Local businessman says Stimulus Package not enough for hospitality sector

Photo from Lough Derg House & The Lake Cafe Facebook page

A Tipperary business owner is critical of the Government’s July stimulus package announcement, saying it doesn’t do enough to protect the hospitality sector.

Many businesses reliant on tourism are enjoying a slight upturn but there are concerns that this may be short lived before kids return to school.

Declan Collison runs Lough Derg House, a café and guest house in Dromineer, and is continuing to appeal for a reduction in the 13.5 percent VAT rate.

He says that the cut in the higher rate of VAT from 23 to 21 percent will have little impact on hospitality businesses like his own.

“Most of our sales in the hospitality business would be at the 13.5% other than the side of the business that’s licensed. It will make a small difference to the price of a bottle of wine or to a gin & tonic.”

“But if someone is going to buy a fridge freezer €5 or €6 in the price is not going to be the decision as to whether or not they make the purchase so overall it’s not going to have a big effect.”