SDLP Foyle MLA Sinead McLaughlin has secured the support of the Northern Ireland Assembly for a package of costed interventions to support the tourism and hospitality sectors, including options for the devolution of VAT for hospitality.
Ms. McLaughlin said: “Our tourism sector has been a huge success story of the peace process over the last twenty-six years and the hospitality industry plays a vitally important role each and every day in our economy.
“Together, these are critical industries, representing the lifeblood of our economy and their success drives inclusive economic growth across cities and towns in every part of Northern Ireland.
“However, over recent years, these sectors have faced a perfect storm of rising costs driven by the pandemic and resulting inflation crisis, along with the destabilising uncertainty of Brexit.
“In recent months in Derry, we have learned of the closure of prominent and long-standing businesses, including those in the hospitality industry.
“When I speak to business owners, they describe the most difficult operating context they have ever experienced and the challenges of keeping the lights on and employees in a job, all while paying extortionate rates and feeling hammered by what has been termed the cost-of-doing business crisis.
“Harmonising our VAT systems North and South represents a unique chance to level the playing field for businesses on both sides of the border and build on the opportunity of our island’s economy.
“Its consequences would be felt in businesses across every community being able to choose to expand their offering instead of close their doors, increasing employment and boosting productivity.
“Of course, any proposal will have to be carefully considered and there is no silver bullet to these economic challenges, particularly given the volatile shocks of recent years.
“I am pleased that the Assembly backed our call in the Assembly to support these crucial sectors and look forward to the relevant Executive Ministers bringing forward a costed plan of interventions without delay, including options on the devolution of VAT on hospitality.
“I would also continue to urge the Minister to bring forward a Tourism Strategy that is fully funded and ambitious and the Executive to finally make progress on revitalising our high streets which have too often been left to deteriorate without a sustained programme of investment.”
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