The Irish Mail on Sunday

DOES ROSS EVER LEAVE DUBLIN?

Rural business owners who rely on visitors say VAT increase will put them in reverse

- By Valerie Hanley IN CO. ROSCOMMON valerie.hanley@mailonsund­ay.ie

THE first landlord to be assassinat­ed during the famine met his end in Strokestow­n.

According to businesses in the west of Ireland town that boasts the second widest main street in the country, Finance Minister Paschal Donohoe’s plan to increase VAT in the hospitalit­y sector by 50% should meet a similar fate to that which befell Major Denis Mahon, the one time lord and master of the 9,000-acre Strokestow­n Park House estate.

The plan to increase the tax for tourism operators from 9% to 13.5% was revealed by Mr Donohoe in his Budget last week. And it has ignited anger at Tourism Minister Shane Ross for failing to stop it.

The new VAT rate is to be introduced in January and the Government says the increase will add €466m to the Exchequer coffers. But those in the hospitalit­y industry claim otherwise and have demanded that Minister Ross resign.

They predict the hike will lead to job losses and a downturn.

Businessma­n Steward Watters, who runs the 18-bedroom Percy French Hotel in Strokestow­n said: ‘I don’t think Shane Ross has been outside Dublin much in four to five years. Maybe he should take a trip because businesses are just ticking over and this will put us in reverse.

‘We won’t be able take that hit and we will have to put up the prices and I don’t know if we will lose customers. Increasing the VAT is the difference between staying open and closing. The economy hasn’t pulled up here the same way as in Dublin.’

He added: ‘This VAT increase is the difference between staying open and closing, it’s a massive extra cost on the business.

‘It’s three months of the year that is keeping us going. Many hotels around here have to close in the winter because it’s not sustainabl­e to stay open,’ Mr Watters said.

Located on the N5 road linking Dublin with Mayo, Strokestow­n is a gateway town between the booming east coast and the west of Ireland, which is reaping the benefits of the hugely successful internatio­nal Wild Atlantic Way campaign.

It attracts coachloads of tourists each summer because of the locals’ ability to exploit its history. In the 17th century, King Charles II rewarded Nicholas Mahon with 9,000 acres of land for his services to the Crown. A 50-bedroom mansion was built on the site and this imposing home has dominated the town and its inhabitant­s ever since.

At the height of the Famine, the then lord and master of Strokestow­n Park House, Major Denis Mahon, forced the removal of 1,490 tenants from his sprawling estate.

It was cheaper to pay for them to be transporte­d to Canada rather than to continue to pay for them to be fed in the local workhouse. As a result, the 1,490 tenants had to walk along the Royal Canal from Strokestow­n to Dublin, where they boarded a ship to Liverpool from where they were forced to emigrate to Canada. Many died on board what became known as the coffin ships.

Months later, Major Mahon was assassinat­ed. His descendant­s continued to live in the home until 1981. By then it had been bought by local businessma­n Jim Callery and 13 years after the last of the Mahon family left the house, the National Famine Museum opened there. The house, with its walled garden, woodlands and museum is now run by the Irish Heritage Trust.

John O’Driscoll, general manager of Strokestow­n Park House, predicted the VAT increase would affect the tourist attraction that has provided the town with a financial lifeline throughout the recession.

‘Every visitor is looking for value for money. We are greatly disappoint­ed about this change in the VAT rate. It could mean a price increase and we don’t know what will happen then.

‘The admission price is €13.50 and for that you have a tour of the house, the museum and the gardens. It’s the people who are coming through

‘They think the boom is back. Not here’

who are keeping us alive.’

On the outskirts of in town, Colin Hanly has run the Silver Eel restaurant, pub and B&B with his sister Jacqueline and mother Irene for the past 20 years. He is in no doubt that Minister Ross should seek to reverse the VAT rate hike.

‘Our rates went up by 400% last year and this year our insurance went up by 150%. The minister thinks the boom is back but it’s not back here.’ Jasmine Cox, who opened the Jazel hair salon on the town’s main street 10 years ago with her friend Hazel Gunn, said: ‘The 9% VAT rate helped and it got us through [the recession] and we didn’t feel under pressure to increase our prices.

‘If it starts getting dearer, people will think twice about it because they will say that’s expensive for a midweek blow dry.’

Economist Jim Power said the policy seemed to be based on Minister John Halligan’s experience of hotel prices in Dublin. Mr Halligan, like Mr Ross, is a member of the Independen­t Alliance.

Mr Power said: ‘Basing tax policy for the hospitalit­y sector on John Halligan’s experience on hotel rooms in Dublin is hardly a sensible and coherent strategy. ‘I mean, if they had an issue, which they obviously have, with Dublin hotel prices, one way around that is to introduce a set tax in Dublin.’ Colin Hanly, who runs a function room at the Silver Eel, said: ‘It’s just not the same here. We have part-time staff. We’ll have look at cutting costs.’ Asked about the concerns that Mr Ross should visit rural towns more often, his press adviser, Carol Hunt, an exjournali­st who is on a salary of €80,000, said: ‘Could you let me know who the “they” are who have asked that he travel outside Dublin and is there anywhere specific they would want him to go?’

After the MoS pointed out that we would be using her response, Ms Hunt provided another reply.

‘The rate was in place for seven and a half years, five years beyond the original time scale. Tourism has staged a fantastic recovery since 2011 when we welcomed 6.5 million overseas visitors who generated €2.9bn in our economy.

‘This year, we will welcome over 10 million visitors and they will contribute over €5bn. Jobs supported by tourism have grown to 240,000, from below 200,000. It was not possible to retain the lower rate and deliver all the public services and investment required elsewhere.’

Ms Hunt added: ‘Minister Ross visits the West regularly and is happy to meet with members of the tourism industry there on his next trip.’

‘Hardly a sensible or coherent strategy’

 ??  ?? value: John O’Driscoll wants to keep offering value
value: John O’Driscoll wants to keep offering value
 ??  ?? price rise: Steward Watters feels he’ll have to take a hit
price rise: Steward Watters feels he’ll have to take a hit
 ??  ??
 ??  ??
 ??  ?? Pressure: Jasmine Cox worries about passing trade
Pressure: Jasmine Cox worries about passing trade
 ??  ?? sTruGGLe: Colin Hanly says Dublin boom has not spread
sTruGGLe: Colin Hanly says Dublin boom has not spread
 ??  ?? BUDGET: Simon Harris can’t keep spending down
BUDGET: Simon Harris can’t keep spending down

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