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Dáil Éireann debate -
Thursday, 17 Dec 2009

Vol. 698 No. 5

Priority Questions.

Before I start I wish to express my sympathy to the families of the late Liam Clancy and Ciarán Mac Mathúna. They were two great icons of Irish arts in their broadest sense. I convey sympathy on my own behalf and on behalf of the Government. They were two fantastic people and we mourn their passing. Ar dheis Dé go raibh a n-anam dílis.

I would like to be associated with the remarks in respect of Ciarán Mac Mathúna and Liam Clancy.

I would also like to be associated with those expressions of sympathy. Ciarán Mac Mathúna was a constituent of mine and a very well regarded and well respected traditional music person as was Liam Clancy.

I also join the Minister in expressing condolences.

Tourism Industry.

Olivia Mitchell

Question:

1 Deputy Olivia Mitchell asked the Minister for Arts, Sport and Tourism the action he has taken to implement the survival actions outlined by the tourism renewal group to ensure the endurance of the tourism industry in the current economic climate; and if he will make a statement on the matter. [47909/09]

The report of the tourism renewal group was launched on Thursday, 8 October 2009. This report sets out tourism's contribution to Ireland's economic, social and cultural development and the prospects for Irish tourism in a changed world, as well as a framework for action for tourism's survival, recovery and growth over the period to 2013. The report proposes five survival short-term actions to minimise the potential impact of current challenges and nine recovery actions for medium-term attention to set Irish tourism back on a growth path as the world economy recovers. All of these actions are being pursued by myself, the Department and the relevant agencies.

Building on the framework for action, along with the Government's wider strategy for economic renewal, the budget recognised the tourism sector as a critical, labour intensive indigenous sector. The overall tourism services budget will be increased in 2010. This will enable the level and value of investment in overseas marketing of Ireland to be maintained in real terms, as recommended by the tourism renewal group. Investment in visitor attractions will be increased to €22 million. The Government's commitment to tourism is also shown by its inclusion in a range of cross-cutting measures, including the employment subsidy scheme, the credit review system and incentives for investment in energy-efficiency, all of which support sustainable tourism enterprises and employment. Further specific measures that will help tourism include the changes in alcohol excise duties and VAT and the rail travel initiative aimed at senior citizens visiting Ireland from abroad, although I hope to make this valid for people from the age of 55 upwards because there is a strong cohort aged between 55 and 65 years.

I believe that drawing on the report of the group, Government and the tourism agencies are identifying and driving the right measures to assist in ensuring that tourism survives and to position the sector for recovery and growth as the Irish and global economies get back on track.

I recognise and welcome the budgetary measure to give older persons free travel on the trains. It may not go as far as I had hoped but it is welcome. The travel tax, however, was not recognised. The tourism renewal group recommended ending it as a major survival action. It is also a major recommendation of the National Competitiveness Council in this month's report. I do not understand how the Government missed the opportunity presented by the budget to get rid of a travel tax that every business organisation says is destroying Irish tourism. It also makes Irish business very difficult too.

Yesterday, I read in the newspapers that another airline went to the wall. I heard the Minister for Transport saying before the budget was announced that he did not believe this tax had any impact on travel but he is not talking to the airlines because he does not seem to get the point that the airlines are affected. Hotels are not because they do not connect with decisions made in Germany or elsewhere.

The airlines have not passed on this tax because their sales are very price sensitive. Instead they are moving their bases and planes out of Ireland. Yesterday, we heard that Ryanair has opened a base in Malaga going to 19 airports, none of them in Ireland. This is a disaster waiting to happen. Already Aer Lingus is teetering on the brink of collapse. Will the Minister bring the message to Cabinet that this travel tax must go before it does irreparable damage to Ireland?

There is a question on this issue later which we will reach this afternoon. I am happy to deal with the matter now but there is a specific question on it. I agree with much of what the Deputy says but I will deal with the issue on Question No. 9.

We may not reach it in the truncated time we have this evening.

The tourism renewal group and others involved with tourism have raised the issue of this tax and in a perfect world I would not recommend it, nor did I in the first instance. The Government, however, has to balance that against my need for income to sustain the tourism budget and try to grow it this year. Such taxes are not helpful but that must be placed against the fact that tourism was the only sector in the budgetary system that increased this year. That was greatly welcomed. The Deputy is aware of the positive responses to the budget from organisations such as the Irish Hotels Federation. I am worried when I see the remarkable recovery of the American market, which was down only 2.2% at the end of September when Aer Lingus was down almost 26%. That is not in harmony with the general market figures.

I met with Continental and Delta airlines, US Airways and Aer Lingus early in the year when the figures were disastrous in the American market for the first quarter. We began giant marketing programmes and specific programmes with the airlines which worked extremely well. There must be a message for Aer Lingus in this if the market is down only 2% and Aer Lingus is down 25% or 26%. This is extremely worrying because Aer Lingus is an important part of the brand and marketing of Ireland and will have an important role.

While I appreciate all that is being done to improve the American market, does the Minister accept that the travel tax does not impact as much on the American market as it does on the short haul flights to Europe? A tax of €10 on a flight that costs only €5 has a much bigger impact than on a flight costing €200. The travel tax impacts on the short-haul and European flights, the flights for a weekend. This is not to deny the importance of the American market.

In a perfect world, one would not want any taxation but I am puzzled when I see the charges for baggage, which are way in excess of——

The Minister does not get the point. The tax is not being charged. The airlines are not passing it on to passengers.

I accept that. I am not disagreeing with the Deputy but these extra charges which are passed on, as well as those for booking on the Internet and the differences about arriving at the airport are way beyond the €10 travel tax. Airlines seem to be able to do that at will without difficulty and pass those charges onto their customers at the same time, yet the travel tax is made out to be a bigger issue, which I question.

Departmental Funding.

Mary Upton

Question:

2 Deputy Mary Upton asked the Minister for Arts, Sport and Tourism his views on the impact the cuts announced in budget 2010 will have on the areas of arts, sport and tourism; and if he will make a statement on the matter. [47991/09]

Funding for my Department for 2010 is €501 million, a decrease of 7% on the 2009 figure. The tourism services budget for 2010 is over €155 million, representing an increase of 2% on 2009. The enhanced allocation for tourism for 2010 is clear recognition by Government of the important role that the tourism and hospitality sector will play in Ireland's economic recovery. A total of €22 million has been allocated for capital investment in tourism product development, a threefold increase over the 2009 level. This investment will be focussed on completing the upgrading of some major tourism attractions, developing a select number of new visitor attractions, improving infrastructure for recreational cycling, walking and water-based activities and local heritage attractions.

The 2010 allocation for the Tourism Marketing Fund is over €44 million. This will enable the level and value of investment in overseas marketing of Ireland to be maintained in real terms in 2010 as recommended in the report of the tourism renewal group. Funding to arts, culture and film for 2010 is €166 million. Within this, I am pleased to have secured over €69 million for the Arts Council which will continue to sustain the country's main arts organisations, keep regional arts and theatre venues open and support local festivals and touring initiatives.

Funding for the Irish Film Board is €19 million. The section 481 tax relief scheme for investment in film and TV production is maintained until at least 2012, underpinning the Government's commitment to the importance of our indigenous Irish film and audiovisual sector. Culture Ireland's allocation for 2010 is over €4 million. Culture Ireland and Tourism Ireland have intensified joint planning on cross-promotions in the cultural tourism field. Capital funding for arts infrastructure has been consolidated in my Department and all major arts capital projects will be completed as will regional capital projects to which commitments have been made. Day-to-day funding for the national cultural institutions is maintained at or above 2007 levels and their capital funding is maintained at 2009 levels.

The Deputy will be aware that, at the Global Irish Economic Forum held in Farmleigh in September, there was wide acknowledgement of the importance of culture in promoting Ireland abroad and developing a unique brand for the country in new markets. Internationally, the creative economy is moving centre stage and creativity is seen as a crucial bedrock, underpinning our knowledge economy. I am pleased that these significant levels of funding have been secured to support the arts next year.

Additional information not given on the floor of the House.

A total of €48 million has been provided for the sports capital programme in 2010. This will ensure that commitments arising in 2010 from previous allocations under the sports capital programme will continue to be met. With regard to the local authority swimming pools programme, the allocation of €7.5 million in 2010 will be sufficient to meet commitments arising in 2010 under the current round of the programme. Funding of €49.8 million has been provided to the Irish Sports Council for 2010 and is a significant investment by Government to enable this important agency maintain existing programmes and build on recent significant progress in all areas, including local sports partnerships, Buntús, women in sport, older people and sport, youth field sports and the high performance programme.

Due to the economic constraints, it is not possible to move forward with the main phase 1 of the national sports campus project at this time. In the meantime, however, €3 million capital has been provided in my Department's 2010 provision for the refurbishment of the former Marine Institute building at Abbotstown which will be used as a headquarters for national governing bodies of sport.

An estimated 27,000 jobs are supported by both the horse and greyhound industry in Ireland and significant inward investment is attracted to the country. Taking account of the need to continue to support both industries, €59.3 million is being allocated by Government to the Horse and Greyhound Racing Fund in 2010.

I believe that the importance of the arts, sport and tourism sectors to the country are reflected in the commitments contained in the renewed programme for Government and in the funding secured under the budget for my Department's activities over the course of 2010. I look forward to a number of exciting developments next year, including the completion of two major projects — the national conference centre and the Aviva Stadium at Lansdowne Road — and the continuation of significant pieces of work which are ongoing at present regarding the new National Concert Hall project, the assessment of the GPO complex as a possible location for the Abbey Theatre and the creation of a new national opera company.

I thank the Minister for his reply. I have talked to people in the arts, sport and tourism sectors who feel that the wool has been pulled over their eyes. They were expecting such bad news. This is true of the budget in general, and it is the feedback on it. When they hear, for example, that the Arts Council is only to have a 13% cut for the entire year, they believe this is not so bad. I do not agree with that.

How much will the Kennedy homestead memorial project cost, for example, and when is construction expected to begin? Is it a matter for the OPW or the Departments of Arts, Sport and Tourism? Where will the funding come from to man these capital projects because while the tourism percentage is up by 2%, virtually everything else is decreased in this regard apart from the capital budget. That means many more buildings will appear, including the Kennedy homestead development, so where is the current funding to come from to support those projects?

The Kennedy project the Deputy refers to is an OPW proposal. It was announced by the Minister for Finance in the budget and the OPW is part of the Department of Finance. The resources are secured and will not be coming out of the budgets here. As the Deputy can see, we have an substantial number of projects in place that we want to complete. We shall seek to secure new projects, not all of them necessarily requiring current funding from our perspective. Many of them are well able to provide their own funding, as, for example, different projects in the tourism sector. It is correct that some are State operated, but some are managed by local authorities in many different areas around the country. I accept these are challenging times in terms of current funding for anything, regardless of whether it is national or local government.

After years of growth and enormous capital provision around the country, I did not want some of these facilities closing down, so I decided that no matter how difficult it would be, we must try to sustain these centres and keep them open, at a minimum, while maintaining as much employment as possible within them. I am sure the level of activity is not as high as they would like and I accept that if they had more money, they would do more. However, the alternative would not be acceptable.

I have a few comments in regard to sports as well, although I have a final comment to make in respect of arts. Multi-annual funding is one of the features of great importance, particularly for the Arts Council, in terms of being able to engage people, for example, for opera singing and so on. The council has to engage people, perhaps two years in advance, and it cannot do this without multi-annual funding. There is no word about this anywhere in the budget and it is something about which the council would like to have heard.

There is no national sports campus and no new local authority swimming pool. All of this has closed since 2000, so overall the Minister's comments would be appreciated in terms of what is happening with sport because, again, the budget is significantly down in terms of 2008 funding.

As the Deputy is aware, the response from the Irish Sports Council and many of the NGBs around the country has been extremely positive, in the context of the budget, with the money that has been allocated——

They have been softened up.

——which, of course, has been substantially increased in recent years. Most of the sports council's facilities will remain in place, and this is most important. We have completed an significant amount of capital investments throughout the country in recent years, as the Deputy has indicated. She mentioned the swimming pool programme and five are still under completion out of the 45 we built around the country. It is not as if all development has stopped. The Deputy is right, and I would love to have an ACCESS programme opening again for the arts, and ACCESS 2 for the swimming pool programme, but, again, that is not available to me this year. Choices had to be made and, as I have made clear to the Deputy, whether it is arts, sport or tourism, I wanted to sustain employment as much as possible and market all these facilities as best I can, with good budgets. That is what is being done at home and abroad and as things recover.

If I was to accept multi-annual funding based on current circumstances, it would only be going one way, downhill. We all hope, given the quality of the budget as presented, that we get to mid-year when Ireland will begin to see the benefits of an upturn. If that happens, we should be in a stronger position to look at the funding available in the years ahead.

Tourism Industry.

Olivia Mitchell

Question:

3 Deputy Olivia Mitchell asked the Minister for Arts, Sport and Tourism his views on the report by Dr. Peter Bacon on the unsustainability of many hotels here; his views on the implications of this report for future tourism infrastructure; and if he will make a statement on the matter. [47910/09]

I have noted the report, Overcapacity in the Irish Hotel Industry and Required Elements of a Recovery Programme, by Peter Bacon & Associates, which was published very recently. Its main conclusion is that between 12,300 and 15,300 hotel rooms need to be removed from the market if an appropriate balance is to be achieved that would allow the sector to recover to a stage where it can provide adequate returns and regain overall solvency.

I note the report's analysis that the overcapacity in the system at present has been caused by additional hotel development and investment in recent years and reduced demand and that in order to restore the financial health of the sector, there will in all likelihood be less rooms in future years. Many of the recommendations in what is a complex and wide-ranging report are for the industry itself to address, while others relate to the availability of credit, local authority rates and amendments to the accelerated capital allowances scheme. These issues are matters for consideration primarily by my colleagues, the Tánaiste and Minister for Enterprise, Trade and Employment, the Minister for the Environment, Heritage and Local Government and the Minister for Finance.

With regard to my response to the report, I continue to support the development of Irish tourism and, through the international and domestic marketing effort of the tourism State agencies, seek to increase visitor numbers for hotels and others accommodation providers. My input to the 2010 budget has ensured that it incorporates a range of measures and initiatives to renew Irish tourism. These include the maintenance in real terms of the funding for the tourism marketing fund, an increase in overall funding levels for tourism services and a trebling of the funds available for tourism product development. In addition, a new rail travel initiative aimed at senior citizens from abroad and a reduction in excise duty on alcohol products and VAT will assist the sector in addressing the cost of holidaying here. Key elements of the budget build on actions recommended in the report of the tourism renewal group to which I referred in my earlier response.

In commenting on the budget, the Irish Hotels Federation welcomed the decisive measures to restore the public finances and the acknowledgement by Government of the important role of tourism in the economy and specifically welcomed the measures that I have just outlined.

There is no doubt that the tourism industry as a whole had a very difficult year in 2009 and many challenges remain in the coming years. That said, there is, I believe, real potential for the industry to return to growth in 2010. The increased allocation of public resources provided in the budget — at a time of major financial retrenchment — is clear recognition by the Government of the important role that the tourism and hospitality sector will play in Ireland's economic recovery. I will continue to work closely and meet with the hotel industry to ensure that it plays its full part in that recovery.

No matter what the Minister does, he will never fill all the hotel beds that have been built over a number of years.

On the Bacon report, which was the subject of my question, its conclusion was — I find this hard to accept — that we gave tax breaks to developers to open hotels and now we are to give them tax breaks to close them. Nevertheless, this raises a big issue and I have written to the Competition Authority in this regard, since I believe it completely distorts competition and gives rise to all types of issues regarding, I suspect, reckless trading and predatory pricing. Many of the tax incentivised hotels, as the Minister knows, were never viable from the day they opened. I am getting reports almost every day from people who genuinely know what is going on that, nonetheless, the banks are pouring working capital into these hotels. On the other hand, those hotels that are viable, with substantial debt, cannot get working capital. This is a very real issue and I raise it only to ascertain whether there is anything the Minister can do. Simply talking to the hotels and sending marketing people to the USA is not going to cut it. We are going to have to do something because the existing infrastructure will be closed down if we wait for NAMA.

The real danger is that, when NAMA takes over these loans, it will do the same thing because there is nothing in its business plan to suggest it will go after non-performing loans. What can the Minister do?

In the first instance, I am very much aware of the issue, as is the Government and the Minister for Finance. There is an issue here for NAMA because undoubtedly there is distortion. Some properties are clearly not viable, without mentioning any specifically, but we all know where they are. They are distorting the market and are simply being kept open to turn some money over, which is having a negative impact on the competitive pricing that good hotels have been able to produce. If we look for a silver lining, one of the effects of recession is that the cost base is reducing in Ireland. That had to happen, since there is no question but that we had priced ourselves out of the market. Clearly, what is happening now is driving down costs.

However, there is a difference between hotels where costs are being driven down to what are still commercial prices, albeit not at the same profit levels as before, and those that are clearly not viable. We must deal with that issue. There are four areas of concern: demand, costs, access to credit and over-capacity. We can deal with demand because that is our job through the tourism agencies. The Deputy will be aware that 900 German travel agents visited Ireland, which was a major success. For the first time, we are advertising on German television this year, so even with less money we are expanding what we can do. There is huge value to be obtained and that is just one example.

We are already seeing the benefit of lower costs across the spectrum, which are being received positively in other markets. Access to credit is an issue concerning working capital with the banking system as we go through the winter. I also accept that over-capacity is an issue. We are working to resolve these matters.

Even in the best of days there was not enough business to fill those hotels, so the Minister is not going to do it now in the middle of a world recession. We must do something, however, to save the hotels that are still there. A lot of personal and State money has been invested in that infrastructure around the country. If we wait for NAMA to sort it out, half the hotels will have closed down. It is not just a personal issue for hotel owners, but also a national issue in terms of tourism. There is no point in trying to market Ireland abroad if we find that half the hotels are closing down here, or just opening some bedrooms. It is doing damage to the infrastructure network we built up around the country. What is the Minister going to do? He tells me he will create demand, but that will not do it. These are non-commercial practices and we must deal with them.

As the Deputy is aware, I have met regularly with the Irish Hotels Federation and other representative groups.

They have no input.

Please allow the Minister to reply.

The top line message from the Irish Hotels Federation and all involved in the tourism industry in recent months is for the tourism sector and agencies to maintain their budgets.

That is not the question I asked.

I am telling the Deputy what was their primary message. We have dealt with that because it is within my capacity to try to increase demand. I agree with the Deputy that we have an over-capacity and I quoted the Bacon report in that respect. I am not arguing about whether the figures are a bit high or low, but there is an over-capacity issue. There is no doubt that some of the hotels that are currently being supported by the banking system are not viable. They are only doing so to turn money and I have put that on the record. I have spoken to the Minister for Finance about this and the Government is aware of it.

Is it legal? Has the Minister of State checked it out?

We will have to deal with this issue in the near future.

We need to move on. We are almost two minutes over time on this question.

This is predatory pricing.

It is not even predatory pricing on the basis that these companies are going to survive, because they will not.

Is it regulated? Talking to the hotels will not solve the problem.

Restaurant Sector.

Olivia Mitchell

Question:

4 Deputy Olivia Mitchell asked the Minister for Arts, Sport and Tourism his views on the future viability of the restaurant sector; the discussions he has had regarding the competitiveness issues affecting the industry in view of the importance of gastronomy to the tourism industry; and if he will make a statement on the matter. [47911/09]

The restaurant sector, like all businesses in tourism and hospitality, has had a very challenging year in 2009. Prior to the budget, the Restaurants Association of Ireland launched a ten-point plan to protect employment, create new jobs and ensure the viability of the sector. In September last, I met the president and the chief executive of the association and discussed key issues of concern to them, including competitiveness issues.

The budget has responded to a number of the issues raised by the association as follows: the reduction in excise duties on alcohol and VAT; the introduction of an enhanced scheme of accelerated capital allowances for energy efficient equipment to include catering and hospitality equipment; an increase in the tourism services budget of 2% to over €155 million in 2010, including maintaining the level and value of investment in tourism marketing in real terms; and a rail travel initiative aimed at senior citizens visiting Ireland from abroad.

In addition, the Tánaiste and Minister for Enterprise, Trade and Employment recently extended eligibility of the employment subsidy scheme to include the tourism and hospitality sector. She has also established a credit review system for all SME sectors, including tourism, and has extended the work placement scheme to include small businesses. Furthermore, my colleague, the Minister for the Environment, Heritage and Local Government has also commenced the process of examining the burden of local authority charges on business through the establishment of a local government efficiency review group to review the cost base, expenditure of and numbers employed in local authorities. This group is due to report by the middle of next year.

Aside from the budget and related initiatives, Fáilte Ireland is working closely with businesses to help them survive the recession and emerge prepared to take advantage of the anticipated upturn in the medium term. Specifically, Fáilte Ireland is providing a range of business support services, including a business mentoring and coaching service, and a business advisory service, as well as the Optimus programme and Performance Plus, which are on-line business tools. In the restaurant sector specific supports being provided by Fáilte Ireland include a chefs' workshop programme to cut costs and increase profitability; a front of house productivity programme; a quality food toolkit CD resource; a workshop on financial management for restaurants addressing topical issues, including cash-flow, negotiating with key suppliers, re-negotiating key contracts, including leases and dealing with banks and investors in accessing credit and investment cash; and the production of an employment law compliance case studies and guide.

Fáilte Ireland is also leading and working with Government Departments, agency partners and industry stakeholders, including the Restaurants Association of Ireland to position Ireland as one of the world's outstanding authentic food tourism destinations and to position Irish food experiences at the core of Ireland's tourism brand. Fáilte Ireland plans to engage with the RAI early in the new year to discuss a number of actions and interventions for 2010.

I thank the Minister for his reply. I do not need to remind him what an important part of the tourism industry the restaurant sector is. It supports approximately 64,000 jobs. According to the restaurateurs themselves, at least one in three of them is in danger of closing within the next few months. That will not come as a surprise because in every town and city, including Dublin, restaurants are closing down regularly. Their main problem is that costs are too high. One of the issues they have raised is that of higher payments for Sunday working. I understand that there have been some improvements from double time down to time and a third, but the whole structure of the catering industry pay rates seems to be a real barrier to survival for many such firms. Has the Minister made representations to the Tánaiste and Minister for Enterprise, Trade and Employment in this regard? Are there any proposals to try to bring such costs down to a more realistic level in the current situation, so that they would at least compare favourably to what other similar countries are charging? I am not asking the Minister to compare the situation with poorer countries, but with what similar countries are paying.

The other complaint concerns fat traps. Can the Minister make representations to local authorities about that? These are traps that must be installed by law to catch grease in restaurants. It is expensive to install them but it can cost almost €1,000 to have them monitored by a private company, even though the environmental health officers come out for other purposes. This adds to the cost of running a restaurant, along with waste licences. Another money spinner for local authorities are the outdoor seating areas. That was fine in the good times, but they are putting businesses out of work now. Is there anything the Minister can do, such as talking to local authorities about the importance of this for the economy? We must all put our shoulders to the wheel now.

In fairness, I have outlined a substantial range of actions that are being undertaken. I know they are appreciated. We are a lot of the costs for for the sector also. In addition, we will carry much of the cost to allow them to promote abroad, including attending some trade shows. I acknowledge the direct role played by the Tánaiste on Sunday trading, after much discussion with myself. There is no doubt that it was a major issue and a major move forward has been made. I agree with the Deputy that it is not sustainable that Sunday trading would incur an extra cost. We have all moved to a seven-day week, so we will have to renegotiate this across the entire workforce to remain competitive. It will have to come to the next step, and I hope that by negotiation in the near future it will be seen as a normal rotation of whatever constitutes a 40-hour week. That is the way it has to be.

The Minister says he agrees with it, but what exactly can he do to bring that about? Is there anything he can do?

Like the Deputy, I have acknowledged that forward movement has been made.

I think we both agree that it must become normal working hours. I will keep the pressure on to do that. I have spoken to my colleagues in Cabinet to try to keep the issue moving, particularly now that we find ourselves very challenged. I am not surprised that many businesses, including restaurants, are extremely challenged. This is not just because of what has happened here, but because of the situation with regard to the global economy. We must do everything we can to try to keep those restaurants open.

Sports Capital Programme.

John O'Mahony

Question:

5 Deputy John O’Mahony asked the Minister for Arts, Sport and Tourism the implications of budget 2010 on the capital and current spending programmes in sport; and if he will make a statement on the matter. [47990/09]

We all appreciate the important role that sport plays in our society in promoting healthy lifestyles, creating a sense of identity and belonging and in channelling energy in rewarding activity and bringing people together. I assure the Deputy the Government is committed to sport and believes in the contribution it can make to our society, for individuals and for communities. Thus the importance of the sport sector to the country is reflected in the commitments contained in the renewed programme for Government and the funding secured for the sector under budget 2010. I am committed to increasing and developing participation and interest in sport, improving standards of performance and to developing sports facilities, thereby contributing to healthier lifestyles and an improved overall quality of life.

A total of €48 million has been provided for the sports capital programme in 2010. This provision for sports capital projects will ensure that commitments arising in 2010 from previous allocations under the sports capital programme will continue to be met and that a range of modern facilities will be brought in to use in 2010. Since 1998, in excess of €725 million has been allocated to 7,400 sports projects all over the country. A sum of €49.8 million has been provided to the Irish Sports Council for 2010. This is a significant investment by Government to enable this important agency to maintain existing programmes and build on recent significant progress in all areas, including local sports partnerships, Buntús, women in sport, older people and sport, youth field sports and the high performance programme. The Lansdowne Road stadium, a key sports infrastructure project, remains on schedule to be completed on time and within budget in 2010. The allocation by the Department of €4.5 million in 2010 represents the retention amount of the Government’s funding for the project of €191 million. With regard to the local authority swimming pools programme, the allocation of €7.5 million is being provided to meet commitments arising in 2010 under the current round of the programme.

Ireland is the third largest breeder of thoroughbreds in the world and Irish horses and jockeys consistently succeed at the highest level. An estimated 27,000 jobs are supported by both the horse and greyhound industry in Ireland and significant inward investment is attracted to the country. Taking account of the need to continue to support both industries, €59.3 million is being allocated by Government to the horse and greyhound racing fund in 2010.

I would like to offer my congratulations to John Ox and Sea the Stars. I wish Michael Kinnane, who had a fantastic year at 50 years of age, every success in his retirement. It is being said that Sea the Stars was the best horse of the past 300 years. I am delighted that horse is going to stand stud in this country.

Additional information not given on the floor of the House

In view of the current economic constraints, the first phase of the national sports campus project will not be proceeding at this time. However, a sum of €3 million is being provided for the refurbishment of the former Marine Institute building at Abbotstown, which will be used as a headquarters for national governing bodies of sport. The remainder of the allocation will be used to provide for capital maintenance at the National Aquatic Centre.

I am satisfied that the budgets provided for the various sports programmes in a very difficult budgetary environment will enable us to continue with the pursuit of our strategic objectives in the sport area.

I wish to join in the congratulations of the Minister to John Ox and Michael Kinnane. It must be said that the McCarthy report has made a hero of the Minister in the sense that it suggested cuts of 34%. I do not want to be mealy-mouthed but I would like to give the Minister credit for not going along that line and for keeping the cut to 4%. However, that is where my praise finishes.

It is Christmas. Keep it going.

It may be. The Minister has just got his present. In his response the Minister stated that more sports means a healthier and happier nation and more jobs. However, we should not forget that the €48 million allocated to the sports capital programme is a reduction of 14% on the 2009 allocation. We are almost at the end of 2009. Has the €56 million that was allocated for 2009 been spent or will it all be spent? Rather than saying he would like to open up applications, will the Minister assure the House that he is committed, if still in Government, to opening up sports capital grants again in 2011?

On the swimming pool programme, ——

Has the Deputy a final brief question?

I have a few questions.

I will come back to the Deputy.

I thank Deputy O'Mahony for his kind comments. We had difficult choices to make when considering the economic situation, but we managed quite well. I am pleased by that. We did not manage badly for the right reasons.

There is an overhang still, of approximately €120 million, on the sports capital programme. We estimate that what we will need in 2010 is €48 million to complete the required part of the programme. The €56 million allocation for this year was all spent by October, so there was no issue in that regard. I would like to have another sports capital programme. We are doing an assessment of what we have done over the past ten years. A significant sum of €750 million has been put into capacity around the country. There is some unevenness in the regions with regard to what has been provided and I am trying to assess that so as to establish what is required in any new programme. Therefore, if there is a new programme it will not, as with any new programme, be on the same basis. However, it should be a sports capital programme and I am committed to that. It may need to be more specifically targeted than in the past.

The problem is the sums of €56 million and €48 million represent the same as the €80 million pledged in 2006 and 2007. The Minister took the credit for that amount at that time. I am glad the Minister has given some assurance for 2011, but what is to happen with the swimming pool programme? The Minister mentioned €7.5 million. That figure is 40% down on the amount provided in 2009. Therefore, the overall 4% cut mentioned earlier covers up a lot of figures.

The grants to support sport in disadvantaged areas have suffered a cut of 70% in the current spending budget. Under the sports partnerships, there are 20 sports inclusion disability officers. These were paid from the dormant accounts with €60,000 provided for the work of each of them. I know at first hand of the serious work done by these officers and the opportunity this programme has provided to the disabled. Disabled people were affected by the budget last week. Can the Minister guarantee this funding will be protected and expanded in the coming year?

That is an important question and the Deputy is correct. Some €2.5 million came from the dormant accounts fund, from the Department of my colleague, the Minister for Community, Rural and Gaeltacht Affairs. I have spoken to the Sports Council about this issue and it will maintain the funding for the disability officers. We believe in them. It is difficult and challenging for us to maintain the programme, but we see the disability officers as an intricate part of the programme who make an important contribution in particular areas of sport. The issue is being examined currently and I am very cognisant of it.

The reason for the cut in funding for the swimming pool programme is that we have built 45 swimming pools. Therefore, the capital programme has been reducing. The amount provided for this year is all we need this year. I can only spend a €7.5 million this year because the programme is at the end of its life and there is no requirement for more money in 2010.

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