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BreakingNews.ie
a day ago
- Business
- BreakingNews.ie
Politics watch: Taoiseach defends EU-US trade deal amid criticism
Here, we have a look at the topics likely to dominate political discourse in the week to come. EU-US trade deal The Taoiseach has welcomed a new trade agreement between the US and EU as having 'avoided a damaging trade war'. Advertisement Taoiseach Micheál Martin also said there is 'much to be negotiated' following what he termed a 'framework agreement'. Speaking to the media in Dublin on Monday, Mr Martin said it 'opens up the prospect of more significant strategic collaboration between the US and Europe on quite a number of issues'. 'It also avoids further escalation, or indeed a trade conflict, which would be very, very damaging to the economies of the United States and of the European Union,' he said. 'It's important to say that Europe never sought tariffs, or never sought to impose tariffs, and fundamentally, we are against tariffs: we believe in an open trading economy.' Mr Martin said it is a very different situation than before April 1st. Advertisement 'New realities are in play and so at a broader level, the stability and predictability that this agreement brings is important for businesses, is important for consumers and indeed patients when it comes to the manufacturing and distribution of medicines,' he said. 'In essence, we have avoided a trade conflict here which would have been ruinous, which would have been very damaging to our economy, and to jobs in particular. 'The challenge now for Europe is to work on its own inefficiencies, to reduce barriers within the single market, to press ahead more ambitiously and more proactively on trade diversification and trade deals with other countries that would facilitate that market diversification that is required. 'Meanwhile, there is much to be negotiated in the aftermath of this framework agreement.' Advertisement Asked about mixed reactions to the deal in Europe, Mr Martin said: 'Nobody is welcoming tariffs with open arms. 'I think we've been consistent in saying that we don't agree with tariffs, that we prefer if there weren't tariffs, but we have to deal with realities. 'I understand people criticising, but given the balance and the options here… in my view, I would appreciate the work of the (European) Commission in this regard, and the avoidance of a trade war is preferable, in my view, and that's the key issue.' Businesses have had a mixed reaction to the agreement. Advertisement In a statement, business lobby group Ibec said the deal will still leave a "substantial burden" for some industries. Ibec chief executive Danny McCoy said: "Today's trade agreement between the US and EU brings an end to a significant amount of uncertainty for some businesses. However, a 15 per cent tariff still represents a substantial burden for many industries. Sectors which rely heavily on the US market and operate within small margins, will once again be significantly impacted by an additional 5 per cent tariff, on top of what they have already had to absorb over the past several months and well in excess of the 1 per cent effective tariff which existed before April." Mr McCoy added: "Our message to the Government, as it was with the 10 per cent tariff, is that the most exposed sectors will require support similar to the interventions provided as a response to Brexit. "It is important to note that the details are still emerging and will only be worked out as today's framework is fleshed out. These details will be critically important for Ireland. Pharmaceuticals and Semiconductors which equate to 75 per cent of Ireland-US trade are, we understand, included in the 15 per cent deal. However, there is still a question around the stability of that rate over both the short and long-term in the face of ongoing Section 232 investigations." Advertisement Speaking on RTÉ's News at One, IEA chief executive Simon McKeever: "I think the EU was backed into a very difficult negotiating position because of the lack of investment in defence and security spending over the last number of years. It's totally dependent on the US in that space. "I don't think it's a good deal. I don't think it's a great deal and for Irish businesses, they're now faced with a 15 per cent tariff they weren't faced with before and they'll need to deal with that. "I think that we were negotiating with one if not two hands tied behind our back. I don't think we were in a very strong position because of the defence issue." He called on Tánaiste Simon Harris to get the trade forum together urgently. "Companies are going to need help. We have called for a tariff adjustment fund, which is based on the Brexit adjustment reserve and was brought out in 2021. "Irish companies are going to need time to get to grips with this. I'm calling on Simon Harris to please get the trade forum together tomorrow or on Wednesday, because we need to get back to our members with this." French prime minister François Bayrou called the deal a "dark day" for Europe. 'It is a dark day when an alliance of free peoples, united to assert their values and defend their interests, resigns itself to submission,' Mr Bayrou wrote on X. Michael D Higgins tells EU presidents silence on Gaza would be a 'moral failure' President Michael D Higgins has written to other European presidents to say that silence on Gaza would be a moral failure. He said that while Israel has a right to defend itself, they cannot let the 'horrific' attack on October 7th, 2023, 'provide a licence or cover' for the scale of civilian deaths in Gaza. Mr Higgins wrote the letter to the Arraiolos Group, an informal organisation representing presidents of EU countries which meets once a year. The political forum is named after the Portuguese town where the first meeting took place in 2003. 'I am sure that we all remember with horror the moment when news broke of the horrific atrocities carried out by Hamas as we returned from our meeting of the Arraiolos Group in Porto in October 2023,' he said. 'These atrocities were rightly condemned by all member states. We were not silent and called for the unconditional release of all hostages. 'While Israel has a right to defend itself, we cannot let that horrific event provide a licence or cover for the totally unacceptable loss of life, including from malnutrition and dehydration by infants and mothers that is now being perpetrated in Gaza.' Abroad The EU-US trade deal was announced during US president Donald Trump's visit to Scotland, where he appeared alongside European Commission president Ursula von der Leyen. He also appeared with UK prime minister Keir Starmer at a press conference on Monday, where they addressed a range of topics. Mr Trump said the focus in Gaza was getting food to people amid ongoing Israeli blockades of aide that have left the population on the brik of mass starvation. Mr Trump also suggested he will bring forward a deadline for Russia to agree a ceasefire with Ukraine.
The Independent
a day ago
- Business
- The Independent
Nobody is welcoming tariffs ‘with open arms', says Irish premier
Ireland's premier has said no one is welcoming a baseline tariff of 15% 'with open arms' but the EU-US agreement avoids a 'ruinous' trade war. Taoiseach Micheal Martin also said the deal offered 'overall ceilings' on tariff rates and would mean they are not 'stacked' upon another. Despite suggestions from US President Donald Trump, he said his understanding was that the 15% tariff on pharmaceutical exports also represented 'a ceiling' rate. Speaking to the media at Government Buildings in Dublin on Monday, Mr Martin said the US tariffs are 'not Brexit' and the approach for supporting businesses had to be 'strategic and not a handout'. He said what effect the new trading arrangements would have on October's budget would be decided closer to the time. 'It's important to say that Europe never sought tariffs, or never sought to impose tariffs, and fundamentally, we are against tariffs: we believe in an open trading economy,' he said. 'New realities are in play and so at a broader level, the stability and predictability that this agreement brings is important for businesses, is important for consumers and indeed patients when it comes to the manufacturing and distribution of medicines,' he said. 'In essence, we have avoided a trade conflict here which would have been ruinous, which would have been very damaging to our economy, and to jobs in particular. 'The challenge now for Europe is to work on its own inefficiencies, to reduce barriers within the single market, to press ahead more ambitiously and more proactively on trade diversification and trade deals with other countries that would facilitate that market diversification that is required. 'Meanwhile, there is much to be negotiated in the aftermath of this framework agreement.' The EU is to have 15% tariffs imposed on most of its goods including cars, semiconductors and pharmaceuticals entering the US, with no new tariffs on US goods coming into the bloc. There will be 'zero for zero' tariffs on a number of products including aircraft, some agricultural goods and certain chemicals – as well as EU purchases of US energy worth 750 billion dollars (£560 billion) over three years. There is a mixed reaction to the deal across the EU, with French minister Benjamin Haddad calling the deal 'unbalanced' and Hungarian Prime Minister Viktor Orban stating that Donald Trump 'ate European Commission President Ursula) von der Leyen for breakfast'. Ireland's junior minister at the Department of Foreign Affairs, Neale Richmond, said the deal was the least worst option. 'We're not exactly celebrating this, it's not a case that this is a good thing but it's probably the least bad option based on what we were facing a couple of days ago, the prospect of a 30% tariff,' he told the BBC. Asked about mixed reactions to the deal from heads of government across Europe, Mr Martin said: 'Nobody is welcoming tariffs with open arms. 'I think we've been consistent in saying that we don't agree with tariffs, that we prefer if there weren't tariffs, but we have to deal with realities. 'I understand people criticising, but given the balance and the options here … in my view, I would appreciate the work of the (European) Commission in this regard, and the avoidance of a trade war is preferable, in my view, and that's the key issue.' He added: 'It's easy to put the chin out in life, but sometimes it's wiser to box more cautiously and to negotiate wisely and to think of the bigger picture, and I think that's what President von der Leyen and Maros Sefcovic have done on this occasion.' Asked about whether the 9.4 billion euro that the government announced last week would be spent in the budget would be cut back, Mr Martin said they would better understand the implications closer to the budget being unveiled in October. 'It's difficult at this early stage to calculate the impact of these tariffs in terms of government revenues, or indeed in terms of the prospects for 2026, so we will do further analysis of that.' He said he did not believe Irish companies would lose access to the US market as a result of the tariff rate. He added: 'This is not Brexit, and I would caution in terms of just creating funds in themselves. 'I think more importantly, we have to take decisions now that would create the opportunity or the landscape for companies to grow and to develop strongly, to become more energy efficient, in terms of research and development supports. 'It has to be a strategic approach, not a handout approach.' Responding, chief executive of business group Ibec Danny McCoy said he believed Europe had 'capitulated' to get a deal, but said if they had negotiated harder 'we could have damaged ourselves a lot more than we anticipated'. He said there would be 'hard cases' and job losses in Ireland under a 15% tariff, and was 'surprised' the government was not open to Brexit or Covid-level supports for businesses. 'It's not going to be a catastrophe, we're more resistant than that, but for some industries, going back to the point around the Brexit-type adjustment fund, you need to be sensitive there will be some areas that actually could find this devastating.' Mr Martin said it was 'vital' that the EU pushes ahead with the expansion of the European single market to reduce barriers in a number of sectors that 'are way beyond the value of the tariffs'. He said it was not clear yet what impact the tariff differential on the island of Ireland would have, as there is a 10% tariff in place in Northern Ireland. 'In terms of the north-south, again, the detail will be important here and its early days yet to be reading too much into that differential, because ours are not stacked, whereas some in the north would be, so these are complex issues that have to be worked out.'
Irish Times
4 days ago
- Politics
- Irish Times
Miriam Lord's Dáil end-of-term awards: from cute hoors to rookie errors and good operators
School's out for summer. Some TDs are skipping lightly home with their end-of-term report cards. Others are losing their schoolbags and hoping nobody notices. It's no big thing this year. Continuous assessment is how it goes in politics; and where the class of 2025 is concerned their Dáil and Seanad journeys are just beginning. The general election may have happened last November, but business in both Houses of the Oireachtas only started in January. Business proper took months to get going thanks to the mammoth opening schmozzle over independent deputies who signed up to support the Government muscling in on the Opposition's speaking rights. READ MORE The row derailed Micheál Martin's big day in the Dáil when his election as Taoiseach had to be abandoned amid chaotic scenes in the chamber. The rules were tweaked to allowed these independents, along with government backbenchers, a chance to table questions to the Taoiseach directly after the Opposition's slot. The controversy, which considerably delayed the working of the Dáil, has blown over for now, although the backbenchers and independents attempts at grilling the Boss have been such a damp squib one has to wonder why they bothered making such a fuss about it in the first place. Most unexpected controversy award went to skorts. Here Sinn Féin Oireachtas members stand in solidarity with camogie players who had called for the right to choose between shorts and skorts when playing. Photograph: Sinn Féin But this episode will be not forgotten by the Opposition. Unlike most of the term which followed. Just seven Bills have been enacted this year. That first one was a vital piece of emergency legislation, nobody said. It allowed the Government to increase the number of Junior Ministers on its books to mob proportions and festoon five of its domesticated independents with Super Junior status. The committees are only getting into their stride now. The sluggish start didn't give politicians much of a chance to shine. Much of the new intake barely got a look-in. Maybe some of them might have the makings of a report card by the end of the year. In the meantime, here's a few who made it on to the summer prizegiving list for their performance so far. Top of the class: Jim O'Callaghan Traditionally, this tends to go to a party leader. But none them has had a stellar start. The politician who has stood out in what has not been a particularly competitive field so far is Minister for Justice Jim O'Callaghan . He has proved the most proactive member of Cabinet so far, he doesn't tend to waffle and his Dáil performances have been measured and conciliatory. Minister for Health Jennifer Carroll MacNeill is a close second in a very difficult portfolio. Best senator: Michael McDowell He's been at this politics lark forever now and maybe there are other Seanad performers who deserve a look in, but Michael McDowell has had a great term. Still busy on the legislative front, still the best speaker in the Upper House and still happily batting away the bouquets from people who want him to run for president. He was first senator elected to the 27th Seanad, topping the poll in the National University constituency. No wonder he's been padding contentedly around the Leinster House campus, smiling like a Chesire Cat. Opposition best boy: Alan Kelly The former Labour leader is full of beans these days and when he isn't asking probing questions about Garda accountability (he seems to have a terrific source or two), he's happy out chairing the showbiz Committee on Arts, Media, Communications, Culture and Sport. Deputy leader of the Labour Party Alan Kelly is the standout Opposition figure. Photograph: Stephen Collins/Collins Guaranteed a few headlines there and AK-47 isn't going to miss them. Opposition best girl: Jennifer Whitmore The Social Democrat TD for Wicklow is more low-key than best boy Kelly, but that's not a bad thing. Jennifer is consistently good with her contributions across a range of issues and her Leaders' Questions clash with constituency colleague and Tánaiste Simon Harris on the last day of term showed she can mix it with the best of them as she called out a Government of 'epic wasters', which was 'reckless and feckless' with a giveaway budget before the election, but was now 'moralising' about financial restraint. Another Opposition TD who doesn't go in for showboating is Sinn Féin's Pat Buckley (Cork East) who is very considered and thoughtful in his contributions, particularly on social issues. Fianna Fáil's occasionally difficult backbencher, John McGuinness, also had an excellent term. He was elected Leas-Cheann Comhairle and had the satisfaction of hearing the State apology to Lucia O'Farrell, who had long campaigned for the truth surrounding the death of her son Shane, who was killed by a driver out on bail. McGuinness was one of Lucia's staunchest allies all through the years when most TDs had moved on. Cutest hoor in class: Micheál Martin/Michael Lowry This is a tie between Micheál Martin and the independent deputy formerly known (by the Taoiseach) as the disgraced TD for Tipperary North, Michael Lowry . Hard to imagine that Micheál once told the Dáil that Michael was not fit to be a member of that august house after the Moriarty tribunal found that Lowry, a former Fine Gael minister, attempted to help businessman Denis O'Brien secure the State's second mobile phone licence in 1995. This didn't stop the Taoiseach striking a deal with Lowry and his group of Regional Independent TDs who became, in the words of Mary Lou McDonald, 'the wobbly leg of the Coalition stool'. Taoiseach Micheál Martin struck a smart deal with independent TDs. Photograph: Dara Mac Dónaill Micheál bagged a cohort of supporters with benefits who will remain loyal once they are minded, further cementing his government's grip on power. As he will probably bow out at the next election, if not before, the Lowry stroke won't come back to bite him. As to the kingmaker formerly known as the disgraced deputy for Tipperary North, he's thrilled with himself. He couldn't look happier if he was giving the two fingers to that Dublin socialist, Paul Murphy. Mr Congeniality: Cian O'Callaghan The acting Social Democrat leader never seemed comfortable with the tricky situation surrounding prodigal TD Eoin Hayes, who pulled off a shock victory for the party in Dublin Bay South only to be exiled from the parliamentary party for misleading colleagues over when he got rid of shares he held in a company with links to the Israeli military. On one of the many occasions Cian was asked about the party's on-off relationship with Eoin (he came in very handy for ballast when they needed an extra body for committee appointments), he declared awkwardly: 'I said hello to Eoin just last week.' Happily, word came through on Friday that the suspension has been lifted. They have killed the fatted calf and now they can all say hello to each other whenever they want now. Prizes for honesty and courage: Minister of State and Chief Whip Mary Butler and Sinn Féin senator Nicole Ryan During statements on Pride Week, Mary was one of many TDs to speak on the subject. But as it was the penultimate day of the Dáil term, those statements got very little attention. The Fianna Fáil TD for Waterford said she was speaking not only as a minister, 'but as a proud mother, ally and advocate for the full inclusion of LGBTQ+ people in Irish life. I am especially proud of who I am and who my family is. My son is a transgender young man and seeing him grow into his own identity reminds me daily of the urgent need for compassion, dignity and fairness in public policy. 'Sometimes the debate in relation to trans issues rages on social media without facts or understanding. It can be very hurtful. We should all reject those nasty opinions from people who do not understand the hurt and pain for young trans people who have to navigate a difficult enough pathway in their lives.' Sinn Féin's Nicole Ryan won plaudits for speaking out in the Seanad about domestic violence. Photograph: Sam Boal/Collins Cork-based senator Nicole Ryan was loudly applauded by her colleagues in the Upper House for her moving contribution during a debate on the Domestic Violence Bill. She told how she witnessed domestic abuse as a child, living in a violent home from the age of four to seven. 'As a child, when you're developing through that stage, it shapes how you see the world' she said. 'For two decades, I lived in the shadow of shame.' She learned how to read people. 'I would know the kind of mood that he'd be in by the way that his foot crossed the threshold of the front door.' Her mother escaped, 'but none of us got out unscathed'. Senator Ryan said she was sharing her story 'to stand up for all the other young children that are out there that are living in these homes'. Best gaffe: Darragh O'Brien The Minister for Transport wowed all the guests at the British Ambassador's summer garden party with a lovely speech made all the more enjoyable by the many nice things he had to say about his friend Jonathan, His Majesty's envoy to Ireland. Except that the ambassador's name is Paul. Second place in this highly contested category is Sinn Féin's Pearse Doherty, for delivering a high-decibel, passionate speech in the Dáil about rip-off grocery prices, fulminating about Irish-owned grocery chain SuperValu being owned by a major American food distribution company. He was one of three SF speakers who made the same mistake, having been fed the wrong information in their supplied scripts. Most unexpected controversy: skorts The row over allowing elite camogie players to choose between wearing shorts or skorts ended up in the Dáil. Minister of State Charlie McConalogue had to deal with it. 'It is important that they come together to find a resolution that is comfortable for everyone,' he wittered, oblivious to the reason why the athletes rebelled in the first place. Most unexpected venue for the launch of a presidential campaign: The High Court Michael Flatley's declared intention to run for the Áras was revealed by his barrister during a High Court case the choreographer has taken in relation to works carried out at his Castlehyde mansion in Co Cork. Flatley is even going to move back to Ireland in the coming weeks to push for a nomination. Rookie error prize for thinking out loud: James Lawless As he confidently breezed through a radio interview with RTÉ's Justin McCarthy at the end of June, the Minister for Higher Education addressed the one-off cash support which students heading to college had enjoyed for the last three years. To fee, or not to fee, that is the question. Well, James? He revealed that student fees 'as things stand' were likely to go up by a whopping €1,000. Chaos ensued. It could have been worse for James as angry constituents piled around the country with complaints about higher fees. But when Fine Gael began muttering about the increase, pressure eased on the Kildare North TD. Amid talk of a rift between the two coalition parties, the FF deputies circled the wagons around James and rallied to his defence. (Even if they were privately raging.)
Irish Times
5 days ago
- Politics
- Irish Times
Taoiseach asks to see report on alleged anti-Semitism in Irish school books
The Taoiseach has asked to see a report, conducted by an Israeli education organisation, on alleged 'promotion' of anti-Semitism in Irish schoolbooks. The report published late last year finds 'concerning misrepresentations of the Holocaust, Judaism and Israel' in some schoolbooks at primary and second level. Conducted by the Institute for Monitoring Peace and Cultural Tolerance in School Education (Impact-se), the report analysed primary and post-primary textbooks, focusing on history and religious education. 'The findings reveal a troubling pattern of trivialisation and minimisation of the Holocaust,' it says. 'For instance, Auschwitz was referred to misleadingly as a 'prisoner of war camp', failing to acknowledge its role as a death camp where mass extermination occurred,' the report says. READ MORE 'Such descriptions dilute the historical and emotional gravity of the Holocaust, providing students with an incomplete understanding of this atrocity.' It says 'many narratives question the legitimacy of the state of Israel and undermine Jewish claims to indigeneity in the land', while 'discussions on the Israeli-Palestinian conflict often lack the necessary historical and political context, presenting a one-sided view that frames Israel as the sole aggressor'. Impact-se is well regarded in Israel and the United States but faced criticism in 2022 from the United Nations, which called it 'biased', and in 2018 by then minister of state for international development in the British Conservative government, Alistair Burt, who said its research was 'not objective'. Among the Irish publishers whose schoolbooks Impact-se criticises are Edco, Gill Education, and Veritas. A junior cycle religious education textbook, Inspire – Wisdom for the world, published by implies 'Judaism believes engaging in violence and war is necessary to achieve justice. In so doing, it ignores the diverse teachings in Jewish texts that advocate for peace, justice,' says Impact-se. A spokesman for said the book ' highlights the importance of working to prevent anti-Semitism". 'For example, the material on the Holocaust and anti-Semitism on pages 396 to 399 explicitly stresses the importance of standing up against anti-Semitism. Inspire also includes many examples that cover the diverse teachings in Jewish texts that advocate for peace, justice and the sanctity of life,' he said, providing examples from the book. A Leaving Certificate religious education book, Faith Seeking Understanding, published by Veritas, is 'problematic', says the report, because it labels the Auschwitz concentration camp by name only. 'Auschwitz was not merely a geographical location ... Failing to label the image as 'Auschwitz Death Camp' or at least 'Auschwitz Concentration Camp' fails to convey the horrific reality associated with the name.' Veritas closed last year and could not be contacted for comment. Gill Education and Edco did not respond to requests for comment. The Taoiseach's office did not comment on the report, though confirmed Micheál Martin has sought a copy of it. 'During [a] meeting a report on the representation of Jews, Judaism and Israel in Irish school textbooks was raised. Following the meeting, the Taoiseach requested a copy of the report,' said a spokesman. Maurice Cohen, chair of the Jewish Representative Council, said he had sought a meeting the Department of Education amid concerns from parents of the estimated 700 to 1,000 Jewish school-going children about 'material that was offensive to Jewish people in our schoolbooks'. 'I was told I would receive a call within four days to arrange a meeting. The call never came,' said Mr Cohen. 'In recent times, the classroom has become a battleground for political messaging – particularly concerning the Israeli–Palestinian conflict. Teachers, like all citizens, are entitled to their views. But it becomes deeply problematic when those views are presented as fact to young minds. 'I have received many calls – not only from Jewish parents – expressing serious concern. Many people feel their children are being subjected to ideological messaging as early as five years old. They are right to be alarmed.' A spokesman for the Department of Education said it had no role in the content of text books. 'The curriculum for students in Ireland, at both primary and post-primary level, is for all learners regardless of race, religion, socioeconomic background, gender, orientation or ethnicity. 'The curriculum specification and prescribed material for any subject are determined by the National Council for Curriculum and Assessment (NCCA).' Chief executive of the NCCA Arlene Forster said she was aware of the report. 'Apart from a small number of prescribed texts at post-primary level, it is the responsibility of each individual school to select the resources that it will use to support its implementation of the curriculum. The content of textbooks is decided by each publisher.' Marcus Sheff, Impact-se chief executive, told The Irish Times that, given the report's findings, 'it can be no wonder that the [Irish] Jewish community feels increasingly worried and unsafe'. The texts' content 'clearly promotes anti-Semitism' in classrooms, he said. 'It is therefore both sad and astonishing that Ireland's Government has not engaged with these incredibly worrying findings, instead choosing to deflect or ignore the evidence entirely.' Mr Sheff is a former journalist and was briefly a reservist spokesman and media trainer with the Israel Defense Forces .
The Journal
6 days ago
- Business
- The Journal
Minister defends VAT cut for hospitality as government accused of breaking promises to workers
ENTERPRISE MINISTER PETER Burke has defended plans to cut VAT for the hospitality sector at a cost of €1 billion. Speaking yesterday at Government Buildings, when outlining the government's Summer Economic Statement, Finance Minister Paschal Donohoe outlined that there will be a €9.4 billion Budget 2026 package , of which €1.5 billion is set aside for tax cuts. Donohoe, and other senior members of government, including the Tánaiste and Taoiseach said last month that all government parties have committed to delivering changes to VAT for the hospitality sector. VAT for the tourism and hospitality sectors was reduced to 9% during the Covid-19 pandemic at a cost of €1.2bn to the exchequer. The previous 13.5% rate was reinstated last August, despite the sector's opposition. When asked how much it is estimated to cost for the measure to be re-introduced, Donohoe said yesterday it will cost €1bn for a VAT reduction from 13.5% to 9% for restaurants and cafes, meaning there would not be much left for further tax reductions for others. He told reporters that he has always been clear that if the government greenlights this measure there will need to be 'trade-offs' in terms of other measures that the won't be delivered. Protecting 200,000 workers Speaking on RTÉ Radio One this morning, the enterprise minister defended the VAT reduction, stating that the tourism sector is a very important part of the economy. 'At this point in time, over 200,000 people are employed in it. It's a €9 billion sector. And it's so important to try and keep that sector sustainable,' said Burke. Advertisement Over the last number of years a very significant number of independent small food outlets and coffee shops have come under pressure, he explained, stating that many restaurants are closing their doors. The minister said that the VAT reduction is a 'jobs measure' that will sustain the employment in that sector. 'It is a viability measure, they are under significant pressure. We've had a lot of additionality from government, part of it over the last three years, in terms of regulatory requirements in the trajectory to a living wage and sick pay in so many areas that have put significant pressure on the sector and have reduced their margins. 'I've been in coffee shops and indeed restaurants where I've seen their margins diminish and some making a very significant loss that they weren't the prior year, considering in many cases their trade and turnover has sustained,' said Burke. Restaurants and cafes are struggling with higher business costs and in some cases reduced demand exacerbated by the increased cost of living, with many in the industry perceiving the reinstated higher VAT rate as a significant pressure on their businesses . Department of Finance says VAT cut is 'unjustified' However, despite the government being determined to bring in the measure, Department of Finance advisory papers published earlier this month in advance of the next Budget, officials said that there are a 'number of reasons' why going back to 9% 'remains unjustified'. It listed the cost to the state, the resilience of the domestic economy, and Ireland's current position as being 'not significantly out of line with other EU countries in relation to the application of VAT in this sector' as among the reasons. 'The cost is very significant,' it said. The news that workers might not feel many benefits in the budget this October has resulted in SIPTU Deputy General Secretary, Greg Ennis stating that private sector workers have been short-changed by government. In a statement this afternoon, he accused the government of 'broken commitments' on pensions, increased sick days and measures to offset the cost of living crisis while announcing tax breaks for business in its summer economic statement. Related Reads Analysis: Delaying details of big projects stinks of distraction ahead of the budget Tax measures and €9.4bn budget package not set in stone until we know US tariff outcome Cutting VAT on hospitality 'unjustified' and too expensive, says Department of Finance He said SIPTU representatives have written to the the enterprise minister seeking an urgent meeting. Ennis said failure to introduce meaningful measures to offset the cost of living crisis is being done at the same time as government promises to provide a VAT reduction to the hospitality sector which will cost the State an estimated €1 billion. 'This morning on national radio, the Taoiseach, Micheál Martin, stated that there was a prior commitment to the hospitality sector on a VAT reduction. However, what about the government's prior commitments to workers with regard to increasing statutory occupational sick pay from five to seven days in 2025, progression towards a living wage in 2026, which has now been shelved until at least 2029, and the abolition of subminimum wages for young workers,' he said. 'Kick in the teeth' for workers 'Without the Government reaffirming and meeting its commitments for improvements for workers in the private sector and a cost-of-living package, the cut in the VAT rate in Budget 2026 will amount to another kick in the teeth to them and their families,' said Ennis. He went on to state that the government has 'gone too far' in placing the interests of business above those of workers. When asked today if customers will see the VAT reduction passed on to customers and if there will be a reduction in prices for those dining out, Burke said: 'So critically it's very difficult to ask everyone to pass it on but we need to ensure that we keep the jobs in the first place and that's the prism I look through when I have a sustainability piece like this.' The government focus now, in the midst of global uncertainty, is to protect jobs, said the minister. Readers like you are keeping these stories free for everyone... 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