The Restaurants Association of Ireland has said that workers' hours will be cut, if the government increases the tourism industry's special 9% VAT rate.

The rate was introduced in July 2011, and since then, the RAI says 6,500 jobs have been created in the sector.

It claims the rate has made restaurants more competitive and it has helped maintain employment for farmers, local suppliers and delivery people.

Speaking at the launch of the RAI campaign to Keep VAT at 9%, Chief Executive Adrian Cummins said "restaurateurs will have to cut hours instead of jobs" if the VAT rate is increased. He said the industry is "labour intensive" and that the sector "could create another 5,000 job over 18 months, if the VAT rate is kept in place."

And Mr Cummins said keeping the current rate would be good news for consumers too. "Prices have been reduced in restaurants since 2011, and there is no evidence that prices will increase if the VAT rate stays the same".

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