I move:
That a supplementary sum not exceeding £52,420 be granted to defray the charge which will come in course of payment during the year ending on 31st day of March, 1963, for the Salaries and Expenses of the Office of the Minister for Transport and Power including certain Services administered by that office, and for payment of sundry Grants-in-Aid.
The sums provided to finance the activities of Bord Fáilte Éireann in the current year are £725,000 for administration and general purposes, £174,000 for resort development and £160,000 for the payment of grants towards the development of holiday accommodation. I am now proposing that an additional sum of £30,456 be made available to the Board for administration and general purposes and that the provision for holiday accommodation grants be increased by £102,989, making in all an extra £133,445. It has been found possible to set off against this sum savings of £81,025 on resort development, leaving the net sum required at £52,420.
Until 1961-62 Bord Fáilte's annual grant-in-aid for administration and general purposes was limited by statute to £500,000. The Tourist Traffic Act of 1961, which was enacted in August, 1961, provided instead that the general activities of the Board be financed from a global fund of £5 million, the purpose being to allow increased expenditure on tourism for a limited period. The present proposals are in harmony with this objective.
About half of the extra £30,000 for the Board's general activities is to be allotted in connection with a new scheme of hotel staff recruitment and training which has been drawn up by Bord Fáilte in consultation with the interests concerned following a joint study of the problem by a representative working group. The shortage of qualified staff has been a serious problem for the hotel industry in recent years and measures to ensure increased numbers of trained personnel are essential to meet the needs of new and extended hotels and to raise standards of service generally.
Under the new proposals, matters pertaining to staff recruitment and training have been entrusted to a permanent representative organisation established on 1st December, 1962, and entitled the Council for Education, Recruitment and Training (CERT) in the Hotel and Catering Trade. One of the objects of the Council will be to increase the numbers being trained from 240 each year at present to about 1,300 per annum. The expanded programme will cost about £90,000 each year and this cost will be shared by the Department of Education, through vocational education authorities, the hotel industry, the trade union concerned, Bord Fáilte Éireann and income from students' fees. Bord Fáilte were already spending sums varying between £15,000 and £20,000 each year on staff training activities and the establishment of the new Council last December has created a requirement for the additional sum of approximately £16,500 in the current year. There is no ready solution to the immediate problem of staff shortages in the hotel industry but I am satisfied that in CERT we have a satisfactory basis for a long term approach to the problem.
The balance of the £30,000 is to be devoted to the payment of interest grants on loans raised by hoteliers and guest house proprietors for improvement and development work. This reflects the acceleration of the hotel expansion and improvement programme which also gives rise to the requirement of nearly £103,000 for grants for the development of holiday accommodation under Subhead F3.
The grant schemes financed from this subhead are the schemes for new hotel bedrooms and general hotel improvement work and the recently introduced schemes for staff accommodation and for guest entertainment facilities. The Bord Fáilte grants cover only 20 per cent. of the cost of eligible works and the Board's expenditure is, therefore, associated with a much higher investment by the hotel industry itself. Over £1 million was invested in the hotel industry in each of the years 1960, 1961 and 1962 and the amounts being spent on hotel works due for completion this year are of the order of £4 million. When the grant schemes were being introduced Bord Fáilte set a target of 2,500 bedrooms by 1963. In fact, the number of extra rooms will amount to 3,200 by the end of this year of which some 1,400-1,500 will be in middle and lower grade hotels. The proposed spending in the current year of an extra £103,000 on holiday accommodation grants will exhaust the £500,000 fund provided for this purpose under Section 2 of the Tourist Traffic Act of 1959, and I hope shortly to introduce a Bill for the purpose of authorising an increase in the fund to provide for the continuation of the grant schemes.
Deputies will have noted that each of the purposes for which moneys are now sought reflects the growth of our hotel industry and a very welcome increase in opportunities for employment in that industry. I should state that up to now the response by middle price hotels to the offer of improvement grants has been disappointing. Judging by those who have satisfactorily extended their premises the incentives which have been offered through Bord Fáilte should make extension and improvement well worth while. Bord Fáilte has been undertaking a special survey of the position and a great deal of the responsibility for growth depends on such matters as group booking facilities, more private promotion and other factors.
I am glad to say that CERT will interest itself not only in the numbers recruited but in general questions of staff welfare and it will be in a position to make recommendations to the industry on the conditions of employment which will be required to secure and retain personnel. I have already mentioned the grant scheme for the improvement of staff accommodation in hotels which I authorised Bord Fáilte to introduce last year. There is, therefore, a general movement towards increased employment and improved working conditions in the hotel industry with appreciable financial support from the State in all the elements involved in that movement.
I mentioned earlier that there would be a saving of about £80,000 on resort development. I think I should make it clear that this saving does not indicate any cutback in expenditure on this important work; in fact, expenditure this year will be about 50 per cent above the level of the previous year. Deputies will recall that a fund of £1 million was provided under the Tourist Traffic Act of 1959 for the development of major tourist resorts. Expenditure from this fund up to the end of the current year will be of the order of £200,000. It was expected that the complete execution of the scheme of resort development might take up to ten years. The execution of the scheme has been entrusted to Bord Fáilte and, having regard to the fact that in the earlier years the Board have had to devote a great deal of time to the formulation and planning, in conjunction with local interests, of suitable development projects, I do not consider the rate of spending to date to be unsatisfactory. I am, indeed, advised by the Board that they expect that the £1 million fund will be exhausted well in advance of the ten year period.
Tourism was extensively debated when the Estimate for my Department was taken in November-December last and there will be further opportunities for debate when the Bill which I have already mentioned comes before the Oireachtas in a short time. I do not, therefore, propose to take up time on this occasion with general questions. I confidently recommend the Supplementary Estimate to the House.