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Seanad
‹ An tOrd Gnó - Order of Business

Hospitality VAT rate

Summary

Senator Casey criticised the budget’s failure to extend the 9% hospitality VAT rate, and Senator Buttimer supported a broader debate on hospitality and tourism with relevant Ministers.

My issue relates to the budget of last week and my disappointment in relation to the extension of the VAT rate for the hospitality sector. At a time when that sector faces many challenges as it tries to get back to the capacity it had before the pandemic, it was unfortunate that no clear indication was given by the Minister for Finance, Deputy Donohoe, and no budget line was made to extend the VAT provision beyond 28 February. Adding to the confusion and frustration for me and the industry was that within three or four hours of the Minister announcing that, the Tánaiste intervened and said no decision had been made on VAT for the hospitality sector.

I understand what has happened in the hotel sector, with the irresponsible behaviour of a limited number of hotels in relation to the prices they charge and the damage that is doing to our industry on the international market. It is irresponsible by them and is doing untold damage to the sector. However, I need the Minister to look beyond the hotel sector. The VAT rate includes cafes, restaurants, bars and hairdressers. If the Tánaiste is being honest in saying the decision has not been made, what are the guidelines to making this decision in February? What circumstances would allow the hospitality sector to continue with the preferential 9% VAT rate it has at the moment? I hope it is not based on a limited number of hotels gouging the market and doing untold damage to our sector.

Comment on this

I concur with the request of Senator Casey for a debate, not just on the 9% VAT rate but on hospitality and tourism. It is interesting that, post Covid, there has been an interest in and pent-up demand for tourism globally, which has flatlined in the middle of this year. I raised the issue of the 9% VAT rate before the budget. It is important that, as we enter a critical period for hospitality, we have that debate. I ask that the Ministers with responsibility for finance, public expenditure, tourism and enterprise, as part of a rolling debate, come to the House to help us have an informed discussion on where we go in the context of hospitality and tourism. Today we have Aer Lingus in the transport committee, as part of aviation. It is important.

I congratulate and welcome the comments this morning by the Tánaiste in the enterprise committee, where he said the requirement for proof of domestic abuse should not be included in the upcoming legislation by the Minister, Deputy O'Gorman. That is a positive move. I hope all of Government will listen to that. The five days' paid leave for victims of domestic abuse is something we all welcome. It would be very wrong if any woman had to present proof of domestic abuse to avail of that leave.

I ask the Deputy Leader that we have a debate on the Dublin convention. Last week, ministers for justice were in Dublin and signed that convention. It is important that we have that debate as part of our pieces of legislation to improve and enhance the lives of all citizens, particularly women, in the workforce as well.

That leads to my final point, which is that I would like a debate on the nature of work, given that the world of work has changed and is changing and evolving.

Comment on this