Dáil Éireann díospóireacht -
Tuesday, 16 Apr 1996

Vol. 463 No. 8

Ceisteanna—Questions. Oral Answers. - Tourist Accommodation.

Ivor Callely

Ceist:

13 Mr. Callely asked the Minister for Tourism and Trade his views on whether equality and fairness should apply in the provision of funding and grants to registered bed and breakfast projects in view of the fact that the funds and grants available to registered bed and breakfasts are limited and that under the Operational Programme for Tourism, 1994 to 1999, such funds and grants are allocated on a strictly selective basis; and if he will make a statement on the matter. [7563/96]

Mr. E. Kenny

The Operational Programme for Tourism 1994-99 focuses primarily on the development of top quality tourist attractions and amenities, training and overseas marketing primarily to assist Irish tourism generate increased visitor numbers and revenue. Assistance under the programme for new accommodation in the bed and breakfast category applies only where such facilities are associated with other tourism developments.

The provision of commercially driven facilities such as tourist accommodation and catering has to be a matter for the individual entrepreneur and the tourism industry itself, in direct response to their assessment of the market opportunities generated by increased tourism.

However, to assist with further expansion plans, all registered and approved tourist accommodation has been deemed eligible for low interest loans under the access to finance scheme launched last September by the Minister for Enterprise and Employment. A total of £52 million of this £208 million fund has been specially earmarked for tourism projects. A similar scheme confined to the Border counties was recently introduced under the Peace and Reconciliation Fund and certain tourism projects are also eligible under this scheme. Moreover, investment in registered or approved tourist accommodation in any of the resort areas designated under the pilot tax relief scheme for certain resort areas may also qualify for tax relief under the scheme.

Mr. Andrews

The Minister's response smacks of discrimination and it is clear that the philosophy of the Government is anti-bed and breakfast facilities. The Minister did not reply to the specifics of Deputy Callely's question. As one who travels the country and who uses bed and breakfast outlets a great deal in my pursuit of the elusive fish, I know and appreciate them and I am sure the Minister will agree they give a service second to none. In those circumstances, I ask the Minister to be more generous under the Operational Programme for Tourism and to answer the question specifically.

Mr. E. Kenny

As Minister for Tourism and Trade I was happy to launch the development process of the Deputy's beloved Corrib-Mask fishery to which he is welcome every year with his entourage.

Mr. Andrews

The Minister has some excellent bed and breakfast outlets in his county, for example, near Lough Mask.

Mr. E. Kenny

The Government is not anti-bed and breakfast outlets. I am sure the Deputy is aware of the changed format and the new company dealing with the standards and quality of the bed and breakfast sector which I strongly support.

Mr. Andrews

The Minister should answer the question.

Mr. E. Kenny

The growth in this area is self-evident from the number of international users. On assistance for the bed and breakfast sector or any other approved accommodation, the access to funds scheme, introduced last year by the Minister for Enterprise and Employment with £52 million included for tourism projects, was established as a result of claims made by people in the sector who did not want grants but access to cheap money. That money was made available and is being used. The scheme is successful. In addition, as Deputy Leonard will be aware, a certain amount is available under the Peace and Reconciliation Fund for Border areas and that is being used successfully also.

Mr. Andrews

For some reason, better known to him, the Minister continues to refuse to answer Deputy Callely's question. What was the take-up of either grants or loans by the bed and breakfast sector? That might help the Minister to focus his mind on the question.

Mr. E. Kenny

With respect to Deputy Callely, and to Deputy Andrews's interpretation of his question, that is not the question I was asked.

Mr. Andrews

It is.

Mr. E. Kenny

I will obtain information on the take-up by the bed and breakfast sector from either the Peace and Reconciliation Fund or the low interest fund and forward it to the Deputy.

Mr. Leonard

Will the Minister agree that in areas such as mine, not traditionally known for tourism, although they are trying to develop rural tourism, the 20 per cent to 25 per cent grant aid for bed and breakfast facilities is meagre and does not provide any incentive? The Minister referred to the Border fund but an EU official, Carlo Trojan, stated that he favours a cocktail of measures to supplement such funding. Will the Minister consider providing additional funding to these areas from the Peace and Reconciliation Fund to supplement those grants?

Mr. E. Kenny

The Deputy raised an interesting point. The development of the tourism sector generally in the Border counties has been hampered by 25 years of violence and, as a result, a great deal of infrastructural development must take place. While the portion of the Peace and Reconciliation Fund available may not be as much as one would wish, it is an initiative of sorts for the commencement of that development. I will take the Deputy's views into account and I will examine the various elements of the cross-Border funds for accommodation purposes to see if we can agree on a measure that might be of some benefit.

Mr. Killeen

Are there areas where a lack of registered accommodation is inhibiting the growth of tourism and does the Minister have plans to address that problem?

Mr. E. Kenny

Yes, there are some options in respect of unapproved accommodation and I am considering them. There is a lack of accommodation in many parts of the country not only in the bed and breakfast sector but also in regard to hotels and other types of accommodation. These issues must be examined in terms of the dispersal of the visitors so that as many areas as possible can benefit from the revenue generated.

Mr. M. Ahern

Will the Minister discuss with the Minister for Finance the changes in tax allowances for resort areas? Some of those changes have been detrimental to projects planned in the past six to nine months. The Minister introduced this scheme on 1 July 1995 and it boggles the mind that it is being changed nine months later. Between now and Committee Stage of the Finance Bill I ask the Minister to use his good offices to ensure the Minister for Finance will see reason and return the scheme to its original form.

An Leas-Cheann Comhairle

That is somewhat outside the scope of the question.

Mr. E. Kenny

Deputy Andrews dealt with this matter earlier in his usual articulate way. I would point out to the Deputy that there is no change involved for people seeking approval under that scheme if they had already made application for planning permission. The change only refers to a specific type of accommodation; it does not refer to any of the other lists of tourism facilities which are extensive.

Mr. M. Ahern

What about a person who has spent £30,000 or £40,000 on preparation but who had not yet applied for planning permission?

Mr. Molloy

A three year pilot programme.

Mr. M. Ahern

I hope the Minister will take account of that because, under the changes, such people are excluded. Some people spend considerable amounts of money before an application is made for planning permission. The Minister should discuss this matter with the Minister for Finance.

An Leas-Cheann Comhairle

We are outside the scope of the question.

Mr. E. Kenny

This is an important issue. There is no change involved where a planning application was lodged but the Department of Finance is willing to consider the question of the preparations made by proposers leading up to that stage. I will be happy to consider any case of which the Deputy is aware.