I wish to share my time with Deputy Creed.
Financial Resolutions, 1996. - Financial Resolution No. 7: General (Resumed).
Debate resumed on the following motion:
That it is expedient to amend the law relating to customs and inland revenue (including excise) and to make further provision in connection with finance.
—(Minister of State at the Department of the Taoiseach, Deputy J. Higgins.)
Is that agreed? Agreed.
I am grateful for the opportunity to contribute to this debate. The budget introduced by the Minister for Finance on 23 January was a coherent package designed to reward work, promote enterprise and strengthen social solidarity.
The performance of our economy in 1995 provides evidence of the benefits of this approach. The overall growth rate as measured by GNP was over 7 per cent. Investment grew by almost 11 per cent in real terms. Mortgage and short-term interest rates are at historically low levels and, most importantly, this economic buoyancy has translated into increases in the number of people at work. During 1995 employment increased by some 45,000.
This job creation performance has been facilitated by moderate increases in the domestic cost base, and tax and PRSI incentives aimed at producing job-friendly growth. The 1996 budget continues the process of introducing measures to maximise job creation and help the unemployed back into the workforce.
The budget measures on employees' PRSI and income tax will significantly reduce the direct taxation burden, particularly for those on low pay. These reductions will make work a more viable option for those confronted with the difficulties caused by the interface of the tax and social welfare systems.
The Minister for Finance has also introduced a series of measures which will be of particular benefit to the small business sector. The reduction in employers' PRSI and the increase in the threshold for the lower PRSI rate will reduce the tax wedge for small businesses. The new special rate of corporation tax of 30 per cent on the first £50,000 of taxable income will help many small firms to reinvest and expand.
These changes will reinforce the supports already available for this sector through the county enterprise boards, Leader groups and Forbairt. There are many towns and villages outside the main population centres which have difficulty in attracting large multinational investment. These areas are heavily dependent on Irish-owned and small firms. There is now a highly favourable climate for the expansion of this sector of the economy.
Tá béim ar leith leagtha ag an gCáinaisnéis ar chruthú fostaíochta agus is ar Údarás na Gaeltachta atá an cúram sonrach sin leagtha laistigh de theorainneacha na Gaeltachta. Tá soláthar de bhreis agus £20 millúin á chur ar fáil don eagraíocht i 1996 le haghaidh forbairt na Gaeltachta. Is ionann é sin agus méadú de bhreis ar 2 faoin gcéad i gcomparáid le bunsoláthar na bliana 1995. Tá suim £6.6 milliún á tabhairt don Údarás i 1996 chun clár tógála na heagraíochta a airgeadú agus chun scaireanna a ghlacadh i gcuideachtaí. Is méadú de 5.6 faoin gcéad é sin i gcomparáid le bunsoláthar na bliana seo caite. Caithfear an fuílleach de £2.5 milliún go príomha ar chostais riarcháin na heagraíochta agus ar chur chun cinn na Gaeilge. Is soláthar maith airgid é sin cibé slat tomhais a úsáidtear agus is léiriú é ar an tábhacht a chuireann an Rialtas i bhforbairt na Gaeltachta agus i gcur chun cinn na Gaeilge. Beidh mé ag súil leis go gcaithfear an soláthar go coigilteach tíosach ar thograí fiúntacha.
Tá an iomaíocht thionsclaíoch ag éirí níos géire i gcónaí agus tá dualgas ar, agus ról ag, Údarás na Gaeltachta cabhrú le cuideachtaí Gaeltachta chun iad féin a chur in oiriúint do na fadhbanna a chothaíonn sé sin dóibh. Tá béim níos mó ag an Údarás anois ar thacaíocht a thabhairt do chomhlachtaí chun a gcumas iomaíochta agus éifeachtúlachta a fheabhsú. Tá coimhlint mhór ann ó thíortha a bhfuil geilleagair ísealchostais acu agus ní foláir do cheantar Ghaeltachta díriú ar riachtanais bhunúsacha ar nós na gceann seo a leanas le go mbeifear iomaíoch sa mhargadh: teicneolaíocht a uasghrádú, scileanna foirne agus bainistíochta a fheabhsú, agus tairgí ardchaighdeánacha a chur ar fáil. Tá céadatán ard de na poist nua a cruthaíodh le roinnt bhlianta anuas i dtionscail Ghaeltachta á ghiniúint ag gnóthais sheanbhunaithe. Is comhartha mhór dóchais é sin agus táim cinnte go leanfaidh an tÚdarás lena gcuid iarrachtaí leanúnacha chun comhlachtaí faoina scáth — cinn sheanbhunaithe agus cinn nua — a fhorbairt agus a neartú oiread agus is féidir.
Le bunú Theilifís na Gaeilge tá gealladh ar leith ag baint leis an earnáil léiriúcháin neamhspleách chun deiseanna fostaíochta breise a chruthú. Beidh an tÚdarás ag tacú leis an earnáil sin chun an tairbhe is fearr is féidir, ó thaobh cruthú fostaíochta de, a bhaint amach don Ghaeltacht.
Ar ndóigh, bíonn obair fhiúntach ar mhaithe le forbairt na Gaeltachta agus cur chun cinn na Gaeilge ar siúl freisin le cúnamh na ndeontas a thugann mo Roinnse féin le haghaidh Scéimeanna Feabhsúcháin sa Ghaeltacht. Is suim de £3.35 milliún a bheidh ar fáil i mbliana le haghaidh muiroibreacha, forbairt chomharchumann, hallaí agus Coláistí Gaeilge agus saoráidí ilghnéitheacha ar nós páirceanna imeartha, cúirteanna leadóige agus mar sin de. Úsáidfear cuid den tsoláthar sin chun an mhórscéim mhuiroibreacha ar Inis Meáin-Inis Oírr a chríochnú i mbliana.
Faoi mar a dúrt mé, is suim £3.35 milliún atá sna Meastacháin le haghaidh 1996. Táthar ag pleanáil go gcaithfear timpeall £2.35 milliún de sin ar mhuiroibreacha agus tá soláthar de £0.55 milliún ann chun deontais reachtála a íoc le Comharchumainn Ghaeltachta, i gcomhréir leis na méaduithe suntasacha a cheadaigh mé dóibh anuraidh. Is ar éigean is gá dom a rá go mbeidh mo Roinnse ag leanacht ar aghaidh ag tabhairt tacaíocht láidir do go leor scéimeanna tábhachtacha eile a théann chun tairbhe labhairt na Gaeilge agus muintir na Gaeltachta.
Ó thaobh Scéim an bhFoghlaimeoirí Gaeilge, d'fhreastal beagnach 23,000 foghlaimeoirí ar na Coláistí Gaeilge sa Ghaeltacht i 1995 agus d'fhán siad ar iostas i 740 teach Gaeltachta. Is cuid antábhachtach d'eacnamaíocht na Gaeltachta iad na Coláistí Samhraidh Gaeilge agus meastar go mbeidh thart ar an líon céanna foghlaimeoirí i gceist arís i mbliana. I gcás Scéim Labhairt na Gaeilge, meastar go n-íocfar deontas faoin Scéim le thart ar 3,200 teaghlaigh Ghaeltachta i mbliana. Tá an scéim nua seo tar éis cur le húsáid na Gaeilge i roinnt mhaith teaghlaigh ó cuireadh tús leí cúpla bliain ó shin.
Maidir le deontas do thithíocht sa Ghaeltacht, is mian liom a rá arís nach bhfuil deireadh curtha le deontais feabhsúcháin tithe sa Ghaeltacht — tá na deontais sin ar fáil i gcónaí agus tá soláthar maith airgid déanta lena n-aghaidh i mbliana. Tá athrú sa scéim, áfach, sa mhéid nach gcuirfear oibreacha áirithe neamh-shubstaintiúla san áireamh feasta le aghaidh deontais. Ina lán cásanna, áfach, ní dhéanfaidh sé seo difríocht ar bith, mar go mbeidh go leor oibre i gceist chun an tuasdheontas feabhsucháin a thuilleamh ar aon chuma. Tá deontas feabhsúcháin ar fáil i gcónaí d'oibreacha substaintiúla ar bhunchreatlach tithe agus do shaoráidí sláintíochta cosúil le huisce, séarachais agus seomraí folctha.
The budget also contained reliefs for the farming sector. The measures in relation to capital acquisition tax, farmer's flat rate VAT and farm leasing will promote investment in agriculture and help to provide the climate for continued investment in this industry. This sector is the single most important part of the economic base of rural areas, particularly the west.
The NESC report "New Approaches to Rural Development" provides a valuable insight into population decline in rural Ireland and shows the extent of the problem. This loss of population causes further difficulties with regard to service provision and a cycle of decline can be generated. A falling population reduces the demand for services and this, in turn, reduces the number of jobs in shops and local services.
The evidence on the ground tells the same story. During the past year I visited many of the more rural areas along the western seaboard and almost everywhere people related the problems of rural decline. There is great concern about the concentration of economic activity in cities. This is not to deny the existence of real poverty and social exclusion in large cities, and the movement of people from the country to Dublin may help to create pockets of disadvantage in Dublin. There is much evidence that people tend to be more entrepreneurial when living in rural areas and attracting them to Dublin to get employment benefits neither the city nor countryside.
Rural decline and the despondency it gives rise to can be partly traced to the reduction in the number of people employed full-time in agriculture. The current competitive climate faced by the IDA, and the priorities of multinational companies investing here, also makes it more difficult to attract large investment outside the cities. There is also a significant "pull" factor which should not be ignored. The majority of new jobs are created in the services sector and by their nature, these jobs tend to be in towns or cities. Despite the possibilities of new technologies, jobs in retailing, financial services, health, education and commercial services still tend to be created in urban areas.
I am pleased that funding has been provided in 1996 for a pilot programme on the delivery of public services in rural areas. Under the programme projects will be developed using a single point of delivery for services in rural areas. Such an approach will make it more cost-effective to maintain services in areas with a low population, while developing new models for improved service quality. The programme will use a community-based approach and several local community groups are already working on the development of their projects. There is great potential for involving the local community in service provision and I look forward to progress in this area during 1996.
Rural areas, particularly the west coast, have a natural advantage from the point of view of the tourism industry and there should be continued expansion in this sector in 1996. The terrible events in London could affect this growth but there is still room for optimism. A well balanced tourism industry will provide employment throughout the west, often in rural locations. The unique problems faced by the west of Ireland result from its economic characteristics. It has an ageing population structure, a greater dependence on small farm holdings and a lower average level of income than the rest of the country. These difficulties are perceived within the region as barriers to economic and social progress. The problem is manifested most obviously in areas where population decline is affecting the viability of existing villages and towns.
The Western Development Partnership Board was established by the Government as a response to the problem of population decline. It was given the resources to prepare an action plan based on the target of population stability by the end of the decade at 1991 census levels. The partnership board forms part of the broader local development structures and they have now produced their action plan. This is currently being analysed with a view to a positive Government response to the proposals contained within it. This action plan is a further part of the western development initiative stretching back to the initial leadership provided by the bishops of the region. As such, it allows us to maintain a focus on the difficulties of the west, as well as the opportunities for development within the region.
One of the most positive aspects of Irish life at present is the renewed energy and vigour of the community development process. Every town and village in the west appears to have taken the effort to improve the economic life of their area. This process is facilitated by the funds available through the local development programme and community employment. I am pleased that the Minister for Finance has introduced further measures to improve the CE programme. These will reinforce the enormous role it plays in community-based development.
Long-term unemployment and poverty are not confined to the cities. The more dispersed nature of rural poverty can make it less visible but as recent studies have shown, disadvantage afflicts rural Ireland too. Community employment has just as great an importance for rural as urban areas.
On the first day of this month the report of the interdepartmental co-ordinating committee on island development was published. On the same day the Leader II programme for Comhdháil Oileáin na hÉireann was launched. These two initiatives are a significant step forward for the island communities. The Government has for the first time explicitly acknowledged the unique contribution of the offshore islands to Irish life. The report puts in place a strategic framework within which future decisions on island development can be taken. I am glad the Government has agreed to the financial envelope of £1 million and when work is completed on this matter, many people will have a happier and better life on our offshore islands.
I thank the Minister of State, Deputy Carey, for sharing his time with me. The 1996 budget was a good one, although people may say I would say that. The comments of Deputy Mattie Brennan brought a context to this debate which had been lacking. This year's budget reflects a trend which has been evident with regard to the management of public finances over the past ten years. The Deputy referred to the Tallaght strategy under the stewardship of Deputy Dukes as Fine Gael leader. That generosity of spirit is sadly lacking from the Opposition, particularly Fianna Fáil, in their reactions to a budget which continues the overall economic policies of the previous Administration.
The budget is a continuation of prudent management of public finances. To borrow a phrase from another arena, it takes a twin track approach, using the benefits of that prudent management on the one hand to continue to prime the economic pumps to generate greater wealth and on the other to ensure those who have been excluded from the benefits of additional wealth generation are included to a greater extent in that benefit.
The proof of the pudding is in the eating. In today's newspapers, the ESRI commented on the prospect of 5 per cent growth in 1996 and the creation of an additional 31,000 jobs. The incoherent babbling from Fianna Fáil is supposed to count as real opposition but that comment from an independent institution and the banks' actions in continuing to lower interest rates highlight the bankruptcy of the Fianna Fáil response. Their reaction is because they lack the generosity of political and economic spirit which was evident over the past ten years, particularly under the Tallaght strategy.
We are seeing the battle for the heart of Fianna Fáil. On one side the finance spokesperson, Deputy McCreevy, preaches austerity and prudent management but the battle is being won by the party's social welfare wing. One side claims the Department of Social Welfare ran amok, the other criticises the Government for failing to give adequate increases. There is no consistency or coherence in that approach. As I said, institutional confidence exists. Interest rates and inflation are low and mortgage rates are at their smallest level yet. That is the type of commentary and adjudication which is worth listening to when deciding what was achieved in the budget.
The other disappointing reaction to the budget came from the farming community. There are no better lobby groups than the farming organisations. Paper will not refuse ink, the broadcast media will not refuse commentary and when two organisations are competing for membership, the more outlandish and ridiculous their statements, the greater guarantee they have of access to the public airwaves and the print media.
Who benefits more from prudent management of public finances and low inflation and interest rates but the farming community? Notwithstanding that, numerous provisions in the budget were tailored specifically for the agricultural sector. As regards capital acquisitions tax, the current agricultural relief for gifts and inheritance is being increased from 50 per cent to 75 per cent. The flat rate VAT refund is being increased for unregistered farmers, mostly small farmers, from 2.5 per cent to 2.8 per cent. Tax on non-automotive LPG is being reduced by 2 pence a gallon. There are other incentives in the REPS scheme, where one can disregard the first £2,000 of income, incentives for leasing of land and relief for transfer of stock. As a representative of a rural constituency, I was disappointed at the begrudging recognition of that prudent management and the specific inclusions in the budget which were tailored for the agricultural community.
The single biggest problem facing the country is unemployment. Families are being reared and educated to graduate and technical level, wondering whether there will be jobs or they will be forced to emigrate. People get jobs and wonder if they will be secure and whether they will be able to invest in their home or educate their family to the same standard as themselves. These are all serious problems and in that regard 1995 was a good year. A total of 49,000 new jobs were created; if one subtracts the 10,000 on State schemes there was a net total of 39,000 economic jobs. As chairman of the Oireachtas Committee on Small Businesses and Services I want to put that figure in context. The IDA dealing with multinational companies setting up here and Forbairt dealing with large Irish-owned indigenous businesses between them created 7,000 or 8,000 new jobs, the bulk of them, some 6,000, created by the IDA. The investment of Intel, Apple Computers and General Instrument in my own constituency is very welcome. Nonetheless, over 30,000 of the new jobs were created by small indigenous Irish-owned companies. In that regard a most welcome feature of this year's budget was the reduction in corporation profits tax from 38 per cent to 30 per cent for the first £50,000 profits. The record of the Government over two budgets has seen a 25 per cent reduction in corporation profits tax which specifically focus on that sector which is delivering the greatest number of jobs, the sector which cannot afford the luxury of a boardroom decision to get up and leave, the sector that, by virtue of its roots in an Irish community, by virtue of its indigenous ownership, is not involved in profit repatriation but puts back into its business as much money as it can.
In the past few years there has been the failure to turn small firms into medium and large firms and a high rate of failure among start-ups. That was largely the result of difficulties with working capital. Reducing their tax obligations by 25 per cent in two successive budgets will significantly contribute to turning small firms into medium and big companies reducing the rate of failure.
There are still significant difficulties in financing start-up businesses. There have been a number of initiatives, including the access to a finance scheme most recently, and its predecessor, the small business expansion loans scheme. The committee which I chair is involved in a detailed analysis of this and it has found that the bulk of finance in this regard went to existing companies who wished to expand rather than towards financing start-ups. There is a need for the creation of a specific fund to finance micro-enterprises which may require only £4,000 to £6,000 to get off the ground but which are not seen as a good risk when they approach financial institutions. If we could have schemes such as we have had but tailored exclusively to start-ups, we would see greater job creation in this sector in the coming years.
The currency crisis, with the IR£ at £1.03vis-à-vis sterling, poses significant problems in certain sectors of Irish industry, particularly those exporting to the UK. Although we have a declining reliance on the UK market our dependence is, nonetheless, very significant. There may be difficulties under EU legislation in introducing specific schemes to resolve this, and some people have used this in arguments against the Maastricht Treaty and the Government's adherence to the principle of a single currency. However, the case for the discipline the Maastricht Treaty imposes on us and for a single currency has never been stronger, as evidenced by the currency crisis and resultant problems faced by certain exposed sectors of the economy, particularly the food and textile industries.
I would like the Ministers for Finance and Enterprise and Employment to again look at this area. Although there have been no significant job losses, there is a danger that we will not be able to sustain the present exchange rates over the long-term. The likelihood is that it will continue at the present rate and this will significantly affect the ability of small firms to ride out the storm. There is a need for something like the market development fund we had previously but which ran into difficulties in the context of EU competition law. Something needs to be done, and I welcome the initiatives in the budget relating to PRSI reductions.
The small business sector is the most dynamic. A small company increasing its workforce from two to three, or by 50 per cent, will never make the headlines. However, small businesses are contributing the vast majority of new jobs and deserve increased investment. When one takes into account the amount of money we invest in attracting mobile international investment through the IDA and through Forbairt investing in large companies, the return for the county enterprise boards and organisations like Údarás na Gaeltachta and Leader groups for the small funding at their disposal is far more significant. IDA figures last year for jobs created and sustained was about £12,000. That is an improvement on previous years, but county enterprise boards can deliver jobs much more cheaply than that. Additional investment in this area would be of far greater benefit to the economy compared with the large investments in organisations like the IDA and Forbairt.
The budget was positive, but a number of things need to be delivered on. Will the Minister for Finance give serious consideration in the Finance Bill to making available to the proprietors of small businesses and the self-employed the PAYE and PRSI allowances of £800 and £286 respectively? People who are putting their own resources into creating employment and taking real risks deserve some recognition. This allowance, which is available to employees, should also be available to those who create employment and employ themselves and others. That would be broadly welcomed by the small business community.
Despite the efforts in the 1995 budget, there are still difficulties with section 115 which give preferential status to the Revenue Commissioners when a business is in difficulty. We made some effort to resolve that last year but more needs to be done.
I wish to refer to the back-to-work incentives in the budget. In my opening remarks I mentioned sharing the fruits of a growing economy with those who have been excluded for a long time. I very much welcome the efforts to get long-term unemployed people back into economic jobs. However, many long-term unemployed people are unskilled and it is difficult to persuade employers, in an increasingly competitive and highly-skilled workplace, to take them on. I beg the Minister to consider making this incentive available to local authorities. If we could marry our two resources — on the one hand a large number of people who are unemployed and on the other huge amounts of work to be done, particularly by local authorities — we could make significant progress in tackling long-term unemployment. That £80 per week could be topped up by local authorities from their own resources to give an economic wage to people, and we would see tangible results from their employment by local authorities.
I need not remind the House about the condition of county roads. I welcome the significant increase in funding, but it is no substitute for manpower. Many of the long-term unemployed are unskilled anyway, and if local authorities could employ them it would offer a significant prospect of reducing long-term unemployment.
I welcome the budget and the 3 per cent increases in social welfare. I regret that Opposition members have the impression that 3 per cent represents an outlandish attack on the public finances for those who are most vulnerable in our society. The budget is a prudent and balanced one that reconciles the necessity to prime the economic pump to create additional jobs and share the benefits of a growing economy with the marginalised who have been left untouched by the economic miracle we have witnessed.
Ní raibh daoine ag súil le mórán ó bhuiséad na bliana seo agus ní dócha go raibh mórán díomá orthu ar fháil amach go raibh an ceart acu.
Tuigeann siad go bhfuil deacrachtaí bunúsacha ag na trí páirtithe sa Chomhrialtas. Is léir ón mbuiséad seo go bhfuil tionchar mór ag na fadhbanna seo ar na polasaithe atá so-dhéanta don Rialtas — i ndeireadh an lae tá ag teip orthu teacht ar réiteach ar aon cheist dheacair.
Dá dheascadh sin níl an Rialtas ag rialú. Ní féidir leo é a dhéanamh mar tá siad ag dul i dtrí threo éagsúil ag an am gcéanna. Ceapann daoine áirithe nach ndearna an tAire é seo nó é súid i mbliana mar go mbeidh buiséad réamhthoghchán le cur le chéile aige an bhliain seo chugainn — ag tús nó ag deireadh na bliana. Measann siad go mbeidh dea-scéala aige ag an am sin agus go mbeidh moltaí aige a dhéanfaidh difríocht fhiúntach dóibh agus a chabhróidh leo ó lá go lá.
Sílim go bhfuil baol ann nach n-éireoidh leis an Aire buiséad mar sin a thabhairt isteach. Tá an deighilt idir na páirtithe chomh mór sin faoi láthair agus an t-easaontas chomh soiléir go bhfuil sé deacair a chreidiúint go leanfaidh siad le chéile nó go gcuirfidh siad buiséad tríd an Dáil díreach roimh an toghchán.
Cheana féin is léir go bhfuil na daoine neamh-tofa — na daoine leis an bhfíorchumhacht — ag iarraidh an seans is fearr a fháil chun long an rialtais a fhágáil. Bí cinnte de go bhfaighidh siad an deis sin faoi mar a tharla ag deireadh 1994 agus i 1987. Bí cinnte freisin go mbeidh fadhbanna uafásacha le réiteach ag an Rialtas nua faoi mar a bhí ag Fianna Fáil i 1987. Ní gá ach stracfhéachaint a thabhairt ar an dá bhuiséad a chur an tAire seo os ár gcomhair chun a bheith éadóchasach faoi chúrsaí na tíre sa bhfad-théarma. Níl ar siúl ach piocadh anseo is ansiúd agus na réitigh atá riachtanach a chur ar athló.
The national debt is running at £30 billion having increased by £1 billion in 1995. We are gradually slipping back to the grossly incompetent borrowing policy of the Fine Gael-Labour Coalition Government of 1982 to 1987 which doubled the debt from £12 billion to £24 billion. No other Government so pauperised its citizens and sold their future for short-term political gain. Let all who value their children's rights and future lay down clear ground rules and financial parameters that may not be breached.
This budget provides for a further Exchequer borrowing requirement of £583 million in 1996. The Minister and his apologists represent this as a negligible percentage of GNP and in certain circumstances it could well be so. However, we receive record levels of EU transfers which we know cannot and will not continue ad infinitum. They contribute to the apparently healthy financial situation and artificially inflate GNP and GDP figures. Instead of increasing our EBR we should look at ways to reduce it in years of economic growth. Economic trends are cyclical and factors will come into play which will reverse current growth trends. Some are flagged well in advance but others come out of the blue and are influenced by political and other factors over which we have no control.
The Government must take the long-term view as well as looking after its friends in the short-term. The long-term prognosis resulting from budgets of this nature is depressing and worrying. Participation in economic and monetary union will present special challenges. There will be less national control and no room for manoeuvre in currency devaluation. There will be further demands for State intervention to support indigenous industry or other elements of the economy. It has the potential to be an exciting time for the economy but, if not properly prepared for, employment prospects in many Irish firms could be damaged. We boast that we are one of a few countries likely to meet the Maastricht guidelines but we need to take account of the factors that contribute to our being in that position which may not exist in the future.
The Minister and other spokespersons frequently respond to Fianna Fáil's criticisms of their policy by accusing us of demanding extra services but wanting a reduction in taxation and borrowing. This is a superficial representation of our approach. No one likes to be taxed but there is widespread acceptance of the need to pay for certain services and for the transfer of resources from the wealthy to the poor.
A good Government ought to be sufficiently transparent and accountable to show people that their hard earned money is well used in their name. Despite the Taoiseach's undertakings in the early days of his coming to office the opposite is clearly the case. Part of the problem lies with the ideological incompatibility of the Government parties which makes it almost impossible to reach an agreed long-term strategy. A number of speakers referred to lack of political and financial leadership and a clear coherent policy. It is possible to put policies forward which provide for the services we wish to have and are fair to those expected to pay for them.
In my constituency three second level schools in Kilrush amalgamated. Difficulties about site acquisition were subsequently resolved. Everyone accepts the need for a new school. If it had been built last year it would have cost less than it will this year. The school will be built sometime, probably in the next two or three years. While the Department procrastinates teachers and pupils must go between three sites which is an appalling imposition on them. People are greatly discommoded but at the end of the day the school will be built. There is urgent need to include it in the 1996 capital budget rather than the 1999 one.
Tourism was virtually ignored in the budget even though it is a major contributor to revenue and employment. The political correctness of the 1990s made jobs in tourism somehow inferior and issues were raised which intended to do down tourism and those who invested in it. It would be dangerous for any Government to go down that road. The grant to Bord Fáilte has been reduced by 11 per cent. Wise investment in product development and marketing will yield results in terms of jobs and foreign earnings.
This week the overseas tourism marketing initiatives decided to drop advertising on British television. As most of our visitors come from Britain, surely we should have more rather than less advertising there. I am appalled that the Minister refused to take a special notice question today tabled by me and Deputy Andrews on the grounds that the matter was the responsibility of Bord Fáilte, OTMI, RTOs or SFADCo. Is the Minister responsible for anything? Is it any wonder that tourism interests look to the Opposition to put forward their point of view?
Deputy Andrews' speech on the peace process a few weeks ago was regrettably prophetic when he referred to the dangers of weak political leadership. Unfortunately the peace process is going through a very difficult patch — I hope that is all it is. The implications for tourism are quite frightening. There is an urgent need to initiate counter measures in advertising as quickly as possible. It is not good enough to say there is nothing we can do — we can always do something. I call on the Minister to take action and stop hiding behind Bord Fáilte or whoever else seems to have responsibility at a particular time.
There has been a welcome increase in tourism in Dublin and the eastern region which we want to continue. Dublin can appeal to the short break market. However, it also needs to appeal to tourists who have a great deal of money to spend. Tourists do not make a great contribution to the economy if they do not have plenty of money to spend.
The failure to attract to Shannon scheduled services from Europe, particularly British cities other than London, is very worrying. That nothing is being done about it is even more worrying. We have failed to attract significant new transatlantic business. A few years ago, when the Fianna Fáil-Labour Government faced a difficulty in relation to Aer Lingus, the Opposition tabled a cheap, points scoring motion. Unfortunately, their action at that time has not been matched by action in Government. I received very little support at the time but concessions were wrung from Fianna Fáil Ministers by unorthodox and unapproved political tactics. Shannon has held its core position enabling it to be built on in the future. However, there is no such building, development or effort even when those who were so vocal in Opposition are now in Government.
There is also an urgent need for services to Waterford, Kerry, Galway, Knock, Sligo and Carrickfin. These areas do not have the ferry access Dublin and other east coast areas have. The only realistic way to increase the number of tourists and open up new markets is by providing such services. Those areas have a huge concentration of bed nights available and have had very disappointing and low occupancies recently. Some of them experienced a drop in revenue at a time when we had record increases in tourism figures. A major Donegal hotelier is about to open a hotel beside the Bleeding Horse pub. I wish him luck, but is he making a statement about how he sees tourism developing in the north-west as opposed to Dublin?
The IHF and ITIC expressed great disappointment in the budget. There is no extra money for marketing which is the life blood of the industry. There are no product development concessions, which would not involve the Government in direct expenditure and would encourage hoteliers and others to invest in better products and upgrade existing products. That opportunity must be grasped very soon before it is lost.
The special resorts scheme introduced in the 1995 budget is having very little impact. No development has arisen from it in Lahinch, which is very near where I live. Despite there being a couple of hundred applications for planning permission for tourism related developments, there were no approvals because the sewerage scheme is substandard. The county council submitted plans three or four years ago. It upgraded the plans and submitted smaller plans which might meet the Department's budget but there has been no movement. An excellent scheme which offered the opportunity to revitalise a resort which had fallen on difficult times cannot be availed of.
The lack of water and sewerage facilities is also inhibiting development in the famous spa town of Lisdoonvarna. The Minister's former colleague, who is the biggest hotelier in the town, is in an impossible situation. The application for funding was regarded as the first and best Cohesion Fund application in the country. Unfortunately, despite the then Minister for the Environment, Deputy Michael Smith, allowing a fairly substantial grant in 1994 in the expectation of getting Cohesion Funding, no money has been provided by this Government.
Debate adjourned.