Reduced vat rate results in 605 new jobs in mayo

SOME 605 new jobs in the food, tourism and hospitality sectors have been created in Mayo since the reduced VAT rate of 9% was introduced in July 2011, according to a report published by the Restaurant Association of Ireland (RAI).

Adrian Cummins, chief executive of the RAI, says the introduction of the new VAT rate has been a major driver of local employment growth. He explained: “Some 605 new direct jobs have been created in Mayo alone, with 21,633 new direct jobs created across the whole country.”

This is a conservative estimate, says the RAI, and does not include the number of indirect jobs created in the wider economy as a result of the multiplier effect. When the multiplier effect is included, the total number of new jobs is even more impressive, with 883 jobs in Mayo and 31,584 jobs created nationally.

“The 9% VAT has given a much needed lifeline to my business. With the reduced VAT rate, our business has grown and the number of jobs we have created has grown from 14 to 18 people. The retention of VAT at 9% will protect the jobs that have been created in our industry,” commented Mark Cadden of Bar One in Castlebar.

Among the key findings in the report is that the increase in direct employment of 605 in the accommodation and food services sector in Mayo has saved the Exchequer €12.1 million in social welfare payments.