Maria Byrne (Fine Gael) | Oireachtas source

I understand from where Senator Higgins is coming with regard to hotels that have put up their rates but that is not the case for all hotels. I have had many dealings with small hoteliers and others in the hospitality industry. Yesterday, I spoke to a small hotelier who is so grateful that the 9% VAT was kept and for the supports that have been in place. He believes that if those supports were not in place, his business would not have reopened after Covid. While acknowledging that the reduced rate will be phased out, he believes it has helped to keep his business afloat and to keep people in employment. He employs approximately 80 people in the hotel. Without the reduced rate, he would not have been able to keep those employees on board because of the costs. He is very grateful for the reduced rate. It has been well spent.

I understand that it is to be phased out. The Minister of State, Deputy Richmond, and I were in Limerick recently to meet 38 businesses, some of which are in the hospitality industry. They included pub owners, small hoteliers and large hoteliers. Some of the bigger businesses are showing a profit but these supports have kept the smaller ones afloat. Three businesses on my street that were in the hospitality industry did not reopen after Covid for various reasons. Although the reduced rate has helped many businesses, it has benefited smaller businesses to a greater extent. The extension of the supports has helped those businesses to try to get back to where they were previously. Although I understand from where Senator Higgins is coming with regard to the bigger hotels and profiteering, keeping the supports in place was the right decision. It should be kept under review.