Vol. 764 No. 4
6Deputy Joe McHugh asked the Minister for Transport; Tourism and Sport his views on proposals to include road safety on the reformed junior certificate cycle; if consideration will be given in this respect to the Finnish model; and if he will make a statement on the matter. [23083/12]
The junior certificate is, in the first instance, a matter for the Minister for Education and Skills and the National Council for Curriculum and Assessment. However, I believe that the reformed junior certificate, and the proposed short courses in particular, offer significant opportunities for important cross-subject learning. Education in the area of road safety is one such possibility.
The Road Safety Authority's current approach to road safety education is to deliver road user education in a cumulative, age appropriate approach commencing in preschool settings, through to third level and on into community settings. Road safety education ensures all road users develop appropriate attitudes and safe behaviours. The authority's road safety educational programmes are not currently compulsory but are aligned with the relevant curriculum strands in each educational setting.
While we have made significant progress on road safety in recent years, we need to continue to focus on ways of making our roads safer. A key factor in road safety is driver behaviour, and education clearly has an important role in influencing the behaviour of existing and future drivers. The proposed development of the junior cycle programme presents opportunities for the Road Safety Authority to further develop its existing road safety programme, Streetwise. This programme could be developed to take advantage of the proposed short courses - 100 hours - or integrated into the priority learning units outlined in "Towards a Framework for the Junior Cycle: Proposals for Junior Cycle Development". I continue to engage with the Minister for Education and Skills, Deputy Quinn, with a view to progressing this matter, and will keep the House advised of such progress.
I appreciate the Minister does not have an input in the design of the junior certificate but his intervention with regard to the need to include some road safety training in the junior certificate programme could be critical. A few years ago I visited a secondary school in my county.
The teacher told me she had a group of boys in the class whom she could keep engaged only by promising that if they were quiet and participated in class she would take them out afterwards and show them the engine in her new car. There is an interest in the mechanics of the car, among boys in particular, although I do not exclude the female student population. We should harness this positivity. We should look at what is happening in Finland, in that country's education process, whether it is the use of simulators, having self-evaluation or even bringing driving instructors into schools. We can tease out the details but I welcome that the Minister is exploring the idea of incorporating this into the junior certificate. I look forward to his work with the Minister for Education and Skills.
I very much welcome the Deputy's comments. This is certainly something we will consider in the context of the next road safety strategy which is in the process of being formulated. There are already many road safety programmes in schools, such as the Simon and Friends preschool programme, the Be Safe programme or the annual back to school campaigns. They offer a great deal of education in road safety that was not available in schools in the past, certainly not when we were in school. In addition, some local authorities have road safety officers, which is important. The proposal now being developed is to make this type of education one of the modules a student can take for the new junior certificate. It would not be compulsory but I imagine it would be very popular, particularly with young men, especially if it allowed them to do the theory test or make some progress towards getting a driving licence. Obviously, this is a matter for the Minister for Education and Skills rather than for me but it is one of the areas we are working on together. In addition, there is a possibility of making sports one of the modular subjects in the new junior certificate.
I agree with the Minister. It is important that we improve teaching in this area in schools. I note, too, we have a fairly good record in road safety. In 2009, an OECD report on road deaths and risks in Ireland showed fewer deaths per capita, per vehicle and per billion vehicular kilometre than in Finland. I know we can improve but if we are beating Finland we must be doing something right.
7Deputy Seamus Kirk asked the Minister for Transport; Tourism and Sport if a new sports strategy is being prepared; if this may result in changes to the remit of the Irish Sports Council; and if he will make a statement on the matter. [23068/12]
The question concerns the remit of the Irish Sports Council. In November 2011, the Government announced its programme of public service reform. A key deliverable of the reform programme will be the radical streamlining of State bodies. This measure will deliver enhanced service efficiencies and will offer significant long-term savings in the operation of State bodies through the sharing of back-office administrative functions and other services.
In regard to the sports bodies, the plan provides that legislation is to be published in 2012 to enable the merger of the National Sports Campus Development Authority and the Irish Sports Council in 2013. The merging of these two bodies will deliver a more streamlined sports structure at national level.
My Department is currently examining the issues involved in merging the two bodies and any changes to the remit of the bodies will be reflected in the legislation. My officials are consulting with the Irish Sports Council and the National Sports Campus Development Authority on issues that arise during this process.
I welcome the Minister's statement on the amalgamation of, or reduction in quangos, about which he talked a great deal before the election. As Minister, however, he has a responsibility to set forward a strategy for the continuing development of sport in this country. Although I am aware the Department of Transport, Tourism and Sport is currently in the process of assigning moneys set aside to develop a sports infrastructure in the various constituencies around the country, it is important that this is done with a strategic focus. To that extent, I am aware there had been discussions during the tenure of the previous Government about working with local authorities to ensure there was no duplication of effort across different counties and that, where possible, there was the capacity by different codes to share facilities and resources. I recognise the limited resources available and am aware of the pressure on the Government in that regard. Any money spent, therefore, must be spent with a strategic eye.
I would welcome if the Minister were to outline for us whether the Government is prepared to leave this to the various sporting organisations, providing them with money on an ad hoc basis when it is available or whether it will form part of an overall strategic approach that would see not only the development of the infrastructure, but the development of skills. That would mean the sporting organisations were collectively responsible for ensuring that Ireland developed its sporting potential to the highest standard possible.
I should say that the Minister of State, Deputy Ring, sends his apologies. He is on his way to Brussels for a meeting of European sports Ministers.
In fairness to the Government, we do not merely talk about reducing the number of State agencies, we have actually done it. Coaching Ireland has been merged into the Sports Council, Dublin Tourism into Fáilte Ireland, and, as the Deputy knows, today there will be a reconfiguration of Shannon Development.
The point Deputy Dooley makes is absolutely correct. Too often in the past grants were given to sports clubs and local authorities on an ad hoc basis. Often two clubs with very good facilities may be close to one another while down the road in another locality there are no facilities. In part, this was historic because in the past clubs were not prepared to share facilities or open up their grounds to other codes. In newly developed areas that is less of a problem because, by and large, when new schools are built they incorporate a community centre with sports facilities alongside which are open to the entire community. It is hard to retrofit that into more established areas but we are doing two things to drive it. The first is the national sports facility strategy which is currently under consideration by the Minister of State, Deputy Ring, and me and is due to be published in the coming weeks. The second is the criteria for the current round of sports capital grants which give additional points to applicants who are willing to open up their grounds or facilities to more than one user.
Although I welcome the idea of shared resources, does the Minister have a concern there might be a loss of volunteerism, or of funding from his Department?
I do not believe so. It is merely that funds are scarce, much more so than in the past and increasingly it makes sense for clubs to team up with schools or to come together and agree to share facilities where they can. One of the most interesting models I have seen is in France, where almost every municipality has a very high quality municipal sports centre which is shared by different clubs and bodies. That seems to work very well. Obviously, it is hard to retrofit this model in older established areas where it has not been the norm.
8Deputy Robert Troy asked the Minister for Transport; Tourism and Sport if he is satisfied that the real time passenger information system rolled out by Dublin Bus is sufficiently accurate; his views on any complaints regarding this system; and if he will make a statement on the matter. [23076/12]
This question relates to the roll out of real time passenger information signs at bus stops.
Following the establishment of the National Transport Authority on 1 December 2009, the implementation of public transport infrastructure projects in the greater Dublin area, such as real time passenger information, now comes under the remit of the authority. The authority's functions were subsequently extended by ministerial order to include provision of real time passenger information to the four major regional cities of Cork, Galway, Limerick and Waterford, and the contiguous areas of those counties. In the light of the authority's responsibility in the matter, I have referred the Deputy's question to it. The authority will respond directly with details of the ongoing development of the real time passenger information system. The Deputy should advise my private office if he does not receive a reply within ten working days.
I have been advised that recent independent surveys carried out on behalf of the National Transport Authority at a number of stop locations in Dublin indicated that 93% of buses arrived within three minutes of the due time indicated on the real time passenger information sign. This level of accuracy compares very favourably with the best international real time passenger information systems for buses. As I am sure the Deputy will agree, the provision of real time passenger information has enhanced the public service for users of the bus service.
I welcome the Minister of State's outlining of the current situation in respect of real time information which is an integral part of enhancing the commuter's user experience. Concern was expressed to us by a number of people who believed the information was not quite so accurate. The Minister of State will be familiar with that, however, as one will always hear complaints of this kind. However, it is important that the Government remains committed to the continued roll-out of this service and that it ensures that any teething problems are dealt with quickly and efficiently. As is the case with many such services, if they are rolled out widespread at too early a stage people end up by not having confidence in them. It is very hard to revisit the system and get people to have confidence in it. I welcome the information provided and look forward to the Minister's continued oversight.
Deputy Dooley does not have a question but Deputies Ellis and Eoghan Murphy do and we will take them together.
This is a great initiative and it should be rolled out further. I was very surprised to see it in large working-class areas and it is working very well. There have been complaints but, by and large, it is very good. The apps have been a major success, with tens of thousands of people downloading various apps that provide information. Initiatives such as this could encourage visitors to use the apps, as could functions to allow users to determine fares for their journeys. It would enhance the experience of tourists.
As someone who uses Dublin Bus regularly, the information service is excellent. Using it in conjunction with the Dublin Bus app is a marked improvement. It is important to continue the roll-out to those living in outlying areas, where the information is not available. There are fewer options and a lower frequency service for those people, which means delays and waiting times have a significant impact on journey times.
I thank the Deputies for their contributions. The real-time passenger information signs have been a great success. The feedback to the Department has been fantastic. There were teething problems in some areas but, by and large, they were dealt with very quickly. There are plans to roll out 500 signs in the greater Dublin area. Some 393 have been rolled out and 27 have been rolled out in Cork, which is 50% complete. Galway and Limerick cities are next in line and the roll-out is expected to be completed by the end of the year. The text and phone service has been phenomenal and there have been 100,000 visits to the app site per day. That number of requests is huge and shows that people use their phones to check bus times. Passenger numbers will increase on buses over time because people know when buses are coming and experience the reliability of buses. The technology used for these signs is excellent. The signs are used for real-time passenger information but can also be used for further information, as required, to notify passengers of different issues.
I hope the Minister of State does not plan to use them for electioneering purposes.
We will not rule out anything.
9Deputy Niall Collins asked the Minister for Transport; Tourism and Sport the basis for distributing local authority sporting grants in 2011; and if he will make a statement on the matter. [23055/12]
Allocations were made in 2011 under a special local authority sports capital initiative and also under an initiative for local authority swimming pools to improve access for people with disabilities and to make the pools more energy efficient. The sports capital initiative, which was developed following discussions with the County and City Managers Association, allocated funding to projects that could increase participation in sports. All local authorities were invited to submit applications for funding and every application received was assessed according to criteria set out in the letter to local authorities inviting applications. All eligible applications were allocated funding. In total 111 separate allocations were made with a total value of €4.5 million.
The swimming pools allocations were also made on foot of an invitation to local authorities to submit applications to improve access for people with disabilities and/or to make pools more energy efficient. In total 56 pools were allocated funding of €10.9 million.
If I understand the Minister correctly, 110 applications were successful. Does the Minister have the number of applications made? This question has been tabled because of the concern, which is not a new phenomenon, that sports capital funding has been assigned to constituencies or counties where there is a Minister. I do not want to get into the politics of it but Mayo came out particularly well on this occasion. I am sure the Minister has information on the distribution of funds in the past that point to other Ministers from my side of the House. The Government came to power and said it would do things differently and that there would be a more transparent approach to the dispersal of funds. Either the Minister accepts the previous practice was fair and equitable and it was coincidental that constituencies and counties with senior Ministers were more successful because they were better able to apply for grants or the Minister has decided to adopt a practice that was heretofore unacceptable.
Deputy Dooley should not believe everything he reads in the newspapers. Having been a Government party Member, I am sure he was amused by some of what he read in the newspaper, as I am now. Some 111 applications were eligible and all eligible applications were granted funding. Twice as many were ineligible. Of the applications from County Clare, funding was granted to Lees Road Sports and Amenity Park in Ennis, which was eligible. Three other applications were not eligible. In two cases, the town council did not have title to land and in the third case, Kilrush, the land was owned by the ESB. Very often, applications were not allowed because the applicant did not own the land or the project would not have been completed by the end of the year, as was required in order to gain funding.
On a per capita basis, Sligo received the most funding, at €19.93. Sligo does not have a senior Minister although it has a Minister of State.
Deputy Perry has considerable clout. I jest.
The second highest was Leitrim at €17.49per capita.
That is down to me.
Leitrim is divided between two constituencies and there is no Government Deputy resident in Leitrim even though it is represented by Deputies from Roscommon and Sligo.
It is well represented.
Mayo came third, well behind at €10.76per capita and Cavan, which has no Minister or Minister of State, came fourth at €9.60 per capita. Or a raw cash basis, Dublin got most as the most populous, at €1.74 million, followed by Cork, the second most populous, at €1.41 million. Everything that is in the newspapers may be the truth but not the whole truth. The past two Ministers with responsibility for sport made allocations proportionate to the populations of counties. Perhaps that was not the case for those who preceded the last two Ministers.
If the Government is redistributing money unfairly, it learned well from its predecessors. On the issue of local authority grants, if a local authority such as Wexford County Council gives a builder over €500,000 to build a road for a development that may happen in the future, does the funding come from the local authority or from central funding?
Swimming pools are one of my favourite topics. Did Roscommon County Council apply for funding to open the swimming pool all year round last year? Has it applied this year? I understand it has but I would like to hear it from the horse's mouth.
I do not know the answer to Deputy Wallace's question. It depends on the road in question. I do not know the answer to Deputy Luke ‘Ming' Flanagan's question but I undertake to ensure the Minister of State, Deputy Ring, responds to him in correspondence.
If the Minister gives us funds, he will show that it is not all about having a Minister.
There will be some initial allocation to swimming pools that were not funded last year. The Minister of State, Deputy Ring, will announce it this week.
Even to people the Government does not like.
10Deputy Denis Naughten asked the Minister for Transport; Tourism and Sport the steps he is taking to support tourism in the regions; and if he will make a statement on the matter. [22788/12]
239Deputy Sandra McLellan asked the Minister for Transport; Tourism and Sport his plans to better support tourism initiatives in rural areas; and the percentage of the overall budget allocated to developing rural tourism. [23392/12]
I propose to take Questions Nos. 10 and 239 together. The Government recognises that tourism is important to all regions, employing an estimated 180,000 people, many in rural areas. The jobs initiative introduced last year and the Government's action plan for jobs 2012 recognise the vital contribution of tourism to employment, economic activity and foreign revenue earnings. The VAT reduction on a range of labour-intensive tourism services from 13.5% to 9%, enhances the competitiveness of our tourism product. The visa waiver scheme is encouraging visitors from emerging markets to include a visit to Ireland when visiting the UK. The Government has also significantly reduced the cost of employing people by halving employers' PRSI for employees on modest wages.
In addition, the necessary structures to deliver The Gathering Ireland 2013, a major tourism development to attract overseas visitors to all parts of Ireland, have been put in place with the target of bringing an extra 325,000 visitors here in 2013. The initiative will be launched domestically this Friday, following successful international and trade launches in recent weeks.
The year 2011 saw a welcome recovery in overseas visitor numbers with year-on-year growth of 6%. While there was a marginal decrease in overseas visits in the first three months of this year, I understand that industry partners are positive about prospects for the year, with reports of advance bookings and inquiries being up on this time last year. Industry representative groups are hopeful we can achieve our target of a 4.5% increase in visitor numbers for the year.
The Government is providing over €143 million to support tourism in 2012 across a range of activities including overseas and domestic marketing, investment in tourism product and vital business supports to develop tourism across Ireland, in both rural and urban areas. I am satisfied tourism agencies are taking the necessary steps to support the sector at national and regional level.
I thank the Minister for his reply. I also welcome the confirmation by the Minister that the 9% VAT rate will remain until the end of 2013 as this is a positive development.
I wish to raise the issue of the Cinderella regions of the country as regards tourism promotion and the midlands is one of those areas which has fallen well short when compared to other parts of the country. I am sure the Aire Stáit's county of Tipperary has the same problem. Is it planned to reconfigure the tourism regions? For example, there is the ludicrous situation where the River Shannon is a boundary for tourism regions rather than being used as an asset or for the development of tourism with a specific focus on the river itself. Has consideration been given to encouraging
There are currently no proposals to reconfigure the regions as this has been a recent reorganisation. I am not sure to what extent tourists even recognise the existence of regions in any case. People tend to visit destinations rather than a region created by a tourism body. People have been travelling to traditional tourism hot spots to which visitors have travelled for centuries and these destinations tend to do very well, such as Killarney, Galway and Dublin. It is a challenge to get people to go to other areas which are less visited and should be visited much more, the midlands being a case in point.
Dublin Tourism is being reintegrated into Fáilte Ireland and it will be used to disperse tourists who stay in Dublin by encouraging them to visit other parts of the country such as the areas around Dublin and beyond and ideally, for them to spend a night in these areas. One of the factors mitigating against overnight stays by tourists is the great improvement in the road network. It is now very common for visitors to take day trips to Clare and the Cliffs of Moher, for example or to other parts of the country whereas in the past they would have stayed the night. It would be desirable to have events at night to persuade them to stay later in a region and perhaps overnight.
I take the Minister's point but it is also important to develop packages so tourists visit more locations other than Clonmacnoise, on whichever side of the Shannon. The difficulty arises when different regions are in place. I acknowledge that Tourism Ireland is focusing on Athlone and developing tourism packages in that area. Hopefully this should bring about a positive development.
I ask the Minister to spearhead a proposal to bring together the Office of Public Works, the National Parks and Wildlife Service, the tourism agencies and even the Department of Agriculture, Food and the Marine, to develop the types of tourism for the midlands such as heritage tourism. Issues about access can be dealt with by the Department of Agriculture, Food and the Marine and the upgrading of facilities can be arranged by the OPW and the National Parks and Wildlife Services. I refer as an example to Lough Ree which has an abundance of heritage assets. A total of 2.5 million tourists visited those type of facilities last year in various parts of the country. I refer also to activity and walking tourism with a total of 750,000 tourists last year. The midlands has plenty of capacity to develop this sector of tourism.
I am not sure I can spearhead such an initiative but if the Deputy has specific proposals I would be happy to have a meeting with him to see what can be done in this regard and involving those agencies. The most visited OPW site is the Rock of Cashel which is not situated in a traditional tourism hot spot, in the core of Ireland. It is crucial to develop a cluster of attractions because people are more likely to stay. There has been a lot happening on the development of activity tourism, in particular cycling and walking tourism, through the development of green ways and if we can afford it, the development of cycle and walking routes across Ireland which is a good way to bring people off the beaten track and encourage them to stay overnight in places they would not otherwise consider.
I thank the Minister for his response. The Gathering is a significant initiative and I am delighted to hear it is being launched this Friday. People have been very enthusiastic about it. However, like many other Deputies, I ask about the arrangements and the criteria for funding under the scheme. I ask what levels of co-operation exist between the Minister's Department and the cultural and tourism bodies and the local authorities regarding the Gathering initiative.
I refer to the Gathering initiative and what Deputy Naughten said about the Cinderella areas. If ever there was an area for growth it is the area that I come from, the Leitrim-Roscommon area bordering the Shannon. All of the ingredients are there. When it comes to the Gathering initiative, the ingredients are certainly there, considering that for all of my lifetime and for my father's lifetime, the only thing we could ever do was leave the area and emigrate and move to a different part of the world. From the point of view of the Gathering initiative, there will be any amount of people coming back and from the point of view of having ingredients, they are all there. We have the longest border with the mightiest river in these two islands. I come from south Leitrim and Roscommon. Only one eighth of the amount of money spent on tourism in Galway is spent in our county. I am not saying we will ever reach the level of Galway but to aspire to reach one third of the level spent in Galway would lead to increases in revenue of €90 million and at €30,000 for every job that is created, there is the potential to create 3,000 jobs. Instead of concentrating on the areas that everyone normally visits, I am trying to get a six foot eight man to reach to seven foot, which will never happen. We must try to get the ones that have growth potential and then jobs will be created. We have the ingredients and the Minister is the baker, so bake them.
The final leg of the Volvo ocean race visits Galway city this July. One of the events being organised by Let's Do It Global is a global village which will promote Irish food, innovation, the marine and tourism. Given that 350 accredited members of the media from participating countries including China, Canada and the United States, will be in Galway, does the Minister agree this presents an opportunity to promote the Gathering initiative?
The website for the Gathering initiative is now active and it contains the information. The initiative will be launched on this Friday and more information will be available then. The events and festivals programme is not yet fully developed but we are getting there. There has been engagement with the City and County Managers' Association and also with the cultural institutions. The Gathering initiative should not be regarded as a source of grant aid because it is about what people and communities can do and what they can contribute. There will be some funding for existing festivals but it is not intended that thousands of grants will be distributed to bodies, towns or families organising events. That is just not possible. It is important to get that message out and understood. We will certainly set up a platform by which we can assist people to organise gatherings, but we will not be handing out money for people to organise gatherings beyond a limited number of festivals and events.
As regards Deputy Luke ‘Ming' Flanagan's question, I think the ingredients are there in many parts of the country. Places such as Killarney and Westport, which have led the way in tourism in many ways, look at it differently from the way the Deputy does. They say they are the bakers who will take the lead for their areas. In Westport, all the hoteliers contribute to a fund which is used to market the town. Killarney has been co-operating like that for a long time also. The Government can assist but the bakers are the people on the ground who make the most of what they have, and perhaps do not expect No. 44 Kildare Street to do it for them.
The Volvo Ocean Race will be a great event and I am very much looking forward to it. I do not know if there are plans to market The Gathering at it, but I agree with Deputy Walsh, given the number of journalists attending, it makes sense to do so. I will certainly take that up with The Gathering's project team.
I propose to take Questions Nos. 11 and 22 together.
The Deputies' questions relate to the State's shareholding in Aer Lingus. Two working groups were established by the Government in 2011 on State asset disposals, one to consider the best approach in progressing the proposed part-sale of ESB, and the other to undertake a similar analysis of a number of other State assets identified by Government as potential candidates for disposal. The State's remaining 25% shareholding in Aer Lingus was considered as part of this group of assets. Both of these working groups completed their work in 2011 and reported to Ministers in December 2011. NewERA was centrally involved in this process together with all relevant Departments including mine. It was on the basis of the analysis undertaken by these two working groups that the Government agreed to the list of asset disposals announced on 22 February.
In relation to Aer Lingus, the Government considers that the State's remaining shareholding in the company is no longer a strategic asset as it does not enable the Government to determine Aer Lingus policy on issues such as the use of the airline's landing slots at Heathrow Airport. Accordingly, the Government has decided that the State's remaining shareholding in Aer Lingus will be sold at an appropriate time, but only when market conditions are favourable and at an acceptable price to be agreed by Government.
My Department is working in conjunction with the Department of Public Expenditure and Reform, and NewERA, to examine the potential options for the disposal of the State's stake and the issues that may need to be addressed in the context of the disposal of the stake.
It is disappointing that we are even considering the sale of Aer Lingus, which has been a flagship for this country for so many years. If we were to sell it at today's price of 97 cent per share, it would bring in approximately €160 million. In terms of a cost-benefit analysis, I do not know whether we would get value from selling it off given the effect on tourism, the jobs we have lost and the accessibility of Aer Lingus for people here, on the Continent and elsewhere .
We know the Minister has been in talks with other companies. At one stage, Ryanair said it was interested and Etihad Airways has also shown some interest. Is there any truth in the rumours that some of these companies are pitching for Aer Lingus? It has been mentioned in the Sunday Business Post that approaches were made. The Minister may be keeping tight-lipped about the matter but I would be interested to know. I do not believe it is in our interest to sell Aer Lingus.
Of course there is interest in the stake. The Deputy will be aware that Etihad has acquired 3% of Aer Lingus on the open market.
Yes.
Those kind of discussions are commercially sensitive and do not necessarily involve me directly. It would not be appropriate for me to meet with individual potential buyers. It is being done through a group made up of the Department of Public Expenditure and Reform, and my Department, and is led by NewERA.
I appreciate Deputy Ellis letting me in on this particular question. There were some media reports about a board meeting of Aer Lingus, which was due to take place last Friday. Part of the leaks in advance seemed to suggest that there was an item on the agenda concerning the consolidation of Aer Lingus maintenance activities on the grounds of the campus at Dublin Airport. Can the Minister give us any insight into that? In the context of today's announcement on Shannon, the Minister has set the future for the region based on activities which are ancillary to passenger activity, as to providing future employment potential at the airport. It is my view that if Aer Lingus, as the national carrier - or, at least, a carrier with a significant national shareholding - was to move its maintenance from Shannon to Dublin it would be somewhat belittling for the Government's policy to set Shannon as a centre of excellence for ancillary aircraft maintenance and general activity in that regard.
The Deputy's question would be better asked of Aer Lingus. It is a plc which the Government does not own or control. I cannot answer questions on behalf of Aer Lingus, or on behalf of Transaero for that matter. When I read reports about this in the media, which is where I heard about it, I contacted the chairman of Aer Lingus and the Government representatives on the Aer Lingus board to express my concerns. I impressed on them the Government's view that it is important to maintain employment in the mid-west.
The next Question No. 12 is in the name of Deputy Sandra McLellan
We have done that.
Have we done this already?
We have.
If Deputies are happy enough with that, we will go on to the next item. Question No. 13 is in the name of Deputy David Stanton. Question No. 12 not taken.
The Deputy's question relates to car parking charges at railway stations in Cork. This is a day-to-day operational matter for Iarnród Éireann and not one in which I have any role.
I have, however, been informed by Iarnród Éireann that the stations at Midleton, Carrigtwohill, Glounthaune and Little Island in County Cork have car parks which are charged on the same basis as commuter stations through the Iarnród Éireann network. Cash charges of €3 per day or €10 per week are payable via the car park pay and display machines. Alternatively, customers can use the "PaybyText" system at a cost of €2 per day or €8 per week.
I will ask Iarnród Éireann to respond to the specific concerns the Deputy has about parking policy at these stations. If he does not receive a response within ten days, I would ask him to contact my private office.
The question relates to the temporary lower 9% VAT rate that applies to a range of services in the tourism and leisure sector, including hotels and restaurants. The initiative is aimed at supporting the creation and maintenance of employment as well as helping tourism businesses to lower their cost base. This allows those businesses to offer a more competitive product offering to tourists.
Recent data from the CSO shows that prices as measured in the restaurant and hotels index are at pre-2008 levels, while the recreation and culture index shows prices are at 2006 levels. In pursuing these objectives, I was pleased to see that overseas visitor numbers increased by 6% in 2011. While there has been a marginal reduction in overseas visits in the first three months of 2012, indications from industry representative groups are positive with inquiries and advance bookings for the coming months ahead of those at the same time last year. Tourism Ireland is targeting growth in overseas visitor numbers of 4.5% in 2012.
Following recent discussions with the Minister for Finance, I can confirm to Deputy McHugh that I have obtained his assurance that the lower rate of VAT will be maintained throughout 2013 so that businesses, tour operators and customers alike can continue with their planning for the 2013 season with the assurance that the 9% rate will apply. Moreover, 2013 is the year of The Gathering, during which we hope to bring an extra 325,000 visitors to Ireland, and the lower VAT rate will be an important contribution in this regard. The maintenance of the lower rate, particularly in the context of continued pressure on the public finances, is a further example of the importance which the Government attaches to the tourism industry and the contribution it can make to economic recovery.
I welcome this announcement which is significant. As regards the reduction of 9%, when the wheel is not broken it is important not to fix it. Having spoken to many people in labour-intensive restaurants, the real difference in moving from 13.5% to 9% is whether it permits them to stay in business. That is how significant this matter is. The Minister is working on a range of measures, be it the tourist visa waiver, on which he is working with Minister Deputy Shatter, or his announcement, in an Irish Independent supplement entitled “Tee Time in Donegal”, of links courses in the north west recently. He can help to create the proper environment at a political level or dimension but grassroots leadership is also required. Last weekend Daniel O’Donnell, a household name in the UK and in Ireland, opened a Daniel O’Donnell visitor centre in Dungloe. I spoke to Jim White, a former Member of this House, last weekend and he told me he will be bringing 10,100 German tourists to Donegal between now and October. Local leadership will be shown once a proper political environment is provided.
I welcome this measure. It is a good news story for people in the restaurant business. That business is labour intensive and this measure will mean the difference between restaurants staying or going out of business. It is a positive announcement.
I wish to refer to a previous question related to the traditional patterns of tourists. There is a traditional triangular tourist trail. Tourists who came into Dublin would have gone to Killarney, travelled to Galway and perhaps up as far as Mayo and then back to Dublin. That is the extent of the lifespan of the tourist trail. We have to change that and we will do it. We will look at the spin off from Derry being the City of Culture next year, our being a host port for Tall Ships Race this year and the Royal Portrush staging the Irish Open. There will be spin offs for counties such as Deputy ‘Ming' Flanagan's if we start to work with our northern counterparts. Let us create a new triangular trail. Let us get tourists into Belfast, over as far as the Giant's Causeway and into Donegal. Let us be positive. A day such as today is a positive one and I welcome this announcement.
The Deputy has strayed a little from the question. I call the Minister to reply.
I thank the Deputy for the question. The reduction in the VAT rate has been successful in increasing employment in the sector and it is clear that, by and large, it has been passed on to consumers. It is important the reduced rate be continued until the end of 2013. That was always the intention. That was the announcement made at the time of the introduction of the jobs initiative and it is what is on the Revenue notice. There was some uncertainty about it earlier in the year and the tourism industry lobbied hard to make sure it had certainty on this. Having discussed it with the Minister for Finance, I am glad he is willing to allow us to give certainty in order that the industry will know what prices it will charge for next year.
Regarding the opportunities for Donegal, I agree strongly with Deputy McHugh's comments. There is a huge opportunity there to build on what is happening in the North. With the ongoing improvements on the A5, it will make it easier to get to and from the county.
I was interested to hear the Minister mention that overseas tourist numbers have increased by 6% or 7%. How does one differentiate between visitors overseas and the hundreds of thousands of people who have left and will leave the country and come back to visit their families for a week? Is there a way of differentiating between those visitors? If there is not, the more who emigrate, the more our tourism industry will thrive in the coming years. My brother likes to come home every now and then but he is not a tourist.
I too would like to commend the Minister on his decision to retain the 9% VAT rate for restaurants and the hotel industry. I point to the importance of the Minister liaising with his northern counterpart on the issue of tourism investment and ensuring tourists are attracted to visit counties such as Donegal. With the opportunities that will arise in the near future with Derry being a host port for the Clipper Round the World Yacht Race and it being the City of Culture next year, tourist offices in Northern towns will be key in directing tourists to visit those counties. It was difficult in the past to get tourists to visit the northern part of the country, understandably because of the fact that we are so close to the North and there were probably not the required interlinkages. I commend him on his golf initiative covered in the Irish Independent. I ask that in his marketing strategy he gives particular attention to the points I made.
I welcome the Minister's announcement on the VAT rate. It was great to see the number of English tourists who were over for the racing festival at Punchestown two weeks ago. The retaining of the low VAT rate will ensure festivals such as Punchestown and race meetings around the country will benefit from it.
On Deputy ‘Ming' Flangan's point, a Dublin Bus driver who drives one of the hop on hop off tourist buses told me recently that the number of tourists around the city of Dublin is much higher than it has been for the past number of years. The sort of initiative the Minister has shown today is extremely welcome.
I welcome the Deputies' comments. I do my best to keep in close contact with my Northern counterpart, Arlene Foster. We even managed to attend a rugby match in Ravenhill together two weeks ago. We try to keep in contact as much as possible. One thing I would like to see happen which has not happened yet is for Derry to get involved in the Gathering, particularly with it being the City of Culture next year and the various events that will happen in 2013. Even if Northern Ireland as an entity does not get involved in the Gathering, perhaps Derry might decide do so on its own bat. That would be positive for Derry and Donegal.
On Deputy ‘Ming' Flanagan's question, we do get a breakdown of such visitors. It comes later in the year. The numbers are broken down into holidaymakers, business tourists and VFRs who are people visiting friends and relatives. What we cannot break down within the category of those visiting friends and relatives is how many of them are returning migrants and how many of them are people who have moved abroad perhaps permanently who come back to visit friends and relatives. We know they bring money into the economy, spend money here and they go to events and attractions and so on.
Written Answers follow Adjournment.
