Bernard Durkan (Kildare North, Fine Gael)
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Question 219: To ask the Minister for Transport, Tourism and Sport the extent to which he continues to have contact with the tourism sector with particular reference to the hotel industry and the need to address the issue of those costs now most negatively affecting the sector; and if he will make a statement on the matter. [26801/11]

Bernard Durkan (Kildare North, Fine Gael)
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Question 220: To ask the Minister for Transport, Tourism and Sport the issues identified during discussions he has had with the stakeholders in the tourism sector with particular reference to costs affecting the industry; the extent to which it has been possible to address such issues; and if he will make a statement on the matter. [26802/11]

Leo Varadkar (Dublin West, Fine Gael)
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I propose to take Questions Nos. 219 and 220 together.

I remain in regular contact with major stakeholders in the tourism sector, including hotels, which keeps me advised of issues of concern to the industry. The Government's Jobs Initiative introduced a new lower VAT rate of 9% from July 1st for a range of tourism services and also significantly reduced the cost of employing people by halving employers' PRSI for those on modest wages, further enhancing the competitiveness of the sector.

I am aware that there are a range of other costs that are of concern to tourism businesses including labour costs.

As the Deputy is aware, the consultation period launched by my colleague, Richard Bruton T.D., Minister for Jobs, Enterprise and Innovation on proposals for the reform of the State's employment rights and industrial relations structures and procedures ended on 16th September. I look forward to the implementation of the revised structures.

The new National Internship Scheme (NIS) also provides an opportunity for businesses in the tourism industry to take on interns at no additional salary cost in a range of areas that will enhance their business prospects while giving interns the opportunity to learn more skills which will make them more attractive to prospective employers.