Vóta Dála · 16 Deireadh Fómhair 2024

VAT Rate for Hospitality Sector: Motion (Resumed) [Private Members]

Amendment to amendment put

Roinn an vóta seo

WhatsApp X Facebook Ríomhphost

Féach conas a vótáil TDanna do cheantair, agus faigh scéala an chéad uair eile.

Conas a vótáil do TDanna?

Ní úsáidtear ach na chéad trí charachtar d’Eircode, agus i do bhrabhsálaí amháin.

Cad is brí leis an vóta seo

Rún beartais

Cuireann rún beartais seasamh an Tí in iúl nó iarrann sé gníomh. Ní athraíonn sé an dlí ann féin ná ní chuireann sé iallach dlíthiúil ar an Rialtas an beartas a chur i bhfeidhm.

Ciallaíonn Tá 'tá' agus Níl 'níl' don cheist bheacht a cuireadh. Ní shoiléiríonn an vóta amháin seasamh iomlán ná cúiseanna TD.

Léirmhíniú DáilDex ar an bhfoclaíocht oifigiúil.

Gluais an Oireachtais

An toradh

Lost

Tá: 54
Níl: 73
Staon: 0

Áiritheoirí: Tá, Deputies Ged Nash and Sean Sherlock; Níl, Deputies Hildegarde Naughton and Cormac Devlin.

Taifead oifigiúil Léigh an díospóireacht

Conas a vótáil gach páirtí

Páirtí	Tá	Níl	Staon	Gan vóta	Formhór
Fianna Fáil	1	30	–	–	Níl
Fine Gael	–	29	–	–	Níl
Sinn Féin	26	–	–	–	Tá
Green Party	–	11	–	–	Níl
Independent	9	–	–	2	Gan fuip
Labour Party	5	–	–	–	Tá
Independent Ireland	3	–	–	–	Tá
Independents 4 Change	3	–	–	–

Conas a vótáil gach TD

124 as 124 TD á dtaispeáint

Aengus Ó SnodaighSinn Féin · Dublin South-Central
Tá
Alan DillonFine Gael · Mayo
Níl
Alan FarrellFine Gael · Dublin Fingal
Níl
Bernard DurkanFine Gael · Kildare North
Níl
Brendan GriffinFine Gael · Kerry
Níl
Brendan HowlinLabour Party · Wexford
Tá
Brendan SmithFianna Fáil · Cavan-Monaghan
Níl
Brian LeddinGreen Party · Limerick City
Níl
Carol NolanIndependent · Offaly
Tá
Cathal BerryIndependent · Kildare South
Gan vóta
Cathal CroweFianna Fáil · Clare
Níl
Catherine ConnollyIndependents 4 Change · Galway West
Tá
Catherine MartinGreen Party · Dublin Rathdown
Níl
Charles FlanaganFine Gael · Laois
Níl
Charlie McConalogueFianna Fáil · Donegal
Níl
Christopher O'SullivanFianna Fáil · Cork South-West
Níl
Cian O'CallaghanSocial Democrats · Dublin Bay North
Tá
Ciarán CannonFine Gael · Galway East
Níl
Claire KerraneSinn Féin · Roscommon-Galway
Tá
Colm BrophyFine Gael · Dublin South-West
Níl
Colm BurkeFine Gael · Cork North-Central
Níl
Cormac DevlinFianna Fáil · Dún Laoghaire
Níl
Damien EnglishFine Gael · Meath West
Níl
Danny Healy-RaeIndependent · Kerry
Tá
Dara CallearyFianna Fáil · Mayo
Níl
Darragh O'BrienFianna Fáil · Dublin Fingal East
Níl
Darren O'RourkeSinn Féin · Meath East
Tá
David CullinaneSinn Féin · Waterford
Tá
David StantonFine Gael · Cork East
Níl
Denise MitchellSinn Féin · Dublin Bay North
Tá
Dessie EllisSinn Féin · Dublin North-West
Tá
Duncan SmithLabour Party · Dublin Fingal East
Tá
Éamon Ó CuívFianna Fáil · Galway West
Níl
Eamon RyanGreen Party · Dublin Bay South
Níl
Emer HigginsFine Gael · Dublin Mid-West
Níl
Eoin Ó BroinSinn Féin · Dublin Mid-West
Tá
Fergus O'DowdFine Gael · Louth
Níl
Francis Noel DuffyGreen Party · Dublin South-West
Níl
Frankie FeighanFine Gael · Sligo-Leitrim
Níl
Gary GannonSocial Democrats · Dublin Central
Tá
Ged NashLabour Party · Louth
Tá
Heather HumphreysFine Gael · Cavan-Monaghan
Níl
Helen McEnteeFine Gael · Meath East
Níl
Hildegarde NaughtonFine Gael · Galway West
Níl
Imelda MunsterSinn Féin · Louth
Tá
Ivana BacikLabour Party · Dublin Bay South
Tá
Jack ChambersFianna Fáil · Dublin West
Níl
Jackie CahillFianna Fáil · Tipperary
Níl
James BrowneFianna Fáil · Wexford
Níl
James LawlessFianna Fáil · Kildare North
Níl
James O'ConnorFianna Fáil · Cork East
Níl
Jennifer Murnane O'ConnorFianna Fáil · Carlow-Kilkenny
Níl
Jim O'CallaghanFianna Fáil · Dublin Bay South
Níl
Joan CollinsIndependents 4 Change · Dublin South-Central
Tá
Joe O'BrienGreen Party · Dublin Fingal
Níl
John BradySinn Féin · Wicklow
Tá
John LahartFianna Fáil · Dublin South-West
Níl
John Paul PhelanFine Gael · Carlow-Kilkenny
Níl
Johnny GuirkeSinn Féin · Meath West
Tá
Johnny MythenSinn Féin · Wexford
Tá
Josepha MadiganFine Gael · Dublin Rathdown
Níl
Kieran O'DonnellFine Gael · Limerick City
Níl
Leo VaradkarFine Gael · Dublin West
Níl
Louise O'ReillySinn Féin · Dublin Fingal West
Tá
Mairéad FarrellSinn Féin · Galway West
Tá
Marc MacSharryFianna Fáil · Sligo-Leitrim
TáIn aghaidh an pháirtí
Marc Ó CathasaighGreen Party · Waterford
Níl
Marian HarkinIndependent · Sligo-Leitrim
Tá
Martin BrowneSinn Féin · Tipperary
Tá
Martin HeydonFine Gael · Kildare South
Níl
Martin KennySinn Féin · Sligo-Leitrim
Tá
Mary ButlerFianna Fáil · Waterford
Níl
Matt CarthySinn Féin · Cavan-Monaghan
Tá
Matt ShanahanIndependent · Waterford
Tá
Mattie McGrathIndependent · Tipperary South
Tá
Maurice QuinlivanSinn Féin · Limerick City
Tá
Michael CollinsIndependent Ireland · Cork South-West
Tá
Michael CreedFine Gael · Cork North-West
Níl
Michael FitzmauriceIndependent Ireland · Roscommon-Galway
Tá
Michael Healy-RaeIndependent · Kerry
Tá
Michael MoynihanFianna Fáil · Cork North-West
Níl
Michael RingFine Gael · Mayo
Níl
Micheál MartinFianna Fáil · Cork South-Central
Níl
Mick BarryPeople Before Profit-Solidarity · Cork North-Central
Tá
Neale RichmondFine Gael · Dublin Rathdown
Níl
Neasa HouriganGreen Party · Dublin Central
Níl
Niall CollinsFianna Fáil · Limerick County
Níl
Niamh SmythFianna Fáil · Cavan-Monaghan
Níl
Norma FoleyFianna Fáil · Kerry
Níl
Ossian SmythGreen Party · Dún Laoghaire
Níl
Pa DalySinn Féin · Kerry
Tá
Pádraig Mac LochlainnSinn Féin · Donegal
Tá
Pádraig O'SullivanFianna Fáil · Cork North-Central
Níl
Paschal DonohoeFine Gael · Dublin Central
Níl
Pat BuckleySinn Féin · Cork East
Tá
Patricia RyanIndependent · Kildare South
Gan vóta
Patrick CostelloGreen Party · Dublin South-Central
Níl
Patrick O'DonovanFine Gael · Limerick County
Níl
Paul DonnellySinn Féin · Dublin West
Tá
Paul KehoeFine Gael · Wexford
Níl
Paul McAuliffeFianna Fáil · Dublin North-West
Níl
Peadar TóibínAontú · Meath West
Tá
Pearse DohertySinn Féin · Donegal
Tá
Peter FitzpatrickIndependent · Louth
Tá
Réada CroninSinn Féin · Kildare North
Tá
Richard BrutonFine Gael · Dublin Bay North
Níl
Richard O'DonoghueIndependent Ireland · Limerick County
Tá
Robert TroyFianna Fáil · Longford-Westmeath
Níl
Roderic O'GormanGreen Party · Dublin West
Níl
Róisín ShortallSocial Democrats · Dublin North-West
Tá
Rose Conway-WalshSinn Féin · Mayo
Tá
Ruairí Ó MurchúSinn Féin · Louth
Tá
Seán CanneyIndependent · Galway East
Tá
Seán CroweSinn Féin · Dublin South-West
Tá
Sean FlemingFianna Fáil · Laois
Níl
Seán HaugheyFianna Fáil · Dublin Bay North
Níl
Seán SherlockLabour Party · Cork East
Tá
Simon CoveneyFine Gael · Cork South-Central
Níl
Stephen DonnellyFianna Fáil · Wicklow
Níl
Steven MatthewsGreen Party · Wicklow
Níl
Thomas ByrneFianna Fáil · Meath East
Níl
Thomas PringleIndependents 4 Change · Donegal
Tá
Violet-Anne WynneIndependent · Clare
Tá
Willie O'DeaFianna Fáil · Limerick City
Níl

An téacs iomlán ar vótáil na Teachtaí air

Chinn an vóta seo leasú ar leasú: athrú atá beartaithe ar an téacs ionaid, seachas ar an rún bunaidh.

Is féidir le rún roinnt tograí a chur le chéile. Baineann Tá nó Níl leis an gceist iomlán a cuireadh, mar sin d'fhéadfadh TD aontú le cuid amháin agus vótáil ina choinne fós mar gheall ar chuid eile. Léigh an fhoclaíocht iomlán, agus an díospóireacht inar thug na Teachtaí a gcúiseanna, sula nglactar leis an vóta seo mar sheasamh ar phointe ar bith amháin.

An rún mar a tairgeadh éArna thairiscint ag Deputy Michael Fitzmaurice ar Wednesday, 16 October 2024

That Dáil Éireann:
notes that:
— inflationary pressures over the past number of years have significantly exacerbated financial pressures on both consumers and businesses, particularly within the food service sector, which has been severely impacted by the spiralling costs of energy, food produce, insurance, labour and supply chain disruptions;
— food-serving hospitality businesses, and hospitality businesses more generally, were among the hardest hit by the economic consequences of the COVID-19 pandemic, with many food-led businesses experiencing a sharp decline in revenue due to lockdowns, public health restrictions, and subsequent changes in consumer behaviour;
— energy, labour and supply chain costs have sharply increased over the past two years, with food service businesses, including restaurants, cafés and pubs, finding themselves disproportionately affected due to their high operational dependency on energy and fresh supplies, alongside growing difficulties in hiring and retaining staff in a competitive labour market;
— the temporary reduction in the VAT rate for the hospitality sector during the COVID-19 pandemic, which applied to food sales, provided critical and timely relief to many struggling food service businesses, enabling them to remain viable, maintain jobs, and serve their local communities during a period of profound economic disruption;
— however, this temporary VAT reduction ended in September 2023, resulting in a 50 per cent increase in the hospitality sector's VAT rate from 9 per cent to 13.5 per cent, which has further exacerbated financial pressures on food-led businesses and threatened their viability;
— the Restaurants Association of Ireland (RAI), in its pre-Budget submission, has formally requested the reinstatement of a lower VAT rate specifically for food sales, not the accommodation element of the hospitality sector, highlighting the necessity of such a measure to ensure the survival of the food sector in the face of the cost of doing business challenges facing the hospitality sector;
— food-led businesses play an essential role in Ireland's economy, providing employment for tens of thousands of individuals, particularly in rural and regional areas, where restaurants and cafés are often integral to the local economy and serve as key drivers of tourism and community life;
— food businesses also contribute significantly to Ireland's cultural identity, promoting local cuisine and food heritage, while being instrumental in attracting international tourists to the country, a sector that is critically important to the broader Irish economy;
— the reversion to a higher VAT rate for food sales has exacerbated financial pressures on small- and medium-sized food service businesses, with many facing the prospect of closure due to the unsustainable nature of current operating conditions, as demonstrated by the closure of over 600 food-led businesses in the past twelve months alone; and
— the food service sector is still reeling from the long-term effects of the COVID-19 pandemic, including the warehousing of revenue debts which are now coming due for repayment, further compounding the financial burden on businesses that are already struggling to cope with rising costs;
recognises that:
— many restaurants, cafés and other food-serving hospitality businesses continue to grapple with the financial fallout from COVID-19 restrictions, with inflationary pressures and labour shortages now posing additional, severe challenges to their operational viability;
— a competitive VAT rate, as opposed to the current rate which ranks amongst the highest in the European Union (EU), is not only critical to the viability of the food service sector, but is also essential to the broader economy, given the sector’s role in providing employment, supporting tourism and fostering community resilience, particularly in rural and regional areas;
— reinstating a 9 per cent VAT rate specifically for food sales would enable businesses to manage rising operational costs more effectively, reduce the need to pass on price increases to consumers and provide a safeguard against the potential closure of many more food-led enterprises, which would otherwise risk the loss of jobs and vital community services;
— food-led businesses face a unique set of challenges that differ from other parts of the hospitality sector, including hotels in larger cities that can rely on high-margin accommodation services and practices such as dynamic pricing to maintain profitability in the face of rising costs meaning, as such, that hotel rooms and all-inclusive or bed and board deals should not attract the lower VAT rate intended to assist food-led businesses;
— the reinstatement of a lower VAT rate for food sales would directly benefit consumers, by ensuring that food service businesses can absorb some of the rising costs of raw materials, energy, and labour without passing on unsustainable price increases to customers, many of whom are already struggling with the rising cost of living;
— the successful implementation of similar VAT reductions on food sales in other EU member states, in accordance with EU VAT law, demonstrates that such measures are both feasible and effective, providing essential relief to struggling food service sectors in times of economic difficulty, and promoting long-term stability and job retention within the sector;
— successive increases to the National Minimum Wage, while aimed at improving living standards, have contributed to wider wage inflation across the food service sector, further increasing the financial strain on businesses that already operate on narrow margins;
— the introduction of, and subsequent increases in, statutory paid sick days, though beneficial for workers, have added additional costs to employers in the food service industry, many of whom are struggling to absorb these new financial and regulatory obligations in the face of rising operational costs; and
— the impending introduction of pension auto-enrolment will further increase the cost burden on employers, particularly small- and medium-sized businesses in the food-led sector, who must now account for these additional mandatory contributions, compounding the financial pressures caused by inflation and other regulatory changes;
acknowledges that:
— the previous temporary VAT reduction for the hospitality sector demonstrated the positive and wide-reaching effects of such a measure, helping to sustain jobs, protect businesses, and secure Ireland's reputation as a leading food tourism destination;
— EU VAT directives allow member states to apply lower VAT rates to specific sectors, including food sales, thereby offering the Government a legally sound and flexible framework for implementing the permanent reinstatement of a lower VAT rate for food-led businesses, without breaching European law or undermining public finances;
— the distinct operational and financial needs of food-led businesses, which often operate on narrower margins and face higher fixed costs than other parts of the hospitality sector, necessitate targeted VAT relief measures that are specifically designed to protect and support these businesses; and
— food service businesses, particularly those operating in smaller towns and rural areas, serve as economic and social hubs within their communities, offering essential services and contributing to the social fabric of Irish society; and
calls on the Government to:
— permanently reinstate a lower 9 per cent rate of VAT on food sales in Ireland, in line with the pre-Budget submissions of the Restaurants Association of Ireland, ensuring that this rate applies specifically to food-led businesses and not to other parts of the hospitality sector such as the provision of accommodation by hotels;
— ensure that this targeted VAT relief measure is implemented in a way that reflects the specific needs of food-led businesses, including restaurants, cafés and other food service establishments, which are uniquely vulnerable to rising operational costs and inflationary pressures;
— recognise the critical contribution of the food service sector to the Irish economy and prioritise the protection and sustainability of this sector as a vital component of the country's broader economic and social infrastructure;
— take into account the long-term benefits of reinstating a lower VAT rate for food sales, including increased job retention, enhanced economic resilience, the continued growth of Ireland's food tourism industry and the preservation of Ireland's unique cultural and culinary heritage; and
— engage in meaningful and sustained dialogue with representatives of the food service sector, including the Restaurants Association of Ireland, to ensure that future VAT policy decisions are informed by the real-world experiences and challenges facing businesses and consumers and that any future changes to VAT rates are designed to foster long-term stability and competitiveness within the sector.

Leasú Uimh. 1Arna thairiscint ag Minister of State at the Department of Enterprise, Trade and Employment, Deputy Emer Higgins

To delete all the words after "Dáil Éireann" and substitute the following:
"notes that:
— the Government is very conscious of the needs of the tourist and hospitality sector and wants to maintain a healthy and profitable environment for these sectors going forward;
— in this regard, it reduced on a temporary basis the Value Added Tax (VAT) rate from 13.5 per cent to 9 per cent on 1st November, 2020, in recognition of the fact that the sector was amongst the most impacted by the public health restrictions put in place throughout the pandemic;
— the cost of this VAT measure for the period from 1st November, 2020, to 31st August, 2023, was over €1.3 billion, and this represented a very substantial support by the Government to the hospitality and tourism related sectors;
— the cost of a further temporary VAT reduction to 9 per cent for a full year is estimated to be €868 million, and even where the measure is restricted to food and catering services, the estimated full year cost is €675 million; and
— Ireland is not significantly out of line with other countries in relation to the application of VAT in this sector, for instance, it is noteworthy that 14 European Union (EU) countries have a VAT rate of 12 per cent or higher on food services, and our nearest neighbour, Great Britain and Northern Ireland, has a VAT rate of 20 per cent on food services;
recalls that:
— the hospitality sector benefits when consumers have greater disposable income, so Government measures to address cost-of-living issues benefit business through increased household income;
— the Government has made substantial fiscal support available to assist with the cost-of-living challenges that arose after the global increase in energy prices;
— changes were made to the tax Debt Warehousing Scheme earlier this year, including a reduction in the interest rate on warehoused debt to zero per cent, which provided critical support to businesses in the hospitality sector (amongst other sectors) at a very difficult time;
— during the summer, the Government agreed a range of measures to assist businesses in adjusting to increased costs and to improve the cost competitiveness of firms more generally, and these measures included:

Leasú Uimh. 1 to amendment No. 1Cinneadh sa vóta seoArna thairiscint ag Deputy Ged Nash

To insert the following after "the 2 per cent USC ceiling band increased by 34 per cent or €6,898, going from €20,484 to €27,382":
"further notes that:
— individual hospitality sector businesses are facing a number challenges;
— employment in the accommodation and food services sector is close to an all-time high of 190,000, and focus must be on addressing the structural issues required to sustain businesses in the sector to improve innovation, skills development, productivity and sustainability;
— average hourly earnings in the accommodation and food sector continues to be one of the lowest of any economic sector;
— the National Minimum Wage (NMW) remains below the level needed for a living income, and supports calls for it to be linked to 66 per cent of average hourly wages, above the Government target of 60 per cent from 2026;
— there is an 'inability to pay' clause in law for employers who are unable to pay NMW rates to enable them to seek an exemption from increases; and
— Ireland lags behind other European countries on the provision of worker's rights and benefits, and that auto-enrolment and statutory sick pay are long overdue;
calls for:
— the establishment of a State agency to support the hospitality sector, modelled on Teagasc, to boost sustainability and productivity, and provide research, advisory and training services;
— a strategy to drive down costs for small businesses focused on energy and insurance prices;
— increased discretionary powers for local authorities to levy a hotel bed tax if they wish, as is the norm in other European countries, to fund investment in the public realm of our cities and towns;
— reform of the outdated commercial rates system; and
— reform of outdated licensing laws to support the night-time economy".

An fhoclaíocht mar a foilsíodh í i dtaifead oifigiúil na Dála, gan eagarthóireacht. Léigh an díospóireacht