Jimmy Deenihan
Question:1 Deputy Jimmy Deenihan asked the Minister for Tourism, Culture and Sport her strategy for the development of the arts over the next three years; and if she will make a statement on the matter. [36951/10]
Priority Questions
Departmental Strategy Statements
I welcome Deputy Deenihan to this portfolio. He will bring added interest and vigour to it.
My policy on the arts, culture and film sectors reflects Government policy in this area as set out in the programme for Government. This policy is to promote and strengthen the arts in all its forms, increase the profile of, access to, and participation in, culture and the arts, make the arts an integral and valued part of our national life, maximise the potential for cultural tourism and grow the film and audiovisual production sector.
The Government is keenly aware of the economic potential of the arts and creative industries and their role in supporting enterprise and innovation in the economy as a whole, as highlighted at the global Irish economic forum in Farmleigh. It also is determined to use Ireland's unique cultural assets as a way of distinguishing it from other tourism destinations and thereby attracting an increasing number of cultural tourists in the years ahead.
At the same time, while our arts, culture and heritage are important contributors to sustainable economic recovery, I appreciate that their contribution should never be measured in financial terms alone. Rather, they should be appreciated also for the social, cultural and educative benefits that they bring to communities large and small throughout the country.
Government policy on the arts has been and will continue to be enabled and implemented through the agencies and institutions within my Department, namely, the Arts Council, the Irish Film Board and Culture Ireland, as well as the cultural institutions within my Department's remit.
Recently, as part of the preparation of my Department's statement of strategy for the period 2010-14, I have consulted the agencies under my Department's aegis, as well a number of interested parties in the arts and culture areas. I will consider the suggestions put forward in this consultation when finalising this strategy, which will include a clear description of my Department's strategic priorities for the period 2011-13, reinforced by key objectives and timelines.
The arts, cultural and creative sector is constantly in a state of renewal and evolution. The challenge in the current economic environment is to work smarter within the limited public financial resources available to build on our strengths and to seize new opportunities. For example, one of the opportunities discussed at the cultural forum on the new statement of strategy was that presented by developments in the area of information and communications technology. Members will be aware that digitisation of the 1901 and 1911 census records has opened access to our heritage to an exponentially bigger audience than the paper records ever could have reached. At the same time, it has created a heightened interest in Ireland around the world that no doubt will help to attract here increasing numbers of so-called roots tourists in the years ahead.
Similarly, the Irish Film Board highlighted the opportunities for the Irish film industry of the increasing migration to Internet-based viewing and marketing of audiovisual content. Small Irish productions will never be able to compete with the huge marketing spend of Hollywood studios but can get into people's homes through platforms such as iTunes and can win audiences through word of mouth on Facebook and Twitter.
My overall goal, as reflected in the forthcoming statement of strategy for the Department, will be to help the sector as a whole to seize on such opportunities and to come through the current challenges in position to achieve greater success in the years ahead.
I thank the Minister for her comprehensive reply and assure her that I will give her all possible co-operation in my new role. I am sure we can work together in the interests of the arts, tourism and sport. As part of her strategy, I encourage the Minister to protect the progress that has been made over the past 20 years. In addition, the Minister's new strategy should encourage new writing, new writers and new artists and it will be important to bring the arts out to venues throughout the country. These policies should be the pillars of the new strategy. However, will this be possible when one considers that just two years ago, arts funding was €83 million whereas in last year's budget, it was pared down to €67 million. Both the Arts Council and arts organisations nationwide have pared back their expenditure as much as they can and a further reduction this year would mean the loss of important personnel and the necessity to discontinue programmes they have built up over the years. Consequently, in view of the new departmental strategy, can the Minister assure Members that funding will not be cut in this year's budget?
The Deputy is aware that it is not possible at this stage to give any commitments regarding the budget. However, the Government's commitment to the arts has been proven over the years. The Arts Council is just one method by which the Government funds the arts. This also takes place through capital funding through all the access projects nationwide, which builds on the point of ensuring the arts are available to all sectors and in all geographic parts of the country. Moreover, substantial capital funding is available for the next few years to build on that. The funding to which the Deputy referred also does not include funding for the national cultural institutions and nor does it include funding for the Irish Film Board. Significant investment is being made in the arts and naturally, the Government will aim to ensure that it protects as much of it as possible. However, given the financial circumstances, it is not possible to provide a blanket guarantee to any one sector.
I should point out that the Arts Council funding of €68.7 million is still €21 million more than was the case in 2002 and that a significant leap took place during those years. However, of added value in making an argument to the Department of Finance at budget time is that the arts now are no longer perceived as being an extra in society but as being highly integrated and as contributing to the country's economic value.
I encourage the Minister to include in the departmental strategy one or two iconic or landmark projects. Given that Dublin now has been designated as a UNESCO city of literature, I strongly encourage her to seriously consider establishing a writers' museum or centre in Dublin that would both celebrate the achievements of Ireland's past writers, including its Nobel laureates, and simultaneously would encourage contemporary writers.
I hope that throughout the country and through the education system, young people can be encouraged to write and to be creative, particularly given our history of storytelling. This history is no longer simply being linked to the cultural tradition. For example, if one takes the old Irish tradition of storytelling and links it to modern technology, one suddenly has an Oscar-winning animation industry. Such links also can be made and even on Culture Night, the Dublin Writers' Centre was open to allow people to participate in a never-ending story to which I added my own small paragraph. Various groups are engaged in activities nationwide, including a writers' museum and a writers' centre. However, I accept the point the Deputy is making is to try to encourage the literary aspect and having the UNESCO city of literature designation, to which Members will return later, is one way to build on that.
Irish Sports Council
Mary Upton
Question:2 Deputy Mary Upton asked the Minister for Tourism, Culture and Sport in view of the revelations arising from the case taken against the Irish Sports Council, by the former chairperson of Athletics Ireland, if she has, or plans to commission an independent review of this issue; if she is satisfied that the report produced by the Irish Sports Council adequately reflects the findings of the courts; if she is aware of other issues surrounding sports bodies which receive funding from the Irish Sports Council; and if she will make a statement on the matter. [36954/10]
John O'Mahony
Question:5 Deputy John O’Mahony asked the Minister for Tourist, Culture and Sport if she has requested the Chairman of the Irish Sports Council to carry out a review of corporate governance procedures at the Irish Sports Council; when she expects to receive the outcome of this review; and if she will make a statement on the matter. [36950/10]
I propose to take Questions Nos. 2 and 5 le chéile.
As the Deputy is aware, my predecessor requested a report from the Irish Sports Council, ISC, on the Mary Coghlan v. Athletic Association of Ireland and Irish Sports Council High Court case. In keeping with my earlier commitment to this House, the sports council report and the transcripts of evidence are now available on my Department’s website. I believe that while the Irish Sports Council sets out its case, Ms Coghlan’s arguments are set out in the court transcripts. Both sides have now had their say. A settlement was agreed in court and commissioning a further report would only serve to incur more financial expense and prolong the acrimony. I believe it is important at this stage to draw a line under what happened and to focus on the future.
I expect the statutory agencies reporting to me to adhere to best corporate governance practices and, in general, the Irish Sports Council has done so. It is important to learn from this case how one can avoid similar cases arising in the future and ensure that public moneys are not used to meet the costs of legal settlements at the expense of the development of sport.
Last month, I announced the appointment of Mr. Kieran Mulvey as the new chairman of the Irish Sports Council for a five-year term. As Members will be aware, Mr. Mulvey has been chief executive of the Labour Relations Commission since 1991. He has served on a number of public bodies, including the Independent Radio and Television Commission, the National Economic and Social Council and the Governing Bodies of UCD and DCU. He is a former general secretary of the Association of Secondary Teachers Ireland and the Irish Federation of University Teachers. Mr. Mulvey has also acted as a consultant with the European Union and the International Labour Organisation on matters relating to public management, human resources and industrial relations. He recently chaired the negotiations which led to the public service Croke Park agreement.
He also has had a lifelong interest in Irish sport and has on occasion made himself available to assist various sporting bodies resolve issues of contention. I am sure his wide range of skills and experience will be of great value to the Irish Sports Council as it works with the national governing bodies of sport to increase participation in sport, improve standards of performance and ensure that best practice is followed in management, governance and operating procedures at all levels of Irish sport.
I have asked Mr. Mulvey to consider the corporate governance practices followed by the council and to provide assurances to me that best practice is exercised by the Irish Sports Council in its dealings with its customers. I have also asked him to ensure that the council promotes the use of mediation and arbitration where difficulties do arise. I have no doubt that Mr. Mulvey's own considerable experience in this area will be invaluable in that respect.
I welcome the appointment of Mr. Mulvey to the important post of chairman of the Irish Sports Council. The role will undoubtedly be challenging but his experience will be of great importance to the council and in terms of the spin-off for other sporting bodies throughout the State.
I tabled this question reluctantly. Like the Minister, I do not wish to see more public money spent — I will not say "wasted" — on the particular case to which she referred in her response. However, it is somewhat unfair that the Irish Sports Council's interpretation and view of the events in question are available on the Department's website but not the view of Ms Mary Coghlan. That is biased and unfair. A comparison of the report from the Irish Sports Council with Mary Coghlan's report, which was published elsewhere, shows a series of contradictions between the two. For example, there is disagreement in regard to the use of a mediation process. Such a process either took place or it did not. The Irish Sports Council says the former chief executive officer demanded compensation, but the latter says this is completely false and without foundation. There are various other serious contradictions between what is on the Department's website and what has been made freely available to the public by Ms Coghlan.
In the interests of justice and fair play there should be an independent review of this matter. I say this reluctantly because I am aware it will cost more money. However, in fairness both to the chief executive officer and to the Irish Sports Council, the two sides should be looked at separately, independently and without bias.
The reason I published only the report of the Irish Sports Council on the website was that the council did not make any contribution to the High Court because the case was settled. Therefore, only one side of the case was presented in court, namely, that of Ms Coghlan. However, by publishing the transcripts on the website, her side of the story has been given a full airing. All of that is available on the website as well as the comment of the Irish Sports Council. Out of courtesy I wrote to Ms Coghlan to indicate that the report would be published on the website and I received a reply from her. However, the Attorney General's advice was that we could not publish her report.
I see no value for anybody in reopening this issue. The Irish Sports Council has moved on. I have impressed upon it the importance of dealing with mediation and arbitration in order to avoid legal cases which use up taxpayers' money that could be going to sport. Ms Coghlan says it has also been a painful experience for her. I am anxious to ensure lessons will be learned from it. So far as we can leave that case behind, the best way of protecting other people, other sports organisations and the Irish Sports Council itself is to have proper procedures in place.
I join Deputy Upton in welcoming the appointment of Mr. Mulvey as chairman of the Irish Sports Council. There has never been a greater need in the governance of sport for the industrial relations experience he possesses. I support Deputy Upton's call for an independent inquiry in this case. The key question for the public is why we have not heard Ms Coghlan's version of events. The Minister indicated that she has asked Mr. Mulvey for assurances that best practice will be exercised in the council's dealings with customers. Is that an implication that this has not been the case in the past, as is the general view?
There is a need for better governance. After each Olympic Games, for instance, we have reports from the Olympic Council of Ireland and the Irish Sports Council which are totally divergent. What is the relationship between the high-performance unit in the council and the Irish Institute of Sport? It seems many former staff of the institute are coming into the council as consultants. There are questions to be answered in that regard.
I am aware of a specific case where a top athlete——
The Deputy cannot make a speech, he must ask a question.
I have a question. I know of a top athlete who walked away from a training camp a week ago because of disillusionment with the lack of back-up and forward planning. I am also aware of a very successful boxing coach who has walked away in recent weeks without there being a word of it in the media.
I cannot comment on individual cases. There has been great success at the high-performance level during the summer, not least in the sport of boxing. Responsibility falls on the Irish Sports Council to ensure, through the carding system, that we support top athletes and that there is sufficient funding for the relevant organisations. That is the council's major role and will be in the coming years as we prepare for the Olympic Games.
In regard to whose views were heard and whose were not in the legal case we are discussing, I reiterate that one side of the story was given comprehensively in court and the transcripts of that are included on the Department's website. The Irish Sports Council did not take the opportunity in the High Court to give its side, so its report is also included on the website. A settlement was reached in this matter. We all accept that Mr. Mulvey is the right man with the right skills for the role of chairman. As I said, I have impressed upon him the importance of dealing with governance issues. That is not to say there were failures in the past, but there were three or four cases which should not have arisen and which cost the State money. Even prior to appointing the new chairman I indicated to the council the importance of the "just sport" idea, which has been discussed in this House, whereby mediation and arbitration should always be used in the first instance. As far as possible, the courts should never be used when it comes to sport.
There are some serious concerns remaining. Does the Minister not accept that an individual's reputation is at stake here? I do not propose to be the judge of the case. However, there is something missing when a report from one side of the argument is published on the Department's website. Why did the Irish Sports Council choose not to put up a defence in court? Is the Minister not concerned about that? Is she satisfied, having read Mary Coghlan's response and the transcript of proceedings, that they coincide or has she any concerns about what is in Ms Coghlan's report relative to the transcript? These issues can only be dealt with by means of an independent review.
It is not my intention to commission a report and to drag this issue on. Nor is it my intention to cause hurt or pain to anybody as would invariably arise were another report commissioned.
A great deal of hurt has already been caused.
I am satisfied that both sides had their say, one in court and the other in the relevant report. I accept that we are talking about two different fora, but we have had both sides of the argument. I am concerned to ensure that proper governance and proper relationships continue to exist between the Irish Sports Council and all its member organisations.
Is it the Minister's opinion that Ms Coghlan feels her side of the story has been heard? Would the Minister agree, as with the other cases I have mentioned, that it is in her own interest and that of the Irish Sports Council, Athletics Ireland and the Olympic Council of Ireland that there is better governance of sport in the years ahead?
I raise the secondary issue of the responsibility of the Minister to the House and the responsibility of the Irish Sports Council. The standard reply a Member is given is that his or her query is not a matter for the Minister but for the Irish Sports Council. I, as an elected representative, do not have direct access to that information via this House. That is very important.
It is time the governance issue was looked at in detail to see exactly who takes responsibility for what. This is a much wider debate than what we are engaged in today but it is a very important one.
As Deputies recognise, the reason I appointed Mr. Kieran Mulvey to the position was to bring his particular skills to bear on the Irish Sports Council and on its relationship with the organisations. I think we will see new procedures put in place in that regard.
I accept that Ms Coghlan's side of the story was heard, but it was heard in the court. That is why I took the decision to publish all the transcripts of that case.
It is being heard again.
If we got into a situation where she replied to the Irish Sports Council, then the council would have replied to her. The case was dealt with in court and a settlement was made. The interest of sport would be better served by moving on and looking to see what could be learned from the matter.
Tourism Industry
Jimmy Deenihan
Question:3 Deputy Jimmy Deenihan asked the Minister for Tourism, Culture and Sport if her Department carried out a review of the impact of the air travel tax in the context of the development of the recently published Government strategy on Trading and Investing in a Smart Economy; and if she will make a statement on the matter. [36952/10]
The Government's framework for economic renewal included a commitment to develop an action plan to drive export-led growth over the coming years. Accordingly, the Government's new strategy and action plan for Irish trade, tourism and investment to 2015, Trading and Investing in a Smart Economy, was drawn up by representatives from the relevant key Departments and agencies, including my Department, Tourism Ireland and Culture Ireland.
This strategy contains targets for job creation, exports, tourist numbers and inward investment projects by 2015 and details on how the Government and its agencies will achieve these priorities and targets. The tourism related elements of the new strategy draw on the robust analysis already carried out by the tourism renewal group, in preparing its report and framework for action, which was a parallel component of the overall framework for economic renewal.
The new strategy does not specifically address the air travel tax. However, it does recognise the absolute importance of access transport for tourism, as well as for trade and investment. The tourism renewal group reviewed the impact of the air travel tax, drawing on analyses by the tourism agencies, the tourism industry and the airlines, and recommended that the air travel tax be abolished.
I have discussed the tax in bilateral meetings with the airlines and listened to their concerns about it. The issue has also arisen in meetings with other bodies involved in the tourism industry and was discussed at the recent forum of tourism interests that I convened as part of the development of the Department's new statement of strategy. I have relayed these concerns to the Minister for Finance and will be discussing them with him further in the context of the forthcoming budget.
As Minister with responsibility for tourism, I am concerned about the potential for the tax to affect the competitiveness and viability of air routes to Ireland. From a purely tourism perspective, it would be preferable not to have an air travel tax. However, I appreciate that the Minister for Finance considers it to be an important revenue saving measure, with an estimated full year yield of €125 million.
I assure the Deputies that the issue of the tax is a core part of my discussions with the Minister for Finance ahead of the budget.
The introduction of this tax in 2009 coincided with a marked decline in the numbers of people coming to the country from the UK, the US and elsewhere. In Holland, a similar tax was scrapped last year although it was raising more than €300 million because it was felt that €1 billion was being lost to the economy through discouraging people from coming to Holland. Most other European countries have followed Holland's example. In view of the marked decline in tourism, the loss of more than 40,000 jobs and the decline of €1 billion in tourism income, surely the Minister and the Government should make every effort possible to remove this tax.
Is the Minister aware that Mr. Michael O'Leary, who is now CEO of the biggest airline in Europe, has said that if the tax was scrapped he could bring 6 million extra tourists to Ireland over a five year period and increase employment by 6,000 people?
Tourist numbers undoubtedly declined since the introduction of the air travel tax. However, there is no evidence to suggest that the two are related.
Is it a coincidence then?
A number of things impacted on the decline of tourist numbers. One is the economy in other European countries and the United States. The very poor weather at the beginning of this year impacted severely on us and then the volcano affected numbers travelling. If one throws into that mix the sterling and dollar differentials, one sees that many issues impacted on our tourist numbers. We do not have direct evidence to say the tax was one of those.
It would appear that when individual passengers are travelling the tax itself may not be an inhibiting factor in making choices. However, I understand from meeting with airlines that it impacts on their choice of where to put their routes. That is an even more significant issue for us. If aeroplanes are not coming into Ireland, tourists cannot come.
I met Mr. Christopher Mueller of Aer Lingus and Mr. Michael O'Leary of Ryanair. I would be interested to hear more specifically from them what they would do if the tax was removed. If we remove a tax that has the potential to bring in €125 million in a year, we may well have to find that money somewhere else. They would have to make a very valuable contribution to the economy.
Would the Minister consider suspending the tax for two years and challenging the airlines to bring in extra people? It would then be in their hands to respond. The second recommendation of the Minister's own review group was the abolition of air travel tax. There is little sense is setting up a review group if the Minister does not listen to it or implement its recommendations.
Would the Minister consider putting the tax on hold for two years and giving the airlines an opportunity to increase their figures?
The tourism review group, the tourism implementation group, the Tourism Forum, the Irish Hotels Federation and various tourism bodies have looked for this tax to be removed on the understanding that it would increase the number of passengers coming into the country. That is what the airlines are saying they would be able to do.
I am quite happy to continue my discussions with the Minister for Finance but I would need to know from Ryanair what we will get in return. What will we get by way of additional passengers? What will Ryanair be able to do by way of additional routes into Ireland or making a commitment that routes into Ireland will not be stopped? That would give me the basis for an argument, in the context of the budget, with the Minister for Finance.
Tourist Accommodation
Jimmy Deenihan
Question:4 Deputy Jimmy Deenihan asked the Minister for Tourism, Culture and Sport the progress that has been made regarding the oversupply of hotel accommodation and the difficulty being experienced by the sector as a result of the impact of the National Assets Management Agency; and if she will make a statement on the matter. [36953/10]
Economic circumstances are making trading conditions difficult for most businesses at present. These difficult conditions are exacerbated in the case of the hotel sector by the build up of an overcapacity in the availability of rooms in recent years. This is proving to be a complex situation to resolve and I believe that, inevitably, it will require a market-led solution over time.
I had the opportunity earlier this week to have a useful exchange of views with the chairman, the chief executive and other senior executives of NAMA on how their operations may impact on the hotel and overall tourism sectors. I was accompanied at the discussions by senior officials of my Department and Fáilte Ireland. I should stress that the engagement with NAMA was at an overall policy level and was not related to any specific enterprise or borrower.
In order to inform the discussion, Fáilte Ireland had prepared in advance a detailed market analysis which assesses recent supply and demand in the hotel sector in Ireland and examines the possibility of recovery in the medium term. This analysis was prepared in consultation with the Irish Hotels Federation and will be made public over the coming weeks.
At the meeting, I voiced my overall concern that there would be a sufficient range and geographical spread of hotels to cater for present and projected tourism demand. I referred to the significant employment levels in the tourism and hotel sector and the importance of sustaining such jobs. I also referred to the IHF's concern that the apparent actions of some banks in sustaining non-viable hotels could have the effect of squeezing out some well-established family-run operations. I encouraged NAMA to be strategic in its approach and I welcomed its willingness to keep in contact with the Department and the tourism agencies at a general policy level as it worked its way through the management of its hotel-backed loans portfolio.
For its part, NAMA indicated that it had completed the transfer of a number of tranches of loans, which included 35 Irish-based hotels, and had begun its engagement with borrowers in relation to business plans on a case by case basis.
NAMA expects that its portfolio of hotel backed loans will increase further, although not as much as anticipated publicly. I was pleased to be advised that NAMA has not subsidised loss making hotels nor does it intend to do so. It accepted the need to adjust to the new market realities and has already met the IHF to allay concerns that it may be acting in an uncompetitive manner or as a monopoly hotel player. It welcomed the receipt of Fáilte Ireland's analysis of the sector and I am pleased to say it is open to taking account of overall tourism policy considerations as its own strategy evolves.
Did the Minister discuss the availability of bank credit in the aftermath of Bank of Scotland's withdrawal? Is she aware that the hotel sector is heavily over-borrowed and is experiencing difficulties in accessing working capital? I ask her to respond to the press release issued today by the Irish Hotels Federation which expresses concern about the inaction of her colleague, the Minister for the Environment, Heritage and Local Government, Deputy Gormley, on excessive local authority charges. The press release states that 180 hotels and guest houses could go out of businesses because of the refusal of county managers under the Minister's direction to negotiate.
The relationship with other banks arose during my discussions with NAMA, which has a remit to work with AIB and Bank of Ireland. However, even though it does not have the same relationship with Bank of Scotland and Ulster Bank, these banks are also obliged to lend in a prudent and sustainable manner. I acknowledge that the withdrawal of Bank of Scotland is an issue of considerable concern to hoteliers, particularly in respect of credit availability over the winter months.
I was struck by the fact that fewer hotels than anticipated are going into NAMA. It now appears that it will only control between 60 and 70 hotels. In so far as it has a public policy remit, we can be assured that it will not depress the market by selling them off immediately and it is anxious to take advice on the public policy issue of the range and categories of hotels needed.
In regard to the other banks, I do not know if it would be helpful to engage with the Irish Banking Federation but I am happy to do so.
On the positive side, the surplus of bedrooms in this country offers an opportunity for promoting Ireland more aggressively in the UK and elsewhere. Has the Minister encouraged Tourism Ireland to tell the world how cheap and competitive our hotel rates are at present? We have an oversupply of rooms according to Peter Bacon and while perhaps some hotels should be closed, that is not going to happen. Is there a potential for promoting tourism based on our low rates? However, it is not sustainable for hotels that their rates are back to 1999 levels.
Hotels have to deal with a number of issues, including surplus capacity. The industry claims to have 15,000 surplus rooms. Based on our plans to attract up to 8 million tourists by 2015, we estimate a somewhat lower figure for oversupply but none the less it is an issue which will have to be addressed and banks will have to be conscious of market demands. The economic affairs Cabinet sub-committee has discussed the issue of rates, particularly in so far as they relate to hotels, and I have impressed upon the Minister for the Environment, Heritage and Local Government the penal nature of these rates for the hotel industry.
There is great potential in the British market, which is our most important source of tourists. We are putting renewed emphasis on the message that we offer better value. That campaign only began this year, however. It is unfortunate that people may be criticising our marketing to Britain this year given that we were charging too much for so long. Fáilte Ireland's success in spreading the message to our domestic market about the great value on offer saved the tourism industry this year and we will see further benefits by next summer. With the co-operation of the House, I intend to attend the World Travel Market in London in November in order to support the marketing of Ireland and highlight the good value we offer to the British market.
Question No. 5 answered with Question No. 2.