Over the past number of months, like many other Deputies in the Chamber, we have met different sectors in respect of the budget. One of these which stood out clearly to me to be struggling was the hotel sector. In west Cork, I met the owners of the Emmet Hotel, the Fernhill House and Gardens Hotel in Clonakilty, and the Celtic Ross Hotel in Rosscarbery. These are brilliant, grand, family hotels in west Cork, which all represent tourism in the hotel sector there.

One part of the discussions we had was on the great struggle for them to keep their doors open due to added costs, energy, staff, wages, etc. These hotels did no business during the Covid-19 epidemic. They are not like the few rogue-trading hotels in our capital which have bled people dry in recent times. The hotel owners in west Cork are telling me that family members will have to work in these hotels for free if they are to keep their doors open. The Minister for Finance in this week’s budget said that the 9% VAT rate will end in February, when it will increase then to 13.5%. This will have a very severe negative effect on tourism in west Cork and throughout the country, an industry, I may add, which creates thousands of jobs.

In the interests of protecting much-needed tourism jobs, will the Tánaiste fight to keep the VAT rate at 9% for the next 12 months at least?

I thank the Deputy for his question. When I meet with hoteliers, and I do very regularly, the two issues they raise with me most are, first, the struggle they have to recruit and retain staff. We are helping that through the work permit system, providing training and other options, and by making work pay better. Some of the things the Deputy will have seen in the budget will help in that regard.

The second issue raised is energy bills. The Deputy will know how we are going to help with that through the temporary business energy support scheme, TBESS.

On VAT, the decision in the budget is that we are extending that concessionary 9% rate until the end of February.