Vol. 709 No. 3
36 Deputy Olivia Mitchell asked the Minister for Tourism; Culture and Sport the initiatives that are envisaged to deal with the crisis facing the tourism industry arising from the decline in visitors and the access difficulties posed by the volcanic ash; and if she will make a statement on the matter. [21069/10]
37 Deputy Mary Upton asked the Minister for Tourism; Culture and Sport the actions being taken directly by her Department to stem the continued haemorrhage of foreign tourists visiting Ireland; the impact that the removal of the air travel tax would have in promoting Ireland as a potential destination for tourists; the actions her Department and the semi-State bodies under its aegis are taking regarding the impact of the ash cloud which is seriously affecting foreign tourism; and if she will make a statement on the matter. [20854/10]
I propose to take Questions Nos. 36 and 37 together.
This year was always going to be a challenging one for tourism, made even more difficult in recent weeks by the travel disruption due to volcanic ash. Based on Central Statistics Office surveys, the number of overseas visits to Ireland fell by 11.6% between 2008 and 2009. However, these figures must be seen in the context of a decline in tourist numbers internationally. Tourism worldwide was deeply affected by global economic difficulties and loss of consumer confidence, with Ireland particularly hit by exchange rate challenges. With exceptional weather conditions in the first two months of this year affecting Ireland and most of our overseas markets, the number of visits to Ireland fell by 25% from 2009 figures. While CSO figures are not yet available for the period since the volcanic ash episode commenced, there is little doubt that there was a considerable impact on overseas visits to Ireland. Initial figures from the Irish Aviation Authority indicate total traffic at Dublin Airport in April 2010 reduced by 26.8% on 2009.
In regard to the air travel tax, Ireland continues to face significant fiscal challenges and this tax is regarded by the Minister for Finance as an important revenue-raising measure.
Turning to the impact of volcanic ash, the Government's overall response is led by the Government task force on emergency planning. The task force, which is meeting on a regular basis, is chaired by the Department of Transport and includes all the key players such as the Irish Aviation Authority, Met Éireann, Departments, including the Department of Tourism, Culture and Sport, consumer and regulatory agencies, and health and environment bodies. In parallel, Tourism Ireland convened the tourism industry response group which is the main tourism forum for the various key players to communicate and co-ordinate their responses to events such as this and this group will continue to meet as and when required.
For my part, last week I met representatives of tourism industry groups, as well as the tourism agencies, to discuss responses to the continuing challenges. Subsequently I announced that Fáilte Ireland would work with the industry to draw up a customer care charter addressing issues such as cancellations, pricing, information and quality of services for all tourists affected by delayed travel plans due to volcanic ash. This charter builds on the positive approach of the industry in recent weeks in dealing with customers facing travel disruption and will help to reassure and improve confidence for both tourism enterprises and potential tourists. At the heart of the latest challenge we face is confidence and the charter will play a key role in that respect.
The charter has now been finalised and was issued by Fáilte Ireland last week to all accommodation providers on its database. Fáilte Ireland's regional offices will be also promoting the charter to local and sectoral contacts in their regions and Tourism Ireland will be promoting it internationally.
Despite these difficulties, it is essential to remember that millions of people across the world will still take holidays this year. I know that the industry and the tourism agencies are fighting hard for every bit of this business. On 6 May, I launched a €20 million summer marketing campaign on behalf of Tourism Ireland. This initiative will build on Tourism Ireland's marketing effort earlier in the year and is designed to win as much business as possible for the peak season. This unprecedented drive in key markets in Great Britain, the United States, Germany and France aims to create the conditions for recovery later this year. The new marketing drive was developed in conjunction with hundreds of tourism industry partners, including hotels, bed and breakfasts, self-catering, cultural institutions, golf courses, visitor attractions as well as air and sea carriers, which have got behind the campaign with a range of value-for-money offers.
The tourism agencies are taking every opportunity to remind potential visitors that Ireland is accessible and open for business — and will continue to be — by air, sea and through Great Britain. Arising from last week's meeting, Tourism Ireland has also committed additional investment in marketing to strengthen its partnership with tour operators overseas.
In addition to our continuing marketing drive in key overseas markets, Fáilte Ireland is working with the industry to engage the Irish holidaymaker with attractive and accessible offers highlighting the value and quality available within Ireland, and I expect Fáilte Ireland will be targeting this in the weeks ahead. Fáilte Ireland is also supporting tourism enterprises through a range of programmes, at a cost of €11 million, addressing such issues as cost control, use of e-platforms and human resource development.
Ireland's tourism sector has proven its resilience and adaptability in the face of adversity in the past. Most recently, whereas operators elsewhere were criticised for appearing to exploit travel delays as a result of the ash plume, Ireland's tourist industry was praised for its rapid and sensitive response to the crisis. I am confident that the co-ordinated approach I have outlined will ensure a positive outcome. I look forward to ongoing engagement with the industry and the tourism agencies to ensure that every support is in place to allow the tourism industry to return to growth in the near term.
I do not blame the Minister for trying to appear upbeat. While I do not blame the Government for all the factors affecting tourism, including exchange rates, weather, recession at home and abroad, and now the ash, those in the industry must wonder if it will ever recover. I did not comment when the Minister announced her initiative. However, it was high in media hype, but low in content. There was only one thing worth saying, which was that there would be no cancellation fee for tourists who could not get here. However, the other items in the code were really things that any hospitality service should be providing. Is a promise not to overcharge the best we can offer people?
The Minister has said that the purpose of the initiative is to create confidence. In my view it did not create confidence; it did the exact opposite. It highlighted that we are the only island country in Europe and there was quite a strong possibility that tourists who got here could end up being left here. That was the danger of having a code such as this and marketing it in every one of our possible markets.
What is happening now to deal with the fluctuating situation? It would be within the Government's remit to eliminate the departure tax. The airlines are haemorrhaging money and Aer Lingus in particular must be in extremis and yet it is being asked to pay money to the Government in this tax.
The Dublin Airport Authority must be in extreme difficulty with the fall in passengers. While the Minister indicated that the number of overseas visits to Ireland fell by 11.6% between 2008 and 2009, the throughput through the airport must have reduced by more than that.
Regarding the redirecting of marketing as a result of exchange rates changing and the fact that it is so difficult to get from, for example, Germany with any certainty because of the volcanic ash, should we consider targeting countries, whose tourists can come by ferry, and America, which is not as affected by the ash?
I believe it is valuable to have the charter. It addresses more than just cancellation fees. In other countries people who found themselves stranded, especially in the lead-up to a weekend, found that the prices for a hotel room for a weekend were far in excess of what they had been paying, whereas here they will not be charged over and above what they had been paying.
Another factor that came through to us very strongly was the lack of personal contact with people who could give real information on where they were going.
While I understand that, the Minister is highlighting our island disadvantage.
When this was offered to people the response was very positive. Deputy Mitchell says that is basic customer care. While I agree it is, it has not always been the case in the past that people did not capitalise on unforeseen events such as volcanic ash. However, this charter is based on how the hospitality industry reacted and responded to people in the past month. We argued as to whether it should be marketed abroad. Unfortunately because Ireland was the first land mass that was affected by the volcanic ash, we were the ones to get the negative publicity on international radio and television, including on CNN and CBS news. We needed to try to counteract that. We certainly will keep it under review. The response from the tour operators has been very positive and I believe it will help us.
The Deputy asked about the departure tax. It is a budgetary and fiscal matter. While it might not be the case in these particular times, Department of Finance estimated it would bring in €125 million.
Has it done so?
We shall have to see how that pans out over the year because of the decreasing numbers and the impact on the airport in recent months but it is not possible to do anything about it in the mid-year because it is a budgetary matter. We continue our marketing campaign, targeting and working in a co-operative and new way with the ferries. People who never used ferries in the past have discovered them. We are working with the United Kingdom, in particular, to try to bring up that market because that was one area where figures actually dropped.
The volcano is outside everybody's control and I appreciate the short-term planning that was put in place and some of the short-term actions which were taken but now there is an urgent need for longer term planning because this situation will not go away. Other events will happen over which we have no control. Are any policy reviews being undertaken in the Minister's Department? If so, what is their status and when will we see new policies that will take account of what has happened and is likely to happen in the future?
I am aware of what an agency such as Fáilte Ireland does. However, when we ask questions in the House about that organisation or other quangos the Minister tells us she cannot answer them and we should write directly to Fáilte Ireland. This happens all the time with quangos. What is the Minister's Department doing? How many people are working in the tourism area?
On a practical issue, I have seen people literally trapped at Dublin Airport, for example, and they do not give out a happy message. As they probably are stuck there for two days what services are in place at the airport that might tell them the names of hotels, how they might get to them and what is available? Does Fáilte Ireland have a service facility at the airport to advise and help people? The picture that comes across to us from the airport is not a happy one. People look very tired, cranky and fed up with the whole business. There seems to be a communications gap around that.
Tourism and booking by tourists have changed in recent years. In the past people tended to book their annual holiday months in advance but increasingly they are booking much closer to departure dates and we have had to adapt our marketing strategies to look after them. The fact that the marketing budget for this year, which was increased, is now spent on a more seasonal basis means we are able to respond to different issues. I mentioned the summer marketing campaign of €20 million which started only in May because 60% of our tourists come between May and September. We will launch an autumn marketing campaign but will be able to review what happens in the few months before it starts and can see how best to target that money.
There will be long-term policy initiatives and full discussions with Fáilte Ireland and Tourism Ireland on new drives. Only last week, for example, we unveiled Padraig Harrington as our golf ambassador. The potential for golf tourism to this country is enormous and Mr. Harrington is giving very generously of his time in that regard. The same applies to Gabriel Byrne, our cultural ambassador, and whereas culture is valuable in itself there is huge potential for linking culture and tourism, especially with the United States, and Mr. Byrne is throwing himself fully into that.
There are new initiatives such as the "silver surfer" and "golden trekker" whereby people from all over the world, irrespective of the country they come from, can get free rail travel when they come here if they are over 66 years of age. These are significant initiatives that are very attractive to people when they come here, especially for the market from Great Britain. People may come across on the ferry and then get on the train. These are the new and constantly changing initiatives coming up all the time.
The Deputy also asked me——
I asked about Fáilte Ireland.
Any answers I might give in regard to Fáilte Ireland and Tourism Ireland obviously reflect all my interaction and work with Fáilte Ireland because it is directly funded by the Department.
Are there any specific facilities at Dublin Airport? Has Fáilte Ireland set up an information stand accessible to everybody?
I am not aware there is a specific Fáilte Ireland stand there dealing with issues but, as part of this charter, all the accommodation bases have made themselves available to give personal information to assist their guests in arranging return journeys and are liaising with local tourist offices to facilitate individual requirements. It is being done very much on a localised basis.
38 Deputy Olivia Mitchell asked the Minister for Tourism; Culture and Sport if she has received representations from the Irish Rugby Football Union regarding the threat to income that the change in broadcasting arrangements will pose for the organisation; if she is concerned that this will jeopardise the development of the sport; and if she will make a statement on the matter. [20602/10]
I recently met with representatives of the Irish Rugby Football Union who briefed me on the organisation's opposition to the proposals by the Minister for Communications, Energy and Natural Resources to make a number of additions to the current list of designated events of major importance to society, thus making them free-to-air for Irish television viewers. The IRFU considers that any form of change to the existing designated list would have a very significant impact on revenues to the organisation which would impact greatly on its grass roots programmes and lead to an exodus of professional players to other jurisdictions. The IRFU advised me that the proposals would undermine the economic model on which the funding of Irish rugby is based.
I have also met representatives of the GAA to discuss the proposals as they relate to Gaelic games although the proposals do not have the same impact on the GAA as they do on rugby.
Under legislation, the Minister for Communications, Energy and Natural Resources is required to consult with me before bringing forward any changes to the designated list. I already had informal discussions with the Minister about his proposals. He has now written to me seeking my views and I intend to fully engage with the Minister on this issue while consulting further with the relevant national governing bodies.
There is a need to maintain a balance between the rights of the public to have free to air access to sports events and the rights of sporting bodies to fund and thereby sustain and develop their sport.
I am not sure after that reply whether the Minister agrees with the IRFU or with the Minister for Communications, Energy and Natural Resources. There are all kinds of perspectives involved — sport, tourism and Ireland's image abroad generally. Professional rugby is the second most successful sport Ireland has after horse racing and is one for which we are well known in Europe. It reflects very well on all of us to have the kind of name we have in rugby.
I do not know whether the Minister understands the fragile nature of the funding model rugby has in conjunctions with its partners, namely, the unions and various federations around Europe. If the linchpin of that funding model is pulled out the whole edifice collapses. As the Minister noted, there are four professional teams and there is no way they could be maintained without present funding. They will lose players to other clubs in Britain, France and other countries where rugby is a well-funded sport. Performances will deteriorate and audiences will dwindle away, with a trickle down effect on schools and clubs.
This is a case of the kindly doctor over-prescribing and killing the patient. It may be well motivated but is ill advised. The Minister has a real responsibility to defend the sport and ensure it will survive. I understand there is to be a further consultation period and the Minister is entitled to be consulted, as she should be. I ask her to make the strongest possible representations to her Cabinet colleague in this regard.
The IRFU has engaged in a number of partnerships. One such is with the Government in so far as between 2006 and 2010 more than €17.5 million was invested directly in the IRFU, outside of any capital expenditure. One may consider the €191 million that went into the Aviva stadium which opened only last week. The organisation also has commercial partnerships and is tied into these with other countries and these issues also must be considered.
Sport is for all and should be for all and participation at the broadest base possible should be encouraged. That is one of my aims. However, there is a balance to be found between participation by viewers and being able to encourage the sport at grass roots level while maintaining the professional element involved. There is no doubt that rugby has given us great sporting heroes and great success in recent years. That success breeds success because the sport has expanded hugely on the ground.
The IRFU made very strong arguments in regard to its financial commitments and its commercial partnerships and how it spends that money, not only in supporting professional players but in supporting the development of junior players, which last I support. On the other hand, there are very good arguments to be made about ensuring people can have access to viewing our great games and our national games. This balance now must be discussed during the consultation process. It is about who we are.
The national games are——
I accept there are arguments on both sides. That is why the consultation period has been extended until 4 July, which will give people ample opportunity to be able to make their case. I will make a formal submission to the Minister but I will also be engaging with the IRFU.
It is disturbing that the Minister does not appear to have a point of view. She has outlined the arguments on both sides but what is her perspective on the matter? Does she support the IRFU and the case being made that this will destroy Irish rugby, or does she support the Minister for Communications, Energy and Natural Resources, who had a rush of blood to the head when he thought an Irish side would get into the Heineken Cup final?
The value of a consultation process and my being a formal part of it is that we can have engagement, as we have had already on an informal level. The formal process will take place between now and 4 July to balance the different arguments. I will be carrying all the different views into that consultation.
Is that a "Yes" or a "No"?
That is what the consultation will be about.
I have to hand it to the Minister. She is good.
39 Deputy Mary Upton asked the Minister for Tourism; Culture and Sport if she has received the report from the Irish Sports Council into the serious issues that have developed in the Athletics Association of Ireland; when this report will be published; if she has, or plans to, launch an independent investigation into the issue; her views on the behaviour of the Irish Sports Council on this matter; if her attention has been drawn to other issues surrounding sports bodies which receive funding from the Irish Sports Council; and if she will make a statement on the matter. [20855/10]
40 Deputy John O’Mahony asked the Minister for Tourism; Culture and Sport if she has received a report from the Irish Sports Council regarding the case involving Athletics Ireland; and if she will make a statement on the matter. [20626/10]
I propose to take Questions Nos. 39 and 40 together.
I have received the report from the Irish Sports Council, ISC, referred to by the Deputy. It is my intention to place the report on the Department's website, subject to legal advice, when I have fully considered the issues contained in it. I will also be shortly meeting with representatives of the ISC and take the opportunity to discuss the report with them.
As I have previously stated in the House, from a legal perspective, I have no role in the day to day operations of the ISC. Under section 9 of the Irish Sports Council Act 1999, the council has to have regard to Government policy and to comply with any general policy directive which may be given by me as the Minister but it is not under my control. The council is established as a corporate entity with legal personality and is responsible for its own activities.
I have no plans at this stage to launch an independent investigation into this issue. What is important is that we learn how we can avoid this happening in the future. There is a need to learn from this issue about the relationship between the ISC and the national governing bodies of sport, particularly the interaction between them and whether other processes should be used. I am always in favour of using mediation processes in the first instance where they are available, irrespective of the difficulties, and at all times we should avoid recourse to the courts if possible. I consider that there is great potential for the Just Sport Ireland initiative, which was established by the Federation of Irish Sports in 2007 as a specialised independent arbitration and mediation facility. At my first meeting with representatives of the Irish Sports Council, I made it clear to them that I believe that mediation should always be used in the first instance to avoid the type of circumstances we see in this case.
I am concerned that there will not be an independent report on this. There are three different groups involved in the issue which prompted this debate. In the order of €800,000 of what is effectively public money has gone down the Swanee and this should not have been allowed. I welcome the Minister's suggestion that she is in favour of mediation but surely there must be more. There must be some process whereby a condition of funding is that mediation will take place. That did not happen in this case.
There is another major issue which I raised at the committee. A person who came before the committee went to the High Court and was quoted as saying that he tried to avoid answering questions, doing much prevarication and spoofing. It is absolutely appalling that a witness before an Oireachtas committee would go to the High Court and describe such occurrences at the committee. If this is the case with a sporting organisation which gives evidence before a committee, it is not good enough and we should sort out the issue.
Has the Minister any plans to review the remit of the Irish Sports Council and is there a need for new legislation? The council is defining itself and there are many issues that have not been addressed in the way funding was drip-fed to particular organisations. There seems to be a level of dysfunction in what is happening with various sporting organisations and the Irish Sports Council. As a matter of urgency, these should be addressed.
In the first instance I regret and object to funding given to a sporting organisation being used to fight law cases rather than going into sport.
That must be stopped.
The Irish Sports Council would argue that the direct funding to organisations has not been affected, although it meant there was no money in the contingency fund for events that might arise during the year. Ultimately, money was lost to sporting organisations, which should not have happened. For that reason I said that where disputes arise, as they inevitably will, the mediation process should be used. I suggested it could be used as a condition but it was argued that some organisations might not be ready for that. A number of organisations have already signed up for Just Sport and using mediation; 17 organisations are taking part and five more are about to do so. It is all the better if the process continues with the organisations.
There are a number of other issues. It was a mistake for me to indicate last month that the settlement was confidential; I presumed this was the case but it was not a confidential settlement. There was no admission of liability and the settlement was made in court. The cost included the settlement and legal costs, with the total amounting to over €300,000. That money could have gone to sport.
Several issues must be addressed. The first is the involvement of mediation and arbitration in the settlement of disputes. The second concerns corporate governance training for the organisations. There is also the issue of clarifying the relationship between the Irish Sports Council and the organisations; the council exists to support and develop sport and should help organisations in doing so. It is necessary to have a policy on the recruiting of strategically important senior posts within organisations. All those issues arise immediately from this case and I expect the Irish Sports Council to deal with them.
An important part of the question relating to an independent report was not answered. The Minister indicated we must learn from what has happened but I suggest this will not happen unless we get a full independent report into what exactly happened. It is not good enough that the Irish Sports Council, which forms one part of the triangle, is doing a report. That is not independent and will not serve sports or the Irish taxpayer very well.
Having read the report, I am not convinced that another report will solve anything. We know the issues and what needs to be done. The report presented to me was in the form of a letter from the Irish Sports Council setting out the issues. It attached the proceedings from the court, which I already had but which gave all the arguments made by the plaintiff. Neither the Irish Sports Council nor Athletics Ireland got the opportunity to give their side of the argument in court because a settlement was made. Between the letter and the proceedings from the court, we have the overall picture. We know what was said, by whom and when. Issues have undoubtedly arisen and some which I referred to a few moments ago need to be addressed.
We know what happened and I am not sure we need an independent inquiry to tell us what happened. We must consider the issues to ensure it does not happen again.
I am interested in the Minister's statement that she knows what has happened and needs to be done. Perhaps she might tell us what needs to be done. I was also interested in her comments on the relationship between the Irish Sports Council and the governing bodies. I agree that it has reached a critical point. Deputy Mitchell raised the question of this report in the past and the need for an independent report. It is unacceptable that the report comes from one side of the battle.
I had four questions disallowed today which dealt with the relationship between the Irish Sports Council and governing bodies. In reply to Deputy Mitchell the last day in dealing with this report, the Minister suggested that we should see that this does not happen again. It is already happening in the boxing association, which my disallowed question dealt with. There is a dysfunctional pattern building between the Irish Sports Council and governing bodies.
Does the Deputy have a question?
I am not apportioning blame to sides but this matter should be examined. There is a high-performance director who was not appointed in the boxing sector but who brought all the medals and glory to us. That director has been offered a position with another nation.
The basketball association will be having its AGM in a couple of weeks time. It is on its knees and its staff have been told that their employment cannot be guaranteed past June.
The Deputy is making a speech rather than asking a question.
I have a letter with me from a parent whose daughter has been picked for an international basketball team. She must pay €2,500 if she is to play.
I want to allow the Minster to reply.
This is a new system of pay-for-play.
I wish to clarify something. The settlement in the case amounted to €309,283, of which the Irish Sports Council's contribution was €150,000. Its legal costs amounted to €225,000. I wish to clarify this in case I gave the wrong impression.
We know what occurred because we have both sides of the story. We have the sports council's account in the form of a letter and we have the court proceedings, which constitute the plaintiff's account. Mediation, governance and recruitment into important posts are three of the issues that must be addressed.
Deputy O'Mahony raised two important issues about boxing, which is not only important in terms of sport, but also in the context of our Olympic hopefuls, given the fact that 12 of our 23 Olympic medals have come from boxing. Basketball is also important. The sports council, which gets almost €50 million per year, will give €864,048 to basketball this year. I do not know why the association claims it cannot keep its staff, as this is a significant amount of money. The council supports associations and governing bodies in drawing up job descriptions and participating in recruitment panels, etc. It is important that all recruitment should be open and transparent.
With regard to boxing, the Irish Sports Council, ISC, has stated it will withdraw funding to the Irish Amateur Boxing Association for the posts that have been appointed. What is the Minister's opinion on this matter? The situation cannot continue.
It is a matter for the ISC, but it is important that all appointments be made in an open and transparent way. I hope that any difficulties between the council and an important sport like boxing can be resolved. The funding for this year is €959,000, which could go a long way in boxing.
The Minister keeps saying it is a matter for the sports council, but that is at the heart of the matter. There is a level of dysfunction between the sports council and the governing bodies of the various sporting organisations. There is a need to review the role and responsibilities of the council and there may be a need to introduce legislation.
We have learned of a big spat with the Athletics Association of Ireland, AAI, and we now know of another with the amateur boxing association. Where will it stop? We are also aware of other issues. The learning curve is slow indeed and the legislation needs to be reviewed.
The legislation probably encompasses enough of what the ISC is trying to do. A clear policy on recruiting strategically important senior positions into the governing bodies is necessary and the ISC has indicated to me it wants this to be done in order that the process can be as open and transparent as possible.
It does not interfere——
In respect of boxing, the council has indicated that its decision only applies to the two specific posts that have been in question in recent weeks and that the priority is to ensure a minimum of impact on boxers and to see the men's senior team participating in the European championships. In the past month, the boxers have met with considerable success on the international stage, so the situation is not impacting on them.
We need transparency at that level. While there is no need for a change in legislation, clarification of the relationship and the support the ISC can give is necessary.
Is further legal action pending in respect of the AAI as a result of the original case? This matter is in the public domain.
No. My understanding is that the settlement ended all future legal action, including before the Employment Appeals Tribunal, etc.
That is not the information we have.
Deputy O'Mahony is on the same wavelength as me.
It was in last weekend's Sunday Times.
Perhaps this matter could be followed up by the appropriate committee.
We are discussing vast amounts of money and potentially significant costs for sport and the taxpayer if further legal cases are pending, which we believe to be the case.
