Vol. 467 No. 4
19 Ms O'Donnell asked the Minister for Tourism and Trade if he is considering the introduction of financial assistance to persons who are prepared to upgrade their guesthouses, bed and breakfast accommodation and hotels provided they are registered through the State registering system for official accommodation; and if he will make a statement on the matter. [13423/96]
As I indicated in response to previous similar Dáil questions, the Operations Programme for Tourism 1989-1993 did not provide support for tourist accommodation projects. Based on the readiness of the commercial market to respond to growth in visitor numbers without grant assistance this policy was, in general, continued under the current operational programme.
The current programme recognised, however, that there were a number of market segments where the quality of existing accommodation was deficient and included a provision to assist on a selective basis, investment in certain areas. These are: accommodation related conference and leisure facilities; a limited scheme of accommodation improvements to existing small and medium sized hotels with a current capacity of up to 100 bedrooms and graded up to and including three star; limited grant aid for certain specialist accommodation needs such as caravan and camping park facilities and upgrading and improvement of existing buildings for hostel or other specialist accommodation and associated facilities on branded walking routes; provision of new and improved accommodation at approved outdoor pursuits centres in remote areas currently without appropriate accommodation; improvement of existing accommodation; at approved residential equestrian centres; horsedrawn caravan and motor-home investments; the additional cost of providing, in existing hotels, suitable accessfriendly accommodation for people with disabilities; and improved access for people with disabilities at hotels and major visitor centres. In keeping with the overall strategy in the programme, support is aimed primarily at the enhancement of existing investment rather than supporting new development and all accommodation supported must be registered or approved, as appropriate.
The funds provided under the programme for tourism development projects are generally over-subscribed and, unfortunately, those available for specialist accommodation related developments are fully committed. These and other aspects of the programme's operations will be considered fully in the context of the upcoming mid-term evaluation of the programme.
Other EU funded programmes such as the Programme for Agriculture, Rural Development and Forestry and the Leader II Programme administered by the Department of Agriculture, Food and Forestry and the local urban and rural development programme provide support for smaller tourism initiatives. In the Border counties assistance may also be available under the IFI and INTERREG programmes and the Programme for Peace and Reconciliation, again on a limited basis. This includes limited provision for accommodation projects, including, in some cases, guesthouses and bed and breakfast establishments, on a basis compatible with that in the Operational Programme for Tourism.
All registered and approved tourism 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 sum of £52 million of this £208 million fund has been specially earmarked for tourism projects throughout the country. However, I understand that virtually all of the funds available under the scheme have been committed at this stage. A similar scheme especially for the Border counties, was recently introduced under the Peace and Reconciliation Fund. 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 generous tax relief under the scheme.
How much was made available in grant aid under the headings outlined by the Minister as categories which would be deemed eligible for such aid in each of the last three years?
I do not have that detailed information to hand. If I can get the information I will forward it to the Deputy. While a number of the schemes, particularly those that relate to the Border areas — the IFI, INTERREG and the Peace and Reconciliation Fund — do not have specific categories of tourism targeted funds available, it is possible to construct assistance, depending on the nature of the project, under the schemes. If I can get details of the draw down of funds in the years involved, I will forward them to the Deputy.
Will the Minister agree that some of the accommodation referred to in the question is deficient in standard and needs improvement? It does not help the tourism industry to have sub-standard accommodation in certain areas. Does the Minister not consider it a priority to try to improve these standards?
This is one of the things that happened following the Little report on the future structure of Bord Fáilte. The standards are those of Bord Fáilte but they are now being implemented by companies which tendered for that work. Standards are rising rapidly.
I agree we do not want sub-standard accommodation. Any accommodation assisted under the programmes I mentioned must be registered and approved. I have said on a number of occasions that investment should be made on the basis of quality and commitment to a sustainable development of the tourism sector. That is in everybody's interest because this is an area where the economic dividend can be paid to everybody. Experience of poor accommodation will not secure good ambassadors for our standards. We try to project the image of quality in all we do — personnel, service facilities and product.
I share the Deputy's view that we must not pussyfoot around accommodation standards. That is why there is a requirement that such accommodation is registered and approved if it is to be assisted to any extent.
Is the Minister satisfied that the level of funding for the Border areas reflects the additional funding due under INTERREG? I am aware that the peace initiative funding is additional. With regard to how the money is spent, does the Minister accept that of the six Border counties only Donegal and, to a lesser extent, Sligo, have a developed tourism industry and that they benefit to a greater extent than the other counties by virtue of the structure of funding for tourism? Under that structure projects costing over £100,000 benefit to a larger extent. Does the Minister agree that, while the better off counties in the tourism sector are doing well, the lesser developed Border counties which did not have a traditional tourism industry and suffered greatly as a result of the past 25 years do not have the same advantage?
It was difficult for people north and south of the Border to invest in a realistic way, particularly in view of what was required. The outstanding exception was the development of the Slieve Russell, which was carried out during the troubles and was an outstanding success before and since the ceasefire.
Everybody was eligible for low interest loans under the access to finance scheme and these funds are now committed. People told me on numberours occasions that they did not want grants and would prefer access to cheap money. On meeting delegations from the Border counties, I find an increased understanding that this is the sector in which much of our future lies because of its economic importance and potential for job creation.
Under the IFI fund, the hotel and guesthouse improvement scheme applied to projects in the Border counties of Donegal, Leitrim, Louth, Cavan, Monaghan and Sligo. This scheme was aimed specifically at assisting one and two star hotels and guesthouses to improve the physical standard of their accommodation and guest facilities. On completion of works, hotels were required to have a minimum total of ten bedrooms with private bathrooms and guesthouses were required to have, at a minimum, a total of five bedrooms, four with private bathrooms. A maximum grant of 33 per cent applied to eligible works for the various areas.
New accommodation will probably not be funded under the INTERREG programme in view of the limited funds available. With regard to the peace and reconciliation programme for the Border counties, under measure 1 of the sub-programme II for urban and village renewal and tourism, there may be assistance towards the improvement of tourist accommodation. This area is being examined by a task force comprising representatives of the county councils, CEBs, RTOs, the Arts Council and other relevant bodies. There may be scope for the provision of assistance for such accommodation under that heading.
How many of the projects which have been unable to be registered or to receive hygiene certification due to the dispute by environmental health officers have been debarred from receiving assistance under the various headings referred to by the Minister?
I cannot answer the Deputy's question. I have received some queries on this matter and the number appears to be higher along the east coast. I understand negotiations are ongoing between the relevant bodies and I hope the dispute is resolved quickly.
