I thank the select committee for giving me this opportunity to elaborate on the details of the Supplementary Estimate for my Department's Vote for 2005.
The Supplementary Estimate being sought comprises five main elements that include: an additional allocation of €1.5 million to subhead B.1, which provides funding for Fáilte Ireland; €1.202 million for subhead D.3, which provides State support for the National Concert Hall, the Chester Beatty Library and the Irish Museum of Modern Art; an additional €7.785 million for subhead D.5, which, in the main, provides capital grants for arts and culture facilities throughout the country under the ACCESS programme; €5.233 million for subhead D.9, which provides for Exchequer funding for the Arts Council; and €1.5 million for subhead E.2, through which funding is provided for the Irish Film Board for the provision of development and production loans for the film and television production sector. With the exception of subhead D.5, all of these subheads are grant-in-aid in nature and the additional funding requires the specific approval of the Oireachtas.
Savings, from which the proposals before the committee are to be funded, have arisen on the Department's Vote during the year. Savings arose on a number of capital allocations in the Department's 2005 Estimate. These programmes and projects are demand driven, with funds only being released on foot of matured liabilities being incurred by project promoters. While significant progress is being made in the delivery of sports facilities across the country with financial support from these programmes, nevertheless there is some delay at project level in submitting the relevant documentation to the Department. Therefore, a slowdown in the rate of drawdown on several projects has led to the savings which have now arisen.
The underspend in the capital subheads is approximately €33 million and I will be seeking to carry forward €16.5 million of these capital savings into 2006 in accordance with the conditions of the multi-annual capital investment framework agreed with the Department of Finance. To maintain momentum in other areas of the Department's activities, a significant proportion of these savings, together with additional receipts from the EU that were received by way of appropriations-in-aid, will be utilised in the current financial year.
Under subhead C.2, which makes provision for grants for the provision and renovation of swimming pools, savings of €14.472 million are being reallocated. The original provision was based on projects at contract document and tender stages moving at a reasonable pace to construction. The drawdown of grant aid by local authorities this year has been slower than expected. In addition, a budget allocation of €4 million to St. Michael's House for the development of a swimming pool for people with special needs was provided in the subhead but is not being drawn down this year. While actual drawdown for 2005 has been slower than at first anticipated, there are still a record eight projects under construction, eight at tender stage and 13 at contract document stage. In the final analysis, the pace of drawdown is entirely dependent on the speed at which local authorities proceed with their projects following the approval of the tender. However, I am confident of a significant pick-up in 2006.
Additional appropriations-in-aid of some €2.233 million arise on the Vote this year in respect of refunds from the EU regarding operational programmes managed by the Department under the last Community Support Framework. It can be difficult to predict when EU refunds will be released by Brussels. It was anticipated that only €2.4 million would be received in 2005. In the event, however, some €4.633 million was transferred.
Subhead D.7 provides funding for Culture Ireland, the new non-statutory body charged with supporting Irish arts in an international context. Savings have arisen because Culture Ireland did not hold its first meeting until March 2006 and a number of those granted financial assistance are not in a position to draw down the relevant funds before year's end. Savings of €150,000 arise on the subhead.
I propose an additional allocation of €1.5 million to Fáilte Ireland under subhead B.1. Of this amount, €1 million is for the purposes of further reconfiguring Fáilte Ireland's Amiens Street office as part of a relocation programme aimed at accommodating all Fáilte Ireland staff in a single location. It is a priority in terms of a cohesive corporate strategy that all of Fáilte Ireland staff currently spread over three locations should be accommodated in one premises in the interest of financial and operational efficiency. It is expected that the cost involved will be offset over time by savings resulting from the vacating of the Pembroke Row offices and the eventual disposal of the Baggot Street bridge premises. The balance of €500,000 is intended to facilitate the replacement and upgrading of IT infrastructure, including an ongoing planned PC refreshment, a major software update and the replacement of IT servers.
I propose the allocation of an additional €1.202 million to subhead D.3, through which my Department provides support for the Irish Museum of Modern Art, the Chester Beatty Library and the National Concert Hall. Of this amount, some €462,000 will be current funding with the remaining €740,000 by way of capital funding. Of the €462,000 current expenditure, I propose to provide €275,000 for the Irish Museum of Modem Art, €112,000 for the National Concert Hall and €75,000 for the Chester Beatty Library. The additional funding will recompense the Irish Museum of Modern Art for providing free of charge banqueting facilities to Departments for various functions throughout 2005, facilitate a security upgrade and enable the museum to complete its 2005 marketing programme. The proposed funding for the National Concert Hall will, in the main, enable that institution to carry out a robust December marketing campaign. I also propose to provide funding for the Dürer exhibition currently under way in the Chester Beatty Library.
I propose to provide an additional €255,000 for the Irish Museum of Modern Art, €310,000 for the Chester Beatty Library and €175,000 for the National Concert Hall. The provision of additional capital funding will enable these institutions to update equipment and lighting, refurbish musical instruments and replace furniture and furnishings.
The capital element of Subhead D.5 provides for my Department's capital investment in the arts, primarily through the arts and culture capital enhancement support scheme or ACCESS programme. This scheme has transformed the level of access to arts and cultural activities for a great many people in all parts of the State. The 2001-04 programme provided grants of more than €45 million for the development of 44 arts and cultural facilities around the country.
Since becoming Minister for Arts, Sport and Tourism in 2002, I have repeatedly said the provision of adequate facilities is a key element in making the arts something which everyone throughout the country can enjoy and participate in. The rate of progress on existing ACCESS projects has increased considerably in the past 12 to 18 months, which has led to a demand for funding this year well in excess of expectations. Accordingly, an additional €4.109 million is now required to meet the increased demand in 2005 under the scheme. A number of projects, including the Liberty Corner in Dublin, the Courthouse arts centre in Carrick-on-Shannon, Thurles civic centre, Navan arts centre, Galway Civic Museum, Daghdha in Limerick and the Castleblayney arts centre have either been completed this year or are nearing completion.
In addition to the increased rate of drawdown outlined, I propose to allocate a number of additional grants to boost the development of arts and cultural facilities around the country. These grants, totalling €2.676 million, will make a critical difference to a number of key facilities and to the services they can offer to their patrons and clients. These projects are located in Tipperary, Wexford, Limerick, Kerry, Waterford, Cork, and Dublin.
I am also proposing to provide €500,000 from this subhead to the Abbey Theatre to meet the costs of urgent refurbishment works which will include repairs to the roof and replacement of old and obsolete workshop equipment, lighting equipment and sewerage pump, along with upgrades to sound equipment. In addition to ensuring that the theatre continues to stage high quality performances, these works will also enable improvements in the area of health and safety.
The Foynes flying boat museum is currently undergoing major redevelopment and upgrading for which my Department has provided €1 million in funding. This development will be completed shortly. The programme of work envisaged the inclusion of a model of the cabins used in flying boats. As a result of the redevelopment, an opportunity has arisen for the museum to replace these proposed models with a full scale, walk-through replica of an actual Boeing B314 flying boat in all its glory for which I am proposing the allocation of an additional €500,000 through subhead D.5.
The Foynes museum has received substantial capital aid from the State in recent years and has become a significant cultural facility in the south west with increasing visitor numbers. The increased usage of Shannon Airport by incoming passenger traffic from continental Europe and the renewed usage of Foynes port by the cruise line industry have created the possibility of the full exploitation of the redeveloped Foynes flying boat museum as a tourism venue.
I propose to allocate an extra €5.233 million for the Arts Council this year under subhead D.9, of which €4.233 million will go directly to the Abbey Theatre to clear existing deficits and fund other costs arising from the current change process at the theatre. The Abbey has had to contend with serious challenges in recent times but new structures, new corporate governance and new management have now been put in place which will allow the theatre to move forward. The substantial funding I propose will put the Abbey on a secure financial footing and will allow the incoming board to face the future with confidence. The remaining €1 million will be directed towards the Arts Council's new three-year strategy for the traditional arts as well as allowing the council to provide extra funding for festivals and to begin the implementation of its policy on opera.
Last, but by no means least, I propose the allocation of additional resources to the Irish Film Board. As the committee will be aware, the board is charged with promoting our indigenous film industry and with marketing Ireland as a location for international productions. There has been a serious fall-off in activity in the film industry in Ireland due to a number of factors, including the unfavourable exchange rate with the US, new competition from low-cost locations and changes to incentive schemes elsewhere. More crucially, our section 481 tax incentive scheme, while it has been enhanced and though once regarded as a leader globally, has now been copied and improved upon to a point where its relative attractiveness has been eroded. To address this problem I propose to make an additional €1.5 million available to the Irish Film Board to allow it to support the film sector through this very difficult phase.
I commend the Supplementary Estimate to the committee.