Call for tourist VAT rate to be retained

Restaurateurs have urged the Government to retain the tourism VAT rate at nine per cent to help the sector recover from the recession…

Restaurateurs have urged the Government to retain the tourism VAT rate at nine per cent to help the sector recover from the recession.

The call was made at the Restaurants Association of Ireland annual conference in Dublin today. The association's chief executive Adrian Cummins said the reduced VAT rate had made a major difference to the sector and 70 per cent of restaurants had seen an increase in business because of the reduction.

He said there was a sense of cautious optimism in the sector and a survey of members found that 45 per cent had seen an increase in business by 5-10 per cent last year, compared to 2010.

The survey also found that 85 per cent of restaurants had no plans to introduce voluntary calorie counts on menus because of the costs associated with the measure.

Minister for Health James Reilly has announced plans to get restaurants and coffee shops to display the calorie content per portion in a bid to curb obesity levels but restaurateurs have estimated that it could cost up to €5,000 per year to provide calorie counts for every dish on their menus.

Earlier, Mr Cummins outlined proposals for a fast-track training scheme for chefs to deal with a shortage in the sector. The association will meet with the Government in the coming weeks to outline its plan which would involve taking 1,000 unemployed people off the Live Register under a restaurant work placement apprenticeship scheme overseen by Fáilte Ireland.

"There is a severe shortage of skilled chefs in the country at the moment, and this is putting huge pressure on the Irish restaurant sector," Mr Cummins said.

He said increased numbers of restaurant workers would be essential to cater for an estimated 350,000 people who are expected to take part in The Gathering next year.

The Gathering is a year-long tourism initiative to encourage people with Irish ancestry or an interest in Ireland to visit the country and take part in local festivals and special events.

Alison Healy

Alison Healy

Alison Healy is a contributor to The Irish Times