asked the Minister for Transport and Power if the cash grant fund administered by Bord Fáilte is committed for the next three years; and if he will make a statement explaining the position.
Ceisteanna—Questions. Oral Answers. - Bord Fáilte Grants.
33.
Bord Fáilte administer a number of different grant schemes but I assume that the Deputy's question relates to the scheme of grants for the development of holiday accommodation.
Under this scheme Bord Fáilte offer grants as an incentive to developers to build, extend or improve accommodation for tourists. The total grant commitments arising for Bord Fáilte depend on the response of developers, and the rate at which expenditure falls due depends on the progress of development work and the satisfactory certification of the various jobs. Up to last year, the amount provided for grant payments each year proved sufficient for the purpose but in 1969-70 there was a rapid acceleration in the build-up of commitments with the result that the demand on the board for grant payments exceeded the sum of £1 million which had been voted for the purpose. This build-up was caused by various factors including the improvement of the incentives and the easing of credit restrictions in 1967, improved building techniques, which enabled projects to be carried out in a shorter time than had previously been the case, and generally a growing confidence in the hotel industry resulting from the significant expansion of tourism in recent years.
In order to deal with the situation which arose last year, I secured Dáil approval in December for a Supplementary Estimate for £500,000 bringing the total provision for 1969-70 to £1.5 million, almost double the previous year. This additional sum was used by Bord Fáilte to ease the most pressing cases but some commitments had to be carried forward to the current year. The provision to be voted this year will again be £1.5 million. This will require the raising of the present statutory limit in the Tourist Traffic Acts and I shall be introducing a Bill for that purpose within the next few weeks.
As I have explained, the rate at which commitments fall due is not directly under Bord Fáilte's control but the board have informed me that they have estimated that commitments arising in the course of the current year may exceed the provision in the Vote. In addition there are a considerable number of projects already approved by the board which will involve substantial grant expenditure over the next two years. I should explain, however, that the grant scheme is financed, not from a separate fund, but by way of annual grants-in-aid voted by the Dáil as part of my Department's Vote. The amounts to be voted for 1971-72 and 1972-73 have not yet been determined and it would not be correct, therefore, to say that the finances are committed for future years. However, having regard to the difficulty that has arisen over the past year, it would be clearly undesirable for Bord Fáilte to continue to enter into commitments for further grant payments and accordingly the board are not assuming any new grant commitments for holiday accommodation for the present. I intend to have discussions with Bord Fáilte about the position during the year and to keep the situation under close review so as to ensure the continuance of an adequate growth of accommodation related to the availability of finances and the needs of tourism.
Is the Minister aware that in the case of resort development Bord Fáilte during the past year have issued letters to local authorities indicating that the reason for refusal to pay grants is that the Government would not make the money available? They have said in plain terms "We cannot give you a grant because we cannot get it from the Government". Bord Fáilte are not hedging and, therefore, it is clearly a matter of Governmental responsibility.
I am not going to hedge. There are not unlimited funds available for this or any other purpose. A certain scale of priorities is necessary in regard to all projects for which Government expenditure is made available. This is one of the duties of the Government.
Why then create a false impression? Why do the board and the Minister's Department give the impression that grants are available, particularly for areas where there is local co-operation and the local authorities are interested, when in fact grants are not available except in the most meagre sums? Would the Minister not agree that a local authority are extremely fortunate to get a grant for resort development one year in five years? Is the Minister further aware that so far as the grants mentioned in this question are concerned, there is complete secrecy on this matter and we do not know where the money goes? To say the least about this kind of grant, there is so much secrecy surrounding the entire matter that it is a very shady business.
I am very anxious to have a greater degree of local participation in resort and tourist development generally. For that reason, I am having consultations with the Minister for Local Government with a view to enabling local authorities to furnish that greater degree of participation in sound financial contributions which, at the moment, they are precluded from doing.
I am calling Question No. 34.
I would ask the Minister to reply to a supplementary question, please. Is it not correct that the entire finances for the next three years for resort development are tied up and no further commitments can be entered into? Will the Minister give a direct answer to that question?
The question does not relate to resort development but to holiday accommodation.
The question refers to the cash grant fund but the Minister has referred in his reply to resort development. I am asking him, is it not correct that so far as Bord Fáilte are concerned, the entire amount of money available for the next three years has been committed?
The commitment for two years ahead relates to holiday accommodation. Resort development is a different matter.
The Minister has not answered the question. I have heard the question and I have listened to the reply. I am meeting Bord Fáilte——
We cannot have a discussion on this matter. I am calling Question No. 34.