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Dáil Éireann debate -
Tuesday, 2 Mar 1993

Vol. 427 No. 2

Ceisteanna — Questions. Oral Answers. - Tourism Sector Plan.

Eamon Gilmore

Question:

13 Mr. Gilmore asked the Minister for Tourism and Trade if his attention has been drawn to the recent statement made by the outgoing chairman of Bord Fáilte (details supplied) in which he said that Bord Fáilte needed an extra £45 million in marketing support from the Government between now and 1997; if it is intended to provide these funds; and if he will make a statement on the matter.

I am aware of the reported statement referred to by the Deputy.

I am at present examining proposals from a number of representative bodies and agencies, including Bord Fáilte, on the preparation of a new plan for the tourism sector up to the end of 1997. Among the issues being considered is the appropriate level of marketing assistance to be provided from the Exchequer, and other sources, including EC Structural Funds, and the effort required from the industry over that period, in order to meet the targets set out already in the Programme for a Partnership Government.

Does the Minister agree with the view of the chairman of Bord Fáilte that this area of tourism provides one of our best prospects for job creation? Have the remarks by the chairman, to the effect that the increased provision for job creation in the budget will be eroded by inflation and if the set target is to be met there will have to be a substantial increase in his allocation, been brought to the Minister's attention?

First, as Minister for Tourism and Trade, I recognise the importance of tourism to job creation in the coming years and this is also recognised in the programme for Government. The targets set may look ambitious but worthwhile sustainable jobs can be created in this industry. I am aware of the statement by the chairman of Bord Fáilte in this regard but I consider the amount of money provided by the Exchequer in these stringent economic times as sufficient. The Deputy should bear in mind when speaking about the marketing fund for tourism that in addition to the sum provided by the Government in grant-in-aid to Bord Fáilte, there is funding for tourism from the tourism operational programme of the EC, which in 1992 provided £4.4 million; an allocation under the INTERREG programme of £320,000 and funding from the International Fund for Ireland totalling £764,000. In the Estimates, £21.5 million is the Government grant-in-aid to Bord Fáilte and Bord Fáile's own resources amount to £4.3 million making a total of £31 million. The chairman of Bord Fáilte would not be doing a good job if he did not look for more money from the State before decisions are made on the Estimates. I am sure the Deputy will bear that in mind.

It is not correct to say that the moneys being provided are adequate. Would the Minister agree that the moneys provided for marketing — I agree there are many different sources of funding — are the life blood for developing the tourism industry? Without increased funding specifically for marketing we will not attract the required numbers of tourists to sustain the jobs that have been created. In his reply the Minister referred to the tourism development plan which is largely based on the regional development plans which have been prepared over the past number of months. Would the Minister accept that we will not reap the benefit of the national tourism development plan without the regional tourism organisations as the strength of the regions is fundamental to the implementation of that plan? Would the Minister accept that we need more money for marketing from all sources and that the regional tourism organisations are important for the development of tourism?

It is self-evident that every State and semi-State body could do with more money. I agree with Deputy Cullen when he said that marketing is the key to attracting more tourists. I have been impressed by the level of infrastructural development in the tourism sector over the years. I accept that now is the time "to put bums on seats", to borrow a phrase. We have created a viable product which is up to international standards and I accept that marketing is the key to selling that product. However, the allocation for tourism promotion and marketing will be sufficient for the coming year. I answered a question on the regional tourism organisations and I will be making a statement on them shortly.

That is why I raised that point now.

I will bear in mind what Deputies said when reaching my decision on those organisations.

In his reply the Minister is, in effect, saying that the chairman of Bord Fáilte is guilty of a gross exaggeration and that his statements are totally without foundation.

I did not say that, and the Deputy should not try to imply it. The chairman of Bord Fáilte, like any chief executive of a State body, will want more money, but it must be remembered that if one State organisation gets more money it must be taken from some other body, be raised by increased taxation or borrowed. The budgetary package announced last week is correct. No money is falling out of the sky for us.

The Minister said he will be determining the amount of money to be made available for marketing and proposals in relation to the development of the tourism infrastructure, but what will be the effect of the recent court decision that the use of a residence as a bed and breakfast is not an exempted development under the planning Act and that planning permission will be required? Has this court decision had any effect on the plans for the development of the tourism infrastructure and the marketing of tourism?

Let us be careful about matters which are, perhaps, sub judice.

Deputy Molloy is showing his 28 years experience in the Dáil in putting a question which is not related to the question before us. I congratulate him on his ingenuity.

I am looking for answers.

This question has nothing to do with marketing but if the Deputy puts down a separate question, I will try to answer it.

If the Minister had replied to Question No. 17, which was taken earlier, I would not have to use this extraordinary method of trying to raise the matter.

These are the procedures of the House and if the House wishes to change them the Chair will be very glad to implement any changes the Members may make.

Will the Minister answer Question No. 17 now?

Will the Minister agree, in retrospect, that it is unfair to dismiss the views of the chairman of Bord Fáilte as just another chief executive of a State enterprise doing his job? The Minister must be aware that in the speech in question delivered at Dún Laoghaire, the chairman of Bord Fáilte said that even if he were denounced for treason he felt the situation was so compelling that he had to engage in open lobbying of the Exchequer for additional funding. Has the Minister any plans to deal with the undoubted negative impact of devaluation, especially in regard to our expectations from the British market this year?

The chairman of Bord Fáilte has reached the targets set by the Government and, by any standards, he has done an excellent job. I do not criticise him for making the statement. My job as a Minister is to use the funds made available to me in the best possible way.

A separate question has been tabled on the effects of the exchange rate on Irish tourism. There will be pluses and minuses in this regard. Over the past year the growth in tourism has come from what is termed the "non-UK area of Europe". Due to the devaluation there will be a substantial benefit for people from those countries because their money will go a great deal further. With regard to visitors from the United States, it must be remembered that in mid-August last year, the high point of the tourism season, the Irish pound was trading at US$1.83-$1.84 and it is now trading at US$1.48, which gives us a competitive advantage. The recent devaluation should have a positive impact on tourism this year.

In response to Deputy Molloy's question, that decision is being considered in my Department. However, it is primarily a matter for the Minister for the Environment. I do not see it having an impact on the tourism sector this year. I am sure people in County Galway, and elsewhere, will find ingenious ways around the decision.

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