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Joint Labour Committees

Dáil Éireann Debate, Thursday - 19 May 2022

Thursday, 19 May 2022

Questions (63)

Aodhán Ó Ríordáin

Question:

63. Deputy Aodhán Ó Ríordáin asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will ensure that the decision to reduce the VAT rate for the hospitality sector to 9% until 2023 is conditional on obliging employers in this sector to engage in collective bargaining for pay rises through the Joint Labour Committees ensuring the benefits of the VAT cuts are shared with employees; and if he will make a statement on the matter. [25354/22]

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Written answers

The conditions of the decision to announce an extension of the 9% Value Added Tax (VAT) rate for the tourism and hospitality industry are as outlined by Minister for Finance, Paschal Donohoe T.D. who is the Minister with responsibility for VAT. This extension until February 2023 is very welcome and should assist the sector greatly as one of the sectors which was most impacted by public health restrictions.

Joint Labour Committees (JLCs) are bodies established under the Industrial Relations Acts to provide a process for fixing statutory minimum rates of pay and conditions of employment for particular employees in particular sectors. A JLC is made up of equal numbers of employer and worker representatives who act autonomously in any negotiations. Any JLC is independent in its functions and no party can be compelled to commit to any terms and conditions as part of this process.

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