RESTAURATEURS WELCOME JOBS INITIATIVE.

RESTAURATEURS WELCOME JOBS INITIATIVE.

 Government moves in right direction for the Irish restaurant sector in crisis.

The Restaurants Association of Ireland today welcomed the many positive measures in the 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

 The Restaurants Association of Ireland (RAI), representing some 700 restaurants with over 63,000 employees in the restaurant sector, welcomed the jobs initiatives announced today to assist revitalise the tourism sector.

 Vat reduction from 13.5% to 9%

Brian Fallon, President 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

Brian Fallon also said “the Irish Restaurant Sector will create 4000 new jobs if Joint Labour Committees are Abolished. 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 to €0

 We also welcome the plans the abolishing of the €3 travel tax. The reduction of the air travel tax to €0 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 

The Restaurants Association of Ireland also welcome 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 2011.