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Dáil Éireann díospóireacht -
Tuesday, 13 Jun 1995

Vol. 454 No. 3

Tourist Traffic Bill, 1995: Second Stage.

I move: "That the Bill be now read a Second Time."

As indicated in the explanatory memorandum which I have circulated, the purpose of the Tourist Traffic Bill, 1995 is to enable Bord Fáilte Éireann to delegate to a contractor certain of its tourist accommodation inspection and associated functions and powers under the Tourist Traffic Acts, 1939 to 1987 and the Intoxicating Liquor Act, 1988. The functions and powers in question relate to the registration and grading of a range of tourist accommodation and the licensing of restaurants.

I believe it would be useful to outline briefly the background to this Bill. In the context of reviewing the effectiveness of existing arrangements to promote Ireland as a tourist destination, Arthur D. Little Limited of London were commissioned as consultants by my predecessor in 1994 to carry out a fundamental review of Bord Fáilte. The conclusions and recommendations contained in their final report — copies of which have been provided to the Library — were accepted by the Government in November 1994. When I took up office at the Department of Tourism and Trade in December last, I reviewed the position and decided to press ahead with the implementation of the findings in the review.

It is important to recall that the consultants recognised that Bord Fáilte had done a good job for Irish tourism over the years. However, times change and there was a need for change in the Board as well. Because of its unstructured and organic growth over the years Bord Fáilte Éireann had developed into a multifunctional body and was undertaking more activities than was desirable. In addition to marketing and promotion, it had become involved in the registration and regulation of a very wide range of tourist accommodation and services. It was deciding on EU grant applications, publishing a wide range of brochures, running the Tidy Towns competition and so on. Although important in their own right, those other activities were not necessarily supportive of the overseas marketing and promotion functions which should be at the heart of Bord Fáilte's role. In reality, they almost certainly led to a significant diminution in the level of dedicated and focused team effort that should characterise a dynamic international marketing organisation.

Moreover, it is clear that the Irish tourism industry has grown and matured in recent years and is now willing and able to take on more responsibility for its future development. Accordingly it is less in need of the intensive handholding and paternal direction which characterised the role of Bord Fáilte in earlier times.

The consultants concluded — quite rightly in my view — that Bord Fáilte, in future, should concentrate on its core activities of selling Ireland as a tourist destination overseas, helping the less mature elements of the industry to develop and providing market intelligence to industry decision makers. The review envisaged Bord Fáilte strengthening its marketing capabilities and, with a view to filling skill gaps, introducing new blood with industry experience. As an essential part of the change process, Bord Fáilte Éireann would transfer or cease some of is existing activities and its overall staff complement would be reduced by up to 70.

The ADL review was well received by the Irish tourism industry, in political circles and by the media and this convinced me that it had general acceptance and should be urgently implemented. I would like to pay tribute to my predecessor. Deputy Charlie McCreevy, who was instrumental in commissioning the review. While I have said before in public that I might take issue with his at times confrontational style vis-á-vis Bord Fáilte, I believe he had at heart the interest of the continued successful development of the tourism sector.

I am pleased to inform the House that much progress has been made since the beginning of the year in implementing the ADL review. A high level steering committee is overseeing the change process and has already met on ten occasions. As I said at a recent appearance before the Select Committee on Enterprise and Economic Strategy, we are now seeing clear evidence of the much desired internal organisational and cultural changes within the bord. A new mission statement and organisational structure has been put in place together with related senior staff changes. A new dynamic international marketing director has been appointed with an impressive track record in private industry. An attractive voluntary severance package has been available to staff which will enable the organisation to be revitalised and reinvigorated through staff movement and some limited recruitment of new blood. The "new Bord Fáilte" will be progressively launched over the summer months and we will see an exciting rebirth of the organisation and a new era in the marketing of Ireland overseas as a first-class holiday destination.

As regards existing Bord Fáilte functions to be divested, the tendering procedure for the registration and grading of accommodation is well advanced. Tenders are currently being evaluated and, subject to enactment of this Bill, I hope the new arrangements — of which I will speak later — could be put in place by September. My Department has also completed a consultative process with the key groups of accommodation providers affected by the proposed changes to ensure they fully understand what is being done and to take their concerns on board.

On the product approvals, or nonregistered tourist accommodation and services side, a number of the key associations, for example, in the bed and breakfast sector, have now taken up the challenge of accepting a greater level of responsibility for enforcing their own standards. Last week I had the pleasure of hosting a reception to announce the formal recognition of the Town and Country Homes Association and the Irish Farm Holidays Association as approving bodies for the Irish homes sector and the awarding of the shamrock symbol. I do not rule out the recognition of further associations subject to acceptable standards being met.

The tenders for Bord Fáilte's European Union product development grant administration role have been received and are currently being assessed to determine if costs and other considerations justify this function being contracted out.

The Tidy Towns competition has been transferred to the Department of the Environment and the Discover Ireland holiday brochure series has been put out to private tender. The Gulliver computerised information and reservation system has been fundamentally reassessed to see if it can be satisfactorily reconfigured in the context of an external commercial arrangement.

This is a series of dramatic changes which I believe represents a new and exciting chapter in the history of Bord Fáilte. I know that the chairman, board, director general, management, staff and unions — after some understandable initial reluctance — are taking up the challenge with enthusiasm and I am grateful for their support. Much care has been taken to ensure a full and comprehensive dialogue with the unions and staff in view of all the sensitivities involved. No compulsory redundancies are envisaged. I also wish to acknowledge the support and patience of the industry in regard to the changes being put in place. Change is always unsettling and demands adaptability and intelligence to accommodate it.

The Bill before us does not constitute a major overhaul of the Tourist Traffic Acts which govern the operations of Bord Fáilte and the registration, grading and approval of tourist accommodation. My objective has been to implement the ADL review with the minimum of legislative change and disruption to the industry. As I said earlier, one of the major changes recommended by the consultants was the subcontracting by Bord Fáilte to a commercial third party of certain inspection and associated functions in relation to the registration and grading of tourist accommodation. As these are statutory powers and functions at present vested in Bord Fáilte, amending legislation is necessary to allow the bord delegate them to a third party.

Under the current tourist traffic legislation the following categories of establishment require mandatory registration with Bord Fáilte; hotels, guesthouses, holiday hostels, youth hostels, holiday camps, caravan and camping sites, and holiday cottages and holiday apartment group schemes.

The standards to be applied, together with the relevant fees payable, in the case of each of the categories are provided for in regulations made under the Acts by the board, with the consent of the Minister for Tourism and Trade. Classification — or grading, as it is more commonly referred to — is not mandatory but is provided for under the current legislation and applies to hotels, guesthouses, caravan and camping sites and holiday cottages and apartments.

The Intoxicating Liquor Act, 1988 provides that in order to obtain a special restaurant licence the proprietor must present a Bord Fáilte certificate. The Act empowers Bord Fáilte to inspect restaurants for the purpose of issuing such a certificate. The inspection criteria to be applied and the fee payable are laid down in regulations made, under the Act, by the Minister for Tourism and Trade with the consent of the Minister for Justice. It is my intention to review the criteria for certified restaurants to see if they can be simplified somewhat while maintaining high standards.

The Tourist Traffic Bill, 1995 will enable the board to delegate to a contractor the bulk of its inspection and associated functions in relation to registration and grading of tourist accommodation and in relation to special restaurant licences.

Under the new arrangements, the board will continue to retain ownership of the registration and grading standards, which means they will continue to set the criteria for registration and grading and to prescribe the various fees involved by regulation made under the provisions of the Tourist Traffic Acts, with the consent of the Minister for Tourism and Trade. Bord Fáilte will also continue to retain responsibility for the operation of the final stages of the appeals mechanism provided for under the Acts, when applications for registration and renewal of registration are refused and in the case of cancellation of registration. They will also be involved in the final stages of the appeals mechanism for grading of accommodation. They will have a key role also in monitoring the performance of the contractor and in the selection process. All other aspects of the inspection process will, in future, be undertaken by the third party contractor.

The key roles being retained by Bord Fáilte in the registration, grading and certification process will be critical in ensuring that the board maintains tight control on the standards and procedures to be used while relieving them of the more routine physical inspection procedures. I am acutely conscious of the importance of maintaining high quality standards for tourist accommodation and there is no reason to believe that the changes envisaged under this Bill will adversely affect the current situation.

In selecting an external contractor to undertake the functions to be outsourced, we will be assessing tenders against a set of key criteria which will include (i) capability and experience to undertake the role, (ii) cost efficiency within the existing fee structures, (iii) financial offers to Bord Fáilte for the right to provide the service and collect associated fees, (iv) transparency and objectivity in the activities to be undertaken and (v) accountability. It is envisaged that the successful tenderer will be awarded the contract for five years but subject to a yearly review clause. Bord Fáilte will also have the right to cancel the contract in the event of unacceptable performance.

The Bill is quite short and comprises nine sections and a Schedule. The explanatory memorandum circulated with the Bill explains the proposed changes in detail. Section 2 allows Bord Fáilte to delegate to a third party, subject to contract, certain of its inspection powers and functions as set out in the schedule. Section 3 allows the board to make regulations governing the terms and conditions of any such contract. Section 4 provides for termination of a contract where this is deemed appropriate. Section 5 allows employees of the contractor to be designated as registration officers, or inspectors, subject to appropriate controls. The remaining sections deal with certain legal consequences in relation to holding of the accommodation registers and opinions of the board. I will be happy to deal on Committee Stage with any specific question Deputies might have.

It would be useful to give the House a brief update on developments in the tourism sector generally in the context of this Bill. The economic importance of tourism has grown enormously in recent years. Earlier this month I launched a major consultancy study of the economic impact of tourism in Ireland by Tansey. Webster and Associates under the auspices of the Irish Tourist Industry Confederation. Some of the findings were extremely interesting and I would like to share them with Deputies. For the first time in 1994, the number of overseas visitors coming to Ireland, at 3.68 million, exceeded the size of the domestic population; tourism's contribution to GNP has risen from 4.8 per cent in 1986 to close to 7 per cent in 1993, tourism supports employment for over 90,000 at present and is closing the gap on primary agriculture as a source of jobs in Ireland. Tourism has been one of the major growth sectors in the Irish economy with continued potential for further development and job creation. It is labour intensive, has a negligible import content and a strong regional development dimension. We can achieve continued growth while at the same time protecting our environment by careful management and a wider seasonal spread of tourist numbers.

The Minister is making an extremely important speech and it is very sad that his Government colleagues are not here to listen to him. Before the Minister concludes some of his colleagues should be brought in to listen to the end of his speech which marshals quite a number of very important facts.

Notice taken that 20 Members were not present; House counted and 20 Members being present,

Deputy Andrews knows all these Deputies were listening intently to my speech on tourism growth in each of their respective constituencies.

The year 1994 was very good for tourism and continues a pattern of uninterrupted growth in revenue and visitor numbers since the late 1980's. Recently released Central Statistics Office figures show that the number of overseas tourists is estimated to have increased by over 10 per cent in 1994. Revenue spent by overseas visitors increased by 10 per cent also to £1.5 billion. Much of the 1994 growth was attributable to especially improved performances in the American and British markets.

I am optimistic that 1995 will be an excellent year as well. Figures released by the CSO very recently show that the number of overseas visitors to Ireland in the period January to March represented an increase of nearly 17 per cent on the same period last year. To achieve the ambitious medium-term growth targets which are included in the EU Operational Programme for Tourism 1994-99, we have set specific targets for each of our principal markets in 1995. The new structures and initiatives which we are putting in place in Bord Fáilte, in our international marketing effort, in this year's Finance Act and through EU development grants, will provide an added boost for achieving our goals in 1995. The ongoing peace in Northern Ireland is of course, of tremendous benefit as well and I will touch on this later.

Turning to the international marketing of Ireland, I have allocated £4 million to the OTMI — the overseas tourism marketing initiative — in 1995. When complementary finance from the tourism industry, North and South, is included the total budget for this campaign this year amounts to £6.3 million. The OTMI represents the continuation of a consumer marketing partnership between Government and the private sector which was pioneered in last year's US marketing initiative. That campaign was extremely successful. CSO estimates show that an overall increase of some 17 per cent in North American visitors was achieved by Ireland last year compared with an average 8 per cent growth by our European competitors.

This year's OTMI campaign is aimed at increasing tourist numbers and revenue from our four most important markets — the US, Britain, Germany and France. An exciting new dimension is the involvement of the Northern Ireland tourism industry. For the first time ever, all the tourism interests on the island have come together in a large scale programme to market Ireland as a single destination — one of an increasing number of marketing co-operation initiatives being pursued on a joint North-South basis.

The OTMI strategy again consists primarily of generic "Visit Ireland" advertising on TV and in newspapers and magazines. Inquirers in each market receive a custom-produced brochure which features the product of the participating companies and organisations together with the Bord Fáilte and Northern Ireland Tourist Board literature.

Work on the development of an international brand for Irish tourism was initiated in 1994 through the Tourism Council. This is a very exciting project and is part of a comprehensive look at Ireland, the brand and its communication. I have already said publicly I believe it has the potential to bring a new dynamism to our international marketing effort in co-operation with the industry. Consultants were appointed to develop the visioning process of the brand development and have reported their findings. Bord Fáilte's new international marketing director is now leading an industry partnership group to take the process forward with the objective of relaunching the Ireland brand progressively in 1996.

The EU Operational Programme for Tourism, 1994-99, under which investment of over £650 million is envisaged with associated grants of £370 million, is now in place for six months. I am glad to report that interest in the programme is very intense and over 1,000 applications for grant assistance have been received. The management boards which decide on individual grant applications under the programme have already established an excellent record for independent and rigorous appraisal of projects.

Under the product development sub-programme of the OP some 50 of the 250 applications received have been decided to date. The approvals cover a wide range of tourism product, including visitor information, visitor centres, leisure and conference centres, tourism angling, cruising, walking and adventure sports. One of the major flagship projects in this sub-programme is the establishment of a national conference centre. I intend to bring this matter before the Government shortly, in order to obtain clear support to proceed with the development of the centre at an early date.

The marketing sub-programme of the OP is well under way also with decisions made on some 100 of the 400 or so applications received to date. The most significant initiative undertaken in 1994 has been the OTMI campaign to which I referred earlier. Almost 8,000 people completed training in 1994 on over 600 ESF sponsored training courses under the training sub-programme of the OP. Of the 1,380 unemployed persons receiving certification, almost 1,000 (72 per cent) gained full-time employment, with the balance obtaining part-time work or progressing to further education/training or to sheltered employment.

In summary, therefore, I am well satisfied with overall progress under the tourism operational programme. I am conscious of the need to ensure that EU funds are spent wisely with a view to putting in place the industry infrastructure which will carry us into the next century.

This year's budget and Finance Act will help to strengthen the Irish tourism industry through a variety of both general and specific measures. I am very pleased that the pilot renewal scheme for traditional resort areas was included, and I am confident this measure will have a revitalising effect on the specific towns and areas to be covered. The scheme is based on the very successful urban renewal scheme and it incorporates many of the features of that scheme, notably, accelerated capital allowances, double rent allowances and rented residental accommodation relief. The details are set out in the Finance Act and the scheme will now be promoted by my Department and the tourism support agencies. Ultimately, the success of the scheme will depend on the commitment and energy of the investors and entrepreneurs who come forward with development projects. The tourism industry will also benefit greatly from a number of general taxation provisions under the Finance Act, 1995, such as PRSI reliefs and reduction in corporation profits tax.

The peace process in Northern Ireland has enormous potential for the further development of tourism on the island and has already resulted in a redefinition of our policies and strategies.

I referred already to the £6.3 million Overseas Tourism Marketing Initiative which for the first time ever brought the public and private sectors in Ireland and Northern Ireland together. This is a unique partnership which is selling tourism on the island in our major markets abroad. I have met my Northern Ireland counterpart, Baroness Denton, on numerous occasions in recent months and we have announced a range of cross-Border regional marketing initiatives, as well as participated jointly in numerous events, most recently at the White House Conference on Trade and Investment in Ireland. In Washington, we were joined by the chief executives of our two tourist boards who made an effective joint presentation to US business on the investment needs of the industry on the island. A tourism communique was signed on behalf of the American, Irish and British Governments. The International Fund for Ireland, the new INTERREG programme and the forthcoming special support programme for peace and reconciliation are all creating new opportunities for North-South contact at Governmental, tourist board, community and business levels.

It is clear from what I have said that these are exciting times for tourism. The industry has developed very substantially in recent years and high levels of investment are being made to improve our product. We have always had a reputation as a country of great national beauty where, despite recent isolated crimes against tourists, a warm welcome is guaranteed. These attributes have now been enhanced through a major improvement in tourist accommodation and visitor attractions, together with a growing level of maturity and professionalism in the industry.

The Tourist Traffic Bill, 1995 is a reflection of the changes made in tourism. It will play its part in helping to reposition Bord Fáilte among the best of national tourism organisations, making its unique contribution to the continued growth and development of tourism. It is my intention to prove beyond doubt that following the implementation of these changes Bord Fáilte will be clearly established as the premier tourism board in Europe. Once again I commend the Bill to the House and look forward to hearing contributions from Deputies.

I thank the Minister for his complimentary references to his predecessor in office, Deputy Charlie McCreevy. I would have expected no less from this Minister whose generous remarks are appreciated.

Much of the spade work was done by Deputy McCreevy and we are now reaping the rewards of his far sightedness in respect of the review undertaken by the consultants, Arthur D. Little, much of which I agree with, but parts of which I have doubts about. A number of the recommendations will never see the light of day, although the Minister indicated that the report will be fully implemented. I will not hold my breath but I will take the Minister's word because I believe him to be an honourable man who to date has been doing a good job in the Department which will be shown to be effective in ordering the disparate tourism industry, which the Minister has described as fundamentally important to the future of this country. In real terms he said it may be catching up with agriculture and that, for the first time this year there will be more tourists visiting the country than there are members of the domestic population.

These are significant features of the Minister's speech, apart altogether from other items he has raised which will need closer scrutiny and broader elaboration during the debate on this Bill which is fundamentally important to the future of tourism here. The report correctly focuses attention on what Bord Fáilte was originally set up to do — sell Ireland abroad. It carries out that function well but it could do better. For that reason alone we welcome the Bill. It is the kind of Bill Deputy McCreevy might have introduced had he been Minister and we support it.

The legislation is broadly in line with the recommendations of the Arthur D. Little Report. Bord Fáilte should be able to subcontract to a third party contractor certain inspection functions regarding the registration and grading of tourist accommodation. It is important that Bord Fáilte be freed up to deal with its core activities — selling Ireland abroad, helping the less developed elements of the tourism industry and providing information to industry decision makers. I am glad, as the Minister stated, that Bord Fáilte will retain ownership of the registration and grading standards. This is important for the industry as the board will continue to set the criteria for registration and grading and will prescribe the fees involved. It is also right that it retains responsibility for the operation of the final stages of the appeals mechanism for application for registration and grading renewal.

This Government proclaims that it is transparent and uses all the clichés proper to the politically correct atmosphere which undermines the basic tenets of Deputies' generosity and decency. I know Bord Fáilte's involvement in the appeals mechanism will be transparent but I do not want to go down that wretched avenue as I have no time for political correctness. That philosophy is insulting to Deputies.

The Bill does not provide for consultations between the contractor and the various interest groups in the tourist accommodation sector. Relations have been developed between Bord Fáilte and the Irish Hotels Federation and that is vital to the smooth working of the industry. If that does not exist under a new arrangement, it will be a major loss. The Minister might consider a forum involving the new contractor, Bord Fáilte and the various interest groups which could meet quarterly and ensure everyone was aware of the proposed changes and developments. It could help foster and develop policy and maintain relationships between the parties and within the industry.

Registration and classification are important and can materially affect businesses. It is imperative that the interest groups continue to have a strong involvement in how classification and registration procedures are implemented. Difficulties could arise with the implementation of the Bill and it is important for the Minister to stitch in principles which would guide the contractor's approach to the registration and grading of accommodation. For example, the Bill does not state that registration according to existing agreed minimum standards should continue to be mandatory for all hotels and guesthouses. There is no specification regarding classification. Will this continue to be voluntary? If hotels and guesthouses opt to be classified, will this be done in accordance with existing criteria? Will Bord Fáilte set new standards with the new regime? The Minister said current standards will apply for the present but for how long will that be? Will new review and appeal mechanisms be put in place by the board following the appointment of a contractor or will existing agreed procedures apply?

What has been the response to the tendering of registration and grading of accommodation? The Minister should give details of the applicants to enable the House assess the course that is being chartered. Interest has been expressed by the Automobile Association and Egon Ronay. A former senior manager with Bord Fáilte is also in the running. I understand the tendering process is at a sensitive stage and do not wish to express my views on the applicants but I reserve the right to make observations in due course.

At present Bord Fáilte carries out this function. The State spent £2.2 million on redundancy payments. Will we have a former employee of Bord Fáilte who took voluntary redundancy take over this function? That is hardly a cost effective way to do business. Perhaps the Minister will clarify who is taking over this function. If this function is not carried out in a cost effective manner the extra cost will be recovered in full from proprietors and probably down the line from the consumer. Those involved in the registration and grading process should be adequately qualified and experienced to carry out the relevant inspection and advisory roles.

I met the Family Homes of Ireland organisation on a number of occasions. It looked forward to the launch of its second accommodation guide as it believes its sale could be done through tourist outlets. Its discussions with the Department were encouraging and it received an assurance that departmental sanction for it would be granted by the end of March. However, it was then told it would be September before a decision was made. It has been unable to avail of the summer season as a marketing opportunity.

The Minister has been slow to implement the consultants' recommendations. The Minister's procrastination has been to the detriment of the Family Homes of Ireland organisation which does marvellous work. I wish to pay tribute to the 9,500 B & B operators. These clean and friendly homes provide a unique opportunity for tourists to meet the real people of Ireland. Visitors can sit and chat with their hosts and are given an excellent service in most cases.

I have a particular affection and regard for Sneem which I have visited for the past 20 years. I have stayed in various houses in the area and also the marvellous Parknasilla Hotel. The bed and breakfast accommodation in Sneem is an example of the best in this type of accommodation. I am referring to the accommodation run by the Teehans, Moriartys, Doyles, Husseys, Drummonds and Harringtons, the marvellous village inn run by Barbara O'Connor and the bakery run by Mr. Ó Ceallaigh. These people are the bedrock of the tourism industry and I want to pay a tribute to them as representatives of all those who provide a service for tourists.

I am very pleased at the considerable increase in the number of English tourists visiting Ireland. I pay tribute to the Minister who has concentrated on this market and has met Baroness Denton on a number of occasions. These meetings are proper and appropriate — when I was Minister for Defence and the Marine I met her on a few occasions — and they have encouraged British tourists, who are big spenders, to holiday here. There are many differences between us but we share a common language, and I pay tribute to the Minister for encouraging these tourists to visit Ireland.

I question the Minister's decision to allow self-regulation in some sectors, including the bed and breakfast sector. It is admirable that a number of key associations have taken up the challenge of accepting greater responsibility for ensuring their own standards. They are likely to come under intense internal pressure if the work is to be done properly. For example, an inspector who refuses registration or classification to a member is likely to be lobbied within the organisation. There has always been a question mark over self-regulation which may lead to problems within organisations. Regulation by an independent body is preferable. Given the opportunities offered by the peace process, has the Minister considered the setting up of a single North-South grading and registration body which would ensure consistency for tourists travelling from Dublin to Belfast and vice versa?

Hostels are an important part of the tourism industry. In the main they are of a very high standard and some, such as the one on the Aran Islands, are known internationally. However, in grading and registration terms there appears to be an anomaly which could hinder the healthy growth of this type of accommodation. The terms "hotel" and "holiday hostel" are prescribed terms but a hostel does not have to be of the same standard as a holiday hostel. It is probably desirable to make the term "hostel" a prescribed term. Tourists have a fixed view of hostels and expect them to be of a high standard. It is important, therefore, to ensure that this type of accommodation is highly regulated. It is not acceptable that a proprietor who uses the term "hostel" instead of "holiday hostel" can escape important requirements of the tourism industry. I ask the Minister to deal with the issue of contractors either in this or some other Bill.

Does the Minister intend to extend the State-based registration and grading process to restaurants? We need a national system for the grading of restaurants so as to help tourists negotiate the restaurant scene. It would also help to regulate entrants and prevent fly-by-night operators from opening up in vacant premises in tourist centres for a brief period each year before simply disappearing.

Further consideration must be given to the requirement for cottages in tax designated seaside resorts to be kept vacant from April to October in order to qualify as self-catering accommodation. I accept that the tourism season needs to be extended but this appears to be an excessively long period. The Minister could deal with this matter by way of an amendment to the Bill.

The experience of the staff of Bord Fáilte who are leaving under the voluntary severance programme is invaluable to the development of the tourism product. Does the Minister have any plans to tap into this expertise during the transition period? I am concerned that the registration and grading work is being removed from the State sector merely for the sake of it. Did the Minister consider offering the work to another State agency, for example, CERT, which has done exceptional work in improving standards in the hotel, catering and tourism industry? Would it not be possible to give this State agency responsibility for the registration and grading work? If this work is retained within a State agency the transition to a new system will be made easier. There might have been no need for a voluntary severance programme if staff had been given the option to move to another State agency. However, the process is now in train and I understand it is unstoppable.

Moving the registration and grading work to another State agency might also have created less anxiety in the tourism sector. That anxiety may have been allayed by the future mapped out for Bord Fáilte. Until recently some of the main groups in the hotel and accommodation sector were in favour of leaving the registration and grading work with Bord Fáilte. Has the Minister given them assurances in this regard and has he had any second thoughts about moving the work out of the State sector? Some people in the tourism industry believe the Minister should not have accepted the Arthur D. Little report in its entirety. Usually Ministers select certain recommendations from a consultancy study and implement those. Does the Minister intend to depart in any way from the Arthur D. Little report? What other plans does he have for Bord Fáilte and will they require legislative change?

Bord Fáilte was established in 1939 and it has carried out excellent work and served the State well. For example, it has kept up with the changes in communications, marketing and patterns of travel and holiday making. I am concerned that the impact of these changes on Bord Fáilte while it is getting back to its core activities may damage the morale of the remaining 250 staff. I am also concerned at the loss of senior staff in the organisation. Five of its senior executives have opted for voluntary severance as part of the restructuring programme, 75 jobs will be lost and only two of the top managers will remain in the organisation. The Minister will agree that the loss of this expertise could have serious implications for the tourist industry. Will this new body perform as well as Bord Fáilte in registration and grading? We do not yet know how this body is to be financed, staffed and operated. Will the Minister address these issues when replying?

It is important that the new system works well from the word go as tourism is a vital sector in the economy. It is one of the few sectors that can produce the economic growth to cut into unemployment numbers. Because of the peace process there are few sectors that can match the growth potential of tourism which is labour intensive and where revenue growth translates directly into job creation. As the Minister properly pointed out in his contribution, in one way or another this affects 90,000 people. He also opines that in the future this figure will grow. Any new system must work well, we must have new guesthouse quality accommodation constantly coming on stream. Will the Minister give details of his long term plans for the new registration body and will B & B and farmhouse accommodation be under its aegis? How quickly and for how long will the self-policing arrangement be in place for the awarding of "Shamrocks"? Why has the Minister decided to implement only some of the measures? There will be continuing anxiety in the tourism sector because the review of standards has yet to come. Current negotiations with the industry associations are on the basis of existing standards. However, changes in standards have been recommended by Arthur D. Little but when will this happen? It appears that the tourism industry will be subjected to two bouts of major changes when it could have been done in one sweep.

Will the Minister consider referring matters others than registration and accommodation to the new body? The Bill and the Minister's speech raises many questions that require answers. As we move into peak holiday time, serious fears for the long term future of tourism along the west coast are being voiced by top hoteliers who see an ever increasing amount of business going to Dublin and the east coast. I understand urgent letters have been sent to the Minister for Tourism and Trade, Deputy Kenny, and to the Director of Bord Fáilte, Mr. McNulty, concerning difficulties being experienced by people in the industry in the west. The Minister should give details of these letters to the House.

The reported rise of 17 per cent to 20 per cent in tourism nationally is not seen in Cork and Kerry and along the west coast. The removal of the compulsory stopover at Shannon Airport is one of the reasons. Aer Rianta should urgently help the authorities at Shannon Airport to attract low cost carriers to the region. There must be discounts on landing and airport charges at Shannon so that carriers can be wooed to the airport. Initiatives to boost British business out of Shannon should be undertaken. Low cost carriers for instance have been instrumental in increasing the amount of traffic from Dublin to Britain.

Are there proposals to develop the car hire industry? While the number of coach tours appear to be increasing in Dublin the numbers of people who go to the west and south west independently and hire cars is rapidly decreasing. Sneem village is clogged up daily with tourist buses and I often wonder about the advantages for that marvellous place and its people. At peak holiday time a week's car hire can cost up to £400: there is a need for an immediate examination of this area. There seems to have been a serious shortage of cars which lead to even higher prices. I understand the shortage problem has eased somewhat because Northern Ireland fleets are now more actively sought out by tourists.

Car hire surveys show the prices vary from day to day and from location to location and there is a problem with insurance regulations. Some elderly tourists are prohibited from hiring cars when visiting Ireland. There has been a number of complaints to Bord Fáilte from tourists who were unable to hire cars because they were over 70 years of age and did not qualify for insurance cover. People nowadays are fitter and live longer and when they come to Ireland they want to hire cars. In the US one can hire a car at the age of 90. Many of the US tourists to Ireland are retired and do not expect to suffer age discrimination in Ireland of all places. This insurance problem must be examined; perhaps this could be done by a subcontractor who might look at the regulation of the car hire industry as it is such an important part of the tourism industry.

In the grading of accommodation, it might be worth the Minister's while to take note of a warning today by a holiday expert who said that continental tourists may like a traditional Irish breakfast to begin their holiday but they do not want it every morning. Food and drink can be very important and I wonder if this will be part of the standards applied by the new contractor? The expert also emphasised the importance of foreign languages for hotel receptionists and waiting staff so they can translate menus. While I broadly support the Bill I have some concerns and perhaps the Minister will address them. I am grateful to the Minister for the frank way in which he approaches his brief and for the manner in which he presented the Bill.

I welcome this Bill and compliment the Minister for bringing it before the House. I also compliment the Minister for following up on the initiatives of his predecessor, Deputy Charlie McCreevy, in radically reorganising the approach of the State to tourism and the marketing of tourism. The approach taken by Deputy Mc Creevy — whereas the Minister may have called it confrontational — was proactive and although a few feathers may have been ruffled here and there he got on with the job and put in place the administrative policy review which has led to this legislation. That is not to detract from the Minister's accolade for this Bill.

Tourism is rapidly becoming our number one industry and it is essential that everything possible is done to optimise the returns which flow from the industry and to ensure the highest standards and value for money for people holidaying in Ireland, whether home holiday makers or visitors.

It is worthwhile reminding ourselves that in 1986 this country was, so far as air travel is concerned, in the hands of a monopoly or an oligopoly which maintained very high air transport costs into this country. We have to remind ourselves that Deputy Des O'Malley, in those days as an Opposition Deputy, had to cross swords with Deputy Jim Mitchell. I am not saying anything against Deputy Jim Mitchell because I know and admire him and he is a fine Member of this House but then — because this was the posture of Government — he defended the indefensible — the very high air transport cost structure which prohibited access to this country. During the period of the 1982-87 Government legislation was put before this House, the gist of which was to penalise anybody who undercut the air transport monopoly, and long jail sentences and massive fines were proposed for those who engaged in what was then denigrated as bucket shop competition in terms of air transport access to Ireland. How things have changed since then. We now owe gratitude to those who fought for the principle of competition in air access to Ireland at that time.

It is worthwhile recalling that real competition on the Irish sea air corridor, which is a very important one, only emerged in relatively recent years and that every effort was made by a number of vested interests to stamp out that competition. The emergence of competition in the air transport business into Ireland is the single most important issue, so far as the change in our tourism fortunes is concerned. The emergence of this competition was revolutionary. We should learn a few lessons from this, one that we should now look at the issue of the costs of air transport carriers into Ireland. In this context Ryanair is looking for lower landing charges and suggesting the creation of an alternative means of access to the greater Dublin area at Baldonnel. This would be a welcome development and should be positively examined with a view to saying whether there is a way to further cut the costs of air transport carriers into this country.

Is there any longer a necessity for a single State monopoly to run our airports? I do not believe that Aer Rianta is a necessary arm of Government, Whereas some airports may need State help to function maybe all air transport carriers into Ireland would gain if there was genuine competition in relation to landing charges. In this context the Ryanair initiative is useful and valuable.

The time has come to examine whether the State's role as shareholder of a monopoly company which runs all airports of significance in the Republic can be justified. Whereas Aer Rianta is to a large extent a monopolist at home it now considers itself free to invest in British regional airports and expand its operations into ownership in a deregulated competitive airport economy next door.

We should examine whether we should deregulate and demonopolise and introduce the principle of competition in the air transport industry in terms of means of access for air transport carriers into Ireland. In this context we should look not only at the possibility of introducing lower charges but at the possibility of reducing State indebtedness by allowing private investment in airports which would not be a burden on the taxpayer and breaking up the Aer Rianta monopoly to capitalise much needed infrastructural development.

In the period since 1986, 25,000 extra jobs have been created in the tourism industry. We need to make significant headway if we are to maximise the potential for promoting Ireland as a tourism destination. In that context the proposals in this Bill are practical and should be welcomed. They conform precisely with the central philosophy of my party in that the State should divest itself of non essential activities and, where possible, those activities should be conducted by the private sector. If one wants to have a State scheme to regulate and grade tourist accommodation and restaurants, there is no reason the State should not act as a regulatory authority of last resort and the day-to-day function of assessing and grading such facilities should not be given to non-State bodies.

In this context I respectfully disagree with Deputy Andrews that it might be an idea to transfer this function from Bord Fáilte, which is being slimmed down at considerable cost to meet the new challenge which the latest policy puts before it, to CERT or some other State body. That would not in any sense mark a step forward. The central proposal in this Bill that the inspection and standards functions of Bord Fáilte in relation to the registration and grading of tourist accommodation should be subcontracted to a third party is sensible.

In many respects the tourism industry is self regulatory to a degree. Excellent publications such as Hidden Ireland feature a directory of accommodation and have established a high reputation among holidaymakers. The organisation behind this publication is largely a voluntary and self-regulatory body. Other organisations such as the AA, Michelin and Egon Ronay also grade facilities. Therefore, there is a variety of agencies suitable to carry out this work.

Deputy Andrews queried which organisation will be given the job or whether it will be given to a private consultancy firm comprising former Bord Fáilte employees? As this is enabling legislation, this is not the apposite occasion on which to consider which body should be given this function, but I would not rule anybody in or out. Given that the AA, Michelin and Egon Ronay sell commercial guides — this complication may easily be overcome; I do not say this in a discouraging way— any information gained by them in carrying out work as subcontractors to Bord Fáilte would have to be accessible to all. If, for instance, Michelin which produces excellent guides was on the inside track as the subcontracting body, the information at its disposal would have to be available to anyone who wanted to produce a guide. The erection of Chinese walls would be necessary to separate the functions of contractor and participant in the private sector in relation to tourism information.

According to weekend newspaper reports a new private Irish consultancy is tendering for this business. That is a positive development. I would not exclude anyone merely because they had been involved in Bord Fáilte in the past and received severance payments from it. We should ensure that the best contractor is given the job and carries out the work to the highest standards. We have to put everyone on a level playing pitch and see which of them will do the job best.

When the function is given it should not be for a period, which would induce a sense of complacency in the mind of whoever becomes the contractor and a sense that they will be there for good. I hope a system will be put in place to ensure that the matter will be re-examined on a competitive basis and that the chapter will never be closed just because one person becomes the original contractor under the legislation.

In that context the further proposal in the Bill to allow Bord Fáilte to continue as the standards regulator is sensible. The setting of standards by an independent regulatory agency such as Bord Fáilte is probably the best way to proceed. Believing in private enterprise, as I do, one cannot allow a sub-delegation of legislative power to a private enterprise contractor.

The most damaging image this country could suffer as a tourism destination is that people will depart from our shores feeling unhappy about the quality of accommodation they booked and for which they paid dearly. That is the reason the maintenance of the highest possible standards in all accommodation sectors is absolutely essential and as a country we cannot be satisfied with the old rule of caveat emptor, let the buyer beware.

Accommodation standards are only one part of a much more complex question when it comes to offering tourists, home holiday makers or foreign visitors, value for money. In that context the overall cost of holidays in Ireland is of crucial significance, including the access costs, accommodation, dining out and other entertainment, and the overall costs of incidental goods and services. I stress that in this context the maintenance of high environmental standards is of huge importance. One of the constant complaints by visitors to this country is our dirtiness in terms of litter, dereliction, scrapped vehicles in fields throughout the country and so on.

The State has a role to ensure the litter laws are enforced. Perhaps that function should to some extent be transferred to non-State bodies. At the very least, local authority litter wardens should be encouraged to enforce litter laws in areas where they adversely affect tourism. On-the-spot fines could make such a process self-financing so that it would not be an additional cost on the beleaguered taxpayer. In that context the long-awaited waste Bill must introduce an effective anti-litter strategy that not only heightens public awareness of the problem but also provides for an effective system of penalties to ensure offenders pay for their carelessness and uncivic behaviour.

The Bill proposes that Bord Fáilte will concentrate on promoting Ireland overseas as a holiday destination. That is badly needed because in comparative terms we are still faring poorly in attracting overseas visitors, particularly from the United States, and our performance is not comparable with for example, that of Britain. Much attention is paid to the fact that there are approximately 40 million people in the Irish diaspora in America and that we get only a tiny percentage of the potential American overseas holiday market. We must ensure we can measure the impact of any marketing drive by Bord Fáilte in the State or elsewhere. In that context its advertising and marketing strategy should feature coupons or other means of assessing whether the advertising is effective. As part of its overseeing function in the tourism and transport area, the Government should insist that Bord Fáilte demonstrates the effectiveness of its advertising. Such an approach would allow Bord Fáilte to be more effective in assessing the impact of and response to its advertising campaign.

I highlight this point because the consultants Price Waterhouse found in the 1980s that while we had one of the biggest tourism marketing organisations it was not one of the most effective. It is very important that effectiveness by the slimmed down, outward-looking Bord Fáilte is monitored. Even though it is difficult to say whether image creation and branding of Ireland as a tourist destination is effective by reference to any particular advertising campaign, nonetheless Bord Fáilte must be subject to particular scrutiny in the way it fulfils this function and must reach efficiency targets set for it. The amount of money expended and the number of people involved in marketing is important, but we must ensure we achieve positive results and value for money.

The continental European market has great potential. However, in terms of marketing there is little doubt but the exploits of our soccer team in the European Championship in 1988 and the World Cup in 1990 had more to do with interesting continentals in the idea of holidaying in Ireland than had advertisements in newspapers in the last seven or eight years. That highlights the complexity of developing and marketing Ireland as a tourist destination. It is not merely glossy brochures or cheaper access travel costs on their own which guarantee success; a multi-faceted approach is essential, combining a good holiday destination with high environmental and other standards. Reasonable access costs and a positive word-of-mouth attitude by people who have holidayed here are vital if we are to succeed in the long term as a tourism destination.

In that regard our enviable reputation as a friendly welcoming people is threatened and undermined by the upsurge in crime and vandalism, particularly in urban areas. I would ask the Minister to raise with his colleague, the Minister for Justice the possibility that where a person is convicted in the District Court of violent assault and robbery an early or almost immediate appeal hearing in the Circuit Court is arranged so that the malefactor cannot escape justice by appealing the sentence in the hope that the star witness will not turn up. The Government should provide the DPP with adequate resources to ensure witnesses to such events are brought back and made much of where it is necessary to prosecute for a violent crime against tourists.

Ireland as an island is a natural tourist market. The co-operation the Minister spoke of and his meetings with Baroness Denton are very positive. Ireland as a tourist destination knows no border. I will not labour the point that the violence which was confined largely to the north of the country had an adverse effect on southern tourism. However, I see no reason that, if a similar development occurred in Northern Ireland and it was possible to appoint a contractor under equivalent Northern Irish legislation, the Minister and Baroness Denton should not co-operate to ascertain whether it is possible to appoint a single contractor to carry out one task north and south of the Border to similar standards so that one tourism guide for the whole island could be produced with uniform standards and a uniform system of tourist grading on both sides of the Border.

When talking about practical ways in which this country, North and South, can have its lot improved, without prejudice to anybody's long term political aspirations, it seems a common tourism promotion programme is one of the most obvious ways. I am sure that almost everybody in Northern Ireland — with the exception, perhaps, of one particular person — regardless of their political opinion would agree that Ireland could be treated in large measure as a single unit for tourism promotion purposes. Nothing would be more sensible than to ensure a common all-Ireland system of tourist evaluation and grading and nothing would be more apt towards that end than the identification of one contractor to carry out a similar task north and south of the Border. The shamrock is not a southern symbol.

The process of evaluating a hotel in Warrenpoint is more or less the same as that of a hotel in Carlingford. It would be a tremendous tourism boost if a person travelling from, say, Scotland could pick up one guide with a single set of standards, established by one contractor on a delegated basis from two sovereign Governments, to guide them as to the best tourism accommodation. That would be very simple.

Deputy Andrews spoke about car hire in Ireland. I am aware there are difficulties in terms of insurance, that insurance costs here are very high and because of the tax structure the car hire business operates in difficult circumstances, but the Government ought to think of ways to overcome the disadvantage under which Irish car hire labours, particularly when oriented towards tourism. Like Deputy Andrews, I am in horror when I hear that retired couples from America who holiday here are restricted in hiring a car because they are aged over 70. That is most unsatisfactory. In terms of the taxation of vehicles available exclusively for tourism hire purposes — it is difficult to ring-fence vehicles into a certain category — the State should be willing to forego a significant element of its tax revenues from the motor trade to promote that business. It should also be willing to act as an insurer of last resort or to ensure that adequate reinsurance is available to those willing to insure tourists driving hired cars to minimise costs and restrictions which tend to inhibit self-drive tourism.

This Bill is an excellent initiative. It would be churlish of me to query the logic behind it. I hope it will enable the Irish Tourist Board to concentrate on where it can make a difference. I also hope it will facilitate uniformity and co-operation, North and South, in the manner I outlined. The Minister in introducing this Bill has done an excellent day's work and the House should be grateful to him on that account.

I compliment the Minister on the manner in which the Bill was introduced. It brings into effect major portions of the Arthur D. Little report commissioned by the Minister's predecessor, Deputy McCreevy, who adopted a radical approach to tourism. We must bear in mind that tourism is and will be the greatest growth industry, not only here but worldwide. Tourism is the most decentralised industry and extends to every city, town, village and parish. It has great job potential and if the Minister and the Government are interested in creating more jobs for our well educated young people who are getting good training in the area of tourism including catering and management, everything possible must be done to ensure that State and EU funding is spent wisely and in the most cost effective manner to maximise tourism growth throughout the country in the years ahead.

I refer particularly to the marketing programme outlined by the Minister. During the period 1 October to 17 March as many representatives as possible from Bord Fáilte, the new marketing organisation and the Department of Tourism and Trade should engage in promotional work in the market place to attract more tourists. Marketing is the key to tourism promotion. I have been informed by those with vast experience in the tourism trade and in the hotel and catering business that we are only scratching the surface of a huge market in the US, continental Europe, Asia and elsewhere. The importance of marketing cannot be over emphasised.

Low interest loans should be made available to entrepreneurs who wish to undertake tourism projects, including the extension of existing facilities and the provision of new ones. Low interest loans are far better than grants and are preferred by those in the tourism trade. I am convinced that we must spend a reasonable percentage of State and EU tourism funding on the provision of all weather leisure facilities, including cinemas and conference centres.

This may be the last opportunity Ireland will get to spend money of the magnitude that will be made available from the European Commission between now and the year 1989-99. I am convinced, as are those involved in the tourism trade, that the planning authorities should give priority to planning applications for tourism-oriented projects whether all weather leisure facilities, conference centres, extensions to hotels and guest houses or the construction of new projects. I ask the Minister and the Minister of State to discuss with their Government colleagues, particularly the Minister for the Environment, the issuing of a directive to planning authorities requesting them to give priority to planning proposals that will ultimately create many new jobs in tourism. I am anxious that towns like Killarney, Kenmare, Killorglin and coastal towns in south and west Kerry should be given an equal opportunity to secure State and EU grants under the operational programme for tourism. It is important that all towns in south Kerry should receive a fair share of funding, given that entrepreneurs and others involved in hotels and tourism have invested a large amount of their own resources over the years.

Previous speakers referred to the car hire business. There is a lack of cars for hire, particularly during the peak tourist season. Many in the trade have received complaints from tourists in this regard. I ask the Minister and Minister of State to examine this problem to consider how best it can be resolved. I am also concerned that tourism along the east coast, from Wexford to Northern Ireland is growing at a far faster rate than in the south-west and west. That imbalance must be addressed. The large ferries serve the east coast and it is only natural that those in the east marketing tourism will promote their counties, cities and towns. There should be a more equitable spread of tourism promotion to include the south-west and the west.

I would like the Minister and the Minister of State to investigate the possibility of reintroducing a scheme of grants for tourist roads. Such a scheme was introduced many years ago by Bord Fáilte and it is regrettable it was abolished. I am not referring to grants for repairing and improving county roads but to the repair and improvement of roads leading to piers, seaside resorts, strands, beaches and remote parts of the country to which tourists cannot gain access unless those roads are maintained. Such roads in Kerry are deteriorating rapidly. I ask the Minister and the Minister of State seriously to consider reintroducing such a scheme.

I note from the Minister's statement that tourist figures for last year reveal a 17 per cent increase in US tourists as against only an 8 per cent increase in European tourists. We must bear in mind that when referring to a percentage increase in US tourists we are starting from a remarkably low base. There is great room for improvement in the marketing of Ireland in the USA, in Europe and elsewhere.

I note from the Minister's opening address that there are 1,000 applicants for grant assistance under the EU operational programme involving a total cost of £370 million. That is not a great deal of money when divided among 1,000 applicants. I urge the Minister to ask those responsible for considering such applications to give careful consideration to applicants from the south west and west where additional facilities are necessary to compete with the ever-increasing number of tourists visiting the east coast, particularly Dublin.

I welcome the decision to select an external contractor for the functions to be outsourced and note with interest the manner in which tenders will be assessed. The criteria used will include capability and experience to undertake the role, cost efficiency within the existing fee structures, financial offers to Bord Fáilte for the right to provide the service and collect associated fees, transparency and objectivity in the activities to be undertaken and accountability.

The Minister also stated that a number of key associations have accepted a greater level of responsibility for enforcing standards. Standards are crucial in tourism as one bad operator in an area where, say, 1,000 operate would give the trade in that area a bad name. I welcome the Minister's announcement of the formal recognition of the Town and Country Homes Association and Irish Farm Holidays Association as approving bodies for the Irish homes sectors and the awarding of the shamrock symbol and that he does not rule out the recognition of further associations subject to acceptable standards being met. Greater co-operation is required between State agencies and marketing organisations and we should endeavour to increase tourism standards.

I call on the Minister and the Minister of State to consider favourably a proposal, which I understand has already been submitted to the Department of Tourism and Trade, to establish a conference centre in Killarney. This should be considered urgently as the promoter is anxious to proceed as soon as possible. Such a centre would attract more tourists to Kerry, making additional use of Kerry County Airport. The road network in the area would need to be improved to facilitate such a centre.

CERT is an excellent organisation, provides great training for young people and should come under the aegis of the Department of Tourism and Trade. It has provided many young people with the necessary skills to work in the hotel and catering business.

Kerry County Airport should receive more assistance from the Department. The Minister and Minister of State should play a greater role in bringing together the marketing organisations in County Kerry to market the county as a whole. It is regrettable that, for marketing purposes, the county is split, that SFADCo markets north Kerry and Cork-Kerry Tourism markets south Kerry, including Killarney and the Ring of Kerry. There is an excellent airport in the centre of the county capable of facilitating 737 jets flying in from the Continent and the first large aeroplane from the United States will fly into the airport some time next month. As the present system of fragmented marketing is unsatisfactory, will the Minister consider the matter?

Will he also consider, as an adjunct to Tralee Regional College, a tourism-oriented educational institution in Killarney which could provide an educational facility leading to a diploma in tourism, catering and marketing? Eyebrows were raised when I made this proposal at a meeting of Kerry County Council some months ago, but I believe it is worthwhile. As Killarney is regarded as the home of tourism it is fitting that a tourism educational institution should be established there. I have in mind a number of sites that would be suitable for the location of the institution and the first class hotels in the town could provide work experience for people on the training courses who could ultimately achieve a diploma in tourism, catering and marketing. If the people in the business are not prepared to market the country as a tourism location, tourists will not come here. Tourism destinations must be promoted and marketed.

A tourism educational facility in Killarney, operated in association with Tralee Regional Technical College would not set a precedent. A similar position prevails in Castlebar vis-á-vis University College Galway and another faculty. The same applies in regard to Edenderry and Athlone and there are at least two similar cases in Northern Ireland.

I sincerely hope the Minister's proposals will be successful. There is much at stake also for the country generally. Many involved in tourism predict that that industry could outstrip agriculture in terms of job creation.

When one examines the contents of the Arthur D. Little Limited report and the progress made within the tourism industry in recent years one could not but be enormously pleased with the efforts to restructure Bord Fáilte and to market our country as a tourist destination. The peace initiative offers even greater opportunity, in conjunction with the Northern Ireland Tourist Board, to sell Ireland as a holiday destination at the highest level. There is no doubt that much could be done within the tourism sector to improve goodwill and relations generally between both parts of this island. Even when the Northern troubles were at their worst I suggested the concept of holidays split between both parts, to be promoted by both tourism promotion agencies, through the pooling of their respective resources.

Any examination of recent tourist statistics and the ambitious plans announced for tourism generally would give one good cause to believe we are on the right track. For example, there are expectations of an increase of one million visitors by the end of 1999, leading to the creation of an additional 35,000 jobs. One would search long and hard to find an equivalent within any other sector of our economy. There is also a projected increase of in excess of 1.7 million overseas visitors which would represent an impressive performance, although no more so than the increase in tourism-related jobs from 56,000 in 1986 to 90,000 in 1993, in respect of which the revenue intake increased from £643 million to £1,228 million.

While wishing the Minister and his Minister of State well in their endeavours I must compliment their predecessor, Deputy McCreevy, who assumed that portfolio with the direct intention of shaking it up and making the best possible use of the funding and personnel at his disposal. He applied himself forcefully to that task.

There is mention in the Arthur D Little report of the non-core functions of Bord Fáilte, particularly those in regard to the Tidy Towns competition. The aims of this competition have been realised, thus allowing Bord Fáilte to withdraw. It is suggested that in future it be the responsibility of chambers of commerce or county enterprise boards. No other competitive activity has given our towns and villages such a lift. I live close to Smithboro, as derelict a village as was to be found when I was growing up but which has been rendered beautiful through the Tidy Towns competition in which the local community participated, involving much hard work, sometimes from morning to night. It gave people a great sense of pride in their local environment and some work in which to engage in their spare time. Many people have commented that the village of Smithboro is a gem. Only those like myself who knew its original state would appreciate the amount of work undertaken in its improvement.

The Arthur D. Little report referred to the magazine Ireland of the Welcomes being well established and representing an attractive project for privatisation. Why should State funding be provided for such a project if it is capable of maintaining itself? I represent a non-coastal area where there has not been a tradition of tourism. I have requested successive Ministers to ensure an evenhanded spread of resources while concentrating on areas without a tradition in tourism, bearing in mind particularly the water sports, walking and trekking, equestrian and many other activities now available nationwide.

There has been much talk of the peace initiative and the Delors peace package, money we were told was earmarked specifically for cross-Border projects. It is with regret that I read in the May edition of IBEC News an article entitled “JBC Wants More Money for Motorway”. The JBC is a body comprised of IBEC and the CBI, an umbrella body covering North and South who hold joint meetings. The article stated:

The Delors peace package — and how this should be spent — dominated discussions at last month's meeting of the IBEC-CBI, Joint Business Council (JBC), which was attended by over 50 business representatives from North and South of the Border. The JBC called on the British and Irish Governments to devote some of the extra £240 million in the EU package to constructing a dual carriageway between Newry and Dundalk, as part of the Euroroute EO1 motorway scheme. The Council has warned that this 14-kilometre stretch of the Euroroute EO1 will form a major bottleneck by 1998 unless more funding is allocated now to continue the development of the North-South motorway route. Commenting on the peace package, Doug Riley, JBC Joint Chairman, said that this provides a "unique opportunity" to upgrade the Newry/Dundalk part of the Euroroute and to help transform the level of contact between Belfast and Dublin and between Northern Ireland and the Republic generally.

Mr. Riley went on to recommend the inclusion of Belfast and Dublin in the European Union's proposed city information highways, a very laudable objective to which few could object.

An effort has been made to siphon funding allocated to Border counties to a project which would be more appropriately dealt with under the Operational Programme for Transport. I was greatly annoyed to see the photograph of Mr. Doug Riley, the JBC Joint Chairman with the Taoiseach when they attend the JBC meeting in Belfast last month. The amount of money the six counties south of the Border hope to receive from the £60 million Delors package would mean, in the case of a constituency like mine, that Cavan and Monaghan would receive £1.5 million per year for the next four years. For that money to be siphoned off for use on another project is not acceptable.

Having read the article I immediately sent a fax to the Chief Executive of JBC, Mr. John Kenna and Mr. Colm Larkin in the EU Commission office in Dublin. I pointed out that they should try to ensure that we received this money which was urgently required. I also tabled a question to the Taoiseach which I had hoped would be answered today. I was a little concerned, however, to be told that my question had been transferred to the Minister for Finance, who did not attend the JBC meeting in Belfast and would not know anything about it. The Taoiseach was at the meeting and in my question to him I asked if he agreed with the IBEC/CBI submission regarding expenditure of the Delors package. I have not been afforded the opportunity to question the Taoiseach on this matter, the only way open for me to do this would be to raise it in an unruly fashion in the House but I do not engage in such tactics as I have no doubt the Ceann Comhairle or the Leas-Cheann Comhairle would not condone such unruliness.

There is a lot of funding currently available from INTERREG, the IFI and this fund. However, a board or some other type of structure should be established in the six Border counties to monitor the allocation of funding to ensure that the best possible use is made of it and that the areas to which it is allocated are developed to the maximum extent. We all admit that this funding will not continue at its present level after 1999. That is a realistic viewpoint. Meetings should be held between the Departments of Tourism and Trade, the Environment, Agriculture, Food and Forestry and Arts, Culture and the Gaeltacht to examine ways in which they can promote tourism in their various areas.

I was disappointed with the objection of the Minister for Arts, Culture and the Gaeltacht to the proposed development in Leitrim. The Minister has a role to play in this area because heritage tourism is currently a major attraction. Recent reports indicate that 40 per cent of tourists to this country were interested in heritage tourism. In my own area, a request has been made to reopen the Ulster Canal, which runs close to my home. It goes from Newry to the Cavan border and links up with the Erne. If that link were to run from Belfast, to the Erne, to Ballyshannon, to Shannon and back to Dublin along the Grand Canal, it would be the finest waterway in Europe. That proposal is currently under consideration and representatives of the Departments to which I referred should discuss how such proposals could be implemented.

The most crucial aspect of our tourism industry is the provision of accommodation. We must all thank the many hoteliers and bed and breakfast owners who made accommodation available in their areas despite the fact that the number of tourists were few. They set up such tourist accommodation in the hope that the number of visitors would increase and they should be commended for that.

Seven years ago, a proposal was made in my area to establish a conference centre which could also be used as a display centre for furniture, arts and crafts, etc. We endeavoured to obtain private funding from the local hotel owners. This year, Monaghan town was in a position to host the Federation of Health Boards' annual conference, one of the largest held here. Approximately 600 people attended the conference which was held over three days. Good quality accommodation was provided including hotels, bed and breakfast and self-catering facilities. The work undertaken by those people seven years ago is to be commended.

I referred earlier to the former Minister for Tourism and Trade, Deputy McCreevy, who as Minister visited our county on a number of occasions. He was a very influential figure and during those visits he gave hope to people in community groups and other organisations involved in the development of tourism. He had his own idea of how the tourism industry should be developed. He was an effective Minister and in that regard he should be commended.

During one of his visits to our county, the Minister met a person who was in the process of making available self catering accommodation in an area close to lakes. At that time the person had opened two accommodation units; he is now in the process of completing a sixth unit. That person is selling an all year round product. I brought some of his brochures to the Monaghan Men's Association in Birmingham some years ago. People often want to return home for visits, even in non-tourist seasons and by providing such quality accommodation at a reasonable price, that person is attracting visitors to a rural area. We need more of those people and they should be given our support in what they are trying to do.

Our roads infrastructure was mentioned and Deputy O'Leary referred to the need for funding in this regard. Having been a member of a county council for many years, I vouch for the fact that we never received sufficient moneys for this purpose. We were constantly assessing the condition of our lakes and rivers and that is an area on which there should be a greater concentration, in addition to the roads infrastructure in tourist regions. Nothing would discourage a tourist from visiting an area more than a bad quality road, even if that road leads only to a lake or to fishing grounds. The Minister should examine ways in which money could be provided to improve our roads infrastructure. The Department should ensure that the non-traditional tourism areas making great efforts to attract tourists are encouraged to make the best possible use of EU funds.

County Wexford is not as wealthy as Deputy Leonard seems to think. Many people from my constituency would prefer to live in County Monaghan where there appears to be a surplus of wealth. The Hook, the beautiful area I live in, is a partnership area and is participating in a combat poverty programme which is a clear indication that all is not as well in County Wexford as the general impression suggests. I hope Deputy Leonard will encourage the Monaghan people who can afford to go on holiday to spend time in my lovely county.

County Wexford is the focus of the sunny southeast where it is statistically proven there is more sunshine and less rainfall than in any other part of the country. In spite of what is said tourists are keen to see less rain and more sunshine and they would be well advised to visit County Wexford as often as they can.

The Minister for Tourism and Trade, Deputy Enda Kenny, suggested that tourism is second to agriculture in importance to our economy. I compliment him on his assessment. I hope through him and his Minister of State, Deputy O'Sullivan, tourism growth will be enhanced. With such encouragment tourism will become the major wealth earner. In my travels today I noticed a great many British cars and this is probably due to the peace process. I hope the flow of visitors from Britain continues. There are more British tourists visiting Ireland this year than before and they are enjoying the golf courses and other amenities. Our neighbours should be encouraged to visit Ireland where they will be most welcome.

Rosslare, our major ferry port, is one of the most modern in Europe. Each year 1.5 million passengers travel through Rosslare and the number is growing. The majority is British but there are some French and Americans who have spent time on the Continent. With the excellent facilities on board the ferry and the very good road network from Rosslare, passengers get a fantastic first impression of our country. In fact some County Wexford councillors say we have built fine roads to take the tourism traffic through County Wexford and on to the west. We should try to retain visitors in our area for a longer period. Sometimes, I get into the line of traffic leaving the ferry and much to my disgust few, if any, stop in County Wexford, even to buy an ice-cream. This baffles me.

County Wexford has many attractions but unfortunately they have not received the attention they deserve. Heritage is a major part of tourism. However, I would like to see a balance in the mix of heritage and amenity developments such as golf, equestrian sports and fishing. Not everyone is interested in heritage and other amenities must also be readily accessible.

Development of the heritage of County Wexford is vitally important. It is said that 80 per cent of Irish heritage is in County Wexford and of that 80 per cent is in south west Wexford. The invaders came to Wexford first, whether it was because they thought we were soft and harmless or because of our proximity to Europe I do not know. The Normans arrived in Baginbun near Fethard-on-Sea in 1170. Within three miles of my home on the Hook peninsula there are 30 significant heritage sites.

The county council is supporting local development organisations. Duncannon Fort, built in the 15th century, was the home of King James after the Battle of the Boyne. In the 1940s it was taken over by the Irish Army who, unfortunately, almost razed it to the ground, there was much destruction of our heritage during that time when we seemed to care less about it than we do now. Duncannon Fort is now in the capable hands of the committee of the local heritage group of Wexford County Council, of the partnership to which I referred earlier and of the South Eastern Regional Tourism Organisation and I, for my sins, am the chairman of that group.

Although the amount of money we get from the county council is small, it does prime the local people to raise money, and it has encouraged FÁS to give us much support by putting men and women to work there, to the extent that now substantial works are in train. Taking everything into account we have, over a three year period, spent £150,000. The moat at Duncannon Fort has been cleaned, that took an enormous amount of work to do but it was well worth while. Last year, through the summer student job scheme, quite a number of visitors were brought in. Although in tourism circles 5,000 would be considered modest, we hope to double that this year and our target will increase as the years pass.

In that part of the county we are interested in moving in phases, and one of our problems in the past has been that we are inclined to bite off more than we can chew. However, we intend to do the job properly and restore the fort as nearly as possible to its original state. That will involve the placement of 18 cannon on the fortresses of Duncannon Fort. In the past when people were less conscious of their heritage, the cannon were taken by people in the fort but they have now presented them to the fort trust. This is an indication of the new enthusiasm for our heritage in and around County Wexford which I am sure is evident in other parts of the country. There is no doubt that the authenticity of artefacts is vital because it is difficult to fool people these days, and we are intent on restoring the fort as closely as we can to its original state.

Another very important part of our heritage in that part of the country is the Hook lighthouse, the oldest lighthouse in Europe, built because of the hostility of the waters. It is a place of tremendous danger and all Members present will have seen through the media the tragedies that have unfolded over many years, particularly in the last few years. Since the 11th century we have had lighthouse keepers at Hook Point but, unfortunately, in 1996 the lighthouse will be demanned. The lightkeepers played an important role, but the number of people watching our coastline will now be diminished, which is very sad. Because of its historic significance the Hook lighthouse has a tremendous impact on our heritage. Irish Lights offered it to the community through Wexford County Council and a trust has been set up to develop it as a tourist amenity. Possibly because of its remoteness, great numbers of people come just to sit at Hook Point every day of the week. Whether it is the hostility of the water or the mystique of the Hook lighthouse, we are in the happy position that last year 80,000 people went out to that remote point. For that reason it is our intention to develop the Hook as an area where many more tourists can come to soak up the atmosphere. This is vital for that area which has a combat poverty programme in place because of its remoteness and the fact that unemployment levels are very high.

I should like to speak about Loftus Hall about which a very famous story has been circulating for 300 years of more. I will not tell the story tonight; I will speak to the Minister later and tell him how the devil left Loftus Hall through a crack in the roof. Some say the devil is still around that area — I am not sure to whom they were referring. Loftus Hall is a very fine building which is in need of support, it would be a goldmine for a person with business acumen because it has many facilities, including its own private beach. May we have a quorum, please?

The time has come to deal with Private Members' Business. The call for a quorum is invalid in that it may not be called for during this time.

Debate Adjourned.
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