Neale Richmond (Dublin Rathdown, Fine Gael) | Oireachtas source

Dialogue has already started with local authorities on the increased cost of business scheme. The Department of housing and local government has been working with the Department since the budget was agreed to make sure the scheme is fit for purpose. I fundamentally agree with the Senator that a massive communications campaign is needed beyond the political narrative. We will ensure that information is provided, tying in local authorities and local enterprise offices.The report will, I hope, be published in the next fortnight. That report will go a long way towards influencing and deciding policy objectives of the Government going forward.

The Senator is correct regarding the VAT rate and the emergency cut to 9% that previously applied. It was extremely effective. It was a lifeline for many businesses but, unfortunately, it was too good for too many businesses and many businesses that did not deserve it were getting it. I fundamentally believe that we need to examine the VAT rate for food-based businesses as a priority including restaurants, cafés and small retail as well.

I realise we are over time, a Chathaoirligh, but please allow me the latitude because an issue raised by the Senator that I did not address in the first place relates to tax warehousing. That debt falls due on 1 May. The Minister for Finance, Deputy Michael McGrath, has announced that he is working with the Revenue Commissioners to make sure there is flexibility in terms of payments and repayments. We do not want this to be the sword of Damocles hanging over any business. We are going to make sure that no business will have to close. They will pay their tax debts but in a way that will make sure they are able to stay open.