Vol. 477 No. 4
9 Mr. Doherty asked the Minister for Tourism and Trade the proposals, if any, he has put to the Department of Finance to encourage development of the tourism product in the upper Shannon catchment area by means of tax concessions or designation in a similar way to the special resorts scheme. [9259/97]
The pilot tax relief scheme for certain resort areas was introduced in the Finance Act, 1995, and operates for a three year period from 1 July 1995. The purpose of the scheme is to renew and update the tourist amenities and facilities in 15 designated areas.
As I have already mentioned, it has been the practice for me to consult from time to time with the Minister for Finance, who has primary responsibility for the scheme, about the possibility of extending it but we have agreed not to make any changes to its scope or to designate any new areas until the present three year pilot period has elapsed and a full evaluation has been completed. In this context, ongoing meetings are taking place at present between the Department, the Revenue Commissioners and Bord Fáilte with a view to evaluating the impact of the scheme. The evaluation is not expected to be finalised until later in the year and it is simply too early to know the outcome of it.
I am disappointed the Minister's response to the question of special designation for the upper Shannon region was not more positive. He will be particularly aware that, since the restoration of the Ballyconnell-Ballinamore Canal, there has been a considerable increase in tourism activity in counties Cavan, Fermanagh and Leitrim but there is a shortage of investment in tourism in the area. There has been some notable investment but there has been little or no investment in the north-west of Cavan near the source of the Shannon in the Cuilcagh mountain range. Will the Minister consider introducing some measures to encourage private sector investment to improve the tourism product in an area which is renowned for its beauty? A quality tourism product could be generated there.
This question is slightly different to the one in the name of Deputy Doherty, which sought an extension of the seaside pilot relief scheme to the Shannon basin. If one dropped the word "seaside", one would be left with a pilot scheme which would be suitable anywhere.
Why not call it riverside?
About 49 areas for which designation was sought this year, were submitted to the Department of Finance for agreement but we had agreed on the structure.
The purpose of the European Regional Development Fund programme is to encourage private sector investment. This initiative has stimulated investment in buildings and other facilities in some areas but the European Regional Development Fund programme is for private or public sector involvement in the provision of tourism in the Deputy's area and other areas. That is why, for instance, Bord Fáilte was prepared to provide £4.5 million for a major development at Lough Kee forest which did not proceed because the conditions were not met by the proposers. The opportunity is there. The mid-term review of the Operational Programme is under way and there will be further funding in the various sectors for which private and public enterprise can apply.
I share the Deputy's view of the Ballyconnell-Ballinamore Canal. It has given a great stimulus to that area and a range of projects are being considered.
The European Regional Development Fund excludes grant assistance towards the provision of accommodation. Tourism accommodation is in very short supply in the Glangevlin, Dowra and Blacklion areas of County Cavan close to the source of the River Shannon. I had in mind a scheme of assistance which would encourage the provision of such accommodation.
Is the Deputy referring to hotel or other accommodation?
I am referring to bed and breakfast accommodation and small hotels.
The Deputy tabled another question on that matter. Under INTERREG and IFI funding arrangements, some small assistance is available for that kind of accommodation. This only applies to Border areas because of the economic, social and other difficulties people have experienced there over the past 25 years or so. That information is included in the reply and the information will be sent to the Deputy in the normal way.
