Michael Collins presses gov to cut bath rate after 612 closures
Michael Collins criticised the government's bath rate policy and demanded a cut from 13.5% to 9% for the hospitality sector after 612 businesses closed in the past 12 months. He pressed the government to make the reduction in the upcoming budget and asked whether the House could agree to an immediate cut.
He said the increased bath rate on the hospitality sector has left a total of 612 hospitality businesses closed in the past 12 months, and that planned reductions in the programme for Government would be too little too late for hundreds of cafes, restaurants and hairdressers.
He asked whether the government will drop the bath rate from 13.5% to 9% in the upcoming budget and urged that, with the House's agreement, the rate be reduced immediately.
The government acknowledged there is a crisis and pointed to commitments in the programme for Government. Ministers said they want to consult with business and develop a package for the next budget, noting the impact extends beyond hospitality to the retail sector and small and medium-sized businesses.
Officials highlighted that public expenditure increased by 9.5% last year and that the 2025 budget has already been announced, with no intention to deviate from it. They said plans will be made clear in early summer and that the next formal budget will be in September, reflecting considerable current and capital spending increases.
Hospitality closures and demand for rate cut
He said the increased bath rate on the hospitality sector has left a total of 612 hospitality businesses closed in the past 12 months, and that planned reductions in the programme for Government would be too little too late for hundreds of cafes, restaurants and hairdressers.
Direct question to the government
He asked whether the government will drop the bath rate from 13.5% to 9% in the upcoming budget and urged that, with the House's agreement, the rate be reduced immediately.
Government response and consultation
The government acknowledged there is a crisis and pointed to commitments in the programme for Government. Ministers said they want to consult with business and develop a package for the next budget, noting the impact extends beyond hospitality to the retail sector and small and medium-sized businesses.
Budget timing and public expenditure
Officials highlighted that public expenditure increased by 9.5% last year and that the 2025 budget has already been announced, with no intention to deviate from it. They said plans will be made clear in early summer and that the next formal budget will be in September, reflecting considerable current and capital spending increases.
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Transcript
The increased bath rate on the hospitality sector has left a total of 612 hospitality businesses closed in the past 12 months throughout the country. I will acknowledge that in the programme for Government a reduction is planned in the bath rate for the hospitality sector, but for hundreds of cafes and restaurants and hairdressers this is going to be too little too late. The government, after much pleading, have accepted that there is a crisis. Can you answer, are this government going to drop the bath rate from 13.5% to 9% in the upcoming budget? And can this government, with the full agreement, that the House immediately drop that bath rate from 13.5% to 9%? Thank you. Can it be done immediately? Just to say to you that the government has made commitments in the programme for Government in respect of that, but also in respect of costs that small to medium-sized businesses are incurring. We want to consult with business, because it's not just hospitality, retail sector are feeling the pressures as well. So we want to consult, come up with a package that will involve that in the context of the next budget. Public expenditure increased last year by 9.5%. It's an enormous increase in any one year. So, you know, we've had the budget, we've announced the budget for 2025. It's not our intention to deviate from it. It involves very considerable current expenditure increases and capital expenditure increases. We have a budget in September. Our plans will be very clear in early summer. Thank you. Thank you, Taoiseach Myxie. Thank you, Taoiseach Myxie.