IHF Welcomes Publication of the National Recovery Plan 2011-2014
Archaic System of Setting Hotels Minimum Wages must be Abolished

24th November 2010

The Irish Hotels Federation today welcomed the publication by the Government of the Four year plan designed to steer the sustained recovery of the Irish Economy. 

Mr Paul Gallagher, President of the IHF stated that this plan will only succeed if Ireland continues to improve its competiveness in international markets and thereby increase its economic activity.

“We acknowledge the commitment to maintain the important investment in overseas marketing and the sensibility in not proposing to increase the reduced VAT rate applicable to labour intensive businesses, said Paul Gallagher. 

We welcome the measures which will reduce the cost base in which businesses particularly labour intensive businesses such as hotels and guesthouses operate. The proposal to reduce the National Minimum Wage by 11.5% to €7.65 will be of major help to our sector where labour costs exceed 40% of our sales.”

The Minister for Enterprise Trade and Innovation must, after the proposed review of the Joint Labour System; which sets the wage rates for a large section of hotels in Ireland, abolish the antiquated bureaucratic statutory wage setting system which adds further to labour costs in hotels affected. Mr Gallagher states, “It is essential that the necessary legislation to implement this decision is immediately enacted by the present Government and not left to a new administration.”

As part of the state’s efforts to boost the economy, Mr Gallagher stated, it must redouble its actions in reducing energy costs and substantially reduce the burden of local authority rates.  Our energy costs must be brought into line with those of our neighbouring countries and any state imposed levies or regulations which add to energy costs must be immediately removed.

“The IHF firmly believes that tourism and the hospitality industry will have a major contribution to make to our national recovery but it can only achieve its full potential in a business friendly competitive economic environment” concluded Mr. Gallagher. 

ENDS

Further Information:

Mary McCarthy/Orla Molloy - Weber Shandwick, Tel: 01 676 0168