Government’s tourism policy producing thousands of new jobs – O’Donovan

Fine Gael Limerick TD and member of the Oireachtas Committee on Transport and Tourism, Patrick O’Donovan, has welcomed a report from the Restaurants Association of Ireland which shows over 21,000 new jobs have been created in the hospitality sector since the Government reduced the VAT rate in 2011.

“The decision by Michael Noonan to reduce VAT in the tourism sector from 13.5% to 9% together with his decision to reduce the travel tax to 0%, are having a very positive impact on the hospitality industry.

“I have spoken to Limerick business people in the hospitality sector over the last few months and they all agree that the decision to reduce VAT has been the most positive development for the industry since the economic collapse.

“The decision to reduce VAT to 9% was taken as part of the Jobs Initiative 2011 and was opposed at the time by Fianna Fáil, Sinn Féin and the Independents. Their opposition was another example of party politics coming before what is best for the country.

“Since then, even after seeing the success of the measure, the opposition have refused to admit that they were wrong. This is something people need to bear in mind as they consider who is best equipped to run the economy as we enter recovery.

“There is no doubt but that these measures are working, and here in the Mid-West they have been further strengthened by the Government’s decision to grant independence to Shannon Airport. This was again something the last Government neglected to do and Fianna Fáil were begrudging in their support when the decision was made.

“Michael Noonan has been clear in his budgets in his support for the Tourism sector and these job figures prove that he was correct. While some people might choose to ignore the numbers, the reality is that this sector of the economy is benefitting from Government action and it is vital that the positive approach of Government to the tourism sector continues in the forthcoming budget.”