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Dáil Éireann debate -
Thursday, 30 Jan 1997

Vol. 474 No. 2

Ceisteanna — Questions. Priority Questions. - Tourism Funding.

Tony Killeen

Question:

4 Mr. Killeen asked the Minister for Tourism and Trade if he will outline the various bodies, funded wholly or partly by the State, which disburse funds to tourism related projects; and the means, if any, by which he is consulted in relation to the activities of such bodies or of their funding Department as it relates to tourism. [2530/97]

The three principal agencies operating under the aegis of my Department which disburse funds to tourism related projects are Bord Fáilte, Shannon Development and CERT, the financial allocations in respect of which are contained in the annual Estimates for the Public Services. My Department serves as lead Department for the Operational Programme for Tourism under which EU grant assistance is provided to develop tourism over the period 1994 to 1999.

Following approval of grant applications by independent management boards, Bord Fáilte and Shannon Development make European Regional Development Fund funding available for product development and marketing. In addition, CERT provides some ESF funding to the private sector for training initiatives to complement training provided directly by CERT. The Department of Arts, Culture and the Gaeltacht is the implementing agency for the sub-programme for the development of natural and cultural tourism and the Department of the Marine implements the tourism angling measure. The main co-ordinating mechanism for these agencies and their expenditures under the operational programme is the national monitoring committee which is chaired by my Department and on which all relevant Departments and State agencies are represented.

Funding for tourism initiatives can be provided under other operational programmes, including the operational programme for agriculture, rural development and forestry and the operational programme for local urban and rural development, and a number of other Community initiatives such as the Leader Programme, INTERREG programmes, both Northern Ireland and maritime, and the special Programme for Peace and Reconciliation. The International Fund for Ireland also has a tourism programme. My Department is involved in the co-ordination and operation of those programmes and initiatives through direct consultation, participation in decision making working groups and membership of the relevant monitoring committees.

Does the Minister agree there is a major structural weakness in the position as outlined by him? The fact that a plethora of agencies is involved dissipates efforts and resources and leads to lack of focus in developing the tourism product as well as to confusion for potential investors in this area. Has the Minister plans to simplify this matter, perhaps through setting up co-ordinating bodies locally or providing a guide to these services which would facilitate those who wish to make an investment in tourism?

The main co-ordinating mechanisms for all the agencies involved is the national monitoring committee chaired by my Department, on which all relevant representatives of the various Departments and State agencies are represented. The operational programme is run in co-operation with the European Commission. Information for would be investors or applicants for assistance is available. It is very simple to issue a clear pamphlet or leaflet indicating the sources of assistance and when applicants apply to the regional tourism organisations there is a clear focus in terms of their application. The national monitoring committee oversees and has a very clear analysis of applications, the way they are assessed and from what source the funding comes.

In view of the importance of tourism, I suggest that the Minister considers bringing under the remit of his Department tourism-related measures currently under the Department of Arts, Culture and the Gaeltacht and the Department of the Marine. Not only would that clear up the confusion for investors but it would much more effectively focus the future strategy of tourism. Will the Minister agree there is a very good case for doing that? On the structure of tourism generally, is the Minister aware of the confusion between the roles of Bord Fáilte, SFADCo and RTOs, leading to an ongoing weakness in the industry which needs to be addressed?

The confusion is sometimes self-generated. A previous Government laid down the regulations relating to the remit of SFADCo and its responsibilities for tourism, and Government action would be required to change that legislation. As regards bringing all these measures under the one Department, I do not agree with the Deputy that there is confusion. Deputy Andrews suggested during the Estimates debate last year that a single Department of Tourism be promoted. I assume his intention — I do not believe he will have the opportunity to do so — is to being all the elements from the various Departments under a single Department, to be implemented under a single operational programme. That would require a decision by the Taoiseach of the day in co-operation with the European Commission. It is not mentioned in the Fianna Fáil document published recently, which refers to amalgamating the Department of Tourism and Trade with the sporting element of the Department of Education. I am not sure how the stand alone proposal by Deputy Andrews tallies with the document from the Fianna Fáil junior spokesperson in the other Department. In any event Fianna Fáil will not have an opportunity to implement that aspiration.

Will the Minister agree that with so many agencies providing funding for tourism related projects, the amount of funds available is depleted? There is lack of funding for items such as registered bed and breakfast accommodation. County enterprise boards, the IFI, Leader groups and Bord Fáilte have made a decision not to fund such ventures, particularly in Border areas and in Inishowen. Priority should be given to these areas in terms of accommodation. Does the Minister agree that since funding is provided by so many agencies it is not focused on basic facilities for tourists?

Deputy Keaveney has a strong attachment to her beloved Inishowen, and rightly so, but if all the funding was provided by one agency, sectors in various areas might suffer unduly. For instance, under the Operational Programme for Tourism, all areas are eligible to apply for assistance. In order to concentrate on specific areas which need attention, funding is made available through, for example, the INTERREG fund and the maritime fund, dealing with Border areas, the operational programme, the tourism element of the Programme for Peace and Reconciliation, again dealing with Border areas and the tourism element of the International Fund for Ireland as well as the Leader II Programme and other programmes. The Border areas and Northern Ireland have an additional concentration of funds available to them under those headings. However, that might not be the case if funds were allocated under a central development agency. In terms of the number and nature of the applications submitted, funding for areas referred to by the Deputy, such as accommodation in Border areas, which have suffered unduly over the past 25 years and longer, might lose out to an even greater extent. That is why these funds are targeted to help specific areas in presenting their case for promotion.

Will the Minister clarify if money is available to fund the provision of accommodation under the programmes he outlined?

Accommodation is generally not grant aidable under the Operational Programme for Tourism, but under the Leader II programme, depending on the Leader group dealing with the matter, the group, if it so wishes, is entitled to consider some allocation for the provision of accommodation. Under the peace and reconciliation initiatives there is some support for the provision of accommodation. Such provision is a consequence of a commercial belief in investment. If one provides extra rooms which will bring in additional income, there is a belief that the overall product in the area will work and will be a thriving success. Bord Fáilte has never grant aided accommodation in that context, but some assistance is available under some of the headings of those measures.

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