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Mattie McGrath demands action over hotel standing charges

Mattie McGrath demands action over hotel standing charges

Mattie McGrath addressed the financial strain on hotels and tourism businesses, highlighting steep utility standing charges and high insurance costs. He called for urgent regulatory and revenue flexibility, urged support for local tourism and staycations, and rejected EU limits on VAT cuts.

Utility standing charges


McGrath relayed a message from a frustrated hotel owner who says more than €9,000 was taken in fixed standing charges, minimum demand and other utility fees while the hotel was closed for three months. He criticised the energy regulator as "toothless and fruitless" and asked whether emergency rules exist to prevent such charges while businesses are effectively mothballed.

Insurance costs and business hardship


He said the same hotel pays about €100,000 a year for insurance running December to December and has been offered no credit or guaranteed extra time by the insurer, only the prospect of a future discount. McGrath warned that these costs threaten flagship hotels, pubs, restaurants, B&Bs and a wide range of tourism-related microbusinesses in his constituency.

Revenue flexibility and VAT debate


McGrath urged revenue authorities to adopt a hands-off, flexible approach for the current year so businesses suddenly closed in March are not forced to pay while generating no income. He also criticised the Taoiseach's position on VAT cuts constrained by EU rules, saying Ireland must recover livelihoods and suggesting government action on rates to nurture tourism.

Mattie McGrath — shot from statement: Mattie McGrath demands action over hotel standing charges (11.06.2020)

Transport, local tourism and supports


He appealed for support for local tourism—shop local, stay local and take a staycation—and stressed the need to revive employment in hotels and related services. McGrath also raised concerns about ferry and private bus operators, noting that some contracted school transport companies are receiving only 50% payments and called for attention to these transport livelihoods.

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Transcript
Go raibh maith agot, go aheil ag. Ministers, I'm not Harry, I want to ask you, I'll just read a message I have from a very frustrated hotel owner, who Minister Ross and certainly Minister Griffin have visited under time in Disarachtas. I had a message from him this morning, and he said that he's written to the energy regulator as over 9,000 euro has been wasted or taken off him on fixed standing charges, side charges, skip charges, wastes, charges of minimum demand charges, electricity and gas. since the three months. The hotel is closed, the reception is open, but it's not open to the public, answering the phones, but it's nothing, so standing charges. So is there any, he's been hit, is there any, any, is there any emergency rule to these, and where's the regulator, to these utility companies, they can charge, they can 9,000, but by, you know what I mean, that's a savage money. And the, the, the, the situation regarding insurance then is even a bigger problem, as they pay 100,000 per annum for insurance, which runs from December to December, and he cannot get any credit or guarantee of extra time from his insurance company, other than to be told that he might look at the, they might look at a discount in the reviews with the same company next year. So this is a very important flagship hotel in my constituency in South Tipperary and the banks of the shore, and I want to, and the many, everybody else is very same, this is only one, let's put it here, whether they be pubs, whether they be restaurants or whatever, standing charges, these are all charges have crept in by these companies in the last, in the last, you know, 10, 15 years. And we have a regulator for every one of them, but the regulator is quite simply useless, toothless and fruitless. I mean, he wrote to the regulator, why is this allowed? I mean, he's not using, he's not using the, the, the, the facilities that they are certainly, and he doesn't mind paying a minimum child, but that's daylight robbery. And so, so something has to be done there if we're going to recover our, our, our, our, I was going to say fledgling tourism, tourism industry. Well, it is a fledgling one now because it stopped and we was trying to reincarnate it and let it go on. And, and a solution all the, all the small, with a small B&B right up to the big hotel. Whether it's the, it's the, it's the people on the green and the blue ways that are renting out, um, boats and canoes and indeed, um, you know, kayaks. Whether it's the ice cream shops, whether it's the taxis, whether it's the small minibus operators. We are need all those people. We're depending on ourselves, not the Colonel of Kayla. I am appealing to people to shop local and stay local and staycation this year. It's too dangerous for telling us to fly anyway. So, um, let us, uh, support our own, uh, country, support our own people. And I want to, you know, the bat rate, the Taoiseach said today that he couldn't apply a 0% or a 1% bat rate, I think, because of EU rules. To hell with EU rules, I say. We're too used to, uh, facking, uh, about, uh, kowtowing and implementing EU rules. We are Ireland and we want to recover and have a modicum of a livelihood for our wonderful families. Uh, many of them just, uh, only family businesses that have grown and grown and grown. And give massive employment. You know about Kerry, uh, Minister Griffin. And Minister Ross knows about it and you've seen it. And you've visited the place in Tim Braley with me and I thank you for that, Minister. And incidentally, while I'm at it, we used to be on a car, our father, we were great friends. I wish you well in your retirement and thank you for your engagement in, in, in, in the many issues I dealt with you. The only area we had difference was in the road traffic bill was you decided to, to, to this, uh, get, get not to like me because I had a different view. And that's a pity. We need all views here in this house and we need to work together. But look, I wish you well on your wife, Ruth and family and wish you, um, um, a happy retirement. If you're, I hear you're writing a book, you probably put me, you probably put me into it. But look, um, someone said that, but whatever you do, wish you luck. And I mean that stuff from the bottom of my heart. So, um, look, Minister, the tourism industry is, is, is in a bad state and it needs to be nurtured and it needs to be stimulated. But that kind of carry on for hotels. I have another hotel on to me, trying to avail of them, of the, of the, the re-staffed grant through the county council on the rate side. Yes, if you happen to raise pay this year, you can avail of it. He hadn't his taxes up to date because the doors closed suddenly on the, that date in March. And you couldn't have. So I think for this year, people that are on tax areas, not area, but they're paying them maybe direct debit or whatever. The debt was turned off on their business. So revenue must be flexible here. I'm not talking about outstanding tax bills are going back over here. I'm talking about the current situation. You must tell the people in revenue to have a hands off approach here for this year. The council this year, because people happen to, you can't get blood out of a stone. And you can't get money out of people that are earning money. So simple as that. We need, we need those young people working in those hotels again. We need them to housewife working on them and to pay that for the kids going through college. We need them badly. So Minister, that's the area. And also the ferry operators. Certainly the bus operators. Now it's kind of boarding on transport, a school minister on transport, but it's the school transport bus. You have 50% of the buses. Private companies are still getting nothing. Private bus owners. Anyone that have a, I'm doing schools mainly. Anyone that have contracted to, to, to, to a bus in are getting a 50% payment, which we welcome. And we thank the minister for putting that in place. But if you're a private bus owner, and there are many. And they service them hills and the glins of Tipperary and Kerry and everybody says, because bus in won't go there. They do it. Many times. Payants organize the road to themselves. The buses have to be DOE'd. They have to be insured. They have to be above board and everything else. And that's only right and proper. They're not getting a penny. And many of them are over 66's. They're not getting anything there either. The drivers and the operators. It might be a one man operation. It's a huge lacuna. And it's very unfair. Because remember in September. We have bid them every year in September. With people not getting on a bus ticket. But if we hadn't the bus operators. To bring the people. And I have one of them in care town myself at Dennis Whelan. Runs a one man operation there. And there are many more of them. Mr. Tughy up in Nina. They're there. And they pay no rates. Because they have a mobile bus. That's parked beside the house. On the air. They're not in a building. So they're not paying rates. So they can't avail up the grant. And there's a serious issue. It's going to be serious for the schools. And for the pupils going back to school. Minister. If you don't get them. So I'm appealing you to look at that. Please. Also on the PSO contracts. Like the deputy before me. I have important issues. Minister of driving tests. Look. If you can go in a taxi. Why can't you do driving tests? I have hundreds of people waiting for driving tests. Waiting for the theory tests as well. I think they're starting to go now. And the NCTs. When are the NCTs in my county going to reopen? And will the Lyfts be working? Because people are driving around now. And we're not sure. I support the NCTs 100%. Especially for undercarriage. Chassis. Brakes. Steering. All that area underneath. Wheels. And slow waxes. Vital. And as a Lyfts and Walker. We're going to be driving the effective vehicles. Many of us. And we're paying for NCTs. And it's a fast. Because that's the most important part. Of the thing. The steering. And the steering right the whole lot. Minister. You might answer those two questions. If you can. Please. Thank you very much indeed. Keanu Cuellar. I'd like to reciprocate. If I may. Deputy McGrath's. Good wishes. And I. I hope he's not. You can never guarantee that people will retire. Just because you wish they'll retire. Deputy McGrath. But. Here. From here or from anywhere else. But let me. Let me. Let me. Let me assure you something. First of all I want to assure your wife Margaret well. And your daughter Maureen as well. I think she's got a. A very very. Bright career. In front of her. As well. Maybe as good as your own. If she. If you eventually decide to retire. No doubt she'll be. Sitting in your seat. Over there. And she'd be very welcome. She might be over there sir. She might be over there. And let me. Let me also say Deputy McGrath. She might be over there. Let me also say Deputy McGrath. Um. You will get more than a mention in the book. I promise you that. Uh. That is. Every book needs a billy. Yeah. You will be. You will be very. Yeah. Uh. And uh. Obviously. Get your. Get your lawyers onto it. Onto me. Before it's published. That's all I say to you. Alright. Uh. I wish you. I wish you great success and happiness. And moderation. And. And. And a really radical change of your views. As well. Which is. Which is going to be difficult for you to achieve. But. Uh. I'll be watching from the sidelines. And. And. And cheering you on. Moderate. Middle of the road. Politician. With liberal views. And. Tolerance. And. All those great things which you. Which you find very difficult. No. I don't think you're an intellectual. But I will address those issues further. In a. In another place. The issue of insurance. Which you. Which you. Asked about. Um. Deputy Griffin. I met with Insurance. Ireland. Uh. To highlight and discuss. Some of the difficulties. Being experienced by the sector. To which you actually referred. A few minutes ago. Policies are not designed. And. With. With regard to the. Failure. To pay business interruption cover. Which is one of one of the big problems. Policies not designed to cover pandemics. Which you'd be aware. Which you'd be aware of. Insurance works on the basis. That only a small percentage. Of clients make claims. And paying for a pandemic. Unfortunately. Would require payments. To maybe a hundred percent. Of the clients. In certain. In certain categories. And no insurance company. I suppose. Could be solvent. If it was to pay out. A hundred percent. Of its clients. They can only play out. Where there is specifically. State in the policy. Which where. Pandemic is specifically. State in the policy. Which is probably. Only the case. In very very few. Few numbers. Insurance Ireland. Has made commitments. That if businesses. Are closed. Then this change. The level of cover. Required. And a pro rata. Rebate. Will be given. In the form of cash. They've asked insurers. To sign up to this. And expect this to happen. Chief. Chief executive officers. Say. The number of inquiries. Is actually low. And there are. No rejections. To adjust. Cover. Which is not required. During closure. Okay. I'd like to. To reply comprehensively. Read the book. Deputate. Read the book. And you'll get. The issue raised. The deputate. Read the book. And you get the rest of the answer. Alright. You