On behalf of the committee, I welcome the Minister and his officials, Mr. Con Haugh, assistant secretary, Mr. Paul Bates and Mr. Richard Crowley. I call the Minister to make his opening statement.
Estimates for Public Services, 2001.
Vote 35 - Department of Tourism, Sport and Recreation (Revised).
I thank the Chairman and members of the committee for giving me an opportunity to elaborate on the details of the Supplementary Estimate for my Department's Vote for 2001.
The need for a Supplementary Estimate arises for a number of reasons on which I will expand. I am proposing that an additional sum of £10.9 million - €13.8 million - be provided to Bord Fáilte under subhead B1 in 2001. This additional funding is required to finance the incremental marketing reassurance programmes by Bord Fáilte in response to the foot and mouth crisis earlier this year and the more recent tragic terrorist attacks of 11 September in the US.
The committee has been fully briefed during the year on the impact on tourism of the foot and mouth crisis and the events of 11 September. Presentations have been made by me, industry representatives and Bord Fáilte on the state of the market and the action being taken to support the sector during these difficult times. Comprehensive details of the marketing programmes being undertaken have been circulated directly to members of both Houses by Bord Fáilte in the latest two editions of its Link magazine.
After nine years of uninterrupted growth, Bord Fáilte is forecasting an overall reduction in visitor numbers in 2001 of between 6.5% and 10%. This is equivalent to a reduction of between 420,000 and 598,000 visitors, representing a loss of foreign revenue earnings of between €215 million and €292 million respectively. However, on the positive side, the past few months have witnessed a perceptibly robust performance in the domestic tourism market, driven by attractively priced offers by the trade and a strong marketing campaign by Bord Fáilte and the industry.
The most recent Bord Fáilte season report shows an estimated reduction of 6% in visitor numbers for the January-August period, with significant variations in regional and sectoral performance. Dublin has been less affected than the west and the golf, equestrian and angling niche areas have been badly hit. Hotel room occupancy has dropped overall but the larger hotels have proved more resilient.
In my recent detailed policy statement to the committee on 15 November, I outlined the action we are taking to support the industry at this time. I am continuing to consult widely with industry representatives and the tourism State agencies and, as I said earlier, there has been a range of incremental marketing programmes, both at home and abroad, to generate additional business.
On 7 November, Tourism Ireland Ltd, the new all-island tourism marketing body, launched its marketing plans for 2002 and its new international advertising material. New fulfilment literature and market books have been prepared for the first time on an all-island basis. The plans for 2002 will be flexible, taking account of changing international circumstances, and will have a renewed focus on the British and continental European markets. The new company will have a programme budget of €27 million for 2002, which will be supplemented by niche and product marketing funding from Bord Fáilte and the Northern Ireland Tourist Board. I will shortly launch a new tourism product investment scheme under the national development plan, one of the objectives of which is to promote investment in less developed tourist areas. We are pressing ahead with our institutional changes, including the creation of a new national tourism development authority, so that we have strong structures in place to implement our future plans for product, standards and human resource development.
The Government has allocated significant funding towards tourism development since we took up office. Under the national development plan, a total of €444 million has been earmarked for product, marketing and human resource development. The first ever multiannual tourism marketing fund is now in its second year of operation, with a total commitment of €190 million over seven years. Taking into account the proposals in this Supplementary Estimate, the total Exchequer tourism budget will be close to €110 million this year. When account is taken of the budget of Tourism Ireland Ltd, there will be a similar substantial level of funding available in 2002. As I said before, we have had nine uninterrupted years of growth in Irish tourism. The years 2001 and 2002 undoubtedly will be challenging but we have a strong and vibrant industry with the strength to get through this unprecedented crisis.
On the sport side, under the national lottery-funded sports capital programme administered by my Department, grants are allocated to organisations at local, regional and national level for the development of sports and recreational facilities. Over the past three years, I have allocated over €127 million in grants under the programme. The rate of drawdown of the grants has increased dramatically in 2001 to the extent that, in order to meet payment requests which are due by the end of the year, a further €1.9 million will be required under subhead C1. The amount spent on the programme in 2001, at €26.47 million, will represent an increase of almost 70% on the 2000 spend.
I am also proposing that an additional sum of €18.09 million be provided in 2001 under subhead D4, Special Olympics world summer games 2003. This grant is being made available to assist the GAA in having works currently under way at Croke Park completed in time to an adequate standard to accommodate the opening and closing ceremonies of the world summer games. The GAA and Special Olympics have agreed on the works to be completed at Croke Park so that the facility will be ready to host the ceremonies. It is the agreed objective of both parties to undertake both events in a cost efficient and co-operative manner to ensure a successful outcome for all concerned. The Special Olympics world summer games are normally held in the United States but in June 2003 the games will be held here in Ireland for the first time and will provide us with the largest international sporting event in our island's history. There will be delegations from 160 countries around the world participating in 18 different sports at various venues in the greater Dublin area. Some 7,000 athletes, 2,000 coaches, 1,000 officials, 28,000 families and friends, 30,000 volunteers and 2,000 international media personnel will be involved in the games. I understand that over 40,000 international visitors are expected to attend specifically for the games.
The games will broaden our experience of sport and our understanding of difference. The project has generated massive goodwill and commitment, across the spectrum of our national life. Under the host town programme, towns and villages around the country, north and south of the Border, will have a fantastic opportunity to become part of this unique event by hosting one of the 160 teams prior to the games. The year 2003 is also the European year of disabled people and the Special Olympics will have a unique part to play in shining the spotlight on people with a disability as full members of our community and in ensuring that awareness of disability is raised.
I will now turn briefly to the savings under various subheads of my Department's Vote which will offset the funds required under the Supplementary Estimate. Under subhead B3, a saving of €4.7 million arises due to the timing of the proposed operational start up for the new North/South tourism marketing company, Tourism Ireland Ltd, with the transfer of Bord Fáilte staff scheduled to take place by the end of the year. Under subhead B6, a saving of £200,000, or €0.254 million, arises because the planned upgrading of some CERT employment training centres has been postponed and also because a number of CERT courses had to be postponed due to the foot and mouth crisis.
Under subhead B10, a saving of €1.27 million arises because, for the first time, the tourism product investment scheme had to be notified to the Competition Directorate of the EU Commission under state aid rules for regional aid. State aids clearance, which is a necessary pre-requisite for the launch and operation of the scheme, was obtained from the Commission last week after prolonged and intensive negotiation. As a consequence, it has not been possible to launch the scheme and incur expenditure during 2001. Accordingly, the NDP budget will be spent over five rather than seven years.
Under subhead C2, €250,000 was provided as a contribution towards the operation and running costs of the 50 metre swimming pool at the University of Limerick. As the construction work on the facility is only now being completed, this allocation is not required in 2001. Under subhead C3, grants for provision and renovation of swimming pools, a saving of €7.6 million arises because of the long lead-in period before payments can be made to the local authorities, given the various project stages which must be completed before the grant is drawn down.
Under subhead C6, Sports Campus Ireland, a saving of €10.478 million arises. The provision in the 2001 Estimates reflected expected expenditure on the aquatic and leisure centre at Abbotstown. While work on the centre, which is required for the 2003 Special Olympics, is well under way, the level of spend on the project this year is less than had been estimated. The latest anticipated out-turn for the year reflects actual progress in the provision of the aquatic and leisure centre.
Under subhead D1 on local development and social inclusion measures, a saving of £1.5 million arises because of the deferral until late in the year of a number of rural projects due to the foot and mouth crisis. Under subhead D2 - programme for peace and reconciliation - there is a saving of £1.3 million. While the PEACE II programme was agreed in June 2001, the contract with the special EU programmes body has been the subject of protracted negotiations and has yet to be signed off. Funding to date has been provided for specific projects that needed continuation but no new projects have been put in place.
Under Subhead D3 on the drugs initiative, the £4.5 million savings arise due to a number of factors. The time lapse between planning, start-up and draw-down of funding differs for each of the local drugs task forces and, in some cases, the anticipated draw-down of the available funds has not taken place. There have also been some delays in getting capital projects up and running. In addition, most of the costs involved in the research commissioned on the nature of drug misuse in Ireland by the national advisory committee on drugs have not yet fallen due for payment. I commend the Supplementary Estimate to the committee.
I thank the Minister. We will now proceed to consider the Supplementary Estimate for Vote 35. Before I open up the discussion, the Minister might expand his views on the national tourism development authority.
Negotiations have taken place between Bord Fáilte and the board of CERT concerning a merger of the two. Bord Fáilte has done an excellent job in destination marketing over recent years as a result of which we have had terrific revenue and visitor numbers. With the setting up of Tourism Ireland Limited there was a residual lump of Bord Fáilte left with a question mark over its purpose. CERT has also done tremendous work over recent years and is getting stronger and stronger. Some 105 people were transferred to Tourism Ireland Limited which left a remnant of 130 staff in Bord Fáilte. There was a debate as to the role of the remaining staff. Bord Fáilte and CERT agreed a merger which was approved by the Cabinet. The two bodies will merge to form a unified body for the development of the tourism industry. They will have a new focus and criteria and will be responsible for product and niche marketing, thereby having a better definition of their role.
Including training?
Training remains a very important part of the process.
I welcome the Supplementary Estimate in respect of Bord Fáilte and the grants under section 2 of the Tourist Traffic Act, 1998. We have debated time and again the situation in 2001. It has been a nightmare year for the tourism industry. The United States market, a huge revenue earner, collapsed completely. The "stay away" notification to British visitors as a consequence of foot and mouth disease devastated the market and, as a result, the sector is hurting badly.
Regarding the revival of the US market, the outlook is pessimistic. The war is ongoing and shows no sign of abating. When the Americans are fighting a war abroad, they do not travel abroad. The recession in the US is another debilitating factor and there is no indication as to when it will end. At this stage, we can only talk of estimates and guesstimates. As long as the recession lasts in the United States, its citizens will not go abroad. The lingering spectre of the foot and mouth crisis remains. We remember the mixed messages and false information conveyed on the consequences of the disease. The disease was put across as a human, rather than an animal condition. This has, to an extent, counteracted by the effective marketing of Bord Fáilte but there is a huge collective paranoia on the part of the Americans that has not been broken. Given the war, the recession and the foot and mouth crisis, I do not envisage the American market picking up next year.
The concentration must and should be on the British market, as was discussed by the committee when the relevant tourism agencies recently attended. There is a golden opportunity to penetrate the British market. Traditionally, it was our best market until the outbreak of hostilities in Northern Ireland. British people speak the same language and have the same attitudes as us, and there is a huge indigenous Irish population resident in Britain apart from the extended Irish British community, some of whom have been there for generations but still view themselves as Irish. There is a huge opportunity to break into this market. That opportunity has never had the potential it has at present, and we never before needed British visitors as much as we need them now.
We should be hitting our target audience on several fronts and conveying the message that we offer good value for money. We should also emphasise the favourable sterling exchange rate. People will make a considerable saving when they change their money. Petrol prices are another factor. I was in Liverpool last week where, in spite a fall in the price of petrol, it is still considerably more expensive than here. Our petrol prices are dropping significantly while British prices are prohibitive, even more so if the exchange rate is factored in.
It amazes me that many British people who have Irish connections or would like to come to Ireland have not done so yet. They always anticipate visiting but never realise their anticipation. We should get the message across about the distance factor. Britain is literally only a stone's throw away. Ryanair's flight to Liverpool last week took 25 minutes outbound and 22 minutes on the return journey. When I leave Leinster House this evening, I will not make it to the N4 in 25 minutes.
There is great value to be had with Ryanair and Aer Lingus, especially if one books in advance. Prices are sometimes as low as €4. However, if bookings are made in good time over the Internet, it is possible to get a return flight for €4. Even at the top end of the spectrum, Ryanair and Aer Lingus offer good value. There is also excellent value to be had from car ferry operators. Irish Ferries has had a disastrous year due to the message sent out that British and continental visitors should stay away because of the foot and mouth crisis.
When the Bord Fáilte delegation attended the committee, I made the point that I support macro-advertising. We must get the global message out. However, there is need for a change in direction. The Minister mentioned markets related to golf, angling and equestrian pursuits. From the point of view of penetrating the British market, Bord Fáilte personnel should visit angling clubs in Britain, of which there are many. I passed through Lincolnshire at 10 a.m. one Sunday morning last year and saw approximately 50 people with serious fishing tackle congregated around nothing more than a glorified pothole. Every corner of rural Ireland is dotted with lakes and rivers on which there is coarse fishing. Many British people are totally unaware Ireland's angling potential, whether for pike, perch, roach, trout or sea fish. Bord Fáilte should visit British angling clubs and arrange package holidays for British anglers.
The message must be conveyed that we offer the best fishing in the world, right on their doorstep and at good value for money. The same message should apply to golf clubs as well. Bord Fáilte should promote the three or four golf clubs within ten miles of most Irish towns, many of which have nine or 18 holes and most of which are open all year. There is huge potential in the area of outdoor pursuits, including sports and trekking. It is important that we have more personnel on the ground, talking the language of the different sectoral interests. The British market may save the tourism industry, if we promote it vigorously, although the continental market is also important.
I welcome the arrival of the Special Olympic Games in 2003. It is a major coup which affords us a golden opportunity to show the world that we can do things as well, if not better, as those elsewhere. The host town programme is an excellent idea. I have encountered various groups involved in the games, such as the Western Care Association, which looks after the needs of those with mental disability in County Mayo. All host towns are looking forward to the challenge of the games, as it is a great opportunity. The Special Olympic Games will be a marvellous success and I commend the Minister and the Government. The games will put Ireland on the world stage once more.
While I understand that savings are needed, I am disappointed that there has been a reduction of £3.7 million in the grant to North-South tourism marketing under subhead B3. Why has cross-Border tourism been so slow in getting off the ground? I understand there are difficulties in relation to the transfer of staff, but I thought it would have clicked into gear at a much earlier stage, especially as the organisation is in place. However, by and large, I welcome the Estimate.
I also welcome this Estimate, although I am worried about accommodation for over 100,000 visitors expected during the Special Olympic Games. There will be over 10,000 coaches as well as many more participants. Will there be enough hotel accommodation for these people? I welcome the fact that the games are to be held here, especially the fact that the athletes will be based in many towns throughout the country. It is excellent that communities will experience such a large sports event for the first time. I welcome the fact that so many people will be able to attend the opening and closing ceremonies in Croke Park.
I agree with Deputy Jim Higgins that this committee should meet British delegations to encourage more people from the United Kingdom to come to Ireland. I recall that the committee tried to arrange a meeting in Scotland, but it fell through. We should continue to make efforts in Britain as many British people like to come to the western seaboard. People in counties Donegal and Sligo have benefited from the arrival of many tourists from the North since the troubles ended. Many people cross the Border to go shopping, meaning that towns in the north-west are doing well. For the first time, Irish people can afford to stay in Ashford Castle as prices have dropped since American tourists started to come in smaller numbers. It is a welcome development, although it is sad that there are fewer American visitors. I am sure those in the United States will see Ireland as a safer place next year. The ancestors of those who emigrated from Ireland to the United States will always continue to come here.
I would like to say a few words about sport. I welcome the funding that has been provided this year, although there seems to be an overall drop in the Estimate for sport. Sporting governing bodies have very little cash as they only received £1.4 million. It is impossible for the smaller sporting bodies to function on meagre allocations, which make it difficult, for example, to send athletes abroad for professional training or to pay for coaches to come here. It is rare that Irish sporting organisations can put in place proper development plans. It is sad that our athletes have to compete as amateurs against professionals from other countries.
While I have always welcomed funding for Croke Park, I put it to the Minister that the fact that over half the pitch there is covered in tarmacadam at the moment presents an ideal opportunity to lay a proper sod, capable of hosting international matches. The Special Olympic Games will be a major international event. I am interested in knowing what games will be played at Croke Park during the event. Will soccer be played there? Will Croke Park just be used to stage the opening ceremony or will other sports events be played there in 2003? There is now an ideal opportunity to put in place a pitch capable of bearing the brunt of international rugby or soccer in the future. I realise that the Minister said he will not direct the Gaelic Athletic Association to open Croke Park for rugby or soccer matches, but is he aware that a motion giving authority to the central council of the GAA to negotiate with the Football Association of Ireland and the Irish Rugby Football Union, which needed a two thirds majority, was defeated by just two votes? The vote showed that there is a willingness in the GAA to consider the idea of accruing revenue from Croke Park by entering an arrangement with other sporting organisations.
I presume the recent allocation of £14.2 million to the GAA is on top of the £60 million committed already and a previous grant of £25 million, meaning that total funding of about £90 million has been given. I ask the Minister to supply the exact figure. The current renovations at Croke Park present an ideal opportunity to provide a proper pitch so that the FAI and the IRFU can play major matches there. Even if the Government goes ahead with Stadium Ireland, four or five years will pass before it will be ready for international matches. It is probable that another World Cup will have passed before the stadium will be in full use, but it would be great if Croke Park was available for the many preliminary matches for the European Championships. It is an ideal opportunity.
There is great national enthusiasm concerning the Special Olympic Games. Admirable generosity has been displayed by the many communities that have applied to host visiting teams. It is going to be a major organisational challenge for all concerned. Will the Minister tell us what will be the central co-ordinating body? Will it be his Department or will it be the special committee which has been established?
Will the Minister or his officials tell us the figures for the allocation of national lottery funding? The Minister had to somewhat increase national lottery grants in the Estimates and gave us the total, since the lottery's introduction, of £166 million. I would like to have the figure for what has been allocated in 2001 and would like to know what was the total demand. What was the cumulative cost and what would it be if the Minister had to provide money in the case of all of the applications? A similar figure was mentioned to Deputy Owen at one stage.
A saving was made through the North-South marketing programme. It was unfortunate that it was a late starter because that £3.7 million could have been diverted to bona fide tourism projects. I know of some such projects where such a diversion would have been profitable for both sides. What funding is provided through the programme for peace and reconciliation, to whom is it provided and what are the qualification criteria? There was a saving of £1.5 million on local development and social inclusion measures and a number or rural projects were again deferred due to that. What were those rural projects? The Minister would make a very good Minister for Finance because he has saved so much money. This looks very impressive from the point of view of savings but I am sure we could all think of plenty of places to have spent the money.
I consulted again with the tourism industry in County Kerry, as I am sure did the chairman, and there are operators who have lost between 30% and 50% of their business this year, due initially to foot and mouth and then to 11 September. It is worth bearing that in mind. These same operators are now faced with an increase of 6% in their rates and a massive 40% increase in their water rates and refuse charges. They will be put to the pin of the collar to survive in the next year unless they get aid from somewhere or unless there is a major increase in the number of tourists coming to the county.
I welcome the Minister and his officials to discuss the Supplementary Estimate.
I do not want to repeat what my colleagues have said, but a few issues arise. I welcome the additional sums being provided to Bord Fáilte for marketing. Everyone has been calling for that and, in the current circumstances, it is absolutely essential. Marketing is the key. The Minister said he is giving the money to Bord Fáilte to target British and European markets. I assume that some of the money will also be used to target the American market. Will the Minister give us a breakdown of how this extra money will be spent in the various markets or will its allocation be a matter for Bord Fáilte? Is there a value for money audit being carried out on this additional funding? Until now, we have been pushing an open door, but from here on we must be very discerning in how we spend the money. We must ensure that we get a good bang for our buck in marketing terms. There is no point in putting money in if we do not get a result.
Do either the Minister or Bord Fáilte have plans for an ongoing audit to ensure that the spending of the money generates a good reaction, as opposed to waiting until the end of the year and having to decide to try something new for the following year? We must constantly review this spending on marketing. The Hotels Federation has a new website which seems to be very successful. Perhaps the Minister will comment on that and on whether we can make better use of IT to attract people here.
Access is vital in order to get people into the country. Many people have been saying that low-cost airlines are the way to go and perhaps the Minister has a comment on how that relates to marketing. Have any of the low-cost airlines been approached in that regard? Some of this marketing money may go to Aer Lingus and the ferry companies. Will any of it go to low-cost airlines? Is Bord Fáilte handing this money over to others to spend in their campaigns in order to help those about whom Deputy Deenihan spoke of?
I am somewhat disappointed that there does not seem to be any Government assistance for companies in trouble. We spoke about this issue on a previous occasion. Marketing is obviously important, but some of these companies are in trouble and may go to the wall unless some mechanism is found to keep them ticking over until things improve.
I welcome the tourism product investment scheme under the national development plan. The Minister has not launched it yet, but perhaps he will say a bit more about it. I compliment the Minister on his creative accounting which means that he is only looking for £1,000 in the Supplementary Estimate. He is juggling money back and forth and we note there is only £1,000 extra to come from the Exchequer. When one thinks about that, given the year of unprecedented disasters and the terrible attacks on America, it is amazing. What we find is that there are many cuts being made in other areas and it is our function to question some of those. One of the savings is being made from the grant for the North-South tourism marketing company where £3 million has been saved due to timing. I do not know if that money will be made available at a later stage or not. Are we robbing Peter to pay Paul?
The Minister also spoke of the need to amalgamate CERT and what is left of Bord Fáilte and that is a good idea which we would encourage. Legislation is due to allow that to proceed. The Minister also said that the Government agreed to it last week. Regarding the savings where CERT is concerned, will the Minister tell us what programmes have been cut and why? He said that some of the programmes have been postponed because of the foot and mouth disease crisis, but I am concerned that the upgrading of the unemployment training centres has been postponed. We should have been concentrating to ensure this did not happen. Why and in what circumstances has the upgrading been postponed?
There was a saving of €1.27 million in the tourism product development grant-in-aid. The Minister stated that the NDP budget would be spread over five rather than seven years. I assume the budget will not be cut and that more money will be allocated to other years instead. Will the Minister give this commitment? I understand it has been reduced this year due to problems with the Commission.
I am concerned about the grants for the provision and renovation of swimming pools. There has been a saving of £6 million - €7.6 million - due to the long lead-in period before payments can be made. I suggest that much of the delay in the swimming pool programme arose because proposals were before the Department for months, sometimes years, before decisions were taken to proceed to tender. One example of this is Cobh in my constituency where people have been waiting for a swimming pool for years. I am aware that some progress has now been made.
I ask the Minister to re-examine this matter closely because communities across the country are crying out for recreational facilities. A saving of £6 million in the provision and renovation of swimming pools is crazy. Rather than making savings, we should be increasing the amount of funding available. People are travelling long distances so that their children can learn to swim. I know from his comments in the past that the Minister's heart is in the right place and I support his efforts to increase the amount of money available for swimming pools. A proactive approach should be adopted to this matter rather than allowing proposals to lie on desks somewhere to be reviewed later. Let us get on with it and build the swimming pools.
In the past, we were told swimming pools were not commercially viable. Now, however, leisure centre swimming pools can make money if they are properly run. I have seen studies, as have the Minister and his officials, which show these projects can be successful. I am very disappointed with the reduction in this allocation and the long lead-in period before for these projects. Much of the reason for this is because proposals lie on desks in the Department for months or years. How long does it take to examine a proposal?
How many rural projects and local development social inclusion measures have been deferred? Most of us agree that social inclusion measures are vitally important. The cut of £1.5 million in the budget for these has been blamed on the foot and mouth crisis. I wonder whether the foot and mouth crisis is very convenient in some cases. Which projects are affected? The same applies to the Programme for Peace and Reconciliation. Protracted negotiations are blamed for this cut of £1.3 million. Will the Minister provide more details? Perhaps the EU will be blamed.
Some £4.5 million has been cut from the drugs initiative. Again, I support the Minister and the Minister of State on the drugs initiative on which we cannot do enough. This goes back to my comments on recreational facilities and swimming pools. We should be trying to increase resources in this area. The time lapse between planning, start-up and draw-down differs for each of the local drugs task forces. When this initiative was established, it was anticipated that all the money would be used and more would possibly be sought. Instead, we have a reduction although I am aware the programme is new and people may not understand how it works. Reference is made to delays in getting capital projects up and running. What are these capital projects?
Deputy Deenihan covered funding for Croke Park. On what will the £14.25 million be spent? I believe this sum is in addition to the moneys already given, which brings State funding for Croke Park to around £100 million. I do not want to knock this. The fact that the Special Olympic Games will be held in Ireland, especially in the European year of the disabled, is fantastic. I hope it will focus on these very special people, whom I admire. They are world class athletes and I applaud everyone involved in bringing the event to Ireland.
Without politicising the issue, I have been trying to find out how the moneys from the national lottery funded sports capital programme are allocated. I have discovered that Donegal has done extremely well in recent years for some reason. Dublin, Cork, Donegal and Kildare appear to be the top four counties in terms of funding.
Sheer coincidence.
It is a good programme. I have tried to find out if the money is divided up between the counties first and then divided among the applicants from the counties or if all the applications are put into one pot and graded. In one year - I believe it was 2000 - County Donegal received more money than Cork. Kildare is also doing well. This is interesting and curious.
Some parts of the country need their sports infrastructure beefed up. The sports aspect of the sports capital programme is very important, which is understandable, but many areas need to establish community and recreational facilities. We do not seem to have a dedicated fund, which could cover community halls and multi-purpose activities which include but are not confined to sport. This issue should be addressed.
I wish to make a couple of comments before handing over to the Minister. To return to the issue of swimming pools raised by Deputy Stanton, another difficulty faced by local communities is that many of them collect money at the initiation phase. They have to collect, let us say, £200,000, but by the time the swimming pool project is ready to proceed, the money has devalued to such an extent that the local community must meet a new requirement of providing, say, £300,000. This means local people have to try to raise more funds, which is a big problem, particularly in smaller communities. Many people involved in voluntary work become disillusioned and would welcome the process being expedited. We hear that the voluntary sector is now in decline. We should assist those people in any way we can.
Niche markets such as golf, equestrian sports and angling, which have been most badly hit, are considerable. It is unfortunate that the high rollers and big spenders are not coming to Ireland. Hoteliers offer great value but, as I said at a previous meeting, I do not think they will be able to sustain that over a long period of time. They are doing it now only to keep the beds full, retain their staff and save their businesses. If it takes us two or three years to recover, as happened after the Gulf War, many of the hotels in question will go to ground unless some effort is made. In my own constituency in Kerry, as Deputy Deenihan will know, the local authority faces a huge difficulty.
I call on the members of the tourist industry to make a serious effort. The Irish Hotels Federation is making a great effort, but I do not think people realise there is more to tourism than hotels. Everything can be affected - restaurants, bars, caterers etc. There does not seem to be a word from the people involved. They should all get together and realise the commonality of their difficulties. Hoteliers have raised this issue with us but we have not heard from anyone else in the sector. It is not just the hoteliers who provide beds who will be affected.
With regard to Tourism Ireland and the new development authority, will they concentrate on training or will they have other functions as well? Tourism Ireland should deal with marketing, particularly niche marketing. I agree 100% with the comments made by Deputy Jim Higgins. Many Northern Irish and British anglers and golfers do not realise the resources we offer although they are our next door neighbours. An American might have a better idea what is on offer here than somebody in England.
I welcome the assistance being provided in respect of the Special Olympics. Much money is being provided to Croke Park to facilitate the Special Olympics and I hope we will see other things happening there as well, because there has been huge investment by the Department of Tourism, Sport and Recreation. I hope all the facilities will be completed in time, including the swimming pool. I feel confident they will. A delegation of Special Olympics organisers addressed the committee on a previous occasion and I intend to invite them to attend in February to give a progress update.
I will now hand over to the Minister. There were a lot of questions and I hope he will be able to cover some of them.
I hope we will get through all the questions which I have considered and in which there is some overlap. Deputy Jim Higgins mentioned the good exchange rate and the short distance between Ireland and the UK and said we should sell these points which we are. As was mentioned by the chief executive when Tourism Ireland was being set up, the new literature states that Ireland is a safe destination for Britain, our largest and nearest market. It is close by, easily accessible and, in the event of difficulties, a speedy return home is possible. Ireland is well positioned as a destination that is easily accessible by sea, a fact which is particularly attractive to car owners.
I could not agree more with the Chairman with regard to angling. It is estimated that there are more anglers in the UK than there are people who attend football matches on Saturdays. We have done tremendously well in respect of golf niche marketing over the past ten years. It has paid huge dividends. There is huge potential for angling to be our next major niche marketing area. I will pass on the Chairman's remarks to Bord Fáilte which should become more involved with the literature circulated by the main angling groups in order that it can build up a rapport of the kind built up with the PGA, for example, on both sides of the Atlantic. Angling is definitely an area worth focusing on given that our nearest neighbours have such an interest in it.
With regard to the Special Olympics, referred to the Chairman and others, I had a breakfast meeting with a Special Olympics delegation yesterday morning during which I received a progress update. The project is going full steam ahead. The Special Olympics will be a major event in 2003 and Croke Park will only host the opening and closing ceremonies at which 80,000 people will be in attendance. As there will be a full house on both occasions, we must ensure the stadium is fully prepared for the event.
The one problem the Special Olympics seems to be posing at the moment concerns the accommodation sector. As of yesterday, beds had been acquired for 10,000 personnel in the educational institutions and a further 1,965 spaces are required. We brought in all the heads of the institutions, universities etc. and I understand that, as a result, the position has improved dramatically. Trinity College came forward yesterday and opened up its doors, as did all the institutions. Therefore, I am confident that the accommodation issue will be resolved.
As everybody knows, accommodation and catering will be very important for the athletes when they come to Dublin where all 18 events will take place although no events will take place in Croke Park other than the opening and closing ceremonies. There has been a massive response to the Special Olympics which will be the largest event in the world in 2003. We are certainly capable of hosting the event properly and have high calibre people to enable that to happen.
The event is not being run by my Department. It is being run by the games organising committee, under the chairmanship of Denis O'Brien. The estimated cost is £24 million, more than £18 million of which has already been raised in various ways. The committee is well on target.
Who is the committee chairman?
Denis O'Brien is chairman of the games organising committee which is making good progress. I am sure the Special Olympics will be a huge success.
As regards the work on Tourism Ireland Limited and the €4.7 million, this money is savings which will still be used, not handed back. The TIL marketing fund of £3.7 million, €4.7 million, goes back to Bord Fáilte. As TIL was not operational until November, the budgeted funding was not availed of. The work is ongoing because the personnel who are transferring to TIL worked on the same marketing projects in Bord Fáilte. The money in question does not comprise savings that will not be used and will be transferred back. There was a tactical problem although salaries etc. were still being paid. Some 105 personnel are due to transfer to TIL.
The new merger between CERT and Bord Fáilte arose because, following the formation of TIL as a result of the Good Friday Agreement, we had to take a look at what was left for the other tourism agencies under the aegis of the Department and identify the focus of these agencies. Both boards considered that bringing the two bodies together was the best way to achieve this. CERT and training remain very important parts of the new merged body and I intend to bring legislation to Government at the appropriate time concerning the exact format of the new board and the focus that will remain for Bord Fáilte which will continue to engage in niche marketing and product marketing.
CERT will continue doing the good job it currently does. Now that TIL has been established, it is imperative that the new agency's development be strengthened here. Questions were raised about the name of the new agency. Bord Fáilte is a widely recognised brand, particularly within the island but I must remind people that it is known as the Irish Tourism Board on our website. I am fully conscious of the value of the brand Bord Fáilte but feel that, following amalgamation with CERT, we should decide on a proper name for the new development authority.
Deputy Brennan asked about the Special Olympics for which accommodation has been organised. Deputy Deenihan asked about national governing bodies. Naturally, all of the bodies which in the past received very little funding sought extra funding. We have come a long way in the past ten years. I recall Deputy Molloy saying that the first sports grant at his disposal was £100,000. In 2000, national governing bodies received £9.5 million and the figure increased to £14.3 million in 2001. The sports council budget will be £16.7 million next year.
It only got £1.4 million last year.
With the sports council budget increasing, I hope the budget for national governing bodies will also increase.
Coaching was also mentioned. I was at Croke Park on Tuesday night where the coaches of the year awards were held. Since the NCTC opened - and it is an absolutely fantastic facility - we have been sowing the seeds for success across the sporting spectrum. I was informed that there are 8,000 coaches and 375 tutors in the country. Those numbers are growing annually and more and more coaches will become available in all disciplines. I congratulate the NCTC for taking on so many minor sports.
The national stadium will proceed. This country needs a national stadium. The question is often raised as to whether Croke Park should be the national stadium. Those who were at Croke Park in September for the All-Ireland finals will have seen that the playing surface was totally inadequate. Some of the games could have been played in the provincial grounds which have been upgraded in recent years. I will bring the High-Point Rendel report to Government in the near future. I had intended to do so next week but that is likely to be delayed by the budget.
We all accept that the sod in Croke Park is totally inadequate, but now that tarmac has been laid, we have an ideal opportunity to lay a proper pitch. With the aid of modern technology, a durable pitch can be laid that will meet international standards. We should do this sooner rather than later.
It is a matter for the GAA to prioritise what it does next. We all want to see a proper surface in Croke Park and less matches played there. Therefore, our requirement is to refurbish county grounds and proceed with the national stadium. Lansdowne Road can accommodate 49,000 spectators for rugby internationals but only 35,000 for soccer internationals due to a UEFA decision requiring all-seater accommodation. That capacity will drop to around 20,000. The European Championship qualifiers begin immediately after the World Cup. There is a requirement for a national stadium and it will proceed.
The Department has paid out approximately £106 million from national lottery funds and, taking projects into account, the figure could be as high as £200 million. The committee must understand that some of the applications, ranging from ski slopes on Croagh Patrick to tunnels, would have been totally off the wall. Some of the proposed projects had to be dismissed due to potential problems with planning permission or the fact that they were last minute proposals. Advertisements have been placed in the media for this coming weekend seeking applications from interested parties and the closing date is 4 January.
It used to be said that we did not have proper sporting infrastructure. We introduced the sunset clause which has started to pay dividends. That is the reason I had to add £1.5 million this year. Clubs and organisations are getting the message that they must raise 20% or 30% of the proposed outlay and they have been doing that. We do not tend to put a ceiling on what we will make available. If applicants deserve funding, I would almost let them proceed with whatever they want.
Is there any possibility of extending the application deadline? Clubs will be hard pressed to get complete their applications by 4 January.
I want as much money as possible to be spent. When I came into this office, I said that I wanted the application deadline to be brought back as near to the start of the year as possible as that would allow clubs to spend a greater amount in a calendar year. I hope the grants can be made in February or March next year, thereby allowing clubs to draw down as much as possible by the end of the year.
They will have difficulty completing their applications on time.
A further problem arises here. I know of a GAA club in my area whose grounds are located on a proposed new road corridor. The local authority will not give them planning permission until the corridor is defined. The club has been allocated a grant but planning permission is being delayed through no fault of the club's. With the number of new roads planned by the NRA, I am sure it will not be the only club to be affected.
I assure the Chairman that my officials have been told to be flexible in such circumstances. Funding has been allocated to some 2,044 projects.
How are the disadvantage criteria measured? Perhaps the Minister could provide a note on this because there seems to be some confusion.
I do not draw up the disadvantage criteria.
I know that, but is it not one of the criteria used in the national lottery funding allocation?
It is used in the Department of the Environment and Local Government by ADM.
I would appreciate if the Department could send us some information on that. I do not know whether the Minister is aware that clubs and organisations around the country feel obliged to hire in expertise to fill out application forms. This is adding to the costs, as well as stress and pressure levels. Perhaps the Minister could exclude these organisations from having to fill out the forms.
I disagree with the Deputy. Section 7 of the application form deals with how much self-funding an organisation has and, if it does not have 20%, there is no point trying to ascertain how much benefit it will be to the community. If the organisation does not have 20% self-funding, we score it nought.
I think people should be told that.
Time and again, I tell organisations about section 7. There is no point in the sector wasting time researching applications that will be turned down. If there is no money there, the plans are merely aspirational.
The money must be in the bank.
Yes. If the Kerry section, for example, is contacted to find out about a £100,000 project which has £3,000 or only 3% of total funding in the bank, there is no point in proceeding any further.
Does the Department check to ensure that the money in the bank is not borrowed?
As long as it is in the bank for the particular project, I do not mind. One could give a personal donation as long as the money is available for the project.
Is it possible that some clubs are actually borrowing money?
We must move on. Deputy Stanton may raise the issue with the Department.
The 2002 guidelines are available on our website.
Swimming pools, as many committee members will know, are taking between seven and 15 years to plan and fund. When the Government took office, only £3 million was available for the local authority swimming pool programme. We put in £45 million over three years. I met all local authorities in Tullamore about two and a half years ago and informed them of the proposals we were introducing to increase the grant aid from £2 million to £3 million or 80%, whichever was the greater. If local authorities were in a position to put a specific person in charge of their swimming pool programme, projects could proceed on this basis.
I received 51 applications from local authorities at that time. They are not in any specific order although there is a natural priority where a community has no swimming pool or where one has closed down. Applications were considered on the basis of how the project was being progressed by the local authority. Only a few of these applications are awaiting clearance and will progress on the appointment of a designated officer in charge. The average waiting time has decreased from 15 years to 15 or 18 months making this one of the Department's best projects.
I have just received a note from my official to the effect that no proposals are being delayed. It takes four months for local authorities to prepare contract documents. A sum of £3 million is an appropriate grant in these circumstances.
If a particular local authority were to make an application next week, would there be funding for it?
Yes. The current programme is due to close next week but a new one will commence in the near future. It takes some time to prepare that type of programme because an average project requires about £5 million. The Department can give £3 million so the local authority must find the other £2 million. If a local authority were to start to put a package together now, the new programme would have commenced by the time it would be ready.
So the average swimming pool costs between £5 million and £6 million and the local authority must come up with the remainder.
Yes, we give a £3 million grant. Deputy Stanton made a point about national lottery funding being provided for more community-based recreational facilities. The GAA received a total of 246 grant and 163 grants were provided to community and other projects. GAA funding amounted to £15.7 million and community and mixed projects received £14.1 million. Soccer was in third place with £6.7 million.
Bord Fáilte continues to monitor value for money. We probably carry out more monitoring than occurs in any other area. The committee received a breakdown of the figures on a previous occasion which is also available in Link. I do not have the specific details but the details of our spending in the North American and European markets were published. The European market is divided into 15 markets. We have had to rethink our marketing strategy, much of which will now be directed at Britain and the rest of Europe.
Access is an issue we have been discussing for 11 weeks. All the major carriers including Aer Lingus, Sabena, Lufthansa and British Airways are laying off staff, whereas low cost airlines are expanding. This is to be welcomed. Ryanair seems to have become a dirty word in this context. If it can stand over its proposals, it will find willing help from my Department.
There is a 25% decrease in capacity on North Atlantic routes and we must try to replace as much of that as possible. The facility is there and there are proposals from Ryanair and a number of other low-cost airlines. We must do everything possible to encourage bases in Europe with access from various other areas. There are 15 different markets out there that could be introduced to Ireland. It has been shown that on the route Ryanair opened from Frankfurt, for example, 70% of the passengers are German. If the demand is stimulated and there is cheap access to this country, people will come from any part of Europe. I do not care where they come from as long as they come here and spend currency - it will be all euros after 1 January. We are working on that on a daily basis. Despite some problems in certain sectors, we are doing our utmost to ensure that we continue to get those people in and that new routes from Europe to Dublin, Shannon and Cork are opened.
I mentioned that the new merged tourism company would be dealing with product and niche marketing and has done a very successful job on domestic marketing. There was never a better time for the consumer. Deputy Higgins mentioned the British market. During the foot and mouth crisis we maintained that we would be down approximately 14% in a worst-case scenario. The industry responded with a marketing campaign which has reduced this to 5%. Although there will be challenging times ahead, I am optimistic. The figures will be down but we are still aiming to get the 2001 figure as close to the 2000 figure as possible. Nevertheless, the revenue percentage will be down as high-spending Americans may not come here.
People asked about the savings in the area of CERT. The Cork training centre for the unemployed has been postponed until next year because of technical and legal difficulties with the builders and the owners. Training courses are also being cut back. Training is always one of the first areas to be hit in a crisis. The retail programme graduate scheme which appoints training personnel has been slow to get off the ground because the industry has been slow to take people on. In-house training by the companies has not started.
I am disappointed with the drugs situation. The savings amount to €4.7 million for the old reason that we have been trying to build centres but people are objecting to planning permission applications as they do not want these centres next door. While reading through these Estimates, I, too, asked about this issue. The Government has £4.5 million because of the factors I have outlined concerning the time lapse between planning, start-up and draw-down. That money is available.
Is that money all for capital projects?
No. Part of it, though not a large amount, is for research and service provision. The drugs task force tries to provide services in particular areas but, unfortunately, encounters these "not in my back yard" attitudes.
To what kind of services is the Minister referring?
I am familiar with a few of the projects, including the Leader project, but I do not know the specific services offered. They include prevention services which try to get people from black spot areas into other areas. That funding is also available for the youth employment scheme to set up centres in which young people can avail of different activities. It is regrettable that the funding is not being used. The project, which has been up and running for three years, is only in its infancy. Perhaps there will be a greater draw-down in years to come.
I agree with the Minister that it is a major disappointment that this money has not been used. Since it is not all devoted to capital projects, there can be no excuse relating to planning permission and other problems with builders. I encourage the Minister to investigate this issue again. If any area requires assistance and support, it is this one. I am not only referring to the drugs initiative. There are more problems out there associated with young people and alcohol. We have seen the reports showing that the situation is out of control. I encourage the Minister to do everything possible to ensure that this money and more is spent on this area. He mentioned diversion programmes and other programmes for younger people. The Minister knows, as do all Members of the House that these are badly needed. I cannot understand why——
I agree with the Deputy, but it has been widely accepted by all sides of the House that we should put money into the area of drugs and drug abuse. It is time for these people to get services and plans for capital investment should be drawn up. The money is available but, as the Deputy is aware, the new national drugs strategy was only launched last May so it requires a kick-in time.
The Programme for Peace and Reconciliation was mentioned. This involves many of the Border areas. I am disappointed that there was a saving of £1.5 million. This are is being monitored by Area Development Management and Combat Poverty and the saving is probably due to a lack of ideas and the existence of problems in certain areas. The message must go out that £1.5 million for projects under the programme has not been availed of.
Projects in rural areas were geared towards small farmers and smallholdings, including training for farmers and improvement of their employment prospects. Programmes were put in place——
Did they apply to the whole country?
No, the ADM areas. They were put back on account of foot and mouth disease. Rural projects, particularly those taking place in green field areas, could have been affected by this crisis. I am not making an excuse of this but, naturally, some of the programmes could not proceed.
It had a major impact.
The £1.5 million is available.
The tourism part of the investment scheme was mentioned. We eventually got the EU Commission to give us clearance for State aid last week and that will be launched in January. One could say that the NDP has been delayed for two years but we have been negotiating this in Europe over the past two years. The funding remains the same and we will be spending the same amount of money in the five years as we intended to spend over the seven years; some £350 million is still available. There is £100 million for tourism product - £40 million for the BMW region and £60 million for the south and eastern regions. That was the amount involved previously when leisure centres etc. were being built.
The BMW region has been divided into five functional areas for the purpose of trying to put a major attracter in each area. I understand the south east region has divided into approximately six functional areas, although these are not yet definite, and a major attracter attracting large funding will be given to each of those areas. It will be brought forward and will use the independent management board which I will set up and will come through the assemblies of the BMW and south and east regions. The launch will be in January and I envisage a number of proposals coming from all the areas regarding what the local authorities, public representatives or different organisations believe should be the major attracter for the areas. The idea is that an attracter in one area might be an equestrian centre, five or six miles down the road there might be a waterworld and eight or nine miles away there could be something like a ski slope.
The Minister wants a ski slope.
An attracter means that in a specific area the private sector and others will have to come together, offer their ideas to suit their catchment areas and try to generate a cluster of attractions. The idea would be that people will have something to do. Time and again people have said to me that they might go to an area which has beautiful scenery and lovely people but there is nothing to do. That is particularly the case for children. We are trying to develop those ideas. This is the type of thing we will look at, clusters of ideas that will be geared to a specific area.
Will there be a minimum and a maximum level?
Of grant aid?
Yes.
I do not intend to have that. It would depend on the type of project. In other words, somebody might be seeking £1 million while somebody else might be looking for up to £8 million but if it is a sufficiently good project——
So a project could embrace a number of mini projects.
Yes. That is what we are seeking. I hope there would be funding available to individuals as well. State aid clearance has been granted by the EU - it is EU funding so the Union has a major say in it - and the idea is that clusters are brought together. I am aware that local authorities in some urban areas have travelled abroad to look at projects in different countries and have returned with ideas. They will put them together with other local authorities to find out what is best. The only way to operate it is to divide the region into different areas.
Could they be existing projects that could be expanded and consolidated?
That could happen but I am not positive on that.
There might be an extension to an existing project to make it more viable.
Yes. A reference was made to Donegal in the context of the sports capital grants. I try to be as fair as possible in these matters. County Donegal did not receive any funding in 1989, 1990, 1991 and 1992——
A bad Government.
County Donegal has the seventh largest population in the country but was ranking 17th in the overall allocations lists. I tried to be as fair as possible this year. The grant aid was previously allocated on a population basis but in that situation counties such as Leitrim, Longford and Carlow which have small populations would only be entitled to sums of between £40,000 and £50,000. I took notice of this when I came to office and following justified complaints from these small counties, I made the rule that every county should receive a minimum of £200,000. It is not based on the population but, increasingly, on the standard of the applications. Every county, however, gets a minimum of £200,000 but it is based on the standard of the application, the community and the club involved. It is difficult to refuse a club that goes ahead with a project, starts fundraising and raises adequate and often substantial amounts of funds. Most of those who score highly on the criteria are facilitated.
I thank the Minister for facilitating the progress of the report on the Ballybunion swimming pool. It was an important announcement for the region. Without it, the Taoiseach would have had little to say in County Kerry. I thank the Minister for progressing the project and for the interest he has shown in it. I look forward to both of us using the centre in the future, after which I will entertain the Minister to a game of golf in Ballybunion. If Deputy Spring can entertain Bill Clinton there, there is no reason I cannot entertain Deputy McDaid.
I hope the remaining stages can be facilitated. I accept the point that if a project manager is appointed to deal with the county council and the project, the resulting communication and facilitation will help the overall project. It is up to the committee more than the Department to advance the project. The Minister just takes the information which is presented by the project team.
I have a final question. There is a problem in the Attorney General's office with regard to deeds of trust for national lottery funding. I was involved with a project which experienced that difficulty - hopefully it is now resolved - and it delayed the project considerably. At that time, projects receiving more than £40,000 required a deed of trust between the Department and the committee. That figure has been increased to approximately £100,000, which is a welcome change. It was probably due to lack of manpower in the Office of the Attorney General but that requirement held up payments for a number of projects. The banks were screaming for payment and they could not understand the delay in the Office of the Attorney General's when a sporting grant was involved. Perhaps the Minister will look at that aspect.
Two points should be made. The Deputy played no small part in Ballybunion himself. With regard to the swimming pool programmes, I am anxious to build as many swimming pools as possible because they cater for all ages. Swimming is a marvellous sport but, unfortunately, it is also the most expensive sport in the country. If the committee puts personnel together, there will not be any delays in the sector dealing with swimming pools.
However, public representatives must be aware that every small town wants a swimming pool, regardless of whether they are only five or ten miles apart. That is not feasible. It is an expensive sport and if swimming pools are built too near to each other, all of them will fail. It is necessary to have the proper geographical and feasibility studies carries out. An area might have the population to support one pool ten miles away from another but if one pool is doing well and a community ten miles away seeks its own pool, both projects could fail.
With regard to deeds of trust, there are delays because of that requirement. We met the Attorney General approximately one year ago to discuss this matter. Now, officials from my Department and from the Chief State Solicitor's office meet on a regular basis, approximately every six weeks or two months, and if there are deeds that have been delayed for some time, they try to bring them forward and expedite them. That co-operation exists. At the meeting last year, the Attorney General brought forward a number of ideas which we have implemented. We are trying to expedite the deeds of trust. Most of the people involved in these projects are volunteers but it is Exchequer money so we must ensure there is accountability. We have tried to deal with the problem and if any proposals are held up because of a deed of trust, there is a mechanism which can be brought to bear even though the meetings are only held every six weeks or two months.