As Minister with direct responsibility for the further development of the Irish tourism industry, I very much welcome this comprehensive and wide ranging report by the Green 2000 Advisory Group on the key issues facing our natural environment.
Among the major strengths which characterise Irish tourism and which is of growing significance in a world suffering the ravages of industrial pollution is our clean physical environment. Ireland has been recognised for some time now as having one of the cleanest physical environments in Europe which, with a low population density, offers an ideal setting for a wide range of recreational and leisure pursuits, many of which, such as fishing, are critically dependent on the maintenance of a pollution free environment.
The advisory group found that for most environmental indicators the quality of our environment is relatively high in comparison with that of our European partners. The group considers that with its unique cultural endowment and magnificent landscapes, Ireland is an environmental treasure in a European context.
This, of course, is the message which our tourism industry has been spreading in our overseas markets. It goes without saying that it is imperative that we maintain this unique quality which gives us a competitive advantage in our endeavour to achieve sustainable development, particularly in the tourism sector.
It is clear, however, from the report that we cannot afford to be complacent. A number of areas are highlighted where some deterioration is evident, such as the pollution of our river waters and the destruction of landscapes and archaeological features. The report notes that the future performance of many non-tourism sectors of the Irish economy, such as the meat and dairy sectors, will be influenced not only by the actual quality of the physical environment but equally importantly by the perceptions which international consumers of Irish produce have of the quality of that environment and those products. The report rightly argues that the environment needs to be viewed as a strategic resource and a core element in our strategy to address the challenges of unemployment.
In its consideration of tourism and the environment, chapter 13 of the report correctly identifies the significant role which tourism now plays in our economy. It is estimated that tourism accounts for almost 7 per cent of Ireland's gross national product. It also supports some 90,000 jobs and accounts for over £1 billion of foreign tourism revenue every year. We have arrived at this point as a result of a sustained period of tourism growth over the last five years. Since 1988, overseas visitors have increased at an average rate of 10 per cent per annum while overseas revenue has increased by about 14 per cent per annum. In addition, over 20,000 extra jobs have been created in tourism in the economy. These successes have vindicated the Government's overall approach to the industry, in that it has actively encouraged the development of a more attractive tourism product for our overseas visitors.
At the start of the last national development plan, the Government recognised that friendly people, a good environment and scenic beauty were no longer sufficient on their own to attract visitors. It was accordingly decided to develop a more attractive and more diversified tourism product, one which remained substantially based on developing Ireland's environmental and cultural attractions. Through the tourism operational programme, Community funding has directly stimulated more than £400 million of public and private investment in the tourism sector. These investments have focused particularly on developing new and improved recreational activities where Ireland has particular product strengths. Facilities which are benefiting from EC funds include angling, cruising, equestrian, golf and walking holidays.
Similarly, substantial investments are being undertaken by both the public and private sectors in enhancing Ireland's cultural heritage. The theme town programme, being undertaken by Bord Fáilte and Shannon Development under the tourism operational programme, is one which allows towns with excellent inherited features to develop these features and improve their general and built environment, while at the same time enhancing their potential for tourism development. This programme is indicative of the Government's whole strategy, which has been directed at making Ireland more interesting and attractive for the foreign visitor, while continuing to respect the unique natural and man-made heritage which we are fortunate to possess.
Substantial complementary investments are also being undertaken in other sectors in support of the overall tourism effort. For instance, the operational programme for sanitary services is expanding and upgrading the water supply network at designated tourism centres. It is also providing for sewage improvements in several branded fishery catchments, and it is offering new sewage pump-out facilities for cruisers on our inland waterways. Similarly, the operational programme for rural development is helping farming communities to diversify into the tourism industry in a small scale and environmentally friendly manner, thereby helping to generate new sources of revenue to maintain our rural communities.
Government recognition of the vital role that tourism will play in future economic growth is reinforced in the Programme for a Partnership Government, 1993-97. The relevant initiatives are: the setting up of a new Department of Tourism and Trade, thus bringing together under one umbrella our two main sources of foreign earnings; bringing together under the aegis of that Department the State agencies involved in tourism, Bord Fáilte and CERT, together with the tourism functions of Shannon Development, and the setting of ambitious targets for the industry over the next five years, which include increasing foreign earnings in real terms by 50 per cent and providing an additional 35,000 jobs.
The Government's forthcoming National Development Plan will set out the strategy for realising these objectives. Our overall approach will seek to attract to Ireland visitors who will continue to enjoy Ireland's rich environmental heritage. We will obviously want to do this in a manner which will not damage that heritage, while at the same time wishing to enhance the presentational possibilities of that heritage in order to make it more meaningful to our foreign visitors.
The Green 2000 report rightly acknowledges that a balance between development and conservation has to be struck and that that overall balance will be crucial to the long term viability of the Irish tourism industry. The Government is determined that our existing environmental resources will be managed in a way that will yield the greatest sustainable benefit to present generations while maintaining the potential to meet the needs and aspirations of future generations.
The planning function of local authorities will continue to play a key role in ensuring that future tourism and other related developments are compatible with the environment. In this connection, Deputies will know that the Government has recently indicated its wish to reduce the number of exempted developments currently available under the Planning Acts.
The second level which will require continuing attention is the operation of tourism facilities. Clearly, excess demand can result in damage to the environment covered by the facility. Some evidence of such damage is apparent in other countries where the numbers using, for example, walking routes, have tended to damage the local environment. In general terms, I think it is fair to say that we in Ireland are a long way from reaching capacity limits in most tourism facilities. I am happy to note that the Green 2000 report tends to confirm this view.
In the recreational area, the report acknowledges that these activities compare very favourably with those of other sectoral areas, such as agriculture-fisheries and sewage disposal, in terms of their adverse impact on the natural environment in recent years. Obviously, we need to continue to ensure at operational level that the increasing number of visitors to Ireland in the future does cause damage to our environment. The report apparently sees no major difficulties in this area, noting that the impact of recreational activities on the environment can in general terms be minimised through good planning and management strategies.
In the heritage area, I was also heartened by the statement in the Green 2000 report that on-site interpretative centres, interpretation panels and leaflets at national parks, national reserves and similar tourist facilities are very important management tools. Such centres not only provide an important educational function for our visitors but they also serve, when properly planned and managed, to control the adverse effects of visitors on the surrounding environment.
It is important to recognise that the highest level of protection afforded to the natural environment is through State ownership and designation as a nature reserve or national park. In these areas, properties are actively managed to conserve the environment. In between the total protection provided by State ownership and the general protection given by the Planning Acts, there is a need for a conservation mechanism which will give a greater level of protection to special areas which still remain in private ownership. There can be no doubt that farmers are the principal conservationists, although they are not always given full credit for their role.
The old system of areas of scientific interest, ASIs, attempted to fill this gap, but many Deputies will already be aware of the questions and misconceptions which sometimes surrounded that system and a number of the recommendations in chapter 2 of the report reflect this. The Government has decided to designate those special areas which need to be conserved as natural heritage areas. It is very significant that the very name of these areas has been changed. We all now realise that these special parts of our land are not simply of interest to scientists and professionals but are an integral part of our heritage.
It is likely that most of the existing ASIs will qualify as natural heritage areas and will include raised bogs, blanket bogs, sand dune systems, wetlands, estuaries, important bird sites, woodlands and other areas of nature conservation interest. I understand that the EC will pay 50 per cent of the cost of a survey as the first step in identifying sites for designation under the Habitats Directive. The EC will also assist in the purchase of a small number of the very best sites which will be included in the Community-wide NATURA 2000 network of special areas for conservation.
I am delighted to say that the Minister for Agriculture, Food and Forestry has agreed that a new grant scheme will be introduced whereby owners of land will be eligible for farming grants, provided they manage the land in an environmentally friendly way. The details of this scheme, which will apply, inter alia, to natural heritage areas, will be announced later in the year. This is in line with the recommendation that maximum use be made of the environmental provisions of the Common Agricultural Policy reform.
With regard to land acquisition for nature conservation, I am aware that the Office of Public Works has concentrated in recent years on acquiring peatlands. This is because, as a fast disappearing and seriously threatened natural habitat, the Community has prioritised this area by introducing special EC financial instruments such as ACE, ACNAT and LIFE which were designated to assist nature conservation. The Government has provided the matching funds to the Office of Public Works to take maximum advantage of these funding mechanisms.
There are other endangered natural habitats in Ireland, for example, sand dune systems, turloughs, old oak woods, fens, old grasslands, etc., not to mention the habitats of threatened flora and fauna. We cannot acquire all those threatened sites in order to protect them, but as already mentioned, with the co-operation of the Department of Agriculture, Food and Forestry, payments will be made available to farmers in those areas if they farm their land in an environmentally sensitive way.
Prior to the recent reform of the Common Agricultural Policy there was substantial economic pressure on landowners to drain wetlands. This scene has now changed radically; reform of the Common Agricultural Policy and moves towards extensification and setaside have reduced the pressures on wetlands. With the possibility of environmentally sensitive area grants for environmentally friendly farming, affected landowners will be encouraged towards retention or even restoration of wetlands. Unique environmental areas, such as these, will form an integral part of the Government's plans for conservation and tourism development in the next National Development Plan.
I have mentioned already that the Government has targeted the tourism sector for particular attention over the next five years. Aside from encouraging direct investment in the industry, the Government will be anxious to ensure that complementary areas of State activity in areas such as roads and sanitary services also receive significant funding priority in the next round of EC Structural Funds. All of this investment in environmental enhancement will help to maintain our competitive position as a region of unique interest in Europe. The report contains many recommendations, such as those for reducing water pollution and the management of access to sensitive areas, which impact directly on the tourism sector. I hope that it will prove possible for these to be implemented by the relevant agencies and Departments as a priority. The overall aim of Government policy in the future will be to protect and improve the environment side by side with economic and social progress so that there will be a better quality of life for everybody, now and in the future.
In an exporting context it is now commonly accepted that a country with an environmentally friendly image has a competitive advantage in particular product areas, most notably in sophisticated markets in Europe. There, research has shown that the role of the environment in consumer buying decisions is significant and becoming more significant. For example, in Germany only quality and price are rated more highly; in the UK it is rated ahead of UK origin as a factor.
Research in those two markets has already shown that Ireland can be a major beneficiary of this change in consumer priorities. In the key German market, Ireland's largest in Continental Europe, Ireland rates second after Germany itself as the "greenest" country in Europe in buyers' eyes. In our largest market, the UK, we are in fourth position. Given that our products are also perceived as being somewhat expensive, it is important that we have this "green" selling point as a counter-balance.
Clearly, food and tourism are the product sectors where all these considerations are of most crucial importance. Positioning Irish food as high-quality, upmarket and produced in a pollution-free environment can be our main source of competitive advantage. However, to "cash-in" on this we need, firstly, to ensure that Irish products are identifiably Irish and, secondly, to protect our position by giving substance to our "green" image through rigorous application of appropriate environmental standards.
The Government is examining these and other critical issues in the light of the report of the Expert Group on the Food Industry which was published last week. The House can be assured that the decisions we make will be those which do most to safeguard and develop our export markets.
Finally, I would like to say that the Green 2000 Advisory Committee has done a fine job in presenting well thought-out recommendations to the Taoiseach. I would like to thank them all for the time and effort which they put into their extensive deliberations on this important topic for economic and social development in Ireland in the future.