Michael Healy-Rae (Kerry, Independent)
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143. To ask the Minister for Finance if he will retain the 9% VAT rate for labour intensive sectors (details supplied). [33538/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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As part of the Government's Job Initiative in 2011, a temporary second reduced VAT rate of 9% was introduced in respect of tourism related services, including hotel and holiday accommodation; restaurant services, various entertainment services; the use of sporting facilities; hairdressing services; and various printed matter. This measure was aimed at boosting tourism and the creation of additional jobs in that sector.

From Budget 2014 it was decided to retain the 9% rate to support the increased number of jobs already in place and accelerate the creation of new jobs.

The Programme for a Partnership Government, published in May 2016, made a commitment to work towards achieving the tourism policy goals set for 2025 through specific measures including the retention of the 9% VAT rate on tourism related services, but this itself is dependent on prices remaining competitive in the sector.

In Budget 2017, in the weakness in sterling following the UK vote to exit the EU, it was considered prudent to retain the 9% reduced VAT rate into 2017.

In keeping with tradition, I do not propose to comment on Budget issues in advance of the forthcoming Budget.