She said: "Lowering the VAT rate for both the Hospitality and Construction industries would support these sectors at a difficult time and has the real potential to create jobs.
"It is fair to say that these industries have been hardest hit by the recession as the amount of disposable income people had available to them decreased. In respect of the hospitality industry lowering the VAT rate would create an estimated 3000 jobs according to industry experts.
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"Reducing the rate of VAT would help generate higher levels of employment, with increased wage levels and training. This would help increase additional tax receipts as a result of this additional employment with consequential savings on social security payments.
"We only have to look to Europe where measures are being taken to boost the hospitality industry. Nineteen of the twenty-seven EU member states have a reduced rate for at least part of their visitor attractions sector. As regards hotel accommodation, every country except Denmark, Slovakia, Lithuania and Britain has a reduced rate of VAT.
"Similar benefits would accrue to the Construction industry should VAT be reduced. It would allow more work to take place, such as small home improvements and repairs. Building new, greener and modern homes can help cut down on energy costs.
"The Finance Minister must do all he can to push for a fair rate of VAT for the Hospitality and Construction Industries if they are to grow and expand."
(CD)
