Mixed news for Kerry in Budget 2017

LOW TOURISM V.A.T RATE STAYS BUT NO FUNDING FOR MACROOM BYPASS

THERE was mixed news for Kerry in Michael Noonan’s budget for 2017.

One of the most significant announcements for Kerry was Minister Noonan’s confirmation that the special nine per cent reduced VAT rate for the tourism sector will stay in place for at least another year.

Kerry hoteliers had led calls for the rate to be maintained saying any increase would have a disastrous impact on business and could cost thousands of jobs.

As one of Ireland’s most popular destinations Kerry would be one of the worst hit counties should the special reduced rate be removed.

Tourism is the bedrock of Kerry’s economy generating €380 million a year in the county and directly or indirectly supporting one in five local jobs.

Since the special rate was introduced in 2011 it is estimated that around 900 hospitality sector jobs have been created in Kerry.

While the special VAT rate remains there was no positive news on the long awaited Macroom bypass, a project seen as vital for the future economic development of the county.

Sinn Féin Kerry Deputy Martin Ferris was critical of the move which he said was part of the Government’s continued neglect of the south west.

“Once again Kerry has been sidelined and neglected when it comes to roads capital infrastructure, the Macroom bypass is of critical importance to the county. So much for new politics, it seems its the same old politics and broken promises,” Deputy Ferris said.