First of all, I should explain to you, a Chathaoirleach, and to the Members, the urgency attached to this Bill. Under the 1975 Estimates there was only a balance of £62,283 from a total provision of £600,000 which could be spent by Bord Fáilte within existing statutory limits. We need to get this Bill as quickly as possible to enable them to pay people who are due money from Bord Fáilte. Even with the passage of the Bill today, because of administrative reasons inside Bord Fáilte it may be a couple of weeks before the money can be paid.
I understand that this morning there was some concern about the urgency attached to this Bill. As I say, it is to allow Bord Fáilte to pay debts to people who, I suppose, have overdrafts and do not want to pay any more interest between the time they incur the debt and the time they get their grant from Bord Fáilte.
The purpose of the Bill is to provide for a new Tourism Development Fund, from which advances can be made to Bord Fáilte towards the cost of capital works (other than holiday accommodation) which will assist Irish tourism; to raise the statutory limit on the aggregate amount of money which may be paid to the board for the giving of grants for holiday accommodation; and to make provision for the control of the remuneration of the chief officer of the board.
The new fund will replace the Major Resort Development Fund inaugurated under the Tourist Traffic Act, 1959. This Act provided for the payment to Bord Fáilte of sums not exceeding £1 million for the giving of grants for the development of major tourist resorts. In all, 19 resorts and resort areas were improved. Under the scheme, the board provided grants to enable such essential work as basic site development, the provision of facilities such as toilets, shelters, car parks, promenades, parks and other recreational facilities to be undertaken. The works were undertaken in co-operation with local authorities and other local tourist development interests who were required to provide a local contribution of not less than 20 per cent.
The planning and execution of these works necessitated negotiations with many interests, which tended to prolong the carrying out of the various development plans. The financial provision for the resort scheme was increased from the initial £1 million in 1959, by amending legislation, to £3.25 million in 1966 and to £4 million in 1972. Advances to Bord Fáilte have now reached the statutory limit of £4 million set in 1972. The board's expenditure under the resort scheme was supplemented by a further £2 million investment by local authorities and other interests. It is fair to say that prior to the introduction of the resort scheme there had been virtually no public or private investment in amenity and recreational infrastructure. This situation has been radically altered in the 19 areas mentioned. Apart from expenditure under the Major Resort Scheme, Bord Fáilte contributed, from the funds allocated for the general administration and activities of the board and, in 1972-73, from a special Amenity Development Works Fund a further £4½ million towards the cost of other capital works of benefit to tourism— on field sports and commercial promotions (boating, fishing etc.), minor resorts, amenity development, historic buildings and signposting.
As the Major Resort Scheme neared completion, Bord Fáilte carried out a detailed examination of the existing supply of tourist facilities, of likely tourist demand and of development policy needed to match supply with demand. This examination has shown that good environmental quality is all important. Fishing, river cruising, golf, coach and car touring will only attract visitors if set within a pleasing environment. Unspoiled surroundings are becoming increasingly scarce and the need and demand by people living in urban areas to spend some time in more relaxed surroundings is growing. The pressure on existing resources is such that the quality which attracts the visitor is being eroded. The board are concerned— and I fully share their concern — that this erosion needs to be halted.
To that end, the board have proposed a new tourism conservation policy based on the idea of designated areas. They have identified and mapped those areas of the country which by virtue of their natural and man-made resources, and their existing and potential tourism use, are critical to the future growth of the industry and consequently must be safeguarded. Basically the designation idea is a method of clearly demonstrating the land use requirements of tourism and staking a claim for tourism's share of the nation's natural resources.
A draft designated areas map has been prepared by the board to serve as a basis for consultation with the local authorities. It is the board's eventual aim to persuade the local authorities to incorporate the designated areas into their statutory development plans. The board's approach, which is incorporated in a draft Tourism Development Plan, has been well received so far by local authorities. The conservation policy outlined by the board involves strengthening their role as a Prescribed Body under the Local Government (Planning and Development) Act, 1963, increased liaison with the local authorities, who are guardians of the environment, and carrying out environmental development and setting standards.
The board have also formulated a zoning strategy aimed at stimulating a balanced mix of facilities within an area which offers a natural focal point for tourism activity. In all, between 80 and 90 tourism planning zones are envisaged. Concentrating on specific zones it is easier to determine the type and quantity of facilities required within the area. The board's role is one of stimulating the development of tourism facilities through providing financial support and advice. Such development would include joint development with bodies such as the Office of Public Works and the Forest and Wildlife Service on conservation, recreational and educational projects, for example, national parks, forest parks and interpretative centres on the lines of the centre recently opened at Cahir Castle. It would also include expenditure by Bord Fáilte aimed at encouraging the improvement of facilities by those directly involved in the tourist industry, that is, in relation to sailing and water sports, horse-riding, horse-drawn caravans, sea angling, swimming pools, recreation complexes and so on.
To enable Bord Fáilte to contribute to the projects mentioned — activities which were previously financed under the Major Resort Scheme and also, in part, from the funds allocated for the board's general administration and activities — a new Tourism Development Fund is being established under section 2 of the Bill. The new fund will have an initial statutory limit on advances of £4.75 million which should be sufficient to meet the board's requirements for the next few years. The provision in the Bill is of an enabling nature and the amounts to be provided in each year will fall to be debated and voted by the Dáil in the normal way under the vote for my Department.
Section 3 of the Bill provides for an increase in the aggregate amount which may be paid to the board for the purpose of giving grants for the development of holiday accommodation. A grant scheme for this purpose was introduced initially under the Tourist Traffic Act, 1959, which authorised advances of up to £500,000 to Bord Fáilte. The grant scheme was adapted as necessary over the years to meet the needs of the growing tourist industry and the statutory limit was raised by subsequent Tourist Traffic Acts to the current limit of £13 million which was set in 1972.
The emphasis throughout the 1960's was on the provision of additional accommodation, but in 1969, the board began a general embargo on new grant commitments in respect of additional hotel and guesthouse development as the existing stock of accommodation was considered adequate to meet the needs of the industry for some years ahead.
In general moneys voted for holiday accommodation grants since 1969 were initially used by the board to reduce the backlog of grants due to developers and then to meet outstanding pre-1969 commitments as they matured for payment. A few outstanding commitments still fall to be met within the next few years.
The significant downturn in tourism since 1969 posed considerable problems for the industry. Following a study of the hotel industry which Bord Fáilte commissioned in 1973, I authorised the introduction of a scheme of grants to help hotels and guesthouse owners to carry out repairs and renewals which, due to the earlier tourism difficulties, they would otherwise be unable to undertake— and to help with improvements to premises, the provision of amenities and facilities for guests and staff accommodation. The scheme was introduced in June, 1974, and progress up to the end of that year was disappointing. Since then, however, interest in the scheme has improved to the stage where by the middle of November 92 applications in respect of grants totalling just over £300,000 had been approved under the repairs and renewals scheme and 103 applications representing grants of approximately £700,000 were approved under the improvements and amenities scheme. In addition the board had received firm inquiries likely to result in total grants under the two schemes of almost £700,000. Many more hotels and guesthouses are very much in need of refurbishing and improvement and I would hope that the operators will avail of the grant schemes mentioned — indeed, for the future of the tourist industry, it is vital that they do so.
I see the board's role in the accommodation sector as one of encouraging the provision of a balanced and viable supply of accommodation which meets the needs of the expected number of tourists. To this end, as part of the tourism planning strategy, the board have been assessing the existing stock of accommodation and future requirements within each of the planning zones I mentioned earlier. As regards hotels and guesthouses, in general, the emphasis will continue to be on improving the quality of accommodation and providing amenities for guests rather than on the provision of additional accommodation.
The board have been financially assisting the provision of camping and caravanning sites and will encourage the development of further parks and the extension of existing sites to meet the demands in particular areas.
By the end of the current year advances to Bord Fáilte from the holiday accommodation fund will be approaching £12 million. I propose in section 3 of the Bill to raise the statutory limit on advances from £13 million to £16 million. This should be sufficient to meet the board's requirements in financing the improvement and development of holiday accommodation on the lines I have mentioned over the next three to four years. As in the case of the Tourism Development Fund, the amount to be allocated in any particular year will be included in the annual vote for my Department.
The control on the remuneration of the board's chief officer, provided for in sections 4 and 5 of the Bill, arises from the general policy of taking the remuneration of the chief executives of semi-State bodies under control as and when the opportunity arises. The intention is to allow the board freedom to fix the total remuneration of the chief executive within the range approved by me with the consent of the Minister for the Public Service. The ranges of remuneration for chief executives of semi-State bodies are those set by the Review Body on Higher Remuneration in the public sector in their report of 11th July, 1972, updated by the addition of increases in pay agreed under recent national pay agreements.
I consider it appropriate at this stage to say something about the present tourism situation. We have had a small but encouraging improvement in results in the last three years. After allowing for inflation, 1973 revenue from tourism was up about 7 per cent on 1972, which was the worst year in tourism terms for 10 years. The recovery was maintained in 1974 when there was a modest increase of almost 2 per cent and it is expected that revenue in the current year will reach the target of a 4 per cent increase in real terms which was set by Bord Fáilte. For next year, the board have been working on the basis of a 7 per cent increase.
As we are all very much aware, factors beyond the control of the tourist industry can have very adverse effects on the numbers of visitors coming to Ireland. I think however, that the storm has now been weathered and that the industry is on its way to recovery. But it is the job of those in the tourist industry, and indeed the public at large, to ensure that the recovery is maintained. Bord Fáilte have been doing a good job, in difficult circumstances, in promoting Ireland abroad. Adequate funds have been, and will continue to be, made available for that purpose. The funds towards the improvement and development of facilities and accommodation which can be made available under this Bill will also help. But this will not be enough. The Government can help the industry only if the industry helps itself. The tourists will return if they get value for money, if they get good service, good meals and clean and comfortable accommodation. On a broader level the protection of the environment and the maintenance of our cities, towns and villages in an attractive state are matters which concern us all. Those in the business of promoting and developing Irish tourism will continue to stress the importance of these aspects, but unless we respond to their advice the tourist industry will not be able to take full advantage of the opportunities for renewed growth now offered.
I confidently recommend the Bill for approval.