Vol. 375 No. 9
asked the Minister for Labour the discussions, if any, which have taken place to date with the representatives of the hotel industry regarding their increase in contributions towards the operating costs of CERT; if agreement has been reached in principle with the hotel industry to make a contribution of £500,000 to CERT in 1988 and succeeding years; and if he will make a statement on the matter.
27.
asked the Minister for Labour if he will make a statement outlining the impact on CERT Limited of a reduction of 15 per cent in real terms in its allocation for 1988; if the reduction will necessitate redundancies in the organisation; if so, the number; if the reduction will have any impact on the organisation's very successful placement record; and if it will have any impact on the Government's strategy for tourism.
I propose to take Questions Nos. 9 and 27 together.
The 1988 Exchequer allocation to CERT was made against the background of the overall difficulties with the public finances. It was also the understanding that there would be a significant increase in the contribution from the hotel, catering and tourism industry to the work of CERT.
I have had discussions with CERT Ltd. who have formulated specific proposals for collecting the necessary level of contribution. The proposals cover not only the hotel industry but also extend to catering institutions, hospitals and carriers. These proposals will be discussed with representatives of the various sectors involved, and my Department will be present at these discussions.
Given an adequate level of funding from the industry, there will be no negative consequences to the operation of CERT. CERT training will continue to be a major element in the Government's strategy on tourism.
I welcome the fact that the Minister initiated these discussions and I wish him success. Does he agree, however, that success will be measured by whether he will be able to raise the projected figure of £500,000? Having regard to the replies he gave to me in the form of written answers last week, does he agree that the hotel industry have benefited very substantially from the support of the taxpayer, an average of two employees per institution at a rate of subsidy of £20 per week per trained person? A reduction of VAT was introduced two years ago and, in view of this, will the Minister agree that the hotel industry has received over the odds support from this and previous Administrations? Will he clearly indicate now that the House expects that sector of the industry to come up with a figure of £500,000 which was mentioned earlier?
I agree with the Deputy's comments about the value of CERT's contribution to the industry. It is well known and has been publicly acknowledged on many occasions by Members on all sides of the House. I initiated the consultations with a view to securing a substantial increase in the financial support for the industry. I set a target of £500,000 and since then I have been directly involved with the board of CERT to explain the position. I said if they could not raise the industry's contribution the consequences for CERT would be quite dramatic. State funding will have to be replaced as a matter of urgency because I do not have the necessary funds. The board accepted that in principle and, in a joint meeting between the management of CERT and senior officials in my Department, said they would try to get an agreement before Christmas if possible from hotels, licensed premises, restaurants, industrial caterers and carriers to a levy. If that was not successful, legislation would have to be introduced for each area. However, I feel quite justified in asking the industry to pay £500,000 to avoid delays and this is the path I intend to follow.
Has the Minister had separate meetings with the Irish Hotels Federation and representatives of the vintners' associations who are represented on the board of CERT? If so, has he obtained the clear and unequivocal impression and commitment that those bodies are prepared, in principle, to co-operate with the measures he is proposing?
I met the board of CERT and outlined my views at an earlier stage. The proposals were then put to CERT. I was not at the meeting but I understand they agreed to this in principle. I then had a meeting with the management and my senior officials. Over the next few weeks they will be meeting every sector of the industry to get their agreement, not in principle but in fact.
The cutback to CERT in the current year amounts to £300,000. Will this result in fewer training places being available to applicants in the coming year? Does the Minister also anticipate a consequent loss in revenue to the Great Southern Hotels Group which earns some of its income by offering training facilities to CERT?
No. The money not being given from the Exchequer will now be made up by the industry paying for the services which they receive from CERT. Difficulties for the Great Southern Hotels Group have not been highlighted.
Will the Minister suggest ways through which the Great Southern Hotels Group can increase their revenue? The Minister already said that he will meet the hotels' federation and people involved in tourism generally with the hope of getting them to increase their contribution. Up to now they have made a very minute contribution and the bulk of the training to date has been paid for by the State. Is the Minister certain that he will get the revenue from the industry?
I am certain that I will do everything possible to make sure they pay the £500,000.
In the event of their refusal what does the Minister intend to do?
Bring them into FÁS.
I have no doubt the Deputy will put down a further question then.
I am not so sure that we will have the same Government then.
I am pleased that the Minister requires the industry to contribute. It is the least they can do. Is the Minister aware that there is a grave shortage of skilled personnel in catering and baking, that facilities are not available for training and so on? In view of that and in view of the grave unemployment figures has the Minister any plans to expand training in these fields? It appears that these are the only fields where we have not enough personnel to fill the vacancies available.
I take the Deputy's point. Apart from what I have said here, the maintenance of CERT operations at existing levels will continue to underline the Government's emphasis on the strategic importance of tourism. In the National Plan agreed with the social partners there is agreement to increase by 300, craft training places. CERT, wherever possible have tried to increase their numbers to ensure that there is adequate numbers to fill vacancies.
It is common knowledge that skilled personnel are not available. It was recently brought to my notice that the employment agencies have inserted advertisements looking for personnel to go on their books. Here is an area where employment is available and we have not the training available to create skilled craftsmen.
The Deputy seems to be imparting information rather than seeking it.
