asked the Minister for Tourism and Transport the refurbishment grants which are available for hotels and guesthouses in 1989.
Ceisteanna-Questions. Oral Answers. - Refurbishment Grants.
11.
There are no grant schemes being administered by Bord Fáilte at present for the refurbishment of hotels and guesthouses.
In view of the target figures, about which we had some questions earlier, would the Minister not agree that if the target for tourists is to be almost doubled by 1992 some grants will have to be given to hotel and guest-house accommodation to ensure that proper standards will be available for the huge tourist increase which the Minister has predicted will take place?
I should indicate that the last refurbishment grants for this sector of £1.9 million, under the hotel and guest-house reconstruction and development grant scheme, was introduced in 1986, for one year only, by the previous Government——
Why was it not continued?
——as part of an overall Government package of measures to boost employment in the construction industry. Only £100,000 was provided for the scheme in the Coalition Government's published Book of Estimates for 1987 to cover carry-over grant payments arising in 1987 in respect of commitments entered into by Bord Fáilte in 1986. This position was maintained in the incoming Government's Estimates following the general election of February 1987. The current Government policy has been to concentrate the small amount of funds available to tourism development, £500,000 in this year's Estimates under subhead B2, into amenity projects which have the power to attract tourists and thus increase tourist traffic to Ireland. However, there are a range of reliefs other than grants for investment in hotels and guesthouses. I will list a few of them — the business expansion scheme, the Industrial Credit Corporation administer the global loans schemes — if the Deputy wants the details I will give them — the National Development Corporation are empowered to take equity in tourism projects, subject to specific conditions capital allowances are available and hotels are included in the definition of "industrial buildings" in the Tax Act, all in an endeavour to encourage investment in refurbishment and development of the hotel sector.
That is a rare species.
I would remind the Minister that it was the Coalition Government who brought in the 1987 Estimate.
I stand corrected.