I wish to raise the 9% VAT rate in the hospitality sector in the context of next week's budget. We have yet to see evidence of a recovery in either the hospitality or tourism sectors post pandemic. The Government demonstrated its mettle by delivering unprecedented supports during Covid to protect jobs. We all know about the summer price hikes and increases in hotel rates in Dublin but Dublin is certainly not Ireland. Protection of the 9% VAT rate is about jobs in rural and regional Ireland outside of Dublin and city centres. The sector does not just comprise hotels but also cafés, restaurants and pubs. I appeal to the Tánaiste and Members within the Government who frame the budget to support the people who provide employment in our regions, particularly those in the hospitality sector.

I thank Deputy Dillon for raising this matter. The 9% VAT rate will remain in place, at least until the end of February. Any decision on extending it would be made either on budget day or at a later point. That is a matter under consideration. I had a chance to visit Kerry with Deputy Griffin on Friday and I met with some of the people involved in the hotel business and the tourism industry. I had the chance to do the same in Kilkenny only a few weeks ago. I do not agree with the charge that all or most hotels are engaged in price-gouging. I do not think that is true even in Dublin. It may be that a small number of hotels in the city centre that took advantage of a couple of busy weekends and sold the last couple of rooms at a ridiculous price. In doing so, they have done reputational harm to the industry. I have never believed in collective punishment and I do not think the fact that some hotels may have behaved in that way should be the main reason we make any decision on this matter.