Written Answers. - Tourist Accommodation.
James Leonard
Question:
33
Mr. Leonard
asked the
Minister for Tourism and Trade
the discussions, if any, he has had with the agencies administering the Border funding regarding the provision of grant aid for accommodation which is so essential in that region if it is to succeed as a tourist destination.
[16727/96]
As I have indicated in response to previous similar Dáil questions, the provision of tourist accommodation is a matter for the tourism industry and depends primarily on individual operator's commercial judgement as to the manner in which to respond to levels of demand. The industry has responded well to market forces and there has been a steady expansion in tourism accommodation, especially in recent years.
The Operational Programme for Tourism provides assistance for accommodation in very specific circumstances, that is, for specialist accommodation at recognised outdoor pursuits centres, branded walking routes and at approved residential equestrian centres. In general, in keeping with the overall strategy in the programme, support is aimed primarily at the enhancement of existing investment rather than supporting new developments. I should add that the funds provided under the programme for tourism development projects are generally over-subscribed and, unfortunately, those available for specialist accommodation related developments are fully committed. These and other aspects of the programme's operations will be considered fully in the context of the mid-term review of the programme currently under way and due for completion early next year.
Other EU funded programmes such as the Programme for Agriculture, Rural Development and Forestry and the Leader II Programme administered by the Department of Agriculture, Food and Forestry and the Local Urban and Rural Development Programme provide support for smaller tourism initiatives. In the Border counties assistance may also be available under the IFI and INTERREG Programmes and the Programme for Peace and Reconciliation, again on a limited basis. This includes limited provision for accommodation projects on a basis compatible with that in the Operational Programme for Tourism.
All registered and approved tourism accommodation has been deemed eligible for low interest loans under the access to finance scheme launched last September by the Minister for Enterprise and Employment. Some £52 million of this £208 million fund has been specially earmarked for tourism projects throughout the country. However, I understand that virtually all of the funds available under the scheme have been committed at this stage. A similar scheme, especially for the Border counties, was introduced in July 1995 under the Peace and Reconciliation Fund. I understand, however, that all the funds available under this scheme have also been committed. Investment in registered or approved tourist accommodation in any of the resort areas designated under the pilot tax relief scheme for certain resort areas may also qualify for generous tax relief under the scheme.
Overall, I am satisfied, on the basis of my contacts with the agencies and other interests administering the programmes and schemes to which I have referred, that adequate support mechanisms are in place to stimulate tourism development, including the provision of tourist accommodation in the Border region but will of course review these arrangements as necessary.
In July 1996 the Government decided, on foot of the report of the Task Force on Funding Arrangements in the Border Regions, chaired by the Minister of State at the Department of the Taoiseach, Deputy Carey, that there was a need to ensure that people generally were aware of the specific programmes available in the Border counties and the focus of these programmes. Responsibility for implementing the specific measures agreed, such as production of a pre-application form, a guide to funding under the programmes aimed specifically at the Border regions and a newsletter including information of projects funded in the region rests with the Department of Finance. The arrangements will be monitored by the Task Force.
