Vol. 568 No. 3
2 Mr. Wall asked the Minister for Arts, Sport and Tourism the Government's views on the interim report of the tourism policy review group; if it is intended to implement the recommendations made in the report; and if he will make a statement on the matter. [16245/03]
4 Mr. Deenihan asked the Minister for Arts, Sport and Tourism his views on the findings of the tourism policy review group report published recently, especially in relation to inflation, insurance costs, access transport, road access and signposting; and if he will make a statement on the matter. [16248/03]
66 Mr. Durkan asked the Minister for Arts, Sport and Tourism his plans to improve the competitiveness of the tourism industry here in the course of the current season; and if he will make a statement on the matter. [16309/03]
67 Mr. Durkan asked the Minister for Arts, Sport and Tourism if he has evaluated or identified the cause or causes of inflation in the tourism industry here; and if he will make a statement on the matter. [16310/03]
68 Mr. Durkan asked the Minister for Arts, Sport and Tourism the extent to which he has available to him, research likely to be most helpful in improving the competitiveness and efficiency of the tourism industry here; and if he will make a statement on the matter. [16311/03]
76 Mr. Stanton asked the Minister for Arts, Sport and Tourism the role his Department plays in the development of the tourism industry; his plans to further assist and develop the industry in 2003; and if he will make a statement on the matter. [16349/03]
I propose to take Questions Nos. 2, 4, 66, 67, 68 and 76 together.
As I indicated on 28 May 2003, at the publication of the interim report of the tourism policy review group, I believe the report contains a number of very important and substantive conclusions on issues of strategic importance to the future of the tourism industry, such as access, competitiveness, information technology and product development. It provides an outline framework for the way forward for tourism and its contents should be carefully considered by all those with an interest in the continued successful development of the sector.
For my part, I have begun to implement the key recommendations that relate to my Department and the State agencies under my remit. At the inaugural meeting of Fáilte Ireland, the new tourism development agency, I specifically asked the authority to consider the contents of the report and to identify a number of key areas that it might pursue with immediate effect. I have also written to the chairman of Tourism Ireland Limited along similar lines.
I have called on the industry to take on board the recommendations of the review group directed to it and to expedite the implementation of the suggested actions. A number of the recommendations are directed to Ministers other than myself, and I have already been in touch directly with the Ministers concerned to seek their considered views. For the longer term, and in line with the recommendation that my Department should play a more dynamic and effective role in shaping the range of Government policies that impact upon the development of tourism in a significant way, I have initiated arrangements to put in place appropriate bilateral structures, with ministerial colleagues and their Departments, to pursue issues of mutual interest.
As Deputies will be aware, the tourism goal of my Department is to facilitate continued development by the tourism industry of an economic, environmentally sustainable and spatially balanced tourism sector, through the formulation, ongoing monitoring and review of a range of supporting policies and programmes, particularly within the framework of the national development plan and North-South co-operation.
As outlined in Sustaining Progress, the social partnership agreement 2003-05, tackling inflation requires a number of different responses and approaches from the public and private sectors alike. Renewing competitiveness, not just in the tourism sector but for the economy as a whole, is central to the Government's overall macroeconomic policy of sustaining non-inflationary economic growth and high levels of employment. Deteriorating competitiveness is certainly one of the threats to the industry but so too is the growing dissatisfaction of visitors with overall value for money. This is much more than merely a complaint about prices paid and it is appropriate, as I have often stated, that the industry leads the way in improving satisfaction ratings by continuing to control costs, improve productivity, better manage its human resources and utilise modern technology to best advantage.
At this stage, there is a significant volume of research available on the drivers of national inflation, which is of direct relevance to the tourism industry. Going forward, the analysis of this data will provide, I have no doubt, an improved basis for the development of initiatives aimed at countering future inflation and renewing competitiveness.
For the medium and longer term I look to Fáilte Ireland, which had its inaugural meeting on 28 May last, and the tourism policy review group, which is due to submit its full report in July, to help chart a new direction for tourism. I have every confidence the industry, with the support of the tourism State agencies, will make the most of the opportunities that lie ahead as they have so ably demonstrated in the past. I look forward to seeing a new agenda that will be driven by innovative approaches to product development, co-operative marketing initiatives and quality employment and in-career development opportunities in an industry where the prospects, despite recent setbacks, are highly positive.
I welcome the Minister's reply detailing what we want to hear about the industry and what the industry wants to hear in regard to the problems facing it given the lack of competitiveness in the country and the problems of the industry as a result of world events. The Minister stated that he has contacted all the relevant Ministers where there is a crossover of responsibility in regard to the proposals of the interim report.
Was this report discussed at Cabinet or only on an individual basis with each Minister? It must be a combined effort. I know Cabinet decisions have been made and various methods proposed regarding Government efforts to try and restore the competitive edge we had. In regard to this particular report it is vital that it has the full support of Cabinet. We must ensure it gets its full backing and that the finance etc. necessary to overcome the problems are readily available. We are well into the tourism season now and anything that can be done in the short term to address the problems stated here, and earlier this morning at the Estimates meeting, should be done. In his report to the Estimates meeting this morning the Minister said the outlook was a little brighter than we would have expected. The full backing of the Cabinet in regard to this, and early decisions in regard to its proposals, would be welcome. I would like to hear the Minister's views in this regard.
I confirm that I brought the interim report to Government for noting. However, it is not the full report and therefore a full implementation of it is not on the cards at this point. Nevertheless, I took the opportunity to brief my colleagues in Cabinet in regard to the contents of the report. I then wrote individually to the Ministers involved in tourism policy with a view to ensuring we will have bilateral structures that will better enable us to jointly implement policy. By that I mean that there are many Departments which impinge on tourism policy whereas they might not be directly, distinctly or individually responsible for tourism. Accordingly, it is necessary that we have these structures to enable us to move the policy agenda forward. I anticipate that the full report should be available by the end of July. I will then bring that report to Government with a view to ensuring that as many of the recommendations as possible are implemented.
The report confirmed what I have been saying here for the last year regarding inflation. Since 1996 it is double the European average and has made Irish tourism uncompetitive. VAT in the industry increased by 1% in the last budget. VAT in Spain is 5%, and 7.5% in France. In other countries there is no excise duty on wine or spirits. This and VAT make Ireland an expensive country. Also, insurance costs are six times higher than many of our European competitors. Simple things such as transport, road access and signposting were also highlighted in the report.
Will the Minister state his views on the Ireland-US bilateral air agreement? The review group strongly advocated changing the status of Shannon. Given that it has been shown that Kerry, for example, would benefit by 50% from the flow of visitors from Shannon, whereas if they end up in Dublin the flow would only be 22%, what is his view on the effect that any change of status would have on Kerry? The review group also identified Kerry as having poor access roads. Is there any possibility that the Government will make a priority of the main access roads in Kerry such as the Ring of Kerry road, the Dingle road or the N69?
The report raises important questions. It confirms what we have been saying in the House for the past year. For that reason I welcome the report and ask the Minister to respond to the two points I raised on it.
In regard to inflation, the full implementation by the social partners of the anti-inflation and competitiveness enhancing provisions of the social partnership agreement 2003-05, Sustaining Progress, is clearly essential, particularly those provisions relating to pay, productivity and the facilitation of change in the workplace.
Also, the industry can implement measures with a view to improving competitiveness at company level by improved human resource practices, more efficient use of information technology, more innovative pricing initiatives and a relentless drive to reduce costs. Naturally, the Government also has a role in tackling price inflation.
In regard to the Ireland-US bilateral air agreement, it is true that the interim report recommends that it be renegotiated. This is not a matter for me as Minister for Arts, Sport and Tourism but for the Minister for Transport. The Deputy will be aware that recently the EU Council of Ministers on Transport decided they were going to renegotiate the open skies position with the United States of America. The transport Ministers gave the Commission the authority to carry on with those negotiations. I understand that there may be some resistance from the United States side to change. It would be premature to say what the outcome will be.
There was also an EU court judgment which has implications in regard to the bilateral agreement. In addition, the Minister for Transport has stated that it is his intention to introduce a restructuring of Aer Rianta in so far as it concerns Dublin, Cork and Shannon airports, and this a matter for that Minister. The bottom line is that if there is to be any change in the status of Shannon – I am not saying there will be – it could not occur unless specific guarantees were given to Shannon and the mid-west in regard to their future. However, it is very early days to speak in that context.
With regard to access roads, the report, among other things, referred to the need to upgrade certain routes which are often used by visitors. The objective of the report was to improve the product, to ensure that we become more attractive to visitors and that there be a greater degree of access for them. It is an objective report that impinges on many areas which have but an indirect bearing on my Department. That is the reason I wrote to all Ministers and the reason the full report will be discussed by Government in due course.
There are a number of gaps in regard to product development and innovation, one of which concerns the national conference centre. What is the position in regard to it?
The issue of the national conference centre has been an almost perennial hardy annual for the best part of 20 years. Deputy Deenihan has put down a question on the national conference centre and in reply to him and Deputy Wall, it is my intention within the next couple of weeks to bring positive proposals to Government in connection with the construction of a new national conference centre in Dublin. We will have to await the outcome of that.
