DALY PLEDGE; “I WILL DEFEND LOWER VAT FOR RURAL HOTELS AND RESTAURANTS TO THE HILT

September 6th 2018

DALY PLEDGE; “I WILL DEFEND LOWER VAT FOR RURAL HOTELS AND RESTAURANTS TO THE HILT

Cork South West Minister Jim Daly has pledged he will; ‘’defend the current 9% VAT rate for rural hotels and restaurants’ to the hilt at this week’s Fine Gael think-in’’.

The Department of Finance has strongly signalled its support for a full restoration of the 13.5% rate.
Mr Daly however said;

‘’Dublin based officials are not always best informed on the realities faced by the main street in rural Ireland.
The 9% rate was the key initiative of Leo Varadkar’s reign as Tourism minister.

Single-handedly, Leo gave an unprecedented boost to enterprise and the rural economy.

Tourism was one of the few areas of growth in an imploding economy’’

Mr Daly conceded that when it came to increasing the 9% rate;

‘’Some big-spenders are coining it in Dublin but that does not mean we throw out the 9% rate with the bathwater.
In taxation policy one size does not fit all.

In West Cork we had a thriving summer, but the tourist economy and rural enterprise is still fragile.

We know, for small hotels and enterprises any recovery needs continued ongoing nurturing.

VAT is a tax on work and enterprise which small rural enterprises can ill-afford to pay.

The unsustainable increase in hotel prices in Dublin is a creature of greed, irresponsibility and market supply.
But a cautious doctor knows that what cures one patient kills another.

Simply increasing the 13.5% rate will intensify the urban rural divide and the sense that Dublin ‘has it in for us’.

We need a more sophisticated response to the issue of VAT and rural enterprise than a fiscal guillotine.

This could be centred on thresholds where millionaires pay millionaire VAT rates and the small hotel in rural Ireland is given space to grow.

We should also note the benefit of investing billions in rural Ireland will be gravely compromised if it is turned into an economic desert.

Under this government the weeds are off the Main Street and I intend to keep it that way.

In that regard Shane Ross can be assured that when it comes to his defence of the special rate for rural Ireland I will be right behind him’’. 

 

ENDS