Richard Bruton (Dublin North Central, Fine Gael)
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Question 167: To ask the Tánaiste and Minister for Finance his views on the introduction of a VAT reclaim system on hotel and restaurant costs incurred for conferences, corporate meetings and incentive travel purposes as recommended by IBEC in its publication, Vision for Dublin. [23406/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I would like to draw the Deputy's attention to a dedicated scheme I introduced in the 2007 Budget and Finance Act which allows deductibility of VAT on conference related accommodation expenses. This measure recognises the importance of tourism to our economy and will help Irish hotels to compete more favourably for international conference business where significant opportunities are available. The measure which came into effect from 1st July 2007 addresses concerns raised by the hotels and tourism bodies regarding Ireland's attractiveness as a location for international conferences. The international conference market is seeing considerable growth and it is important that Ireland is sufficiently well positioned in order to avail of opportunities of attracting new business in this area.

A conference is defined as a meeting attended by a minimum of 50 delegates "in the course or furtherance of business". In addition, there is no minimum number of nights stay required and attendees may be accommodated at the conference venue or elsewhere. Under the scheme, VAT relief is available to conference attendees whether they come from Ireland or abroad and applies to accommodation expenses irrespective of the accommodation chosen. I have no plans to widen the scope of this measure.