Tánaiste ‘very nervous’ about prospect of hotel bedroom tax

Tánaiste Simon Harris has said he would be “very nervous” about a hotel bedroom tax being introduced at this moment in time.

The four local authorities in Dublin are working on a joint plan to introduce what has been described as a modest local tourism tax in the capital, broadly similar to those in most European cities.

It is understood the tax would be set at 1 per cent of the room price and would generate an income of €12 million per year across the four councils in Dublin.

While the tax is strongly supported by many Fine Gael councillors in the city, as well as Dublin-based TDs from the party, two senior Fine Gael ministers: Patrick O’Donovan and Peter Burke, have thrown cold water on the idea.

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Speaking in Belfast on Thursday, the Fine Gael leader signalled the party would not support a tax being introduced now.

[ City taxes for tourists ‘last thing we need to be doing’, says O’DonovanOpens in new window ]

Mr Harris told reporters he instinctively supports local authorities having greater powers in terms of the decisions they take. However, he suggested that now is not a good time to introduce such a tax.

“I am conscious of the fact that, at the moment, tourism is already going through quite a challenging time,” Mr Harris said. On the timing, he said: “I would be very nervous.”

At the weekend, three Dublin TDs – Naoise Ó Muirí, James Geoghegan and Barry Ward – said they are in favour of the tax being introduced. All of them said Dublin would simply be implementing what is already in place across most capital cities in Europe.

Two Dublin-based councillors, Jim O’Leary and Ray McAdam, have also publicly backed the introduction of the tax.