The Government rejected a motion put forward by the Regional Independent Group of TDs which includes Deputy Michael Lowry last night calling for measures to support the hospitality sector.
The motion which was supported by all opposition groups called for the reintroduction of the 9% VAT rate for the food and hospitality sector, an extension of the 8.8% employer’s ceiling on wages up to €495 per week & the establishment of a Government task force to examine issues causing closures.
The Government’s countermotion, passed with 73 votes to 64
The Government defended it’s policies and pointed to the Increase in Cost of Business(ICOB) scheme which will provide a once off grant of a maximum of €5,000 for rate paying business operators and highlighted that the Government has set the interest on warehoused tax debt at 0% and will allow business longer to pay the debt.
Two government Departments are to undertake joint assessment of the cumulative impact of changes to working conditions on employers – the Department of Enterprise, Trade and Employment, working jointly with the Department of Social Protection
The Restaurants Association of Ireland(RAI) says the outcome is disappointing for it’s 3,000 members. The RAI will continue to lobby for the 9% VAT rate saying that it is the only measure that will ensure a sustainable future for small, independent restaurants and cafés across the country.
