The 9% VAT rate has been welcomed by restaurants but does the hospitality sector actually need it?

In the first half of this week’s Inside Business, we debate the merits or otherwise of the now permanent 9 per cent VAT rate for the hospitality sector which kicked in on Wednesday.This followed a pledge in last year’s budget to cut the rate, and a long lobbying campaign by many in the industry. But at a cost of €681 million in a full year, is it a good way to spend taxpayer’s money? And should the Government have looked at other ways to support the sector rather than this tax break?Adrian Cummins, CEO of the Restaurant Association of Ireland will argue the case for, while Barra Roantree, assistant professor of economics at Trinity College, will explain why he believes this is a bad policy by Government.In the second half of this episode, John McCartney, a lecturer in property economics at TU Dublin, will explain why he thinks the downturn in the Dublin office market is a permanent one, and not just cyclical as some in the industry would argue. Has the market peaked? And will vacancy rates continually increase?Produced by John Casey with JJ Vernon on sound.