Vol. 495 No. 5
10 Mr. Allen asked the Minister for Tourism, Sport and Recreation if he has recently met the manager of Dublin Corporation to discuss its proposal to introduce a room tax in the Dublin area; and if he will make a statement on the matter. [20644/98]
I have not met the manager of Dublin Corporation to discuss the matter referred to by the Deputy. Any proposals to introduce local taxes would be a matter for consideration in the first instance by the Minister for the Environment and Local Government and the Minister for Finance and would have to be considered in the widest context, including implications for tourism and use of any funds raised.
I am amazed the Minister has not made his views known to Mr. Fitzgerald. Does he share my views that the introduction of such a tax would make our tourism industry very uncompetitive? Does he agree this proposal is a very bizarre one arising from an air of uncertainty in relation to the funding and development of tourism post 1999? Will he outline his views on the proposal to introduce a room tax? There is no point in saying it is a matter for the Minister for the Environment and Local Government or the Minister for Finance. If they were to agree to the introduction of such a tax, surely the Minister would agree it would do untold damage to the development and marketing of Irish tourism. It has already done severe damage in that many of the international media have picked up on the proposal. For the sake of tourism, will the Minister issue a clear condemnation of the proposal?
I have made my views known on this issue which is a matter for the Ministers for the Environment and Local Government and Finance. I have also stated that any tactics introduced in this area would have to be very carefully discussed. I agree with the Deputy that the introduction of a tax would have grave implications for the tourism industry and all of these matters should be discussed with the various parties concerned.
I welcome the Minister's condemnation of this proposal. Will he inform the House of how he proposes to fund the development and marketing of tourism when the current European funding runs out in 1999?
That is broadening the matter somewhat. Question No. 10 is quite precise. The Deputy would be well advised to table a separate question on the Minister's proposals for funding.
The matter relates directly to the funding of tourist facilities and surely the Minister has his own opinions on how the tourism industry is to be funded and developed after the current tranche of European funding expires.
There is a separate question relating to that matter. We have brought forward a strategy document for the period 2000-06. Another document has been issued by ITIC. Both documents are currently being discussed in the context of funding for the post 1999 period. It is important that the matter is discussed. The Deputy is aware that the last tranche of Structural Funds did not become available until late 1994. He is also aware that my Department needs advance knowledge of the Structural Funds which will become available as marketing has to be done a year beforehand. The Deputy's question is relevant but the documents are being discussed with ITIC. A number of proposals have been brought forward by us and the industry.
Has the Minister had discussions with the Minister for Finance and the Minister for the Environment and Local Government regarding the proposal of Dublin Corporation? Has he made his views strongly known to both Ministers? Is he aware that the introduction of such a tax would add in the region of £200 to the cost of a holiday for a family of five in the city?
I have corresponded with the Minister for the Environment and Local Government on this issue. A letter from the Minister stated that on a general note, the introduction of any new taxes, either central or local, could not be a decision taken lightly, and any such proposal would have to be considered in its widest context.
