Ryanair chief executive Michael O’Leary (Brian Lawless/PA)
Ryanair CEO Michael O’Leary has called a planned Vat cut for the food service sector a “scam” in comments ahead of the Budget on October 7th.
The Government has committed to reduce the Vat rate on food service businesses such as cafes and restaurants from 13.5pc to 9pc, but O’Leary said it will not be passed on to consumers.
“The hospitality industry looking for the rate to be cut back to 9pc is a scam,” he said.
“The Government should under no circumstance reduce the Vat on hospitality such as on restaurants or anything else from 13pc to 9pc as they are going to transfer the money, it won’t get passed onto the consumer,” he said.
The reduction in the Vat rate to 9pc for the food services sector is expected to cost €674.6m, according to the Summer Economic Statement published in July by the Department of Finance.
The Government plans on introducing an overall budget package of €9.4bn, which includes a tax (reduction) package of €1.5bn and additional spending of €7.9bn.
With food prices in the news the Ryanair boss said his own personal beef interests are having a good year, but blamed Green Party policies for higher prices to consumers.
“I think the Greens are the cause of the food hikes over the last ten years and their impact not just on the Irish economy but on the EU with their bullshit regulations has done nothing but alienate farmers.”
“But beef has done well, farming is one of the best industries to be in as everyone will always need to eat,” he said.
O’ Leary owns a farm near Mullingar that spans up to 2,000 acres with tillage and 800 cattle which he expects to grow to 1,000 over the next year.
On labour costs, O’Leary said price pressures should not be passed onto employers through an increase in the minimum wage, as recommended by the Low Pay Commission.
“Ireland is getting more and more expensive. We need to top increasing the minimum wage, the market will look after that,” he said.
source