Michael McCarthy (Cork South West, Labour)
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158. To ask the Minister for Finance if he will support calls to keep the VAT rate at 9% to ensure that Ireland has a strong and competitive tourism industry; if he will maintain this reduced VAT rate for the hospitality sector following the positive implications this reduction has had on the industry in creating and maintaining jobs; and if he will make a statement on the matter. [39509/13]

Jim Daly (Cork South West, Fine Gael)
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184. To ask the Minister for Finance his plans for the future of the 9% VAT rate currently applicable to the services and hospitality sector; and if he will make a statement on the matter. [39371/13]

Terence Flanagan (Dublin North East, Independent)
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205. To ask the Minister for Finance if he will keep the 9% VAT rate for the tourism industry in Budget 2014; and if he will make a statement on the matter. [39633/13]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 158, 184 and 205 together.

The 9% reduced VAT rate for tourism related services was introduced in July 2011 as part of the Government Jobs Initiative. The measure was designed to boost tourism and create additional jobs in that sector. In line with best international practice it was introduced as a temporary measure and is due to expire at end December 2013, at which point it will revert to 13.5%. Retaining the 9% rate would be very costly to the Exchequer and would require an increase in taxation or reduction in expenditure elsewhere.

Any proposal to maintain the 9% VAT rate will be considered in the context of the Budget.