Hospitality supports and VAT rate
Deputy Cairns calls for certainty for hospitality, including continuation of the 9% VAT rate, rates relief and wage supports. The Tánaiste says the sector has been hit hardest and confirms current supports remain in place for now.
The hospitality sector is one of the hardest hit by the pandemic. We know that reopening will not mean automatic recovery. Uncertainty for employees and business owners is symptomatic of a pandemic. However, we can and should provide certainty where possible - for example, the guaranteed continuation of the 9% VAT rate until 2025, an extension of the rates waiver for at least a year after reopening and an extension of the employment wage subsidy scheme post-reopening. Weddings with 25 guests versus weddings with 200 is a clear example of why these are completely essential. There must be proper engagement with the industry and advance notice of future reopenings. Is the Government considering any of these actions? Many businesses in this sector are on their knees and they cannot forecast or plan with this level of uncertainty.
They are major employers and action is needed if they are to have any chance of recovery.
Comment on this
I know how important the hospitality industry is to the Deputy's constituency. I had the pleasure of spending some of my home holiday last August in Bantry and west Cork and it is a wonderful place for people to visit. As things stand, the employment wage subsidy scheme and the weekly Covid restrictions support scheme, CRSS, payment will remain in place at least until the end of June and the 9% VAT rate will remain at least until the end of the year. The Deputy is absolutely right that the hospitality sector, along with aviation and the events industry, has been the sector hit worst, first and hardest and will, unfortunately, be the longest hit. Those sectors will need additional support well beyond June and well beyond the point of reopening because they will need to rebuild. These will be decisions for the Government down the line, in June and at budget time, but we are very well disposed to them.