I move:
That a supplementary sum not exceeding £214,000 be granted to defray the charge which will come in course of payment during the year ending on the 31st day of March, 1972, 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 main purpose of the Supplementary Estimate is to provide an additional £350,000 for Bord Fáilte for interest grants on loans raised by developers for accommodation and other tourist projects. It will bring the total allocation for this purpose to £1,080,000 for 1971-72 and will enable the board to meet in full claims due for interest grants in the current year. Interest grant funds are provided under subhead F1 of my Department's Vote and the additional £350,000 will bring the total for the subhead to £4,430,000.
The House is aware that the past three tourist seasons have been disappointing, mainly because of unrest in Northern Ireland. Earnings from tourism for 1971 were provisionally estimated by Bord Fáilte at £103.9 million. This is a modest increase on the 1970 figure of £99.1 million, but, when account is taken of the fall in the value of money, the 1971 figure represents a reduction of about 4 per cent. It is clear that in 1972 the tourist industry will continue to be affected even more seriously by the Northern Ireland situation.
The lack of growth in tourism revenue in the past few years has been felt by all tourism interests and particularly by hoteliers. Generally speaking, the absence of traffic growth meant that their revenue projectives were not achieved and some of them have found themselves in tight financial situations. I have been conscious of the implications of this situation and I have ensured that a high level of funds was made available through Bord Fáilte to enable them to undertake the necessary marketing activities so as to secure the best possible flow of tourist traffic.
Initially, the Government provided £6.23 million for Bord Fáilte's activities in the current year. This was increased by £1.25 million in October last in recognition of the industry's needs. The additional sum of £350,000 which I now propose to provide will bring the total to £7.83 million. One million pounds of the amount provided in October last was used to meet arrears of capital grants due to hoteliers. As a result, there are now no arrears of grant payments and grants on foot of commitments entered into by Bord Fáilte are being paid as they fall due. The additional £350,000 will clear the backlog in the case of interest grants.
The £7.83 million provided for tourism in the current year compares very favourably with £5.55 million last year, £4.35 million in 1968-69 and £0.58 million in 1960-61. This is a very high level of support for the tourist industry and was achieved because my colleagues in the Government have accepted my view about the importance of the tourist industry.
As the additional £350,000 will go to meet interest payments due by hoteliers to the banks, it is not inappropriate that I should mention the contribution which banks and other lending institutions have made to the development of the tourist industry. Through their involvement it has been possible for developers to build up and improve our existing stock of good quality accommodation. This investment and the services which the banks continue to provide for holiday accommodation and tourism generally, are a sign of confidence in the soundness and long-term good prospects of the industry.
The troubles in the North have, of course, affected the direction of promotional efforts in the current year. As soon as marketing intelligence showed a reluctance on the part of British tourists to come to Ireland for holidays, Bord Fáilte stepped up considerably their promotional activities among Irish people in Britain and have been concentrating to a much greater extent on expanding the volume of ethnic traffic there. Among the special measures taken by the board were arrangements for some 250 special promotions for the January/March, 1972, period with the participation of 100 trade representatives from Ireland. In addition, teams of staff from the board's head office and the eight regional tourism organisations are undertaking promotional tours of Britain for the specific purpose of attracting groups and individuals to spend their holidays in Ireland this year. The ethnic orientated campaign is now well under way and will run for a period of at least four months.
Bord Fáilte have also increased their activities in relation to ethnic traffic in North America. While the North American market is difficult to assess at present, the general indications are that traffic from North America during 1972 will not differ significantly from last year. Bord Fáilte have also extended and intensified their marketing and promotional activities in Europe. In addition to increasing the level of activity in France and Germany, where they have been operating for a number of years, they are extending their activities into a number of other countries, including Belgium, the Netherlands, Switzerland and Italy. The level of bookings from Europe is reported to be higher than last year and Bord Fáilte forecast a 5 per cent increase in overall traffic from that area this year.
Bord Fáilte in association with the regional tourism organisations and the other tourism interests have also mounted a major home holidays campaign. The board have told me that the campaign has so far drawn a significant number of inquiries to the regional tourism offices for information on Irish holiday programmes. The indications are that greater numbers of Irish people are likely to take their main holidays in Ireland this year. Annual expenditure by Irish people making visits abroad amounts to more than £40 million a year. Ordinarily, this level of expenditure is understandable as tourist traffic is two way and the Irish, in common with other peoples, wish to use their improved earnings to enlarge their experience. We are, however, in an exceptional situation this year which has brought good patriotic reasons for Irish people to spend their holidays in Ireland in 1972. There is a very wide range of attractive holidays on offer, both for main holidays and for short off-season breaks. These represent very good value and cover such a variety as to cater for everybody's requirements.
Irish holidays by Irish people will guarantee employment in hotels and other sectors, will help to maintain our favourable balance of payments position on tourism account and will contribute to the maintenance of tourist plant so that the necessary volume of accommodation and facilities will be there to meet the growth which I know will come as soon as current difficulties have passed. I am very optimistic about the home holidays campaign as I believe that Irish people will show their patriotism in a very positive way this year by holidaying in Ireland. I am sure that Deputies on all sides of the House are using their influence to support this important campaign.
I should like to be in a position to forecast good returns for the 1972 tourist season. This, however, would not be realistic. We are facing a difficult year and we cannot expect a recovery of previous growth patterns until significant progress is evident in the Northern Ireland situation. In the meantime the programme of marketing which I have referred to is being supported and will continue to be supported by the highest ever level of Exchequer funds for tourism. In recognition of the problems of the hotel industry I have already taken steps to meet all capital grant payments due to hoteliers and I am now proposing to provide funds to clear all interest grants. The adoption of this Supplementary Estimate will therefore mean that all State commitments to the hotel industry will have been discharged.
I am availing of this opportunity to provide £164,000 for increases in remuneration in my Department. This arises from the 13th round increase and other increases granted to the General Civil Service and other grades.
Savings in the Vote amounting to £300,000 have been taken into consideration, thus reducing the amount required in this Supplementary Estimate to £214,000.
I recommend this Supplementary Estimate to the House.