Vol. 676 No. 4
41 Deputy Olivia Mitchell asked the Minister for Arts, Sport and Tourism if he will take action on foot of the recommendations of the recently published task force report on the 2012 London Olympics; and if he will make a statement on the matter. [8854/09]
Deputy Mitchell, on a point of order.
I wish to take this opportunity to state how pleased I am to see the Minister in the House, safe and sound. I wonder whether his experience has changed his views on decentralisation to Killarney.
I am sure the Minister is delighted with the Deputy's good wishes, to which I add my own.
I thank both the Deputy and the Leas-Cheann Comhairle. All I can say is that I am happy to be conversing with the living today.
The Minister is well grounded.
The London 2012 Olympics and Paralympics task force was established in August 2006 to ensure Ireland can identify and maximise the complete range of opportunities arising from our proximity to the Olympic and Paralympic Games in London 2012. The taskforce included experts from the sport, tourism, cultural and business sectors and was supported by staff within my Department.
The recently published task force report makes a number of recommendations arising from an audit carried out of high quality sports facilities in Ireland and the findings of a report by Indecon International Economic Consultants on the economic evaluation of the benefit to the island of Ireland of the London 2012 Olympic and Paralympic games. It highlights the opportunities for Ireland from the London 2012 games in the sport, tourism, cultural and business sectors.
In this regard, I understand that Enterprise Ireland has been proactive in ensuring that Irish businesses are aware of the opportunities for benefiting from the business opportunities which London 2012 will provide. A dedicated website has been established to assist Irish business to avail of these opportunities. The tourism agencies have committed themselves to an energetic approach to the marketing of Ireland, particularly in the lead up to and during the games, while the artistic and cultural agencies stand ready to organise events which will showcase Ireland to the world.
On the sporting side, the task force report puts forward proposals for investment in sports facilities that would increase our attractiveness as a training destination for Olympic teams in the lead-up and during the games. However, we must be realistic in this area, particularly given the current economic conditions.
My Department will engage shortly with the relevant sporting, tourism and cultural agencies on how best to promote Ireland internationally in the lead up to the London 2012 games. These discussions will take account of the current economic situation, the findings of the London 2012 task force report and my recent meetings to identify the challenges which must be met in the preparation of our team for the London games.
I thank the Minister for his reply. The task force report suggests the potential financial benefit to the State arising from the staging of the 2012 Olympic Games in London may be in the order of €140 million. I am confident it could be far greater provided that we are able to capitalise on all the opportunities that present. It is a one-off event for this generation to have people travelling from every country in the world to a location virtually on our doorstep. The last time the Olympics Games took place so close to us was shortly after the Second World War. We are being presented with a unique opportunity.
Are efforts being made to secure business for the State not only in terms of athletes' preparation for the Games, as originally envisaged, but also in terms of a tourism spin-off? Of the many visitors coming to London, some may be induced to continue on to Ireland. Is there any linking up among hotels? I understand the Minister is engaged in discussions with industry representatives with a view to focusing efforts to promote Ireland as a cultural tourism destination. There is great potential for our tourism industry in the Olympic Games. Are efforts being made to promote Ireland as a cultural tourism destination in the countries from which people are most likely to travel to London in 2012?
The funding which the Minister indicated some time ago might be provided to invest in various facilities is not now available. In any case, the games are getting too close for such initiatives. There was a possibility of something happening at Sports Campus Ireland. The Minister specifically mentioned investigating the possibility of a velodrome. What is the status of that proposal? Has any further investigation taken place and is the project likely to proceed? If so, is it likely to be ready in time for the Olympic Games? We would have to begin marketing such a facility immediately.
On the first point, the Deputy is quite accurate in the breadth of what she said. As I said, Enterprise Ireland and the IDA are very much involved in seeking out the business opportunities that present between now and 2012. A significant number of Irish companies are contracted to undertake some of the construction work. This is positive in itself.
As the Deputy is aware, I had a useful meeting with the chairman of the 2012 Olympic Games organisation in the United Kingdom, Sebastian Coe, at which he suggested a cultural Olympics which would run parallel with the sporting side. I have had discussions with the Arts Council in this regard and bilateral discussions have already taken place. What is envisaged is events being run in Dublin as part of a package with events taking place in the United Kingdom. The objective would be to encourage people to take two or three days out of their stay in the United Kingdom to visit Dublin, Cork, Limerick, Galway, Waterford or elsewhere in the State. Offering packages of events running parallel to the games would be an effective way of encouraging such tourism. Work is ongoing in this regard and I am confident we will be able to attract significant numbers of visitors. The evidence suggests that significant numbers of people will go to the Olympic Games for three weeks with their families but will not want to spend every day there. There is a significant cultural opportunity for us. As part of their planning for 2012, the various agencies are in contact with the authorities in the United Kingdom. The latter have been very positive, welcoming and open with us in exploring how Ireland may best reap the rewards of the 2012 Olympic Games.
On the second point, I indicated on a previous occasion that I hoped to provide a range of facilities at Abbottstown. Unfortunately, that is no longer possible, although some smaller-scale facilities may be put in place in time. I do not have the resources to fund a velodrome. It is as simple as that. If there were a possibility of private sector support, that would be explored. However, this is unlikely in the current economic situation.
We should not underestimate what is happening in Limerick. I am astonished at the quality of the international athletes coming into Limerick. It is amazing to see the best athletes in their various fields having connectivity with Limerick both in terms of the physiotherapy and medical side, but also the training side. That centre is going from strength to strength and carving out a tremendous international reputation for Ireland. Likewise, Australian athletes have told us that the aquatic centre is one of the finest Olympic centres they have seen anywhere in the world. Athletes from several countries are considering using it because it has full Olympic diving facilities and warm-up facilities and a full Olympic swimming pool. These facilities are in place and we will be able to capitalise on them.
42 Deputy Mary Upton asked the Minister for Arts, Sport and Tourism if he will reopen the sports capital scheme in 2009; and if he will make a statement on the matter. [8789/09]
Under the sports capital programme, which is administered by my Department, funding is allocated towards the provision of sports facilities at national, regional and local level. The programme, which is the primary vehicle for promoting the development of sports and recreational facilities, has transformed the sporting landscape of the State, with improved facilities in virtually every village, town and city. The facilities funded range from new equipment for the smallest clubs to regional multi-sport centres and national centres of sporting excellence.
More than 7,400 projects providing a range of essential sports facilities have now benefited from sports capital funding since 1998, bringing the total allocation in that time to more than €725 million. In 2008, more than €50 million was allocated towards 685 separate sports facility and equipment projects. These grants continue to play a pivotal role in ensuring the provision of modern, high-quality facilities throughout the State that attract more people to participate in sporting activities.
My Department is currently finalising a five-year strategic plan to inform the future development of necessary sporting facilities throughout the State. The aim of the strategy is to provide high-level policy direction for future investment and grant assistance at national, regional and local level. The strategy will also identify the wider economic, health and social case for continued investment in sports facilities. It will aim to prioritise areas for future investment and to ensure continued impact on participation in the relevant areas, including those in lower socioeconomic groups. The national sports facilities strategy will address future sports facility funding and provision and will inform decisions on future rounds of the sports capital programme.
In the 2009 Estimates, €56 million was provided in my Department's Vote, part-funded from the proceeds of the national lottery, to cover payments to be made this year from the C1 subhead, out of which grants are paid for the provision of sports and recreation facilities. Any decision on future rounds of the programme will be considered in the context of the prevailing budgetary situation.
Like Deputy Mitchell, I am glad the Minister was not obliged to engage in any high-risk sports such as hang-gliding or parachuting yesterday. We are glad no serous injuries occurred as a consequence of the incident.
As I understand it, no new sports capital funding is provided for 2009. Is there any reason that national lottery funding cannot be allocated in order to facilitate new applications? It is my understanding that projects already in receipt of funding in 2008 will continue in 2009 but that no new sports capital funding is coming on board. Will the Minister explain why national lottery funding cannot be dedicated for this purpose?
For the 685 projects approved last year, funding is continued into this year. There is a further overhang of projects in recent years that will also be completed. In total, some 1,000 projects are set for completion. Lottery funding is not, nor ever was, abrogated to my Department. Rather, it goes into the central Exchequer, along with all revenues to the State. That always has been the case. It is reasonable to conclude that the sports capital programme may have been partly funded by lottery money, which is allocated through the central Exchequer, over the years. However, there is no abrogated lottery funding that is ring-fenced to my Department for sports investment. I wish there were, but that has never been the case.
I will not deny that the prevailing budgetary situation poses a great problem for us all, not least in my own area of responsibility. Given the scale of the investment involved, I am seeking to establish, on a regional basis, where facilities are lacking. For example, some regions are strong in some areas and weak in others. The objective is to have a good balance across the regions. The way forward is to have a five-year strategic framework instead of funding almost anything that comes in provided it meets certain criteria. Now is the time for a slight pause. The current economic situation has implications for us, but I may as well take advantage of it by coming up with something positive.
Some €56 million or 57% was given to support the sports capital programme from the national lottery funding. Is there some reason this cannot be ring-fenced for new capital investment for 2009?
No, because the commitments already given require every cent of the funding for 625 projects allocated and contracted. More projects have not yet started for various reasons. I cannot say how many will proceed but the sum of €56 million will be drawn down in the current year for projects to which resources have already been allocated.
43 Deputy Olivia Mitchell asked the Minister for Arts, Sport and Tourism the progress that has been made on the review of the funding of the horseracing industry; and if he will make a statement on the matter. [8855/09]
Government support for the horse and greyhound racing industries is provided through the Horse and Greyhound Racing Fund, which was established under the Horse and Greyhound Racing Act 2001. Under the provisions of the Act, the fund has received a guaranteed level of finance each year from 2001 to 2008. This was based on excise duty on off-course betting in the preceding year, subject to a minimum level based on the year 2000 amount adjusted for inflation. Any shortfall in the amount generated by the excise duty was made up by direct Exchequer subvention. In 2004, the Government put in place regulations to increase the limit of the Horse and Greyhound Racing Fund from €254 million to €550 million to continue the fund for a further four years to 2008. By the end of 2008 a total of €545.8 million had been paid out of the fund. The remaining balance in the fund at the start of 2009 was €4.2 million. Some €69.6 million has been allocated to the fund for 2009.
The rationale of the fund is that the horse and greyhound racing industries need certainty about funding support on a multi-annual basis and that the mechanism for such certainty should be derived from the duty generated from off-course betting. Prior to 2001 the horse and greyhound racing bodies were funded with annual grant-in-aid allocations as well as 0.3% of turnover and a fixed fee from off-course betting.
Funding of both of these agencies supports two very important productive industries and helps to sustain the important role of horse and greyhound breeding and training enterprises in the development of the rural economy. Together these industries these account for an estimated 27,500 direct jobs, generate very substantial economic activity and make a vital contribution to the rural economy including farm incomes. This is often forgotten. The funding given to the greyhound racing sector helps in sustaining a tradition that has existed for hundreds of years and in underpinning the economic activity of what are in many instances less affluent regions of the country.
This funding has allowed Ireland to develop into a world centre of excellence for horseracing. Horse Racing Ireland has undertaken a capital investment programme that has underpinned growth in the sector. The fund has also contributed significantly to the almost €90 million that has been invested in the improved facilities now available at greyhound tracks around Ireland. A review of the fund is nearing completion and will be submitted to the Government in due course in the context of deciding on the future funding of these industries. Any extension of the fund will require the approval of the Government and the Oireachtas. I will shortly bring proposals to the House as there is a technical requirement for me to do so.
The Minister does not have to preach to me about the importance of the industry. I accept how important it is to showcase Ireland, for its jobs and as a foreign exchange earner. It is also important to the rural economy. This year, a figure of €69 million has been allocated in the budget. The Minister is on record as saying it will come from the increase in taxation. The levy increased from 1% to 2%.
Not all of it.
I suspect there will be a revenue shortfall. Will the Government make up the shortfall or will the industry only receive what arises from the increase in taxation?
The sector is suggesting we should capture some of the revenue spent on Internet betting. The William Hill chain is closing its shops, although this might not be a great loss, but even Paddy Power is saying that three quarters of its profits come from online betting and telephone betting. There is much revenue to be captured. Has any progress been made on devising a way to capture some of the benefit of this expenditure by people?
The fund has been reduced this year in the Estimates process. As we went through this I had discussions on the matter. The fund is €69 million, reduced from over €80 million. There was acceptance in the industry that it had to take the hit. The industry, Deputies Mitchell and Barrett and I were ad idem that resourcing must come from within the industry. The taxation must be self-financing. I have provided for €69 million but betting tax will not yield that amount. It remains to be seen how much it will yield. I had to be certain in respect of the industry’s investment profile to provide certainty in respect of what the year would hold. The review is under way and Deputy Barrett is involved in part of that.
There has been a great expansion in betting but the problem is that the vast majority of this is Internet betting and telephone betting and this money is going offshore. Even 0.5% of the figure would make an incredible difference to the industry.
It is massive.
A figure of 0.5% is very small and 1% would do wonders. Experts who know far more than I are trying to get their heads around this. Only two of the companies operate in Ireland and much offshore betting is done with companies that do not operate in Ireland. The major problem is how to get at the tax of a company that operates somewhere else. Some of the companies are offshore altogether.
In the United States it has been banned. The authorities could not get at it so they banned it, with hefty fines for anyone caught betting on the Internet or by telephone. These options are on the table although I do not wish to send out the message that this is the option we will use. There are enough interests in the broad industry for everyone to come together to share so that this industry, which is wonderful for its members and economically important for the country, can survive. A small burden could be borne to maximise the taxation from the industry and this would be more than sufficient to put the horseracing and greyhound industries in excellent shape for the next decade and beyond.
Can the Minister clarify that the figure of €69 million is guaranteed for this year, no matter what the income from the levy?
Yes.
There is now urgency to finding a source of revenue for the industry. I presume the Minister is looking at what is happening in other countries. It would be wonderful if we could capture it but the question is how to do so.
No country has fully found a way to manage this. We are grappling with new technology. Someone suggested to me that there are new products coming out that will make this matter even more complex. Nevertheless we must deal with it. The means to address this is within the industry, which knows what is going on and is in a position to manage it. Fairness across the industry would resolve this matter.
44 Deputy Olivia Mitchell asked the Minister for Arts, Sport and Tourism if he will report the progress made on the construction of the new national theatre; and if he will make a statement on the matter. [8856/09]
Progress is ongoing on the new national theatre project. The project is complex and there is a myriad of technical, procedural and legal factors to address. The successful delivery of the project is a priority for the Department and Government in the programme for Government and the national development plan.
An international design competition was one of the conditions of the offer of the site by the Dublin Docklands Development Authority. A project team, chaired by the Office of Public Works and comprising representatives of the same agencies as the steering group, has also been established and has met on 21 occasions. It is overseeing the executive and procedural arrangements for holding the international design competition and advancing the PPP process. A jury for the international design competition has also been appointed.
The Office of Public Works is also working on drafting output specifications in collaboration with the Department, the Abbey Theatre and the National Development Finance Agency. Technical, legal, insurance and financial advisers have been appointed to guide and advise the interagency teams in the procurement of this epochal and crucial project. A theatre consultant and acoustic consultant have also been appointed. Furthermore, a process auditor is in place in accordance with Department of Finance guidelines. Site investigative works have been also undertaken. When a winning design has been chosen, the National Development Finance Agency will oversee the PPP procurement process in accordance with PPP guidelines. I am confident that when the international design competition is complete, we will have a world class design for a new iconic landmark building for the city, and the new quayside theatre will be a dynamic structure reflecting Dublin's reputation as a global capital of theatre, culture and creativity.
The market is well aware that this project is on the way and the international competition for the design of the theatre should get under way formally in the very near future.
In view of the shock to the Minister's system yesterday, I want to go easy on him today. The truth is that this design competition has been in gestation for years. It is not as if the Minister is designing the building as it is only the guidelines of a competition for somebody to design the building. It is incredible that it could possibly take this long.
How much has been spent so far on the various consultants? The Minister has provided lists of various consultants who have been appointed to prepare for the design competition. Is the intention to proceed with the new Abbey with all speed or has this been put on the long finger indefinitely? If it is intended to proceed, will it be in the way originally envisaged, in that it would be designed, financed and maintained by way of PPP? Is it realistic to expect that somebody will come in and build such a project in this uncertain climate? That question stands over all PPPs.
As it is a PPP, there is a great hunger for projects.
What about the financing?
It is possible because it is a guaranteed PPP scheme. On the gestation, the Deputy knows the history as well as I, with all the different locations, ideas etc.
I am referring to the period since we knew of the location and the announcement of the decision.
The decision to proceed was taken in autumn 2006. There have been 21 meetings since and from the time I came to this Department, I have been aware of the complexities in terms of technical specifications, the arguments and substantial differing views of what the project should comprise. Much of that has been washed out and resolved through the system, and that is why we have moved to a position where we can clearly move forward. The final work is being done at the moment.
The OPW, with which the Deputy is familiar, is superb at PPPs and managing this type of project, working with the other agencies. It has done great work in this area. As far as I understand, everybody has signed off on the specifications, and the arguments and discussions on what, where, how, etc., have been resolved. As I indicated in my initial reply, we are now into a phase where we can move the project to the public domain.
I remind the Minister that the time before I last brought this up was before the summer and he told me the competition would be announced before summer 2008. It still has not happened. Will the Minister answer the question of what has been spent so far?
I have consulted my notes but I do not have that figure before me. I will try to get it for the Deputy.
I thank the Minister.
I do not have a problem with that.
45 Deputy Olivia Mitchell asked the Minister for Arts, Sport and Tourism his views on the result of the promised benchmarking of the National Aquatic Centre’s performance vis-à-vis other similar facilities; and if he will make a statement on the matter. [8671/09]
The National Aquatic Centre is operated by NSCDA (Operations) Limited, a subsidiary company of the National Sports Campus Development Authority. All day-to-day operations of the National Aquatic Centre are a matter for the authority and the operations company.
In parallel with overseeing the ongoing operation, in 2008 the authority undertook an international benchmarking exercise comparing the performance of the centre against other equivalent facilities around the world. This work was completed last year and has been evaluated both by the authority and by my officials. Utilising a model of best international practice, the report provides a forecast for trading over the next five years and through this process, identifies the need for an annual subsidy. In general terms, the clear message is that all publicly accessible 50 metre indoor pools receive direct or indirect subsidies from governments, local authorities, sports councils, universities and other like organisations. In this regard, therefore the performance of the National Aquatic Centre is not dissimilar to other like facilities.
The Minister knows my views on this facility. In 2007, the centre received a subsidy of €1.8 million, in 2008 it received a subsidy of €1 million and there is an overhang rates bill of €600,000 that has not been paid and is due. I discovered since we spoke about this last that as a result of a benchmarking process, the centre is entitled to an annual subsidy of €1 million, so I presume it is built into the budget for the coming year and thereafter.
It is somewhat convenient that after the event we have discovered that a subsidy will be required. The centre was built on the basis in the PricewaterhouseCoopers feasibility study that there would be an operating profit of between €500,000 and just over €2 million annually. Did PricewaterhouseCoopers do the benchmarking or was it some other body? Will it be sued for the bad advice given or is there any comeback now that we have built this facility?
I do not know what the centre was benchmarked against but in Abbotstown there is a leisure facility as well as the 50 metre pool in addition to the other facilities. It is a wonderful centre but I have visited it at peak times and there were approximately 30 people in the water. It is grossly under-used, which makes me think it is being grossly mismanaged. The Minister must act on this. While I do not want to criticise him, there is a serious problem at the National Aquatic Centre.
I am happy to deal with the issue. The international benchmarking report was prepared by Mazars——
What about the PricewaterhouseCoopers report, if it gave the advice in the first place?
I cannot tell the Deputy as I did not hire it. The history of the aquatic centre has been unhappy but I give credit to the chairman, Mr. Dan Flinter, and the group there currently, which has done a remarkable job since it took it over. The numbers have been brought back from approximately 350,000 and the group has addressed a raft of problems in the way the facility was being run. There are now over 700,000 using the facilities and that number is growing. They are the sorts of numbers that the Deputy and I would wish to see.
There is a significant number of school children, etc., getting training and all means possible are being used to increase numbers. It is clear that a similar facility on any international scale is in receipt of a subsidy. There is a similar one in Australia, which has a state subsidy of €2 million per year. With a subsidy of €1 million, the facility is very much at the lower end of the scale in that regard. This is because there are leisure facilities and income is being generated.
The new group has done remarkable job in reducing energy costs and that is reflected in the decreasing subsidy. It brought the best people in to advise on all aspects of the issue. I have had numerous meetings with the chairman and there is a level of frustration. There is anecdotal evidence that appears every now and again from one or two sources that seems to gather a bit of momentum regarding how the place is being run.
I have examined this facility as it is so important, both nationally and internationally. We want to maximise the use of it and this has now been done. Those involved in running it would accept that as they have resolved many of the significant problems regarding personnel, etc. There is a new platform on which to work and the facility will probably get that subsidy.
This has the potential to become a black hole. I am not going on anecdotal evidence as I went out myself to look at the facility. There were no more than 30 people in the facility, although the leisure facilities are probably relatively well used. The aquatic centre — the pool, diving area and lessons — is grossly under-used, no matter what the Minister is being told.
I agree that we must maximise this world class facility. We should use it.
