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Dáil Éireann díospóireacht -
Thursday, 17 Feb 2005

Vol. 598 No. 1

Priority Questions.

National Conference Centre.

Jimmy Deenihan

Ceist:

1 Mr. Deenihan asked the Minister for Arts, Sport and Tourism if the national conference centre steering group has authorised the OPW to issue invitations to tender to the three pre-qualified candidates; when the preferred bidder will be selected; and if he will make a statement on the matter. [5346/05]

The detailed tender documentation for the procurement of a national conference centre in the Dublin area was approved by the NCC steering group on 7 December 2004 and was subsequently issued by the Office of Public Works to each of the three previously short-listed consortia on 10 December 2004.

As I indicated to the House on a number of occasions, the preparation of this documentation has been demanding and time-consuming, with details requiring careful scrutiny and consideration. Accordingly, I was very pleased when the documentation was completed, allowing the next stage of the procurement process to get under way.

The project is being managed by the Office of Public Works under the direction of a steering group chaired by my Department and is being conducted with full regard to, and in accordance with, EU and national procurement rules and regulations, including the Department of Finance's interim guidelines for the provision of infrastructure and capital investments through public private partnerships. While it would not be appropriate for me to comment on the detail of the procurement process under way, I am informed that the NCC project team, headed by the Office of Public Works, is currently engaged in a process of consultation with the tenderers, intended, inter alia, to enable the OPW to provide clarification to and, where appropriate, to take account of issues raised by, tenderers, thereby helping to ensure the quality and robustness of the tenders to be submitted.

Allowing sufficient time for engagement with the tenderers, it is hoped that a provisional preferred tenderer will be selected by mid-year, with the award of the contract, subject to Government approval, following later.

The provision of a national conference centre is a necessary precursor to expanding a business tourism sector currently worth €250 million a year to the country. As such, it remains my personal priority, and that of the Government, to have this project brought to a conclusion at the earliest possible date.

As I mentioned in the House previously, a national conference centre is vital for the future economic development not only of Dublin but of the country. I stated also, and the Minister referred to it, that international business tourism is now worth approximately €40 billion and this country gets approximately 1% of that business. Approximately 4,000 conferences take place throughout Europe, only 1% of which are held here. I appeal to the Minister to do everything possible to speed up this process.

As regards the bidders, will the Minister confirm that one of the bidders withdrew from the competition and that at this stage there are only two tenderers?

I am informed that the Office of Public Works is currently engaging with the three short-listed consortia, although it is true that one of the candidates short-listed has indicated that it will not, in all probability, proceed.

In view of the fact that a national conference centre would encourage approximately 30,000 extra tourists to come here, with a spin-off of about €50 million, such a facility is very important. On a related issue, business tourists who visit other countries in Europe can reclaim VAT. As we will shortly debate the Finance Bill, I ask the Minister to make personal representations to the Minister for Finance to allow business tourists who come here for conferences and so on reclaim VAT. These two issues are connected — a conference centre and the reclaiming of VAT by business tourists to encourage more business tourism in the country.

That proposal is also being brought forward by the Irish Hotels Federation. I confirm to Deputy Deenihan that it is his one which I will be pursuing with the Minister for Finance.

Film Industry Development.

Jack Wall

Ceist:

2 Mr. Wall asked the Minister for Arts, Sport and Tourism his plans for the appointment of a film ambassador from Ireland to Hollywood in the United States; and if he will make a statement on the matter. [5347/05]

International film production is now very big business. A Review of Film Production in Ireland, published recently by the audiovisual federation of IBEC, shows that in 2003, total funding for 179 productions in Ireland, comprising feature films and major TV dramas, independent TV production and animation, came to €320.2 million. The United States was the largest source of non-Irish funding contributing €145.8 million, or 46% of total funding.

During my recent visit to the United States, I visited all the major studios and made the case for Ireland as a location for film-making. I am aware that there are competitive pressures coming to bear on the effort to attract international film productions, particularly from economies where wage rates and other costs are far lower than in Ireland. However, we also have advantages, such as our use of the English language, our historical links, particularly with the United States, the very high skill and experience levels of our film professionals, our relatively low level of bureaucracy and the variety of locations available within quite short distances of one another. The Government has done its part in that film producers now have certainty as the section 481 scheme has been extended to 2008, with the amount that can be raised increasing substantially from €10.48 million to €15 million with effect from 1 January 2005.

In short, I believe we have a great deal to offer to international producers, but it is critical that this is effectively communicated, that personal and organisational relationships are developed that will allow us to best understand how international producers make decisions on location and that we respond most effectively to their needs. Our strengths may not always be immediately evident to someone looking at Ireland from outside as a possible location, but these strengths are very significant and must be properly explained. It is for that reason I suggested, when I was in the US, that it would be useful to appoint a person who would be based in Los Angeles, at the centre of global film production, to make sure that the case for Ireland is made in the best possible way.

I have asked my officials to explore this in conjunction with the Irish Film Board, following which I will determine how best to take this initiative forward.

I welcome the first visit of the Minister to America. I have asked questions about this matter on a number of occasions in the House, and it was a positive move to make. The appointment of a film ambassador would further underpin the value of our film industry. To whom would an ambassador be responsible? Would it be to the Arts Council, the Irish Film Board or, acting on the Minister's behalf, the Department? What infrastructure would be put in place to support the ambassador and what would be the status of the person appointed? Would it be a principal officer or a consul similar to those who represent us in other countries?

Will we see that type of appointment in respect of the film industry? Will the person appointed be an Irish person who is well known in the film industry and obviously has connections? Is that the person the Minister is considering or will a civil servant get the position? Obviously, this person will liaise with Enterprise Ireland and IDA Ireland on the overall context of attracting particular films to Ireland, but I would like to know the infrastructure that will be put in place and the status of the person who will be appointed.

When I was in the United States it was indicated to me by people in charge of major production studios that the absence of a person on the ground in Hollywood was a negative factor in terms of bringing film to Ireland. The major studios like to have somebody whom they can contact relatively quickly. They indicated to me that when locations outside the United States are considered, Ireland is one of six locations which is always given some consideration. They also indicated that it would be beneficial for Ireland to have somebody on the ground dealing with Ireland's cause in so far as attracting films is concerned. It was in that context I put forward the proposal that we should appoint a person who would be based in Los Angeles to assist the Irish Film Board in its work and to attract films to Ireland. Accordingly, I have asked the board and my officials to consider this matter.

We already have a very good commissioner of film, working within the Irish Film Board, whose job it is to attract inward productions. I envisage that he would liaise with the person who may be appointed to the post in the United States of America. The latter will be employed on a contract or agency basis. This has been done quite successfully in other jurisdictions. The person need not necessarily be employed on a full-time basis. One could describe the person concerned, in the loosest possible way and using the generic term, as an ambassador. Ireland is already represented in diplomatic circles by the ambassador to the US and also by a consul general and, in Los Angeles, an honorary consul general. I envisage that the person appointed will liaise with these diplomats in terms of attracting inward production.

We had a successful visit to the United States of America. As Members are aware, we announced during the trip that the film "Lassie" is to begin shooting in Ireland in April. In addition, I received positive indications from at least four major studies of the probability of further film production taking place here. There was a recognition of the advantages Ireland has to offer, namely, that is an English-speaking country; that our topography and seascapes are quite magnificent; that we have professional crews; that we have large number of excellent professional actors and actresses; and that there is certainty about film relief here until the end of 2008 and that the cap attaching thereto has been increased to €15 million. The latter will not change until the end of 2008 at the earliest. If it does change in the meantime, it will only do so for the better.

Abbey Theatre.

Jimmy Deenihan

Ceist:

3 Mr. Deenihan asked the Minister for Arts, Sport and Tourism the position regarding the acquisition of a new site for the Abbey Theatre; the reason the Government failed to announce a suitable site during the theatre’s centenary year; and if he will make a statement on the matter. [5405/05]

As I have previously informed the House, I was authorised by Government to invite expressions of interest, by way of public invitation, from the private sector in participating on the basis of a public private partnership in the capital redevelopment of the Abbey Theatre in or around the vicinity of the site of the existing theatre. The accommodation brief for the new theatre specified the following requirements: to be a signature development representative of a national theatre in the 21st century; to be in an appropriate civic setting and form part of the overall urban regeneration represented by the O'Connell Street integrated area plan and the north-east inner city plan; three significant enlarged auditoria, the Abbey, the Peacock and a third multi-purpose space; a dedicated education and outreach facility; a publicly accessible archive; a restaurant-bar; improved public areas; disabled access for audiences and artists; and best practice theatre production facilities.

My preference would have been to redevelop the theatre at its current location. However, taking into consideration the requirements I have outlined, when it became apparent that excessive and costly additions to the existing footprint would be necessary to render the existing location suitable, I arranged for a trawl of other available city centre locations. As the Deputy will appreciate, suitable locations are in short supply. For a period it seemed a suitable site might be available at the former Carlton cinema in O'Connell Street, but it later emerged that this site was and continues to be caught up in legal complexities.

Last year a site was identified at Coláiste Mhuire on Parnell Square which it appeared might, along with an adjacent building, have provided the necessary footprint to meet the accommodation requirements of the redeveloped Abbey Theatre. Unfortunately, the owner of the adjacent premises was not prepared to sell them to the State for what my advisers considered a fair market price. In the circumstances, there was no option but to withdraw from the negotiations. The Office of Public Works has recently confirmed that the Coláiste Mhuire site on its own is too small.

I regret that our efforts to secure and announce a new location for the Abbey Theatre during the centenary year were ultimately unsuccessful. I assure the Deputy of my unrelenting efforts to identify a suitable location and I am in constant contact with the Office of Public Works to that end. I remain confident that a suitable site will be identified and acquired in due course.

It seems strange that on 1 December the Minister indicated that the OPW had recommended a site and that he was going to put this site forward to Cabinet and did not, as a result, want to announce details about it. Surely the OPW would have reached agreement on a price with all property owners at the location, Coláiste Mhuire, before that recommendation was made. What went wrong? Was agreement not reached before the Minister's announcement or did the OPW only make its offer to the property owners following that announcement?

When I stated that we hoped to identify and announce a site in the centenary year, I was confident that the Parnell Square site would be acquired in its entirety by the Office of Public Works. The OPW was also confident in this regard. However, as the Deputy is aware, the OPW was unable to acquire the site at what it regarded as a fair price. The owners of a portion of the site, 1 Granby Row, which we failed to acquire, indicated to the Office of Public Works that they required substantially more in the way of money. The OPW was satisfied that the amount being sought was considerably more than the market value and entirely unreasonable. In those circumstances, we withdrew from the negotiations.

Nobody should be under the illusion that it is possible, just because the State is involved in a bidding process, to extract more than a property is worth. We are obliged to safeguard taxpayers' money and that is precisely what we did in this instance. That does not mean that we will not be in a position to site the Abbey Theatre elsewhere. However, I will not waste taxpayers' money.

Is Coláiste Mhuire, which is a good site in a good location, off the agenda? In light of the motion passed by Dublin City Council regarding the Carlton Cinema site, is that site back on the agenda for consideration? Are other sites being considered at present? I read a newspaper report in which it was stated that the GPO might be a possible site. Will the Minister confirm that all sites are up for consideration again? Will he confirm that the Coláiste Mhuire site has been eliminated? Are the Carlton Cinema site and other sites up for consideration?

Coláiste Mhuire is in public ownership. The difficulty is that this is not the position in respect of 1 Granby Row. If the latter were to come back into the equation at market value, we would reconsider it. However, this appears to be unlikely.

The Carlton site on O'Connell Street is, prima facie, ideal for a new theatre. The difficulty is, however, that there are legal difficulties attaching to the site and it does not appear that it will become available in the short to medium term.

The current Abbey Theatre site requires a major extension of the footprint. It appears that time and cost would make that option less than desirable and it may, in fact, be completely unviable. The Hawkins House option remains in play and a number of other options are also available.

The Parnell Square site, without 1 Granby Row, does not meet the accommodation brief. Since this is the case, it could not be considered unless 1 Granby Row came back into play. I asked the Office of Public Works to reconsider the situation and I am awaiting a further report from it. Due to the commercial sensitivities involved, Deputy Deenihan will understand why I do not want to go into detail in respect of which sites might be suitable.

Tourism Industry.

Jack Wall

Ceist:

4 Mr. Wall asked the Minister for Arts, Sport and Tourism the way in which he proposes to deal with the ongoing imbalance in the distribution of visitors between the east coast and the remainder of the country; the way in which a better spread of tourism may be obtained; and if he will make a statement on the matter. [5348/05]

Achieving as wide as possible a distribution of visitor numbers across the different regions with an associated spread of tourism revenue, has long been recognised as a major objective and challenge for tourism policy. In more recent times there has been an increasing international trend towards shorter more frequent breaks, which clearly favours easily accessible urban destinations. That has driven, to a significant extent, the more recent growth in Dublin and the eastern region. At a time of overall national tourism growth, I am concerned that the issue of regional spread should be pro-actively and energetically addressed and in that context I am pleased that the programmes and initiatives operated by the State tourism agencies and the action plan set out in the report of the tourism policy review group fully reflect this objective.

In their plans for 2005, both Tourism Ireland and Fáilte Ireland will roll out a number of innovative approaches which should heighten the regional impact of Ireland's marketing activities both nationally and overseas. All regions will feature prominently in the full range of marketing activities; a dedicated marketing fund for tactical co-operative initiatives with the regional tourism authorities and their members will be established for 2005; a region to region approach will be adopted in Britain which will capitalise on direct access links to the regions; specific campaigns promoting the western seaboard will be mounted in North America; a sponsor a region approach will be adopted in Europe whereby each market office will focus attention alternately on a particular Irish region in order to enhance the awareness of the local trade of what that region has to offer; an enhanced consumer website with increased functionality and a strong regional input will provide for more dynamic up to the minute packages to entice the domestic traveller; and a strong focus on event-based holidays will be complemented by a more streamlined and targeted festivals and cultural events fund which will continue to favour the lesser-developed regions.

While many of the actions proposed by the tourism policy review group will have a positive impact on the regional distribution of tourism numbers and revenue, key actions I would highlight include those relating to product development, tourism promotion, access transport and the appropriate infrastructure and arrangements for the delivery of tourism policy at regional level.

Additional information not given on the floor of the House

A major impediment to growth for certain regions, particularly the western seaboard and the north west, and from certain key source markets, particularly the US, has been the lack of good quality direct access. Recent developments, in particular the decision by Ryanair as regards its plans to develop Shannon Airport as a European hub, the announcement by American Airlines on new services from Boston and Chicago and the plans of Continental Airlines for a new direct service to Belfast, provide a welcome boost to the regions as we move into 2005. These developments build on the significant expansion by Aer Lingus of its route network since 2001. Tourism Ireland and Fáilte Ireland, which have been active in their pursuit of access improvements, will help to promote these routes in order to optimise their inbound tourism potential.

As the House will be aware, I have no direct responsibility as regards individual actions or measures relating to tourism promotion or development in so far as specific areas of the country are concerned. These are, of course, a day-to-day function of the tourism agencies.

This is obviously a serious matter for the rest of the country, apart from Dublin. The short-based holiday package now seems to be centred around the capital. As regards recent newspaper reports on a second terminal at Dublin Airport which the Minister, and indeed everyone, welcomed, will this not mean further advancement of the Dublin area as the ideal location for short-based holidays and therefore create even greater problems for the south and the entire western seaboard? I welcome what the Minister said as regards the various offices that now depict the different regions. Is there any mechanism to enhance further usage of the many airports that we now have? Many airports are being actively used as regards access to the city, but we do not appear to be bringing in holiday makers to these designated airports which would benefit the tourist industry as a whole.

Deputy Wall has hit the nail on the head. Access is crucially important as regards bringing people to the regions. A number of developments late in 2004 will help considerably in that respect. Ryanair announced that it would utilise Shannon as a European hub. That is of enormous importance because it means people from Europe will be brought directly into the mid-west and the west in increasing numbers. American Airlines, the largest airline in the world, whose representatives I met last October in Dallas, announced it is to operate daily flights from Chicago and Boston into Dublin and Shannon. This is enormously significant for the Shannon region in particular. It means the single largest airline in the world will be flying directly from the United States into the mid-west, which everyone will welcome. Increasing interest in Ireland by American airlines is also evidenced in the fact that Continental Airlines has decided to fly directly across the Atlantic into Belfast, a first for an American airline.

In general terms there is an increasing amount of interest by national and international airlines in the Irish regions and the constant development of our regional airports is of crucial importance in that respect. This is why I welcome the Minister of Transport's initiatives towards ensuring the regional airports are sufficiently marketed. I am acutely conscious that air access is just one element of travel. There is also the question of ferry access. Increasingly, we see greater numbers of visitors who come by ferry from Britain and France and travel to the regions in particular. I hope that in the course of 2005 we continue to improve access into the regions and in the final analysis that is the key.

A major marketing campaign is currently underway in Britain. Last year saw the greatest number of visitors in its history coming to the island of Ireland. There was a fall-off of about 1% in British visitors, nonetheless. A fall-off of 1% in British visitors is equivalent to a drop of 47,500 approximately. That is why the British market is of such vital importance. A stronger marketing campaign in Britain should bring in more visitors from there who traditionally travel to the Irish regions. There was a substantial increase in American visitors last year and I believe that will be replicated in 2005, judging by what I encountered on my visit to the United States when I addressed various meetings on the attractions of Ireland for American tourists.

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