The purpose of the Supplementary Estimate for Vote 35 is to provide for expenditure under new subheads on Ireland's participation at Expo '92 in Spain, and on services related to the transfer of functions of the Air Navigation Services Office from my Department to a semi-State body.
Today's Supplementary Estimate will facilitate Ireland's preparations for Expo '92. Participation at the "Universal Exposition of Seville 1992" will cost up to £4 million and this Supplementary provides for expenditure in the current financial year of £1.25 million, which will come from the national lottery.
Expo '92 is a major cultural event. It is billed as the last and biggest world exposition of the 20th century. It is classed as a universal exposition, the highest category within the hierarchy of international exhibitions. There have been only seven such exhibitions this century, the last one in Europe being as far back as 1958 in Brussels. The event will run from 20 April to 12 October of next year. More than 100 countries are participating, including all 12 members of the European Community.
Nineteen ninety-two marks the 500th anniversary of Columbus's voyage to America and provides Expo with its main theme "The Age of Discovery". The event is to be a celebration of cultural and scientific discovery from the 15th century to date. The organisers are expecting more than 18 million visitors.
Ireland cannot afford to pass up the opportunity of a national presence. It will be a universal showcase of 20th century technological, cultural and artistic capability and achievement. It offers Ireland a unique opportunity to reinforce the very positive world image we have been so carefully building up over the years. The objective of being there is to present in a prestigious international forum all that is best about our country, our culture, our heritage and our products and to explain why Ireland is an ideal location for foreign investment. It will be a chance to show off developments in technology, agriculture and the arts and to demonstrate the skills and education of the Irish workforce.
The total cost of our involvement in Expo will be in the region of £4 million. The project is being managed by a steering group comprising representatives of my Department, Bord Fáilte, the Departments of the Taoiseach and Foreign Affairs, the Office of Public Works and An Bord Tráchtála. The steering group have already appointed a full-time director for the project on a consultancy basis to manage operations on site in Seville. His contract will run for a period of 18 months and he will be reporting to the steering group. The major expenditure item will be £2.7 million on the design, construction and fitting out of the Irish pavilion. Other major costs will be to staff the pavilion and the organisation and staging of some 40 planned cultural events.
The steering group are at present actively pursuing a sponsorship programme under which commercial sponsors will also have the opportunity to participate. The exposition offers exciting opportunities for sponsors, especially Irish companies, who already have a European or international presence or companies needing to establish such a presence.
Visitors to the Irish pavilion will be taken through developments in Irish history and culture from before the era of the "Island of Saints and Scholars" right through to the present day. They will see exhibits based on the best of Irish industry, Irish technology, Irish agriculture and finally — Irish people — both the friendly face of our people and our highly educated, highly skilled workforce.
Work on the 7,000 sq. foot architecturally unique Irish pavilion is already well advanced. It is strategically located on site, on Avenue of Europe, and will be highly visible from the Expo monorail which passes close by. Virtually all aspects of the pavilion will be Irish made, from the design through the construction to the final fit-out.
Ireland's image as an attractive, highquality holiday destination will be strongly featured in Seville. The very design of the pavilion will embody some of the key elements of our unique appeal for tourists evoking a clean, green island landscape and coastline on the very edge of Europe. It is estimated that over half a million visitors will visit the Irish pavilion during the six months of Expo '92 — in other words, half a million potential visitors to Ireland. They will be exposed to a package of exhibitions, audio visual displays and performances highlighting the allure of Ireland as a holiday destination.
Visitor numbers from Spain have more than doubled since 1986, showing growth of 135 per cent between 1986 and 1990. Numbers grew last year alone by 42 per cent on 1989. The Spanish tourist market into Ireland is now worth over £30 million to the Irish economy and is heading for some 60,000 visitors per annum. Over half the 18 million visitors expected at Expo will be Spanish, giving us an immediate opportunity to further increase penetration of the Spanish market.
We are still in the throes of a revolution in Irish tourism aimed at developing the full potential of a sector which last year alone earned over £1 billion in foreign revenue, equivalent to almost 7 per cent of total exports, and which now supports nearly 80,000 jobs in the overall economy. Tourism is our leading internationally-traded service, accounting for 60 per cent of total services exports, contributing more than £400 million, or over 50 per cent, to the surplus on our overall balance of payments and providing one in every three new jobs created in the economy between 1985 and 1990.
The £300 million package of product development and marketing initiatives currently being implemented under the EC operational programme for tourism has already resulted in approval for eligible investments totalling £160 million, including £80 million in grant aid from the European Regional Development Fund. This investment will be a key factor in maintaining growth in Irish tourism. There has been a downturn this year in demand for international tourism and travel generally because of the Gulf War and recession in some key markets. We can take some comfort, however, from the latest CSO estimates of this year's tourism performance. These figures show that while there was an overall drop of 2.7 per cent in visitor numbers for the first nine months of the year, a considerably lower reduction than was expected, revenue actually increased by 8 per cent for the half year to end June. All the indications are that tourism is recovering from that setback and the industry are already confidently predicting a return to growth n 1992.
Our participation at Expo '92 will also, of course, provide an opportunity to raise awareness about Ireland as a modern economy and as a member of the European Community. It will inform visitors to the pavilion that this country is a serious producer of high-tech goods, an attractive investment location and a competitive source of goods. As well as Bord Fáilte, the IDA and An Bord Tráchtála will be on hand to deal with the inquiries of visitors to the pavilion in a professional manner
This Supplementary Estimate also makes provision for expenditure involved in estabishing the new Irish Aviation Authority. A token provision of £1,000 has been made for 1991. As my colleague, the Minister for Tourism, Transport and Communications, Deputy Brennan, announced last July, the Government decided to establish the Irish Aviation Authority. The Authority will be a commercial semi-State body to operate air traffic services in Irish airspace and regulate aviation safety matters in accordance with well defined international standards. The Authority will take over the functions and staff of the Department's Air Navigation Services Office, otherwise known as ANSO.
Whilst ANSO has the necessary sinews to quickly become a semi-State body it cannot be done instantaneously. In particular, we need to establish the corporate financial base, to negotiate the transition arrangements with staff and to bring to the House the necessary legislation to give statutory effect to the proposals. The purpose of this Supplementary Estimate is to make provision for the expenditure that will be necessary in connection with the transition arrangements. I should mention that this expenditure is part of the overall ANSO cost structure and as such will be recovered from the users.
The intention is that the new Authority will be operational in 1992 and we will be introducing a Bill for the purpose shortly. The House will then have an opportunity to fully debate the matter. In all, approximately 600 staff will be transferred from the Department to the new body. The transfer will bring a welcome lightening to the payroll costs for my Department and for the Exchequer. My hope is that the new Authority will be able to expand employment with worthwhile jobs in a high technology expanding industry.
The Aviation Authority will ensure that as a State we can readily meet the challenges posed by increased traffic; and tap the worldwide potential currently emerging in training and consultancy work.
The Authority will inherit from ANSO a pool of proven expertise which, freed from the constraints of Civil Service procedures, will respond quickly and positively to the changing circumstances and challenges of the industry.
During the eighties, there was a significant growth in air traffic. All reliable indicators point to continued long term growth in international air traffic of about 5 per cent per annum which would be equivalent to a doubling of traffic by the year 2005. Growth of this magnitude presents an enormous challenge to expand the capacity of navigation systems to meet the growth in demand. It requires investment in manpower, skills and equipment. I am satisfied that, so far, we have been equal to the challenge. In establishing the authority we will maintain our ability to meet competitively the challenge in the years ahead.
A £30 million investment programme initiated in the late eighties and due for completion in 1992 helped us to avoid the worst of the European air traffic problems. The staff and equipment we use to control and manage 100,000 sq. miles of airspace are comparable to the best in Europe. Moreover, our systems can be integrated with those of our European partners to provide what will be eventually a seamless network of air traffic control facilities throughout Europe.
Delays and disruptions in one country have a domino-like effect throughout the air traffic system. At a European level we must work effectively to resolve our problems. We in Ireland have been to the forefront in developing the strategies of flow management and the harmonisation of systems which will resolve the problems we have seen.
ANSO discharges very clearly defined executive functions that already comprise a substantial business. Given the right conditions, I am satisfied that this is a business which, to coin a phrase, can stand on its own feet and furthermore can be developed to expand on its considerable employment and profit potential. Currently it employs approximately 600 highly skilled personnel in a variety of operational and regulatory roles. Under various international conventions the cost of the services provided by ANSO — which we estimate at £32 million — can be, and is recovered from the users. The vast majority of the users are foreign airlines which use Irish airspace and airport facilities. Indeed more than 50 per cent of current ANSO revenues come from aircraft which do not land at all in Ireland.
The continuing worldwide expansion of aviation combined with the dismantling of socialist controls in the former Eastern European states is creating a major market for the type of skills that ANSO has. I am satisfied that, re-created as a viable commercial semi-State body, the Authority can tap into that market, where it already has had one or two small successes. Moreover, it can, as necessary, link up with other bodies such as Aer Rianta and educational establishments to provide tailormade packages for its clients.
In conclusion, this Supplementary Estimate provides expenditure which, on the one hand, will assist with the continued growth in Irish tourism and, on the other, will constitute the first step in establishing a new Aviation Authority. Both the issues involved are worthy of support from all sides of the House. I commend this Supplementary Estimate to the House.