I appreciate what I feel has been a worthwhile discussion on the Bill. It underlines the fact that Deputies could appreciate the vital importance of the tourist industry to the economy. Before replying to specific points I wish to emphasise again that this Bill is a declaration of the Government's confidence in the industry and in its future. The industry has been faced with problem after problem in the past year but with the quick and effective assistance which the State and Bord Fáilte have provided it has already rallied. I am re-inforced in my confidence by the overwhelming interest in Ireland which was shown during my recent promotional visit to Britain, Germany and the Netherlands. There is a very strong likelihood that in the case of the latter two countries we shall improve on our 1978 performance. It will be a tougher job in Britain but Bord Fáilte are engaged in an all-out effort in that market and in Northern Ireland and in the home market and there is every reason to hope we may yet attain overall equality with 1978 figures, which were a record. With this confidence and with the peak period only now beginning I see a profound need for an attitude which will inspire the industry in its efforts to secure a turnabout on the problems which faced it in May and June.
It is no help and is damaging to tourism to speak of disaster at every turn. We could have no better example of such damage than the BBC television programme mentioned in the debate on the previous occasion when this matter was before the Dáil. In view of the criticism of the earlier BBC broadcast I might in fairness record that on last Monday week, I think, BBC Northern Ireland produced a feature on tourism in this part of the country which was very fair and balanced and which I think would encourage people from the North to come here on holidays.
It is even worse to belittle or disparage without foundation the efforts being made to deal with the difficulties which tourism has been and is facing. It is on these criticisms that attention will be focussed and adverse publicity abroad generated. The tourist industry needs a positive approach to its problems which the Government along with Bord Fáilte have always offered. The situation is not as gloomy as many people would have us believe. I accept that the original expectations for this year are not likely to be reached and that some areas and sectors will not do as well as they did last year. But, putting the matter in perspective, we should remember that last year was our best year ever, so that if we attain or even approach last year's level, considering the variety of problems we face this year, that will be an achievement in itself.
With the fairly quick resumption of normal postal services and the special promotional measures being taken I am confident that the situation can be turned about and that the achievements of 1978 are rational targets for 1979. The introduction of the petrol voucher scheme for overseas and Northern Ireland tourists and the extra efforts Bord Fáilte have made to reassure motoring tourists, particularly in the UK, are beginning to have effect and traffic has begun to pick up again.
Deputy O'Keeffe referred to the Northern Ireland situation. When he raised the matter here I felt and still feel that the organisational aspect of that is very difficult. Nevertheless, having reconsidered it, I decided that I would adopt it. I regret that some sectors have been very hard hit especially those in the non-STD areas but I think it is also true that the reports of setbacks in particular areas or sectors do not make for a good assessment of the overall situation. To recover the ground lost the co-operation of all sectors that serve the industry is necessary. In this regard I am very concerned about the unofficial action by the oil company employees. I hope this will soon be ended so as not to undo the good results of the measures already taken.
Deputy Barry said that the Bill in effect is the right response to the wrong problem and that what is needed now is a massive injection of extra funds to enable Bord Fáilte to mount new promotional campaigns. The same point, I think, was made today by Deputy O'Keeffe. We need to intensify our promotional efforts and we have been doing so where it is most needed. In the past few weeks Bord Fáilte spent or committed £330,000 over and above their budgeted figures in the UK alone in getting the message across that we are still very much open for business. I am sure Deputies are also aware that Bord Fáilte have launched a campaign aimed at home holidays and the Northern Ireland market which Deputy Hegarty acknowledged are of considerable importance to us.
Bord Fáilte have a budget allocation of over £12 million, which is no mean sum, for promotion and marketing. The question of increasing that amount does not call for legislation. I assure Deputies that there is no question of the present promotional efforts being inhibited by any inadequacy of funds.
The situation in the United States market remains reasonably satisfactory considering all that has occurred, including events in the Us itself. Since the beginning of the year Americans have been reluctant to travel abroad, mainly on cost grounds, and this has affected all destinations as I discovered on my promotional tour. It affects Britain, Germany and Holland as well as Ireland. Problems of petrol supply in North America have contributed to this reluctance. Nevertheless, we hope that the US market will hold and that we will maintain or get at least close to last year's levels.
Now that we are coming to the peak season, the most pressing need is for an all out effort to encourage tourists to travel to Ireland. During my promotional trip in Britain, the Netherlands and Germany I spoke to the press, radio, television, travel and transport trades and representatives of the Irish community, and gave them the assurance that Ireland is the place this year for holidays. This trip which I took was keyed into a major new campaign which Bord Fáilte and the carriers have launched to capture traffic for the peak months. If we can turn things round during this critical period, last year's record levels are still attainable.
I should like to comment on press reports relating to British Rail advising people not to come to Ireland. This was raised by Deputy Barry. The reports do not represent the true picture. One statement made by a junior staff member without authority and out of line with his company's policy has been made an occasion for further alarm and weakening of confidence in the tourist industry here. The question was immediately taken up with British Rail. The remark was most unfortunate and does not do us any good, but it is totally out of keeping with British Rail policy on tourism in Ireland. British Rail demonstrated their full commitment to tourism in Ireland when they put the £20 million St. Columba on the Dún Laoghaire route in 1977. They will have a further vessel in the next year or two. I have a copy of a letter which the manager in the Republic of Ireland sent to the editor of The Cork Examiner on 6 July which states:
Our publicity programme for the development of our Republic of Ireland business will cost us in the region of £¾ million this year and I feel that such expenditure should be ample proof of our full commitment to the development of tourism in this country.
As regards the new scheme which the raising of the statutory limits heralds, I should make it clear that the sums made available under the Bill will be capital moneys and will be in addition to the current budget which Bord Fáilte get for promotional purposes. The record shows that we have increased Bord Fáilte funds appreciably over the last two years. Deputy Hegarty said the Bill does not provide for a sufficient level of capital expenditure on tourism compared to other public sector programmes, but that comparison is not valid. Despite the many prophets of doom, we are confident of maintaining growth in tourism and are aiming with new aids, to develop accommodation at the required rate without producing an over-supply. The working of the arrangement will be kept under review and can be further considered whenever the need arises.
Deputy Barry commented on the proposals. He was surprised that the Department should have a role in the design and development of a hotel grant scheme. He should recall from his own time that all capital schemes are subject to ministerial approval. This implies the examination of the need for and the adequacy of the schemes proposed to meet particular situations. When I studied this matter I had advice and a basic scheme drawn up by Bord Fáilte and also submissions from other sectors of industry. I took my decision on the basis of what I thought was the correct response.
The new scheme gives preference to hotel extensions because during the depression in the early seventies the accumulated reserves of the hotels were largely wiped out and confidence was shaken. The purpose is to restore confidence in the business. By providing extra bedroom accommodation by way of extension to existing hotels which already have the necessary kitchen, function rooms and other back-up facilities, the scheme can be implemented at lesser cost than in the construction of new hotels. It is quicker and easier to bring on an extension rather than a new construction.
Deputy Hegarty feared that since assistance is to be confined to bedrooms, lower standards would prevail in other areas of the hotel premises. I can assure the Deputy that the quality of the whole undertaking and its management will be taken into account in dealing with grant applications.
Deputy Quinn referred to the manner in which these grants are being made available. Under the old grants scheme there were suggestion that hotels were not always located in places where the greatest need existed and hotels in some cases were constructed in locations where it was difficult to achieve viable operations. There was also the point that when the tourism downturn was experienced a number of commitments had already been entered into with the result that we went through a period of overcapacity in the hotel industry. Under the new scheme the aim would be to provide extra rooms where demand arises. In this way we will have a controlled and regulated expansion to meet anticipated need. The scheme will be monitored to ensure that it is working satisfactorily. As I have said I will be prepared to consider adjustments in due course if experience suggests that that course should be adopted.
Deputy Hegarty asked why kitchens and other public areas were being excluded from the existing Bord Fáilte amenities and improvement scheme and the proposed new hotel bedroom scheme. With regard to the existing scheme I should like to state that about 67 per cent of all hotel bedrooms are fitted with a bath and the growing need is for rooms with a bath in all cases. It is important that we should adapt quickly to match this demand. We are aiming, therefore, to increase the proportion of bedrooms with a bath to 95 per cent by 1981. That is why we are putting the main emphasis of the existing scheme on bedrooms. That is in line with the aim of the new scheme, which is to increase the number of bedrooms of good marketable quality as quickly as possible.
With regard to the new scheme, I should like to state that the emphasis is on extensions where all back-up facilities such as the kitchen, function rooms and so on are already there and what is essentially needed is an extra block of bedrooms.
I was pleased to hear of the welcome given to the supplementary accommodation scheme by all speakers. I am extending the grant scheme to the country at large and doubling the size of the fund. I am also increasing the level of grants. I expect that that news will be welcomed by those involved in providing farmhouse and town-and-country home accommodation. I should mention that people who avail of this scheme undertake to make their premises available for receiving tourists for at least five years. The change will be good news for tour operators and organisers who are aware of the considerable demand by visitors for this type of accommodation, particularly the farmhouse variety which has developed into what one might term a prime tourist product in its own right.
I was also pleased to hear of the response given to my proposals to increase the level of capital spending on amenities and facilities for tourists. I was heartened by the remarks about the value of the scheme throughout the country. Sometimes there is criticism that the benefits of this spending are spread too thinly around the country so as not to have any real impact on the level of tourist activity. I do not accept that criticism. The infrastructural amenities and facilities provided are of the type and range which visitors and our own people are entitled to expect. Some of the facilities provided, such as the cabin cruisers and the horse-drawn caravans, are major tourist products in their own right and have a direct appeal. The non-commercial range of amenities and facilities, such as forest parks, encourage visitors to stop off for a few days during their visit. They also help to encourage repeat business.
With regard to the petrol voucher scheme, I should like to state that the introduction of this unique arrangement is an indication of the high priority which the Government attach to tourism. It demonstrates our concern that tourism in the areas most dependent on the motoring visitor would not suffer unduly. The open-minded and flexible approach of the Minister for Industry, Commerce and Energy, by my Department and Bord Fáilte did much to overcome the difficulties and to get the scheme working quickly and effectively. It is a pity that there has been a disposition, to put it mildly, to make damaging remarks about the scheme which are bound to be picked up and publicised abroad. The complaints I heard about the scheme related mainly to the first days of its operation but they have been substantially overcome and many voucher holders got supplies without using their vouchers. One rarely hears anything about that but, on the other hand, a single case where something unfortunately goes wrong is turned into a major issue. Not one complaint from a tourist has reached my Department in relation to the scheme. The response of tourists to the scheme, which comes through direct surveys and indirect reportage, was good and resulted in very good word of mouth publicity from visitors on their return home.
I have heard allegations that some filling stations not participating in this scheme are directing tourists to designated stations. Such behaviour would be surprising. Tourists are among the normal customers all over the country and in the tourist areas in particular I would have expected that filling stations would have had as big a stake in caring for tourists as either retail shops or providers of accommodation. I should like to congratulate those private individuals and local bodies who got together to ensure that tourists get supplies and I urge others to follow their example. I do not believe that there is a need to provide further outlets for these vouchers but, as Deputies have requested that I look into this matter, I will investigate it.
I should like to emphasise that very extensive arrangements were made to help the tourist industry overcome the problems associated with the postal dispute. As in the case of petrol supplies, some of these problems were overstated in a way which could not but damage our image abroad. Bord Fáilte tackled the problem vigorously and employed all their normal resources in communications, services and publicity to assist the industry at home to maintain contact with the market abroad. The board had considerable success in the efforts they made, particularly in relation to block bookings and to STD areas generally. I keenly appreciate, nevertheless, that there are sectors, particularly in the non-STD areas, where serious problems were encountered and where only limited help could be provided. I am aware that in some such cases hotel and guesthouse proprietors, by very commendable self-help, managed to maintain their market contacts and are now reaping the benefit in good bookings. Bord Fáilte have redeployed large sums from their budget for special advertising and mailing abroad to help cope with the difficulties and to produce effective counter publicity where we were getting at times adverse coverage in the media in other countries. This will continue and the board are planning further measures, in conjunction with the industry, to maximise the benefits from the peak season.
Deputy Corish quite rightly drew attention to the appalling litter problem. It will be recalled that on my initiative Bord Fáilte and private interests operated a campaign during May, at a cost of £212,000, which created a better awareness of the litter problem and helped to bring home to everybody the responsibility which we all share in this matter.
