I thank the Deputy for highlighting this important issue. I am taking this on behalf the Minister for Housing, Local Government and Heritage. The Department of Enterprise, Tourism and Employment has drafted the general scheme of the short-term letting and tourism, STLT, Bill in full alignment with the EU short-term rental regulation, which is what the Deputy is talking about. We have a collaborative approach between enterprise and tourism. The introduction of the STLT Bill will provide a more effective legal and administrative basis to regulate short-term lettings. The Bill, when enacted, will provide a statutory basis for the introduction of a register for all short-term lettings in Ireland, which will be implemented and managed by Fáilte Ireland. All short-term letting accommodation providers will be required to register with Fáilte Ireland. As part of the registration process, accommodation providers will need to confirm that they are planning compliant, one of the issues the Deputy mentioned. The Government has approved a threshold-based approach to generally preclude new planning permissions for short-term lets in larger towns and cities where, often, long-term residential housing need is significant. Further to this, the Cabinet committee on housing has proposed that the threshold be set at towns and cities with a population of more than 20,000, amounting to 25 towns based on the most recent census of population. It is intended that accommodation providers in all other locations outside the largest towns and cities will be able to avail of an extended period to meet planning compliance requirements. To ensure that there is a clear view, at national level and local authority level, as to the overall policy approach to determining planning applications for short-term lets, the Department of Housing, Local Government and Heritage is currently finalising a national planning statement on short-term letting to supplement and support the introduction of the STLT Bill. The NPS will ensure a transparent, consistent overall policy approach, both nationally and at local authority level, to determining planning applications for short-term letting that will complement and support the introduction of the STLT Bill. It considers various factors such as existing planning legislation, the location and potential benefits of the proposed short-term letting property and the overarching aim to balance housing need with the potential impact on tourism and economic development. The NPS is being finalised as a priority and a draft will be brought to Cabinet shortly. That was one of the Deputy's questions. I will go back to the Minister today to find out when this will be brought to Cabinet and signed off. Tourism is important to the economy and the Government is mindful of concerns in both rural areas and in major tourism regions where short-term lettings provide much-needed accommodation for visitors. However, meeting local housing need across Ireland is a critical consideration and Government must use every lever available to assist in providing homes for our people, including returning properties to the long-term residential market.

Sentiment score: 0.18

This is an important matter. The Department of Housing, Local Government and Heritage has worked closely with the Department of Enterprise, Tourism and Employment, and is committed to developing a fair and balanced approach to the short-term letting question, which is crucial. As the Deputy said, as a proud Kerryman, he has always highlighted the needs in this area. I absolutely agree. It is about all of the different Departments working together. I believe this will have a good outcome. With the approach outlined earlier, the need for rental housing stock is being balanced with the need to protect rural and regional tourism and jobs, which are important. The long-term development of tourism requires that an appropriate equilibrium is achieved in the short-term and long-term rental sector. Tourism is very important to the economy. The Government is mindful of concerns in both rural regions and major tourism regions, where short-term lettings provide much-needed accommodation for visitors, as the Deputy mentioned. However, addressing Ireland's housing needs is a priority, and the Government must use every lever available, including returning some short-term letting properties to the housing market, which may include longer-term rentals. The approach to be taken in the STLT Bill, as well as in the national planning statement, will balance greater housing supply with the need to protect rural and regional tourism jobs. I again thank the Deputy for raising this very important issue. I am glad to provide him with as much information as I can. He is right that we need to get this finalised. We need to have the draft brought to Cabinet as soon as possible. I will go back to the Minister for housing. Clarification is crucial to provide information on what is happening for everyone. I will do that.

Sentiment score: 0.24

I thank the Deputy for raising this important issue and highlighting the role that pubs play in Irish life and culture by providing a central hub and meeting place in towns and villages across the country. The Government’s commitment to the sector was most recently demonstrated by the reduction in the VAT rate to 9%, recognising that the sector is highly labour-intensive. It forms a key part of the domestic economy and is expected to support over 150,000 jobs across the country. We can help to keep the doors open and the jobs going by providing clarity and certainty for these hospitality businesses. I assure the Deputy that while the Department of Finance receives pre-budget submissions from a wide range of stakeholders in advance of each budget, all are given consideration as part of the annual policy cycle. I am aware that the Department has received and acknowledged a submission from the VFI outlining a proposal for a payable tax credit for pubs. The proposed payable credit would be linked to the number of draught product kegs purchased by a business, and it would be subject to a per-premises cap of €20,000. Proposals for new tax expenditures are examined by reference to the Department’s tax expenditure guidelines, which outline the Government’s approach to how tax expenditures are best used, noting that these narrow the tax base and how they should be evaluated. A number of issues at a European level will need to be taken into account during these deliberations, including state aid requirements. Measures that confer a selective advantage on a specific sector have the potential to constitute state aid and, therefore, could not be introduced unless compliant with an existing framework or by undertaking a full notification process. It should be noted that the tax credits available for film and digital games are all approved state aids, largely under the terms set out in the EU’s Communication from the Commission on State aid for films and other audiovisual works, which would not have relevance to the on-trade sector. This is what the Minister for Finance has highlighted. Additionally, any tax credit given to rural pubs, or, indeed, to all pubs, and which is based on the supplies of alcohol products to those pubs, would have to be considered in the context of the alcohol structures directive if its effect, in practice, were to give relief from the rate of alcohol excise paid on alcohol products. This directive lays down a harmonised approach to excise duties on alcohol in the EU. It defines alcoholic beverages and sets out the basis on which excise duties on such products are to be established by member states, as well as the conditions for the application of reduced rates and special regimes. These are the issues Ministers are looking at. It is worth noting that there has been no general increase in excise duty rates for alcohol since 2014. While the retail price of beer has risen over that period, the excise duty has remained unchanged and, therefore, the total tax as a percentage of the retail price of each pint is lower than it was more than a decade ago. I assure the Deputy that the Government is conscious of the challenges facing all businesses in the current economic climate. The Cost of Business Advisory Forum is working to look at the structural issues that are driving up costs and the steps that could be taken to mitigate them. It is important to note that we understand the overheads and the way costs have risen for businesses. It is also important to highlight that a number of existing tax supports are available to all business, including the on-trade environment, to encourage investment in the economy, particularly in indigenous SMEs. These supports include the employment investment incentive, the start-up relief for entrepreneurs and the start-up capital investment. A range of direct expenditure supports are available to business and details can be found online at the national enterprise hub. Notwithstanding what I have said, the matters raised in the Deputy's submission will continue to inform ongoing policy consideration in the context of the budget. It is with the Minister.

Sentiment score: 0.35

What the Deputy has spoken about is really concerning. He can be assured I will go back to the Minister for Finance. I am aware of the importance of local pubs to Irish culture and the Irish economy, particularly in local and rural areas, which we are both from. Recent years have been challenging to the hospitality sector as a whole, particularly through the period of Covid restrictions. We saw huge changes then. However, those years also demonstrated the resilience and adaptability of businesses. Premises enhanced their outdoor areas and introduced food offerings. It was a big thing to see all the new outdoor areas. Premises adapted to changes in socialising behaviour by introducing new ranges of non-alcoholic drinks, for example, embracing coffee culture. Like all businesses, trade is facing challenges from increased costs. The Government is taking steps to alleviate these challenges, primarily through work co-ordinated by the Department of Enterprise, Tourism and Employment on the cost of business and an action plan for competitiveness and productivity. It is important that the Government support businesses, particularly indigenous SMEs, in all sectors of the economy. Actions have already been taken to support the hospitality sector, for example, through the VAT reduction to 9%, which will come into effect from July and will be of huge benefit to pubs selling food and hot drinks. The Government is also prioritising measures to help businesses and households with increased energy costs arising from the conflict in the Middle East. This has included reductions in the price of diesel and petrol, extension of the fuel allowance season and measures to support hauliers, bus passengers, operators, farmers, agricultural contractors and fisheries. The Government will continue this focus on supporting businesses across Ireland, including pubs, as we develop options for budget 2027. The Department has received and acknowledged the submission from the Vintners Federation of Ireland outlining a proposal for an on-trade sustainability scheme in budget 2027. I thank the Deputy for highlighting this. He can be assured I will go back to the Minister for Finance to highlight his concerns.

Sentiment score: 0.29