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Dáil Éireann debate -
Wednesday, 6 Nov 1996

Vol. 471 No. 2

Adjournment Matters. - Tourist Resort Scheme.

Ba mhaith liom buíochas a ghabháil leis an Aire as ucht teacht isteach agus éisteacht len a bhfuil le rá agam.

In the 1995 budget, the Minister for Finance announced a new scheme of tax relief for traditional seaside resorts. A pilot scheme came into effect in July 1995 for a period of three years and the scheme operates in 15 seaside towns. Only one town in County Galway, Salthill, was designated. It was a glaring omission not to include Clifden in the scheme.

Clifden town was founded in 1820. It now possesses several large hotels, a wide range of shops, galleries and restaurants and a new 100 house holiday village. A beach and yachting pier have also been developed outside the town. Clifden is often called the capital of Connemara and provides regional services, such as the fire services, Telecom Éireann and the ESB. There is also a library, courthouse, hospital and community college for second level education in the town. Because of its age the of the town is in need of urgent regeneration. Its active chamber of commerce has been doing all in its power to stimulate development in the town, but an incentive scheme, such as the tourist resort scheme, is necessary to provide the necessary kick start to ensure major regeneration of the core of Clifden town takes place.

As the main centre in west Connemara, Clifden is the main population centre along the entire coastline of Connemara and south Mayo between Galway city and Westport, a distance of 150 miles. The coastline from Donegal to Westport, a distance of only 300 miles, has four designated resorts. Clare and north Kerry have three designated resorts, Lahinch, Kilkee and Ballybunion. Cork and Waterford have three designated resorts along a coastline of 50 miles. There is an obvious gap to be filled in Connemara which has the largest land area of scenic landscape in any country.

I have always found it difficult to understand why the Government passed over Clifden when designating towns for the scheme. I call on the Minister to redress this omission and include Clifden in the scheme. Its inclusion would facilitate the necessary investment in tourism related products and would have a major economic impact not only for the town of Clifden but on the entire Connemara area. In view of the major effort being made by the people of the town, I ask the Minister not to put this proposal on the long finger or to give the excuse that the scheme will be reviewed after three years. I compliment Galway County Council for making a submission this year in support of such designation on its thorough work in promoting the case of Clifden. Ba mhaith liom arís mo bhuíochas a ghabháil leis an Aire as ucht éisteacht leis an méid a bhí le rá agam agus beidh mé ag súil le dea-scéala uaidh. Muna mbeidh sé le fáil inniu beidh mé ag súil leis sa Cháinaisnéis — agus níl mé ag caint faoin dara Cáinaisnéis an bhliain seo chugainn ach faoin chéad cheann.

I know the area in question and the Deputy fails to understand the purpose of the scheme which is not to provide tax assistance or any other type of financial benefit to areas that are growing naturally due to normal market forces. If any town in the west is growing as a result of normal market forces, driven by tourism and other factors, including the semi-State companies to which the Deputy referred, Clifden would probably get one of the prizes. It would be in the top five in that regard.

The scheme was specifically designed to bring an additional non-market measure of financial assistance to traditional seaside resorts which, because of a change in the pattern of domestic tourism, were no longer benefiting from that type of activity and were not naturally generating growth. As the Deputy is aware, I am familiar with the town during the holiday seasons, including Easter, Christmas and the summer. The Deputy represents the area with the greatest degree of alacrity and much presence and he is aware that Clifden is a progressive town which is currently expanding and adding each year to the range of facilities on offer. It would contradict every tenet of the scheme which covers 15 towns to include a town which is manifestly generating economic growth and tourism development. I do not need to remind the Deputy of the massive development, Clifden Glen, on the main Clifden to Galway road and other developments in the region.

The origins of the scheme can be traced to the current Fianna Fáil spokesperson on finance, Deputy McCreevy who, sadly, was unable to persuade the current leader of his party of the merits of such a scheme. The proposal was on the record in the Department of Tourism and Trade and reprsentations were vigorously and earnestly made by Deputy McCreevy. However, it did not find favour with the current leader of the Fianna Fáil Party when he was Minister for Finance. It found favour with me, not because of the persuasive powers of the Minister, Deputy Kenny, although he has many powers to bring to bear on such measures, and I introduced a scheme which failed to pass the test of viability by the current Fianna Fáil leadership and the occupant of the Department of Finance at that time.

The scheme was confined to 15 towns in different parts of the country which were traditional seaside resorts but were no longer enjoying that type of domestic holiday market.

I suppose Westport falls into that category?

Yes. It is also in the constituency of the Minister of State, Deputy Kenny and it came within that category.

The Minister could have fooled me.

If Deputy McCreevy was unable to persuade Deputy Ahern of the merits of the scheme in principle, it is not unreasonable that a Deputy who has the ability to persuade me of the scheme's merits could convince me of the unique claims of his constituency. I had no difficulty including Westport as one of the 15 towns which qualified for the scheme. However, Clifden does not need the scheme.

Given the economic boom which has been brought about in tourism by this Administration, Clifden does not require the scheme. The Deputy fails to understand the economics which underpin it. Given that the scheme has been in operation for only two years, it would be wrong at this stage to add another town on a once off basis to the existing number involved. When it becomes clear how well the scheme functions, the position may be reviewed. If at that stage the boom in tourism has tapered off and Clifden needs an additional boost, which I suspect will not be the case, it will be sympathetically reviewed. I hope a Fianna Fáil Administration will not be in place at that time to make a judgement because it will have a negative view as it did previously.

Is Ringsend included?

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