asked the Minister for Tourism and Transport the role his Department are playing in the proposed transfer of tourism responsibilities from Bord Fáilte to SFADCo; if he has satisfied himself that there will be no job losses within the Shannonside staff; his views on whether the mid-west region's tourism interests will be best served by such a move in view of the fact that no additional funding is being provided to SFADCo for this additional responsibility; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Proposed Transfer of Tourism Responsibilities.
8.
Bord Fáilte and SFADCo, in consultation with the Board of Shannonside, are currently in the process of preparing for the formal transfer of tourism functions in the mid-west. The future of Shannonside staff is being dealt with in the context of these consultations.
My Department's objective is to ensure that the transfer is carried out with maximum efficiency and that there is a significant improvement in tourism promotion and development in the region. I am satisfied that the development of tourism in the mid-west region will be significantly enhanced by the proposed changes. Contrary to what the Deputy has stated, funds have been made available within SFADCo's allocation for 1988 to carry out their extended tourism remit.
SFADCo are at present also in consultation with the industry and local authorities in the region to ensure that present contributions towards the operative budget of Shannonside will be at least maintained, if not increased, under the new regime. In addition, SFADCo will have access to the considerable revenue generated from Shannonside's former commercial activities which are to be taken over by SFADCo as part of the transfer.
The Minister has not answered the question I have tabled. I have specifically asked him what is going on in the various organisations that are in negotiation at the moment. Is he satisfied that no jobs will be lost so far as the Shannonside staff are concerned? Will he also explain to the House why it was not he but the Minister for Industry and Commerce who, on August weekend last, made an announcement about this proposed transfer and why there was such haste and such behind-the-scenes activity without any prior consultations with the bodies involved? So far as the people in the area are concerned the position is quite unsatisfactory. Since August weekend no information has been given on the matter and nobody is any the wiser as to what is happening.
To take the first question, namely, why the Minister for Industry and Commerce was involved, SFADCo, as a semi-State body——
Why did he make an announcement in relation to the tourism section?
Please, let us hear the Minister.
SFADCo come directly under the regime of the Minister for Tourism and Commerce and the reason he made the announcement was that it was about an increase in the powers of SFADCo.
That was in relation to the IDA but why did he make the announcement in relation to Bord Fáilte which comes under the regime of the Minister for Tourism and Transport?
He simply announced an enhanced role for SFADCo in the area and he was fully entitled to do so. He was not stealing my potatoes when he was doing so.
He made an announcement in regard to public transport in Galway last weekend.
Can we deal with the subject matter before us, please?
I met the Minister there. This is not a competition between members of the Government. The Minister is from Longford, he is a neighbour's child. As I have stated, SFADCo and Shannonside are dealing with the employment problem at the moment and I hope there will be a satisfactory result.
Will jobs be lost?
I wish to ask the Minister why this change was made since apparently no one wanted or suggested it and no one knows how it is going to work. Is the Minister aware that Bord Fáilte and the IDA think the whole idea is crazy? SFADCo cannot very well say it is crazy but they do not know what they are supposed to do because they were not consulted about the matter in advance. How does the Minister think that tourism promotion which, by definition, must be carried out abroad is going to be carried out throughout the world by SFADCo? Will they open offices in all countries in which Bord Fáilte and the IDA have offices?
The Deputy has let his imagination run away with him. SFADCo previously had a tourism role. I am not aware that any of the agencies which allegedly think the idea is crazy have so thought.
The Minister should ask them.
The ones I have spoken to have no such views whatsoever and I am confident that SFADCo will enhance tourism activity in that area. The basic question the Deputy asked was why it was done. It was done to streamline operations so as not to have cross functions in that area and to give one organisation the power to develop the area of small industry, large industry and tourism.
Will they open offices all over the world?
No.
How will they promote tourism?
In the same way as any other regional group.
Would the Minister not agree that it would have been a good idea to consult in advance the employees who were likely to be displaced? Will he tell the House to which Department such employees might have recourse as to their future? Will he also say if any estimate has been prepared for the likely redundancy cost and to which Department it will be addressed?
As of now discussions are taking place between Shannonside tourism and SFADCo, dealing in particular with that problem.
Does the Minister agree that there will now be a considerable amount of duplication between Bord Fáilte and SFADCo? These organisations will be placed in direct competition with each other. The Minister made no reference to Lakelands in his reply and this is also being incorporated in this reorganisation. I want to know what the position will be in relation to Lakelands?
The Deputy correctly states that part of Lakelands is involved, namely, south and west Offaly. I had a consultation with the man on the tourist board who represents that area. I gathered from people I consulted that south and west Offaly were delighted to be in the development area. I can assure the Deputy that there are many other areas in the country that would like to have a special position with regard to development, for instance, the people who have been enjoying SFADCo and its advantages over the years.
Arising from the reply given by the Minister to the previous question, my question, to the effect that the Price Waterhouse report recommended that SFADCo should get out of the tour operating business and should not compete with Bord Fáilte, how can the Minister say this is right now if the entire Price Waterhouse report is being considered? I would ask the Minister if he will be taking on board that recommendation?
The Government considered the position of SFADCo and Shannonside tourism and made a decision. Lest the Deputy get the wrong idea of what I said, I said I accepted the general thrust but the conclusions had already been reached by me and the Department. I am not committed to every little recommendation that comes out of the Price Waterhouse report.
I have a final supplementary.
Deputy Taylor-Quinn will appreciate that we have already encroached on the time for priority questions but I will facilitate the lady Deputy.
The Book of Estimates this year does not show that any additional funding is being provided to SFADCo for tourism promotion. Can the Minister, therefore, tell us how SFADCo will be in a position to be on the same level as Bord Fáilte throughout the world and give the same type of profile of the mid-west on the world market as the rest of the country will get? There is no evidence that that will be possible because resources are necessary to do that and these are not available in the Book of Estimates. Will the Minister finally tell the House if he intends to protect the jobs of the staff at Shannonside?
My Department indicated to SFADCo that £250,000 of their allocation was to be used for the promotion of their new role in tourism. With regard to the staff situation, I have mentioned already — and I will not make any further comment — that there is a discussion going on between SFADCo and Shannonside with regard to the future of the people who worked in Shannonside.
We will now deal with questions nominated for priority.