Middleton urges O’Dowd to address Derry/Donegal hospitality VAT differential

Transcript

00:00My department has repeatedly highlighted the challenges facing our hospitality

00:05industry to the tragedy, particularly in relation to the high VAT rates faced by

00:09business here relative to the south. Unfortunately, the British government

00:14which is responsible for setting VAT rates has been so far unwilling to address this.

00:18My department continues to support the local hospitality sector through, for

00:23example, significant rate support with 65% of the hospitality sector in receipt

00:28of support via the small business relate scheme. My department has also

00:32commissioned an independent study into the cost of doing business here which

00:36will consider the impact of north-south VAT differentials. I will continue to

00:41make the case for a reduction in VAT to enable our hospitality sector to

00:47compete on a level playing field in the all-island economy. This is an issue

00:51which I will raise with the Chief Secretary of the Treasury at the next

00:54Finance and Inter-Ministerial Standing Committee meeting, which is to be

01:00held later this month.

01:03Thank you Mr. Speaker and I thank the Minister for his answers. Minister, can I ask

01:09what plans do you have as Minister specifically to support businesses in

01:14Northern Ireland, especially the hospitality industry?

01:19As I said in the original answer, there is significant support to small and medium

01:25enterprise businesses through the rates relief scheme which we operate, which I

01:30think gives welcome support to local businesses here. On the question of VAT,

01:35the Member will be aware that neither I, the Executive of this House, has any

01:39powers in relation to the reduction or increase on VAT for that matter, so

01:44therefore it is outside my and our remit to offer support in that regard. But I do

01:49think the cost of doing business reports commissioned by my predecessor will be

01:55invaluable in us approaching Treasury and others in our support of all those

02:01businesses, because it's quite evident that we need an evidence base to approach

02:07Treasury with. Look at the fiscal report, that proved very, very beneficial and

02:13persuasive in our argument, and we also need the data to back up our argument. So

02:17evidence-based, data-driven is the way forward.

02:19Simon Linden.

02:21Thank you Mr. Speaker and thank the Minister for his answers. Minister, I'm

02:26confident of the offering that our hospitality sector has in Northern

02:29Ireland and what they provide, but they need your support and the support of the

02:32Executive. Minister, will you commit to meeting with those representative bodies

02:37such as Hospitality Ulster to listen to their ideas that they have in terms of

02:42how they can be supported to improve the hospitality industry here in Northern

02:45Ireland? Minister. I'm always willing to meet key stakeholders in our society and

02:52discuss these matters out and listen to their ideas and proposals around that.

02:55I've already met with a number of different sectors within society and I

03:00will continue to do so. I'm offering a roundtable to the broader business

03:04community and I've no doubt this subject will arise there going forward, but

03:08always happy to meet the sector.