Vol. 690 No. 2
1 Deputy Olivia Mitchell asked the Minister for Arts, Sport and Tourism his views on whether the retention of the Irish Film Board as a singular entity is important for the future development of the film industry; and if he will make a statement on the matter. [32886/09]
2 Deputy Mary Upton asked the Minister for Arts, Sport and Tourism his views on the recommendation of the special group on public service numbers and expenditure programmes that the Irish Film Board should be merged with Enterprise Ireland and the capital funding stopped; his further views on the Government’s Building Ireland’s Smart Economy document; and if he will make a statement on the matter. [32890/09]
I propose to take Questions Nos. 1 and 2 together.
The Irish film industry is one of our most important industries, providing substantial levels of employment and significant inward investment. In 2007, the value of the audio-visual production sector in Ireland was more than €500 million. It provides direct employment of 6,000 people according to the Irish audio-visual content production sector review prepared for the Irish Film Board and published last December. Direct employment in the industry grew from just 1,000 in 1992. This palpably demonstrates an industry that has grown very significantly and with the potential to grow even further with the correct nurturing and support.
The Irish film industry is dependent on the combined supports provided by the Irish Film Board, the tax relief afforded by the section 481 scheme, the continued presence of a studio infrastructure — currently Ardmore Studios — and a stock of world-class talent. The sector is further subject to external competitive influences and incentives that require our systems to be continuously updated and upgraded. It is an internationally traded sector.
The Irish Film Board has primary responsibility for the support and promotion of film making in Ireland. This responsibility extends to both the indigenous film industry and inward productions such as "The Tudors". The Irish Film Board is the national development agency for the Irish film industry, investing in talent, creativity and enterprise.
In 2009 the Irish Film Board will receive funding of €21.8 million to develop and support film production in Ireland. The €3 million it receives in current funding facilitates the marketing of Ireland as a film location and, in particular, raises the profile of the Irish audio-visual industry abroad. The Irish Film Board has been extremely successful in its role of marketing Ireland over the years, so much so that it now has a key role at the heart of the new creative knowledge economy.
The capital funding of almost €18 million provided to the board in 2009 has ensured that it can facilitate the growth of the film industry by funding the areas of project and talent development, training and indigenous film and television production. It enables the board to fulfil its aim of sustained growth of the industry, increasing the number and quality of films produced in Ireland each year. The IBEC audio-visual review estimated that for every €1 invested by the Irish Film Board, close to €10 is generated.
In tandem with supports from the IFB, my Department's primary operational role in supporting the film sector relates to the administration of elements of the section 481 tax relief scheme. This scheme is kept under regular review in conjunction with the Irish Film Board and any enhancements necessary to retain or regain competitiveness are addressed and brought to the attention of the Minister for Finance as appropriate. The recently published report of the Commission on Taxation has urged the retention of section 481.
The benefits to Ireland of having a vibrant film industry and audio-visual sector are obvious and the Government recognises this. Last July it approved the finalisation of a ten-year strategy for the sector and that is proceeding apace. I remind the Deputy that the proposals in the report of the special group on public service numbers and expenditure programmes have not been adopted by the Government as policy but rather are proposals for consideration by the Government in the context of addressing the current budgetary challenges.
The international success of Irish film speaks for itself. On the employment front this year two projects alone, "Leap Year" and series four of "The Tudors", will employ more than 3,600 people between crew, cast and extras. These are high-level jobs which are highly prized at this time of rising unemployment.
The significant issue now is to continue to provide as supportive an environment as is possible. There are many great projects coming down the line such as Neil Jordan's "Ondine", starring Colin Farrell, Ian Fitzgibbon's "Perrier's Bounty", starring Cillian Murphy and Conor McPherson's new film, "The Eclipse". Our films are continuing to reach international audiences and they continue to showcase Ireland abroad.
What motivated this question, both for myself and I am sure for my colleague, is the recommendation in the McCarthy report and the concern it would cause to those in the industry and to me. All of us are conscious that not everything which was funded in the past will be funded in future. Nevertheless, it is important to begin establishing priorities to save so we can have something to build on when the good times return, as I hope they will.
We must be careful not to throw out the baby with the bath water. We should not stop the marketing of Ireland by the likes of Culture Ireland or the marketing budget of Tourism Ireland. We must be careful not to take our foot off the pedal in that regard. Putting the role of the Irish Film Board into a Department is not appropriate. I understand there may be a loss of some of the funding in the short term but it is important to keep the board as an entity.
The Minister was very vocal at the weekend at Farmleigh in support of culture as a whole. Is he making a commitment to retain the Irish Film Board? I have more questions but perhaps I will come back to them.
I will call the Deputy again.
I agree with the Deputy's comments. The economic facts speak for themselves but there has been a very focused effort in recent years to raise the ability of Irish film to a new level, and that has been very successful. We have gone from approximately 1,000 employees in the early 1990s to approximately 6,000 today. These people are recognised worldwide as being very creative and talented, both behind the camera and in front of it. Everybody would probably recognise those in front of the camera much more easily but there is a wealth of talent recognised as being at the top end of excellence in productions.
At a time when we are under strain, it is important for us to keep the emphasis on productive activity within the economy and to sustain jobs. As the Deputy has rightly said, we must use all the levers available to us through the best brand we have, the broad generic brand of culture in which our film industry fits.
We have had a golden period in terms of the awards our films and television productions have won in the past decades. Quality film actors, both male and female, have won awards, and Irish productions have also won Oscars, Golden Globes, prizes at the Cannes film festival and even over the weekend there were Emmy triumphs. All of this helps to foster Ireland's image and history worldwide.
I am very committed to maintaining the Irish Film Board. It has worked and the efforts we have made with the Department of Finance with the section 481 scheme is winning business for us. Neil Jordan told me the other day that it is currently very difficult in Hollywood — it has been a bad year for the film industry worldwide — but we have grown our indigenous business and business coming into the country this year. That is the reasoning behind our approach.
I agree with the Minister's comments on the film industry, which has been very positive for Ireland in many ways. As well as being a benefit to our local economy, it has also brought tourists to the country. My question is key. Will the Minister oppose the inclusion of the Irish Film Board into Enterprise Ireland? If that happens the board will be gobbled up and become a non-entity. It will have no defined or separate role, which is very important for the film industry.
I will address two specific concepts. It is important to see this in context. The report prepared by Mr. Colm McCarthy is excellent and he has looked across all Departments before presenting a menu. Nobody would anticipate that every single line written by him would be taken verbatim and implemented but he has provided important food for thought. I do not want to put this in a space of I, as Minister, being for or against it. A rationale must be applied.
I agree with both Deputies that there is a strong rationale for the retention of the Irish Film Board because it is delivering jobs and is a positive international marketing message for this country. It is winning indigenous jobs and creating inward jobs and investment. Akin to the IDA in some respects, it is our international arm for winning that sort of business, which is highly mobile in its movement from different markets and countries.
That success guides me in stating that the board should be retained as it is and with current functions. It is achieving the goals we set out for it.
The McCarthy report stated that an objective case had not been made on this issue but, strictly speaking, that is not true. As the Minister indicated, there are direct benefits and these were highlighted in the PricewaterhouseCoopers report. However, there are also the intangible benefits and these are immense.
If, as I believe, we are all making the case to retain the Irish Film Board as a single entity independent of any Department, we must ensure it is extremely efficient and is not, for example, supporting uncompetitive practices. Has the Minister discussed with the Irish Film Board the possibility of its showing leadership? We appear to be extremely uncompetitive with regard to trade pay rates and it costs more to make films here than it does in any other country. In a sense, therefore, the investment fund is being used to support uncompetitive practices. The Minister should raise this matter with the board and inquire with regard to whether it needs two offices, one in Galway and the other in Dublin. Is there a way to ensure the board will become super-efficient in order that the entire industry might be more competitive when the good times return?
The Irish Film Board earns a substantial amount of money for the Exchequer. Even allowing for the tax breaks on offer, the net profit for last year was €303 million. In Building Ireland's Smart Economy — A Framework for Sustainable Economic Renewal 2009 to 2014 it is stated, "We will support the creative industries and film/media which have a key role in driving and enabling technological convergence across platforms". We are, therefore, concerned with more than just the film industry. Perhaps the Minister will comment on this matter from the point of view of the smart economy.
Deputy Upton is right. That is why, when Building Ireland's Smart Economy — A Framework for Sustainable Economic Renewal 2009 to 2014 was being compiled, I was very strong in my view that the creative sector has a legitimate role to play. This matter is not just the preserve of Intel and similar companies. Many of those who work in the creative industry move among the sectors therein. We have a massive wealth of talent in this country and the Deputy is correct to state that the people who work in the creative industry are huge potential earners. In fact, they are already proving this to be the case. In that context, it is vital not just to sustain employment but also to encourage the industry to expand. By doing this we can enhance Ireland's reputation abroad and attract business from an even wider range of interested parties.
I take a deep interest in the matter to which Deputy Mitchell referred. I met the chairman of the Irish Film Board who is extremely impressive, possesses a great knowledge of the industry and is highly respected, both nationally and internationally. The Deputy is correct with regard to competitiveness. A natural driving down of costs is occurring at present. It is important that the hard costs of production should be priced competitively in order that we might seek to win business internationally. Until a couple of years ago we were losing our competitive edge in many areas. Now, however, there is a greater understanding and acceptance that in order to continue to sustain ourselves internationally, we must be competitive in all areas. As a result, the costs in the industry must be analysed and we must seek to obtain greater productivity. In addition, we must also maximise the benefits available through section 481, etc.
3 Deputy Olivia Mitchell asked the Minister for Arts, Sport and Tourism the initiatives he has introduced to tackle the downward trend in tourism figures; his views on whether he considers the structures in place sufficient to give strategic leadership to those struggling in the tourism industry; and if he will make a statement on the matter. [32887/09]
The number of overseas visitors to Ireland fell by 10.4% in the first seven months of 2009 compared with 2008. This reduction must be seen in context. The current year has been very difficult for tourism globally as a result of economic conditions. Ireland is actually holding its own or is performing better than some competitor destinations.
To assist the tourism sector, an extensive range of marketing, product development, training and business supports are being rolled out by the tourism agencies. Tourism Ireland frontloaded its marketing campaigns across all markets in order to secure as much business as possible for the peak and shoulder seasons and has intensified marketing activity for the second half of the year. On the domestic front, Fáilte Ireland committed to its largest ever campaign to promote home holidays in 2009 and recently launched a massive autumn campaign. Fáilte Ireland is also supporting enterprises and helping them to achieve cost savings and efficiencies. Many of those in the industry have responded positively in respect of this matter. I will provide further details of the supports to which I refer in my replies to a number of later questions.
With regard to structures, the Department of Arts, Sport and Tourism provides strategic direction through tourism policies implemented at an operational level by its agencies, while also maintaining a strong partnership with the industry. Tourism Ireland's role is to promote the island of Ireland as a tourism destination in overseas markets. Fáilte Ireland's primary functions involve product development, domestic tourism marketing, tourism standards, enterprise support and human resource development.
I established the tourism renewal group at the end of 2008 to review and renew tourism strategy to ensure it is focused for the short term and that the tourism industry will benefit from the upturn when it comes. I understand the group has completed its consultations and deliberations and is finalising its report, which I expect to receive shortly.
The active responses of the agencies and the industry to current challenges demonstrate that the structures are working. With the ongoing support being provided, Irish tourism has the capacity to manage these challenges and return to sustainable growth in the medium term.
The Tánaiste — although it may have been the Taoiseach — stated in recent days that 35% of jobs in the tourism industry are vulnerable. She indicated that she was involved in discussions with the Minister with regard to initiatives to be taken. Regardless of how one tries to play down this matter and state that other countries are also doing badly, the reality is that there is a huge crisis in the tourism industry in Ireland. I do not know how much of that industry will be left by the time Christmas arrives. Every week I hear about hotels, attractions and those who operate on the fringes of the tourism industry going out of business.
We have put forward ideas such as slashing VAT and abolishing the travel tax, which seems an obvious step to take. Suggestions were also made with regard to making free travel here available to British pensioners and rationalising the relevant structures. What initiatives does the Minister propose to put in place? I had understood that the tourism renewal group was to report during the summer but I have not yet heard whether it has done so.
The McCarthy report recommends that there should be a change in the structures because there is no leadership in the sector. All of those in the tourism industry who contacted me during the summer indicated that there is no strategic leadership. No one is taking charge and there is not any one body trying to organise the industry and make it coherent. There are many individuals in the industry who are of the view that they are struggling on their own. Is it the Minister's view that the structures in place are adequate in the context of obtaining the best possible bang for our buck?
I thank the chairman of the tourism renewal group for the huge efforts he has made. He met the Deputies opposite and almost anybody who has anything to do with the industry. I will publish the group's report once I have presented it to the Government. Everybody will be then aware of its contents.
I do not agree with some of the Deputy's assessments. I have worked closely with the different elements involved in industry during the past 12 months and I have received positive feedback in respect of the efforts that have been made. For example, in an international context, we have had major success in respect of the joint marketing campaigns in which we engaged in the US with Tourism Ireland and airlines such as Delta, American, Continental and Aer Lingus. There is no doubt but that these campaigns helped turn around the season. In recent months there has been a tremendous resurgence in the tourism figures, which appeared to be going in a particular direction in the first quarter of the year. There are challenges with regard to the UK market, particularly in the context of the currency differential, etc. This is a matter of concern to me but we are placing a major emphasis on the UK market.
I do not accept that there is a lack of leadership. I have spoken to many of those in the industry who are working closely with us. We must be careful in our choice of language. There is no question that the position is extremely difficult. However, I would not refer to the industry as being completely in crisis. Such an assessment neither helpful nor true.
We must face up to the competition internationally and we can judge ourselves only on best practice. Based on the figures, it is clear we are outperforming the UK market quite substantially at present. However, that is not in any way to take away from the major challenge we face. We must continue our efforts to meet that challenge.
To conclude, I put together all the cultural groups because more than 3 million people are visiting on the cultural side. This has spun into other activities that have happened in recent days and demonstrates the importance of cultural tourism.
Deputy Mitchell, with a brief supplementary question.
The Minister has not clarified whether the tourism renewal group has reported yet. Will its report recommend emergency or long-term measures? Something that will try to salvage what remains of this year is needed, as otherwise the businesses concerned simply will not be there next year. That is the truth, no matter what the Minister might say. From the perspective of salvaging what remains, does the Minister have an initiative in mind? Last week, the Taoiseach announced an initiative as though he was funding it. However, it turns out that the poor old industry is putting in a further €37 million to pay for the €50 voucher that everyone is to receive. Does it make sense for the industry to be putting up €37 million while the Minister for Finance simultaneously is taking in €45 million from the travel tax? Does it not make sense to abolish the travel tax and try to induce more people to visit? On the one hand, money is being spent to get people in but, on the other hand, they are being taxed when they do so, which seems to be counter-productive.
When I met many of the international tour operators, this was not an issue for them at all. The issue for them was to sustain marketing and to sustain the campaigns, which has been done.
The issue is with the airlines. Although we are an island nation, we are losing the airlines.
I was referring to the airlines. The Deputy is correct about the announcement the other day. I was delighted when the Taoiseach became directly involved because it demonstrates how important the Government and the industry perceive tourism to be. This is the reason I launched jointly with Fáilte Ireland the largest-ever autumn campaign for the market here. This did not fall from the sky but work was conducted for a number of months to come up with the ideas with which we are working with the industry. The industry, the tourism bodies and the Department worked together to take a direct and focused initiative that can be delivered to every home in the country.
The Minister did not give an answer regarding the tourism renewal group's report.
I apologise. As I noted in my initial reply, I should have the report shortly and I believe it has been completed.
4 Deputy Olivia Mitchell asked the Minister for Arts, Sport and Tourism his views on whether policy initiatives aimed at fostering new talent and sustaining those established in the artistic community have been adequate to date in 2009; and if he will make a statement on the matter. [32888/09]
Responsibility for the promotion of the arts at all levels is primarily devolved to the Arts Council. The Arts Council is the principal agency through which State funding is channelled to the arts. Responsibility for the promotion internationally of our artists is a matter for Culture Ireland.
Obviously, I am not involved in the council's operations. I am, however, of the opinion that taken together, the variety and depth of the programmes and schemes put in place by the Arts Council, Culture Ireland and my Department have the object of both developing new talent and sustaining those already engaged in the arts. For instance, I understand that to date in 2009, approximately €3 million has been allocated by the council to recipients of bursaries and various new once–off and new project works that have the aim of developing individuals and organisations to make progress in their respective fields.
The range and wealth of talent being nurtured through the council's funding is truly impressive. The council is to be congratulated on its sterling work in prioritising and managing its resources in a strategic manner to ensure the delivery of a high-quality service to the public.
In addressing the issue of future arts investment, it is important to highlight the transformed arts foundation and infrastructure that has been provided by way of consistent Exchequer funding. For instance, since 2002 funding for the Arts Council has increased by more than50%, from €47.67 million in 2002 to €73.35 million in 2009. This is a total of more than €530 million over the period, which Members will agree is a substantial amount. Over the period, these investments have helped to transform the profile and appreciation of the arts, to bring them centre-stage and enliven them for everyone to enjoy. This expenditure has allowed the Arts Council to fulfil significant elements of its functions, namely, of stimulating public interest in the arts, promoting knowledge, appreciation and practice of the arts and assisting in improving standards in the arts. The council delivers a focused, comprehensive, efficient and strategic service to its clients, audiences and partners nationwide.
Since 2004 amounts to the value of more than €109 million have been paid in respect of arts infrastructure nationwide.
Additional information not given on the floor of the House.
As I mentioned earlier, I am especially proud of the initiatives undertaken within the film sector as part of the wider artistic family. As the national development agency for the Irish film industry, the Irish Film Board, by investing in talent, creativity and enterprise continues to support and promote film-making in Ireland, as well as direct intervention in the training, through Screen Training Ireland, the mission of which is to provide excellence in continuing training of professionals in film, television, animation and digital media.
I wish to raise two aspects that arise from the various reports produced by the McCarthy group and the Commission on Taxation. The first pertains to the issue of the tax exemption on which I seek the Minister's views. Although the McCarthy report suggested its abolition would save money, the case has been put forward that so doing would instead reduce tax revenue. The truth is in there somewhere but bearing in mind the erratic nature of artists' income, I am anxious that some arrangement should be in place, howsoever the tax exemption is refocused or rejigged, which attempts to take an average of income over a number of years. On the whole, artists are a pretty poor bunch and I understand that nearly 91% of them derive less than 25% of their income from creative work. Moreover, as the Minister is aware, even highly successful artists, of whom there are not terribly many, have erratic incomes. It may be from an exhibition every three or five years and God knows how often one writes a book. Therefore their income is erratic and the idea of taking an average of their income must be taken into account.
A more serious issue arises in respect of the funding of the Arts Council and consequently of the arts. I am conscious that we are more than an economy and that there is an intrinsic value to the arts, as well as the economic value of which the Minister has spoken. However, it appears that the Arts Council has committed and spent some of next year's funding this year. If true, this appears to be catastrophic. I do not know whether it is true.
No. I believe I know what is going on and I will explain in a moment.
There appears to be a suggestion that even in conjunction with the cutbacks recommended in the McCarthy report, there will be a cutback based on over-expenditure this year. If that is true, it would amount to approximately 17% and the Minister should clarify this issue.
On that point, we are going into the Estimates process more deeply at present and I understand the Arts Council has given an indication to various organisations regarding the level of funding they could expect for the first quarter of next year. This will be from next year's budget and will not come from this year's budget. The council has tried to give an indication for the future, including a degree of reduction, to assist the planning that many such organisations are obliged to do into the first quarter of next year. There was no question of taking resources from this year and using them next year. I understand that to be the position.
Was there not a suggestion of reserves being spent this year?
I do not know. I have no knowledge of anything coming from next year's allocation to fund this year.
Was there a suggestion of money being spent this year that would not be available next year because reserves were being spent?
Not that I am aware of. That is my understanding of what it did and this may be the area of confusion in this regard. That is the specific answer on that question.
A brief supplementary question from Deputy Mitchell.
I seek the Minister's opinion on the artist tax exemption. While I acknowledge the Minister is not entirely his own master in this regard, does he have a view on it?
I do. When one deals with such matters, one must deal with facts rather than anecdotal evidence and unfortunately the report used figures for tax forgone that were based on 2006. While I am not even certain they are accurate, let us accept they are. This was before the cap on income was introduced. As Members are aware, the cap came into effect on 1 January 2007, which I believe would paint an entirely different picture. The Deputy is correct to highlight the highly uneven earnings of artists. Between 70% and 80% of those who are defined to be artists earn less than €20,000 a year anyway. One must be able to cater for spikes in income at certain times. While an income in a single year might appear high, the Deputy is again correct in this respect because it might take three of four years to write a novel, during which time no income might accrue.
Consequently, I have directed that an assessment be carried out because I wish to establish a basis for the argument regarding tax forgone by ascertaining the true picture. I hope to have it within the next few weeks in order to be able to argue forcefully on the actual position, as opposed to what it may have been before the tax exemption was capped at an income level of €250,000.
Before calling Question No. 5, I will allow Deputy O'Mahony to make a brief observation.
I thank the Leas-Cheann Comhairle. All Members were in shock last week on learning of the sudden and tragic death of Darren Sutherland. While many tributes have been paid, it is appropriate to put on the record of this House Members' deepest sympathy with his family, his parents Tony and Linda and his sisters. There is a great sense of loss among all those involved in sport and within the boxing fraternity in particular. One can only imagine the trauma and grief through which the Sutherland family is going at this time.
Darren was someone who brought great honour to this country and to the sport of boxing. I was privileged to meet him and his family a number of weeks ago. He articulated to a group of athletes the determination and the efforts made in his life to achieve what he did at the Olympic Games and his ambition to be a world champion. He brought great honour to this country and to everybody he touched. He has been a hero and will continue to be so. May he rest in peace.
On behalf of the Labour Party and on behalf of myself, I wish to express sympathy to his family. He was an outstanding sportsman. One of the characteristics we remember is that in photographs he was always smiling and happy. It is a great tragedy for his family but also for the boxing fraternity, his friends and colleagues. It was moving to see young boxers lined out on the day of his funeral. They were young and committed and admired him as a role model. He will be sadly missed most of all by his immediate family but also by young people who see him as an outstanding athlete who represented the country with great honour.
I was going to mention this at the end of Question Time and I am happy to do so now. I feel devastated for the Sutherland family, for his parents and two sisters and the entire boxing community. I was privileged to get to know Darren, however briefly, during the Olympic Games. I saw every one of his fights. I remembered the exuberance and excitement he brought and the lift he gave to the entire Irish Olympic team. We can contrast this time with the same time last year, with the high, the success and the emotion of the whole country following his success along with his colleagues who won silver and bronze. Some 12 months later we see a major personal tragedy befall his family. The response of the boxing community speaks volumes. I was at the funeral and it was so sad to see that the life of someone with a glittering career in front of him had come to an end. That must be dealt with in the first instance by his family but the outpouring from the wider public is there and I hope the family finds some comfort in it. He was greatly appreciated.
The one image that is fixed in my mind and that exemplifies Darren is when the plane came home from the Olympic Games. He came off the plane wearing the Chinese hat, with a smile on his face. He was a figure who demonstrated how proud he was. Hopefully, since he won the medal he felt how proud Ireland was of him. It is so sad. Ar dheis Dé go raibh a anam dílis.
On my behalf, on behalf of the Ceann Comhairle and all Members of the House, I associate myself with the words of sympathy to the Sutherland family.
5 Deputy John O’Mahony asked the Minister for Arts, Sport and Tourism the amount of the sports capital funding allocated for 2009 that has been drawn down to date in 2009; the amount it is estimated that will be drawn down by year end of 2009; and if he will make a statement on the matter. [32807/09]
The sports capital programme, which is administered by my Department, is the primary vehicle for Government support for the provision of sports facilities and equipment. Since 1998, through the sports capital programme, the Government has invested over €725 million in over 7,400 separate sporting projects. This investment has transformed the Irish sporting landscape with improved facilities in virtually every village, town and city. The facilities funded range from basic sports facilities and new equipment for the smallest clubs, to regional, integrated multi-sport centres and national centres of sporting excellence.
This investment is evidence of the importance this Government places on sport. Sports facilities that are well planned, built and managed have the ability to act as focal points for a community and allow more people to get involved in healthy activities. Participation in sport is important for many reasons. For individuals, participation has health benefits, builds confidence and gives people a sense of their worth. For society as a whole, sport can reduce anti-social behaviour while sporting success has the ability to lift the spirits of whole counties and even the whole country.
Some €56 million has been provided in my Department's Vote in 2009 out of which grants are paid for the provision of sports and recreation facilities. Almost 1,200 payments with a total value of €43 million were approved by my Department from this subhead by close of business on 17 September last. All of the €56 million provision will be distributed to grantees in the current year.
I am trying to understand the amount by which sport funding will be cut in the coming Estimates. The Minister refers to €43 million of the €56 million provision, leaving €13 million. Does the Minister envisage this will be drawn down before the end of the year? Clubs and organisations that were granted funding in the past number of years find it difficult to supply funding to finish projects. If that does not happen before year end, will this money be available to them next year? Will it continue to be available until they get funding? If this does not happen, can the money be reallocated to the current side of sport? There are no capital grants for the coming year, the swimming pool programme has been closed to new applicants and Lansdowne Road is complete. It has been said there is a 33% reduction in current spending. This has major implications for jobs and governing bodies rolling out programmes that are dependent on funding from the Irish Sports Council. What are the plans of the Minister to continue to fund the current side of sport?
I am absolutely certain all €56 million will be drawn down this year. There is no question about that. The projects that will use the balance exist and this money will be paid out. I will not have a surplus, much as I would like to have one. This amounts to 1,200 projects being approved this year. Clearly there will have to be capital funding for next year because there is a large number of projects in the system, an overhang of approved projects worth over €100 million. Many of these will be ready for next year. Clearly, there are difficulties for clubs in providing matching funding they had committed to. Also, some elements of projects have changed from what was approved and this presents a number of difficulties. My officials are trying to work with clubs to facilitate them as best we can.
The figure for next year is a matter for the budgetary process and I cannot say what that will be. It is not as if we are not spending any money, we are still spending major amounts of money but I have not opened up another programme this year. It is important to try to clear the backlog of projects outstanding this year and next year.
I am concerned about the disproportionate number of cuts proposed in the McCarthy report for the current side of sport. On the arts side, I was glad to hear the Minister robustly defend spending in the arts and the €11.8 billion sum the Minister estimates the sector is worth. All spending on the current side of sport has major economic benefits to the country as well. The sporting fraternity would like to hear the Minister robustly coming out on that side. The sporting fraternity has not yet come out protesting and defending itself but it is important that the views of the Minister on the available funding are heard. The Minister referred to how uplifting sports can be. What are his views on the spending cuts proposed?
Sometimes issues are picked up because of timing but not long ago I articulated a similar and strong view on sport. When we discuss sport we must understand the huge impact that can be made at a very young level by the money invested by sporting bodies throughout the country in training and facilities and the access children are given to sport. The Deputy is fully aware that the quality of managers and coaches for young people in recent years is far beyond what we had in my day, and that is right.
The programmes that we sustain in disadvantaged areas where children would never have had access to sport are very important because they have a huge impact on the children's self-worth. I will articulate a strongly held view on the budget for sport next year and in years to come. We have a big distortion in the budget because last year more than €100 million went to the Lansdowne Road stadium. All of that money has been drawn down and as it is not a repetitive funding programme it leaves a huge gap. I will fight for the coherence that has been established between sport, tourism and the arts to maintain as best we can in difficult times the funding for sport.
