Seanad debates

Tuesday, 20 September 2022

An tOrd Gnó - Order of Business

 

2:30 pm

Photo of Jerry ButtimerJerry Buttimer (Fine Gael) | Oireachtas source

Like many of my colleagues, I wish to discuss the importance of next week's budget in the context of the cost of living, which is one of the most critical challenges facing this generation. Families are struggling with the cost of living, including increased energy prices. Other Senators referred to the issue of small enterprises. I hope that, in next week's budget, money will be put into people's pockets so that they can make choices and we can reduce the cost of living in a costed and sustainable way.

I wish to reference the 9% VAT rate for the hospitality sector. That sector does not just comprise hotels, but also restaurants and pubs. I appeal to the Ministers, Deputies Michael McGrath and Donohoe, the Taoiseach, the Tánaiste, the rest of the Government and those who frame the budget. This VAT rate is about jobs in rural and regional Ireland outside of Dublin. We know about the gargantuan price increases in hotel rates in Dublin, but Dublin is not Ireland. I wish to give Members a small insight into a particular hospitality establishment. For every €1 in food revenue, 45 cent goes on labour, 35 cent goes on food costs and 9.5 cent goes on VAT, with that last potentially increasing. That is almost 90 cent of the €1 gone. Add into that energy bills, commercial rates, consumables and insurance. When discussing jobs and the cost of living, let us also remember the people who provide employment in our country, particularly those in the hospitality sector.

I wish the Ministers well this week and next in the framing of the budget. I hope that they will listen to the voices of some of us in this House. If the Ministers could attend the House before the budget, it would be great, although I presume that will not happen now.

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