Séamus Kirk (Louth, Fianna Fail)
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242. To ask the Minister for Finance if he has received a copy of the recent report for Fáilte Ireland, An Analysis of the Impact of the VAT Reduction on Irish Tourism and Tourism Development; if he has noted its content; if his attention has been drawn to the fact that the report published by Fáilte Ireland outlined that the lower VAT rate of 9%, which was introduced to give the tourism sector a boost in 2011 and which has been maintained ever since, is continuing to have significant benefits for the economy; if he has noted that since its introduction more than 30,000 jobs have been added to the sector as a result of the measure being in place; and if he will make a statement on the matter. [33733/14]

Michael Noonan (Limerick City, Fine Gael)
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I have received the report from Fáilte Ireland as part of the Budget submission from the Minister for Transport, Tourism and Sport. As with all pre-Budget submissions, the proposals will be considered as part of the wider budgetary objectives.

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 Budget 2014 I announced that the 9% VAT rate would be retained indefinitely at a cost of €290 million in 2014 and €350 million in a full year.  The Budget change means that the 9% rate is not due to expire, but it is subject to change in the normal course of the budgetary and Finance Bill process, as with all taxes.  In this context, there would be no additional cost of maintaining the 9% VAT rate in 2015 and subsequent years.