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Mitchelstown News from The Avondhu

VAT REDUCTION MEANS FULL IRISH FOR A FIVER

Following the Finance Minister’s announcement this week that he was slashing the lower VAT rate from 13.5% to 9% for restaurant meals one local businessman is delighted that he can now offer some excellent value to customers. Declan Corbett, owner of The Corbett Court restaurants in Kilworth and Ballyhea, was delighted to learn that the VAT rate had dropped.

“I spoke with Cllr Noel McCarthy and Minister Sean Sherlock about having something done about the VAT at the time of the elections, and I have a feeling that Sean has had some say in this,” he told The Avondhu.

A GREAT CALL

“Up to now, our restaurant in Ballyhea wasn’t open for breakfast, as it simply wouldn’t have paid us. I am delighted to say that, as of June, we will be offering a full Irish breakfast for €5, which will include a copy of the Irish Examiner and free toys for the kids. Dropping the VAT to 9% was a great call by Minister Noonan and it has given us the opportunity to offer this excellent deal to our customers.”

VALUE FOR MONEY

Cllr Noel McCarthy added, “It’s a great initiative for hotels, guesthouses etc. People want value for money, and this will allow the service industry to do just that. Hopefully it will lead to more customers calling to restaurants such as The Corbett Court, and the creation of more full and part-time jobs.”

Minister Sean Sherlock told The Avondhu, “A lot of businesses would have perhaps been on the cusp of taking on new people but couldn’t do so. They will now be able to do that as a result of the rate drop.

"In addition, I think that Cork County Council might be applying the road signage rules too stringently given that I do a lot of travelling up and down to Dublin and pass a myriad of signs and trailers with signs along the way. They need to allow for a little bit of flexibility to get business people back up and running.”

BOOST TO TOURISM

The new 9% VAT rate, which will apply from now to the end of 2013, is intended as a boost to the tourism sector. Minister Noonan outlined that a new 0.6% levy on private pensions to pay for the measures would be a ‘short term’ measure, lasting four years. The levy is intended to raise nearly €1.9bn over the next four years.

“Even by recovering the ground it has lost in recent years, tourism can make a substantial contribution to our economic recovery and to the creation of employment in all parts of the country,” he said

Published: Thursday 12th May 6:31pm

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