Vol. 723 No. 1
26 Deputy Joan Burton asked the Minister for Tourism; Culture and Sport the number of persons working in her Department, the number with express responsibility for culture and the arts; and if she will make a statement on the matter. [44014/10]
A total of 154 staff are currently working in my Department. Of this figure, 44 staff are working in the National Archives which is part of my Department and a further 30 work in the divisions with responsibility for arts, culture and the film sectors. In 2010, these divisions manage a budget of €153 million and undertake functions in regard to ongoing policy formation, financial supports, staffing and oversight to achieve these objectives.
The areas managed include the eight major national cultural institutions, as well as provision of ongoing support to a number of smaller cultural organisations. The divisions also have an oversight and management role in relation to the Arts Council and the Irish Film Board, Culture Ireland as well as EU-related aspects of these areas.
Under its arts capital schemes, including ACCESS, the Department manages funding allocated for the capital development of more than 120 high standard facilities throughout the State, including integrated arts centres, theatres, galleries, studios, and creative and performance spaces. In this manner the Department provides the bulk of capital funding for building and refurbishing arts facilities, while the Arts Council provides the ongoing revenue support for many of the facilities. Staff are also engaged in a number of specific projects, including support for the National Archives in its introduction of the highly successful online census for 1901 and 1911. Culture Ireland continues to ensure the ongoing promotion of Irish artists worldwide with the aim of generating goodwill and influence for Ireland and highlighting the strength of Irish culture and creativity.
In the year since the Farmleigh global forum took place there has been a recognition of the central role Ireland's artistic and cultural strengths play in building our reputation globally, and on the benefits that flow for Irish trade and investment.
I believe in the role which the arts, culture and creative sectors can play in the development of society and assure the House that I will do everything I can to support them.
I thank the Minister. I believe this question was answered, more or less, in the answer to the first priority question. I emphasise that I do not, in any way, question the importance of the arts in terms of the number of people working to support them. My key question remains the same regarding accountability and policy formulation. If I may reflect on the previous question, it relates to the number of organisations and the various quangos set up over the years. I acknowledge that the Arts Council is the one substantial and significant body relating to the arts. It is very important that the arts are protected but, at the same time, when I see a figure such as 48 full-time equivalents of a staff of 154 working in the arts, I must question the value for money in terms of accountability.
I would be interested to hear from the Deputy exactly which of the quangos in my Department she feels should be removed. When we talk about any one of them on an individual basis all of us can appreciate the value of what they do. The Arts Council does what it does as does the Irish Film Board. For its size the Irish Film Board generates enormous interest in film in this country and brings a great deal of money here. I have met producers the board has brought in from abroad. The board provides a superb programme and does superb work in promoting young Irish and independent filmmakers and attracting investment into Ireland. The same is true of Culture Ireland which is under the Department, as it were, but is separate in all the international work it does. It has outlined a programme for the United States for next year which I believe will have a significant knock-on effect, not only for culture and the arts here but in profiling a very positive image of Ireland at a time when we need to get that positive message out.
I did not refer in particular to the arts when I referred to quangos but as the Minister raised the issue of the Irish Film Board I give the example of the gaming industry as one area in which we should take much greater interest. There is considerable potential in it and perhaps there should be a place for it. Incidentally, I do not suggest setting up another quango but if I may refer back to previous quangos there is scope, as discussed in the first priority question. I realise I am moving backwards instead of forwards on this point. In regard to tourism, for example, I will return to the Minister on this point. There is scope for reviewing exactly what is happening within the tourist industry and in the number of agencies that have responsibility for it.
A final reply from the Minister.
We are going over the point again but in reality there are only the two agencies. There are sensitivities given that one agency is a North-South body which has the international remit to market Ireland as an island. There is a great deal to be said for being able to go to the United States and promote Ireland as an island at peace which can attract tourists. There are particular sensitivities but the agency works very well. There is a lot to be said for being able to stand with a banner behind one showing the rickety bridge or the Giant's Causeway on the top and the cliffs of Moher on the bottom. It shows an Ireland we want to show at this stage.
Concerning film, the other issue the Deputy mentioned, the five-year strategy for film and the audio-visual content sector is currently being developed. It has the potential to double the income to the country to €1 billion per annum and to employ up to 15,000 people. We are working now to finalise that and it will include all the type of work the Deputy mentioned.
There is an urgency about the audio-visual gaming industry. There is an opportunity here which is likely to be lost if we do not grasp it and move forward very quickly.
That is a separate question.
We are finalising that strategy at present. With all the IT industries we have in the country, coupled to our imagination and the traditions we have of storytelling, art, drawing and creativity, there can be a very successful industry. There is great potential for it and that is why we are working on that strategy.
27 Deputy Dan Neville asked the Minister for Tourism; Culture and Sport if she has held discussions with the Minister for Environment, Heritage and Local Government with regard to the burden of rates on the tourism industry; and if she will make a statement on the matter. [44129/10]
I am aware of the difficulties that many hotels, restaurants and other tourism businesses face in meeting the cost of local authority charges and have written to the Minister for the Environment, Heritage and Local Government regarding these costs. The issue has also been discussed and considered at the Cabinet Committee on Economic Renewal, of which I and the Minister for Environment, Heritage and Local Government are members.
I understand from the Minister that local authorities have taken a number of steps to reduce their own cost bases in order to minimise the charges they must pass on to customers, including businesses. These include reductions in staff numbers and payroll costs. Further reductions are to be made in the context of the report of the local government efficiency review group and the Government's four year plan.
I also understand that the Commissioner of Valuation is actively reviewing options which might hold potential for delivery of the national revaluation programme in a shorter timeframe than originally intended. Where they have taken place, revaluations have resulted in significant reductions in rates for hotels although other categories of premises have experienced increases. In any event, it is important that valuations are as up to date as possible.
It is vital that local authorities do their best to support jobs in their local area and to avoid putting unnecessary financial pressure on existing businesses through excessive charges. At the same time, I appreciate their funding is under considerable pressure in the current economic environment. I believe it is in everybody's interest that local authorities should have a broader and more sustainable income base from which to fund vital local services. The introduction of water charges, as signalled in last year's budget, will help to ensure that this is the case, as will other local charges.
A broadening of the revenue base at local level will help to relieve some of the burden on tourism and other businesses. At the same time, given that the Deputy's party has a large proportion of members on the city and county councils I urge him to do everything in his power to ensure that his party councillors consider the needs of employers when setting their annual budgets, with a view to supporting jobs for local people.
One restaurant a day is closing in this country and 82% of hotels will shed jobs before Christmas because of their financial position. Given that the Valuation Act 2001 envisaged that every rateable property would have its valuation revised every five to ten years and that to date the Commissioner of Valuation has only carried out revisions in three out of 88 rating areas around the country, the Minister must agree that is not acceptable. It has been found that where revision has been completed local authority rates are reduced by an average of 30% for hotels. Did the Minister have any discussions with the Minister for the Environment, Heritage and Local Government? I do not know if the two strands of Government are talking to each other. The issue is critical at this stage.
I accept it is an important issue and that is why we have put into the plan that we will expedite the revaluation of the whole country. It is quite a heavy burden, particularly on hotels. Where revaluation has taken place hotels' rates have been reduced. I understand rates account for nearly 7.6% of the operating costs for hotels whereas for other retailers it is between 1% and 4%. It seems to be disproportionate and that is why within the plan we have accepted that this is something that needs to be expedited and we will do it.
Many hotels in the current climate will only be open for a portion of the year. Is it possible to give some consideration to basing rates on the length of time for which hotels remain open? It seems very unfair that they continue to pay rates for 12 months when they may be operational for seven or eight months of the year.
That is one issue hotels have raised with me. In other cases, many of them shut down bedrooms and keep a bar open. There are various ways of operating. If there was a more up to date and equitable revaluation then it would be within their power to be able to pay because they would be able to see it was fair. Another issue to which I referred briefly in my answer is that all of the burden falls on businesses. When water rates and additional local contributions — another word for property tax — included in the plan are implemented that will balance out the payments being made to local authorities and should help businesses generally.
I have asked the Minister this question before and called upon her to do something about it. Has she addressed the issue of hotels controlled by NAMA and those run by banks? I understand some 120 hotels are now being run by banks. They are providing very unfair competition to hotels that are still performing legitimately and paying their staff, taxes and so on. It is becoming more of an issue every day with the registered guest house sector and hotels in the country. I understand the issue is not being addressed.
That is broadening the scope of the question.
It is not.
As the Deputy will know I met NAMA and senior officials in my Department and from Fáilte Ireland to discuss the issue of hotels generally. They have assured me that they are not in the business of propping up hotels, but at the same time they have to take an economic valuation to ensure there is not a fire sale because that would not be in the best interests of the industry. They are very open to working with the national policy guidelines which I believe are very helpful. There is speculation about the numbers of hotels held by banks and NAMA. NAMA currently has some 30 hotels based in Ireland and it anticipates that by the end of its dealings it will have 60 or 65 hotels. It is not the huge numbers people thought. It is considering a geographic spread to determine its current position.
What we need, because we have set out a target to increase the number of tourists visiting Ireland to 8 million people over the next four to five years, is to have a range of quality hotels available so that there are three to five star hotels, guest houses and bed and breakfasts. We also we need to ensure that we do not get rid of hotels and then find that we do not have sufficient capacity. I have no doubt that the market will determine that.
28 Deputy Alan Shatter asked the Minister for Tourism; Culture and Sport if she has received representations from the car hire industry; and if she will make a statement on the matter. [44158/10]
As I informed the House previously, I received a number of representations from the car rental industry throughout 2010 seeking support on the basis that it was required to provide additional car hire capacity for tourists. The matter was also raised with me at meetings with other tourism interests in the early part of the year. The concerns expressed to me related mainly to the availability of automatic transmission cars in the traditional summer peak season, chiefly with the North American market in mind.
From a tourism perspective our main concern is the availability of cars and the price consumers have to pay. In that regard, my Department and the tourism agencies monitored the situation closely with regard to its possible impact on visitors from overseas. Although I received representations urging Government intervention during 2010, I also received a number of approaches, both from within the car hire industry and the wider tourism sector, against such a course of action. In these cases, the view was that the potential shortages would not be as extensive as suggested and the market should take its course.
As part of our monitoring exercise, my Department conducted a number of web-based surveys of car hire throughout the year. Our conclusion and that of the tourism agencies was that the availability of cars in 2010 was such that it did not warrant a Government intervention to ensure an adequate supply for tourists and I am happy to advise the House that this proved to be the case. The tourism agencies have since advised me that there were very few shortages in 2010. There was some pressure during the peak two weeks of the 2010 season leading to increased prices but these were not enough to cause major concern and intervention during the year could not have been justified.
I am planning to meet the Car Rental Council of Ireland to discuss the sector and its budget submission to the Minister for Finance in the near future. I will continue to consult the Minister for Finance regarding the options open to Government if State intervention is considered necessary. For State intervention to be warranted there would have to be clear evidence of market failure and the prospect that any intervention would result in incremental hire vehicles coming on to the market, and remaining in place, to deal with potential peak demand in 2011 and later years. It is too early yet to say if shortages might arise in 2011 but I will continue to engage with the sector and monitor developments closely.
It is fair to acknowledge that there was not a problem because there was such a fall-off in tourists coming to the country. They come in different ways but most tourists who come here need a car. The fact that we will be down about 1 million tourists this year would have decreased demand on our car rental fleet. If the Minister expects to build up tourism figures to 8 million she must have adequate current supply available. I am sure she would agree that for rural tourism especially, car rental is essential.
The requirements of the tourism car rental sector and the car industry are not compatible because the car industry has to ramp up the number of cars available from May to July and then there is a surplus available in the winter. Will the Minister consider making a proposal to the Minister for Finance that the car scrappage scheme be extended for 2010 car rentals? It would provide an incentive. I ask her to consider other measures to encourage the availability of more automatic cars, especially for American tourists.
I accept that over the next few years with the aim to increase tourism there will obviously be increased demand. It is interesting that the Irish Tourism Industry Confederation, of which the Car Rental Council is a member, did not look for support for the car rental sector for next year in the budget. It did last year.
There is also a certain sense of annoyance that the Car Rental Council of Ireland perhaps under estimated the number of cars it had available in 2010. There was significant pressure, under which we all came here and elsewhere, that there would be not be enough cars and yet the size of the fleet was perhaps larger than it had anticipated or indicated when it came to the summer months. The first thing that must change is the model the car rental companies have been using. The VRT element has been changed in previous budgets but it needs to look at the model it is using. I am not satisfied extending the scrappage scheme to it is the way to do it.
The reason we did not have a problem this summer was the fall off in the number of tourists. I am aware of people who were coming to Ireland and who telephoned ahead to see if cars were available. I do not exaggerate but they were told cars were not available when they needed them, whether mid-week for a few days. That is the reason they did not come to Ireland. As the Minister knows, the whole nature of tourism has changed. People come here for shorter periods, perhaps for three or four days mid-week. The demand that existed was, in some way, disguised by the overall view of the industry last year. It is more complicated than that. Given the fall off in tourist numbers this year, it may not have manifested itself as clearly. We want a vibrant tourism industry and we need car hire availability similar to that in France, Italy, Spain and elsewhere.
The car rental industry should look to see what works well in other countries. I accept car hire is an important part of the rural tourism trade. It is the means people use to get around the country. When the industry looked to have the scrappage scheme extended, the Department of Finance was anxious not to do so because by extending it to used cars, which is effectively what the rental car would be at the end of a few months, the scheme would cost much more and there would be no corresponding increase in VRT or VAT coming back to the State. The millions of euro required for it were simply not there. We anticipate an increase in tourists next year. I have no evidence to suggest there will be major pressure for car rentals. I was due to meet the Car Rental Council of Ireland last week but unfortunately I had to cancel due to a Cabinet meeting. However, I will reschedule that meeting to hear its views.
29 Deputy Mary Upton asked the Minister for Tourism; Culture and Sport in view of the expenditure of €114,000 on a consultants report on the potential economic benefits of the London 2012 Olympic Games, the number of times the high level coordinating group chaired by her Department met; when did the first meeting take place; the specific targets the group set for tourist visitor numbers, utilisation of sports facilities by foreign Olympic athletes and other quantifiable targets; and if she will make a statement on the matter. [44051/10]
As the Deputy is aware, a high-level co-ordinating group, chaired by my Department, is identifying the opportunities that may arise for Ireland across the sports, tourism and cultural sectors from the London 2012 Olympic and Paralympic Games. The group was established in November 2009 and has met five times to date. The sixth meeting of the group is scheduled to take place before the end of the year.
The task force report referred to in the Deputy's question made a number of recommendations arising from an audit carried out of high quality sports facilities in Ireland and the findings of a report by Indecon International Economic Consultants on the economic evaluation of the benefit to the island of Ireland of the London 2012 Olympic and Paralympic Games. The Indecon Report concluded that the largest potential benefits of the London 2012 Olympic Games were on the business side and Enterprise Ireland is actively pursuing opportunities for Irish business.
Given our proximity to London and the many accessible routes to and from the United Kingdom, we can also benefit from a sporting, tourism and culture perspective. The American Olympic synchronised swimming squad has chosen the National Aquatic Centre as its pre-Olympic training base. The Department and various sports facilities are working on attracting other teams to train here.
The tourism agencies are also working hard to maximise the potential benefits to Irish tourism of having the Olympic Games in London. For example, they are targeting tourists from London who may wish to get away from the city during the games. They are also working with UK inbound tour operators to divert people to Ireland who cannot be accommodated in London during the games given the reduced accommodation and carrier capacity that will be available there.
The Arts Council and Culture Ireland are developing proposals for a cultural programme which would include participation in the cultural olympiad that will be held at the same time as the games.
Given the many factors which may have an impact and are as yet uncertain, it is too early to set specific targets for visitor numbers or associated revenue arising from the Olympics at this stage. The high-level co-ordinating group will continue to meet on an ongoing basis to maximise opportunities and, obviously, this will influence the benefits to Ireland. The outcome of this work will be reflected in the visitor number and revenue targets contained in Tourism Ireland's 2012 business plan which will be prepared next year.
I suppose we should all be delighted about the synchronised swimming team coming to Ireland. It is a hugely popular sport here. We are talking about a huge international event. I am quite surprised there have not been formal bookings at this stage. A number of proposals have been put forward and the Minister identified a list of them. Having spent €114,000 on a consultants' report, I wonder about the return on that since we do not have a commitment for anything other than synchronised swimming team.
Even on the business side, it is a very nice prospect but when can we firm up on what will happen? What kind of returns can we expect since we are talking about the Olympic Games and the impact it should have? As far as I can see, or as far as the Minister has identified, there have been no confirmations for anything other than a synchronised swimming team and I cannot imagine that will bring an influx of tourists to observe it, although it is an interesting sport to watch.
I suspect the Deputy might be surprised. What was interesting was that a nation such as the United States would choose the National Aquatic Centre and state it was one of the best facilities it had seen anywhere in the world. We have been very quick to knock and condemn it and yet the United States acknowledged it was one of the best facilities available. I suspect there will be a huge amount of interest in going to watch the synchronised swimming team.
Use of the sports facilities is just one aspect. UCD and UL have made bids in an effort to try to attract not the large countries but some of the smaller countries and the individual sports from other countries which may yet be successful.
It is too early to tie down tourism. As we know, people book later and it is still only the end of 2010 and the Olympic Games will not take place for 20 months. It will probably only be towards the end of next year before we will see what the tourism impact will be but we are very much focusing on it. Even when I was in London for the day at the World Travel Market meeting with the various industry groups, we discussed this and they reckoned quite a number of people will want to get out of London at that time and that there may be potential there.
Enterprise Ireland is pursuing the business area because there is great potential there for people to be involved not only in construction but at the time of the games.
Is the Minister aware that while we are trying to attract Olympic teams to Ireland, many of our Olympic teams are leaving the country to go to training camps elsewhere? Will she indicate if any of the Irish teams are using Ireland as a training camp? I am aware of a number of teams going to other parts of Europe. Does she believe that sends a very negative message to other countries? If our facilities are not good enough for our athletes, how does she expect their competitors to come to Ireland?
It depends on the sport. Where we have top class facilities, people are using them. I am aware that the athletes all have to travel and participate in training camps abroad because we do not have the facilities. The facilities have not yet been developed in the Campus and Stadium Ireland.
How does the Minister expect people to come here?
We would not aim to attract those athletes but perhaps individual sports. Our boxers are perhaps our best prospect for medals in the Olympic Games. Of the 24 Olympic medals we have, I believe boxing accounts for 12 of them. The boxers are all training in Ireland. It depends on the sport.
The most successful Olympic Games we ever had were those held in Los Angeles in 1932 and the participants trained in Ballybunion in County Kerry. That was when we won most Olympic medals on track.
It was not synchronised swimming.
It was not.
As they say, res ipsa loquitur.
Very profound.
Earlier, the Minister referred to the tourism opportunities. I would have thought that if key media contacts were coming, there would be a commitment at this stage. Do we have an update on that? I am also concerned about the business side and the Minister mentioned Enterprise Ireland. There is a knock-on effect from the Olympic Games and it will be a long time until we will be as near to the staging of the games again. We must capitalise on the issue. A great deal of money has been spent on the report.
Enterprise Ireland earlier this year organised a two-day visit for a delegation from the Olympic Games to discuss business opportunities. In October, the Minister for Enterprise, Trade and Innovation, Deputy Batt O'Keeffe, went to pitch on behalf of Irish firms such as building contractors, and Enterprise Ireland has held information evenings with the Olympic Games organisers. Up to 50 Irish firms are involved in that so all that is happening through Enterprise Ireland working with Irish firms.
With regard to the tourism sector, all the contacts have been made but contracts have not yet been signed; that will happen next year. There will be a positive spin-off, as we are also trying to work with other countries to add Ireland to the visit to London. The issue is being worked through at different levels.
30 Deputy Catherine Byrne asked the Minister for Tourism; Culture and Sport if she has received representations from the film industry regarding the extension of Section 481 of the Taxes Consolidation Act, 1997; her views in relation to this proposal; and if she will make a statement on the matter. [44102/10]
As Deputies will be aware, the benefits of film and television production in Ireland include not only job creation in the industry but positive spin-off effects for promoting Ireland as a tourist destination and as an industrial location for all aspects of creative endeavours. The Irish audiovisual sector was valued at €557.3 million in 2008, equivalent to 0.3% of GDP, and it employs almost 7,000 people in about 570 companies.
Government support for the industry through section 481 tax relief and the Irish Film Board has helped to attract major productions to Ireland and give the Irish film industry invaluable experience. For its own part, the industry has demonstrated consistently high quality standards of work, earned several prestigious international awards and developed valuable connections. In 2008 the section 481 scheme was extended for a further four years until the end of 2012. Improvements were also made to the scheme by increasing the overall ceiling on qualifying expenditure, raising the cap that applies to individual investors and increasing the relief available on that investment from 80% to 100%. These changes gave the Irish audiovisual sector a major boost in challenging times and resulted in 44 film projects being approved in 2009, up from 38 in 2008, with a total Irish spend of €106.7 million.
In 2010, the film industry has attracted 46 productions to Ireland so far with accompanying expenditure of €135 million. These projects will support employment for crew, cast and extras of more than 10,000 individuals and will maintain and create jobs in a very difficult climate, while at the same time producing a product that will help to sell Ireland abroad. Significant projects this year include "Camelot" and "This Must be the Place", starring Oscar winning actors Sean Penn and Frances McDormand.
I have received representations from the audiovisual sector regarding extending section 481 beyond its current deadline of the end of 2012. The Irish film industry has the potential to sustain and increase employment in the coming years and make a far greater contribution to the economy than the cost of the tax relief. I consider the existence of section 481 to be vital to the future of the industry and have made representations to the Minister for Finance regarding the need to retain it. The four year plan unveiled today does not indicate removal of section 481. Given the sensitivity of budgetary matters, the Deputy will understand that I cannot provide any more detail.
We must stimulate our economy and this is one stimulant proven to work. The net gain to the Exchequer in 2009, for example, was more than €25 million; the gross gain was approximately €58 million, with tax foregone at approximately €32 million. The tax incentive has been very successful and without the incentive we would not have major film productions coming to the country.
The Minister has given a very positive reply but she knows that productions are planned two or three years ahead of time, which means people are now considering Ireland for productions in 2013. Certainty would be provided to the film industry if a statement could be made in the budget, and there are very good reasons for the Minister to state in the budget that we intend to continue the incentive for the length of the four year plan. That would bring us to 2014 and perhaps it could apply for even longer.
Any discussion we will have on this tax relief would be similar to that on the 12.5% corporation tax rate as we would all agree on the matter. It is an essential relief, not only because of its economic value but also because of the number of people it facilitates employment for and the way it supports the creative sector and not just the technical side. There is also a knock-on effect for tourism and people working here, as well as the image portrayed of Ireland abroad. On at least four different counts it is critical.
I visited the set of Sean Penn's film and that of "Neverland", which is being filmed on Killiney Hill. Every person from a wide geographical area with any skill or talent in the film sector was employed in the project, and Killiney Castle was full because actors and other personnel were staying there. There was much activity. In the plan there is a list of reliefs to be removed but the film relief is not one of those.
We would all find ourselves in agreement with the very positive responses to this question. Has anybody considered the video game sector and is there an equivalent to section 481 that should apply to the industry? The potential is enormous and there are similar prospects for spinning off, albeit in a slightly different way. There is a major element of intellectual property associated with video games — more than would exist with films — and the sector should be considered.
If only all questions were like this. The Deputy is absolutely correct and the issues will be addressed in the strategy, which I should publish quickly.
31 Deputy Michael Noonan asked the Minister for Tourism; Culture and Sport the progress made on the implementation of the tourism renewal group report recommendations since the last meeting of the group; and if she will make a statement on the matter. [44135/10]
42 Deputy David Stanton asked the Minister for Tourism; Culture and Sport if she has initiated any policy proposals to enhance Ireland’s attraction as a tourist destination; and if she will make a statement on the matter. [44073/10]
46 Deputy Bernard J. Durkan asked the Minister for Tourism; Culture and Sport the steps she has taken to enable the tourist industry to contribute towards the economic recovery of the country; the way this is likely to manifest itself over the various aspects of the industry; and if she will make a statement on the matter. [44089/10]
47 Deputy Jim O’Keeffe asked the Minister for Tourism; Culture and Sport in view of recent figures which showed a 16% drop in the number of visitors to Ireland in the first nine months of 2010, the plans she will be put in place to reverse this trend; and if she will make a statement on the matter. [43944/10]
I propose to take Questions Nos. 31, 42, 46 and 47 together.
As I said in my response to the earlier priority question, the tourism figures to date for 2010 reflect very difficult conditions, including global economic difficulties, loss of consumer confidence, exceptionally bad weather in the early part of the year and the negative impacts of the Icelandic volcanic ash on air travel. However, and as outlined in the same reply, it is important to note that more than 4.6 million overseas visitors came to Ireland in the first nine months of the year with positive benefits for the Irish economy. The Government recognises the opportunities to grow this figure further and ensure that tourism plays a key part in Ireland's economic recovery.
Since the tourism renewal group completed its work and published its report in October 2009, my Department has been driving progress on key measures in line with those in the framework for action, focusing initially on the survival actions, in conjunction with the tourism agencies and other relevant Departments and bodies. For example, building on the renewal group's framework for action along with the Government's wider strategy for economic renewal, the 2010 budget recognised the tourism sector as a critical, labour-intensive sector and provided for a 3% increase to more than €153 million in the overall tourism services budget. This included maintaining the real level of investment in overseas marketing, as well as a significantly increased capital allocation for tourism product. The tourism sector was also included in several cross-cutting measures to support enterprises and jobs, including the employment subsidy scheme and the credit review system.
In July 2010, I established the new tourism renewal implementation group to oversee and further drive actions on measures, based on the wide-ranging framework for action, that support tourism in Ireland, increase competitiveness and ensure that the sector is ready for recovery and growth. The group has already met three times under my chairmanship, on 6 and 20 September and on 27 October, and it is scheduled to meet again next month. Its first progress report, summarising progress on measures under the framework for action has been published on the home page of my Department's website.
With regard to progress made on implementing the recommended survival actions, the implementation group reports that we have either implemented or are making good progress on four of the five survival actions recommended by the renewal group. The sole exception relates to the recommended abolition of the air travel tax, which has to be considered within the context of the overall fiscal framework. As regards the recovery actions, the group notes good initial progress against each of these nine actions. In particular, Fáilte Ireland and Tourism Ireland are progressing the actions for which they are the lead or significant actors across a wide range of fronts through their business plans and day-to-day operations.
For its part, the implementation group has now identified the following matters as the priority issues to be pursued in public policy. These are the restoration of sustainable levels of business lending, in particular to ensure availability of working capital for viable tourism enterprises; measures to restore and enhance access to overseas markets; continued investment in overseas marketing; and measures to address and reduce enterprise costs. The tourism renewal implementation group is also holding bilateral meetings with those organisations identified as having a key role under the various actions recommended to review and ensure progress, for example, we recently met officials of the Office of Public Works.
The Government's new strategy and action plan for Irish trade, tourism and investment to 2015, Trading and Investing in a Smart Economy, which was launched on 28 September last, contains targets for job creation, exports, tourist numbers and inward investment projects by 2015 and details 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 its report and framework for action.
The report recognises that in the short to medium term, Ireland's best prospects from a tourism perspective are in the United States, Great Britain and the major European markets. These priorities will be reflected in Tourism Ireland's marketing plan for 2011, which I will launch next week.
On the domestic front, Fáilte Ireland will continue its significant investment in tourism product and services and continue to support local festivals and events. These measures, together with Fáilte Ireland's highly successful "holiday at home" marketing campaign, are playing a key role in boosting tourist revenues and employment. Fáilte Ireland also continues to work closely with businesses all over Ireland to increase their customer base, better manage costs, improve overall performance and sustain employment.
Overall, the Government is pursuing the right programmes and measures to support the continued development of tourism, working with the industry and the tourism agencies to position the sector for recovery and growth as part of the Government's wider strategy for economic renewal. This work is being greatly assisted by the tourism renewal implementation group, which will continue to oversee and drive further action on measures to support the competitiveness and sustainability of tourism in Ireland.
It took one year from the publication of the tourism renewal group's report to establish the tourism renewal implementation group. The most important of the recommendations produced by the former group was to abolish the air travel tax. Does the Minister consider it important to implement this recommendation given that it was produced by a group she established?
The tourism renewal group, tourism renewal implementation group and forum of major tourism businesses, which was attended by all the major airlines and was organised by me, all recommended the abolition of the air travel tax. This view must, therefore, be taken seriously. I am concerned that the tax is having a serious impact on tourism. In light of the many other factors which came into play this year, it is not possible to ascertain whether the air travel tax was a particular disincentive to people travelling to Ireland. What worries me more is that the airlines have indicated that the tax affects their choice of routes. If we do not have international access, we cannot expect to attract tourists. For these reasons, an argument can be made for the abolition of the air travel tax.
On the other hand, the air travel tax is a source of significant income and will generate even greater income if the projected increase in tourism numbers materialises. Whether the figure is €80 million, €100 million or €120 million, it is very difficult to find sums of this magnitude by other means. This is the reason a debate is taking place on how the abolition of the tax would further contribute to the tourism industry.
Is it too late to have the Minister reply to Question No. 32?
We are about to run out of time.
I assure the Deputy that the issues he raises are being discussed in the context of the forthcoming budget. The industry is the one element that will ensure the strategy is implemented for the benefit of the tourism sector. I have never encountered as enthusiastic and resilient a group as those involved in tourism. The industry is determined to ensure it is a success and the Government is working closely with it to achieve this objective.
Will the Minister ask the implementation group to review the role of the organisations which manage tourism, focusing specifically on the obvious overlap and tensions between Tourism Ireland and Fáilte Ireland, with a view to ensuring these agencies function effectively on behalf of the tourism industry?
Tourism Ireland and Fáilte Ireland are two distinct agencies and both work well. One could ask the reason any country needs to have two tourism agencies. Tourism Ireland has a particular remit by virtue of the fact that it markets Ireland internationally as an island. Fáilte Ireland, on the other hand, is responsible for the domestic market. While the marketing of Ireland internationally is going very well, the domestic market saved the tourism industry this summer. One change that should be made is to make the chief executive of Fáilte Ireland an ex officio member of the board of Tourism Ireland and vice versa. A change in legislation may be necessary to do this.
Written Answers follow Adjournment Debate.
