Deal on lower tax to help hospitality sector is at odds with rosy outlook for restaurants and hotels
Deal on lower tax to help hospitality industry is at odds with rosy outlook for accommodation and food services sector
His brother, Michael, lists himself as a postmaster, farmer, service-station owner, plant-hire operator and owner of 25 properties. He supplies diesel to the council and rents it some of his properties. The Programme for Government negotiated between Fine Gael, Fianna Fáil, the regional independents and the Healy-Raes acknowledges that increased cost pressures on hospitality and other sectors will entail changes to VAT, PRSI and other measures. A cut in the rate for food-based hospitality to 9 per cent is pencilled in for the next budget.
In truth, what the figures show is that the market forces of a capitalism are doing their Darwinian thing in the restaurant and hospitality sector. Unprofitable restaurants may be closing, but people are finding work elsewhere in the industry as new places open and others continue to make money. The loudest voices in the debate are those of the owners of the businesses that are no longer viable in the changed circumstances. Their anger is understandable: they are losing their businesses and livelihoods. They are also very hard for politicians to ignore and particularly those with the modus operandi of the Healy-Raes.
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