will be. That is a recognition of not only the amount of money that has been spent but also the impact that Covid has had on our society. I was a member of Cabinet during that caretaker period and I know that and the Government responded quickly to provide very real supports for businesses, employees and society. That has been proven by how the economy has rebounded, the number of businesses that have survived because of the supports provided and the number of people who are back in employment. It is important to acknowledge that we are back to pre-Covid levels of employment.

I welcome today's Cabinet decision on the 9% VAT rate for the tourism sector. I know these things are difficult. We need to get back to the point where supports are no longer required. There is a particular issue with the 9% VAT rate. We have seen the inflationary pressures on our economy in recent months, and the Government has responded to them. To have prices and VAT increasing in the autumn and winter period would have added to those pressures which have come upon us. Obviously, the impact is especially acute in the hospitality sector. We recognise the reach that the hospitality sector has across the entire country but, in particular, in certain areas of the, including Kerry, where my colleague, Deputy Griffin, has been very strong on this issue. I acknowledge this morning's decision to extend the 9% VAT rate for a further six months.

We are still getting queries as to whether certain categories of employee are eligible for the pandemic special recognition payment of €1,000. The information provided by the HSE indicates that the list is not exhaustive. Is there a central point from which we can get absolute clarity on whether somebody involved in catering, for example, who may or may not have been under the employment of the HSE, perhaps for a section 38 entity, is eligible?Is there a direct point of call to which we can go? Presumably, some of these €1,000 payments have been paid. It was paid in a case in Beaumont according to the information I have. Presumably, all of these will be backdated. If they have been paid, the fact that they are exempt from tax will be retrospective, if you like. I presume that is the case. We received a comment today by email from somebody querying when the Act will be enacted and whether the law will be backdated to cover payments already made, which I assume is the absolute case.

I refer to some of the other issues and the supports that have been put in place. Obviously this about ensuring the special arrangements are compliant by the end of the tax year. That is all very welcome. I suppose it is tidying up what we know to be the case and what was announced previously rather than any new initiatives to ensure the waivers and other issues have been tidied up. That is important.

I also welcome the changes made regarding the duties on fuels. Again, there were, of course, inflationary pressures based on the fact that we are price takers in relation to oil and hence petrol and diesel. This has been exacerbated, of course, by the situation with the illegal war in Ukraine. Obviously, these things must be continuously monitored.

I know the Minister will be starting preparations for the next budget, which will be different from this time last year. I will not say we were at the height of Covid-19 but we were certainly still very much impacted by it this time last year. Obviously, we did not have the situation we have at the moment in Ukraine. Inflationary pressures and cost-of-living issues are real. Government has acted and provided those supports but it is something I know the Minister will be keeping under constant review with regard to what is allowable under the financial situation we are in and what is possible under the EU laws as well.

There is uncertainty with regard to the supplies of gas, for example, although not so much here, because we do not get it from Russia. The knock-on impacts of any supply changes that take place over the course of the year, however, could have impacts on the wholesale price of gas next autumn. I have heard projections. These issues are still very real.

I know the Minister is up to speed and keeping an eye on matters in his role in the Eurogroup as well. The Government has done much to support businesses and job creation and retention and has provided a range of supports in respect of the cost of living. As I said, this must be constantly kept under review. It is a real dilemma, which I know the Minister understands, and a real issue in households up and down the country.