Dáil Éireann debate -
Tuesday, 3 Apr 2001

Vol. 533 No. 6

Private Members' Business. - Foot and Mouth Disease: Motion.

Mr. Flanagan:

I move:

That Dáil Éireann, conscious of the restrictions and regulations imposed as a result of the current foot and mouth disease emergency, calls on the Government to establish a special task force to work in conjunction with an appropriate economic sub-committee of Cabinet, the role and function of which shall be to carry out an immediate economic impact assessment of the devastating effects to the economy and business as a consequence of foot and mouth disease with particular reference to the agri-food sector, food processing, transport and haulage, tourism, sporting and all outdoor pursuits, entertainment, leisure, bookmaking, hotel/restaurant, catering industry and many employment sectors throughout the economy where already hundreds of lay-offs have occurred and where thousands of job losses are threatened resulting in hardship and trauma for thousands of families and further calls on the Government to complete such an assessment without delay with a view towards introducing an appropriate range of measures and reliefs in the form of an aid package to mitigate the loss and damage involved.

I wish to share my time with Deputies Jim Higgins, Perry, Ring, Stanton, Boylan and Sargent.

An Leas-Cheann Comhairle:

Is that agreed? Agreed.

Mr. Flanagan:

A disturbing report in The Irish Times today refers to the movement of livestock in the exclusion zones on both sides of the Border. It appears not to be isolated but substantial in nature. Everybody knows that the movement of animals, especially sheep, is the principal means by which the current outbreak of foot and mouth disease is spread. Those who move animals within the exclusion zone are criminally negligent and show wanton disregard for their neighbours. They put their own selfish interests before the national interest and they must not be allowed to ride a coach and four through the rules and regulations.

When the slaughter policy in the Cooley peninsula is complete it is essential that the Department of Agriculture, Food and Rural Development checks the number of sheep slaughtered in each farm against headage payments claimed by the farmers. It is imperative that the Department's compensation scheme for slaughtered animals does not provide the dishonest few with another opportunity of unlawful gain. The total number slaughtered must correspond with the total number paid for.

While the efforts so far in combating the spread of the disease are laudable the same cannot be said for the contribution of the Minister for Tourism, Sport and Recreation or the Tánaiste and Minister for Enterprise, Trade and Employment when dealing with the economic consequences of the current restrictions. Widespread reports of lay-offs, job threats, shortage of cash and a general economic down turn have shown real and serious collateral damage over a range of enterprises and businesses, resulting in individual family hardship for thousands of citizens.

The State should prepare an appropriate plan to deal with the adverse economic fall-out, which is neither exclusively agriculture or tourism in nature. The crisis permeates a huge range of economic and business activity and cannot be understated. It was natural and understandable that when it began the Government should have erred on the side of caution as regards restrictions. Now that we understand more clearly how the disease is spread we need to target the message more carefully.

The Government is giving contradictory signals. On the one hand, its advertising campaigns advise people not to visit the countryside while on the other hand, it declares that the countryside is open for tourism business. There needs to be a scheduling of restrictions and regulations that will first and foremost allow a proper balance to be achieved between reducing the risk of spreading the disease and jeopardising jobs and normal economic activity.

The problem to date is threefold. First, the cancellations of events, including St. Patrick's Day festivities, conferences, meetings and festivals; second, the closure of facilities, including parks, tourist houses and hill walks and, third, adverse publicity throughout the world, especially in the US. We need to know what is open for the forthcoming Easter holidays.

The Government needs to identify and quantify the extent of the problem. It can only do so by setting in place an appropriate economic sub-committee of the Cabinet and a further commit tee involving appropriate agencies to work alongside it. We urgently need an economic impact assessment of the crisis. I have called previously for an interdepartmental group to quantify the economic impact of the disease. Specific sectors, such as animal transport, haulage, livestock marts – where, already, 2,000 jobs are threatened – horse racing and other sporting activities and outdoor pursuits have come to a standstill. Tourism, especially rural tourism, has been dealt a body blow. It is estimated that up to £500 million may be lost to that industry.

We are hearing tales of hardship every day involving businesses and people. Thousands of businesses have suffered a major drop in income. Small businesses involved in rural tourism are under severe pressure. Curtailing foot and mouth disease and preventing it spreading is in the national interests but it is not adequate that the Taoiseach and the Minister for Tourism, Sport and Recreation should be so dismissive of any relief measures for those most directly affected. Surely it is not beyond the capacity of the Government to devise a range of relief measures for those suffering most.

The Government should consider a menu of reliefs, including certain rebates on PAYE, PRSI and VAT; an initiative to ensure sympathetic consideration by banks, financial institutions and the Revenue Commissioners; a rebate of local authority rates on businesses worst affected; the possibility of an extra public holiday later in the year when people might be encouraged to visit the countryside and a vigorous diplomatic and marketing programme in the twin areas of tourism and the food export business loudly proclaiming that Ireland is open and safe. To combat the negative impact the disease is having on the perception of Ireland and Irish food overseas we need an imaginative and well funded promotional and marketing campaign focusing on the quality of Irish food and the Irish tourism product. This campaign should be supported by a well directed and vigorous effort by every Irish embassy.

When the present crisis is over we urgently need a cost benefit analysis of the agricultural policies pursued by the State. It should be clear to all that bigger is not necessarily better. The industrial style farming and processing methods, supported by the Department of Agriculture, Food and Rural Development, and significant elements of the farming community, have had a serious impact on animal welfare and food safety in addition to having devastating economic consequences when things go wrong. The collection of animals in large number and transporting them long distances in stressful conditions is a recipe for spreading disease and undermines the quality of the final product. Livestock marts should give serious consideration to developing a fair market in livestock without collection in mart premises. Modern technology may end the necessity for collecting animals in central locations, such as marts, to create a market.

Local craft butchers should be supported and a financial package put in place to allow smaller local abattoirs meet EU hygiene regulations. Fianna Fáil promised this in its general election manifesto but, again, it has failed to deliver. Abattoirs have been shut down and jobs have been lost as the local butcher in many towns has disappeared.

Given the close link between tourism and agriculture, rural tourist pursuits are facing a spring and summer of devastation beyond the control of the proprietors. What is needed first and foremost is identification and quantification followed by Government action to aid and assist the thousands of small and medium sized businesses in every parish suffering trauma, financial loss and damage due to this crisis. I urge the House to support the motion.

Mr. Higgins

(Mayo): This year was to have been the best ever tourism season. The myriad of attractions the country so assiduously built up over the years had been aggressively marketed and sold abroad. Bookings and inquiries were up, indications from overseas trade fairs were never better and the market was due to grow by 5%. What was to have been a dream year is now turning out to be a nightmare.

Tourism is taking a terrible hit from the foot and mouth crisis. Tourism interests are hurting badly. Instead of the St. Patrick's Day celebrations kick-starting the season, all parades were called off and hotels, guesthouses and tour buses lay empty and idle. Matters have not improved. Deposits have been returned, flights and sailings have been cancelled and a sense of gloom and despair hangs over an industry which each year brings in 6.3 million foreign visitors and earns more than £4 billion for the economy.

While the tourism industry has more than willingly co-operated with the national campaign to keep foot and mouth disease out of the country, there is an understandable feeling in the industry that its contribution is not appreciated or recognised in tangible terms. The point can rightly be made that if a farm animal cannot be sold today or this week it can be sold tomorrow or next week. By contrast, the revenue from an empty hotel room tonight cannot be recouped next week or next year. The further point is made that if a farmer has to slaughter an animal under the foot and mouth disease cull scheme he is rightly generously compensated. However, if a coach operator, airline or car ferry operator is left with empty seats because of the crisis there is no compensation or concession. It is a perishable commodity.

Of course we must do everything possible, within reason, to protect the agricultural sector, to keep the dreaded scourge of foot and mouth disease out of the country and to ensure that the British catastrophe is not visited here. We must also introduce a sense of balance in our approach. Approximately 150,000 people are employed in the tourism industry, far more than in agriculture. Bord Fáilte has approximately 850 hotels, comprising 40,000 rooms, and 488 guesthouses on its books. Just under 70% of hotels and guesthouses are small, family run enterprises with less than 50 bedrooms. More than 57,000 are employed in hotels and a further 3,260 in guesthouses. More than 90% of the jobs are permanent.

Tourism interests are angered by the confusion in Government circles regarding the conflicting messages issued by Ministers and their Departments. The Irish Cottage Holiday Homes Association telephoned the Department of Tourism, Sport and Recreation and was told that visitors from the UK are being encouraged to visit Ireland as long as they do not come from infected areas. When the association telephoned the Department of Agriculture, Food and Rural Development it was told that tourists from Britain were not being encouraged to visit. Could one find a greater deterrent than the advertisement inserted in the Irish Post by the Department of Agriculture, Food and Rural Development which advised intending visitors to Ireland to “Postpone your visit to Ireland unless absolutely necessary”? Britain is Ireland's most important tourism market. Last year the number of British tourists soared to 3.5 million while tourist revenue totalled £900 million. One million of those who came here were native Irish people returning home to holiday. Intending visitors from this huge market, on which we depend to such a considerable degree, have now been told by a Department to “Stay away – we don't want you”.

I listened to a Chicago based Irish person on "Morning Ireland" last week. The message he wanted to convey could not have been clearer: the American perception is that Ireland is not a safe place in which to holiday this year. I am afraid that the Government and Bord Fáilte have failed to get the message across that this image of Ireland is wrong; that far from having a virulent health problem, Ireland is open to tourists, inviting and welcoming tourists and one of the safest places to holiday this year.

Recently the Joint Committee on Tourism, Sport and Recreation heard submissions from Bord Fáilte, the Irish Hotels Federation, Town and Country Homes Association, Irish Caravan Council, Irish Cottage Holiday Homes Association, Restaurants Association of Ireland, Irish Farm Holidays Association, Coach Tourism and Transport Council, Irish Tour Operators Association and Irish Tourist Industry Confederation. Throughout the entire industry there is despair, gloom and pessimism. Bord Fáilte and the ITIC estimate the loss to date at £174 million. Bord Fáilte projects a possible loss of £500 million and 20,000 jobs between March and August. This is understated. Unless a very successful counter-offensive and salvage operation are launched, the losses will be substantially greater in terms of jobs and revenue.

The Irish Hotels Federation estimated that between 1 and 22 March £33 million worth of business had been cancelled in the form of up to 3,000 conferences, meetings and social events. The Town and Country Homes Association reported cancellations of bookings with its members throughout the country. The discouragement of golf and angling was having a devastating effect. The association's members were being affected by wholesale cancellations from the domestic market. In one week alone the number of bookings from the UK market dropped by 66% on the previous week.

The Irish Caravan and Camping Council represents 140 parks accommodating in excess of 20,000 per night. Many of its parks are, by necessity, located near farms. It has virtually no home market on which to rely and depends almost entirely on visitors from Northern Ireland and Britain. In the council's own words, if restrictions are in place for the next six months, its segment of the industry "will be wiped out".

Irish Farm House Holidays has 400 members dispersed throughout rural Ireland, all situated on family farms. On 21 March its head office in Limerick, which operates a central reservation system, handled three bookings from 9 a.m. to 5.30 p.m. Unless something dramatic happens, many, possibly most, cannot survive.

Aer Lingus, a company already afflicted with ongoing industrial relations problems, suffered a £4 million drop in revenue for the first three weeks of March. Bookings were down 18% from UK regional airports and 10% on the London route.

Irish Ferries is a major contributor to the success of Irish tourism. Last year it carried 1.8 million passengers, 400,000 cars and 9,400 coaches. Car tourism is critical to the tourist economy as it delivers longer stay holidaymakers; a regional spread of holidaymakers throughout the country, particularly in rural areas, and a higher yield and spend. The company's most important market is Britain. Out of the total of 3.5 million visitors to Ireland from Britain in 2000, 1.26 million or 36% travelled by sea. In the first three weeks of March bookings dropped by 30%. If this is sustained throughout the season, bookings will be wiped out. The story from the Coach and Tourism Council is much the same. All sectors are hurting badly.

There is, as Deputy Flanagan stated, a problem. The mixed messages coming out of Ireland at Government level must stop. The message must go out loud and clear that Ireland is open for business. The problem must be tackled on two fronts. First, there must be an immediate effective marketing assault to try to salvage as much of the industry as possible. I welcome the fact that up to £15 million is to be spent on marketing. It is not a question of throwing money at advertisements. I am not in favour of all the money being allocated to Bord Fáilte. A considerable amount should be allocated to Aer Lingus and Irish Ferries which already have strong and successful marketing arms. Aer Lingus is a brand name with credibility in the United States and does a huge amount of solid promotional work right across America. Irish Ferries has successfully penetrated the UK market. These companies have the know how and the infrastructure. Advertisements by Aer Lingus and Irish Ferries with the clear message, "You can travel. We can get you there safely.", would go a long way towards dispelling the current myth about Ireland.

What is clear is that there will be substantial losses all around. What is equally clear is that many of those who have done the hard grafting and borrowed substantial amounts to put the tourist infrastructure in place cannot survive. It is inevitable that banks will demand repayments on borrowings. If cashflow is down, then repayments cannot be met. Apart from the personal calamity for those who will go out of business, there will be gaping holes in the market which will need to be filled at considerable cost.

There should be a major focus on the domestic tourist market, a plea to Irish people to holiday at home this year and fill the vacant bed spaces. Fine Gael believes that the Government must immediately adopt a co-ordinated approach by establishing a special task force to make an urgent assessment of the economic consequences of the foot and mouth crisis and introduce a programme of measures to enable the different sectoral areas to ride out their current difficulties. From the point of view of the tourism industry, the Government should immediately call in the banks and ask them to facilitate hard pressed tourist interests with deferred payments and low interest rates on borrowings; examine the possibility of a rescue package to be worked out between the Government and the industry; examine the possibility of extending the excise rebate on fuel to the coach tour sector; examine the possibility of low interest loans; re-examine the existing restrictions on the movement of people to determine if they can be safely relaxed; request Bord Fáilte to waive its fees and charges on the different tourist sectors for the current year; and examine the possibility of local authorities waiving rates and other charges on tourist facilities and amenities for this year.

As and from next week, the Minister should be aboard promoting Ireland on an ongoing basis. I note with considerable interest, for example, that the Scottish Tourism Board has already dispatched Sean Connery to the United States to send out the most positive message regarding the safety of Scotland as a holiday destination.

When the foot and mouth crisis eases it will take time to rebuild the tourism industry to the successful level it had reached before the crisis. While short-term measures are extremely important at this juncture, there must also be put in place a market recovery promotional plan in order to address the ongoing and longer term problems and retrieve our share of a market which is vitally important to all of us.

Mr. Perry:

I thank Deputy Flanagan for raising this issue. Those involved in or dependent on tourism are in a deep and widespread crisis as a result of the foot and mouth situation. The potential scale of the crisis and its impact are of grave concern. The conflicting messages being sent by the Department do not help. The advertised blanket ban on travel, which states "Do not travel to Britain", should state, "Do not travel to high risk areas in Britain such as farms." Surely intending visitors from low risk areas in Britain such as cities to low risk areas in Ireland should not be discouraged as their loss to the tourism industry would be gigantic.

Tourism brings over six million people to Ireland annually, generating £3 billion in foreign revenue. These figures say nothing about the impact of domestic tourism. Some 157,000 jobs are sustained by the tourism, hospitality and catering sectors. Some 57p in every tourism pound goes directly to the Exchequer. The Government coffers, therefore, are likely to be the biggest loser. Last year, receipts from tourism, excluding indirect spending, accounted for almost 5% of GDP.

The collateral damage to the country's second industry has become a major national issue. Economic commentators have realised that what hurts tourism, hurts jobs. There is huge concern among those involved in the industry. Losses are being suffered across the board by airlines, ferries, hotels and bed and breakfast establishments from many of which the Minister heard directly at the meeting held last week. Car hire and coach companies which depend on home and overseas tour business have been affected. Boat hire companies, those who depend on angling and other field sports, and those who hire bikes or operate local tours are also affected. Due to the ripple effect, whole communities are being affected. Pubs, grocery shops, petrol stations and craft workers are also being affected. The list is almost endless. Businesses and jobs are at risk.

A drop of £500 million in overseas revenue could translate into job losses of at least 15,000 to 20,000 throughout the country, which is a conservative estimate. Our advertising and promotional campaigns are normally at their peak at this time of the year and bookings should be rolling in, but not alone are bookings not been received in anything like the normal proportions in many sectors, they have dried up. Meetings, conferences and seminars are being called off, but why is the Minister not clarifying the position by stating that if people contact his office, they will be given direction? Conflicting messages are being given here not to mind in the UK. The situation has been very badly handled. Last week a choral festival in Cork was cancelled and now there is talk that the Rose of Tralee festival will be cancelled. If the Minister cannot give direction here, how can he do so in regard to the UK? While it was agreed that the St. Patrick's Day parade here should be cancelled, since then, events have been cancelled that should not have been cancelled. Why has that happened?

The Minister is talking about spending £20 million on a marketing campaign, but what is being spent on marketing tourism within the State and getting a clear direction on this issue? Many businesses will not recover from this. Unlike other material products, an empty hotel bed or an airline seat cannot be resold the following week or month. Such lost revenue impacts on cash flow, profitability, employment and ability to re-invest. The banks are not doing anything to improve matters. Have the banks commented on this situation? I have heard very little from them.

This problem is affecting market confidence. There is a slow down in holiday bookings and many have dried up. Many cancellations have been made. Potential tourists are under the impression that Ireland is unsafe. Americans are of the view it is not safe to eat the food here. As Deputy Higgins said, money is not the problem, the message being sent out is wrong. The message people in the UK are getting is they should not go to Ireland unless they have to. That is the message being sent out as I speak and it has not been changed. It is now seven weeks since the first case of the disease and we have had only one incidence of it, not an outbreak. The Minister has failed dismally to get that message across in marketing this country. While those in the agricultural sector will get some compensation, people in businesses will get nothing. Have the Revenue Commissioners stated what they will do about PRSI, PAYE or VAT payments that are due? Will they give a derogation on VAT? We have heard nothing from that end. For people who must repay loans, lip service will not pay the bank. People who have invested heavily in tourism will not get anything. Much more needs to be done to encourage tourism while ensuring there is no risk to the agricultural sector.

Potential tourists are under the impression Ireland is not safe to visit. We must emphasise that Ireland is disease free, there is no threat posed to people, visitors are welcome and there is plenty for them to see and do as long as they observe the current guidelines and stay away from risk areas. The tone of the message from Ireland should be more evenly balanced and positive, which it currently is not. It should reflect the relaxation in measures introduced by the Minister, but news updates of the position with regard to foot and mouth disease on television do not convey that message.

Restrictions on tourism need to be relaxed. Heritage and visitor centres that remain closed should be reopened, subject to adherence to the guidelines and necessary precautionary measures being taken. Urban to urban travel should be actively promoted in the domestic market and internationally. Where possible, angling and other activity holidays should be reinstated.

A great deal needs to be done, as people involved in tourism will not survive this; they will go out of business. The Minister has a major job to do and he should do it now. It cannot wait.

Mr. Naughten:

Those involved in agriculture, agri-business and tourism in my constituency have been severely hit by the foot and mouth disease crisis. I will make a few points about agriculture before I address the issue of tourism. Can the Minister not talk to his colleague, the Minister for Agriculture, Food and Rural Development, about establishing central locations for moving cattle to slaughter facilities and abattoirs? There is no reason such a measure cannot be put in place. Stock are not being brought back to farms, therefore, there is no risk of the spread of foot and mouth disease. The existing position is putting major financial pressure on hauliers and farmers.

A permit system for the sale of stock farm to farm should be introduced. Store cattle in my constituency and throughout the rest of the country cannot be disposed of at present. Fodder is in short supply and people do not have the necessary resources to make the repayments currently due to the banks. One woman who telephoned me this evening told me she does not know where she will get the money to make the next repayment due to the Revenue Commissioners, as she cannot sell store cattle to obtain the money to make that repayment. This situation should be relieved immediately.

Some sectors of the tourism industry, for which the Minister has responsibility, have reported a range of from 50% to 90% of cancellations. The Government, through the Department of Agriculture, Food and Rural Development, has been telling people not to enter the countryside rather than not to go near farmland. It is important the correct message is conveyed, but that has not happened. The message being given in the UK, the Continent and in the US is not to visit outside urban centres in Ireland. That message will damage our tourism and it will not encourage people to visit here in the coming year.

Many small family owned businesses are under severe financial pressure. The Minister should discuss with the local authorities the granting of rate reliefs to those businesses. He should meet officials in the banks face to face to agree terms and conditions to relieve the pressure on people in these businesses. He should ensure a short-term loan scheme is introduced to help those businesses overcome the problems they currently face. It is fundamental that should be done, as family run businesses are a major element of the infrastructure of our tourism industry. If they are put under pressure, that will damage the tourism infrastructure and the industry in years to come. Will the Minister take urgent action on this matter?

Mr. Boylan:

I reiterate a statement I made here when I initiated this debate many weeks ago about the marvellous work done by the Defence Forces, the Garda and officials of the Department of Agriculture, Food and Rural Development in dealing with this situation. I hope the information that has been gathered about the illegal move ment of livestock here will be acted on and that such movement will be prevented from ever happening again. Maybe then this disease will be wiped out once and for all.

I reiterate what Deputy Naughten said about farming. In my constituency there are farmers who wish to sell weanlings and store cattle. They are running out of their supply of fodder and they do not have grass to feed them. On the other hand, farmers down the road from them with grass have traditionally bought cattle at this time. There is no reason a permit cannot be introduced for farm to farm sale of stock. Irrespective of whether the cattle are on farmer A's farm or farmer's B farm, once the Department is informed of where they are, everyone concerned is secure.

There is a danger the Minister and his Department will cause a serious split in the tourism industry due to the conflicting statements being issued with regard to whether the country is open or closed. The Minister should take that on board. Rural tourism, for example, the sector involved in angling, is dependent on the co-operation of the farming community for access to our lakes and rivers. They are not easily accessed without the goodwill of the farming community. Farmers are currently being told to put up notices with words "please keep out". People involved in tourism, who are removed from farming, have set up guest houses in rural areas and are anxious to build up their businesses, have been told by farmers – they have got telephone calls about this – not to bring English fishermen over here as they do not want them here. Goodwill is something that cannot be regained overnight. That goodwill exists and we must build on it. The Minister must clarify the situation – either the country is open or it is closed. Those two messages cannot be transmitted at the one time.

People in my constituency have developed businesses to cater for coarse anglers from England and elsewhere on the Continent. They have invested heavily in their businesses, developed it over the years, ploughed profits back into it and upgraded their accommodation at the behest of the Minister's Department, which is only right. Those people were looking forward to an excellent year for their businesses this year and there was no reason that should not be the case, but suddenly, out of the blue, foot and mouth disease hit the British Isles and we have suffered as a result. The people concerned have commitments to their lending institutions and somebody must step in and help them. It is not good enough to ignore them or say that it will be okay in 12 months, by which time some of them will be gone. The Minister should immediately announce a rates remission and look at tax credits and rebates in the coming year to help them through this difficult period. They have made a substantial investment on which they will now have no return and which their bank managers will call them in to pay back. It is up to the Minister to stand by them in their hour of need.

Mr. Crawford:

I thank Deputy Flanagan for allowing us the opportunity to discuss this issue. The main issues and problems in my constituency are presented by the tourism industry, hauliers and bus companies, mart owners and AI operators. I was pleased to hear that the Minister is to meet AI operators on Thursday. They have been out of work for some time. This has an effect on farming. I urge that they be allowed to return to work as quickly as possible, but under strict controls. It is hard to justify the reason they are not being allowed to operate considering some of the other activities being engaged in at farm level.

The situation of hauliers, especially in Border regions, is extremely serious. About 60% of the milk to our local co-op in Monaghan comes from Northern Ireland. After processing it is hauled to other areas. That work has been lost. I hope it will be regained in the next few days, but the group concerned needs to be considered sympathetically, as do bus drivers whose buses have been idle because functions had to be cancelled. Mart owners are the one group which has lost out completely. As Deputy Naughten suggested, I urge that marts be utilised to bring livestock together. Trailers of animals could be brought to marts where the animals could be placed on lorries travelling to factories. The sheep of 20 farmers could be transported by lorry from Donegal in the Minister's constituency to Navan. Yet, trailers are being asked to travel in convoy. Raphoe mart could be used in this way. I urge that the matter be looked at.

I reiterate what others have said concerning the tourism industry. There is a need for rates and loans relief. A small fishing shop in my local town of Ballybay has literally gone out of business. The people concerned need sympathetic consideration to help them over the hump. As tourism has a bright future, whatever needs to be done must be done.

Mr. Neville:

I call on the Minister to recognise the devastating effect foot and mouth disease is having on the economy because of the necessary restrictions and regulations imposed. The Government should respond positively to the call from Fine Gael to establish a special task force to work in conjunction with the appropriate economic sub-committee of the Cabinet to assess the impact on the economy and business in general. There is a deep crisis in the tourism industry which is a key contributor to the economic success of the State in recent years. In March alone the hospitality sector lost £40 million by way of cancellations and forward bookings. For the loss of every £1 million there is a consequential loss of 40 jobs. In March, therefore, there was a loss of 1,600 jobs. If this took place in a technological industry, there would be an immediate response from the Tánaiste and IDA Ireland which would establish a task force to ensure the situation was dealt with. If the current situation continues, there will be a loss of, at least, 20,000 jobs in the hotel and guesthouse sector alone.

What is needed is immediate action to rescue the 2001 tourist season. The farmhouse holiday sector has been completely closed down. Forward tour operator bookings from abroad for June to September are down 70% on last year. This is the most serious crisis faced by the hospitality sector in the last 25 years and its effect is intense, especially in small family run properties which represent 78% of all hotels and guesthouses.

There is massive confusion in the United States with regard to the situation in Europe. The funeral pyres are confused with the Indian tradition of burning human bodies. Foot and mouth disease is confused with a highly contagious disease – hands, foot and mouth disease. The Taoiseach should travel to the United States immediately for crisis communications to save the US market. The expert group is doing a good job. The communication of the easing of the restrictions is confused, unclear and creating extreme difficulties. Golfing holidays must be saved. There is confusion about whether golf courses are open or closed. There should be immediate clarification, especially for organisations which organise tours and holidays.

There has been an enormous loss in the conference area. In Adare there has been a massive loss in conference business and the resulting spin-off to local businesses. The Government should immediately waive, reduce or defer VAT on accommodation and food sales from March to June to relieve the strain on premises. It should provide for an interest subvention and low interest loan scheme for an initial six month period to be reviewed at the end of August.

Mr. Sargent:

I thank Deputy Flanagan for sharing time with me. The Green Party would welcome the establishment of a task force of the kind described in the Fine Gael motion. The high price paid and the pain of foot and mouth disease felt by many sectors are a true indicator of the downside of globalisation and the artificially cheap food policy being pursued by many multinational food outlets. In the preceding debate on the Treaty of Nice we heard about the opportunities offered by expanded export markets, but we also need to debate the need for freer imports and the associated threats to animal health. The message seems to be clear to the Minister for Tourism, Sport and Recreation who said he wants greater local trade in tourism. That is needed and would be welcome. Other Ministers, however, seem to be devoted to specialised production for export markets as a policy priority.

I appeal for a new focus for farming in Ireland with the objective of making this an island where produce is organically produced with surplus produce being exported and domestic needs being met to the greatest extent possible by domestic production. The continued industrialisation of farming will jeopardise the green, clean reputation which we have taken for granted for many years.

Our second largest industry, tourism, soon to be our largest, will suffer as visitors report a less attractive, less diverse and less interesting rural landscape. Ireland enjoys six million visitors each year. They talk about more than 660 million day visits from urban areas to rural areas in the UK, bringing in between £2.6 billion and £7.9 billion annually to rural economies. We need to produce similar figures here to ensure we can measure the value to rural economies of a vibrant tourism sector.

In France it appears the foot and mouth outbreak has not affected tourism to the same extent and I urge that we look at their policies to ensure we do not have a panic reaction here.

Minister for Tourism, Sport and Recreation (Dr. McDaid):

I move amendment No. 1:

To delete all words after "Dáil Éireann:" and substitute the following:

"–commends the Minister for Agriculture, Food and Rural Development for his handling of the current foot and mouth emergency including the establishment of a Government Task Force to monitor the crisis and the necessary control measures with a view to preventing the spread of the disease;

–notes the establishment of a Tourism Action Group involving Bord Fáilte, the Department of Tourism, Sport and Recreation and the tourism industry, which monitors the impact of foot and mouth on the sector; and

–notes the action being taken by the Minister for Tourism, Sport and Recreation, the Minister for the Marine and Natural Resources, the Minister for Arts, Heritage, Gaeltacht and the Islands and the Minister for Public Enterprise, in ensuring that the impact of foot and mouth prevention measures on the other sectors of the economy, in particular tourism, is minimised;

and commends the public for their co-operation with the measures necessary."

At the outset I wish to indicate that it is the intention of the Minister for Agriculture, Food and Rural Development to close this debate, barring some unforeseen circumstances, tomorrow evening.

During the course of the present foot and mouth emergency, the primary preoccupation of the Government, supported in very large measure by the general public, has been to ensure that every conceivable step is taken to ensure the disease is contained to the one outbreak that has already occurred. As was pointed out by the Minister for Agriculture, Food and Rural Development, if foot and mouth is not contained and eradicated, the tourism industry will almost certainly totally collapse. I have already indicated in two recent Dáil Adjournment debates, in a full day meeting of the Joint Committee on Tourism, Sport and Recreation held on 22 March and earlier this afternoon in Seanad Éireann, that the possibility of a widespread outbreak of FMD in this country threatens our economic security and livelihoods, not just those of our farmers and the agricultural and food industry, but potentially of every citizen and in particular of the tourism industry.

It is appropriate to pay tribute to my colleague, the Minister for Agriculture, Food and Rural Development, Deputy Walsh, and his staff for the competent manner in which they have tackled the emergency and for their extraordinary hard work and dedication over recent weeks. I remind the House that to date we have had just one outbreak.

The recent heartbreaking and stark images from County Louth and Great Britain give some indication of what a full-scale outbreak would mean and put into perspective the sacrifices we have all had to make to date. It is important to appreciate that for tourism, a full outbreak would result in sustained negative international publicity, the possibility of even more intense internal and external travel restrictions and prolonged closure of many key tourism attractions and facilities. Let us hope and pray that we do not have to face such an appalling scenario. On behalf of the Government, I thank the tourism and hospitality industry which is at the economic front line in the battle against FMD for their support and patience in recent weeks in accepting the control measures which have had to be put in place. There is no doubt that the industry has taken a substantial hit in terms of lost business, but has been mature enough to see it as part of an essential contribution to the bigger objective of fighting the disease.

The economic importance of the tourism sector should not be underestimated. It represents employment for more than 150,000 people and brings in over £3 billion annually in foreign exchange earnings. One in 12 jobs in Ireland is dependent on tourism. The sector represents more than 4% of GNP and makes a critical contribution to regional and rural development. The industry has almost doubled in terms of employment and increased threefold in terms of foreign earnings over the past ten years. However, because of its diverse nature and the number of small firms involved, the scale and importance of the tourism industry in modern Ireland is not always fully appreciated by the general public. While agricultural employment has decreased steadily in recent years, tourism has experienced phenomenal growth. The reports which we are now hearing every day of the impact and scale of the current FMD crisis on tourism will serve to get the message across that tourism is one of our major industries, not far behind agriculture in economic importance.

The tourism and hospitality industry is now hurting as a direct result of the FMD emergency. The most up to date assessment of losses is put at approximately £200 million, excluding the impact on air and sea carrier receipts which is also substantial. If the current situation continues until August, it is estimated that the potential loss of overseas tourism revenue could rise to at least £500 million. This does not take into account the separate and very significant losses in domestic tourism and hospitality business due to cancelled events and conferences and an apparent continuing reluctance on the part of the general public to take short breaks in Ireland. Since the onset of the current emergency both myself, my Department and Bord Fáilte have been working very energetically to support the industry, and we have taken a range of measures to deal with the situation.

I would like to outline this evening ten specific actions which I am taking. First, I encouraged the tourism and sports sectors to take a series of initiatives in support of the national campaign to minimise the risks of a spread of FMD. Major industry groups, such as the Irish Hotels Federation and the Restaurants Association of Ireland, asked their members to take a range of precautionary measures, Bord Fáilte suspended the active promotion of high risk land-based recreational activities, and sporting organisations and festival groups voluntarily cancelled or postponed events. These and other initiatives have demonstrated beyond any doubt the commitment of the tourism and sport sectors to playing a full role in combating the disease in the wider public good.

Secondly, I set up structured arrangements to ensure that the views of the tourism industry are taken on board and that their concerns are made known, in particular when key decisions are taken about the control measures. I met on 8 March with a delegation from the Irish Tourist Industry Confederation, ITIC, to discuss the situation and have kept in close contact with the industry since then. I am a member of the key Government task force which at present convenes daily, under the chairmanship of the Minister for Agriculture, Food and Rural Development, to monitor and review measures to prevent the spread of the disease. The meeting is attended by up to six Ministers every morning. In addition, a separate high level tourism action group, chaired by the chief executive of Bord Fáilte, and including key ITIC representatives and my Department, has been established to monitor the situation on a continuous basis. This group has been meeting twice weekly over the past few weeks with the active participation and support of the industry. The objective is to actively manage issues which are affecting tourism business already booked, and limit any medium to long-term damage to the industry's image and prospects overseas.

We have been pressing very strongly in the appropriate fora for a phased modification, in so far as they, affect tourism, of the control measures in line with the evolving risk. This pressure brought about easing of the control measures announced on Friday, 16 March, by the Minister for Agriculture, Food and Rural Development. This followed a report to him by a technical expert group, under the chairmanship of Professor Michael Monaghan, supported by a separate report from the high level tourism action group. The guidelines issued by the expert group, together with the clarifications given by the Minister for Agriculture, Food and Rural Development at his press conference, enabled a significant number of low risk events and activities in the tourism and sports areas to recommence immediately.

With industry support, we have been pressing for the phased reopening of key State cultural and heritage attractions to allow a full and varied array of tourism facilities to be available to our visitors. National cultural institutions such as the National Gallery, National Museum, Museum of Modern Art, Chester Beatty Library, Dublin's City Hall, have remained open, together with most of the attractions operated by Dublin Tourism and Shannon Development.

Following the easing of the control measures on Friday, 16 March, Dublin Castle, Kilkenny Castle and the Rock of Cashel, reopened. On 27 March, the Minister for Arts, Heritage, Gaeltacht and the Islands announced that a further 11 heritage sites would be reopened the following day. I understand that has been extended to approximately 20 of the 36 that would normally be open at this time of year, and that the opening of further sites would be kept under review. This is very welcome news to the tourism industry. In a recent press statement, I have urged all those involved in the provision of tourism facilities and attractions to familiarise themselves with the guidelines of the expert group with a view to restoring as much of our key tourism infrastructure as possible.

We are arranging through the Bord Fáilte Tourism Ireland website and the associated call centres, that there is regularly updated information available to visitors and the trade, including information about major attractions and events which are open. The Bord Fáilte website is updated daily and contains a very comprehensive regional listing of the tourism attractions which are open at present.

Tourism related calls to the Department of Agriculture, Food and Rural Development FMD help line are now being processed through Bord Fáilte. Hot links between the key websites, including the Ireland.com Irish Press website, have been put in place.

Mr. Rabbitte:

The Minister has revived the Irish Press website.

Dr. McDaid:

From today, the Department of Agriculture, Food and Rural Development website includes a special section aimed at visitors thinking of visiting Ireland. This highlights that there has been only one confirmed case of FMD in the Republic of Ireland, that FMD is an animal health issue and there is no danger to human health. It explains that while there are precautionary measures in place around the country, there is minimum disruption within the country.

I am anxious that there is a clear message that Ireland is open for tourism business and that, subject to taking appropriate precautions, Ireland remains a welcoming destination for international visitors. I have already confirmed this in many press statements and it is entirely consistent with the recent specific advice on this subject from the expert group. The new guidelines mean that we can now welcome urban based visitors from the UK and other FMD-affected countries.

This positive message was reinforced by the Taoiseach in his remarks on 22 March at the naming of the new Irish Ferries car ferry, Ulysses, and by Sir Reg Empey and me at the North-South Ministerial Council meeting last Friday in Letterkenny. I am arranging that these positive messages are highlighted also in Bord Fáilte's and in my own Department's websites.

We have been pressing for an easing of the restrictions on the movement of people within Ireland to help the accommodation sector to recover from the effects of the cancellation of conference and seminar business and domestic tourism. Easing of restrictions on gatherings of people in defined locations by the expert group means that indoor meetings, conferences, and certain sporting events may now resume. Over the past week I have launched a strong appeal to the business community not to cancel or postpone conferences arranged for cities and towns throughout the country which are included in the lowest risk category specified by the expert group. In this regard the Government is writing to all Departments today to ask that they and their agencies take full account of the recommendations of the expert group and to ensure that activities are only curtailed where necessary, in accordance with the advice of the expert group.

On Friday, 16 March the Minister for the Marine and Natural Resources announced the lifting of the ban on angling with effect from the following day. Under new guidelines, sea angling is permitted, together with angling which does not involve access to land to which susceptible animals may have had access. This will go some way to meeting the concerns of the angling visitor interests who have been particularly badly affected by the present crisis.

Following a meeting I had with the chairman and the chief executive, Bord Fáilte is launching a special tourism marketing and promotion reassurance programme which will kick into effect this weekend. This programme, which will have an initial component costing £3 million, will consist of tailor-made trade and consumer campaigns, joint activity with trade partners, and special consumer events in key European and US cities. I intend to lead these campaigns in the market place. Bord Fáilte has already identified savings from within its own budget to help meet the costs involved in mounting this campaign, and I have also sought supplementary funding from the Minister for Finance for this purpose. Timing is of critical importance, particularly for the campaign in the United States. It is intended to commence that campaign within the next couple of weeks. I am just about to finish—

Mr. Stanton:

Will the Minister give way, please? What response has the Minister had from the Minister for Finance for extra funding? Some £3 million initially seems very small. What extra funding will be available?

Dr. McDaid:

This is an initial component of the campaign which started last week. We will top that up to £6 million as of now, and if it is necessary the Minister for Finance and the Government will deliver the extra resources when they are needed. It is all a matter of the appropriate timing as to when it is needed.

The House will be aware that before Christmas, I launched the largest-ever annual tourism marketing programme for 2001, involving the joint expenditure by the tourism industry and Bord Fáilte of an amount of £100 million, of which approximately £35 million is Exchequer funding. I have also appealed to the industry to put together a programme and range of attractively priced short break packages to encourage the domestic market. We are looking at further initiatives to give home holidays a boost and I have already publicly appealed to people to holiday at home.

I have appealed to the banks and to the financial institutions and the Revenue Commissioners to be as sympathetic as possible in the case of any tourism business which experiences cash flow difficulties arising from the foot and mouth disease crisis. While the tourism industry saw unprecedented growth and success over the past decade, there are inevitable temporary setbacks in the economic cycle which do not undermine the medium to long-term sustainability of a business. I welcome the constructive response of the Irish Bankers Federation which was faxed to me yesterday. For the benefit of those who brought the matter up in the House, the document reads:

The banks are very mindful of their role in supporting customers through this difficult period. The banks are committed to giving careful and sympathetic consideration to requests for particular support from those business customers that encounter financial difficulties as a consequence of foot and mouth disease. Such support may take the form of additional short-term credits, the rescheduling of existing credit re-payments and, where necessary, a moratorium on re-payments.

The document also states that:

It is crucially important that the banks are advised by their customers about the development of such problems as soon as they arise. Generally speaking, this will enhance the chances of finding a workable solution.

The document finishes by saying that "the banks are confident that they will not be found wanting on this occasion".

While the Taoiseach, the Minister for Finance and I have confirmed that compensation of tourism interests is not possible, a more practical approach is to put in place an aggressive international and domestic tourism marketing campaign, supplemented by measures to help companies trade out of any temporary financial difficulties. My Department and Bord Fáilte are keeping the situation under close review with a view to making appropriate further adjustments, in consultation with the industry, to marketing and promotion activities planned for the year. While we are all conscious of the threat to agriculture, we must not lose sight of the extent of the impact on the tourism and hospitality industry. Our shared objective must be to ensure that unnecessary medium to long-term damage is not done to the tourism industry, which is now so important in economic terms.

The tourism industry has dealt successfully with crises in the past, including the fallout from the Gulf War and the problems of 30 years of instability in the North. It is a resilient and strong industry and while I know the industry is suffering at present, if we work together, we can successfully overcome this.

This crisis will not unduly affect the economy and despite all of our problems the country still remains buoyant, with the Central Bank recently forecasting growth of 6.5% to 7%. Most countries in the EU would be delighted with such economic progress. This is a matter of timing. April 19 remains a date that is important to all of us. While we must be vigilant and keep restrictions in place for many months to come, the country can have a major degree of internal normality by 1 May. Advertisements will appear in British newspapers over the weekend clearly saying that: "Ireland continues to extend a warm welcome to visitors from Britain. Yes, you can holiday in Ireland. Yes, there is lots to see and do and yes, you are welcome." Other advertisements will appear in the Irish press.

To answer certain Deputies, we have plans to go to the United States. I do not want to contradict my counterparts in Great Britain or in Scotland as we may have different plans. However, it seems contradictory to have a Minister of a country appearing on CNN news beside burning pyres of cattle – as vividly described by Opposition Deputies – and on the same news bulletin to hear that Minister encourage people to visit that country.

It is a matter of timing. We have an expert group here and 19 April remains an important date. I am confident, all being well, that Ireland will have returned to a large degree of internal normality by 1 May.

Minister of State at the Department of Education and Science (Mr. Treacy):

I share the concerns of Deputies about the potentially serious impact on the agri-food and other sectors which the spread of FMD would pose for the economy, employment and livelihoods generally. The special government task force is already working very effectively and efficiently to monitor the crisis and advise on necessary control measures, and together with other action and monitoring groups to address any serious problems emerging in affected sectors.

The objective is to manage the crisis and limit any medium to long-term damage to our economy, including tourism, industry generally and other sectors. As already indicated by my Government colleague, the Minister for Finance, Deputy McCreevy, any attempt to predict the impact of FMD on the economic and budgetary outlook is highly conjectural. The main sectors at risk are agriculture, agri-business and the important tourism sectors.

Within the Department of Enterprise, Trade and Employment, a monitoring group representative of the Department of Education and Science and the State development agencies has been established to monitor the impact of FMD on industry and develop responses as appropriate. In so far as industry is concerned, the general feed back to date appears to be that FMD is not having a major impact on existing employment. However, a number of sectors such as food processing, as well as consumer products and agricultural machinery, are at fairly high risk if there is an escalation of FMD outside the Louth area. This will also be the case if the tourism sector does not pick up and the overall economy is impacted in the medium to longer term. The implications of a downturn in tourism would have significant impact on other sectors such as food and services because tourism is a huge employer, a huge revenue earner and attracts much foreign earnings.

So far as the attraction of new overseas projects is concerned, the FMD controls are having some adverse impact in curtailing site visits. Obviously, the longer the controls are in place the more it will not help this programme and this is a worry for us.

Overall, there is a consensus view emerging that the need for a marketing "Sell Ireland" campaign will arise to restore our image and position in markets abroad. The State development agencies, under the aegis of our Department, are in close contact with clients on the FMD issue, with a view to identifying difficulties arising and facilitating any necessary corrective action, where appropriate.

I assure Deputies that my Department and its agencies will continue to monitor closely the impact of FMD on industry and arrange, where possible, for any necessary remedial measures to be put in place to address major adverse impacts. It is essential to ensure that all interests, including industry, co-operate fully in complying with the FMD control procedures, which have already been put in place.

The House appreciates the co-operation that the people have given to the strict measures put in place by the Government and particularly the Minister for Agriculture, Food and Rural Development and his committee. There has been co-operation across the board from the public sector, the private sector, from consumers, citizens and visitors to Ireland. Urban and city people have been very positive in addressing and adhering to the regulations and rules as laid down. They have shown great appreciation of the value of agriculture to the economy and to rural Ireland.

Mr. Stanton:

Would the Minister give way, please? What is happening to address the needs of those going out of business? Some companies are going to the wall. What is the Minister doing about that?

Mr. Treacy:

We are going through a serious crisis. It is a short-term problem not a prolonged economic decline. We must deal with the situation as it evolves. There are many players, many actors, including managers, fund providers, customers and others. Flexibility and optimism is needed and we on this side of the House are full of those attributes. We are confident we will manage this crisis, that the nation will respond and that sooner or later—

Mr. Rabbitte:

I bet Deputy Stanton is sorry he asked a question now.

Mr. Treacy:

—the trading environment and the economy will continue to grow. The Central Bank has projected growth this year in excess of 6%. We are confident that will be achieved. We are in the early part of the spring. Let us hope we can address this problem together and maintain confidence and resilience. In the past when the economy had much lower growth rates and capacity and when consumer demand was much lower than it is today we adjusted to situations where there was no optimism or hope. We are now in a new environment. Let us be positive.

I commend the Government amendment to the House. I am confident the Government and people will ensure that the economy continues to grow.

Mr. Rabbitte:

I wish to share my time with Deputies Penrose and Wall.

After listening to that piece of knockabout from the Minister of State I am lost for words. This is not a debate about the strength of the economy or our confidence that the Government can lead us to a new Nirvana. We acknowledge the state of the economy. We are discussing the need to preserve employment and the revenue being generated in the industries that are affected by this crisis. I am puzzled by the Minister of State who, on the one hand, like the Minister for Finance tells us he cannot predict the impact of the foot and mouth disease on the economy and budgetary outlook – he says it is highly conjectural – and on the other says everything is okay.

Mr. Treacy:

I did not say everything was okay. I said it will be okay.

Mr. Rabbitte:

All parties have supported the Government's efforts to keep foot and mouth disease out of this Republic. In the early stages of the crisis we confined ourselves to highlighting weaknesses and gaps in official strategy. However, we have now reached the point where unnecessarily serious economic damage will be done, especially to our tourism industry, unless we achieve a sensible balance in our ongoing response to the foot and mouth disease crisis.

The Government is sending out conflicting messages which will, and already are, leading to unnecessary confusion, economic damage and job losses. For example, the Department of Education and Science has banned all school excursions to the countryside. French school tour operators have, unsurprisingly, responded by deciding that if it is unsafe for Irish school children to visit the countryside it would be imprudent for French school children to do so. The Minister for Tourism, Sport and Recreation tells us he is intervening to prevent the abandonment of corporate conferences while the Minister for Agriculture, Food and Rural Development on his website is counselling against holding such conferences. Persons seeking guidance are given one line by the expert committee advising the Minister for Agriculture, Food and Rural Development and a different line by the committee sitting in Bord Fáilte and advising the Minister on tourism.

Dr. McDaid:

There is only one expert group.

Mr. Rabbitte:

The Minister of State, Deputy Treacy said:

So far as the attraction of new overseas projects is concerned the foot and mouth disease controls are having some adverse impact in curtailing site visits. Obviously, the longer the controls are in place the more it will not help this programme and this is a worry for us.

Who wrote this speech for the Minister of State and what does it mean? Is the Minister of State saying that if a couple of foreign industrialists came to Ireland with the intention of putting a factory in County Donegal a site visit could not take place? The Minister of State has brashly read this nonsense to the House. Would potential industrial investors have their wellington boots sprayed before going to visit factory sites which are usually in urban settings? I have not ever heard anything so ridiculous. If I were in Deputy Treacy's place I would not read such nonsense to the House. At least Deputy McDaid made a serious speech.

The confused signals and mixed messages may have been excusable in the early days of the crisis before the public was educated in the need for sensible precautions. There is no longer an excuse for the Government speaking with a forked tongue. Unless there is unity of purpose behind a considered balanced strategy serious damage will be done to an industry which generates £3 billion in foreign revenue per annum. Already some businesses have been hit quite badly. One operator I know of in the coach tour business who customarily takes 800 bookings per week at this time of the year is down to 120 per week. The knock-on effect of that is not difficult to envisage. It is clear that Americans have been adversely influenced by television footage of the burning pyres in rural England and by the irrational fear that there is a risk to human health and safety in this part of the world.

We have been doing too little to counter these mistaken impressions. In terms of volume and revenue UK business is immensely valuable. The impact of a fall in numbers will quickly be felt by carriers and jobs. Bookings are rapidly drying up and our Government speaks with a forked tongue. If sensible precautions are taken and our reception facilities at ports and airports are thorough and adequate what precisely are we saying to British visitors?

The domestic market could be mobilised to contain some of the damage to businesses now hurting but confusion reigns again. Urban dwellers believe that to travel to rural Ireland is officially frowned on. Most have responded to official injunctions not to visit rural Ireland. Now Deputy McDaid is beginning – and I support him – to promulgate the opposite message.

It is past time that we moderated and sensibly finessed the "don't go into the countryside" message into something like, "let us help plan your visit to the countryside". We need a powerful public awareness campaign that advocates sensible precautions and at the same time involves society's leaders giving a lead to holiday in Ireland this summer.

There is an urgent need for a speedy, authoritative analysis of what is happening to food prices in the shops. Anecdotal evidence suggests that excessive profit taking is the order of the day, notwithstanding the fact that our meat factories are busier than ever before. It is bad enough that hoteliers' bookings are down but having to pay more for foodstuffs is unacceptable. This will feed through to inflation and only then will the Government address this issue from the consumers' point of view. As we have seen with the price of alcoholic drink, once prices go up it is unusual for them to be brought back down.

A £500 million downturn in the tourism sector is estimated to lead to job losses of between 15,000 and 20,000. Already workers' earnings in sections of the industry are down. This fact is not appreciated by the Minister of State, Deputy Treacy, who talked about a minimal employment impact. There is already an employment impact. Even where people are still at work, in the hotel industry for example, earnings are down because while basic pay continues service charges are reduced.

The Government should make arrangements so that people who lose their jobs in this crisis do not have to wait three days before being paid their social welfare entitlements. I ask the Government to intervene in the proposed withdrawal by Guinness from Dundalk, involving 200 jobs at a time when County Louth is especially badly hit by the fallout from the foot and mouth disease crisis.

The Minister, Deputy McDaid, knows the value of the tourism sector to the economy. However, in the public utterances of the Government to date there is no evidence that he has persuaded his colleagues of the cost of continuing with the present divided strategy. The committee of experts has a job to do but where is the counterweight economic committee if we are to develop a balanced strategy before it is too late? If we continue to portray a state of siege we cannot blame foreigners if they believe we are in a state of siege. Americans believe our food and milk may be unsafe and if that view is outrageously erroneous it is not enough for us to shrug our shoulders at the odd beliefs of citizens of the United States.

We need a coherent market recovery plan that commits the necessary resources to its implementation. Promotion and marketing must be a key element in that plan. So far it would appear those entrusted with selling Ireland are sitting on their hands because they are paralysed into inaction by the official line which up to now paid scant attention to the impact on the tourism sector. That must change and it is up to the Minister for Tourism, Sport and Recreation to lead that change.

Mr. Penrose:

While I have contributed to the previous debates I am pleased to have the opportunity to contribute to this debate. I compliment all the bodies involved in ensuring that the various onerous restrictions which had to be put in place were observed and the regulations adhered to. Had those steps not been taken at that time we would have enormous difficulties now which would make the present difficulties pale into insignificance. The public has played a major role. I have already gone on record to compliment the Minister for Agriculture, Food and Rural Development and his officials, the vets, the Army, the Garda Síochána and Civil Defence and all bodies that played a role. Some day we should acknowledge the role played by those bodies in another forum.

It is extremely important to state that we must remain on red alert and maintain a high level of vigilance in our efforts to contain and eliminate the foot and mouth scourge and ensure we get to normal as quickly as possible. The Cooley area of north Louth, which has seen the core of the economy devastated by the outbreak of foot and mouth disease, is dependent on tourism and agriculture. The twin fundamentals of its economy have been dealt a significant blow. I hope the containment measures put in place work for that area.

It is crucial that we all remain steadfast in the fight against foot and mouth disease. Today critical foot and mouth tests on samples from Peamount in Louth and Bunclody in Wexford returned from Pirbright gave the all clear. The results are a tremendous relief. We must exhort everybody to remain vigilant as we approach the finishing line, which the Minister said is about two weeks hence on 19 April. We cannot let down our guard and must continue to be vigilant in relation to disinfectants and so on. One of the problems I witnessed recently, and particularly at the weekend, was that mats are dry. It is important to remain focused, otherwise all the good work could be rendered at nought in our attempts to succeed.

I trust the Minister for Agriculture, Food and Rural Development, the review group under Professor Monaghan and the Minister's Department will, during the next week or so, examine the severe curbs in place and, where possible, relax same to allow some activities to proceed. I agree wholeheartedly with my colleague, Deputy Rabbitte. The advertisements from the Department of Agriculture, Food and Rural Development are a little bit misleading so far as they almost exhort people not to go to rural areas. It might be appropriate to advise people they are welcome in rural areas provided they do not go near farms. It is a matter of refining the advertisements to convey the message that Ireland is not closed down, that rural Ireland is still vibrant and ready to do business. It is amazing how messages get mixed up with a consequent negative impact. Obviously there has been a major impact on employment. Certainly Americans have been adversely influenced by TV footage of the burning pyres in rural England and obviously they assume that something similar is taking place here. Therefore, we must mount a comprehensive marketing onslaught to counter those mistaken impressions that may be prevalent there.

Family run businesses have taken a hit. It is important that the banks play a role here. I raised this matter in the House last week. It was only on 30 March that the banks responded to the spokesperson on the Irish Bankers Federation. The banks made profits in the past three or four years in a conducive environment at a time when rates of capital gains tax were in their favour. It is time they gave back something and took steps to help out industries, be it the tourist industry, the agricultural industry or the wider industry. The Minister will also have to look at the question of abatement of rates and deferral of VAT. Those could be important practical steps at this time.

Bookings are down. Farm holidays have been badly hit as well as walking tours. Forward reservations are down. I have learned in recent days that 57p out of every pound earned in tourism goes back into the Exchequer. That is a huge return and we should not forget that. In his speech the Minister indicated he would focus on marketing. I ask him to ensure that happens. Given the thrust of the Fine Gael motion the Minister should examine it because it is a constructive contribution to the overall national effort that has been seen to be effective in the past six to seven weeks.

Mr. Wall:

I welcome the opportunity to speak on the motion. Recently there have been many important debates in this House on the foot and mouth crisis. All Members have adopted a constructive approach and this has been recognised by the Minister, Deputy Walsh, and the Minister of State, Deputy Davern. I sincerely hope this same spirit of solidarity in the face of this crisis will be evident in this debate.

The impact of the foot and mouth crisis on the local economy in Kildare has been dramatic. I have raised the problem of unemployment in south Kildare on many occasions here and, despite the national trend in unemployment, long-term figures in my constituency remain stubbornly high. The foot and mouth crisis has compounded this problem which affects three key areas of economic activity in south Kildare, namely, tourism, agri-business and the bloodstock industry. Layoffs have already occurred. Businesses are under extreme pressure and the outlook is bleak.

The tourism sector in south Kildare has undergone tremendous development in recent years. It has some of the most outstanding attractions in Ireland such as the High Cross in Moone, the Japanese Gardens and The National Stud. The National Stud is developing a major tourism initiative. It is a tragedy that the foot and mouth disease has stopped this development in its tracks.

I spoke with a number of people engaged in the tourism sector in the county recently, and they said they want the Government to agree to be centrally involved in relieving the temporary financial crisis that has hit many small family-run businesses. A structure such as that proposed in the motion could well be the way forward.

The Minister will be aware that cash flow is a vital element of small businesses. In the tourist sector, the seasonal nature of the business which results in low turnover in the winter months adds to the problem. I urge the Government to take on board a number of suggestions already made by the tourist sector as regards a waiver or deferral of rates. I would add a rider to that proposal that any loss sustained by a local authority would be made good by the Department of the Environment and Local Government. Other proposals, such as high profile marketing campaigns in America, in particular, are urgently needed to save the tourism industry this summer.

My colleague, Deputy Moynihan-Cronin, chairperson of the Joint Committee on Tourism, Sport and Recreation will, together with her colleagues, present a number of proposals to the Minister this week. I urge the Minister to accept the committee's conclusions. That committee has met extensively with interests in the tourism sector recently and has put a tremendous amount of work into this vital issue.

The agri-business in south Kildare has already suffered major setbacks in the wake of the BSE crisis. It is vital for the industry that the one foot and mouth outbreak in the State be confined to the Cooley peninsula. One has to sympathise with every member of the farming community in that area on the trauma they have suffered in recent weeks. The Minister, the Minister of State, Deputy Davern, the Department and all the State agencies are doing all they can to ensure there is only one outbreak. The agri-business is of critical importance to the national economy.

Earlier in the year I urged the Minister to establish a high level group to monitor and respond to the employment consequences of the purchase for destruction scheme. A group consisting of SIPTU representatives and departmental officials was established. There is now an unanswerable argument for this group to be expanded and given a central role in the wake of the foot and mouth crisis. Given the rampant spread of the foot and mouth disease in Britain it is likely that the restrictions currently in place may be with us for some time. It is vital that these restrictions are kept under constant review. It is imperative that the Government takes a central role in devising a coherent response to the economic consequences felt in every town and village.

Debate adjourned.