Dáil Éireann debate -
Wednesday, 14 Nov 2001

Vol. 544 No. 1

Written Answers. - Tourism Industry.

Paul Bradford

Question:

88 Mr. Bradford asked the Minister for Tourism, Sport and Recreation if he proposes to meet with Bord Fáilte with a view to discussing a rearranged grants scheme for the different sectoral areas; and if he will make a statement on the matter. [27970/01]

David Stanton

Question:

219 Mr. Stanton asked the Minister for Tourism, Sport and Recreation when he plans to notify the European Commission of the tourism product investment scheme; the earliest date by which he hopes to be in a position to launch the scheme; and if he will make a statement on the matter. [28119/01]

David Stanton

Question:

220 Mr. Stanton asked the Minister for Tourism, Sport and Recreation the aims and objectives of the proposed tourism product investment scheme; and if he will make a statement on the matter. [28120/01]

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

I propose to take Questions Nos. 88, 219 and 220 together.

Firstly, Bord Fáilte has not requested a meeting with me with a view to rearranging the grants scheme. The tourism product investment scheme is to be funded under the local enterprise development priority of the BMW and the S&E regional operational programmes. It will be implemented by Bord Fáilte Éireann. The overall objective of the scheme is to develop the tourism product, in a sustainable way that widens the spatial spread of tourism, diverts pressure from highly developed areas, and increases the under-performing regions' share of overseas tourism revenue.

It is very clear that the tourism sector is currently facing severe difficulties that could never have been imagined last year, when the scheme was notified to Brussels. However, I am convinced that the underlying strategy in relation to support for investment in tourism product development is still relevant and valid.

This is the "third round" of European Regional Development Fund supported capital investment in the tourism sector. However, it has been the first occasion on which formal notification under the state aids rules and clearance by the Competition Directorate of the European Commission has been required for each individual measure before the scheme could be launched.

The scheme was formally notified, as required by the relevant regulations, in October last year. Over the past 12 months, negotiations between my Department and the Competition Directorate have been long and unexpectedly difficult. In line with my firm commitment to support and facilitate the development of balanced and sustainable tourism, officials negotiated with the Commission to ensure that there was a very real appreciation of the contribution of the tourism sector to the Irish economy and of the importance of the scheme for simulating regional development. I am pleased to report that the Commission has finally approved the scheme as compatible with the treaty.

The current position is that Bord Fáilte, in consultation with my Department, is re-examining its draft guidelines for project promoters, in the light of the very detailed conditions laid down in the Commission's formal decision. I hope to formally launch the scheme, as cleared by the European Commission, in the near future.

Pat Rabbitte

Question:

89 Mr. Rabbitte asked the Minister for Tourism, Sport and Recreation if the contract for the Campus Stadium Ireland Project includes a provision for payments in respect of the stadium not proceeding; and if he will make a statement on the matter. [26104/01]

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

As I informed the Deputy in a written reply on 6 November last, a contract to provide executive services has been completed by CSID with Magahy and Company. The contract is for a five year period, but it contains a provision for earlier termination in certain circumstances, with a provision for compensation. Approval has also been given for a number of smaller contracts for technical surveys relating to services and preparatory work on the site. Much of the survey work has already been completed at this stage.

The Government has given approval to proceed with the development of an aquatic and leisure Centre at the site in Abbotstown. In July 2000, the project went to tender, offering a contract for the design, build, operation, maintaining and financing of the centre. Heads of agreement have been signed by CSID and terms of agreement are currently at the stage of final negotiations. Meanwhile, as the aim is to have the pool at Abbotstown completed in time for the Special Olympics in 2003 work has begun on the site under a letter of intent which includes provision for termination.

Campus and Stadium Ireland Development Limited has sought tenders for the provision of a stadium and other sporting facilities for the Sports Campus Ireland project, under EU procurement directives on a design, build, finance, operate and maintain basis. However, this tendering process is still under way and contract terms, including any exit provisions, will not arise until a preferred bidder has been selected and the final contract negotiation process commences.

Finally, the Deputy will be aware that the overview of Stadium and Sports Campus Ireland project has been completed by consultants High-Point Rendel. This report has been presented to the steering group of senior officials appointed by Government to oversee the work. As soon as I receive a final report from the steering group I intend submitting it to Government for consideration and in the meantime no further statement will be made.