Dáil Éireann díospóireacht -
Wednesday, 5 Mar 1997

Vol. 475 No. 8

Written Answers. - Tourism Development.

Ivor Callely

Ceist:

231 Mr. Callely asked the Minister for Tourism and Trade the moneys and incentives, if any, available to the private sector for the promotion and development of the Irish tourism industry; the total moneys which were available in 1996 in this regard; and if he will make a statement on the matter. [6178/97]

Minister for Tourism and Trade (Mr. E. Kenny)

The principal source of incentive for the promotion and development of the Irish tourism industry is the Operational Programme for Tourism, 1994-9. The Operational Programme for tourism aims to generate investment of more than £650 million for Irish tourism over the period 1994 to 1999, of which £369 million will be provided in the form of grants by the European Union.

Grant assistance for the private sector is primarily available under Sub-Programme 2 (Product Development) and Sub-Programme 3 (Marketing). The total European Regional Development Fund (ERDF) aid available under these sub-programmes amounts to £190 million for the period 1994 to 1999. The selection of projects for assistance under the Product Development and Marketing Sub-Programmes of the Operational Programme for Tourism is determined in the case of each application by independent management boards established under the programme. Details of European Regional Development Fund grants for individual projects are contained in the annual reports of the management boards, copies of which have been laid before both Houses of the Oireachtas. In the period 1994 to end 1996, it is estimated that the total amount of European Regional Development Fund aid spent under these sub-programmes amounted to some £49.5 million.

Funding for private sector tourism initiatives is also provided under other operational programmes, which are the responsibility of other Ministers, including the OP for Agriculture, Rural Development and Forestry and the OP for Local Urban and Rural Development — and a number of other Community Initiatives such as the Leader Programme, INTERREG Programmes — both Northern Ireland and Maritime — and the Special Programme for Peace and Reconciliation. Also, the International Fund for Ireland provides assistance in the Border counties for certain tourism enterprises. As I do not have responsibility for the administration of these other programmes, I do not have available details of their final 1996 expenditures.

All registered and approved tourism accommodation is also deemed eligible for low interest loans under the access to finance scheme launched last September by the Minister for Enterprise and Employment. Some £52 million of this £208 million fund was specially earmarked for tourism projects throughout the country. A similar scheme especially for the Border counties, was introduced under the "Peace and Reconciliation" fund. At this stage, the tourism funds under both these schemes have now been fully committed.

Finally, there is the pilot tax relief scheme for certain resort areas under which investment in registered or approved tourist accommodation in the 15 resort areas designated may also qualify for generous tax relief and the business expansion scheme which makes provision for tax relief on investments made in certain tourism companies.

Overall, I believe the current range of incentives and grant opportunities available for tourism development will serve to provide a sound platform for tourism growth well into the future.