Louth TD challenges government to publish data supporting VAT cut case

Labour’s Finance spokesperson and Louth TD Ged Nash has challenged the government to publish the data supporting their plans to spend up to €632 million in a full year on a VAT cut for the hospitality sector. 

Deputy Nash said:

“Good, honest policy making is based on evidence and facts. Government says it is working on an analysis on business closures in the hospitality sector and it says it won’t publish the data until it is satisfied it is accurate.

“It also says it is working with the Companies Registration Office (CRO) on a new accessible portal on liquidations and business formation. Conveniently, we are told that won’t be ready until November, when government will be out the gap on the Budget.

“The endless foot dragging points to the Department’s data not supporting the thin case made by Fine Gael, especially. This data is not complicated.”

Deputy Nash said that there is a responsibility for it to be published before a major decision to transfer hundreds of millions of taxpayers money to one sector is made. 

He continued: “If government Ministers are confident they can stand over their case and justify their position on a move to a 9% VAT rate, let the public see the information and we can decide for ourselves.

“The Budget process is already as clear as mud, as IFAC, the Parliamentary Budget Office and others have said. It’s time for transparency, honest use of our money and fiscal and social responsibility.  

“The truth is when you decide to spend €632million in a full year on tax relief for one sector over another, the trade-off means others lose out. These are political choices. 

"This leaves less space for tax relief for working people in the October Budget, and given a straight choice between spending this kind of cash to support the bottom line of McDonald’s and Supermac’s, or getting a start on making child poverty history, I know which side Labour is on.

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“Fine Gael and Fianna Fáil don’t know the meaning of the word temporary, and if this is brought in, the final cost at the end of this government’s term could be close to a cool €3billion. 

“Our motion in the Dail on Wednesday will put it up to Sinn Fein and the Social Democrats too – both of whom have expressed support for forms of VAT cuts for business and in a red-hot economy. 

“Small café and restaurant owners should not be duped into thinking a VAT cut is a panacea. The longer this thinking pervades, the less likely we are to see real action from government on the systematic problems facing small business on energy, access to affordable finance, training and staff retention, rates and other key issues facing a sector that is of enormous value to cities, towns and villages in every corner of Ireland.”