I move that the Bill be now read a Second Time.
I should imagine that it is not necessary, in moving this Bill, to stress the importance of the tourist industry in the national economy; I think that is now generally recognised. However, as the Bill does propose to authorise the expenditure of substantial sums from the Exchequer on the development of the tourist industry, it may be no harm to emphasise how important to the national economy its development may be.
At the present time over-all earnings from the tourist trade are second only to earnings from agricultural exports and as a matter of particular current interest it may be mentioned that receipts from tourism represent the largest single item in the list of our dollar earnings. During the year 1950 the gross receipts from tourism were estimated at £32,400,000. They exceeded by about £3,000,000 the gross receipts from all live-stock exports and fell short by only £12,000,000 or £13,000,000 of the receipts from all agricultural exports. These figures help to demonstrate the value of the tourist trade as a source of revenue and that it is, in so far as its effect upon the national economy is concerned, an export trade. It would be no exaggeration to describe it as a corner stone of the national economy.
Certainly on the success or failure of our efforts to expand tourist revenue will depend whether we can maintain, much less improve, the present standard of living of our people. As was made clear in recent debates here, the deficit in the nation's balance of payments in 1951 constituted a very serious threat to the stability of our economy. That deficit last year was in the region of £66,000,000. It is obvious that an adverse balance of that magnitude cannot be permitted to continue for any appreciable time. The only satisfactory way, the only way of solving the problem which it constitutes without hardship to our people, is to step up both production and exports. Any other solution would involve undesirable social and economic consequences. Plans for the expansion of agricultural and industrial production have been made but they are likely to provide a long-term rather than an immediate solution of that problem.
The tourist trade, however, offers an opportunity of expansion and the prospect of a quicker return than any other trade. We believe that if the approach to the problem of expanding the tourist revenue is properly planned a substantial increase in tourist earnings can be achieved. I have expressed the view already that it is conceivable that tourist revenue could be doubled. I am sure that the House will recognise, however, that an expansion of that dimension and having such consequences for the welfare of the country cannot be achieved unless the State takes a far more active part in securing it than it has heretofore and is prepared to undertake expenditure in promoting it to a much greater extent than previously. State expenditure alone will not, of course, produce the results desired. There must also be a considerable investment of private capital. The aim of State policy should be to secure that investment.
At the present time we have, as the House is no doubt aware, excellent opportunities for expanding tourist revenue. The reduction in the currency allowance to British citizens travelling to continental countries should result in an increase of British visitors coming here; the reductions in transatlantic air fares which are coming into operation in 1952 create conditions favourable to an increase of dollar earnings from tourists. I think it is true to say that many Americans could come to this country for holidays at an all-in cost including transportation substantially below the cost of holidays in their own country.
These opportunities, however, must be fully exploited if we are to get the most out of them. The aim must be to get the maximum number of visitors from abroad, English and American visitors in particular, to visit this country and to do so in circumstances which will keep the trade expanding when the temporary favourable conditions are passed, when travel to continental countries becomes easier for British citizens and despite the attractions which these countries may have to offer to American visitors. If these opportunities are not fully exploited, we may lose the chance of expanding our tourist earnings.
Under existing legislation, that is, the Tourist Traffic Act, 1939, the Irish Tourist Board, which was established by that Act, may be paid an annual Grant-in-Aid fixed at £45,000. My predecessor early last year authorised the board to incur expenditure above that limit in the present financial year, with the intention of submitting to the Dáil—and and securing the enactment of a Bill revising that statutory limitation. That is the reason why a Supplementary Estimate is now before the Dáil—and I suggest that that Supplementary Estimate be debated, if it requires to be debated, in conjunction with the Bill—and why it is necessary that this Bill should be passed before the end of the financial year. If for any reason it should be delayed in its passage through the Oireachtas, it will be necessary to put through a short Bill within that period, authorising the expenditure which the Tourist Board has already undertaken in this financial year. Under that Act of 1939 also, the board could be given repayable advances within a limit of £1,250,000. These advances, save as otherwise authorised by the Minister for Finance, were confined to works, investments and loans which were certified by the Tourist Board to be profit-earning.
When I resumed office last year, I undertook a very careful and thorough review of policy in relation to tourist development. I considered the legislation which had been prepared by my predecessor and which did not secure enactment by the Dáil because of the dissolution last year and I studied the reports on tourism which had been presented as a result of a number of technical assistance projects under E.C.A., and particularly the report furnished by Mr. Christenberry and his colleagues. I think the Dáil will expect me to express appreciation of the help given to the preparation of plans for tourist development by the Government of the United States under their E.C.A. technical assistance programme.
I had a number of discussions with members of the Tourist Board and with representatives of the Irish Tourist Association, and I also had the benefit of a personal discussion with Mr. Christenberry. His report had been submitted before the change of Government, but I invited him to come back here to review the position as it had developed since his report was made and to advise me upon ideas which were under consideration by me at the time. The technical assistance project under which Mr. Christenberry operated provided for that second visit by him. I perhaps should mention that he indicated almost complete agreement with the plans I outlined to him, except in regard to the establishment of a separate publicity board. He was not in agreement with that step, although he said he appreciated the considerations which led me to take it. The drafting of this Bill took somewhat longer than I anticipated, but the delay was unavoidable. It will be seen, however, that the Bill is a fairly comprehensive one and one which, I hope, will form a sound basis for the development of the tourist industry over the next five years.
I have expressed the view that the aim of doubling our revenue from the tourist industry will not be achieved unless expenditure, both by the State and private interests, is substantially increased. Mr. Christenberry said in his report that the State must get completely into the swim of tourism and not be content with merely wetting its feet, as it has been doing heretofore. This Bill is designed to enable the Government to contribute funds towards tourist development and publicity on a scale which is substantially in excess of anything previously attempted. There is power for the making of State grants amounting to £500,000 a year, if that much is required, for general development and publicity purposes.
I should, perhaps, make it clear that the method of financing the activities of the tourist organisations is changed. In the Act of 1939, the Tourist Board received a Grant-in-Aid of a fixed amount per year and was not obliged to surrender to the Exchequer any portion of that sum which was unexpended and its expenditure was entirely at its discretion within the limits of its powers as fixed by the Act. The proposal here is to fix a ceiling to the amounts that may be given for tourist development purposes. That ceiling cannot be exceeded without further legislation, but the intention is that the organisations set up under this Bill will prepare annual budgets of expenditure, and, subject to their approval by the Government, will receive whatever amounts they require within these limits, the amounts being indicated in the Estimates for the year.
There is also provision in the Bill for giving over a period of five years guarantees of loans amounting to £3,000,000 for the improvement of holiday accommodation and tourist resorts. Deputies who are familiar with the Trade Loans (Guarantee) Acts will understand that the provisions of this Bill relating to these guaranteed loans are similar to those of the Trade Loans (Guarantee) Acts, with this difference, that the purposes for which these loans may be guaranteed are those defined in the Bill and the further important difference that the advisory committee which will consider applications for loans will be An Bord Fáilte, the Tourist Board, and not the advisory committee under the Trade Loans (Guarantee) Act. These provisions are designed to assist private interests who are willing to invest their own money in the tourist industry.
I express the hope that private interests will avail of the opportunity given them by this Bill to the full. Unless all those who are directly or indirectly concerned with the tourist industry play their part, the efforts of the Government and the two statutory organisations which will be functioning under this Bill cannot achieve a full measure of success. The public in general, the hoteliers, the local authorities and groups interested in the development of particular holiday resorts must be educated to understand how important the industry is in the national economy and how important it is that they should co-operate with the two official organisations in making a success of it.
I think I should say that the evidence is that we have not yet succeeded in arousing sufficient interest in the potentialities of the tourist trade, even among those whose livelihood would seem to depend on its development. When the various reports were received under the E.C.A. technical assistance projects, it was decided to publish a synopsis of these reports in the form of a brochure, of which Deputies have received copies.
Two thousand five hundred copies of that synthesis, as it was called, were printed. Up to the 19th of this month, only 260 were sold. When one realises that there are over 1,000 registered hotel and guest houses in the country whose business it should be to learn the opinions of experts upon the potentialities of their industry, of what they might do to exploit those potentialities, it is very disappointing to find that so few were sold.