Irish Restauranteurs believe the 'Jobs Initiative' is a move in the right direction

The Restaurants Association of Ireland (RAI) which represents over 700 restaurants with over 63,000 employees in the restaurant sector, today welcomed the many positive measures in the Government's Jobs Initiative and the "decisive way in which the government has moved to support the tourism sector, boost confidence and get people back to work and revitalise the tourism sector."

Vat on Tourism-Related Products from 13.5% to 9%

Adrian Cummins, CEO of the Restaurants Association of Ireland said  “Many of the initiatives announced today will have a positive impact on the Irish Tourism Industry. The cut in VAT, by 4.5%, will provide a significant boost to the tourism and hospitality sectors. It is a sensible approach to have a meaningful VAT reduction of a targeted nature, rather than a very small cut spread more thinly. I will instruct my members to pass the VAT reduction on to consumers from 1 July 2011 in line with the introduction of the new VAT rate. The tourism sector can make a substantial contribution to our economic recovery."

Joint Labour Committees

The Irish Restaurant Sector plans to create 4000 new jobs if Joint Labour Committees are abolished.

On this point Mr Cummins added, "The absence of a government decision on the outcome of the independent review of ERO and REA wage setting mechanisms is disappointing and needs to be taken as a matter of great urgency.”

Air Travel Tax Reduction Abolished
The Restaurants Association also welcomed the plans to abolish the €3 travel tax. "Abolishing the air travel tax will further enhance Ireland’s offering. The airlines must also play their part in making Ireland as attractive a destination as possible for overseas tourists."

Lower PRSI rate
Mr Cummins also welcomed the 50% reduction in the lower PRSI rate from 8.5% to 4.25% on jobs paying up to €356 per week (with effect from 1 July).

For more on this visit the Restaurants Association of Ireland website at http://www.rai.ie/


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