Senator calls for measures to protect border businesses

'The measures announced by the UK Government, including cutting VAT on its hospitality and services sector from 20% to 5%, has set alarm bells ringing across the Border counties in the last 24 hours, from Donegal right across to Louth'- Fianna Fail's Robbie Gallagher.

Local businesses are paying 13.5% VAT and they’re being asked “to compete” with those in the north who are paying 5% stated Fianna Fail Senator Robbie Gallagher, who is now calling for the Government’s July stimulus plan, to be announced shortly, to take measures to address the difference.

“The measures announced by the UK Government, including cutting VAT on its hospitality and services sector from 20% to 5%, has set alarm bells ringing across the Border counties in the last 24 hours, from Donegal right across to Louth. The measures introduced by the UK Government yesterday will be in place, I understand, until 12 January 2021,” said Sen Gallagher, speaking in the Seanad.

He stated that businesses in Cavan, Monaghan and other Border counties currently have a VAT rate of 13.5%.

“We are now asking those businesses to compete against other businesses four or five miles down the road in Northern Ireland which are operating a VAT rate of 5%. This is clearly not a level playing field and it is one that will have to be addressed in the July stimulus package. Many businesses in the Border counties, and indeed businesses all over the country, are struggling to survive at the moment and we all realise that.”

He added that the Government needs to be “particularly cognisant” of the difficulties of businesses located along the Border in counties such as Monaghan and Cavan.

“I hope the July stimulus package will offer the Government an opportunity to note the difficulties businesses in those counties face when competing against businesses in Northern Ireland. Many people in the business community are looking forward eagerly to the announcement of the July stimulus package and I hope that perhaps some of the issues already announced could be addressed in that,” he said.”

Senator Gallagher went on to say that the restart business programme which offers grants from €2,000 up to €10,000 for businesses was introduced as an emergency measure, but that too has been problematic.

“Many businesses, such as travel agencies, whose turnover may be in excess of €5 million are losing out. In addition, many small car dealers whose turnover may be in excess of €5 million are losing out. It is vital we address those problems in the July stimulus package,” he informed.