Vol. 445 No. 6
55 Mr. E. Kenny asked the Minister for Tourism and Trade if he will review the decision to exclude restaurants from the small business expansion fund in view of the sector's contribution to the tourist industry; and if he will make a statement on the matter. [670/94]
Following the announcement in this year's budget of the £100 million small business expansion loan fund, I agreed with my colleague, the Minister for Enterprise and Employment, an allocation of £25 million for tourism projects. Given the limited resources available and the expectation that demand would greatly exceed supply, it was necessary to focus the scheme on areas where it would be most beneficial in terms of tourism development and job protection and creation.
I fully recognise the importance of a vibrant restaurant sector to the overall Irish tourism product. However, while the sector clearly benefits from tourism growth, it is less dependent on tourism for its survival than many other sectors. Accordingly, I decided that restaurants would not be eligible for assistance under the scheme. The scheme has made a major contribution to tourism development, one from which the restaurant sector will benefit significantly. Furthermore, as the tourism element of the scheme has been fully subscribed the question of reviewing my decision does not arise.
The Minister is a gregarious character and has been known to dally for a while in restaurants throughout the country. As I am sure he will appreciate, people have acquired wealth during the years but this has not been reinvested locally. It would be far more beneficial if people could invest in a local project under the small business expansion scheme to develop the local economy. I think the Minister would also agree, in terms of his own projections and plans for the development of the tourism industry, that areas remote from metropolitan areas are an attraction in themselves. An added incentive is the development and expansion of restaurants, particularly seafood restaurants in maritime areas. Will he, therefore, reconsider his decision?
I am not in a position to reconsider my decision to exclude restaurants from the small business expansion scheme even if I wanted to as the £25 million allocated to me by my colleague, the Minister for Enterprise and Employment, has been allocated as announced last week by the ICC which acts as agent on my behalf. The remaining £75 million under the scheme will be allocated to manufacturing industry. Given the small amount of money available we had to focus the scheme on areas where it would be most beneficial in terms of tourism development. If the number of visitors increases the restaurant sector will benefit more than any other sector. If I had an unlimited amount of money available I might be in a position to broaden the scheme but we had to focus it and the amount available has been allocated.
This question was also tabled last May. The Minister, therefore, had many opportunities to include restaurants if he had wanted to do so. Is he aware that 27,000 people are employed in the restaurant sector? Does he agree that because of the demand for non-hotel restaurants the restaurant sector now plays a vital role in the industry? If a similar scheme is introduced next year will the Minister consider including it? It is inexplicable that the Irish Restaurants' Association is not represented on the tourism council. Some time ago the Minister promised me that he would consider the possibility of allowing it to be represented. Has he reached a decision?
That matter is the subject of a later question. The restaurant sector is represented on ITIC, the umbrella body for the tourism industry which has a number of representatives on the tourism council. The restaurant sector is not represented on the council. On the question of extending the scheme to include restaurants, as I explained to Deputy Kenny, we had to target the £25 million which has now been allocated. We have, therefore, no scope to extend the scheme. If a similar scheme is introduced next year with a similar amount of money I could not see myself being in a position to broaden the criteria.
