The Transport, Tourism and Sport Minister has been commenting on this week's Budget and the retention of the 9% hospitality sector VAT rate.

Minister Paschal Donohoe commented on the benefits of keeping the VAT rate low.

He said he expects to see continued job creation and lower prices in the sector due to the retention of the lower rate:

Before the Budget, SIPTU had called on the Finance Minister to reinstate the 13.5% VAT rate in the Budget unless employers agreed to sign up to new pay rates and conditions for workers in the hotel, restaurant and tourism sectors, arguing that the reduced rate was not being passed on to customers, employees or the exchequer.

Business owners hit out at the union's suggestions.

Chief Executive of the Restaurants Association of Ireland, Adrian Cummins said that the “call to reverse the VAT rate is directly hindering the creation of 50,000 jobs by 2020 which will be possible if the VAT rate is kept at 9%."

Minister Donohoe also commented on the ongoing controversy over Irish Water. He says there is "a huge amount of understandable concern" over the future cost of water for households around the country and that "we need to see Irish Water deliver more".

However, he stresses that budgetary measures have been designed to help people who will struggle to pay the charges, and that it is important for tourism that the charges are introduced: