This discussion is centred on extending certain provisions of the Civil Law (Miscellaneous Provisions) Act. This extension aims to allow the hospitality sector to continue providing outdoor seating areas for the sale and consumption of alcohol. Independent Ireland and I are in full agreement with this extension. This is crucial for offering clarity and certainty to business, patrons, local authorities and An Garda Síochána. As a politician, business owners speak to me on a daily basis about the costs of doing business in Ireland. They constantly ask me when the VAT rate will be reduced to make it somewhat easier to keep their doors open. The Restaurants Association of Ireland, RAI, expressed significant concerns about the current state of the restaurant industry. It recently highlighted that 150 restaurants closed in the first quarter of 2025 due to soaring business costs. The RAI warns that more closures could follow if these financial pressures continue. The association is actively lobbying for changes in regulation and legislation to support the industry. It emphasises the need for Government action to prioritise tourism and hospitality, which are vital to the economy. The association has put forward several key proposals to support the restaurant industry. Some of these proposals include decoupling VAT rates, separating the VAT rate for food services from accommodation and advocating for a reduced VAT rate for a food service while maintaining the current rate for accommodation. It emphasises the need for greater support for hospitality apprenticeships to ensure skilled workers and a five-year strategy for developing a comprehensive strategy to boost food and drink tourism in Ireland. These proposals aim to address the financial challenges facing the industry and ensure its long-term sustainability. While we are talking about seating outside businesses, I fully support this legislation going through but I have serious concerns that businesses are being rated for having seating and tables outside, mainly for the few months of the summer season. This is another kick in the teeth for businesses that are struggling at this present time. Business owners in my community have told me that they are being rated. These businesses we are talking about are paying rates already, electricity-----
Sentiment score: 0.21
However, it is all about seating, and the rates for seating are coming-----
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I know that, and I respect that, but I am only talking about the importance of having it there. The fact is that they now have it, but they are being punished for having it there by being rated. It is difficult for these business. In a few months, they are trying to turn over a profit and make enough to keep staff on board. These businesses are paying for rates, electricity, staff, VAT, PRSI, PAYE, telephones, Internet, purchase of stock, refuse, upkeep of buildings, maybe rent or a mortgage, and then they also have the Food Safety Authority of Ireland, and rightly so, keeping a very close eye and making sure they have everything right across the board. The whole point I am making is that, yes, this is very welcome, but I am afraid that, unfortunately, local authorities are taking advantage of this and seeing an opportunity to squeeze more money out of businesses that are already squeezed to within an inch of their lives. I was in west Cork last weekend at a fantastic fundraiser in The Fish Basket in Long Strand and there were maybe thousands of people there. Fantastic food was laid out there and in other outdoor businesses in Ballydehob, Bantry, Bandon, Clonakilty and Kinsale but they certainly are feeling the pinch. I know that and while it is greatly welcome to have this extension on seating areas outside, legislation needs to be put in place to protect businesses so that they are not being fleeced by having seating outside their door. We must support them. They need supports at this time because the VAT rate is still at 13.5%, although it was promised that it might drop back down to 9%. They need an assurance that is going to happen. That will help in that area. It is a huge issue that needs to be addressed.
Sentiment score: 0.37