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Seanad
‹ Order of Business

CervicalCheck and hotel VAT

Summary

The Leader responded to the CervicalCheck scandal by backing the Scally inquiry and insisting the truth must emerge. He then addressed criticism of the Newgrange prospect before a sharp exchange with Senator Gavan on the VAT subsidy for hotel rooms.

Senator Devine made reference to a number of issues, in particular the CervicalCheck scandal. All of us are cognisant of the fact that there are people who are suffering. The Scally inquiry has been established and it is important it gets to the truth. We can never allow this to happen again. It is not about obfuscation or passing the buck but about ensuring we get the full truth for all of the people involved.

Senator Grace O'Sullivan referenced the issue of the Newgrange prospect. I welcome the new historical finds. I know Providence Resources has issued a request around frontier exploration licence, FEL, 6/14. That is a matter for the Minister. He will make that decision and I will be happy to convey to him the comments of some Senators.

Senator Conway raised the issue of value added tax, VAT, and the threshold for the self-employed. That is part of the pre-budget submission of the Association of Independent Professionals and the Self-Employed, IPSE. I join the Senator in hoping the current VAT rate for the hospitality sector is retained. I know there is a debate on the cost of hotel rooms but I genuinely believe the introduction of the lower VAT rate has been of benefit to the whole hospitality industry. I go back to the argument I always make in the House, namely, that people should tell those who use the hairdresser every week or two weeks and the hairdresser who employs staff that we will increase the VAT rate.

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We are not saying that. We are calling specifically for the VAT subsidy for hotel rooms to be removed. We should all agree on that.

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All I am saying is that those making this argument should tell those people that. It is not just about the hotel rooms.

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We are not calling for it to be removed from them.

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Paul Coghlan An Leas-Chathaoirleach Fine Gael

I am sorry, we cannot debate it now.

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Senator Gavan cannot have it both ways. I know Sinn Féin want it both ways.

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We are very clear. We should remove the VAT subsidy from the hotel rooms. Does Senator Buttimer not agree with us?

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Paul Coghlan An Leas-Chathaoirleach Fine Gael

We can have that debate separately.

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It is important to be cognisant that the lower VAT rate helped create jobs and acted as a catalyst for boosting the economy.

What we need to do now is ensure that we continue with the creation of employment. We are near full employment, which involved a significant journey from where we were in 2011. I acknowledge Senator Gavan's point on hotel room prices. I have always said in this House hotel room prices have gone astronomically high, in particular, in the city of Dublin. However, one must bear in mind that the VAT rate applies not only to Dublin. It applies to all other parts of the country where there is not the same increase in hotel prices and where there is not the same occupancy rate. If one talks to hoteliers - I refer not to the big shots but the ordinary man or woman who is struggling - they will tell one not to touch it.

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Of course, they would.

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Paul Coghlan An Leas-Chathaoirleach Fine Gael

Order, the Leader without interruption.

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