Over 21,000 Jobs Created By Tax Reductions

More than 21,000 new jobs have been created in the hospitality sector since the government reduced the VAT rate in 2011, according to a new report by the Restaurant Association of Ireland.

Welcoming the news, Fine Gael Limerick TD and member of the Oireachtas Committee on Transport and Tourism, Patrick O'Donovan, said that decision to reduce VAT in the tourism sector from 13.5% to 9%, together with removing travel tax, is having "a very positive impact" on the hospitality trade.

"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," Deputy O'Donovan said.

Adding: "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.

"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."


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