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Dáil Éireann díospóireacht -
Tuesday, 18 Nov 2003

Vol. 574 No. 4

Other Questions. - Tourism Industry.

Joan Burton

Ceist:

85 Ms Burton asked the Minister for Arts, Sport and Tourism the consideration he has given to the implementation of the recommendations of the report of the tourism policy review group, New Horizons for Irish Tourism: An Agenda for Action; and if he will make a statement on the matter. [27205/03]

Gerard Murphy

Ceist:

86 Mr. Murphy asked the Minister for Arts, Sport and Tourism his plan of action to activate the 70 individual recommended actions contained in the tourism policy review group report; and if he will make a statement on the matter. [27366/03]

I propose to take Questions Nos. 85 and 86 together.

I refer Deputies to my response to the priority question earlier in which I outlined the current position and next steps in the setting up of the high level implementation group to drive forward and monitor the comprehensive action plan recommended by the tourism policy review group. With regard to the recommendations directed at my Department and the State tourism agencies, a number of the actions are already underway. The tourism unit of the Department has been reconfigured, advertisements seeking expressions of interest in the national conference centre have been placed in the media and bilateral consultations have taken place with the Department of Finance on taxation issues and with the Department of Health and Children on the anti-smoking regulations.

I have been advised that Fáilte Ireland is taking account of the relevant recommended actions and suggested timescales, set out in the report of the review group, in its operational planning for the remainder of this year and next year. In addition, Fáilte Ireland has announced a new initiative to address the cost of insurance across the sector in co-operation with industry representative groups, including the Irish Hotels Federation and the Restaurants Association of Ireland. Similarly, Tourism Ireland Limited has completed an examination of the recommendations in the report that impact on areas within its remit, and has incorporated a number of these into its three year marketing strategy and detailed operating plan for 2004.

The Minister will shortly enter what will probably be the most important period of his term of office when Ireland takes over the Presidency of the EU. What aspect of the Presidency will be helpful in overcoming our difficulties with competitiveness and the perception that Ireland is an expensive country for tourists etc.? As many important meetings will be held in Ireland, it will be an ideal opportunity to portray Ireland as a tourism attraction within the EU. How can the Minister and other members of the Cabinet use their position to portray Ireland in a positive light? Have there been meetings on portraying Ireland in a positive light as we prepare for what will be the most important six months in the lifetime of the Government and during the Minister's term of office as Minister for Arts, Sport and Tourism?

I am pleased Deputy Wall has addressed this question because the first six months of next year, during which Ireland will hold the Presidency of the European Union, represents an ideal opportunity to portray Ireland in the most positive manner possible on the European stage. In that context, we are currently formulating a comprehensive cultural programme which will illustrate the best of Irish traditional culture. This means 1 May will be a very special day when we will celebrate the accession of ten new countries to the European Union. I have written to ten towns throughout Ireland, through their councils, requesting they participate on that day in the celebrations. I have offered to make funding available to the towns in question to the tune of approximately €50,000 each. It will culminate on the evening in question in a major concert in Dublin which I trust will be relayed by RTE television and through the European Broadcasting Union across the European Union.

In addition, we have planned various other cultural events and exhibitions. Some of these will take place in Brussels and others will take place in Ireland. I am pleased the Presidency coincides with the Bloomsday Festival which will commence in April and continue to the end of August, climaxing on 16 June 2004, when major celebrations are planned in and around Dublin. This is a comprehensive cultural programme which will portray Ireland in the most positive light possible. There is a relatively generous allocation from the Department of Finance, through the good graces of the Minister, Deputy McCreevy. We will take the opportunity of holding forth all that is good and great about Ireland.

In response to Deputy Ó Snodaigh, the Minister said he was having discussions with the Minister for Finance regarding section 481. In a similar response to my previous question he said he would not pre-empt the budget. Is this a contradiction? Given that one of the recommendations of this fine report is that the Government should tackle VAT and excise duties, there is an onus on the Minister and the Minister for Finance to do something in the budget about this issue. If there is a clear implementation strategy and timeframe surely it must begin with the budget. This whole exercise will be futile unless there is a response to excise duty and VAT in the budget.

A strong recommendation has been made in the report on human resources. Will the Minister outline his policy on the development of human resources in the tourism industry given that many of our personnel are brought into this country because of a lack of chefs, receptionists and other expertise?

An Leas-Cheann Comhairle

The Deputy must be brief.

The Minister said the national conference centre is one of the facilities he has put in place. There was an announcement in one of yesterday's newspapers that a private investor is going ahead with a conference facility which will cater for approximately 16,000 people. Given that the Minister's conference centre will cater for approximately 2,000 people, is it a waste of a resource if this fine facility goes ahead in Dublin? I would like his views on going ahead with a facility that will cater for just 2,000 people when a private investor will cater for 16,000 people, including other ancillary facilities?

On the issue of the conference centre, I cannot prevent anyone in the private sector from bringing forward proposals, obtaining planning permission and constructing a conference centre or any other edifice. However, I want to be clear about one thing, the Government is proceeding with the construction of a national conference centre. It has been advertised and we are awaiting expressions of interest. I anticipate this conference centre will be worth in excess of €50 million to the tourism industry in the greater Dublin area in years to come. The objective is to try to have the conference centre completed by the end of 2007.

On indirect taxes, it is important to point out that Ireland is one of the lowest taxed economies in Europe. This is due in the main to the good work of the Minister for Finance since 1997, which should be acknowledged. In addition, corporation tax at 12.5% is extremely low. Tax on business generally is low compared to other countries.

On section 481 and the budget, given that I could not give Deputy Deenihan any promises in regard to indirect taxes, neither could I give Deputy Ó Snodaigh any guarantees or promises in regard to section 481, so there is no contradiction.

Deputy Deenihan's question on the recruitment of young people into the tourism industry is tremendously important. There are a number of areas where Fáilte Ireland can play a key role in this regard. In so far as training courses are concerned, it is important that Fáilte Ireland should make it an objective that graduates from Fáilte Ireland operate or support courses which are proficient in the use and application of new technologies in the industry. In regard to recruitment itself, it has been recognised that we should establish a tourism career promotions group comprising key stakeholders, including students, to formulate a national recruitment plan designed to strengthen linkages with schools, communities and career guidance services.

The Minister is seeking expressions of interest. He may recall in September 2002 when he looked for similar expressions of interest for the national stadium that what he received was not attractive. Regarding expressions of interest in this instance, what will be the Government's input? Will this facility be solely built by the private sector or will it be a public private partnership? If he does not receive expressions of interest, will he go ahead in some other form with the national conference centre?

To say the least, I expect the expressions of interest to be far more interesting in the sense that the successful bidder will be guaranteed a customer, which will be the State. In other words, the State will lease the conference centre from the successful tenderer. It is intended that the conference centre will be built in its entirety by the private sector. It is true that the State may retain, in the course of negotiations, an option to purchase the entire centre at a given date in the future. For example, during my time as Minister for Justice, Equality and Law Reform, the Midlands Prison was constructed and financed by the private sector. It was leased back to the State and the State had an option to purchase, which worked very well. This scheme, which I admit is relatively complicated in terms of its legal definitions and so on, can work equally well.

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