Dáil Éireann debate -
Thursday, 8 Dec 1977

Vol. 302 No. 7

Vote 43: Tourism and Transport.

Minister for Tourism and Transport (Mr. Faulkner)

I move:

That a supplementary sum not exceeding £4,250,000 be granted to defray the charge which will come in course of payment during the year ending on the 31st day of December, 1977, for the salaries and expenses of the Office of the Minister for Tourism and Transport, including certain services administered by that Office, and for payment of certain subsidies and sundry grants-in-aid."

This Supplementary Estimate results from excesses of £5,118,000 on five subheads offset to some degree by a total saving of £868,000 on other subheads.

This Supplementary Estimate provides £388,000 for certain improvements in the wages, salaries and allowances payable to the staff of approximately 1,200 employed in my Department. It includes the cost of implementing in the current year the first and second phases of the National Agreement, 1977 which is payable to all staff. Certain of the Departmental grades in the aviation sector will receive increases due under the first of three phases in the implementation of the salary recommendations of the Aviation Grades commission of inquiry. Provision is also made for the increases in the social welfare employers' contribution and the final steps in the implementation of equal pay.

This sum would otherwise have been provided from the Vote for remuneration.

The subvention provided for C.I.E. in the 1977 Estimates was £30 million and it is now estimated that this provision will be inadequate to the extent of £3.8 million to meet CIE's deficit on subventible activities in the current financial year.

The main reason for the inadequacy of the subvention provision of £30 million is the National Wage Agreement for which provision was not made in the Board's last application for an increase in fares and rates and which will cost C.I.E. an additional £3.5 million in 1977. The balance of the additional subvention arises mainly because of a reduction in anticipated revenue from rail freight traffic.

The provision of £3.8 million in the Supplementary Estimate will bring CIE's total subvention for 1977 to £33.8 million, an increase of £1.9 million on the subvention of £31.9 million provided in 1976. The sum of £33.8 million includes approximately £27.4 million for railway operations, £5.3 million for Dublin city bus services and £600,000 for provincial bus services; the balance is for the canals and the Galway/Aran ferry services. No subvention is provided for the board's road freight services which must be operated on a commercial basis.

The original provision in the Estimates for harbour grants was £719,000 and the additional £626,000 now sought is required for the Cork harbour development plan. The plan consists of the deepening and widening of the navigation channel at the harbour entrance, the deepening of the channel at the Spit Bar and the provision of a new harbour with deepwater facilities at Ringaskiddy.

The dredging of the navigation channel will ease present restrictions on the movement of vessels at the harbour entrance and will provide access for large vessels to the proposed new harbour at Ringaskiddy to Nitrigin Éireann Teoranta at Marino Point and for large tankers at Whitegate refinery.

The harbour works should be completed in 1980 at a cost currently estimated at £16.5 million. The carrying out of work on the Plan has created 98 additional jobs of limited duration in the current year.

When the last Estimates were being drawn up in late 1976, the outcome of the talks on the 1977 National Wage Agreement was not known and consequently it was decided not to include provision in the Transport and Power Vote—as it was then—in respect of the Agreement. The cost of meeting the standard increase under the agreement for 1977 for the Bord Fáilte head office staff and staff of the Regional Tourism Organisations will be £54,000 and it is now necessary to make appropriate provision for this.

I am availing of this opportunity to get Dáil approval for an additional capital allocation of £250,000 for Bord Fáilte in discharge of a commitment given after the original estimate had been finalised. This money is being used for development projects spread throughout the country and with a high labour content. At present the board have work on hands on a number of projects in different centres throughout the country giving employment of limited duration to 180 people.

The total amount of the increased expenditure is £5,118,000 but there is an offset of £868,000 in savings on other subheads. Accordingly the net amount required is £4,250,000.

I recommend the Supplementary Estimate to the House.

Mr. Enright

This is my first opportunity formally to speak on the Department of Tourism and Transport and I therefore use it to wish the Minister health, success and happiness during his term of office. On behalf of the party for which I am spokesman I can assure him of our co-operation and help at all times.

The forecast earlier in the year for our takings from overseas tourists in 1977 was £219 million, and it was forecast that £70 million would be realised from home holidaymakers. I believe that not only will these targets be achieved as forecast by Bord Fáilte but that the sums will be greater. I hope the Minister will provide the necessary finance to maintain that situation.

I wonder if the Minister is aware of the situation in this industry on the possibility of new jobs being created. Tourism here is still in its infancy and there is tremendous scope for development. Yet we cannot be happy with the position that obtains. Every country in the world is competing actively against us and we there-fore must be generous in our promotion efforts. There is a number of disquieting features about the figures published.

For instance, there has been a serious fall-off in tourist numbers from Britain since 1971-72. Part of this can be attributed to the situation in the North of Ireland. In 1973 we had 843,000 tourists from Britain and by 1976 that had dropped to 785,000. We all know there is a tremendous amount of goodwill among the people of Britain for the type of holiday we can provide—there is affinity between us in regard to food, drink and our general way of life. As well, there are many Irish families living in Britain who are delighted to come back for holidays. I fear that Bord Fáilte are not giving sufficient attention to Irish people living in Britain and the potential there as far as tourism is concerned.

Bord Fáilte are dissatisfied with our all the year round figures for bed occupancy. In 1975 there was only 37 per cent bed occupancy in a 12-month period. It is important that this be improved and, indeed, reversed. Bord Fáilte also tell us that there has been a drop-off in the use of hotels, guesthouses, country homes and so on. During 1976, 19 guesthouses went out of business and there was a drop of 137 bed occupancies. There was a drop of 46 per cent in the figures for accommodation offered by way of town homes and a drop of 270 bedroom occupancies in hotels.

I suggest that the overall situation means that hotel and guesthouse owners have not been able to reinvest, and I urge the Minister to add such owners to the list of householders who do not pay rates. I make this request sincerely because of the serious situation in which they are in regard to bed occupancy, and I can assure the Minister of the goodwill of all Deputies on this side in this regard. Hotels and guesthouses must be given an opportunity to reinvest.

I hope we will have an opportunity to have a fuller debate on tourism at a later stage. Today we are running through the Estimates, and that is not satisfactory.

Irish holidays are different. They are unique because of our way of life, our traditions and our culture. I would ask the Minister to prepare a properly planned approach to tourist development in the future. Here, I would quote one small item from an article in the Irish Banking Review of September, 1977. It is at page 17.

...it is claimed that in France tourism has given rise to more new urban development than industry has done.

Here, there is tremendous tourism development. This is an industry that can affect the culture of a particular area as a result of particular groups coming in to visit the area. We must ensure that the way of life of the inhabitants in that area is not affected. We must not kill the goose that lays the golden egg. Over a period we must extract the eggs at regular intervals but we must always ensure that these areas do not become Blackpools or anything else. We want to ensure the maximum benefit from tourism development. The graph has been rising and will, I hope, continue to rise.

Recently I tabled a question in regard to canal development. Subsequently I raised the same question on the adjournment. Inland waterway cruising is developing rapidly. There have been tremendous improvements in cruising on the Shannon. In 1976 13,000 people used the Shannon. It is estimated the figure will be 18,500 in 1979. Portion of the Ballyconnell canal between Northern Ireland and the South is no longer navigable. I would hope this canal would be developed to permit freedom of passage from the North to the South. This canal was opened way back in 1860. It has great potential. I would ask the Taoiseach and the Minister and the Government to do everything possible to develop this canal. It has an enormous potential.

Mr. O'Donnell

I wish to raise a few points in connection with the Minister's brief. This Supplementary Estimate covers a vast field—tourism, transport, harbour development, road and rail transport, and so on. The Minister referred to an increased subvention to CIE of £3.5 million which will bring the total State subvention to the enormously high figure of £33.5 million. He said:

The balance of the additional subvention arises mainly because of a reduction in anticipated revenue from rail freight traffic.

That represents an alarming and most undesirable trend. It has serious implications in relation to road transport and to our road network. I am disappointed to learn there will be a reduction in the anticipated revenue from rail freight traffic. I am not attempting to apportion blame or anything like that but there are very serious implications here. This is an area at which CIE will have to look much more vigorously. If rail freight traffic is on the decline it is obvious there must be a corresponding increase in the volume of heavy traffic on the roads. I had the privilege of being spokesman on transport and I visited all six EEC countries to see how the railways there operated and how the roads were used. Top priority on the part of the railway companies and governments in Western Europe was maximum diver sion of freight traffic from the roads to the rail. I cannot understand what is happening here. I know the advantage of door-to-door transport and the growth in owner-owned vehicles and so on but I would like the Minister to urge on CIE the possibility of concentrating attention on modernising and streamlining their rail section with a view to attracting the maximum amount of freight off the roads to the rail.

My second point arises in regard to the subvention for the Galway-Aran service. Bhí poinnte ag an Aire nuair a bhí sé ina Rúnaí Parlaiminte don Ghaeltacht faoin gcóras taistil idir Gaillimh agus Oileáin Árainn. Bhí poinnte agamsa ar feadh ceithre bliana ar an rud céanna. Bhí fonn mór ormsa cursaí cumarsáide agus iompair idir na hoileáin agus an mórthír a fheabhsú. Cé go bhfuil cabhair le fáil ó Roinn na Gaeltachta maidir leis an bád i gcomhair Oileán Cléire—agus tá seirbhísí ann anois i gcuid dena hoileáin—mar sin féin ó thaobh prionsiobail de, 'sé mo thuairim, agus tá mé cinnte go n-aontóidh an tAire liom, go bhfuil na háiseanna céanna tuillte ag muintir na noileán is atá ag muintir an mhórthír. Cuir i gcas, tá £35,000,000 á thabhairt ag an Stát do CIE agus níl ach beagáinín den suim sin á thabhairt chun córas taistil ceart a chur ar fáil do mhuintir na noileán, sé sin, ó Ghaillimh go dtí Oileáin Árainn. Os rud é go bhfuil suim i leiith ag an Aire ins an rud seo, tá sé in am anois go bhféachfadh sé isteach inti agus go ndéanfadh sé scrúdú. Sílim go bhfuil CIE freagarthach cabhrú leis an Aire chun cúrsaí taistil idir an mórthír agus gach oileán, na hoileáin Ghaeltachta agus na hoileáin Ghalltachta, a fheabhsú agus córas a bheidh oiriúnach don lá atá inniú ann a thabhairt dóibh. An sean-bhád sin atá mar chóras idir Gaillimh agus na hoileáin níl sé féiliúnach mar tá tionscail agus monarcha á dtógáil in Oileáin Árainn chun forbairt turasóireachta agus tá súil agam go mbeidh bád farantóireachta—a roll-on roll-off service to replace the present rather antiquated service.

There is a subvention here for harbours. Harbour development is a vitally important area. I hope the Minister will tackle at some stage the question of formulating and implementing a national ports policy. The additional subvention is in respect of development in Cork Harbour. I do not want to be parochial, but the time has come when we must take a global look at the question of harbour development and the implementation of a ports policy. Over the years, irrespective of what Government were in power, there were proposals and discussions and hopes were raised that something would be done to exploit the greatest under-developed national asset in the country—the Shannon estuary. A Bill was ready to be put before the House earlier this year to set up a Shannon estuary authority. Some weeks ago I asked the Minister in the Dáil whether he proposes to proceed with this legislation and he said that he had not examined it. I urge on the Minister the importance——

An Leas-Cheann Comhairle

I am sorry, we cannot discuss this.

Mr. O'Donnell

I would urge the Minister to look at this and to bring in the legislation as soon as possible.

Mr. McMahon

I thank you for letting me in. I do not want to move in on the Minister's time but he will have more time than most other Ministers today.

I note that the Minister is now asking the House to provide extra finance for public transport. In County Dublin public transport has not kept pace with development and I do not know if the Minister realises this. In the area stretching south and west from the city there are vast new developments and housing estates and the traffic situation in these areas is absolutely chaotic. I believe that CIE could do a lot more to relieve this terrible congestion in the mornings and evenings. Many people are now using their cars who formerly used public transport. They find that they can reach the city just as easily in their own cars. This is a pity and causes many parking problems in the city. People would be more ready to use public transport if CIE were prepared to give the service. It is not unusual for would-be travellers to be left on the roads and to have to walk half the journey home before getting public transport.

I am not satisfied that CIE are doing enough to relieve congestion. I would ask the Minister to urge the powers that be in CIE to have a look at this whole area. I know they have their difficulties. When I was in touch with them quite recently they were experiencing extreme difficulty in crossing two bridges on the south side, at Harold's Cross and Templeogue. Despite that, they have not changed the routes. Another bridge has been opened across the Dodder and they have not availed of it.

The linking of the southern and western roads right across to Dún Laoghaire has caused tremendous annoyance to people living along that route. Not only has there been an increase in traffic but the roll-on roll-off traffic which formerly came through the North Wall is now crossing through Walkinstown and Churchtown and on through Dún Laoghaire. I do not know if this traffic can be diverted through the North Wall but perhaps the Minister would consider this.

Many prospective foreign visitors to this country were afraid to come because of the troubles in the North. This was brought home to us yesterday but I believe that this is no longer a problem for the would-be tourist. A new fear relates to the escalation of armed robbery south of the Border. I would hope that the Minister would be vocal at the Cabinet table in urging his colleagues who have direct responsibility in this field to take more effective action with regard to these armed robberies.

An Leas-Cheann Comhairle

The Deputy can mention them in passing as they affect the tourist trade but I would suggest that he should not continue along that line.

Mr. McMahon

I am mentioning this matter in connection with the tourist figures. I believe that many prospective visitors are looking at what is happening south of the Border and the Government must be seen to take adequate steps to control the situation. The tremendous escalation in recent times is worrying to people here and to those who would consider visiting the country. This is a pity. Those interested in tourism are quite happy with the progress made during the past two years. Tourism is again on the upward trend and it is returning to the position prior to 1969. It is a pity that it should be affected in the way I have outlined. I would urge the Minister to be vocal at Cabinet level and I hope that he is not happy with the steps taken so far to alleviate the fears of prospective visitors.

Minister for Tourism and Transport (Mr. Faulkner)

I should like to thank Deputy Enright for his good wishes. They are appreciated. In turn, I congratulate him on his appointment as spokesman on tourism for his party.

As Deputies probably know, especially from the audio-visual presentation by Bord Fáilte to Members of the Oireachtas yesterday, tourism is now showing signs of positive growth after some years in the doldrums. This will be a satisfying year and our targets will be met and possibly exceeded in many areas. We can expect that further growth will be achieved through more intensive marketing programmes by Bord Fáilte and greater efforts by all of the constituent elements in the industry with the Government providing the necessary support and backing. We recognise the importance of the tourist industry. It provides very considerable employment. It has been said here, and is recognised by me, that there is scope for very considerable development. Competition has become keener. Vigorous action is required by the various bodies and organisations involved to ensure that we get the benefit from the increased numbers of tourists.

I feel that in the coming year we should see a further improvement. I regret, the same as Deputy Enright, that there was a fall off in tourists from Britain starting around 1971 or 1972. This was due to a number of factors, the economic recession in Britain, the troubles in Northern Ireland and inflation. I emphasise that Britain remains our most important single market. I might add that it is given a high priority by Bord Fáilte in their marketing efforts. Special attention is paid, as the Deputy suggested, to those with Irish connections. We have got to concentrate also on those who have not got any ties with the country if we are to develop the industry as it might be developed while at the same time continuing to give particular attention to the ethnic group.

In 1978 I am confident we will see a substantial increase in the number of tourists coming from Britain. I found it an encouraging sign that for the first time this year people who had not got Irish connections came in much greater numbers than they had been. They are the best propagandists we have. When they go home they can point out to their neighbours who were fearful of coming here that they had no need to be fearful. This giving of knowledge through word of mouth is possibly the best type of publicity we can have.

Deputy Enright said that the bed occupancy over the whole period was 37 per cent. I am sure the Deputy will agree that because of the nature of tourism it is difficult to get a high bed occupancy over the full year. Bord Fáilte are making every effort to stimulate traffic outside the peak period through festivals, conferences, sporting events and so forth. This was clearly identified yesterday in their presentation. They are doing everything possible to extend the season. The employment premium scheme has been extended to tourism, which will be a help. There are grant schemes for renewals and improvements in hotels to help them keep up standards.

Mr. Enright

There is a fear that a lot of guesthouse owners will get out of the business because of the rates.

Mr. Faulkner

That is not a matter for which I have direct responsibility. Deputy O'Donnell spoke about CIE. I am sure he will accept that most of the losses there resulted from increases in salaries and wages. He referred to the loss in freight. As far as I can ascertain the freight traffic was affected in 1977 by the slow recovery in the economy and by the transfer of traffic to competitors. We will have to look at the competitive aspect of this. The rail freight system has been and will continue to be modernised. Every effort is being made by CIE to modernise it to the extent that it will become more economic. I have just returned from a meeting of European Ministers of Transport. I can tell Deputies that the financial situation of railways in all of the European countries involved is a major concern.

Mr. O'Donnell

I agree.

Mr. Faulkner

The problem in relation to railways, which the Deputy accepts, are not exclusive to this country. I hope that, with the continuing effort made by CIE and an improvement in their financial situation, the improvements that are beginning to appear this year will continue.

Ba mhaith liom a rá leis an Teachta O'Donnell mar gheall ar an méid a dúirt sé i dtaobh córas iompair go dtí na hoileáin go n-aontaím go bhfuil sé fíor-thabhachtach go mbeadh na háiseanna taistil céanna ag muintir na n-oileán agus atá ag muintir an mhórthír chomh fada agus is féidir é.

Mr. O'Donnell

Cad faoi an Shannon Estuary?

An Leas-Cheann Comhairle

The Shannon Estuary is not in order.

Vote put and agreed to.