Laois Offaly TD says 'stratospheric' energy costs closing businesses left, right and centre

A Laois Offaly TD says businesses are closing left right and centre due to ‘stratospheric’ energy price increases.  

Deputy Carol Nolan made the comments while calling on the government to retain the 9% VAT rate for the tourism and hospitality sector which is due to increase to 13.5% on February 28.

The Independent TD said she has engaged with the Irish Hotels Federation on the matter and fully supports the IHF Midlands Branch, who have also called on Government not to increase taxes on Irish consumers and overseas visitors.

Deputy Nolan was speaking after information provided by Green Party Deputy Leader and Minister for Tourism, Catherine Martin, showed that while the number of vacancies across the industry has fallen from pandemic times, it is now estimated at 22,000.

“Tourism and hospitality supports approximately 4,700 jobs throughout Laois and Offaly alone, bringing in €66 million annually for the local economy,” said Deputy Nolan.

“It is critically important therefore that the proposed increase to the current VAT rate of 9% is suspended as this will most certainly do nothing in the long term but introduce yet another unsustainable cost increase alongside stratospheric increases in energy bills that are closing businesses left right and centre,” said Deputy Nolan.

“We can see from the tens of thousands of vacancies that exist across the industry that hotels and other tourism and hospitality businesses are struggling to find workers.” 

“We need to support these hotels in particular because they are keeping the show on the road,” said Deputy Nolan. 

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“I also think It is disingenuous of Minister Martin to talk of securing an additional €15 million for the domestic tourism industry’s recruitment and retention efforts; when she knows very well that this €15 million will be taken straight back from hotels as soon as the VAT rate increases,” she said. 

“If the Minister and Government are serious about recruitment and retention and supporting our largest indigenous industry then it must suspend the proposed VAT increase and allow the 9% rate to remain in place,” Deputy Nolan concluded.