asked the Minister for Labour if he will outline the plans, if any, the Government has for the expansion and development of Great Southern Hotels Limited.
Ceisteanna—Questions. Oral Answers. - Great Southern Hotels Limited.
9.
Great Southern Hotels' recent record of a steady improvement in profitability was maintained during 1987 and virtually all aspects of the business showed improved performance.
It is a matter for the board of Great Southern Hotels to decide, subject to the approval of the Minister for Labour, on any specific expansion and development projects. It is Government policy, however, that the company must operate on strictly commercial lines and any future plans will be examined on this basis.
I understand from reports that the Great Southern Hotels have indicated that they would be keen to expand their operations into the Dublin area. Could the Minister indicate if they have made any such proposals to his Department and if any decision has been taken on such proposals?
As I have said, the matter of proposals direct to the Minister is in the first part for the Great Southern Hotels. Government policy is that the company must operate on strictly commercial lines and any proposal which the hotels would bring forward would have to be examined on that basis. I am aware that there have been ongoing discussions about various projects, but at this stage I do not have here any information from the Great Southern Hotels at my disposal in relation to any specific proposals for any area. It is for the Great Southern Hotels to come up with proposals which will be examined in the light of the considerations that I have already pointed out. Any developments proposed would have to be viewed strictly on commercial lines.
Could the Minister confirm that any proposal received with regard to expansion into the Dublin area, or indeed any other area, would result in a decision being made by the Minister purely on the basis of the commercial viability of the project concerned and not the possibility of competition with private hotels?
I shall convey the views of the Deputy to the Minister for Labour. In the recent past, the record of the Great Southern Hotels has been pretty impressive. They went from a situation of losses of £1 million in 1983 to a net profit in the region of £700,000 in 1987. That is an excellent performance, to turn things around in such a very short time. I shall convey the Deputy's views to the Minister for Labour and ask him to take them into account in regard to any development proposals that might come from the Great Southern Hotels Limited.
Question No. 10.
May I ask if the Minister considers that the State should be running hotels?
The Deputy may ask me many things. The Government have made their position very clear in relation to the issue of the Great Southern Hotels. I have said that the policy as a company must be that they operate on strictly commercial lines and any plans for submission to the Minister would be viewed on those lines.
The question I asked the Minister was a simple one. It is: does he think the State should be running hotels?
The question relates to Great Southern Hotels Limited.
Which are run by the State.
So is the education system.
The Deputy is expanding the scope of the question.
The education system must be the responsibility of the State.