Killarney Chamber of Tourism and Commerce has given a mixed reaction to this week’s budget.

It has welcomed budgetary recommendations that will offset the cost of energy and is hopeful new Gardai will be assigned to Killarney following an increase in recruitment announcement.

However, the business group has criticised the VAT increase sanctioned for the tourism industry for March 1 and that it will lobby the Department of Finance to reverse this decision.

Chamber President Niall Kelleher said it is imperative that businesses are given every assistance to remain productive and competitive and, in the process, enable them to retain staff.

“The plan to help businesses with the rising costs of electricity and gas is welcome but, that said, it was essential given just how vulnerable and exposed many of them are feeling just now,” he said.

A €200 million scheme, administered by Enterprise Ireland, will support larger firms involved in exporting and manufacturing while another scheme, aimed at small and medium sized businesses, will cover 40 percent of the hike in electricity or gas bills, up to a maximum of €10,000 per month per business.

The Chamber expressed some concern, however, that no commitment was given to extend the nine percent tourism and hospitality VAT rate beyond February 2023.

“We will be lobbying intensively to ensure the lower rate is continued well beyond the date mentioned by the minister as it is essential that hotels, restaurants, guesthouses, cafés and other tourism-related businesses are given the tools they require to remain competitive,” Mr Kelleher said.

“The lower VAT rate is needed to protect jobs in the industry, especially now that energy costs are soaring at an alarming rate,” he added.

The Chamber President also welcomed the Budget commitment that 1,000 new recruits will be accepted into the Garda College in Templemore and that more Garda overtime will be sanctioned to tackle anti-social behaviour.

“Given that the population in Killarney multiplies dramatically during the tourism season, I would fully expect extra human resources to be sanctioned for the town."