Vol. 599 No. 5
4 Mr. Deenihan asked the Minister for Arts, Sport and Tourism if he has completed his trawl of city centre locations for the proposed relocation of the Abbey Theatre; if a suitable location has been identified; and if he will make a statement on the matter. [9238/05]
As I previously informed the House on a number of occasions, 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 PPP, in the capital redevelopment of the Abbey Theatre in and-or around the vicinity of the site of the existing theatre.
The accommodation brief for the new theatre, which was drawn up in consultation with and agreed by the Abbey board, 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 north-east inner city plan; three significant enlarged auditoria, Abbey, Peacock and a third multipurpose 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 present location. However, taking into consideration the requirements which I have outlined, when it became apparent that costly additions to the existing footprint and that the timeframe for the acquisition of the additional properties necessary to render the existing location suitable was indeterminate, I arranged for a trawl of other available city centre locations. That trawl has not yet reached a conclusion.
As I previously informed the House, late last year a site was identified at Coláiste Mhuire on Parnell Square which it appeared might, 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 to me that the Coláiste Mhuire site on its own is not an option.
The former Carlton cinema site was also in the frame as a possibility. I am aware there was a High Court judgment with regard to the compulsory purchase order on this site. However, it is for the parties to that judgment, which do not include my Department or the Office of Public Works, to evaluate the implications of the judgment. I understand that a judicial review on the decision of Dublin City Council's agreement with the selected developer of the site is also outstanding. Until such time as all legal issues, to which neither my Department nor the OPW is party, are resolved, it would be premature for my Department of the OPW to engage in negotiations on the Carlton site. I assure the Deputy that I view redevelopment of the Abbey Theatre at this location as a real option which I intend to explore further as soon as issues around the CPO have been resolved.
Recently the Dublin Docklands Development Authority offered a site at George's Dock and I have asked the OPW to explore the options for this site with the DDDA without a commitment on either side. Exploratory discussions are ongoing.
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.
The Minister's reply is like a long playing record. Will he define what is "due course"? Will a national theatre be built during the Government's term or is there a timeframe for it? Does the Minister still propose to provide the theatre through the public private partnership model? Has the present site been ruled out completely, given recent articles in the national media?
Has the OPW gone back to the owner of the property adjacent to Coláiste Mhuire, where there was a problem regarding the price, to renegotiate the purchase of the site? Given the recent High Court judgment, which upheld Dublin City Council's compulsory purchase order, the Carlton Cinema site must be back on the agenda. How long will it take to resolve outstanding matters relating to that site? Is the OPW involved in this regard? Does the Minister think a decision will be made on the relocation of the national theatre during the Government's term?
The short answer is I do. I am reluctant to give timeframes because we were unable, for reasons beyond our control, to announce a new site for the Abbey Theatre during its centenary last year.
The Carlton site is subject to a judicial review. There is the possibility of a developer going to the Supreme Court following a recent High Court decision. It is impossible to give a timeframe in respect of these proceedings.
We did not return to the Coláiste Mhuire site because there was no way agreement could be reached with the owners of the portion of the site in question, which is in private hands.
With regard to the present location of the Abbey Theatre, I have pointed out on a number of occasions that time and expense rule out the possibility of a new theatre on that site. The OPW is in consultation with the Dublin Docklands Development Authority regarding a site at George's Quay, which has entered the frame. No hard and fast decision has been made because none can be at this time. However, everything is being done to resolve the situation.
The Lord Mayor suggested at a recent Dublin City Council meeting that an opinion poll should be conducted on the use of the Carlton Cinema as the new site for the Abbey Theatre. Does the Minister agree with this proposal? Would this be a good way to proceed?
I do not understand what impact it would have on the legal position. I cannot see how it could change the situation in any way. It might indicate a preference on the part of those polled regarding where they believe the theatre should be located but it would not resolve the legal difficulties because people have property rights under the Constitution, which they have a right to pursue in the courts.
5 Mr. Wall asked the Minister for Arts, Sport and Tourism his views on the implication for tourism of price increases by some public houses and accommodation providers on the weekends of soccer and rugby internationals and on other weekends of public holidays or events, particularly in view of a number of surveys showing that this is a deterrent to tourists returning to Ireland; if he has had discussions with the Department of Enterprise, Trade and Employment in this regard; and if he will make a statement on the matter. [9237/05]
Last year, we had a record number of foreign visitors. Visitor attitude surveys continue to record a high level of satisfaction with the overall visitor experience, although there have been significant declines in satisfaction regarding value for money. The Government, the tourism agencies and the industry, by and large, have been addressing this competitiveness challenge. Actions that undermine our efforts in this regard are not welcome.
On the question raised by the Deputy, we live in a free market and traders are, subject to a few exceptions, entitled to charge what they want. The price of drink, for example, is a commercial issue outside my remit. No legislation prevents publicans from increasing their prices prior to or during an event. One statutory instrument that protects consumers, however, is the Retail Price (Beverages in Licensed Premises) Display Order 1999, which obliges all premises, where alcohol is sold, to display the price of alcohol and soft drinks both inside and outside the premises. This gives consumers the information they need to decide whether to accept the prices displayed.
I do not believe in adding to existing regulation. The consumer is the ultimate regulator and consumer power can be influential. The problem is that Ireland tends to have a weak consumer culture. We tend to be reluctant to complain about price, service or quality even when we have legitimate grounds for so doing.
The Director of Consumer Affairs has been proactive on the drinks pricing issue lately. Her office carried out a number of price surveys of pub prices in the past few months with a view to facilitating consumer choice when attending sporting and other events. The results of these surveys are available on the director's website, www.odca.ie. It is encouraging that surveys of prices by the director have shown that the problem of sharp increases in drink prices at the time of these events is not as marked as in previous years. The overall impression from the surveys carried out by the director’s office over the past 12 months suggests that the extent of the practice of increasing drink prices around special events may have been exaggerated and it is important for the House to note that.
No legislation governs rates charged by accommodation providers. There is, however, one limit on hoteliers. All hotels must be registered in the register of hotels maintained by Fáilte Ireland. Under the registration system, hoteliers are required to have a notice stating the maximum prices they charge for accommodation and they are not supposed to exceed those prices. If consumers are asked for more than the stated maximum, they should take this up with management. If they find they have paid more and can prove that, they should report the matter to Fáilte Ireland or its agents who can take the matter up with the hotel concerned.
Excessive profiteering around special events may be legal. It may be capable of being rationalised from a narrow, short-term economic perspective. However, this practice by a tiny segment of the trade is not helpful to the reputation of a tourism destination. We only have to think of our own reaction if confronted by these practices at foreign destinations. A few operators might ask themselves whether the short-term profit is worth killing the goose that lays the golden egg. At the same time, however, it is unfair to tar the entire sector with the same brush.
Additional information not given on the floor of the House
I have not discussed this issue with my colleague the Minister for Enterprise Trade and Employment but I have noted that the recent price surveys of the Director of Consumer Affairs, allied to increased consumer vigilance, can have a positive effect. The director said recently, following the latest rugby international in Lansdowne Road:
I am glad to note that only two out of the 26 premises surveyed raised their prices on Saturday for the rugby match. I would regard this a positive response to public awareness.
This is welcome news and confirms my view that the best and ultimate regulator is the consumer.
I welcome the Minister's reply. I also welcome the survey carried out by the Director of Consumer Affairs because it highlighted that a number of licensed premises in the vicinity of the venues of major events had retained regular prices, probably as a result of public pressure. Despite the success of the director's initiative, headlines such as "Money Mad Culture Turn Off for Thousands of Dutch Tourists" have still appeared in newspapers. This headline will have been reciprocated in Holland. However, the reporter only spoke to four or five tourists, yet a damaging headline, which portrays a money mad culture, was used. What can the Department do to address recent negative publicity, particularly in light of the success of the Director of Consumer Affairs on the drink prices issue? Perhaps we might also see what we can do to rectify the bad media we are getting — the "Battle for Britain" returns. The Minister urged the tourism industry to review its prices. Tourists are rejecting "rip-off Ireland". We could go on, but when one gets into the detail of the reporter's presentation, one finds that we may only be talking about individuals. The entire tourism sector is being branded, although, as the Minister stated, the problem may be limited to a few individuals. What can we do to rectify that? Is there anything within the Minister's remit, that of the Director of Consumer Affairs, or that of another Department? We must do something to alleviate that problem. The reporters want to make something of it, but that is of no benefit to us, since there are no figures in support of the headlines.
I certainly agree with Deputy Wall that there has been a great deal of very bad publicity that has reflected poorly on the industry at large, especially over the past year or so. Shortly after I entered office, I pointed out that we had a problem with competitiveness and that we would have to address the issue. Various measures to do so have been undertaken since. We now have more special offers in the tourism industry. The Restaurants Association of Ireland and the IHF came forward with a very innovative tourism menu that meant that visitors could obtain lower prices in restaurants at certain times. In fairness, the contribution of the office of the Director of Consumer Affairs has been significant. We should all appreciate that we will not remove the media glare unless the underlying problem is addressed. I agree with Deputy Wall that a small number of people in the drinks, accommodation and food industry are giving the remainder a bad name.
To address that, I was pleased that the Director of Consumer Affairs undertook surveys, for example, last March, in and around Lansdowne Road. He found that six in every ten publicans raised prices during special events and sporting occasions. I was also very pleased to note that the Director of Consumer Affairs subsequently took up the practice of advertising the results. Afterwards, the media comment proved extremely positive for the industry. People became worried that the office of the Director of Consumer Affairs would advertise their practices in the media, and we saw an immediate reluctance to increase prices. The media can do the industry a good service by pointing out where people are engaged in practices that make our economy, and especially our tourism industry, appear unattractive or uncompetitive. Those who increase prices for the sake of the occasion to take advantage of the punter do a grave disservice to the industry and nation at large, and especially their colleagues. It is very important that this House continues to say to all comers that such practices are simply not acceptable and that we will not tolerate them.
6 Mr. Ferris asked the Minister for Arts, Sport and Tourism if he will make a statement on the Ballybunion cultural village project. [9512/05]
I presume the Deputy is referring to the Tinteán Theatre, Ballybunion, which was awarded grant support totalling €825,235 by my Department in 2001.
To satisfy the conditions attaching to the grant, the promoters were required to provide evidence that the balance of the capital funding required to complete the project and bring it to operational status was available. That was done in 2002, when confirmation was received that the total project cost would be approximately €2,500,000, to be financed by a contribution of approximately €1,500,000 from the promoters, borrowings of €200,000, and my Department's grant of €825,000. The position was further assessed in 2003, and although costs had risen to approximately €3 million, the continued availability of the necessary finance was confirmed.
At this point the project financing comprises a contribution from the promoters in the region of €1.2 million, borrowings of €1 million, my Department's grant of €825,000 and €60,000 from Kerry County Enterprise Board. The aim of the project submitted for funding, which I understand represents phase 1 of a planned larger development, is to provide a 250-seat contemporary Irish dance theatre in Ballybunion for the development of contemporary Irish dance. The proposal also entails the provision of space for performance, training, administrative and teaching facilities.
Some €675,000 of the total grant of €825,000 has been drawn down, and as yet there has been no information from the promoters on when they envisage the draw-down of the balance of the funding.
The project is of great importance to the entire community in the Ballybunion area of north Kerry, and there are currently outstanding debts of approximately €750,000. I am told there have been various grants from Departments but that the respective sums of €709,000 and €120,000 have yet to be drawn down. Does the Minister accept that completion of the Tinteán Theatre is dependent on all outstanding grants being delivered? Does he agree that the construction, which is phase 2 of a cultural village, will benefit the Tinteán project itself and the Ballybunion area, both economically and from a tourism perspective?
I accept the facility will be of enormous benefit to the entire Ballybunion region, and I acknowledge the importance of phase 2. In doing so, I must say regarding the possibility of further funding from my Department for phase 1 that I currently do not have any more funds available that might enable me to allocate a further grant to the Tinteán project. However, I hope it will be possible in the not too distant future to formulate a new access scheme that would enable me to grant aid developments of the kind envisaged for phase 2 at Ballybunion. I acknowledge the interest of Deputies Ferris, McEllistrim, and Deenihan in the Tinteán Centre, Ballybunion. All I can say is that grant aid and co-operation on the building of the project has been forthcoming to the limit of my Department's capacities hitherto. We will certainly examine whether it is possible to help regarding phase 2.
7 Mr. Deenihan asked the Minister for Arts, Sport and Tourism when the National Aquatic Centre will reopen; the reason for the delay in re-opening the centre; and if he will make a statement on the matter. [9239/05]
During the severe weather conditions experienced in the west Dublin area on New Year's Day 2005, damage was caused to the National Aquatic Centre at Abbotstown. The roof of the 50 metre pool and diving pool and the roof of the leisure water area were both damaged and, in addition, damage occurred to lights and fittings around the complex. This has resulted in the National Aquatic Centre being closed to the public while the building was being made safe, the damage assessed and repairs undertaken. Fortunately, nobody was hurt as the centre was closed for the holiday period.
On 2 January, Rohcon Ltd., the company responsible for the design and construction of the National Aquatic Centre, carried out some initial repair work to make the building safe. During the days immediately afterwards, Campus Stadium Ireland Development Ltd. was at hand to manage and oversee the response to the situation. CSID's first priority was to ensure the safety of the general public and anybody using or working in the facility. They were also focused on ensuring that the damage was accurately assessed by the insurance assessors, that liability for the repair work was established, that repairs would be carried out as quickly as possible and that the debris in the facility, and in its vicinity, was safely removed. Because of the weather conditions, in particular the high winds experienced during January, it was not safe to access the roof until towards the end of the month and this delayed the work of the engineers who examined and reported on it.
At the request of my Department and in consultation with CSID, the Office of Public Works engaged Kavanagh Mansfield & Partners, Consulting and Structural Engineers, to provide an independent, expert opinion. They were requested to examine the damage and to provide a report. In addition to this independent report, a separate report was prepared by engineers on behalf of the company carrying the insurance cover on the NAC.
Following the presentation of their report, Kavanagh Mansfield & Partners were appointed by CSID in regard to the development and implementation of the appropriate remedial works for the storm damage. A copy of the independent report has been given to Rohcon Ltd. and a schedule of remedial works has been prepared on behalf of Rohcon and submitted to CSID. This will ensure the centre is restored to the highest standards. The costs of the storm damage will not accrue to the State. Detailed discussions have been taking place with the various parties involved to resolve the situation as quickly as possible. CSID has confirmed to me that remedial works to the National Aquatic Centre effectively commenced yesterday, Monday, 21 March, when Rohcon, its roofing sub-contractors and consulting engineers responsible for the work were on the roof. These parties are now finalising, in consultation with CSID's engineers, the details of the schedule of works to be undertaken to repair the damage. While it is difficult to be precise about how long the work will take, my best information as of now is that it should be completed in six to eight weeks. The contractors have promised a firm estimate for completion of the repair work later this week.
Additional information not supplied on the floor of the House
I wish to reiterate that I want to see the National Aquatic Centre reopened at the earliest possible date. Although I fully understand the frustration of the staff and the general public, including members of facility clubs, at the continued closure of the centre, the alternative scenario, that of opening the centre while there was a risk to people using the facilities, is not an option that anybody would be prepared to contemplate. Therefore, the inconvenience of the centre being out of commission is, in my opinion, the lesser of two evils. Over the past months, CSID has put a considerable effort into working with the various parties to have the centre reopened as quickly as is feasible in the context of finding a safe solution. I am satisfied that this will be achieved.
Who is liable for the damage and who will pay for it? Also, who will compensate Dublin Waterworld Ltd. for the loss of approximately €100,000 per week while the centre is closed? The centre has been closed for so long because of health and safety issues. Will the Minister clarify the precise health and safety issues involved? Has the Government offered to compensate unsuccessful bidders for the National Aquatic Centre to run the centre? Perhaps the Minister will clarify that matter.
I am not aware of any issue regarding compensating underbidders. With regard to the actual repairs to the facility, CSID's first priority was to make the building safe and that work, together with the weather proofing, was undertaken straight away. At that point Kavanagh Mansfield & Partners, Consulting Structural and Civil Engineers, were commissioned to provide an independent report to examine the damage and provide a preliminary report as a matter of priority. The loss adjustor for the insurer also commissioned engineers to examine the damage but because of the weather conditions, in particular the high winds experienced during January, access to the roof proved to be very difficulty and that delayed the work of the engineers.
The Kavanagh Mansfield report was received on 28 January. Rohcon Limited, the company responsible for the design and construction of the centre, was supplied with a copy of that report on 4 February and it was asked to supply its proposals for immediate works. Rohcon, in turn, required some time to study the findings of the Kavanagh Mansfield report, including consultations with the roofing contractors who were based in England, and to do its own investigations before it could bring forward acceptable proposals for remedial works, which it did on 22 February. Discussions between the various parties, in particular between Kavanagh Mansfield & Partners and CSID on the one hand and Rohcon Limited and its sub-contractors on the other, and also involving the insurance company and its assessors, have taken place over the past three weeks and a schedule of remedial works was discussed at a meeting on 15 March between CSID's engineers and the contractors and their engineers and architects.
Work has commenced. Some further discussions are necessary to finalise the schedule of remedial works. Following finalisation of these discussions, the contractors expect to advise CSID tomorrow as to when the remedial works will be completed and of the consequent reopening of the centre. As I said, the best information available to me at this point is that the work will be completed within a six to eight week period.
I should explain to Deputy Deenihan and the House that there are many parties involved in this process, which is part of the reason it has taken so long, but the health and safety of the members, staff and general public has been CSID's primary concern in dealing with this unfortunate event.
As far as I am concerned, the State and the taxpayer will not be responsible for restoring the National Aquatic Centre to its former state. This is an issue for the contractors and their insurers to resolve. That is the manner in which I am approaching the issue at this point.
With regard to Dublin Waterworld Ltd., I would have hoped that it would have employment insurance cover in respect of its own staff. I have no plans whatsoever to compensate Dublin Waterworld Ltd. In fact, I do not have plans in regard to this matter which will cost the taxpayer any money.
Will the Minister accept that it has taken an unacceptable length of time to carry out repairs on the centre, taking into consideration the process that had to be gone through? This centre was built in little more than a year but it appears it will take almost five months to repair a 25 sq m hole in the roof. Will the Minister agree that this issue has got bogged down in bureaucracy and that there has not been any urgency in ensuring that the centre should be open for use sooner? Will he agree also that the centre could be opened on a phased basis? The recreational part of the centre could have been opened before now because that was not as severely damaged in the storm and the pool could be opened at a later stage. Also, the Minister may be aware that a number of important international swimming events have been cancelled because of the delay in reopening the centre.
I reiterate that I want to see the National Aquatic Centre reopen at the earliest possible date. Although I fully understand the frustration of the staff and the general public, including members of facility clubs, at the continued closure of the centre, the alternative scenario, that of opening the centre while there was a risk to people using the facilities, is not an option that anybody would be prepared to contemplate. Therefore, the inconvenience of the centre being out of commission is the lesser of two evils.
To be fair, Campus Stadium Ireland has, over the past months, put a considerable effort into working with the various parties to have the centre reopened as quickly as is feasible in the context of finding a safe solution. Naturally, I am also concerned to ensure the taxpayer's interest is protected to the best of my ability. That is my duty and, more particularly in this instance, it is the delegated function of Campus Stadium Ireland.
It is a matter for the contractors and-or their insurers to ensure that the aquatic centre is reopened at the earliest possible opportunity. I do not foresee an eventuality whereby the taxpayer will be obliged to foot the bill for that. Unfortunately, there has been a lapse of time between the commencement of work and the damage which occurred but much of that was down to weather constraints and the necessary steps which had to be taken to ensure reports were available to identify the cause of the problem and who should be liable for it. It took some time to resolve such issues. I do not accept there has been an inordinate delay. The time that has passed has been used constructively by Campus Stadium Ireland Development Limited and its agents. While it is regrettable that the centre will not be reopened at an earlier time than that now envisaged, we had to ensure that all the necessary steps were taken to safeguard the health and safety of the facility's users, to protect the interests of taxpayers and to ensure that due process was applied throughout.
8 Dr. Cowley asked the Minister for Arts, Sport and Tourism his views on whether the importance of tourism as a driver for economic survival is not being adequately recognised by Government and is reflected in the struggle for survival being experienced by tourism providers, especially in the west and in areas of Mayo which are heavily dependent on tourism; the steps he will take to rectify the desperate situation which exists at present; his further views on whether there should be a dedicated Minister for tourism; and if he will make a statement on the matter. [9278/05]
The importance of tourism as an instrument of national and regional development has been recognised by the Government for a long time. The need to achieve as wide as possible a distribution of visitor numbers throughout the regions, with an associated spread of tourism revenue, is similarly recognised as a major objective and challenge in tourism policy. Various factors have conspired to exacerbate regional growth problems in recent years. The increasing international trend towards shorter and more frequent breaks favours urban destinations because they are more easily accessible. That has driven significantly the more robust growth in Dublin and the eastern region.
At a time of overall national tourism growth, the need to spread the growth across all regions should be addressed proactively and energetically. The programmes and initiatives operated by the State tourism agencies and the action plan set out in the tourism policy review group's report reflect that objective fully. I would like to highlight some of the many actions proposed by the tourism policy review group that will have a positive impact on the regional distribution of tourism numbers and revenue. I refer, for example, to those actions relating to product development, tourism promotion, transport access and appropriate infrastructure and the arrangements for the delivery of tourism policy at regional level.
The lack of high-quality direct access has been a major impediment to growth in certain regions, particularly the western seaboard and the north west, and from certain key source markets such as the United States. Recent developments, including Ryanair's announcement of its plans to develop Shannon Airport as a European hub, American Airlines' announcement of new services from Boston and Chicago and Continental Airlines' plans for a new direct service to Belfast, provide a welcome boost to the regions at the start of the 2005 season. Such 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 the routes to optimise their inbound tourism potential.
Tourism Ireland and Fáilte Ireland will adopt some innovative approaches which should heighten the regional impact of Ireland's marketing activities, nationally and overseas, in 2005. All regions will feature prominently in the full range of marketing activities. A dedicated marketing fund for tactical co-operative initiatives by the regional tourism authorities and their members will be established. A region-to-region approach will be adopted in Britain to capitalise on the direct access links to the regions. Specific campaigns promoting the western seaboard will be mounted in North America. An approach of sponsoring regions will be adopted in Europe with each market office focusing attention alternately on particular Irish regions to enhance the awareness of the local trade of what each region has to offer. An enhanced consumer website, which will have increased functionality and a strong regional input, will provide for dynamic and up-to-the minute packages to entice domestic travellers. A strong focus on event-based holidays will be complemented by a festivals and cultural events fund that will be more streamlined and targeted and will continue to favour less developed regions.
The House is aware that I have no direct responsibility for individual actions or measures relating to tourism promotion or development in so far as specific areas of the country are concerned. Such actions or measures are day-to-day functions of the tourism agencies.
I thank the Minister for his comprehensive reply. Given that one in 12 people is employed in the tourism sector, tourism is not a part of the economic debate in the same way as farming and fishing, for example, as it should be. Places like Swinford, Kilkelly, Achill, Mulranny, Newport, Blacksod and Charlestown depend on tourism, but they are not getting their fair share of the visitors to the west. As the Minister said, the poor access to such places is caused by a lack of proper infrastructure. Difficulties have been caused by the failure to develop Knock Airport which is predicted to receive 400,000 visitors this year. By contrast, Dublin and Cork airports, which are totally congested, receive millions of visitors each year. Perhaps one could solve many problems by building the proposed second terminal at Knock Airport.
The west is not getting enough visitors because of bad roads and poor air access. The tourism operational programmes have taken account of the massive problem of seasonality in the west, but they have not worked because of the poor access to that region. There is a vicious circle of poor access, increasing seasonality and a decrease in bed nights.
I am sure the Minister agrees that the west is very suitable for major tourism products such as angling, walking, golfing and other outdoor activities, but there has been a decline of 20% in the number of bed nights accruing from such product areas since 1999. People have been unable to invest in tourism products for that reason. We cannot be competitive in the tourism market because there has been a lack of investment. We have failed to develop the tourism product to the extent we should have because of the problem of seasonality. We cannot compete for that reason. The vicious circle continues to exist.
Many tourism businesses in the west, other than in Westport, have been forced to close. Many others are hanging on but may have to go out of business. They face the same insurance expenses, wage costs and heating bills as businesses on O'Connell Street in Dublin. Tourism is not sustainable in the west. Will the Minister outline what can be done? Many tourism providers were unable to apply for the earlier form of the current national product development scheme because the bar was set too high.
What can the Minister do? He can lobby the Minister for Finance for a review of the VAT obligation on small tourism operators. Such a review would be a step in the right direction. I favour the introduction of some form of tax incentive scheme, which would benefit people who want to reinvest in the tourism product they offer. Will the Minister lobby the Minister for Finance for such a scheme which is needed if we are to prevent businesses from closing? Some 900 of the approximately 4,000 manufacturing jobs in County Mayo are provided by Allergan in Westport, but 300 of them have been lost. What is left? We are depending on tourism because farming is in decline. Will the Minister examine the VAT obligation and the possibility of introducing a tax relief scheme?
It is obvious that tourism is treated extremely seriously by the Government. As this country's largest international indigenous service industry, it is of enormous importance to the economy. When one includes carriage costs, it generates approximately €4.2 billion per annum. The largest number of visitors to visit Ireland in a single year visited Ireland last year. All the sectors and regions did not benefit equally, however. The increasing tendency among tourists to take shorter breaks has meant that tourism growth in the Dublin region has been greater than that in the western region, for example. Most, although not all, regions experienced some tourism growth last year.
It is clear that the main problem that needs to be addressed is the lack of access to the western region. When I visited the United States last autumn, I had fruitful discussions with representatives of American Airlines, which is the largest airline in the world. Deputy Cowley is aware that the airline proposes to fly into Shannon Airport from May. It will be the first time that it will have flown into Ireland. That the airline operates direct routes to 42 locations in the United States gives an indication of its size. Ryanair's decision to develop Shannon Airport as a European hub will assist the western region, as will the funding to be allocated by the Government to Knock Airport, which was announced by the Minister for Transport recently.
If we continue to improve access to the western region, we will continue to increase the number of people visiting it. That is not the only way to resolve the problem raised by the Deputy, however. We also need to examine how we market the regions. As I said in my initial response, the way in which that is done by the State agencies has been entirely changed. It is necessary to examine the relationship between the regional tourism authorities and the State agencies. While we established the new statutory body, Tourism Ireland, we did not redefine the relationships between it and regional tourism authorities or between those authorities and Fáilte Ireland, the former Bord Fáilte. In this context, Fáilte Ireland is finalising proposals arising from the report it commissioned from PricewaterhouseCoopers. It must be decided whether the integration of regional tourism authorities and State agencies would result in better services locally and facilitate more focused marketing mechanisms to attract a greater number of visitors to the west.
I acknowledge the problems involved and appreciate the level of difficulty they imply. We are taking stringent measures to resolve them.
