This meeting is convened to consider the Revised Estimates for the two Departments for which this committee has responsibility. I welcome the Minister for Arts, Sport and Tourism, Deputy O'Donoghue, who will speak to the arts, sport and tourism brief. We will then have questions from Opposition spokespersons, with the Minister to conclude. I also welcome the Minister's officials.
Vote 35 — National Gallery (Revised).
Chairman and members of the committee, I thank you for facilitating me and apologise for my late arrival due to circumstances beyond my control. Before I make my formal presentation I wish to introduce my officials. I am accompanied by Mr. Philip Furlong, Secretary General of the Department of Arts, Sport and Tourism; Mr. Con Haugh, assistant secretary in charge of sport; Mr. Paul Bates, assistant secretary in charge of tourism; Mr. Joe Timbs, finance officer; and Mr. Barry Murphy, principal officer, arts and culture.
I am pleased to present the 2005 Estimate for my ministerial Vote group and to have this opportunity to meet with the committee to discuss the Estimates for my Department, the National Gallery of Ireland and associated matters. My Department has overall responsibility for the formulation of public policy for the promotion and development of the arts, sport and tourism sectors. I will now outline for each of these sectors the major developments for which provision has been made in the 2005 Estimates beginning with tourism, in respect of which €125 million has been allocated.
Subhead B.1 of my Department's Vote comprises an allocation of €65.1 million in current funding to Fáilte Ireland in 2005 and makes provision for its administration and general expenses. These include pay, overheads, advertising and printed publicity, marketing and promotion, the subvention of the regional tourism authorities and assistance towards product and domestic marketing. The funding also covers recruitment, training and development activities as well as initiatives such as the international sports tourism initiative and the festivals and cultural events initiative.
The B.1 subhead also contains a capital provision of €800,000 for tourism amenity projects such as the provision by the regional tourism authorities of tourist trails, tourist information, signposting and cultural-heritage projects. Subhead B.2 provides for €17.5 million to be allocated to Tourism Ireland in respect of pay, overhead and administrative costs. Last year was Tourism Ireland's third full year in operation and the third year in which an all-island tourism marketing programme was delivered overseas in line with the institutional framework established under the Good Friday Agreement.
Tourism Ireland has established strong working relationships with the tourism industry, North and South, through its tourism marketing partnerships. These are a highly effective means of responding to the various external shocks that have beset the tourism industry in recent times. The company has a strong commercial focus, which ensures that its objectives and operations are commercially driven.
Under subhead B.3, provision is made for the allocation of €782,000 to Shannon Development towards administration costs and tourism promotion and development of the mid-west region. The reduction in the allocation this year reflects the fact that since 1 January 2005, responsibility for north Kerry has transferred to Cork Kerry Tourism, with the associated allocation transferring from Shannon Development to Cork Kerry Tourism.
Subhead B.4 provides €23,000 to meet the interest subsidy payable in respect of tourism loans under the small business expansion loan scheme, which has been closed to new borrowers since 1996. The Exchequer provision for the tourism marketing fund, subhead B.5, has increased significantly year on year — from €18 million in 2000 to almost €36 million in 2005. This is a clear recognition by Government of the importance of the tourism sector to the economy, which employs in the region of 150,000 people and generates over €4 billion in annual foreign revenue earnings. It is also a recognition that international marketing is an essential element of the Government support package that helps to make Ireland a top class tourist destination.
Under subhead B.6, a provision of €5 million is being made available to support tourism product development in 2005. After a slow start, considerable progress has been made by Fáilte Ireland in the implementation of the tourism product development scheme. To date, EU grants totalling just under €32 million have been approved by the independent tourism product management boards in respect of 44 projects nationwide.
In order to maximise the use of funds available under the scheme, I requested Fáilte Ireland in December 2004 to invite further investment proposals under the special interest pursuits category. Approximately 80 investment proposals were received by Fáilte Ireland by the February closing date and these are being currently processed.
Having outlined the details of the tourism Vote, I would like to make some remarks on tourism performance and policy. In 2003 and again in 2004, Ireland has performed particularly well in the US market against stiff international competition. US visitor numbers increased by over 6% in 2003 and by a further 8% in 2004 despite the impact of the Iraq war, increased threats of terrorism and SARS. A key factor in this recovery has been the enhancement of direct access routes from the United States, all of which have been vigorously promoted in tandem with the airlines to ensure the best possible tourism dividend.
Mainland Europe continues to be a challenging market, although the double-digit growth in business from southern European countries, such as Spain, has been a very welcome recent development. A 3% growth figure for Britain in 2003 was followed by a decline of about 1% in 2004. As our largest market by far, the flat performance in 2004 underlines the value of Tourism Ireland's root and branch review of the British market late last year. The new strategy prepared by Tourism Ireland in conjunction with the industry for the British market, which I launched on 13 April, will be key to informing the future direction of tourism marketing in Britain.
The domestic market, which is so important for regional and year-round business, has performed very well. Total domestic trips in 2004 were up 5% to 7 million, with domestic revenue increasing by 7% to over €1 billion. It is also evident that different sectors of the industry fared better than others last year. Bed and breakfast premises and guesthouses are under some pressure, while hotels appear to be gaining market share.
Looking to this year, the tourism agencies will be working with the industry to achieve growth of 4.7% in overseas visitor numbers and 5% in domestic numbers. These are particularly ambitious targets when viewed against the background of changing consumer preferences, tougher international competition and a deterioration in Ireland's relative competitive positioning, particularly in traditional markets such as Britain. However, bolstered by the unprecedented level of investment in tourism services of some €125 million under the Estimate we are discussing today, Tourism Ireland and Fáilte Ireland are ideally placed to support all sectors of the industry to respond to the key challenges ahead. I am also very heartened by the increase in air access capacity coming on stream this year, which will see a 40% increase in peak summer capacity from mainland Europe, with corresponding increases of 16% and 17% for Britain and the US respectively.
As the committee is aware, the report of the Tourism Policy Review Group was presented to me in September 2003. It is an excellent blueprint for what needs to be done to promote the future successful development of the sector. The strategy and recommendations set out in the review encompass a wide and complex range of issues that require to be addressed by both the industry and the public sector. The implementation group, which I established, is driving forward, and monitoring with resolution, commitment and energy, the implementation of the actions set out in the New Horizons document. The group has met on 12 occasions to date.
The implementation group's brief includes the highlighting of any barriers to progress and recommendations on the way they might be addressed. It engages regularly with those whose responsibility it is to implement the recommended actions and this ensures that the momentum of the review is sustained. It also co-hosted with me the first Forum of the Tourism Industry to discuss the implementation of the action plan with the industry last November. The group presented its first progress report to me in September 2004 and I just recently received its second report on 5 May. These reports are available on my Department's website and copies have been placed in the Oireachtas Library.
The most recent report indicates that overall the implementation group is satisfied that the strategy is being well advanced, both by the industry itself and the Government. The report also has a good deal to say about competitiveness and value for money — an issue which has received considerable media attention in recent times. Since the report's publication, I am glad to say that the Government has taken a range of important decisions on the future of aviation policy in Ireland along the lines recommended by the implementation group.
I am conscious that in reporting on the overall improvement in tourism performance at national level in 2004, not all regions or sectors benefited equally. Government policy for tourism seeks to facilitate as wide a regional spread of business as possible. A number of programmes and initiatives particularly favour the regional distribution of tourists. These include the tourism product development scheme, the differential levels of support to the regional tourism authorities for marketing, the use of predominantly rural imagery in the advertising and promotion of Ireland, the regional coverage with respect to visiting media, the expanded domestic marketing campaigns and regional access transport policies.
In their plans for 2005, both tourism agencies are rolling out a number of innovative approaches which will heighten the regional impact of Ireland's marketing activities both nationally and overseas. A dedicated marketing fund for tactical co-operative initiatives with the regional tourism authorities and their members has been established. A region to region approach is being adopted in Britain which will capitalise on direct access links to the regions. Specific campaigns promoting the western seaboard are being mounted in North America. A sponsor a region approach is being adopted in Europe whereby each market office will focus attention on a particular Irish region to enhance the awareness of the local trade of what that region has to offer.
An enhanced consumer website with increased functionality and a strong regional input will provide for more dynamic and up to the minute packages to entice the domestic traveller. A strong focus on event-based holidays will be complemented by a more streamlined and targeted festivals and cultural events fund which will continue to favour the lesser developed regions.
There has been a major reform of Irish tourism structures in recent years with the setting up of Tourism Ireland and Fáilte Ireland. Reform of the function, role and operational structure of regional tourism is the third and final leg of that reform process. Fáilte Ireland commissionedPricewaterhouseCoopers, PwC,to conduct a consultancy study of regional tourism structures as the authority sought to determine how best to carry out its new development mandate countrywide. The recommendations of this consultancy report, which is available on Fáilte Ireland's website, have been endorsed by the Fáilte Ireland authority, which has decided that there will be a further short engagement with the relevant parties to satisfy interests in the Dublin region that the mechanisms of consultation are complete.
I have been informed by Fáilte Ireland that the PwC report highlights the need for a much wider brief for regional tourism, playing a much more strategic rather than administrative role and inputting more directly into national policy. It recommends an increased emphasis on targeted marketing, product development and enterprise support. It suggests establishing an integrated linkage between regional tourism strategy and national policy and exploiting avenues to leverage increased resources.
My consideration of the policy implications of the authority's recommendations on foot of the report, the outcome of the further consultation process about the future role of Dublin Tourism and the views of the industry will continue over the coming weeks. Basically, I want to satisfy myself fully that we have the most efficient and effective regional structures to service the needs of the visitor and the industry.
The Government in June 2003 agreed, in principle, to the provision of a national conference centre through an open competitive tendering process. Over the course of 2004, significant progress was achieved in advancing the detailed arrangements for a public private partnership to deliver this vital project. In December 2004 the detailed tender documentation was issued and I am glad to report that tenders were received from the two remaining candidates on 20 May last. These are now undergoing assessment and evaluation, with the selection of a provisional preferred tenderer scheduled for later in the summer and the award of the contract, subject to Government approval, expected before the end of the year.
When the Government took office in 1997, the budget for sport amounted to approximately €17 million per annum. This year investment in sport by my Department, not including the amount being allocated to the horse and greyhound racing sectors, stands at just over €149 million. This high level of funding has enabled many major proposals to become a reality.
Subhead C.1 of my Department's Vote provides funding of almost €62 million for grants for sports bodies and for the provision of sports and recreational facilities. Almost all the grants are in respect of payments under the national lottery-funded sports capital programme. The vast majority of the payments are in regard to grants under the sports capital programme, which dovetail with the local authority swimming pool programme and the national facilities funded such as the National Aquatic Centre, Croke Park and the redevelopment of Lansdowne Road, to improve the sporting infrastructure of the country.
The sports capital programme helps to provide facilities at local, regional and national level. Since 1998, a total of €331.6 million has been allocated to 4,273 sports capital projects across the country. The programme is open not only to sporting organisations but to voluntary and community organisations who promote projects with a sporting focus. Types of projects covered can range from a club seeking a couple of thousand euro for sports equipment, to major national projects such as the National Rowing Centre at Inniscarra in Cork, the national boxing and hockey facilities and major municipal facilities such as those recently opened in Finglas and Ringsend.
The majority of the projects funded are at local level where the massive and often unheralded efforts of the volunteers keeping clubs and projects afloat received the boost of funding for new or improved facilities. Since 1998 virtually every town, village and parish in the country must have been touched in some way by sports capital funding, be it for developing new or improving existing pitches and playing surfaces of all kinds, including in recent times all-weather ones, dressing rooms and showers, floodlighting and a range of sports equipment. Every organisation allocated support on a provisional basis must adhere to the programme's guidelines, terms and conditions in order to receive the payment of a grant, including all tax, financial and legal requirements.
In regard to the 2005 sports capital programme, my Department received 1,362 applications, which are in the final stages of assessment and I will be announcing provisional grant allocations under the programme in the near future. Under Subhead C2, an amountof €32 million has been allocated to the local authority swimming pool programme, representing an increase of over €14 million, or 82%, on last year's expenditure of almost €17.6 million. This provision includes €3.7 million allocated by the Minister for Finance in the budget towards the cost of providing a swimming pool at St Michael's House, Belcamp Lane, Dublin to cater for people with special needs.
Under the programme, grants of up to €3.8 million are made available towards the refurbishment of existing swimming pools or for the provision of a new pool, subject, in both cases, to the total grant not exceeding 80% of the eligible cost of the project, or 90% for projects located in disadvantaged areas.
Some 55 projects have or are currently being dealt with under the programme. Some 25 projects have been allocated grant aid, 15 of which have been opened or have completed construction and ten are under construction, six are at tender stage, 15 are at contract documents stage and nine are at preliminary report stage.
The budget of the Irish Sports Council, provided for under subheads C.3 and C.4 of my Department's Vote, has risen consistently since its establishment on a statutory basis with effect from 1 July 1999, from €13.2 million in its first full year of operation in 2000 to €34.4 million in 2005. The additional funding for 2005 includes €1.5 million for an initiative being taken to preserve and develop the games of hurling and camogie on a nationwide basis, €1 million to support initiatives aimed at the development of Gaelic games in Dublin and €750,000 to commence programmes which attract women into sport. This increasing level of funding for the Irish Sports Council means that the council can continue to implement its strategic plan to increase participation in sport, raise standards in competitive sport and help Ireland's leading sportsmen and women achieve and maintain world class performance.
The Irish Sports Council is currently carrying out an assessment of the conclusions and recommendations of the recently published Athens Review. This assessment will develop into an operational plan, which will address key performance indicators, timescales and costings and identify the roles of the various agencies, as it supports Ireland's Olympic and Paralympic preparations for Beijing.
The allocation of €1.65 million in the 2005 Estimates for subhead C.5 provides for the running costs of Campus and Stadium Ireland Development Limited, CSID, the company established to develop and manage the Sports Campus Ireland project. This includes a capital allocation of €400,000 to cover the balance of the retention amount on the construction contract for the National Aquatic Centre. In regard to the wider sports campus project the Government decided in January 2004 to proceed with the development of a sports campus on the State owned lands at Abbotstown. CSID was requested to put forward proposals for the development of the campus. In the preparation of CSID's proposals, it consulted widely with the major governing bodies of sport, with stakeholders and interest groups to devise a development control plan.
I have received the development control plan from CSID, representing phase one of a wider programme for sports facilities. It proposes the development of pitches and ancillary accommodation catering mainly for the three major field sports, rugby, soccer and Gaelic games, as well as an indoor sports centre to cater for a range of indoor sports with spectator accommodation. This phase also includes publicly accessible all weather floodlit synthetic pitches. These facilities will complement the existing water based facilities provided through the National Aquatic Centre. This phase of the programme has been costed at €119 million and has a four to five-year delivery schedule. I am currently arranging to circulate my proposal for consideration by the Government.
This year, subhead C.6 contains €19 million which has been set aside for the Lansdowne Road redevelopment project which has moved to a new phase with the announcement by me on 25 April that the design and project management contracts for the stadium have been awarded by the Lansdowne Road Stadium Development Company. The design contract has been awarded to a consortium led by HOK Sports, one of the world's largest sport architectural practices, and includes Irish architects, Scott Tallon Walker. The contract for project management services has been awarded to an Irish consortium led by Project Management Limited, one of Ireland's largest specialist technical consultancy and project management firms. The contracts have been awarded following tender competitions, advertised internationally through the European Journal, as well as in Ireland.
The Lansdowne Road Stadium Development Company has begun the preparatory work with the intention of lodging a planning application in December this year, in accordance with the agreed timetable. The newly appointed design team has already begun to develop a detailed design for the new stadium. It is expected that enabling works will happen during 2006 and that the main construction work will commence in 2007, with an estimated building time of 29 months. I can reaffirm the Government's commitment to the project and its decision to provide an amount of €191 million towards the cost of the project, which is estimated to cost €292 million.
I will now turn to the arts, culture and film sectors. As the committee will be aware, the National Museum of Ireland and the National Library of Ireland were established as autonomous non-commercial, semi-State bodies under the provisions of the National Cultural Institutions Act 1997, with effect from 3 May 2005. I have appointed Dr. John O'Mahony, SC, as chair of the 16-member board of the National Museum, and Mr. Gerard Danaher, SC, as chair of the 12-member board of the National Library. The appointment of these new boards heralds vibrant and exciting futures both for the library and the museum.
To reflect the change in status of the museum and library, funding for both institutions, which was previously provided for under subhead D.2 of my Department's Vote, is now provided for under separate, dedicated subheads — subhead D.11 in the case of the National Museum and subhead D.12 in the case of the National Library. Salary and certain overhead costs for both bodies are still shown in the administration subheads of the Vote for 2005, but these will be shown in subheads D.11 and D.12 from 2006 onwards.
Subhead D.11 provides for an allocation of €8.5 million in grant support to the National Museum in 2005, an increase of almost 63% on the 2004 provision. The 2005 allocation includes almost €1 million extra funding to meet the costs of corporatisation and an increased capital provision towards the cost of a planned military history exhibition.
Subhead D.12 provides €4.4 million for the National Library of Ireland in 2005. This represents an increase of over 36% on 2004. It should be noted that the 2004 figure included a once-off capital provision of €1.8 million for the library's very successful Bloomsday exhibition. Following corporatisation of the National Museum and National Library, subhead D.2 now provides funding solely to the National Archives for which the 2005 Estimate is €1.7 million, an increase of just over 20% on 2004.
Subhead D.3 of my Department's Vote makes provision for almost €9.6 million in grant support for the Chester Beatty Library, the Irish Museum of Modern Art, the National Concert Hall and the National Archives Advisory Council. Subhead D.4 provides Exchequer funding for a number of cultural projects and non-State cultural institutions. These include bodies such as Marsh's Library, the Irish Manuscripts Commission and the Irish Architectural Archive.
Subhead D.6 allocates funding to the Heritage Fund in accordance with the Heritage Fund Act 2001. The fund facilitates the acquisition of significant items for the national collections by the national cultural institutions. It should be noted that the 2005 provision is the final tranche of funding provided for the fund in the Act. Over the coming months, I will be reviewing the case for increasing the ceiling of €12.7 million fixed in the 2001 Act.
My Department is examining the feasibility of embarking on a joint venture with Library and Archives Canada, with a view to the digitisation of our 1901 and 1911 census returns. The €1.17 million allocation, under subhead D.4, represents the first tranche of an expected overall cost of €2.4 million. It promises to be a very exciting project and, on completion, will be sure to attract a significant level of interest from the Irish diaspora.
Next year will mark the centenary of the birth of Samuel Beckett. A wide-ranging programme of commemorative events is being planned by agencies and individuals closely associated with Beckett's literary and artistic heritage. My Department is in consultation with these interests to see how best we can support this important centenary.
Since assuming responsibility for the arts I have said on many occasions that I see access to the arts as being the right of everyone. It is the objective of my Department, in so far as possible, to ensure that everyone should have a chance, if they wish, to enjoy and participate in the arts. It is for this reason that my Department has, over a number of years, given grant assistance for the development of arts and culture facilities around the country, which has transformed access to the arts. Under the ACCESS programme, which commenced in 2001, my Department has provided grants of €45.71 million for the development of 44 arts and cultural facilities around the country. This scheme provides funding for theatres, museums, and multi-purpose arts centres. As virtually all of the available funding has been allocated and with the projects now well underway, it is now timely to consider the parameters for a follow-up scheme, which I will be discussing with the Minister for Finance in an Estimates context.
The National Theatre — the Abbey — and the National Concert Hall are key elements of our national cultural infrastructure and it is an unfortunate fact that neither can hope to come anywhere near to realising its potential unless essential redevelopment is undertaken. As I have reported regularly to the Dáil on progress with our efforts to find a new location for the Abbey Theatre, Deputies will be aware of the difficulties we have encountered in securing a suitable site at a number of locations. Notwithstanding recent disappointments, I am determined to bring the Abbey redevelopment project to a successful conclusion. I am encouraged that discussions currently taking place between the Office of Public Works and the Dublin Docklands Development Authority are showing promise. However, recent hard experience counsels against building up excessive expectations at this stage in the proceedings.
Deputies will be familiar with the recent disappointing development around inadequate financial reporting at the Abbey, which has prompted concerns about the adequacy of existing corporate governance arrangements. I am currently considering what changes, if any, may be necessary in this regard and will keep Deputies informed on developments.
As regards the National Concert Hall, the Office of Public Works has advised me that should the Earlsfort Terrace site become available in its entirety, it can be reconfigured to provide a national concert hall of the highest international standard. Discussions are underway with relevant stakeholders to agree a basis for progress. Reconstruction would cost in the region of €130 million, with site costs of some €50 million.
In addition, the Theatre Royal in Wexford, home of the Wexford Festival Opera, is operating from historic but, in today's terms, hopelessly inadequate premises. Much work has been done to raise private finance but a State contribution of the order of €20 million has been requested to enable redevelopment to proceed. In conjunction with my ministerial colleagues I am exploring how best we can support the project to enable it get under way as quickly as possible.
In accordance with the provisions of the Arts Act 2003, which specifies that the Minister for the Arts, Sport and Tourism has responsibility for promotion of the arts, both in Ireland and abroad, I established Culture Ireland in February of this year. This body will take a proactive approach to supporting artists' international activities right across the creative spectrum including theatre, music, dance, opera and film in this context. This type of funding is of tremendous benefit to Ireland's working artists, providing them with access to new audiences and new markets.
Culture Ireland will have a central role in the process of showcasing Irish cultural activities abroad. It will make a significant contribution to raising Ireland's international profile across many sectors of activity — work which was begun with such great effect during our EU Presidency last year. It will also fund and facilitate Irish participation at strategic international events, manage special emblematic cultural and artistic events and activities in Ireland and abroad, as well as providing advice to me on international arts and cultural affairs.
This year Cork has become the first Irish city to hold the new EU designation of capital of culture. Cork 2005, a company limited by guarantee, was established to organise the year's events. It has put together an ambitious programme that includes 180 projects across various art forms and involves local, national and international artists. The Cork 2005 programme is geared to make an impact on Europe and to make Ireland proud. The festival committee has begun well and I have little doubt that it will achieve an ever more significant impact as we enter the peak months of the tourism season. The Government is providing Exchequer funding up to a maximum of €7.85 million to support the programme.
Under the aegis of my Department, the Arts Council, as the State agency with responsibility for the promotion and development of the arts in Ireland, has been allocated €61 million in 2005. This represents a 16% increase on the original 2004 allocation of €52.5 million. Exchequer funding for the Arts Council has increased from €26.41 million in 1997 to €61 million this year, an increase of some 230%. This increased level of funding should allow the council to move forward in a proactive way to support and develop the arts in Ireland.
Under the Arts Act 2003, I arranged for the establishment of a special committee on the traditional arts. The committee was charged with reviewing the structures, supports and policy for traditional arts nationwide, and making recommendations for the future development of the sector. The committee reported to the Arts Council in September 2004 and the council has accepted and endorsed the report. Its recommendations are broad-ranging and include policy, funding and support, archiving, education and performance. This report will be the Arts Council's road map as it develops its own strategy for the arts.
Under the Finance Act 2004, from 1 January 2005, responsibility for certification of section 481 projects was transferred from my Department to the Revenue Commissioners. It continues to be the responsibility of my Department to ensure that it is appropriate for the Revenue Commissioners to issue a certificate for a film, having regard to the categories of film eligible for certification and the contribution a film will make either to the development of the film industry in the State and-or the promotion and expression of Irish culture.
The Irish Film Board is responsible for the promotion of an indigenous film industry in Ireland and for marketing Ireland abroad as a location for film-making. The primary activity of the board is to provide development and production finance for Irish film projects, including feature, documentary and animation. The board also acts in co-operation with other State agencies to improve the marketing, sales and distribution of Irish films and to promote training and development in all areas of film-making. I was very pleased to be in a position to provide effective support for the promotional work of the board in the course of visits to the United States in February of this year and to Cannes earlier this month.
The 2005 Estimate for my Department allocates a total of €14.45 million in respect of the administrative and general expenses — pay and non-pay — of the Irish Film Board and for the provision of development and production loans to the independent film and television production sector. This represents an increase of 22% on the 2004 allocation of €11.845 million.
I appointed a new board under the chairmanship of Mr. James Morris earlier this year. The term of appointment of this board is from 17 January 2005 until 16 January 2009 and I look forward to its successful continuation of the promotional effort so ably managed by their predecessors. I pay tribute to the sterling work of the retiring chief executive officer of the Irish Film Board, Mr. Mark Woods, who will shortly be returning to Australia to take up a position there. I also take the opportunity to compliment the outstanding work done by Mr. Ozzie Kilkenny who served with distinction as chairman of the board.
In 2004, the Government put in place regulations to increase the limit of the horse and greyhound racing fund from €254 million to €550 million to continue the fund for a further four years to 2008. By the end of 2004, Horse Racing Ireland and Bord na gCon received €206.4 million and €51.6 million, respectively, from the fund. Since 2001, income from the fund has been used to underpin wide-ranging benefits for both sectors and has marked a revival of interest in both sports to the benefit of the entire economy. It has not only helped towards providing some top class racing venues and facilities but it has also supported significant employment in both industries and the prize money it has facilitated has been an important boost for both horse and greyhound breeding. In the 2005 Estimate for my Department, the allocation from the horse and greyhound racing fund is €68.350 million with 80%, or €54.68 million, of this going to the horseracing industry and the remaining 20%, almost €13.7 million, to the greyhound industry.
The Arts, Sport and Tourism Vote also includes the separate Vote for the National Gallery of Ireland, Vote 35. The allocation for the National Gallery in 2005 is €9.178 million, of which almost €8 million is to meet general administration costs such as salaries, wages, travel, consultancy services, office supplies, etc. Programme spending accounts for the balance of the allocation. The bulk of this spending is to fund acquisitions and conservation activity by the gallery, for which €1.227 million has been set aside, similar to last year's provision of €1.191 million. I commend the Estimate to the committee and I will be happy to provide any additional information or clarifications members may need.
I thank the Minister for his comprehensive contribution.
I welcome the Minister and his officials. As I have said in the past, it is a very friendly Department and is very accommodating when we contact it for clarification. Last year was a good one for Irish tourism and tourist numbers were up by 3%. However, there are a few underlying trends which give rise for concern. Although the number of visitors was up, the number of bed nights dropped by 1% compared with the 2003 figure. The number of nights spent here also declined to 7.5 nights compared with approximately eight the previous year. Although the number of visitors was up, the overall spend was only marginally up from €4.57 billion to €4.76 billion. That is an increase of only 0.5%.
With costs increasing, profitability is declining. When one looks at the stealth taxes, the cost of labour and so on, the profitability of the industry is declining. Despite much discounting across the industry, which is making it quite attractive for domestic tourists as well, profitability is declining. That is not sustainable in the long-term and perhaps the Minister will refer to that.
There is another worrying trend, that is, the outflow of funds from Ireland. Irish tourists spent more money abroad than foreign tourists spent here. The net outflow of funds was €104 million. Incoming tourists spent €4.76 billion while Irish tourists abroad spent €4.180 billion. It is worrying that Irish tourists are spending more abroad than foreign tourists are spending here resulting in a net outflow of funds from the country.
In regard to regional spread, tourists numbers in Dublin are up. We had a presentation from Dublin Tourism some weeks ago and we complimented it on its achievement. As a rural Deputy, Dublin's achievement is an example to all of us. It has got its act together. It has provided the facilities, including the bed nights and the cultural facilities, which could be improved, and the dynamic. Dublin is one of the most attractive cities in Europe to visit after London and Paris. People worked to create that brand and image. It is up to the rest of the country to compete with Dublin. Unless other regions get the resources for marketing and product development, the infrastructure is improved, including road access, along with the communications network, the regions will fall further behind.
I welcome and recognise the efforts being made by the Minister but the regions are falling further behind. The number of tourists going to the regions is declining, even though the overall number is increasing, and the western seaboard is under much pressure. To date, this year's season throughout the western seaboard is very patchy. I am sure the Minister will have heard that from some of the people in his constituency. I was at a tourism seminar last Monday and that was the feeling. People were quite worried that this year could be quite serious for future sustainability given the slow start in some areas.
I refer to the Shannon Development allocation. There was a strong argument for introducing Fáilte Ireland to north Kerry and for having Kerry marketed with Cork. However, I believe there should have been a transitional period as it is not working this year. Although the decision was made, implementation was too quick and, as a result, Fáilte Ireland has no presence in north Kerry. There should have been a seminar in north Kerry, that is, the area north of Tralee, bringing the various interest groups together, including even the Minister but that did not happen. The few providers of tourism products and the few hoteliers and bed and breakfasts in the north Kerry area believe they are not being represented to the same extent they were by Shannon Development. I am convinced that in time, Fáilte Ireland will impact on north Kerry but there should have been a transitional period of one year. As someone involved in almost every tourism product in north Kerry, I was amazed I was never consulted about that move when consultations were supposed to be taking place. It is not the fault of the Minister but I am at least aware of what has happened regarding tourism in north Kerry because I am involved in every tourism product. I could have given people good advice if I had been asked.
I read the implementation group report and progress is being made regarding access to the State and in other areas. However, the report highlighted the issue of prices. The word is out among tourism operators that Ireland is an expensive country. I received a telephone call from America earlier from a person who had read a report in a newspaper in Chicago that Ireland is an expensive country. In view of the appreciation of the euro against the dollar over the past four years, Ireland is costly for Americans compared with other destinations, although the number of them visiting has increased.
The report also emphasises the change in the British market. Many British people do not know much about our history, heritage and major architectural sites. They are asking why they should visit Ireland because it is raining most of the time, the roads are bad and it is expensive. That was highlighted in the Bord Fáilte attitudes survey, which is mentioned in the report. Cognisance should be taken of that. The only way it can be addressed is in next year's budget. Ireland is the fourth most expensive country in Europe for accommodation after Denmark, Germany and the UK, and it is not competing. For example, people in other countries can claim their expenses when they attend conferences abroad but that cannot be done in Ireland. A strong case was made in this regard to the Department and the Department of Finance this year but it was not accepted.
I welcome the Minister's action on the RTAs. I agree with him RTAs must have an increased role. They must develop and, hopefully, create the energy that will encourage tourists to leave Dublin and visit the regions. The Minister is going the right way about it.
In 1999, €34 million was approved for a national conference centre but six years later none has been built. Progress has been made and, hopefully, a decision will be made on the two tenderers so that the centre will be constructed by 2008. Ireland is losing €50 million and 30,000 visitors a year because of the absence of a national conference centre and that does not include repeat visits from which the State would benefit. A total of 3,000 jobs would also be created.
I refer to the National Concert Hall. A unique opportunity has been presented to the Minister and his Department. UCD is transferring its medical and engineering faculties to Belfield from St. Stephen's Green. This accommodation will be available but it may not be available indefinitely. Somebody else could come in and take it but it is important that it should remain in State ownership. That is why the Minister should ensure negotiations are entered into with UCD immediately to acquire that property so that the National Concert Hall, which is a State body, can provide a facility to match other international centres. The board of the concert hall has ambitious plans and, as the Chairman stated recently, there is an opportunity to create a landmark cultural facility. There is space to create a performance area with a capacity for 2,000 people, to convert the former space into a 1,000 capacity arena and to create a further 400 spaces. The plans are ambitious but realistic. I appeal to the Minister to grasp this opportunity. It is much more clear-cut than the Abbey Theatre scenario, for example. The facilities will be available following the move by UCD. It could be transferred from one State body to another for the common good depending on the outcome of negotiations between UCD and the OPW. A sum of €50 million could create a good facility at Belfield.
I accept national lottery grants, introduced by us when we were in Government in the 1980s, have been effective in providing facilities, as we had envisioned. I am glad they continue to have an impact. How much did the repairs to the National Aquatic Centre cost? This is a major issue but it was an act of nature and I do not wish to blame anyone. I am glad the building has been repaired and the centre is up and running again. I hope the problems will not recur. Has the Minister carried out an audit of the centre? Can he assure the committee no further structural difficulties will occur? Who will pay for the repairs?
If the Minister passes through Limerick, he should visit the University of Limerick boathouse, which is an ambitious scheme. A sum of €4.1 million has been contributed through the capitation fees of students. The university is seeking an additional €1.6 million to build a state-of-the-art facility, which will impact on the community in Limerick. The Minister and his officials should examine this scheme and speak to the people promoting it.
I welcome the impact of the swimming pool programme. The Minister's review should examine the provision of other facilities on swimming pool sites such as gymnasia, as they go hand in hand. Swimming pools are always accompanied by state-of-the-art gymnasia to make them viable. Non-wet facilities should be included in the grant aid package to ensure swimming pools are viable.
All the money has been collected for Ballybunion and, hopefully, the Minister will reply that work can commence there shortly. I thank the Minister for allocating €750,000 to the women in sport initiative. I produced a report for the committee on women in sport, which Deputy Glennon and I launched at Croke Park last October. I am pleased the Minister has responded by making this allocation. I acknowledge the commitment by him and his Department. I hope it will be the first in a major number of contributions which will increase in the years ahead.
With regard to the cultural facilities and the ACCESS programme, an ACCESS II programme is necessary because many of our facilities and products are going stale. There is a major need to upgrade and improve existing facilities.
On Arts Council funding, as €26 million of the €61 million provided is national lottery funding, it is probably not regarded as Exchequer funding. On the film industry, despite the fact that the Minister brought "Lassie" home from America, a great achievement, very few films are currently being made in Ireland. I understand the studios in Ardmore are vacant for the summer. Perhaps film contracts have since been signed. One of the reasons for this is that the investment ceiling for film production is too low. Perhaps the Minister will ask the Minister for Finance to examine this aspect.
I thank the Minister for providing a site for Limerick track. Limerick is probably one of the great centres of the greyhound racing industry in the country. It is great progress that €11 million has been allocated for a new site. I welcome this as it should enhance the industry in the mid-west in the future.
I am sorry, Chairman, for taking so long. You have been very tolerant.
Cuirim fáilte roimh an Aire agus a oifigigh. Nuair a bhí an tAire agus an Teachta Deenihan ag caint, ní dhearna siad tagairt ar an chonspóid i ndáilcheantar an Theachta, the Minister for Community, Rural and Gaeltacht Affairs.
On the attempt by the Minister for Community, Rural and Gaeltacht Affairs to eliminate the name Dingle, would he consider this to be somewhat extreme and not in the interests of tourism in the area?
What has implementation of the Official Languages Act cost the Department to date? Is the amount involved significant?
There is a considerable increase under subheads A.2, A.3, A.4 and A.5. Even though the amounts involved are not excessive, a trend appears to be evident. I would like the Minister to comment on the matter. For instance, the subhead for incidental expenses which provides for expenditure on items such staff training and development, official entertainment, periodicals and other miscellaneous expenses has more than doubled. May we have some background information on why there has been such a substantial increase in subheads A.3 to A.5, albeit from a narrow base?
One of the issues raised by the Minister which concerns those of us who come from areas where tourism is important is the 1% decrease in the number of visitors from the British market, which is not welcome. British tourists are known to spend substantial sums when they visit my area. Given that it follows a 3% increase the previous year, it is not a dramatic downturn. However, I am sure all of us, the Minister included, would prefer if there was a positive trend in the opposite direction.
I have a particular interest in the greyhound industry. While a substantial sum is being invested and progress continues to be made at various levels of the industry, is there solid information on the situation of greyhound breeders? Is there an increase in the price of pups, racing greyhounds and so on?
The Minister said the number employed in the industry had increased. This is welcome. Are there hard figures available because sometimes the greyhound industry is not considered important in terms of employment? I recall that in the early 1990s a survey carried out by the University of Limerick established that 10,000 people derived part of their income from the industry. I also recollect that the average amount involved was approximately £2,600.
I am pleased the Minister is revisiting the heritage fund. This must be done because time has elapsed and the amount provided for in the original legislation has reached its limit. There is an obvious difficulty in allocating money through the fund. If people believe there is a lot of money available from the State, it can have an effect on price. As this is an important fund in adding to our national art and heritage collections, I hope the Minister will be able to persuade the Minister for Finance to be generous in how he approaches the matter as the money needed to acquire a considerable work of art at a given time can be substantial. However, I take it the Minister would have other means of visiting the matter if substantial moneys were involved at a particular time.
It gives me no pleasure to raise the next issue. There has been negative publicity in regard to Cork being city of culture. The Minister stated funding to the tune of €7.85 million would be available for the project. Will he inform us how it is developing and whether his statement that no more than €7.85 million will be made available and that the issue will not be revisited is absolute?
I welcome the fact that the Minister is considering positively the position of the Theatre Royal in Wexford as the Wexford Opera Festival is an important cultural event. However, the Theatre Royal in Waterford, particularly in the context of the Waterford International Festival of Light Opera, needs to be examined for a number of reasons. Will the Minister advice me on how the board of the theatre, if it wishes to acquire additional moneys, can make an application to his Department and what moneys are available in the current year for such applications?
I welcome the fact that towards the end of the year the Arts Council will be producing a policy on the traditional arts. As the matter has given rise to tensions from time to time, I hope it can be resolved in a way that will allow the traditional arts to grow. The process does not end on a particular day. It is an ongoing exercise, of which River Dance is an example.
I hope that when the policy is decided, it will take into full consideration and welcome the fact that traditional arts are an ongoing business.
With regard to my constituency and tourism trade events, at the beginning of July we have the tall ships in Waterford and it is estimated that this will bring €20 million into the local economy, although some people feel this may be an underestimate. Apart from this income, this event will bring significant exposure to the area the impact of which is something at which we can only guess. I welcome the tall ships event as it will do considerable good in my area.
I am glad the Minister is going ahead with the sporting excellence campus at Abbottstown. If we are to bring high-level athletes on stream, it is vital that these facilities are provided. Although substantial money is involved, the sooner the facilities are provided the better. We cannot lament the fact that we do not win the number of medals we desire at the Olympics or world or European championships, yet not be prepared to provide the facilities athletes require. Quite often in the past our top athletes had to go overseas to avail of the training and coaching required to help them progress as competitors at the highest levels internationally. I welcome this commitment.
I am glad that at long last something definite is happening with regard to the provision of a stadium more adequate to the modern needs of soccer and rugby. This committee should commend the decision of the GAA with regard to Croke Park. I hope this decision will result in Ireland not having to transfer any of its major sporting fixtures overseas, particularly to Britain, during the construction period. Indications are good that this will not happen. There are times when we forget what a great boon it is to the economy to have international events such as soccer and rugby matches which make a significant and welcome contribution to the economy in Dublin.
The Minister painted a progressive picture where funding is provided and strategies are developed to keep in tune with a rapidly changing market, particularly in the area of tourism. One of the worrying aspects of what is happening in the tourism area is that bed and breakfast businesses and guesthouses do not seem to be making as much progress as the hotel sector. As we know, many individuals have made substantial investments in their properties to provide a quality product. However, because of changing attitudes and tastes their businesses are not as popular as before.
I remember meeting two councillors from the Rhondda Valley in Wales a number of years ago. At one time that valley was the largest anthracite producing area in the world. Significant sums of money were spent in the area to develop alternative employment and tourism. One of the major problems at the time was the difficulty of persuading the Welsh housewife to open up her home for bed and breakfast business. Questions were asked as to how we were so successful at that business and what they could learn from us.
The Minister's important portfolio takes in the arts, sport and tourism and covers an area that makes a significant contribution economically, culturally and sportswise and to our quality of life. Progress is being made and I wish the Minister and his Department continuing success across the range of areas in which they are involved.
I will share my time with Deputy Kelly. I welcome the Minister and his officials. It is great to see their positive contribution across the range of activities of the Department. I will make a few brief comments.
I note the Minister's comment on additional air access capacity this summer, with a 40% increase in peak summer capacity from mainland Europe. That is a staggering increase and hopefully it will be utilised to the full and the tourism industry throughout the country, and not just Dublin, will benefit.
As a Dublin Deputy I must comment on the proposal in the PwC report on the Dublin Tourism Authority. I noted Deputy Deenihan's comments on the high quality of the performance of that authority over the past number of years. My view is that unless something is broken, it does not require fixing. It is up to other regions to learn from the performance of the Dublin authority. They must take the positives from it and adapt their operations accordingly. This is particularly relevant with regard to the long-awaited national conference centre. I congratulate the Minister and his officials on the progress made on this thorny issue. I welcome the fact that it is finally beginning to gather momentum and I wish the project well.
My colleagues do not always like to hear reference made to and yardsticks drawn between 1997 and current figures. They will be pleased that I am not going to take that road other than to say that the benefits that have accrued from the significant and fundamental philosophical shift since 1997 with regard to the funding of sports facilities are to be seen everywhere around the country. I was particularly struck by the reference in the Minister's contribution that there is no town or village in the country that has not had some significant funding in proportion to its size from the sports capital fund. That fund has been a remarkable success which, hopefully, will continue.
In my county of Fingal we have the largest number of new house starts in the country. In excess of 10% of the annual national new housing stock is being constructed in Fingal. This will release significant funding under the planning levies scheme for community and recreational sporting facilities. The contribution under the sports capital schemes has become even more important in that area and significant funding is now available for these rapidly-developing areas which by definition are cash-strapped in that the general household profile is of double income, no family and very little spare capital to put into any kind of local facilities. The contribution of the Department is particularly appreciated.
I commend the Minister on the additional funding for hurling and camogie. As Deputy Deenihan said — I acknowledge his particular interest in women in sport — it is a subject in which this committee has taken a real interest. The allocation of money for camogie and a further €750,000 for programmes aimed at increasing women's participation in sport is to be welcomed.
As a Dubliner I welcome the €1 million to support initiatives aimed at the development of Gaelic games in Dublin. It might take a bit more than €1 million as regards hurling but the funding and the principle and generosity displayed is very welcome.
I refer to Deputy O'Shea's contribution. I do not differ with him but I believe it is worth placing on the record what I consider to be the particularly high and unrealistic expectations we entertain for our international sports people. It is a particularly valid comment in the context of the Olympic year. For years we have punched way above our weight in international sport. As more countries compete in international sport, it is a simple fact of life that it becomes more difficult for us to compete.
From the point of view of sport for all and mass participation in sport we should not judge our international performers on whether or not they win gold, silver or bronze medals at Olympic or world championship level. We are far better off having outstanding role models such as Sonia O'Sullivan who has not been the luckiest in terms of medal winning although she has been the most successful Irish sportswoman of all time. She has contributed far more to Irish sport as a role model rather than as one with medals hanging around her neck. This is the way forward for us. It is certainly the way forward to encourage mass participation in sport and mass female participation in sport.
I again congratulate the Minister on his progress this year, particularly in getting Sports Campus Ireland and the Lansdowne Road project off the ground, finally. I wish him similar success with the concert hall and the Abbey Theatre.
I welcome the Minister and his officials to the committee. It is evident they are doing a good job with success after success. He is an ideal man for the position in the Department of Arts, Sport and Tourism. His record speaks for itself.
Ireland is the best country in the world for a holiday——
Better than Argentina.
Yes, better than Argentina or Chile, definitely. Let there be no doubt about it.
We will have to go there the next time.
I believe Deputy Deenihan was there before us.
Unfortunately I was never there.
What was the name of the country the Deputy visited?
It was Australia and I paid my own way, unfortunately, to play rugby. I paid my own way, unlike Deputy Kelly.
We will not go into the details of who paid for what but audited accounts will be available at the end of the year, for anyone who wants to look at them.
The Deputy should address the subject of the meeting.
I reiterate Ireland is the best country in the world for a holiday. In my experience, every tourist who visits Ireland always comes back and I have heard that said by many people. The positive and good message should be publicised. The bed and breakfast sector should be supported as well as the pubs, bars, restaurants and everybody involved in the tourism industry. It is a true message that one will not have a better holiday anywhere else in the world than in Ireland.
I say this following my recent travels and even though I was delighted to travel abroad and visit other countries and meet all those great Irish people abroad. It was wonderful to see the great contribution made by the Irish to the world. I was not the first person to travel abroad from Ireland; it has been going on for hundreds of years and I hope it continues for another couple of hundred years.
I welcome the Estimate for the Department and I wish continued success to the Minister. The people of Ireland are quite happy with the way the Department of Arts, Sport and Tourism is being run. It has been of great benefit to the majority of people in this country. I exhort the Minister to keep up the good work.
That means five more lottery grants for Longford.
(Interruptions).
If the Deputies wish to have an argument or discussion they can do so outside the room.
I wish to ask some questions. The Minister said 44 projects were approved under the product development scheme. Will the locations of those 44 projects be available in the near future as we will be looking for a regional spread?
On the sponsoring of a region, is it possible to provide information on who sponsors the various regions in order to obtain a point or contact or a country of contact, whichever is the more appropriate?
On a recent visit to Japan, we attended the Tourism Ireland launch of its brochure for marketing in Japan. I have a query about how Ireland is marketed abroad. A map of Ireland showed Londonderry and not Derry. Should not both names be shown on a map rather than one or the other? For instance, Derry City Airport is the name of the airport and many people know the city by one or the other name. I question the decision to have only one version of the name of the city on a map. This can be a marketing difficulty when one city has two names.
A delegation from the regional tourism authorities met with the committee on another occasion. In their opinion while there is supposedly more money being expended on marketing of the regional tourism authorities areas, they had no discretion in the distribution of the funds. They argued the moneys for marketing the regions should be directed through the regional tourism authorities.
I thank the Minister for the marketing moneys recently allocated and the interest taken by Fáilte Ireland in my own area. Is there any opportunity under the festival and cultural events fund for a lotto-type grant becoming available in a scheme of a maximum of €5,000 or €10,000, for community musical bands? The musicians of Ireland such as Altan, U2 and Westlife have given Ireland an international recognition, as much as Guinness. However, the money is not being invested at the earliest stage in order to create the artist. Community bands exist on virtually nothing. I do not know of a scheme whereby people can avail of a few thousand euro to buy new instruments or music or perhaps contribute to travel costs for a band. In that context, I believe Cork 2005 would be a great opportunity to link what is happening around the country into the events in Cork and turn it into a national event. I am not sure that people throughout the country have seen the impact of the cultural designation that has been given to Ireland in 2005. I invite the Minister to comment on that issue.
I thank the Minister for the swimming pool moneys he has disbursed, some of which were allocated to places like Buncrana in my constituency. I commend the successful development of greyhound and horse racing facilities, such as the greyhound racing stadium in Lifford. Is it proposed to develop a horse racing track in County Donegal at some point?
I would like to speak about the arts. I congratulate Ms Liz Doherty from Buncrana, who has been appointed as a traditional arts officer in the Arts Council. I know she will be good in her new role. I am glad that the Arts Council is starting to work with the Department of Education and Science on best practice guidelines. The Minister mentioned that the traditional arts committee has produced a report, but he did not indicate when the sub-committee on arts in education will be established. I wonder if anything has been formalised in that regard.
I am interested in the concept of themed holidays. The Minister referred to a Canadian project that will focus on the links between Canada and Ireland. Thomas D'Arcy McGee was one of the main characters involved in the founding of Canada. I wonder whether we should place a greater emphasis on themed holidays. I refer to the Canadian experience with Thomas D'Arcy McGee, for example. Should we focus on certain projects in certain years? We will all be talking about Admiral Brown and our links with Argentina in 2007. We will be concerned with the Celtic projects and the tall ships in 2006. I was recently told by an editor of a New York-based magazine that 12 tour operators in that city are exclusively selling food holidays. The magazine will publish an edition devoted specifically to Ireland next March. The man in question was in Ireland because the photographs for that edition were being taken. I wonder if there are opportunities for themed holidays.
I would like to conclude by speaking about the national conference centre. I am glad the project is moving on, but I wonder whether the date by which it is expected that the contract will be awarded has been put back. Can we encourage people to start selling their products in the confident expectation that the centre will be open by 2008?
I will start by dealing with some of the points raised by Deputy Deenihan, such as competitiveness. It is encouraging that the 2004 visitor attitudes survey, in contrast with recent trends, found that there had not been any deterioration, compared with the previous year, in the level of satisfaction among visitors with the cost of access, accommodation and tourism-specific services such as car hire. The second report of the tourism action plan implementation group, which was published a few weeks ago, highlighted a number of developments which are designed to meet the ongoing competitiveness challenge. It is important to draw the attention of members to such developments.
There were no increases in excise duties or VAT rates in the budget of 2005. The annualised rate of inflation dropped to 2.1% in March 2005. There have been some reductions in insurance premia as a consequence of the increased competition in that market and the new legal claims environment.
The tourism industry is continuing to provide hundreds of special travel offers to overseas visitors on Tourism Ireland's website. Fáilte Ireland has launched a new website, where special offers from the industry are packaged and offered to domestic and Northern Ireland customers. Over 1,100 value breaks are currently being offered on the website. I strongly urge members and the public to visit the website. Some 500 members of the Irish Hotels Federation are actively participating in its special offers section. The winter value breaks programme of the Irish Tour Operators Association offers a "go as you please" programme that features over 100 hotels and four car rental companies. The package offers reductions of up to 40% on normal prices.
The Restaurants Association of Ireland and the Irish Hospitality Alliance relaunched the value for money initiative in August 2004, with the support of Fáilte Ireland. The pricing levels offered under the initiative for 2004-05 are more flexible. The initiative now includes a value menu for wine, which is supported by the wine trade. Over 500,000 copies of the brochure that sets out the value on offer under the initiative have been printed.
In any enterprise, increasing productivity is one of the keys to improving competitiveness. Fáilte Ireland recently launched three new initiatives specifically designed to focus on helping enterprises to address the competitiveness challenge. Fáilte Ireland has also introduced two cost management training initiatives for the sector. It has also developed a comprehensive human resource development strategy for the industry. Fifty businesses have achieved Ireland's best award for top standards in service excellence. Fáilte Ireland recently launched the optimus programme, which focuses on developing business excellence and quality within tourism enterprises.
Deputy Deenihan asked about the decision to merge north Kerry with County Cork and the rest of County Kerry for tourism marketing purposes. I engaged in a wide consultation process, at industrial and political level, before I agreed to transfer responsibility for tourism marketing in north Kerry from Shannon Development to Cork Kerry Tourism. It is unfortunate that the tourism officer who was appointed in north Kerry left that post after a short period of time. Tourism marketing in north Kerry is currently being handled personally by the regional tourism manager, as well as by the tourism office in Killarney. I understand that arrangements are being made to appoint a new tourism officer for north Kerry. Interviews are due to take place in the next week or so. I understand that a number of very good candidates are in the field.
I was also asked about the regional spread of tourism. I am reluctant to discuss details of tourism performance in individual regions, given that I have overall national responsibilities. However, I do not doubt that some regions are performing better than others, for many reasons. It is equally valid to state that tourism performance varies within regions. Urban areas and easily accessed locations are doing better than other places.
Increasing the regional spread of tourism is an important policy objective. Since I took office, I have tried to put in place many programmes and actions to make progress in this regard. The Department has enhanced the domestic tourism campaign, which has a budget of €3.3 million this year, and developed a new advertising programme. It is heavily promoting the regions in the national media and on a new website. The highest ever level of funding has been allocated to the regional tourism authorities. Some €6.7 million was given to the authorities in 2004 and there has been a substantial increase this year. The Department has used the tourism product development scheme to ensure funding is allocated to areas outside the conventional or more popular tourism resorts. The festival and cultural events programme is spread throughout the country. The Department has supported the development of new access routes into the regional airports.
One cannot force people to visit places which they do not want to visit. The trend towards shorter holidays means that regional centres have a responsibility to develop and market certain tourism products as attractive propositions. Some of the issues I have mentioned, such as the development of infrastructure, are also important. The tourism implementation group has stressed for some time that broad infrastructural issues, such as the maintenance of access roads and the establishment of environmental services, are really important.
Deputy O'Shea spoke about the decision to refer to the town of Dingle as "An Daingean" on road signage. There is an element of confusion about the announcement that was made by my colleague, the Minister for Community, Rural and Gaeltacht Affairs. All place names in Gaeltacht areas have been in the Irish language since regulations were introduced in 1970, when the former Deputy, Mr. Bobby Molloy, was Minister. That has not been the case outside Gaeltacht areas, however. The only change made in this regard by the Minister, Deputy Ó Cuív, in recent times has been made in the interests of consistency. He has decided that road signage outside Gaeltacht areas should be compatible with road signage within Gaeltacht areas. The signpost at Laune Bridge in Killorglin will not refer to "Dingle", but to "An Daingean", which is the term used within the Gaeltacht to refer to the town.
The Minister for Community, Rural and Gaeltacht Affairs has not indicated to me that the Department of Arts, Sport and Tourism should change its policy on advertising any area within the Gaeltacht. He cannot do so and I do not think he would do so. In fact, he has studiously avoided doing so. The Department has decided that its tourism agencies will advertise Gaeltacht areas by using the English and Irish versions of their placenames. A tourist who arrives at Laune Bridge in Killorglin and sees a signpost for "An Daingean" will see both "An Daingean" and "Dingle" if he checks his map. It does not take a great deal of imagination to recognise that An Daingean is Dingle and Dingle is An Daingean.
Will the name "An Daingean" appear on maps?
Yes. Both names will appear on maps. Someone asked me what would happen if a person had no map. While it is very unwise to travel in a motorcar around a strange country without a map, one's best approach in such circumstances is to ask somebody for directions. If one cannot do that, one should hark back to the advertisements one has heard about Dingle-Daingean, Daingean-Dingle. That is how Tourism Ireland will operate.
The change relates to road signage only. The most interesting matter in the context of opposition to the change are the results of one of the most comprehensive marketing surveys ever undertaken in Britain, which we carried out last year. As members will know, there was a decrease of 1% in the number of visitors from Britain last year, which worried us given its position as our most important market. We discovered the major militating factor against Ireland in some British minds to be that we are not as different as we used to be. One must not only be different but emphasise that difference. We are different in our culture and in our music, dance and storytelling within that culture. We have different monuments and history and, most crucially of all, in certain parts of the country we are different in our language. One must emphasise the difference and accentuate the positive. If one negatives the difference, one will unquestionably accentuate the negative.
The argument in favour of the change the Minister for Community, Rural and Gaeltacht Affairs, Deputy Ó Cuív, has implemented is irrefutable and impregnable. I say with all due respect to people in Gaeltachtaí who oppose the move that they are, in fact, out of step with the lessons of international experience. On the international stage, people want to see what is different about Ireland and what is most different about it is its language. Instead of militating against the move, my strong advice is that people should celebrate their difference with the greatest of abandon. For many years, people in the Gaeltacht loved and lived the language when nobody else would.
Unfortunately, I hear less of it.
I am very glad Deputy Deenihan raised the matter of Limerick greyhound stadium. I met earlier today with the chairman, chief executive and finance officer of Bord na gCon and it was confirmed to me that Limerick stadium will constitute the board's main development project. A site has been purchased and what is a significant project for the city will go ahead. I am very pleased by the initiative as Limerick has for many years had a dilapidated stadium which I attended on many occasions over more years and more losses than I care to remember.
Deputy Deenihan also raised the matter of funding of €500,000 for the UL boathouse. I will be happy to consider an application for funding for the boathouse under the sports capital programme.
As Deputy Deenihan said, dry facilities are crucial to the success of swimming pools and we have provided funding for such facilities in a number of cases. The issue will be considered in the expenditure review of the swimming pool programme which is under way and due for completion later this year. Tender documentation was received in my Department on 4 May in connection with Ballybunion swimming pool, which the Deputy also raised, and is under consideration. Kerry County Council has been asked to clarify its satisfaction with the proposed funding package.
In the 2005 Estimate, €750,000 was provided for women in sport and is being administered by the Irish Sports Council which has formulated proposals for its expenditure mainly through the governing bodies of sports and the local sports partnership. Repairs to the National Aquatic Centre were completed on 20 May, on which date the facility reopened to the public. An independent report on the damage to the centre was commissioned by the OPW at the request of my Department and in consultation with Campus Stadium Ireland Development Limited. The report was prepared by Kavanagh, Mansfield and Partners, consulting structural and civil engineers. As the report considers legal, contractual and financial issues , it must remain confidential at this time. The cost of the repairs is a matter for the contractor and the insurers. The taxpayer is not liable.
Total expenditure for Cork city of culture was €7.85 million of a total budget of €15.5 million which is available to the city in 2005. While it has been suggested that the funding compares very poorly with provision for other cities of culture, care must be taken in making comparisons of this kind. Many of the previous cities of culture had much larger populations than Cork. When size of population is considered, one finds that Cork's provision compares fairly well. The average per capita provision for the cities which enjoyed the distinction of being cities of culture in 2000 was lower than, I would say, the per capita provision for Cork on this occasion. The year will be a great success and I take the opportunity to congratulate again all whose professional involvement will achieve that success for Cork.
While the Department has no day-to-day involvement in the running of the 2005 city of culture programme, I understand throughput at Cork Airport in the first quarter of the year was 25% greater than in the same period in 2004. Attendance at cultural events over the first three months has increased by 30%. While I am aware of local criticisms and complaints, a consultancy survey on cities of culture revealed that almost every such city has experienced similar problems and internal disagreements. Cork is not unique. I hope those making criticisms make as valuable a contribution to the 2005 programme in Cork as those who engaged so professionally in making the year a success.
It is true that we face difficulties in the context of section 481 in attracting inward film production. The current dollar-euro exchange rate makes it far more difficult than before to attract productions while competition has increased from new EU member states with far lower cost structures than Ireland. I accept Deputy Deenihan's comments about the cap on section 481, especially in the context of larger budget productions. I registered my concern about the issue in Cannes recently and have already raised it with the Minister for Finance and will do so again in due course. We have raised the cap significantly of late to in excess of €15 million and extended its application to 2008. If we are to attract larger budget films in the face of current levels of competition, however, we will have to revisit the provisions of section 481.
I announced at Cannes that Ireland was in the process of appointing a film commissioner in Los Angeles who will liaise with major production companies and the Irish Film Board to attract significant and smaller scale productions. I found on a visit to production companies in LA that the lack of a person on the ground has militated against Ireland. We will, therefore, interface to a greater extent with the industry at the location in which one finds most major production companies.
Deputy O'Shea asked about subhead A3 on staff training and development. The 4% referred to represents approximately €765,000. Provision under the subhead covers also the cost of training which should be provided at a rate in the region of 4% of pay under Sustaining Progress. The percentage set out calls for an approximate requirement of €1 million under the subhead. The Deputy asked also about capital funding, all of which has been allocated. It is hoped that we can negotiate a new access programme soon. Applications will be invited by public advertisement if we succeed. The access programme relates, of course, to theatres and exhibition areas.
Deputy O'Shea asked for details on the number of people employed in the greyhound industry. There are 600 direct, full-time jobs and 10,000 indirect, part-time jobs. It is anticipated that 1.4 million patrons, including me, will attend greyhound racing events in 2005.
Deputy Deenihan referred to the tourism figures for 2004. He is correct about the increase of 0.5% in tourism revenue but this may be due in part to the cost of access and accommodation. This is good because it means we are becoming more competitive and that the warnings are being heeded by the industry. If it was taking higher margins, the revenue figure would be higher. This confirms the visitor attitude survey conducted in 2004 which indicated satisfaction ratings regarding competitiveness had not decreased, the first time for a number of years that this was the case.
There is no doubt that margins and profitability are tighter, which means tourism enterprises will have to improve the range of areas in which they offer value for money. In recognition of the fact that margins and profitability will be lower perhaps it will be necessary to have even more outlets if one is to maintain long-term sustainability. Productivity, HR practices and cost control measures must also be examined. Fáilte Ireland has introduced a range of programmes and initiatives to help those involved in the industry in these areas.
The increase in outward tourism is to be expected, given our recent affluence and does not concern me unduly. The total number of holidays being taken by Irish people is increasing, as is domestic tourism which was up 7% in 2004. Revenue was up 8.5%.
Deputy Glennon referred to the regional structures, on which I have outlined my views. Before taking final decisions on the PricewaterhouseCoopers consultancy, I wish to await the outcome of further talks by a three person team led by Mr. John Travers who has been talking to key interests about the position in Dublin. Any suggestion, rumour, misrepresentation or innuendo to the effect that Dublin Tourism will be abolished can be completely ignored. It is absolute nonsense. There was never any intention to abolish Dublin Tourism.
It is important, when talking about the regions, be it Dublin or anywhere else, that we recognise that the primary promoter of Ireland on the international stage in terms of visitors coming here is not any of the regional tourism authorities — that includes Dublin — but Tourism Ireland followed by Fáilte Ireland. Let us not be under the illusion that regional tourism authorities are responsible for bringing in visitors. That is not in accordance with reality.
The group to which I referred has met and includes the CEO and chairman of Dublin Tourism, the city manager, the council of Dublin Tourism, the Dublin branch of the Irish Hotels Federation and others. It is due to report back to Fáilte Ireland next week. After that, the issue will be considered again by the board of Fáilte Ireland which will report to me on the outcome of its deliberations.
There is much to commend in the PwC report about putting a better shape on structures for the delivery of tourism policy which is supported by the majority of the regional tourism authorities. What we need in the final analysis is to be in a position to have the very best organisational structures to deliver an efficient and effective service to tourists and the trade at local level. That is the objective of the exercise. It is true that services are available at a national level which are not available at a regional level and this must change. That would mean a greater degree of integration and service on the ground. In the final analysis it would be welcomed by the regional tourism authorities, including Dublin.
I am aware of concerns expressed about the future of Dublin Tourism. Those involved in the industry in Dublin are being given an opportunity to express their views which will be taken into account. I have no intention of riding roughshod over anybody but, equally, we cannot have people consider there are fiefdoms in which feudal lords have control. In the final analysis it must tie in with overall tourism policy. The only way in which I want to beat Dublin is in this year's all-Ireland championship. We have no interest in defeating Dublin in anything else.
They will not be there.
With regard to the chairperson's comments, first, in regard to the tourism product development scheme, Donegal did extremely well, as always. The Glencolumcille Adventure Centre, the Shandon Hotel, the Uíbh Eachach Diving Centre, the Donegal Adventure Centre, the Gartan Outdoor Education Centre and the Lakeside Centre development have all been beneficiaries under the scheme. The funding received by the county has been substantial.
The conference centre is of immense importance. It is down to the last two tenders, the third one having withdrawn. An evaluation process and assessment are taking place. The timescale has been extended a little. It will be the end of July at least before we are finally in a position to identify a provisional tenderer. The provisional tender would have to go before the Government for approval. That is the way the process has been devised. The Government will then make a decision.
I am conscious of the fact that the conference centre in Dublin saga has been ongoing for a couple of decades and that people are worn out. We have advanced the matter in recent years more expeditiously than ever before, if I say so myself, as nobody else will. We aim to reach a decision this year. The estimated net worth in terms of revenue to Dublin would be in the order of €40 million to €60 million and perhaps more per annum. A 2,000 seater dedicated centre would be of enormous benefit, especially because of the fluctuating nature of international conference business. Such conferences tend to move from city to city and look for a new city every year. They have exhausted all the cities in Europe at this stage and Dublin would be a new attraction in terms of a dedicated centre for every kind of conference. Who knows, perhaps on a future trip to Argentina, Deputy Kelly might be able to attract a conference or two.
He will have to make another trip to do that.
I have just one question about the arts in education sub-committee. Has the Minister taken any decision on the matter?
The Arts Council announced today that from next year on it will have a dedicated amount for the traditional arts and that there will be a fourfold next year of €3 million. This will continue in accord with the traditional arts policy adopted by the council in which there will be a dedicated traditional arts officer. Once this has been officially launched, it is intended to consider the formulation of a new committee under the Arts Act to deal with other issues.
Will the Minister refer to the Abbey Theatre?
That was the subject of a reasonable response.
Just very briefly.
I met the chairperson of the Arts Council today and we had a comprehensive discussion on the Abbey Theatre. Change is inevitable and will encompass governance. The question of funding will have to be discussed in far greater detail. I have indicated that the Arts Council is in a position to be discretionary in the funding it gives to the Abbey Theatre, whereas if funding was to come directly under the control of the Department, a fixed amount would be provided which would allow no discretion in the event of difficulties being experienced during the year. The Arts Council would favour continuing with its discretionary approach. There is an arm's length principle in funding the arts, something of which I am conscious.
I was not happy with the position at the Abbey Theatre where the deficit increased by €1 million due to human error. This cannot be countenanced in a national institution in the future. While I was annoyed at the time, I recognise there is a need for artists to be independent of the Government and I am now inclined towards the argument that discretionary funding by the Arts Council might be best. Someone from the Department of Arts, Sport and Tourism could sit on the finance committee of the new structure to monitor finances in the future. It is not a question of misappropriation or distrust but I have a responsibility to the Dáil, as evidenced by Deputy Deenihan asking me this question. There will further questions in the future unless the matter is resolved to everyone's satisfaction.