Vol. 684 No. 5
44 Deputy John Perry asked the Minister for Arts, Sport and Tourism if he has secured a lien on properties of Comhaltas Ceoltóirí Éireann; the properties on which such a lien has been acquired or requested; and if he will make a statement on the matter. [23683/09]
In the operation of capital grant schemes, it is the policy of my Department to seek a legal charge of 22 years' duration on any property in respect of which a capital grant or combined capital grants totalling €300,000 and over have been paid in respect of such premises. My Department holds a statutory declaration under the 1938 Act from the trustees of Comhaltas Ceoltóirí Éireann not only for the projects for which legal charges are required but for all moneys allocated and subsequently paid to the organisation. Under this statutory declaration, should any of the facilities cease to be used for the purposes for which grants were paid before the expiration of 22 years, those grants are refundable to the Department.
In the meantime, through the Office of the Chief State Solicitor, which is the appropriate State office for such matters, my Department is in the process of registering a charge on each of the subject properties once the various technical conveyancing requirements are executed. On completion of the registration formalities, a legal charge will be held by the Minister for Arts, Sport and Tourism on each of the properties for 22 years for the total value of the grant.
The Comhaltas Ceoltóirí Éireann projects where the value of the capital grants allocated requires a registered charge on the property in line with my Department's policy are set out in the following table:
|
Project Name |
Location |
|
Clasac |
Clontarf, Dublin 3 |
|
Cois na hAbhna |
Ennis, Co. Clare |
|
Brú Ború |
Cashel, Co. Tipperary |
|
Dundalk Gaol |
Co. Louth |
|
Coleman Centre |
Co. Sligo |
|
Dun Uladh centre |
Omagh |
|
St. Senan’s |
Kilrush, Co. Clare |
I have expressed concern about this organisation on several occasions. I stress that this is not a vendetta; my concern arises from representations I have had from people throughout the State, mainly members of Comhaltas Ceoltóirí Éireann itself. My priority is that the taxpayer be protected.
I welcome the Minister's decision to seek a lien on the properties that have been funded by the taxpayer. However, I am puzzled as to why he is effectively seeking it after the event. The Minister indicated that the Office of the Chief State Solicitor is currently processing a legal agreement in respect of these projects. Surely the legal agreement should have been secured before the money was paid out. Why is that only being done now? Is it because of concerns expressed by myself and others or otherwise?
There are 12 properties throughout the country funded by the State. When I asked about their ownership, I received an answer referring to leaseholders or owner occupiers. My difficulty is that I do not know the identity of the owner. The Minister has referred to a "group". Who are the members of this group? Does it have a single or several shareholders, how are its assets transferred and what are the procedures for disposal of those assets? Do the various entities of this organisation publish accounts and are they responsible to the Minister in any way?
There is significant cause for concern that this organisation seems to be funded differently from every other arts organisation. Why does it have a special funding line? Why is it not applying for grants under the access programme or otherwise? There must be clarity in this matter. It is up to the Minister to answer the questions about how this organisation is structured, who are its shareholders and beneficial owners and why they are benefiting in a special way.
To clarify, all legal documentation must be submitted with a grant application, and that has been done. However, several of these projects are taking some time to process and that is being done by the Office of the Chief State Solicitor. From the Department's point of view, all the legal requirements are in place. I understand the trustees of Comhaltas Ceoltóirí Éireann have signed a statutory declaration under the 1938 Act agreeing to the registration of lease on the subject properties. Clearly, if any of the properties were sold in the meantime, the full grant would be taken back by the Department.
The organisation consists of trustees but I am not in a position to supply any names now.
Will the Minister be able to do so at any stage?
The Department's responsibility is to ensure the grants are properly allocated and that the legal requirements necessary to protect taxpayers' money are in place. The information with which I have been supplied indicates that this has been done.
I also received representations in respect of Comhaltas Ceoltóirí Éireann. No one denies it does excellent and important work but issues arise with regard to the level of transparency relating to matters of accounting. In addition to the funding provided by the Minister's Department, the Department of Community, Rural and Gaeltacht Affairs also supplies Comhaltas Ceoltóirí Éireann with a substantial amount of money. Has the time come to examine the overall funding of Comhaltas Ceoltóirí Éireann in the context of investigating from where it emanates and how it is used?
It appears Comhaltas Ceoltóirí Éireann has a monopoly with regard to Government funding for traditional music and culture. Are there other organisations which might benefit from such funding? Due to the fact that Comhaltas Ceoltóirí Éireann seems to have a monopoly, perhaps the organisations to which I refer, and which could benefit from the provision of substantial funding, are being excluded.
I agree with the Deputy regarding the significance of the contribution made by Comhaltas Ceoltóirí Éireann's. In light of current economic circumstances, all of the budget lines are being examined. This is not being done in a negative way but rather to ensure we are obtaining the best value for money in the context of how the resources available to the State are used by Comhaltas Ceoltóirí Éireann and the other bodies to which we provide funding.
I am aware that there are issues of concern among some of the branches, members, etc., of Comhaltas Ceoltóirí Éireann. However, I do not want to comment on these issues, particularly as they are internal to the running of the organisation. My responsibility is to ensure the money provided is used properly, especially in the context of properties being made available for the holding of functions in respect of which that money was given in the first instance. I understand that, to date, there has been no problem in this regard. In the overall sense, Comhaltas Ceoltóirí Éireann would not necessarily have been excluded from any review that is taking place with regard to the various budget lines.
The point raised by Deputy Upton is of fundamental importance and highlights the difficulties that arise when an organisation of this nature has a monopoly and is the only one being funded by the State. Comhaltas Ceoltóirí Éireann sets the standard with regard to traditional Irish music and if one does not meet that standard, one has nowhere else to go. That is a bone of contention among certain people.
I do not intend to diminish the good work that is being done or deny that opportunities exist. However, the Minister stated in his initial reply that if I required further information, I should ask him for it. In the context of the various projects, I inquired as to the identities of the owners of the various properties but the Minister did not provide this information. Does Comhaltas Ceoltóirí Éireann own these properties or is it the local organisations? He also referred to the leaseholds on various properties but he did not indicate the identity of either the lessor or the lessee. I would be grateful if the Minister could provide information in respect of these matters to me privately.
I will try to obtain the information for the Deputy.
45 Deputy Michael D’Arcy asked the Minister for Arts, Sport and Tourism when it is envisaged that an alternative system of support for the horse and greyhound industry will be in place; if he has had an input into the decision process in this regard; if he will confirm that the 2009 allocation by his Department to the industry is secure; and if he will make a statement on the matter. [23639/09]
50 Deputy Pat Rabbitte asked the Minister for Arts, Sport and Tourism if the review of the horse and greyhound fund will be published before the end of this Dáil session; if it will be debated in Dáil Éireann; and if he will make a statement on the matter. [23603/09]
I propose to answer Questions Nos. 45 and 50 together.
Government support for the horse and greyhound racing industries is provided under the horse and greyhound racing fund, which was established under the Horse and Greyhound Racing Act 2001. In 2004, the Government put in place regulations to increase the limit of the horse and greyhound racing fund from €254 million to €550 million to continue the fund for a further four years to 2008. By the end of 2008, a total of €545.8 million had been paid out of the fund. The remaining balance in the fund at the start of 2009 was €4.2 million. Some €68.1 million has been allocated to the fund for 2009 and a regulation which increased the level of the fund by €63.907 million has been made by the Minister for Finance.
Funding of the agencies involved supports two very important productive industries and helps to sustain the important role of horse and greyhound breeding and training enterprises in the development of the rural economy. These industries account for an estimated 27,500 direct jobs, generate substantial economic activity and make a vital contribution to the rural economy, including in the context of farm incomes. The funding given to the greyhound racing sector assists in sustaining a tradition that has existed for hundreds of years and in underpinning the economic activity in what are in many instances less affluent regions. This funding has allowed Ireland to develop into a world centre of excellence for horseracing. Horseracing Ireland has undertaken a capital investment programme that has underpinned growth in the sector. The fund has also contributed significantly to the almost €90 million that has been invested in the improved facilities now available at greyhound tracks throughout Ireland.
A review of the fund is nearing completion and will be submitted to the Government in due course in the context of deciding on the future funding of these industries. Any extension of the fund will require the approval of the Government and the Oireachtas. In finalising the review of the fund I intend to take into account the comments made by the Members of the Oireachtas during recent discussions at meetings of the Joint Committee on Arts, Sport, Tourism, Community, Rural and Gaeltacht Affairs and in the House during the making of the Horse and Greyhound Racing Fund Regulations 2009. I have already given an undertaking to the joint committee to engage in a discussion on the review and I will adhere to this.
I thank the Minister for his reply. We discussed this matter on a number of occasions recently, both at the joint committee and elsewhere. I do not intend to comment on it in detail now. However, when we discussed the outputs for the year it was discovered that the target outputs keep changing. The first target was to introduce a new fund for a number of years but this morphed into a complete re-examination of how the organisation would be funded.
The year began with an increase in betting tax and the intention was that this would fund the horse and greyhound racing industries for the year, with little need for general Exchequer moneys. However, following successful lobbying from the betting industry, the tax has been reduced to 1%. This move was explained away by a statement to the effect that it would be better to seek a new source of funding — from Internet betting, etc. — for the industries involved. I would like to believe the latter was true but the Minister previously indicated that he has considered the matter and discovered it would be almost impossible to arrive at a new funding mechanism. Has any real thought been given to finding a new source of funding or is what is being done a mere exercise in window-dressing aimed at mollifying those who lobby loudest?
It was expected that a tax of 1% would yield between €30 million and €40 million. If the levy is reduced to 1%, from where will this money come? Will it be provided from general Exchequer funds or from the sports budget?
All of that money will still come in. The Deputy is referring to the 1%. There was an increase to 2% and then the clawback of the tax occurred. The truth is that I will not know the outcome until the end of the year. The shortfall will be made up by the Exchequer because my Department does not have funding available to meet it. We will be obliged to wait to see what will be the outcome.
In fairness to those involved in the industry, it became clear, following the recent and dramatic change in people's fortunes, economic activity, etc., that the gain would have been quite marginal. It also became clear that, if we had proceeded on the basis originally intended, many small operators would have been obliged to close down and that many people in rural areas would have lost their jobs.
The taxation relating to this issue comes under the remit of the Minister for Finance. Key officials in his Department have been engaged in an examination of the taxation side of this matter for some time. They also have been considering some of the issues to which the Deputy refers. Therefore, two Departments are involved in investigating the matter but the officials from the Department of Finance are taking a strong lead role in respect of the taxation side. They want the issue to be resolved and we are being extremely supportive in assisting them in reaching that point.
The Minister stated that the review will be published in due course. I had understood it would be published before the end of the current Dáil session. Will the Minister confirm if this will be the case? The review is going to be extremely important, particularly in the context of how we might move forward.
The betting tax was predicated on a figure of 2%. As Deputy Mitchell stated, this was reduced to 1% following strong lobbying. Everyone has a great deal of sympathy for the small bookmakers. However, the key question — the Minister is not going to answer it today — revolves around from where the money to meet the shortfall will come. I accept it is a difficult matter with which to deal, but what is the position with regard to offshore betting? Will it be possible to address this matter?
My view is that it must be addressed. There has been an enormous growth in the level of offshore, telephone and Internet betting. I have just highlighted that the fundamental difficulty is many of the companies are not based in Ireland and as a taxing authority we do not have the ability to tax in another jurisdiction. That being said, other ways and means are being reviewed as to how we may address this. As I said before, I thought it was in the industry's interest to work with us in coming up with a solution as to what would be a reasonable percentage to the Exchequer, which would comfortably fund the horseracing industry.
All who work in or are involved in the horseracing industry, big and small, have a vested interest in seeing this matter resolved. The industry accepts that the Exchequer is no longer going to fund or make up any shortfalls from now. If we are going to have a fund for the next five years, it has to come from the resources that are being gambled within the industry, to replenish that fund on an annual basis.
I am not sure what the Minister is saying. Is he saying that it cannot be funded by the taxpayer? Yet, he has ceded to the Department of Finance a 1% levy, and this means he will be short €30 million to €40 million in his Department. Is he saying now that the income of the horse and greyhound industry will effectively be halved this year? If so it is a disaster for the economy, never mind the horseracing industry, given its importance throughout the country, and in terms of bringing in foreign exchange. It is worth some €200 million in direct exports, not to mention the revenue earned from horse training, which is a major source of employment in the country. Is the Minister now saying that the industry's revenue is going to be halved and we are only hearing about this half way through the year?
The Minister says that the Department of Finance is taking the lead on taxation. Of course it is. However, Deputy Cullen is the Minister who is supposed to defend this industry and he has to assert himself at the Cabinet table. Yet, he has let the income be halved with no clear view as to how the revenue will be replaced.
Is the Minister talking about a ringfenced fund in the future if an alternative source of revenue is to be identified? If not, will the Department of Finance take it back into the general Exchequer, even if it identifies a source of funding? Will there be a special fund?
The legislation has a specific ringfenced fund and that will be the intention — certainly mine — for the future. I do not know how the Deputy extrapolated from what I was saying, in a general sense, that the whole income of the industry will be halved this year. I did not suggest that at all. I do not know——
The Minister does not know.
The industry is feeling the effects of the economic downturn like everybody else.
I am talking about the Exchequer, the €67 million fund that is guaranteed and was granted at the beginning of the year.
There should still be an income if matters go right, of at least €35 million to €40 million, which would leave a shortfall of somewhere in the region of €25 million or €26 million, but we do not know, as yet, what the outcome of that is going to be, and so I am waiting——
This means, in effect, that half the revenue is virtually gone, even though it was guaranteed by the Minister.
That revenue was based on the assessment last year of increasing the tax.
The industry did not take away the tax. The Minister agreed to it at the Cabinet table, and now half the revenue the industry was expecting is gone.
The point I was trying to make to the Deputy was that it would not have come in as the downturn and the change has been of such a nature that it would not——
Nevertheless, the Minister is not going to persuade me that a 1% reduction in tax is going to have no impact. Of course it will.
The Deputy should please allow the Minister to answer.
Of course it will have an impact. I did not say it would not have any impact. However, the impact it would have had would, in effect, have put an enormous number of people onto the social welfare system, thereby moving people out of employment.
What impact will this have on the industry?
Please Deputy Mitchell. I shall allow a final supplementary from Deputy Upton.
I am seeking a timeframe on the review because that is what we need in order to clarify a number of these questions.
I am somewhat in the hands of the experts who are working on this with the Department. I hope it can be finished fairly shortly. My intention, as I said to both Deputies Upton and Mitchell, was to get this back to the committee before the end of this Dáil session. It is still my wish that should happen. I should like to have that discussion because it would be helpful for me.
46 Deputy Frank Feighan asked the Minister for Arts, Sport and Tourism the measures being put in place to address the continued downward trend in inward tourism; and if he will make a statement on the matter. [23645/09]
49 Deputy Bernard J. Durkan asked the Minister for Arts, Sport and Tourism the option open to him to encourage development in the tourism sector in 2009 with particular reference to competing with other tourist venues; if he will increase or enhance investment in this area; and if he will make a statement on the matter. [23600/09]
56 Deputy Joanna Tuffy asked the Minister for Arts, Sport and Tourism the new tourism initiatives planned for 2009 aimed at maintaining Ireland’s tourism market share; and if he will make a statement on the matter. [23691/09]
187 Deputy Bernard J. Durkan asked the Minister for Arts, Sport and Tourism if he has examined the effect of the economic downturn on the hotel and catering industry; if he will take steps to address issues arising; and if he will make a statement on the matter. [23818/09]
188 Deputy Bernard J. Durkan asked the Minister for Arts, Sport and Tourism if consideration has been given to issues expected to have a negative impact on the tourism industry in the course of 2009; if he will issue direction or instruction to address such issues; and if he will make a statement on the matter. [23819/09]
189 Deputy Bernard J. Durkan asked the Minister for Arts, Sport and Tourism the steps he will take directly or in conjunction with tourist interests with a view to improving the competitiveness of the industry internationally; and if he will make a statement on the matter. [23820/09]
190 Deputy Bernard J. Durkan asked the Minister for Arts, Sport and Tourism if he will make particular policy changes with a view to assisting the tourism industry; and if he will make a statement on the matter. [23821/09]
I propose to take Questions Nos. 46, 49, 56, 187 to 189, inclusive, and 190 together.
Latest figures from the Central Statistics Office show a reduction of 6.3% in the number of overseas visitors to Ireland for the four months of 2009 compared with the corresponding period of 2008. Overseas visitor numbers for 2008 as a whole were down by just over 2% on the record 2007 performance, although the figure of almost 8 million was the second highest ever.
While any reduction in the number of overseas visitors is disappointing, it must be seen in context. Ireland enjoyed several years of successive growth in visitor numbers, reaching a record of just over 8 million in 2007. Tourism worldwide saw a significant downturn in the second half of 2008 due to the global economic slowdown and loss of consumer confidence. Great Britain, as a source market, was particularly affected with the euro-sterling exchange rate making it extremely challenging to attract visitors to eurozone destinations. However, so far in 2009, we are performing relatively better than many of our European competitors, including Great Britain. For example, figures show a fall of 13% in overseas visitor numbers to the United Kingdom in the first quarter, compared to the reduction of just over 9% in Ireland.
There is no doubt that 2009 will be a very difficult year for tourism globally. Nevertheless, it is important to remember that, despite the downturn, millions of people across the world will still take holidays this year. The industry and the tourism agencies are fighting hard for every bit of this business.
To assist the tourism sector through this current difficult period, an extensive range of marketing, product development, festival and sporting events, training and business supports are being rolled out by the tourism State agencies under the tourism services budget of the Department. For example, despite cutbacks in public expenditure, the core overseas marketing spend has been maintained in 2009 at over €47 million, in recognition of the key contribution which tourism makes to the Irish economy. Tourism Ireland is telling customers in key markets that Ireland is easily accessible and offers great value for money at present, as well as rolling out its new destination campaign, "Go Where Ireland Takes You". I am assured that Tourism Ireland is keeping all of its marketing programmes for 2009 under review to ensure they maintain the flexibility and responsiveness that is required.
On the domestic front, Fáilte Ireland has committed to its largest ever campaign to promote home holidays in 2009, on foot of research indicating that more Irish people will consider swapping their overseas trips for breaks in Ireland. Fáilte Ireland is also working closely with tourism businesses all over Ireland, supporting enterprises and helping them to achieve real cost savings and efficiencies.
While our businesses and tourism agencies are responding positively to current challenges, it is just as important that the strategic framework for tourism development responds to the changing environment. Accordingly, I established the tourism renewal group, which has been tasked with reviewing and, where appropriate, renewing the current tourism strategy to ensure that it is focused for the short term and, looking further ahead, that the tourism industry is well placed to benefit from the upturn when it comes. I expect the group to report back to me in the near future with recommendations in the form of a framework for action for the period to 2013. I believe the group spoke to the two Deputies as well, if I am correct. Members of the group told me they wanted to do that and I encouraged them to do so.
One of my priorities as Minister is to ensure that the importance of tourism is reflected more widely in relevant policies and programmes. This is recognised and reflected in the Government's policy document, Building Ireland's Smart Economy: A Framework for Sustainable Economic Renewal, which makes specific reference to the work of the tourism renewal group and the potential of the tourism sector.
The industry deserves great credit for its commitment to quality in responding to the current challenging economic conditions through more flexible pricing and offering special value offers and packages. I am confident that with the support of the agencies, the tourism sector here has the capacity to manage the current cyclical slowdown and that, looking further ahead, the renewal group's review will help the sector to return to sustainable growth in the medium term.
I am aware of the ongoing marketing of Ireland and the fact that money has been maintained in this area, and it is all very welcome. However, it is undermined completely by a departure tax. I ask the Minister, as somebody who sits at the Cabinet table, how he could let this happen. How could he let such a totally counter-productive instrument as a departure tax happen to the tourism industry? To spend €70 million on marketing to attract people here and incentivise them to come to Ireland, and then to have this enormous disincentive put on them when they get to Ireland is counterproductive. The Minister told me that other countries have similar taxes, as they do, but in the face of the current downturn in travel and in tourism generally, they are removing those departure taxes, while we are imposing one.
Aer Lingus is taking its US flights out of Shannon Airport and its most recent disastrous announcement is that in its returns for the year it forecasts a loss of €100 million. Aer Lingus puts at least €30 million to €40 million of that down to the departure tax. That is unsustainable. We are down to two short-haul airlines. Aer Lingus no longer does direct bookings from abroad, it will not code share and it is not partnering with other airlines to facilitate direct bookings from anywhere. One cannot get a direct booking into Ireland from anywhere outside the EU virtually.
Is any strategy in place? Is the Minister talking to the Minister for Finance? Is he doing anything to ensure we have competition for the two airlines we have and to rescue Aer Lingus, because it is on a totally unsustainable path, particularly in view of the departure tax? Airlines cannot pass on that departure tax; they must absorb it.
Nobody wants any extra tax put in place and tax of that nature does not help the situation. However it is time for us to debunk the travel tax issue. I have spoken to all the travel agents internationally and they have no concern with it. They are far more concerned about airlines lashing on charges by the new time for luggage, and God knows what the price of an air ticket is by the time one reaches the airport.
It is not the airlines but the people who are concerned.
That is not a big issue. I would prefer if it were not in place and I would like to see it gone, but I will not accept that the travel tax, as has been raised by some low-cost airlines and Aer Lingus, is the cause of all their travails. It is not true. If it were true, the costs they have put on in fuel surcharges, luggage charges and God knows what else are way beyond the amount of the travel tax. We need to be more rational when we examine this and stop blaming the State for every ill out there.
There has been very substantial readjustment of the tourism budget over the past few months. For the first time ever there has been a major, co-ordinated campaign between Tourism Ireland and the individual airlines where they have put their marketing budgets together and are promoting Ireland very intensively. It seems to be working and we saw its effect in the US yesterday with the fares that have been announced. It is promoting Ireland very intensively. The information I have received is that the market has picked up dramatically in recent weeks. That is because of very intensive discounting and marketing.
Will the Minister outline some of the specific initiatives that have been taken on internal tourism? I agree with Deputy Mitchell on the tax, which is a very significant problem, despite what the Minister said. Internal tourism will clearly be very important. What initiatives have been taken?
A very brief reply from the Minister.
I cannot give a brief reply if the Deputy wants that information.
The Minister has only one minute remaining.
Tourism Ireland is communicating strongly to consumers in overseas markets that the island of Ireland is a great place to visit, is easily accessible and offers the consumer great value for money. There has been great emphasis on discounting and it is having a very positive impact. Tourism Ireland is spending 66% of its marketing budget in the first half of the year to frontload its marketing campaigns across all markets to secure as much business as possible for the peak and shoulder season. It has invested approximately 40% of its overseas marketing spend in tactical and co-operative marketing activity to stimulate business to the island of Ireland, as I have just highlighted, and to convey the message of great fares, excellent offers from the industry on the ground here and a wonderful holiday experience. It is providing more than 680 platforms and 2,600 promotional opportunities worldwide to the industry so it can present to consumers compelling, bookable offers across the channels.
Deputy Upton asked me about the home market, and Fáilte Ireland will invest more than €3 million with additional industry support for a year-round domestic marketing programme incorporating television, radio, press and outdoor channels to promote awareness of and interest in taking a break this year. Key messages in the 2009 campaign will be the convenience and value of holidaying at home. An additional €4 million will be invested in supporting local and national festivals. This has proved to be enormously successful this year. All the small and large festivals around the country are drawing significantly more people than in years past and that is having a tremendous benefit in the local economies and areas in which it is difficult to create activity.
Written Answers follow Adjournment Debate.
