Pat Casey (Fianna Fail) | Oireachtas source

My issue relates to the budget of last week and my disappointment in relation to the extension of the VAT rate for the hospitality sector. At a time when that sector faces many challenges as it tries to get back to the capacity it had before the pandemic, it was unfortunate that no clear indication was given by the Minister for Finance, Deputy Donohoe, and no budget line was made to extend the VAT provision beyond 28 February. Adding to the confusion and frustration for me and the industry was that within three or four hours of the Minister announcing that, the Tánaiste intervened and said no decision had been made on VAT for the hospitality sector.

I understand what has happened in the hotel sector, with the irresponsible behaviour of a limited number of hotels in relation to the prices they charge and the damage that is doing to our industry on the international market. It is irresponsible by them and is doing untold damage to the sector. However, I need the Minister to look beyond the hotel sector. The VAT rate includes cafes, restaurants, bars and hairdressers. If the Tánaiste is being honest in saying the decision has not been made, what are the guidelines to making this decision in February? What circumstances would allow the hospitality sector to continue with the preferential 9% VAT rate it has at the moment? I hope it is not based on a limited number of hotels gouging the market and doing untold damage to our sector.