Minister delivers on his ‘you’ve got a friend in me’ pledge

Outgoing Killarney Chamber of Tourism and Commerce President, Niall Kelleher, presenting a fountain pen carved from Killarney Arbutus wood, native to Killarney, to Finance Minister, Michael McGrath, to mark his recent visit to town.
Pictures: Valerie O’Sullivan

Killarney Chamber of Tourism and Commerce has welcomed the Government’s decision to extend the nine per cent hospitality VAT rate until the end of August, commenting that it will be very significant in helping the tourism industry to continue its post pandemic recovery.

Former Chamber President Niall Kelleher, whose two-year term ended earlier this month, said he had made the VAT issue his number one priority during his recent discussions with the Minister for Finance, Michael McGrath, and he thanked him for the positive outcome.

At the Killarney Chamber President’s lunch in January, which was attended by Minister McGrath, Mr Kelleher asked for measures to be taken to ensure commercial and industrial enterprises were supported.

“The minister was well aware of our campaign here in Killarney to ensure the nine per cent VAT rate was maintained beyond the planned cut-off date of February 23. He knew that the tourism and hospitality sector locally was most impacted by the public health restrictions,” Mr Kelleher said this week.

Hoteliers Tom and Bernadette Randles stressing the argument for the retention of the reduced VAT rate to Minister McGrath at the chamber president’s lunch

“The reality is that hospitality needed that support and if the 13.5% rate was reintroduced, it would have created a major disadvantage as consumers and overseas visitors would have been paying the third highest tourism VAT rate in Europe if visiting here,” he said.

“As the Kerry branch of the Irish Hotels’ Federation and its chairperson, Bernadette Randles, had repeatedly pointed out, they had done really well to rebuild employment levels in the tourism industry back to 90% of the pre-pandemic figure and they must now seek to restore and grow tourism further, which can be achieved with the reduced VAT rate,” Mr Kelleher added.

Tellingly, on that visit to Killarney on January 13, Minister McGrath reacted positively when the Chamber President called on him to support the continuation of the lower VAT rate.

Mr McGrath said he heard the message “loud and clear” and he acknowledged the importance of the reduced rate for the sector.

“I can’t give any guarantees but I hear Niall’s message and it will be considered,” the minister said.

Finance Minister Michael McGrath and Nathan McDonnell, President Tralee Chamber Alliance (left) listening attentively to Niall Kelleher’s address at the president’s lunch during which he raised the VAT issue

Mr Kelleher remarked: “It was incredibly encouraging at that lunch to hear Minister McGrath telling everybody present that he would be a friend to Killarney and that he would do all he could to support us and now he is proving that his word is his bond”.

Meanwhile, Kerry IHF branch chair, Bernadette Randles, said the measures announced now give tourism businesses greater certainty as they grapple with the impact of the cost-of-living crisis on Irish consumers and key overseas markets.

“Today’s announcement is a clear recognition by the Government of the challenges facing tourism and hospitality, Ireland’s largest indigenous employer which currently supports over 250,000 livelihoods.

“It will go a long way in helping to sustain the recovery of our industry at a time when businesses and consumers are facing significant economic and financial headwinds,” she said.

Ms Randles said a vibrant tourism industry is one of the most effective ways to spread employment opportunities and prosperity throughout the entire country.

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