Tim Lombard (Fine Gael) | Oireachtas source

I welcome the Lithuanian ambassador and congratulate him on his country's national day.

I want to raise two issues. The first concerns the 9% VAT rate, which is an issue that has been debated for years. We must acknowledge the success of the reduced rate. The Government led by Enda Kenny made a brave and bold move in introducing it. However, the matter needs to be resolved now on a permanent basis, rather than having it arise every six or 12 months. The hospitality industry, in particular, needs clarity on what is proposed. I am from west Cork and this is one of the big issues there. It is a location for wedding venues and its economy is tourism-based, working on a rotation of six to eight months. We need competitive pricing to ensure our hotel circuit is competitive into the future. The VAT rate is a huge issue for us and we really need clarity in the next ten days about will happen with it. I am of the view that it must stay at 9%. The European model indicates that is where the VAT rate should be at right now. The industries concerned are under pressure and feeling the pinch. There is a Dublin bubble when it comes to hotels. In west Cork, we have a totally different circuit and mechanism. The people in the industry are major drivers and employers in our economy. We need to make sure their businesses are viable as we go forward. This does not just affect hotels but also hairdressers and all the other industries that are tied into the 9% VAT rate. These service industries are the core industries in the majority of our towns and villages. Within the next ten days, we need a strong roadmap to be put in place that will allow this issue to be dealt with on a permanent basis.

The second issue is the important one of childcare provision. I will give an example of what is happening. Kinsale Manor is a private housing development in Kinsale that includes a private childcare facility. When the builder was given planning permission for the estate, that permission included provision for a childcare facility. The building is there and the facility will open in the next few months. The local authority is now proposing to build 160 new houses in the town but is only offering a site to the childcare provider in that instance. We should have a scenario whereby if the State or a local authority is building housing, childcare provision should be part of it. It does not make sense for private developers to be required to build a crèche as part of a development and not have local authorities be required to do the same. Local authorities will offer a site but they cannot afford to build a project costing €500,000. There needs to be a real focus on childcare provision because it is the ultimate issue on the doorsteps. The Deputy Leader knows it is, as do I. There must be a coherent policy. When it comes to any new policies on housing, childcare provision must be tied into them.