Martin Conway (Fine Gael) | Oireachtas source

I welcome the Minister and also Deputy Niamh Smyth. I commend the committee members, including Senator Carrigy, on their excellent work in producing this report. In the cut and thrust of everyday politics, tourism might not necessarily get the headlines, but it is an incredibly important industry in all parts of the country. It is particularly important in my home county of Clare.

The announcement that the 9% VAT rate will be retained until the end of August brought a sigh of relief from many people in the hospitality and tourism industries. For every €100,000 they take in, the reduced rate leaves them with an extra €3,500 to help their bottom line and enable them to reinvest in their product. Hotel and restaurant owners, in particular, tend to reinvest in their product during the winter months. We have just come out of a difficult few years, which would have been much more difficult if not for the various Government supports and schemes. We are still not out of the difficult days, given what is happening in Ukraine and so on.

The industry is facing a number of serious challenges. The first relates to the general tax structure. We should follow the trends in other countries by introducing a city tax or charge. There was a backlash when such a proposal was raised before. We need a mature debate on it at this time. I am not sure how it would be structured but we have a situation now in which hotels in cities can legitimately charge - in the case of corporate entities, in particular - €200, €300 or €400 per night at peak times. Apart from the five-star castles, hotels in my county would never achieve those prices. However, the electricity and gas that come into County Clare cost the same as the electricity and gas that go into Dublin city centre. The rates may vary but, by and large, the fixed costs are the same.

We need to see at least an aspiration towards an equilibrium and fairness that does not exist at the moment. The prices that are charged for both meals and hotel rooms in the capital and other cities, particularly when there are large sporting events and concerts, attract very negative publicity for the entire industry. A long-term strategy will have to look at trying to create an equilibrium. I mentioned a classic example of what I am talking about this morning. The owner of a restaurant in Ballsbridge, Dublin with piped gas going into it will straightaway benefit from the temporary business energy support scheme. Meanwhile, a restaurant in Ballyvaughan, County Clare, for which the source of energy is a bulk tank of gas, will not qualify for the scheme. I understand a grant scheme is being designed by the Government but, in the meantime, we have a situation whereby people running restaurants in Ballyvaughan are discriminated against compared with restaurant owners in Ballsbridge. That is not fair.

We need to look at the overall product we are offering. We must continue to develop gold-plated facilities. The Cliffs of Moher Experience in County Clare is one such gold-plated facility, which has acted as an anchor to bring people to the entire western seaboard.To complement the gold-plated facilities, we need silver-plated facilities as well. We need to see high-quality interpretative facilities in places like Lahinch, Milltown Malbay, and Kilrush, to name some places in my own county. I am sure that is replicated in other counties as well.

We have a serious problem in the industry with finding, hiring, and retaining staff. There is no reason not to open up and liberalise the permit system because, currently, it is cumbersome, difficult and complicated. That does not augur well. For people who are busy we need to have a very straightforward, streamlined system. We must examine the permit system, in particular for seasonal work and the hospitality industry. There are people who would like to come to this country, work for three months full time and study for three months, but the way the system is at the moment they can only work for 20 hours a week and they cannot combine the 20 hours over a number of weeks and then study for a number of weeks. We must be far more flexible in our work permits. It is not rocket science, it just takes a willingness to be creative and flexible.

It is a pity what is happening in restaurants and hotels. I know of one hotel last summer that had a close a floor because it could not get staff. I also know of many restaurants that must limit their menu because they cannot find chefs and floor staff. I was talking to the lady who runs the coffee shop across the road beside Buswells. She has had to reduce her menu again because of the challenges in finding staff. That is something we can and should resolve.

We do not have gold or silver in this country, but one of our greatest raw materials is a beautiful landscape, a wonderful welcome, a great culture and a great tradition. That is our raw material. We must develop it in a respectful, authentic, and genuine way. By doing that, we will see thousands more people coming to visit the country every year.

I cannot sit down without mentioning the importance of Shannon Airport, not just to County Clare but for the entire mid-west and the western seaboard. The more flights that come into Shannon Airport, the more visitors who come to our country that have a good experience. When they get off the aeroplane they are not in a crowded, congested environment. They can get through the necessary passport checks relatively quickly and they are immediately on the Wild Atlantic Way. Anything the Minister, Deputy Catherine Martin, can do to support and develop the offerings and to market Shannon Airport would be very welcome. She is doing a fantastic job in her Ministry. The committee is also doing a great job. The members get it and let us hope the Government gets it as well.