I would like to introduce my departmental officials, Mr. Con Haugh, Secretary General; Mr. Paul Bates, assistant secretary general for tourism; Mr. Niall Ó Donnchú, assistant secretary general for arts, culture and film; and Mr. Stephen Ryan, finance unit.
The Department of Arts, Sport and Tourism has overall responsibility for the formulation of public policy for the promotion and development of the arts, sport and tourism sectors. I will outline the major developments for each of these sectors for which provision has been made in the 2007 Estimates.
Vote output statements are a key element of the budget and Estimates reform measures announced by the Minister for Finance in the 2006 budget. The statements are designed to match the key outputs of the main departmental programmes to the financial and staffing resources allocated to them for each year. The statements, which have been provided to all members, contain output targets for the coming year. The intention is that information on performance against these targets will be provided in the 2008 output statement, together with new targets for that year.
This is the first year of this new initiative and it is intended that the output statements will be refined and improved, taking into account the discussion with the select committee.
The B subheads of the Department's Vote make provision for expenditure of approximately €159 million on tourism services across a diverse range of activities, representing an increase of 12% on 2006 which was a landmark year for tourism in Ireland. Over 7.7 million visitors came to Ireland representing an increase of 10.5% on 2005. All our major tourist source markets showed healthy growth. Visitor numbers from mainland Europe were up by over 19% with revenue earnings up almost 10%. Visitor numbers from Britain were up by over 6% with revenue up by 9%. Visitor numbers from North America were up by almost 11% with revenue up almost 10%. Visitor numbers from new and developing markets were up by just over 8% with revenue up by 13%.
Some advances were made in achieving a wider spread of business throughout the regions. There was a 2% increase in the national hotel room occupancy rate and domestic tourism forged ahead. Business confidence has never been higher. Maintaining this impressive level of performance will be difficult, particularly in an increasingly competitive global market. A target of a further increase of 5.6% in overseas visitor numbers has been set for 2007.
Subhead B1 comprises a non-capital allocation of just over €76 million to Fáilte Ireland in 2007 to meet its administration and general expenses. These include pay, overheads and other administrative costs, advertising and printed publicity, certain marketing and promotional activities and the subvention to the regional tourism development boards. This subhead also covers the cost of activities related to the recruitment, training and development of staff and enterprises in the tourism industry. It also supports a range of major tourism initiatives, such as the international sports tourism initiative and the festivals and cultural events initiative.
Ireland's hosting of the Ryder Cup last September was widely acclaimed in terms of organisation, the high levels of satisfaction expressed by the players and the European Tour, and the positive image of Ireland presented to the world. The worldwide television coverage of the event and the raising of Ireland's profile generally are expected to result in lasting long-term benefits for Irish tourism. Our targeted sports events strategy is proving to be very successful in promoting Irish tourism generally. Our aim is to secure a portfolio of major sports events over the years, as is evidenced by the forthcoming round of the World Rally Championship later this year and the Solheim Cup in 2011. The subhead also contains provision for Exchequer Voted capital of €3.345 million for the upgrading of certain tourism facilities, including a proposed revamp of the tourist information office network.
Subhead B2 provides €19.6 million towards the pay and operating costs of Tourism Ireland. The all-island marketing company, set up under the Good Friday Agreement, is now implementing its second three-year corporate plan which seeks to deliver on the key tourism marketing policy objectives and targets set out in the New Horizons report of the tourism policy review group.
Tourism Ireland has been an outstanding example of the real benefits to be gained from practical North-South co-operation and the figures for increased visitor numbers to the island of Ireland speak for themselves. The provision for 2007 will allow this excellent work to continue and also to target more resources towards the North American and new and developing markets in light of the agency's recent reviews of these markets.
Under subhead B3, provision is made for an allocation of €845,000 to Shannon Development towards general administration costs associated with tourism promotion and development of the mid-west region. The Exchequer provision for the tourism marketing fund — subhead B4 — has increased from €18 million in 2000 to €45 million in 2007. This fund provides the Southern contribution to Tourism Ireland's core international marketing programme. It also provides for funding to Fáilte Ireland for its product and regional marketing programmes, as well as its consumer and trade promotions, publicity, market research and development. For 2007, I have secured an additional €5 million over the 2006 allocation — an increase of 12.5% — to strengthen and enhance the marketing programmes of both agencies.
I am pleased that in the region of €3 million will be allocated by the agencies for the super regions campaign. These specially created marketing campaigns highlight the attractions of the particular regions, ease of access by sea and air as well as presenting good value packages from the industry. The campaign is expressly designed to promote more balanced regional growth in the face of changes in both foreign and domestic tourism trends.
Under subhead B5 a provision of €13.75 million is being made available to support tourism product development in 2007. The recently published National Development Plan 2007-2013 includes a major €800 million tourism development programme. It also gives explicit recognition to the important role tourism can play in North-South co-operation, regional and rural development and environmental sustainability.
Last month, I had the pleasure of launching Fáilte Ireland's new product development strategy which, together with the national conference centre, is underpinned by an allocation of €317 million in the national development plan. This strategy will guide public and private investment in tourism over the next seven years.
Our accommodation sector has surged forward in terms of capacity and quality over the past decade. What we now need is a shift in the mindset from "places to stay" to "things to do". This is what all of our visitors — families, older couples, younger singles — are seeking. The recommendations and opportunities identified in the strategy will be rolled out by Fáilte Ireland to the tourism industry, local authorities and the public agencies over the coming months to stimulate investment and to encourage industry leaders to look at developing their own product offerings. The allocation under this subhead will allow that process to commence this year.
As a follow-on to the establishment of Fáilte Ireland, regional tourism structures have been revised with the establishment of five new regional tourism development boards last year. These boards have strong industry and local representation, and independent chairpersons, to bring a new dynamic to regional tourism development. They are ideally placed to harness local enterprise, identify opportunities and gaps in the product on the ground and to network and present attractive regional experiences for visitors.
As regards the proposed national conference centre, I am very pleased that, after many years of planning, we are now very close to contract finalisation. It is envisaged that site enabling and related works in preparation for construction will commence shortly thereafter and that the centre will be operational some 40 months later. On the basis of consultations undertaken earlier by my Department and research reviewed, I am totally convinced of the need for a modern, dedicated national conference centre if Ireland is to realise its full potential in the very valuable international conference market. According to a number of independent estimates, the national conference centre, when fully operational, is expected to generate additional foreign revenue earnings of between €25 million and €50 million per year.
When the Government took office in 1997, the budget for sport amounted to approximately €17 million. This year investment in sport by my Department — including the amount being allocated to the horse and greyhound racing sectors and the authorised capital carryover from 2006 — stands at over €295 million. This high level of funding will enable many major proposals to become a reality.
Subhead CI of the Department's Vote provides funding of over €63 million for grants for sports bodies and for the provision of capital sports and recreational facilities — including almost €14 million by way of deferred surrender of unspent 2006 capital allocations in the Department.
Most payments made under this subhead relate to grants allocated under the sports capital programme. Allocations to strategic national and regional sports facilities are also made from the subhead. This sports capital funding dovetails with the Department's local authority swimming pool programme and major national facilities funded such as the National Aquatic Centre, the redeveloped Croke Park and the current work programme for the redevelopment of Lansdowne Road, to improve the sports infrastructure of the country. Since 1998, a total of over €590 million has been allocated from this subhead, of which €483 million has been allocated in 5,781 sports capital grants to assist in the provision of facilities at local, regional and national level and a further €89 million towards the redevelopment of Croke Park.
The majority of projects funded under the sports capital programme are at local level. The funding which is provided towards new or improved facilities is a boost to the massive and often unheralded efforts of the volunteers who keep clubs and projects afloat. Since 1998 nearly every town, village and parish has benefited in some way from sports capital funding provided by the Government to help develop or improve pitches and playing surfaces, dressing rooms, showers, floodlighting, or to provide a range of sports equipment.
The sports capital programme is administered on an annual basis. The closing date for the 2007 programme was 24 November 2006. A total of over 1,500 applications were received, an increase of almost 200 on the previous year. The applications are in the final stages of assessment and I will be announcing provisional grant allocations under the 2007 programme in the coming weeks.
Under subhead C2, an amount of €25 million has been allocated to the local authority swimming pool programme. This includes €5 million by way of deferred surrender of unspent 2006 capital allocations. Under the programme, grants of up to €3.8 million are made available towards either the refurbishment of existing swimming pools or for the provision of a new pool. In both cases it is subject to the total grant not exceeding 80% of the eligible cost of the project or 90% for projects located in disadvantaged areas.
Some 57 projects have or are being dealt with under the current programme. To date, 41 projects have been allocated grant aid, 23 of which have been completed with 18 under construction. In addition, 16 other projects are at various stages in the process: three at tender stage; seven at contract documents stage; and six at preliminary report stage.
Activity under the programme has been increasing every year. In 2006 I approved grant aid for nine projects in Portlaoise, Portarlington, Longford, Thurles, St. Michael's House, Dublin, Athy, Birr, Naas and Kilkenny. I approved contract documents for nine projects and the preliminary reports of a further two projects. So far in 2007 I have approved tender reports and grant aid of €3.8 million each towards the cost of a further three public swimming pool projects in Tullamore, Bray and Greystones together with contract documents for a project in Dundrum. An expenditure review of the local authority swimming pool programme conducted by the Department is almost complete. Following on the completion of the review it is my intention to reopen the programme for new applications.
The Irish Sports Council was established in 1999 as the statutory body responsible for the promotion and development of sport with total funding of €13.2 million in its first full year of operation. It spent almost €41 million in 2006 on initiating, developing and enhancing a wide range of programmes aimed at increasing participation and raising standards in sport. Up to €54.025 million has been allocated to the council for 2007. This increased budget of over 30% will allow the council to realise the commitments in its current strategic plan, Building Sport for Life, to increase participation in sport and to improve the levels of performance by our elite athletes in world-class competition.
The increased budget for 2007 includes funding for the recently established Irish Institute of Sport to deliver optimal support for Olympic and Paralympic athletes and sports, funding to enable the continued extension of the network of local sports partnerships, and support for the new equine sport governing body, Horse Sport Ireland.
The increased budget also includes the following: continued support for the specific initiatives for which funding was earmarked in previous years for the development of hurling and camogie on a nationwide basis, the development of Gaelic games in Dublin and for programmes to attract more women to participate in sport; a once-off grant of €2 million for Special Olympics Ireland to help towards its financial commitments for the World Games in Shanghai later this year; and additional funding of €1 million, on top of the current €3 million, to the FAI this year towards the continued implementation of its technical development plan.
A capital allocation of €22 million has been provided for the provision of phase 1 of a campus of sports facilities at Abbotstown. The phase has a four to five year delivery schedule up to 2010 and is estimated to cost €119 million. It will provide for the development of modern facilities, including pitches and support facilities for the three major field sports, rugby, soccer and Gaelic games, with shared core facilities, including accommodation, fitness area, medical and gym facilities. Facilities will also be provided to cater for over 30 indoor sports, such as badminton, basketball, bowling, boxing, judo and table tennis. Community playing pitches and support facilities are also included in this plan.
The Government has made a considerable effort to bring our sports infrastructure into line with best international standards. The sports campus can be seen as a tangible symbol of Ireland's determination to compete on the international stage by ensuring that our sportsmen and women have at their disposal cutting edge facilities. It is a vital component in our developing sports infrastructure and will provide the ideal venue for our elite athletes in their preparations for future sports events.
A planning study for the site at Abbotstown has been carried out by an interagency group, including my own Department, in collaboration with Fingal County Council. The plan has assessed the appropriate mix of sporting, commercial, leisure and amenity uses for the whole Abbotstown site. It was formally presented to Fingal County Council on 12 March and will form a blueprint for the planning process for the site. A variation to the county development plan to accommodate a change of zoning to sports use will be put to the April council meeting.
Refurbishment of the former State Laboratory at Abbotstown as the new headquarters for the FAI is progressing. It is anticipated that the FAI will relocate to its new headquarters there later this year. A new headquarters for the Institute of Sport will be provided in the former Marine Institute building — the planning stage of this work is under way.
Some €56 million has been provided this year for the redevelopment of the Lansdowne Road stadium. The provision by the Government of €191 million towards the stadium redevelopment highlights the level of importance it attaches to the putting in place of world-class stadium facilities.
In July 2006, planning permission was granted for the project by Dublin City Council. However, appeals were lodged with An Bord Pleanála and an oral hearing took place in December 2006. A decision from An Bord Pleanála is imminent. I am hopeful that the decision will not place any obstacles in the way of this development. Subject to a favourable outcome to the planning process, construction work could commence during May. Construction is expected to take 29 months and once it gets under way, it is feasible that the new Lansdowne Road stadium could open its doors before the end of the decade, to cater for the international rugby and soccer requirements of the IRFU and FAI, respectively. The redeveloped stadium at Lansdowne Road will be a distinctive sporting and architectural landmark for the city of Dublin. There is a real requirement for a facility in which the country's international rugby and soccer squads can showcase themselves and Ireland to the world, while providing them with a base from which they can develop and build.
Government support for the horse and greyhound racing industries is provided under the horse and greyhound racing fund, as approved by the Oireachtas. Under the provisions of the Horse and Greyhound Racing Act 2001, the fund receives a guaranteed level of finance based on the excise duty on off-course betting. A total of €70.06 million was provided under the fund in 2006, of which €60 million was allocated to current expenditure and €10 million to capital programmes. In 2004 the Oireachtas approved regulations to increase the limit of the fund from €254 million to €550 million to continue it for a further four years to 2008. A total of €73.11 million has been provided for the fund in 2007.
Horse racing and thoroughbred breeding are significant net contributors to the Irish economy and have an important role to play in generating employment, particularly in the tourism and rural sectors. The thoroughbred breeding industry makes a gross contribution to the Irish economy of €330 million per annum and pays tax in the region of €37.5 million. Recent economic studies have also put the value of the Galway and Punchestown festivals to their respective local economies at €60 million and €43 million. In greyhound racing, the horse and greyhound racing fund has contributed significantly to the almost €90 million that has been invested in the magnificent facilities now available at greyhound tracks around Ireland which add to the enjoyment of the many spectators who attend the various meetings across the country.
The Government has supported the horse and greyhound racing industries because they have proven to be a good investment. There is an obvious and real return and the performances on track and in the sales rings bear this out. Economic studies have clearly signalled that the industries contribute significantly to the Exchequer and the sectors are important players in the agri-economy, as well as significant regional employers.
This unprecedented level of investment in sport is clear evidence of the importance which the Government attaches to the putting in place of modern, well equipped and well managed sports facilities supported by a wide range of programmes which are providing a real benefit for our communities.
Funding of €2 million is provided under subhead C7, relating to dormant account funding, which will be spent to encourage increased participation among disadvantaged young people in sport and physical activity. Priority will be given to proposals relating to sports such as martial arts, gymnastics, boxing and wrestling, which are popular with young people in disadvantaged communities. In addition, the measure will also be used to support proposals from groups and clubs which can demonstrate their ability and willingness to support increased sports participation among disadvantaged young people. It is intended that grants will be made available to sports clubs or groups through local sports partnerships and an equivalent structure where there is no partnership. This funding will be provided in the form of grants of between €500 and €10,000. This programme is being delivered with the active support of the Irish Sports Council.
In the 2007 Estimates, funding for national cultural institutions and cultural projects has increased to almost €58.5 million. The 2007 allocation of €2.118 million to the National Archives is required to meet ongoing expenditure, temporary archivists' salaries, its conservation and digitisation programmes. The subhead D3 allocation will enable the Irish Museum of Modern Art, the Chester Beatty Library, the National Concert Hall and the Crawford Art Gallery, Cork, to meet their day-to-day costs and expand their education and outreach services. The capital allocation in this subhead will increase the ability of the collecting institutions to expand their national collections, permit the National Concert Hall to replace obsolescent equipment and instruments and initiate an investment programme that will enhance the Crawford Art Gallery, Cork, as a national cultural institution.
The major archival project, dealing with the digitisation of the 1901 and 1911 censuses, is provided for in subhead D4, and amounts to €1.17 million in 2007. The subhead D4 allocation will enable the Department to continue the provision of funding to Marsh's Library, the Irish Architectural Archive, the Hunt Museum, the National Print Museum and the Foynes Flying Boat Museum. The increase in cultural projects funding will enable the Department to support the current expenditure requirements associated with the establishment of an exploration station to stimulate the natural curiosity, imagination and creativity of children. One of the exploration station's core goals is to provide the opportunity for children to explore and discover science, history, culture and the arts. This allocation will also facilitate the visit of Havhingsten fra Glendalough, The Sea Stallion from Glendalough, a reconstructed Viking longboat, to Dublin Port and its display at Collins Barracks.
Provision has also been made for a number of commemorations, including the quatercentenary of the Flight of the Earls, the quatercentenary of the foundation of the Irish College, Louvain, and the 350th anniversary of the death of Luke Wadding a noted Franciscan. The commemorations are an amalgam of conferences, exhibitions, plays, musical events, public festivals and spectaculars, and educational initiatives.
Specific funding in subhead D8 has been provided to enable the National Museum to embark upon a full exhibition programme in each of its facilities at Collins Barracks, Kildare Street and Merrion Street and the Museum of Folk Life in County Mayo. I have also facilitated a conservation programme for natural history specimens in the Natural History Museum.
The 2007 allocation includes a provision, in subhead D9, to permit the National Library of Ireland to pursue its exhibition programme. The library will continue its works in the areas of collection development and conservation.
Subhead D5 provides a total capital and current allocation of almost €43.5 million to support the further development of arts and culture, in particular the provision of funding for cultural infrastructure. The arts and culture capital enhancement scheme, ACCESS, is a key element in the Government's regional arts strategy and has been widely acknowledged as a significant intervention in the provision of quality cultural spaces throughout the regions. The scheme's aim is to support the development of arts and culture infrastructure. Under the first round of ACCESS funding, almost €43 million was allocated to 40 projects nationwide. The projects supported included new museums, new integrated arts centres, and the refurbishment of existing performance spaces with particular emphasis placed on community-based projects.
A second round of the highly successful ACCESS scheme was opened for applications in October 2006. Some 155 applications were received and have been assessed by an independent selection committee which will submit a report to me. I hope to announce the successful applicants presently. The primary focus of the scheme will be the refurbishment and enhancement of existing arts and culture facilities with some funding available for the development of new facilities in areas where a gap in provision exists.
As well as providing support for the development of cultural space infrastructure at local and community level, I am committing resources to building up our cultural infrastructure at a national level. The Government has allocated €26 million for the redevelopment of the Theatre Royal in Wexford, which is the home of the successful, and internationally significant, Wexford Festival Opera. In addition, support for a number of other important development projects will be channelled through this subhead, such as the refurbishment of the Gaiety Theatre in Dublin which will ensure the continued availability in the capital of a venue for large-scale operatic productions.
The finalisation of the national development plan earlier this year heralded the single largest capital allocation to the arts and culture sector in the history of the State. Some €904 million is provided in the culture sub-programme of the NDP to projects and institutions under the aegis of the Department. This includes provision for the development of a new national theatre and a new national concert hall on a public private partnership, PPP, basis.
Considerable progress has already been made on these projects which, when completed, will provide state-of-the-art facilities for the benefit of the people of Ireland and for the enhancement of the country as a tourism destination. The plan also includes funding for major capital developments at the other national cultural institutions and the following key projects will be delivered over its lifetime: a major extension of the National Library; delivery of a number of projects at the National Gallery in line with the gallery's development control plan; a major programme of works at the National Museum at Collins Barracks involving the development of the new centre block exhibition galleries; the provision of a building to house the Asgard at Collins Barracks where it will be conserved; and we are looking at proposals to locate a sports museum at Collins Barracks. These projects represent an ambitious agenda for the next phase in the development of the major national resource that Collins Barracks represents.
Funding is included for the following: the enhancement of facilities at the Irish Museum of Modern Art, IMMA, and the provision of additional exhibition space for IMMA; investment in upgrading the Crawford Gallery in Cork which has been designated, as I said, a national cultural institution; further enhancement of the Chester Beatty Library; shared off-site storage facilities for the national cultural institutions; and the provision of a new headquarters for the National Archives as a PPP project. We will also fund flagship commemorative projects, especially in the context of the centenary of the 1916 Rising, under the programme.
The benefits of incorporating arts into education are enormously significant. Obviously, those introduced to the arts at a young age are more likely to retain an interest as they grow older and this will be of benefit to the arts. I believe that initiatives such as creative engagement are vital in helping to foster creativity in young people.
Culture Ireland, the national agency which I established in 2005 for the promotion of Irish arts and artists abroad has already made a significant impact in the international arts arena. Funding for Culture Ireland was €2 million in 2005, its first year in existence. This increased by 50% to €3 million in 2006 and a further increase of 50% this year gives it a provision of €4.5 million. The 2007 allocation reflects the fact that the body is developing and making considerable progress in fulfilling its mission to advance Irish arts abroad, create new opportunities for Irish cultural practitioners leading to a deeper understanding between Irish and other cultures and communities.
Notable achievements of Culture Ireland in 2006 include Ireland's showcasing of ten theatre companies at the Edinburgh Fringe Festival and Ireland's participation in the Venice Architecture Biennale. The Government recently approved the establishment of Culture Ireland on a statutory basis and this along with the recruitment of a chief executive later this year will allow the board to make significant progress with the implementation of its strategy for the period 2006-10.
Total funding for the Arts Council has increased by some 31% in just two years, from €61 million in 2005 to €80 million in 2007. However, this must be seen in the context of the large and increasing need and demand for arts funding, and of the significant and real benefits to quality of life that accrue from investment in the arts. The arts are certainly not an elitist section anymore. Grant aid provided for the Arts Council benefits people at all levels of society in every area of the country.
The overall funding in the Estimates for the Irish Film Board, which has been increased to €19.7 million in 2007, will enable it to continue with its key role of developing and supporting film production in Ireland including feature, documentary and animation. This level of funding represents an increase of some 14.5% on the original 2006 allocation of €17.126 million. The increased current allocation of 25% from 2006 in respect of administrative and general expenses — pay and non-pay — will facilitate the board in marketing Ireland as a film location and, in particular, will assist the work of the newly-appointed film commissioner in Los Angeles in raising the profile of the Irish audiovisual industry abroad. The board also acts in co-operation with other State agencies to support the marketing, sales and distribution of Irish films and to promote training and development in all areas of film-making.
The section 481 scheme continues to offer film producers an essential source of funds for their projects. In 2006, 39 such projects were certified, generating spend in the State of over €100 million, 10% of which included Irish language productions. To date in 2007, seven projects have been certified. The welcome additional funding provided by me to the Irish Film Board in 2005 and 2006, totalling €3.5 million, was directed to supporting international productions which could demonstrate clear economic, industrial and cultural benefits to Ireland. The IFB's judicious selection of projects to support in 2005 resulted in significant additional Irish production activity worth €30 million in 2005 and €34 million in 2006. Therefore, €3.5 million generated €64 million. The evidence in employment, training and turnover is clear, going some way to restoring the health of the sector which had to rely on low-scale indigenous production in 2004 and 2005. In aggregate, since 2002 the film and TV production spend in Ireland, supported by the Irish Film Board and section 481, has approached almost €500 million.
The arts, sport and tourism ministerial Vote group also includes the separate Vote for the National Gallery of Ireland, Vote 33. The allocation for the National Gallery in 2007 is €11.765 million, of which almost €9 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 National Gallery for which €3 million has been set aside, an increase of 138% over last year's provision.
As this is my fifth and final year in presenting the Estimates for the Department of Arts, Sport and Tourism to the committee, I would like to place on the record my gratitude to you, Chairman, and the members of the select and joint committees for the courtesy which has been extended to me during each visit. I would also like to express my thanks for the constructive nature of the exchanges which have taken place at this committee over the past five years, which have made an influential contribution to the arts, sport and tourism sectors.
In conclusion, I commend the Estimates to the committee and I will be happy to provide any additional information or clarification that members may need.
