Budget 2026 (Enterprise, Tourism and Employment): Statements Seanad Éireann — 2025-10-14 ============================================================ Mike Kennelly (FG), Labour Panel I welcome the Minister to the Seanad. I welcome budget 2026. I want to begin by welcoming the decision of the Government in 2026 to reduce the VAT rate for the hospitality services to 9%. It is it is a positive move and one that will offer some breathing room to many businesses across the tourism sector. It was not an easy decision, and I appreciate the efforts of the Minister and his Department to support this vital industry. As a proud Kerryman, Kerry is home to football but also tourism. Tourism is more than just an economic activity; it is part of our identity in Kerry. From the lakes of Killarney to Muckross House, the Torc Waterfall, Dingle, Kenmare, the Ring of Kerry, the beaches of Inch, Ballybunion, Ballyheigue and Fenit and the Listowel races, tourism sustains thousands of jobs and supports hundreds of small businesses in Kerry and Ireland. It is the backbone of many communities, especially in rural and coastal areas. I offer my sympathies to the O'Callaghans of the Fáilte Hotel in Killarney on the passing of Paudie O'Callaghan, who was an ambassador for the tourism market in Kerry over many years. I served on Kerry County Council with his brother, Councillor Niall "Botty" O'Callaghan. Our sympathies to him and his family. On the reduction of the VAT rate to 9%, almost 15,000 people in Kerry are employed directly in tourism-related sectors. That is a significant portion of any workforce. When we factor in the indirect employment in retail, transport, food production and cultural services, the reach is even greater. I know the Minister has seen this at first hand. Earlier this year the Minister visited Kerry with me and we met with groups like the Killarney hotel federation, the Tralee Chamber Alliance and the Listowel Business and Community Alliance. The Minister listened to their concerns about rising costs, staffing shortages and the need for continued investment in infrastructure and connectivity. That engagement by the Minister was appreciated locally and shows his commitment to the sector. Indeed, canvassing for Heather Humphreys in the last number of days and the last week was a pleasure. People recognise her contribution, her being pro-jobs, and her identity on that budget. While the VAT reduction is welcome, I believe there is room to do more. Many non-food hospitality businesses such as guesthouses, bed and breakfast accommodation, caravan parks, leisure centres and local attractions continue to face real challenges as well. These businesses are essential to the tourism visitor experience and deserve equal support. I ask the Minister and his Department going forward to again really consider extending the 9% VAT rate to all non-food hospitality services, including the wet bars. Suggestions were made to save these rural pubs across the county of Kerry and indeed across the whole country. Life does exist outside the capital and in rural Ireland we need these to exist. There was one suggestion made about the draught excise rebate scheme. The Vintners' Federation of Ireland has called for a cap on the excise rebate on draught beer and cider. Such a measure would directly support traditional pubs. Its absence in budget 2026 is, and is seen as, a missed opportunity to relieve the pressure on these wet bars. When I say "wet bars" these are the crossroads bar, maybe in the small town that might have two or three pubs operating. They do not do food but they also need to be targeted, supported and kept open. One of the competitive factors introduced was in targeted supports for seasonal and rural tourism operators for investing in regional tourism infrastructure, signage - which is a simple thing - public amenities, and digital marketing to support destinations. These are places like Ballybunion and Ballyheigue. This was also for supporting workforce development with training incentives and accommodation supports for all seasonal staff. Tourism in Kerry is about more than numbers; it is about people. It is the students who get their first summer job in the local hotel, the local bar or the local restaurant. It is the family who own bed and breakfast accommodation with pride. It is the small businesses and business owners who depend on the visitors and the tourism market to keep their lights on. I welcome the budget for 2026. Let us keep working together to ensure that tourism in Kerry and across Ireland not only recovers but continues to grow and thrive. --- Source: Houses of the Oireachtas. Licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/). The Official Report is revised after first publication; the fetch timestamp below identifies the version quoted. Record URI: https://data.oireachtas.ie/akn/ie/debateRecord/seanad/2025-10-14/debate/main Retrieved: 2026-08-14T04:54:13+00:00 Sitting date: 2025-10-14