The Tánaiste says a reduction in the VAT rate for the hospitality sector is something that's being looked at ahead of next week's Budget.
The industry's been one of the hardest hit by closures during the pandemic - and has called for a VAT cut from 13% to 9%.
Leo Varadkar says a reduction is being considered - as well as the potential to extend the commercial rates waiver.
He says it's a proposal that's being looked at:
"The budget isn't written yet but the things we're looking at include the VAT rate in the hospitality sector."
"Catherine Martin and I met with the Tourism industry yesterday, that'd be a big issue for them."
"Also we're looking at rates, whether we can extend the rates holiday."
Today Tánaiste @LeoVaradkar and Minister @cathmartingreen established the Hospitality and Tourism Forum. This forum will provide an outlet for concerns and look at practical actions which can help business owners and their workers.
Read further here 👇https://t.co/Ro6RlqyYCR pic.twitter.com/jtzaa0DbrJ— Tourism-Culture-Arts-Gaeltacht-Sport-Media (@DeptCulturelRL) October 9, 2020
Hospitality Sector Businesses - Many Remain Closed
He's also suggested a change in approach to funding supports for firms that remain closed due to Covid restrictions:
"I think in the budget we're going to need some sort of a mechanism that's put in place to provide them with some sort of funding for every week or every month that they're closed."
"To help them with their fixed costs."
"The Restart Grant has been helpful but it's a tool that's probably reached it's limit."
"I think we're going to need to do something different for those businesses that have effectively been put in hibernation or in suspension because of the restrictions."
The arts, culture & entertainments industry needs certainty. The need a road map for reopening over the next 12 months with clear rules, targets & decision making.
Meanwhile the tens of thousands of workers in this sector need proper income & business supports. pic.twitter.com/AtIOUuT90z— Eoin Ó Broin (@EOBroin) October 7, 2020
Arts Sector Ready To "Collapse" - Kelly
The arts sector is on a "cliff edge", that's according to a group of venues in Co Waterford.
New research by EY has found that a quarter of jobs in the industry could be lost by the end of 2021.
Some newspapers have been reporting today that the live music sector will receive "tens of millions" of euro in funding.
That's in next week's budget.
Neill Kelly of the Causeway Group of bars and restaurants says more needs to be done.
"We've been closed 7 months."
"They should push back the VAT from the previous year back to us, to give us a chance at survival."
"That's one of the things I think would work, for the businesses who have been paying VAT."
"Those who have been adhering to everything."
"At the moment I think the majority of the arts is on a cliff edge."
"I think that cliff edge is going to collapse very very quickly."
"Also I honestly don't think that, if in the budget there's millions coming into it, that it'd work."
"Even though we'd welcome it."
