Mayo’s tourism and construction industries are set for a jobs boost due to a number of schemes announced in the Government’s jobs initiative this week. There has been a general welcoming of the initiative which sees some bonuses for County Mayo.
Fáilte Ireland has welcomed the reduction in the VAT rate from 13.5 per cent to nine per cent in respect of certain goods and services related to tourism. This will give a huge boost to Mayo’s tourist industry, which is one of the most important industries in the county.
The new rate will apply mainly to restaurant and catering services, hotel and holiday accommodation, and entertainment services such as admissions to cinemas, theatres, exhibitions, amusement parks and the use of sporting facilities, including golfing fees. Printed matter such as tourism brochures and maps will also be subject to the new nine per cent rate, according to Mayo Fine Gael TD John O’Mahony.
“Reducing the air travel tax of the Fianna Fáil/Green coalition to zero ends one of the most ill-conceived and damaging policies the sector has suffered and removes a significant barrier to the attraction of tourists. In the process airlines are being challenged to reciprocate and bring in additional passenger numbers and this should be a welcome boost to our own Ireland West Airport at Knock,” was the view of Michelle Mulherin TD.
Dep Mulherin also welcomed the creation of a formal visa waiver programme with the UK which will make it easier for visitors from crucial emerging economies to come to Ireland without the expense or hassle of applying for an Irish visa. “This provides a tremendous opportunity for tourism service providers to attract many of the hundreds of thousands of visitors travelling to the London Olympics next year,” said Dep Mulherin
However Mayo’s only Fianna Fáil TD, Dara Calleary, has described as bizarre the Government’s decision to leave out a number of essential tourist services from the cut in VAT. Dep Calleary said the move to keep car hire, tour guide services, and drinks served in restaurants at the higher rate makes no sense whatsoever. In relation to omitting drinks served in restaurants Dep Calleary said that is despite the fact drinks from a vending machine have been reduced to the new lower rate.
Dep Calleary accused the Government of not thinking the initiative through.
However Shaun Quinn, CEO, Fáilte Ireland, was more positive in welcoming the initiative: “This timely and significant initiative should provide a much needed stimulus to the fortunes of tourism businesses around the country. The changes announced will provide a major shot in the arm to an industry which is very much people-centred. Anything which boosts tourism will naturally boost jobs, and this announcement is very much welcomed.”
Roads funding
Mayo is to receive a financial injection of €3.5 million for ‘shovel ready’ road upgrade projects, bringing the county’s annual allocation to €12.3 million. The money is being provided under the Restoration Improvement Programme. Under this programme, county councils have submitted a three year programme (for the period 2011 – 2013 ) identifying the roads most in need of improvement in their area. The additional funding being provided under the jobs initiative will enable local authorities to bring forward works on roads which were not scheduled to take place until 2012, according to Minister of State Michael Ring. Much of the funding will be used to repair regional and local roads in Mayo which were badly damaged in the last two severe winters. A significant portion will also go to smarter travel projects, thus creating brand new jobs within the construction sector.
According to Dep Mulherin this was one of the biggest issues on the campaign trail. “This sort of funding is particularly significant for rural counties like Mayo where there is a high number of local and regional roads. For Mayo these roads are as important as national roads and are used on a daily basis,” she explained.
Under the Jobs Initiative 22 schools in Mayo will benefit from the Summer Works Scheme which will include the repair or replacement of toilets, roofs, windows, and accessibility improvements. These repairs are carried out during the summer months in order to reduce disruption to pupils, students, and staff. Taoiseach Enda Kenny said: “I hope the works will also provide a source of jobs to help get many people back into employment.”
The announcement by Labour Minister Ruairi Quinn has also been welcomed by Castlebar Labour town councillor Harry Barrett. Cllr Barrett said he was proud to see the results of the Government’s jobs initiative on a local level. This particular initiative comes after the first Summer Works Scheme announced in April received much criticism from the construction industry for only focusing on gas, electrical and mechanical works and not creating any new construction jobs.
