Catherine Martin at odds with Eamon Ryan in push to keep reduced Vat for hospitality 

The Green Party's Catherine Martin said she believes the lower rate needs to be "kept under consideration".

Rental, hotel, stock, generic

The Tourism Minister says she will push the Government to retain the lower hospitality industry Vat rate, despite indications from her party leader that it will come to an end.

Catherine Martin has signalled her preference for the 9% rate to be retained but during Leaders' Questions on Thursday, Green Party leader Eamon Ryan said it was necessary to "restore the tax base".

Speaking to the Irish Examiner at the launch of a new Music Production stream to the BA (Hons) Commercial Modern Music course at BIMM Institute in Dublin, Ms Martin said she believes the lower rate needs to be "kept under consideration".

"I believe we need to keep it under consideration myself and Minister (Simon) Coveney, in his new role in the Department of Enterprise, Trade and Employment are co-chairing the tourism and hospitality forum on February 1, so next week we'll be engaged with the industry," she said.

"I think it's known that I that I'm advocating to hold on to this that lower Vat rate but we need to keep engaging with the industry on that before the decisions are made with Cabinet colleagues."

Ms Martin said the industry's competitiveness could be hit if the rate is not retained which could have a knock-on effect with employment.

Catherine Martin joins Jude Forrester, Uisce Jones, Mike O'Connell and Hannah Kinsella from BIMM Institute Dublin at the launch of the new Music Production stream to the BA (Hons) Commercial Modern Music.

Earlier on Thursday, the Government gave its strongest indication that Vat reductions on hospitality will come to an end in the coming weeks.

The energy credit for households, a reduced 9% Vat rate on electricity and gas, reduction in excise duty on petrol and home heating oil are some of the cost-of-living measures introduced by the Government last year that are due to terminate at the end of February, as well as the ban on energy disconnections.

Mr Ryan said because of a warmer than expected winter and a reduction in gas prices, the Government must look at “restoring our tax base”.

Speaking at Leaders’ Questions, he said the price of gas had come down very significantly from what it was five or six weeks ago.

“In those circumstances, we do have to look at restoring our tax base because the benefit of excise and Vat is that it helps provide us a stable income that allows us pay for the pay increase in the public service which we need to deliver on,” he said.

While Taoiseach Leo Varadkar said there would not be a “cliff-edge”, Mr Ryan made clear the basis for the cuts in taxes were not tenable any more, given the decreases in prices in fuel in recent weeks.

Refugees

Meanwhile, when asked if the hospitality industry could realistically afford to keep rooms for refugees in the tourism season, Ms Martin said that she would examine supports for those industries affected.

Many hotel contracts for housing refugees end in the coming weeks and Ms Martin said: "We're very cognisant of the fact that March is the kickoff to the tourism season. We're waiting to hear from Minister O'Gorman's department to get the final numbers in relation to contracts that will or will not be renewed with hotels, but we've taken in over 73,000 people fleeing from war for refuge here. It's the size of Galway city in the last year. 

"There are at least 700 modular rapid builds to come on stream and there's what we're doing with refurbishments in the vacant homes so we should see 6,000 or 7,000 beds come on stream in the coming months.

"But I'm absolutely aware of the concerns there and have be engaging with the industry. And of course then in relation to supports, we have to look at the knock-on to the wider tourism ecosystem.

"Because at the end of the day, this is an industry that supports 250,000 jobs and a lot of them are outside the city in the regions and we need to keep those rural Ireland breathing with activity for those jobs."