Maurice Quinlivan (Limerick City, Sinn Fein)
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27. To ask the Minister for Jobs, Enterprise and Innovation if her attention has been drawn to the fact that a media company (details supplied) ran an investigative piece which examined the hospitality industry and the apparent abuses within it in the west of the country; if she will make retention of the 9% value added tax rate to the hospitality sector conditional on its engagement with the Labour Relations Commission and acceptance of registered employment agreements, in view of the fact that this sector has an embedded culture of widespread low pay; and if she will make a statement on the matter. [6317/17]

Pat Breen (Clare, Fine Gael)
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Let me state from the outset that the setting of VAT rates is a matter for my colleague the Minister for Finance.

Notwithstanding this, the VAT rate for tourism related goods and services was reduced from 13.5% to 9% in July 2011. The Government introduced this measure to promote job creation. This measure has been retained since due to its positive impact on the sector.

Between Q2 2011 and Q3 2016, direct employment in the Accommodation & Food Services sector increased by 38,200, from 114,400 to 153,200.  

While the reduction in the VAT rate has not been the only factor driving employment in the sector, it has made a significant contribution. This has had a very positive impact on the competitiveness of tourism in Ireland.

In relation to the media report referred to by the Deputy, Ireland’s body of employment and equality legislation, protects all persons legally employed in Ireland on an employer-employee basis and provides robust safeguards for employees.

Allegations of non-compliance with employment rights should be referred to the Workplace Relations Commission which will investigate any matter brought to their attention.  

As the Deputy is aware other wage setting frameworks exist including Registered Employment Agreements. Engagement in these frameworks is voluntary on the part of the stakeholders concerned.