Paul Gavan (Sinn Fein) | Oireachtas source

I move recommendation No. 28:

In page 145, between lines 25 and 26, to insert the following:

“Report on potential economic benefits of a temporary reduction to the hospitality VAT rate to 9 per cent

89. The Minister shall, within 3 months of the passing of this Act, prepare and lay before Dáil Éireann a report on the potential economic benefits of a temporary reduction to the hospitality VAT rate to 9 per cent excluding hotel accommodation making specific reference to the viability of SMEs in the sector and employment.”.

We call for a report on the potential economic benefits of a temporary reduction of the hospitality VAT rate to 9%. I am particularly interested in the Minister of State's response to this recommendation because I have heard a number of people from his side of the House call for what is suggested to be considered. I do not know what the potential economic benefits of this reduction would be, but where I live in Limerick, I can see that small hospitality, restaurants and cafes are struggling. There is no question. They are really struggling. I do not think it right to include those types of businesses with the large hotels, and with the big hotel groups in particular, which are making huge amounts of money.The recommendation states:

The Minister shall, within 3 months of the passing of this Act, prepare and lay before Dáil Éireann a report on the potential economic benefits of a temporary reduction to the hospitality VAT rate to 9 per cent excluding hotel accommodation making specific reference to the viability of SMEs in the sector and employment.

It has been acknowledged, particularly on the Government side of the House, that there is a real crisis for the small business sector. There is a case now to be made to look into this issue. That is all we are asking for. I hope the Minister of State will support this particular request.