Dáil Éireann debate -
Tuesday, 4 Apr 1995

Vol. 451 No. 5

Written Answers. - Operational Programme for Tourism.

Breeda Moynihan-Cronin

Question:

150 Mrs. Moynihan-Cronin asked the Minister for Tourism and Trade if he will review the present Operational Programme for Tourism, 1994 to 1999, in view of the provision in this programme determining Killarney as a metropolitan area, as a result of which all Killarney tourism projects are now excluded from European Regional Development Fund funding; and if he will make a statement on the matter. [6892/95]

Minister for Tourism and Trade (Mr. E. Kenny)

The Operational Programme for Tourism, 1994-99, does not determine that Killarney is a metropolitan area, nor does it indicate as a general principle that metropolitan areas are ineligible for European Regional Development Fund funding under the Operational Programme. Consequently, I can assure the Deputy that, in general, tourism projects in Killarney remain eligible for EU assistance and that the question of reviewing the programme for the reasons indicated by the Deputy does not arise.

In fact, there is only one reference in the Operational Programme to the exclusion of metropolitan areas, and this relates to a small element of the programme, namely, the selective hotel accommodation improvement scheme. This scheme was established to enable support to be considered, in very limited circumstances, for certain improvements to existing small and medium hotels with a current capacity of up to 100 bedrooms and graded up to and including three star.

Under the scheme, assistance will be considered in exceptional cases where it is clear that improvements are necessary to bring the premises up to modern international standards in a new or developing tourist area, where accommodation needs cannot otherwise be met and where the proprietors are able to provide satisfactory evidence that they will cater for new tourist business to Ireland. The main metropolitan areas (which have been defined as the county boroughs of Cork, Dublin, Galway, Limerick and Waterford and the new administrative counties of Dublin) as well as any works eligible for tax incentives in all special designated areas are specifically excluded from assistance under the scheme.

Given the limited nature of the scheme and the very high level of applications for assistance already received, it is likely that the Product Management Boards for the Operational Programme — with whom the decision-making authority resides — will have to apply the eligibility criteria strictly. This is likely to have the result that hotels in Killarney will not have access to the selective hotel accommodation improvement scheme, because Killarney is not a new or developing tourist area where accommodation needs cannot otherwise be met. However, each individual application will continue to be considered on its merits. Hotels in Killarney, of course, will continue to be eligible for other assistance under the Operational Programme and such support has already been approved this year.