Hotels, cafés, restaurants and pubs are the main contributors to the tourism industry and they are massively struggling. The decision by the previous Government, supported by Fianna Fáil, to increase the VAT rate from 9% to 13.5% was a significant mistake that damaged many businesses in rural Ireland. Several restaurants, pubs and other facilities in west Cork and elsewhere in rural Ireland closed prior to Covid as a result of the VAT increase. Fine Gael and Fianna Fáil had no concept of the damage they were doing to the tourist industry in rural Ireland. They refused to listen. The damage will take a long time to reverse. Will the 13.5% VAT rate on tourism be reduced to zero? If that is not possible, will it at least be reduced to 5%? Similarly, the 23% VAT rate on alcohol should be reduced to 5% to provide a lifeline for struggling pubs and the tourism industry. That must be done immediately.

I think the Deputy indulged in some selective history-making there. The VAT rate on tourism and hospitality was 13.5% for a very long time and was reduced to 9% by a Fine Gael-led Government on a temporary basis to get the tourism and hospitality sector going again.

In the year in which tourism reached a record high, it reverted to the previous rate of 13.5%. Those are the facts.

We are working on the July stimulus package and considering all matters. We know that the tourism and hospitality sector, including hotels and restaurants around the country, have been badly hit by this crisis. In many ways, it was the sector that was hit first and worst and will be affected for the longest, along with arts, entertainment and leisure. No decisions have been made yet but we are considering actions that will assist that sector to reopen, stay open and return to profit.