Dáil Éireann Debate, Tuesday - 26 July 2022
422. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year cost of introducing three new bank holidays, including estimating increases in VAT and tax receipts that would increase due to increased activity, tourism and spending on these bank holidays; and if he will make a statement on the matter. [41572/22]
View answerAs the Deputy is aware, policy in relation to bank holidays is a matter for my colleague, the Tánaiste and Minister for Enterprise, Trade and Employment.
The Deputy will also be aware that the Government is introducing a new permanent bank holiday in February next year to celebrate Imbolc/St. Brigid’s day. This will see the first St. Brigid’s day public holiday take place on Monday 6th February 2023 and will raise the number of public holidays in Ireland to 10. However, while there are potential benefits to the economy in introducing an additional bank holiday, particularly in the tourism, entertainment and hospitality sectors, there are also costs involved.
As my colleague, the Tánaiste and Minister for Enterprise, Trade and Employment noted in a parliamentary question last month (PQ 28894/22- June 14th 2022 Question 163), previous analysis suggests the economic impact of an additional one-off public holiday could reduce annual gross national income by between 0.3% and 0.4%. Based on projections of modified gross national income for 2022 set out in the 2022 Stability Programme Update, this would suggest the economic cost of introducing a single new public holiday would be in the region of €0.7 billion to €1 billion. On a purely indicative basis, a proportional reduction in tax receipts would amount to a loss in revenue of somewhere in the range of €0.2 to €0.3 billion. This would, of course, not take into account the additional fiscal cost associated with holiday and premia pay for staff in sectors where services are provided on a 24/7 basis, such as the health sector and the Gardaí.
