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Dáil Éireann díospóireacht -
Wednesday, 1 Mar 2006

Vol. 615 No. 5

Priority Questions.

Tourism Industry.

Jimmy Deenihan

Ceist:

31 Mr. Deenihan asked the Minister for Arts, Sport and Tourism the position regarding the PricewaterhouseCoopers review of the regional tourism authorities; if the proposed changes will be implemented during the 2006 tourist season; and if he will make a statement on the matter. [8511/06]

As I previously advised the House in response to similar questions on 26 January 2006, individual actions and measures relating to tourism promotion or development at regional level are day-to-day functions of the State tourism agencies. To this end, Fáilte Ireland commissioned PricewaterhouseCoopers just over a year ago to conduct a major study of regional tourism structures. The report was published last year and is available on the Fáilte Ireland website. This work was supplemented by a short engagement facilitated by a small independent group, chaired by Mr. John Travers, with the relevant parties to satisfy interests in the Dublin region that the mechanisms of consultation were complete.

The PWC report highlights the need for a much wider brief for regional tourism, with more emphasis on its strategic rather than administrative role and contributing more directly to national policy. It recommends a greatly increased emphasis on targeted marketing, product development and enterprise support. It suggests establishing an integrated linkage between regional tourism strategy and national policy and exploiting avenues to leverage increased resources.

At the end of July last, I authorised Fáilte Ireland to proceed with the proposed revision of regional tourism structures on the basis of the PWC and Travers reports. To assist this process, Fáilte Ireland set up an implementation group under the chairmanship of Mr. Finbarr Flood. The group has completed an extensive process of engagement with relevant parties, including the existing regional tourism authorities and industry representative groups, to smooth the process of implementation, and I understand that it will report shortly to Fáilte Ireland.

In tandem with this, Fáilte Ireland has begun the process of gearing up its internal structures. A new senior management position of director of regional development has been created and applications to fill the post have been invited in the national press. A due diligence process will commence shortly with each of the regional tourism authorities. Fáilte Ireland expects that the impact of these changes will be experienced in the regions by the middle of the year.

This year Fáilte Ireland will invest more than €60 million in supporting regional tourism, from local festivals to building capability and strengthening the tourism product. The authority will channel in the region of €10 million of this sum directly into the regional tourism companies to strengthen and enhance their operational and marketing capabilities this year. This investment is designed to ensure both high quality visitor servicing at key tourist information offices and also a strong overseas promotional effort.

Both Tourism Ireland and Fáilte Ireland will continue to roll out a number of very innovative schemes in 2006 which should heighten the regional impact of Ireland's marketing activities both nationally and overseas.

Additional information not given on the floor of the House.

The super-regions initiative launched last month is one of these.

The agencies will also maintain an opportunities fund of €1million to allow them to respond to regional opportunities which may arise during the course of the year and are not anticipated in current programmes. Fáilte Ireland has also announced a new €1 million local area marketing fund to support the industry in generating additional business in 2006 and 2007. In addition, it has an innovation fund of about €1 million, the immediate priority of which is to encourage innovation and investment across a range of new products with a strong emphasis on products designed to attract and hold visitors outside the mature urban tourism areas.

Recognising the importance of home holidays at regional level, Fáilte Ireland will invest €4 million to sustain the recent remarkable growth in the home market. It also plans to advertise domestic holidays and short breaks 44 weeks a year to reach and stimulate the impulse market. Fáilte Ireland's website, www.ireland.ie, generated 500,000 direct sales leads to the tourism industry during 2005. On the basis that activities and attractions — things to do and see — are central to increasing spend per visitor, Fáilte Ireland will continue to assist in product development, including developing and promoting looped walks, angling, festivals, cycling routes, equestrian, golfing and water-based activities.

Tourism Ireland, for its part, will invest an estimated €5 million in 2006 specifically to support promotion of the regions of Ireland overseas and will engage in additional co-operative marketing with all regions. Key activities include presenting and promoting a series of all-island tourist theme trails or "rainbow routes" to help tourists get the most out of their visit. Themes will include music, gourmet, literature, history, Christian heritage, and houses and gardens. It will be cross-regional, thus further promoting and supporting regional access development as well as reinvigorating the car touring sector.

I thank the Minister for his reply and emphasise again the need to put the recommendations of the PWC and Travers reports in place as soon as possible. The Minister will agree there is no major divide between east and west in the area of tourism. The number of people taking pure holiday tourism is at a standstill, the growth rate of which was just 2% last year. These are the people who would typically visit regions such as the Minister's area in Kerry and other rural areas.

Does the Minister agree there is a worrying decline in activity holidays in Ireland? For example, in 1999, 254,000 people came to Ireland to play golf. In 2004, it was just 138,000. In 1999, 326,000 came to Ireland on walking holidays. In 2004, it was just 259,000. The numbers cycling decreased from 16,000 to 6,000 and the numbers angling, which is important for areas such as Kerry and Mayo, decreased from 173,000 to 93,000. Does the Minister agree there is a major problem with the spread of tourism? While the numbers may be increasing, the type of tourist has changed from a typical weekender to business tourism and visiting family and relations. The scenario has changed.

Will the Minister put in place immediately the recommendations of the PricewaterhouseCoopers report and ensure proper resourcing in order that these regions can be marketed? As a Minister from a rural area, will he emphasise the necessity of spreading the tourism spend in 2006?

There was a welcome increase of 6.5 million in the number of visitors to the country last year, which was the highest number ever to visit the State in one year. It is true, however, that all regions and sectors did not benefit equally and this is causing a difficulty for us. For example, the Dublin region increased by 11% whereas some regions increased only by small margins.

In those circumstances, I recently announced a new initiative, the creation of three new super-regions — Ireland west, Ireland south and Ireland east — the idea being that each would receive €1 million from Fáilte Ireland and would also be resourced from within the industry to market the regions as an individual unit in all our main markets. The object of the exercise is to bring more visitors into the regions and I am confident this will be successful.

We also announced a new local area marketing fund of €1 million. Again I anticipate the funding will be supplemented by the industry in due course. As I said in my reply, more than €60 million, the highest amount in the history of the State, is being invested through Fáilte Ireland in marketing the regions. I am confident we will succeed in spreading the benefits of tourism to the regions to a greater extent this year than last year.

I agree with Deputy Deenihan that there is a fall-off in some activity holidays. In particular, there is a fall off in angling compared with 1999 figures. This is related to the paucity of salmon in the rivers. The fall off in hillwalking and general walking holidays is due to the question of the land of Ireland being open to all. In some instances this is not the case.

I am pleased that there has been an increase in golf tourism. Last year approximately 200,000 people came to Ireland to play golf, which was a record number. I anticipate the numbers will be even greater this year following the Ryder Cup in September of which we are set to take advantage. More than 400 golf courses in Ireland are affiliated and one third of the world's championship links courses are located in Ireland. The Ryder Cup offers an ideal opportunity to bring more into the regions because the majority of the golf courses are located in the regions.

Departmental Investigations.

Jack Wall

Ceist:

32 Mr. Wall asked the Minister for Arts, Sport and Tourism the terms of reference of the inquiry being undertaken by Mr. Tim Dalton into matters involving Bord na gCon; the progress made to date; when he expects to receive the report; if he intends to make changes to the structure or organisation of the board of Bord na gCon; if he is satisfied that sufficient procedures are in place to prevent doping or irregular practices in the greyhound industry to protect the integrity of the sport and ensure the continued confidence of patrons; and if he will make a statement on the matter. [8319/06]

On 31 January 2006, I requested Mr. Tim Dalton, former Secretary General of the Department of Justice, Equality and Law Reform, to carry out an independent assessment of issues relating to corporate governance in Bord na gCon as well as its management of positive tests for banned substances. The terms of reference of the independent investigation are as follows: to review the allegations of shortcomings in corporate governance practice at Bord na gCon made by the chief executive of the board in his letter of 18 January to the Minister for Arts, Sport and Tourism and the response dated 30 January 2006 of the chairman of Bord na gCon to these allegations; taking into account the possibility of legal proceedings taking place, to examine the circumstances surrounding the decision of the board of Bord na gCon on 26 January 2006 to terminate the contract of employment of the chief executive of Bord na gCon with immediate effect; to report, when and if possible in light of the said legal proceedings, the findings to the Minister for Arts, Sport and Tourism and, in any event, to advise on any actions considered necessary to ensure adherence to best corporate governance practice; and to consider the way in which Bord na gCon procedures dealing with doping infringements are currently carried out, to comment on the adequacy of existing procedures and to advise whether there should be any changes or modifications put into effect.

While no precise timetable has been laid down for the completion of Mr. Dalton's investigation, I would expect to receive his report in a matter of weeks rather than months. I agree with the Deputy that the interests of the greyhound sector will be best served by having the issues which are the subject of the investigation resolved as speedily as possible. I intend to respond quickly to any recommendations made to me by Mr. Dalton. It will be appreciated however, that pending receipt of his report, it would not be appropriate for me to comment on the structure or organisation of the board of Bord na gCon, the procedures in place to prevent doping in the greyhound industry or any other issues relating to the greyhound industry.

I thank the Minister for his reply. Will he receive only a final report from Mr. Dalton? Is there no interim report on the structure that has been put in place?

I understand there is no predetermined time for the appointment of the chairman of Bord na gCon. Why does this not apply in all other State agencies? Does the Minister accept that the problems that have arisen have damaged the greyhound industry? Are the anti-doping mechanisms in Ireland of the same standard as those in the United Kingdom? Has any effort been made to create a common denominator between the two jurisdictions given the exchange of greyhounds between the two countries?

Today's Order Paper lists many documents laid before the Dáil in respect of Bord na gCon's subsidiaries. Some refer to 2001 but are only being laid before the House five years later. I question why we should wait so long for the director's reports, which pertain only to the years up to 2004. What is the thinking behind this?

Has the board met since the controversy arose and what decisions has it made since then? Has the chairman honoured his statements to the effect that he would make public and transparent any test results available regarding drugs or their misuse in the greyhound industry? Has there been any contact with the Minister's office in this regard?

I understand Bord na gCon would have had a meeting or meetings since this controversy arose. There will not be an interim report but a final report, which I trust will be comprehensive.

On the question on the term of the chairman, Bord na gCon was set up on 28 May 1958 under the Greyhound Industry Act 1958 chiefly to control greyhound racing and to improve and develop the greyhound industry. Its functions are set out in the legislation, which provides that the Minister appoint the chairman, who is to remain in office at the pleasure of the Minister. It is implicit that the Minister would have to have a reason to remove the chairman, if deemed necessary.

The report is being compiled by Mr. Dalton and I am awaiting it. I have explained that I will act upon his recommendations and I feel sure the House will have an opportunity to discuss the report, if it so wishes, following consultation with the Whips. I would not like to pre-empt or prejudge the report and I look forward to receiving it.

National Stadium.

Martin Ferris

Ceist:

33 Mr. Ferris asked the Minister for Arts, Sport and Tourism if plans to build a national stadium in Dublin are contingent on planning permission to proceed with the redevelopment of Lansdowne Road stadium; and if he will make a statement on the matter. [8593/06]

As the House is aware, in January 2004 the Government agreed, after considering a number of options, to provide funding of €191 million to the joint IRFU-FAI project for the redevelopment of Lansdowne Road stadium. Lansdowne Road Stadium Development Company, the company charged with the delivery of the project, has brought the design of the project to the planning stage and submitted a planning application for the project on 12 January 2006. At this stage, it is not possible to estimate the time required to complete the planning process or the decision of the planning authorities. It is clear that a successful outcome to the planning process is required to enable the proposed development to proceed.

As Deputies will be aware, the Lansdowne Road site has long been associated with sport because the first rugby international played there was in 1878. The new design for the stadium has been created in consultation with the different stakeholder groups that will be involved in and impacted on by the stadium. The concerns of residents have been taken into account in the design of the facility. The stadium is on four levels on three sides but sweeps down to one level at the north end to minimise the impact on those residents living in closest proximity to the stadium. The design also makes wide use of translucent and reflective materials, designed to minimise negative impact on the local area.

The increase in overall capacity of the stadium is small in that the current capacity is 49,000, comprising 24,000 seats and 25,000 standing spaces, whereas the new stadium will have a capacity of 50,000, all seated, which will bring significant benefits in terms of safety and comfort. The design proposed will deliver a building of iconic status and will ensure that the IRFU and the FAI can use the site to its maximum potential. It will also provide improvements in urban design and landscaping in the area, including the improved Dodder walk and safer access to the DART facilities serving the stadium.

The planning process must now take its course. The project has so far proceeded on schedule and I am confident that the end of 2009 will see the completion of the redeveloped Lansdowne stadium, which will cater for the international rugby and soccer fixtures of the IRFU and the FAI. In the event that the planning process does not authorise the redevelopment of the Lansdowne Road stadium into a modern all-seated stadium accommodating 50,000, a scenario which is not countenanced, there are no plans to provide stadium facilities of the type required by soccer and rugby authorities at an alternative location.

I thank the Minister for his reply. Given that many members of the GAA, particularly in clubs around the country, had reservations initially regarding the opening of Croke Park to the IRFU and the FAI, and given that it appears we are locked into a long planning process that may lead to court action, as has been indicated, and the consequent possibility that the stadium as envisaged may not be developed, does the Minister not consider it appropriate to have a plan B? Does he believe the Cabinet members should debate this, particularly because the issue was originally quite divisive among them and considering that the idea, primarily of Fianna Fáil, to proceed with a national stadium was scuppered by the Progressive Democrats? Will the Minister consider putting a plan B in place so this matter does not become divisive? It would be ridiculous if we had to restart the process of developing a national stadium in 2009, or perhaps later, owing to probable action in the courts on foot of sufficient local opposition. If the national stadium in question does not materialise, there should be an alternative option on the table.

The Government decided unanimously to construct the new stadium at Lansdowne Road — that much is clear — and it has committed €191 million in this regard. The GAA congress agreed to allow international home rugby and soccer games to be played at its stadium in Croke Park while the Lansdowne Road stadium is being redeveloped, but not beyond its development.

On the question of there being a plan B, the reality is that we have allocated the funding, a company has been set up to redevelop Lansdowne Road and the planning application has been lodged. We met all our deadlines to date or were very close to meeting them and I have no reason to believe there will be any difference on this occasion. It is obvious that the entire project depends on our obtaining planning permission. Nobody can say whether it will be granted but it is relevant to state there is a stadium at Lansdowne Road, as everyone knows. When the proposed new stadium has been constructed, it will be a modern state-of-the-art stadium of which Ireland can be proud. Deputy Ferris asked whether there is a plan B — there is no plan B at the present time. If the redevelopment of the Lansdowne Road stadium does not proceed, consideration will have to be given to an alternative. It may well be that the alternative will be a return to Abbotstown or somewhere else. It would be entirely negative and self-defeating of me to draw up a plan B at this point. I do not think I should do that because it would be the height of pessimism. I remain positive about the planning application.

The Minister's response has indicated that there is a distinct possibility — perhaps it is more than a possibility — that the agreement originally reached with the co-operation of the GAA means that Croke Park will be open to the IRFU and the FAI for the foreseeable future, perhaps much later than 2009. I asked the Minister about alternative arrangements because it is necessary for a plan B to be put in place at Government level, if not publicly, if we are to meet the requirements of the agreement that was worked out with the GAA, both politically and within the sporting bodies.

No agreement was worked out with the GAA in respect of the opening of Croke Park. When I delivered the final tranche of €40 million to the GAA authorities, it was given with no conditions attached. I made it clear at the time and I do so again now that any decision on the opening of Croke Park for soccer, rugby or any other game is entirely a matter for the GAA. It will continue to be entirely a matter for the GAA, which responded with a great deal of magnanimity and generosity. It is heartening that the GAA's central council honoured the integrity of the decision made by the congress of the GAA. I understand that it was decided to allow other sports to be played in Croke Park only for the duration of the redevelopment of Lansdowne Road. A new decision of the GAA congress would be needed to change that, which would be a matter for another day. In the meantime, it is full steam ahead with Lansdowne Road, as far I am concerned.

Sports Facilities.

Jimmy Deenihan

Ceist:

34 Mr. Deenihan asked the Minister for Arts, Sport and Tourism if he has commenced a national audit of sports facilities here as promised in 2002; and if he will make a statement on the matter. [8513/06]

Work has commenced on the proposed national audit of sports facilities which is being undertaken by the Department of Arts, Sport and Tourism as part of the development of a long-term strategic plan for the provision of such facilities. A commitment to undertaking such an audit was included in 2002 in An Agreed Programme for Government, which covers the period up to 2007. The subgroup established to oversee the detailed work of the audit comprises representatives of the Department of Arts, Sport and Tourism, the Irish Sports Council, Campus Stadium Ireland and the Central Statistics Office. Expert assistance is being provided by local authorities. The subgroup has decided that the audit will be undertaken in a number of phases to speed up the availability of information. The first phase of the audit will be carried out largely within the Department of Arts, Sport and Tourism. It is likely that some external information technology expertise will be required to help to develop a database and map the data to be retained.

Completion of such a comprehensive exercise is a significant challenge for the Department, especially as its staff members face many other work pressures and commitments. In recognition of that fact, the inter-agency steering group decided to prioritise certain areas of work. The task being undertaken in the first phase of the project is the establishment of a record of national and regional sports facilities. That is being done immediately because we need to develop a comprehensive database on key strategic facilities as quickly as possible, not only if we are to put in place an effective long-term strategy but also if we are to maximise opportunities relating to the London Olympic Games in 2012. It is clear that many leading sporting teams are likely to decide over the next two to three years where they will locate their final pre-Olympic training camps. We will need to be in a position to promote what we have to offer by then. The first phase of the audit is likely to focus on key national facilities such as Croke Park, Lansdowne Road, the national aquatic centre, the national coaching and training centre in Limerick, Morton Stadium, the national rowing centre, the national basketball arena, the national hockey stadium, the national badminton centre and the national tennis centre. Other categories of facilities which will be included in the audit are the GAA county grounds, rugby and soccer league grounds, university sports campus facilities, sports centres run by local authorities, synthetic athletics tracks and swimming pools.

The Department of Arts, Sport and Tourism is drawing on the experience of the Northern Ireland Sports Council, which embarked on a similar exercise in recent years. It emerged clearly from the Northern Ireland experience that it is important to be able to access databases which are already in existence. Time and cost savings can be secured by accessing information held by local authorities, Departments and sports groups in advance of the start of the audit. The work being undertaken by the Department is a data-gathering exercise involving information in respect of facilities which have previously been funded under programmes administered by the Department.

Additional information not given on the floor of the House.

When the database has been finalised, the present state and condition of the facilities will be established by means of a detailed questionnaire that will be issued to their owners and managers. Ascertaining and mapping what is in place will be important in developing a strategic approach to future facility provision. It will help to establish the level of need that exists in the sports sector and to determine future priorities. Work on the development of a strategy for sports facilities has commenced. It is likely that the final report will cover a range of key issues such as the role of the sports capital programme, improved co-ordination and integration of funding among the various Departments and bodies, community access to school facilities, targets for the future provision of strategic facilities and other facility types and the impact of future funding. Discussions about the role of the sports capital programme and future priorities for facility provision have taken place with some of the key stakeholders. Meetings with additional stakeholders have not yet taken place. A position paper on the direction of the strategy is being prepared by the Department. I intend that a new strategy for provision of sports facilities will be in place for the 2007 sports capital programme.

I am sure the Minister will agree that the audit of sporting facilities is important for the future direction of sporting policy here. It may determine how moneys are spent in the future. The audit will reveal that vast areas do not have adequate sporting facilities. The provision of such facilities is not balanced throughout the regions. Over the past ten years, the investment of national lottery funds in sporting facilities has been based on whether a given area was in a constituency represented by a Minister. That was not the right basis on which to make such decisions. The Minister mentioned some of the facilities which will be covered in the audit. Can he confirm that facilities which are very important for the promotion of athleticism among young people, such as playgrounds, will be included in the audit? Will recreational facilities such as parks, walkways, canals, golf courses and equestrian centres be included in it? Will the audit cover both public and private facilities? It is important that all forms of facilities should be included because there are many private facilities here. Does the audit relate to public facilities only?

The Department of Arts, Sport and Tourism is involved in a data-gathering exercise which will integrate information on facilities funded under programmes administered by it. When the database has been finalised, the present state and condition of the facilities will be established by means of a detailed questionnaire that will be issued to their owners and managers. Deputy Deenihan suggested that there are no facilities in many regions. Since 1998, more than €390 million has been spent on the provision of sporting facilities in every city, town, village and parish. Some 4,923 facilities have received grant aid to date. Deputy Deenihan has to accept that the level of provision is significant.

I am not denying that, but some areas are getting more than others.

The sports capital programme gives special attention to rural areas of disadvantage covered by the CLÁR programme and urban areas of disadvantage covered by the RAPID programme. Increased levels of grant aid are allocated to such areas by my colleague, the Minister for Community, Rural and Gaeltacht Affairs, Deputy Ó Cuív. We are seeking to plug the gaps. The comprehensive audit of sports facilities will identify the needs and lacunae which exist. It is obvious that the Department will use the audit to determine how such gaps can be filled. I am sure the Government in office when the audit has been completed will take account of the gaps that will be identified in the audit.

Will the audit be all-embracing? Did the Minister indicate that it will relate only to projects funded through the Department of Arts, Sport and Tourism?

Surely that would not really constitute a thorough audit of this country's sporting facilities. It is critically important that all such facilities, including the facilities I have mentioned like walkways and canals, should be covered by a broad audit. Will there be an audit of the sporting facilities in our primary and post-primary schools? I recently completed a survey of all the primary schools here which found that just 23% of them have sports halls. There is a major issue here. Without a sports hall in the school, young children cannot obtain the benefits of exercise and teachers cannot carry out proper programmes in the school. The audit should be all embracing. Every facility in the country should be audited and both primary and post-primary schools should be included.

Will the local sports partnerships be involved in the audit? The local sports partnership in County Kerry carried out such an audit on the schools in the county. The audit showed that 75% of the schools in Kerry do not have a PE hall on their grounds, in spite of all the money that has been spent in the county.

Deputy Deenihan may have misunderstood what I am trying to say. The work currently undertaken by my Department is a data gathering exercise which will integrate information on facilities that have been previously funded under programmes administered by the Department. However, the audit will also seek to identify sports facilities provided by voluntary sports organisations, local authorities and private individuals, as well as sports facilities available in schools and colleges which have benefitted from grant assistance provided by the Department of Education and Science. Recording this data and making it available in a user friendly and accessible format will be a significant undertaking. An effective way to obtain information on key national and regional facilities is to conduct the audit in two phases. The type of facilities likely to be included in phase one represent key national facilities such as GAA county grounds, rugby and soccer league grounds, university sports campus facilities, local authority run sports centres, synthetic athletic tracks and swimming pools. Phase two will include sports facilities at a local level, including those in post-primary schools.

The audit will be a comprehensive body of work which will enable policy makers to map the location of the various sports facilities throughout the country, whether they are provided through voluntary sports organisations, are privately funded or have benefitted from the assistance of public finance. A better fix on the location of existing sports facilities will obviously lead to more effective targeting in the funding of new facilities, as well as a more efficient use of financial resources.

What is the timeframe for this audit?

The experience in Northern Ireland was that it took more than three years to complete the audit. The audit will take some time and there is no point in pretending otherwise. The first step was to assess what has been achieved under the Department's sports capital programme. That has been carried out.

Film Industry Development.

Jack Wall

Ceist:

35 Mr. Wall asked the Minister for Arts, Sport and Tourism his views on the provisions made in the recently published Finance Bill 2006 regarding relief available for investment in film; his plans to extend the qualifying investment period for this relief beyond 2008; if the changes proposed require the approval of the European Commission; and if he will make a statement on the matter. [8179/06]

I warmly welcome the announcement by the Minister for Finance that the amount that can be raised under the section 481 scheme is to be increased from €15 million to €35 million, and that a new limit of 80% of the total production cost will replace the existing limits of 55% and 66%. This will do much to restore Ireland's competitiveness in the international marketplace, particularly for medium to large-scale projects. I support the scheme, as it is critical to the future of Irish film-making. The extension of the scheme beyond 2008 is a matter in the first instance for the Minister for Finance. The changes proposed require the agreement of the European Commission.

I compliment the Minister on this issue. He always led from the front in ensuring this initiative would not be removed. These changes for 2006 will restore confidence in the film market. This is for a two year span until 2008, when it will then be removed. Would it not be better to review it rather than remove it? It takes years to plan a major film and this initiative is all about attracting some of the major American companies to make those films here. This initiative is far more beneficial and more interesting from the perspective of those companies, but if it is only available for two years, we may not get as much benefit from it as we think. It would be much better to state that the initiative will be reviewed on 31 December 2008, rather than that it will expire on that date.

I am aware the matter is for the Minister for Finance in the first instance, but does the Minister not feel it should be reviewed rather than expire at that stage? We are seeking to give confidence to the major film makers to come here. If the incentive is reviewed in 2008, we will attract most of those American companies which recently seem to be going to other countries.

Deputy Wall is correct to state that films are planned a long way in advance and that a certainty in the marketplace in necessary. People can be satisfied that this relief will continue. The former Minister for Finance, Mr. McCreevy, increased the cap to €15 million and extended the relief to the end of 2008. The current Minister for Finance has increased the cap to €35 million, which is unprecedented. He has more than doubled the relief available under section 481. I am deeply grateful to him for it, as is the film industry. The Minister recognised that to remain competitive, it was necessary to increase the cap significantly. He has increased it by a higher amount than any of his predecessors and that is indicative of his own commitment to the film industry. He also increased the percentage of the total production to 80%, which is very welcome. These factors all indicate the Minister's good faith towards the film industry. He would not have bothered increasing the cap at all if he had another motive and was thinking of terminating the relief.

The Deputy can take it from me that the Government has no intention of terminating the relief. If the Government is still in office in 2008, I believe that relief will be continued. I am pleased that we are again competitive in attracting inward film production. The benefits to the economy of such production should never be underestimated. Many people are influenced by films to come to Ireland. I sincerely hope the new arrangements ensure that Ireland receives a good share of large productions from the US and elsewhere. I recently visited Bollywood in India, where great interest was shown by those in the Indian film market in coming to Ireland. This will bear fruit in the not too distant future.

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