Vol. 416 No. 2
14 Mr. Hogan asked the Minister for Tourism, Transport and Communications if she will outline her intentions regarding the £1 million provided in the budget for the car-hire industry which is a very important part of the tourism industry; and if she will make a statement on the matter.
20 Mr. Sherlock asked the Minister for Tourism, Transport and Communications if her attention has been drawn to the recent concern expressed by French tour operators regarding the shortage of hire cars; if, in view of this and the recent collapse of one major car hire firm, she has any plans to discuss the matter with the car hire industry, or if she plans any other initiatives; and if she will make a statement on the matter.
28 Mr. Farrelly asked the Minister for Tourism, Transport and Communications if she will outline her intentions regarding the £1 million provided in the budget for the car-hire industry which is a very important part of the tourism industry; and if she will make a statement on the matter.
I propose to take Questions Nos. 14, 20 and 28 together.
A sum of £1 million was allocated in the recent budget to be used specifically to boost the supply of cars available for hire to tourists in the coming peak tourist season. My Department are currently having discussions with the Car Rental Council of Ireland and with Bord Fáilte to work out how the budget provision can best be used to meet anticipated shortages in cars for hire during July and August next. The pricing of cars for hire is, of course, a commercial consideration for individual firms. However, my colleague, the Minister for Finance, included provision in the budget for a reduction in excise duty on new cars and on petrol both of which should help the economics of car hire and its price competitiveness.
May I ask the Minister, in view of the seriousness of this matter, the great efforts being made to attract visitors here and the concern that has been shown by the French tour operators, when the talks are likely to be concluded and what the outcome will be?
It is hoped that these discussions will be agreed in the coming weeks.
Is the Minister aware that there is a shortage of 2,500 cars in the rental car fleet? Will she ask the Government to postpone the implementation of import duties on new cars until the fleet owners buy those cars? The £1 million made available in the budget could be better spent because these cars are required for only a very short time — six to nine months. Would the Minister consider that proposal taking into consideration that this system is operating successfully in other European countries?
I am aware of the point raised by Deputy Farrelly. It is one of the points under discussion by the Car Rental Council of Ireland and my Department as well as the Department of Finance and the Revenue Commissioners who obviously have considerations and concerns in relation to that aspect. In answer to the first part of Deputy Farrelly's supplementary, I am aware from the Car Rental Council of Ireland that there will be an estimated shortfall of 2,000 cars, and it is to deal with that matter that the current discussions are taking place as a matter of urgency.
We will wait with interest.
Would the Minister agree, given that the peak tourist season is only five or six months away, that it will prove impossible to implement the policy of Bord Fáilte in targeting, for example, the Japanese market because sufficient cars will not be available? The Japanese cannot be expected to bring their cars here. Considering that the car hire market is of crucial importance to tourism, would the Minister agree that it will be a disastrous year for all concerned because of the lack of availability of cars? If the Minister delays any longer it will be too late to introduce policies to facilitate the extra demand.
I do not accept that it is going to be a disastrous year because this issue will not be dealt with. It is precisely because I and the Government are concerned to address the issue that these discussions are going on as a matter of urgency. As I said a few moments ago, I hope to be able to agree the details that my Department and I are initiating in the next few weeks.
