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FINANCE MINISTER PASHCAL Donohoe has said that an alternative to the government’s Stay and Spend Scheme is not being examined at present by his department.
Last October, the government launched the Stay to Spend scheme, which allowed taxpayers claim a maximum of €125 back in tax credits on their spending in the hospitality sector until 30 April 2021.
To qualify for the maximum amount, you must spend up to €625 (or €1,250 for married couples or civil partners) in restaurants, pubs, hotels, B&Bs and other qualifying businesses.
However, the scheme never really took off due to restrictions being imposed in the autumn up until the present.
With the scheme due to expire at the end of the month, some are querying if it will be extended or if an alternative voucher scheme will be rolled out in a bid to boost hospitality and tourism.
However, responding to a parliamentary question, Donohoe said:
“My Department is not examining any alternative to the Stay and Spend Tax Credit Scheme at the present time.”
He said the scheme is scheduled to terminate at the end of this month, adding that while he is “very mindful of the significant difficulties that remain to be faced by the hospitality sector, I have made the point previously that the broad interests of taxpayers also need to be taken into account”.
“These may not be best served by extending the scheme over the summer months in circumstances where we will all be staying at home and hopefully holidaying in Ireland,” he added.
“This is particularly the case when other very significant support measures will remain in place. Taking these factors into account, it may be more appropriate to take stock again in a number of months’ time and assess if the position needs to be reconsidered at that point,” said Donohoe.
Speaking about the Stay and Spend Scheme earlier this week, Tourism Minister Catherine Martin said the unpredictable nature of the pandemic has meant that the scheme was “completely underutilised”.
The tourism minister said she is in favour of a new scheme to provide a boost to the industry in the off-peak season again.
Adrian Cummins, CEO of the Restaurants Association of Ireland (RAI), said there was no consultation with the industry in advance of the launch of the scheme, which is now becoming the norm with the hospitality sector.
He said the RAI would like to see a scheme similar to the Eat Out to Help Out Scheme in the UK.
The Eat Out to Help Out Scheme (EOHO Scheme) was one of the UK Government’s policy measures aimed to support businesses reopening after the lockdown period.
Under the scheme, the UK Government provided 50% of the cost of food and/or non-alcoholic drinks eaten at participating businesses. It helped businesses with cash flow and drove demand which in turn accelerated employment, he said.
Cummins said restaurants are seeking a commercial rates waiver to the end of 2021, the Vat rate of 9% extended to 2025, the continuation of EWSS – Employment wage support scheme until next March and the CRSS payment to the end of 2021.
With additional reporting by Ian Curran
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Instead of schemes and trying to keep people in the country in order to spend, maybe here’s an idea sit-down with the likes of the hotels federation and hospitality people and agree on keeping price’s within reasonable means for people, and not have a few days in Galway or Cork or wherever costing more than a foreign holiday. Even if its just for the summer months till the people start spending again and then it doesn’t look like the government doesn’t need things like stay and spend or peddling the staycation nonsense, when people believe they are not being ripped off holidaying in Ireland..
He won’t say it but there’s no need for incentives for people to holiday in Ireland this year considering the threat of being forced into mandatory hotel quarantine if they go abroad.
@Rochelle: ah yes the digital cert people think we will have implemented here come June cos the EU are bringing it in not realising that our lot will no doubt find some excuse to delay or push out the date till maybe September. Think people in Ireland will have to face facts, unless you go via Belfast there will be more people coming to Ireland than leaving this summer in terms of tourism
Mario Rosemstock does a better Paschal than Paschal does.
I will comment later . Right now I am in hospital because my wife swallowed a 8GB memory card , at the moment she is singing all the songs on it , I’m praying that she doesn’t reach the video folder
So they introduce the stay and spend when you can’t stay anywhere and then get rid of it just before you can???
@lilolil: that’s exactly what they do. meanwhile, in the UK, Spain, etc. they just did it properly with deductions at source and at a time where hospitality was OPEN.
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