Timmy Dooley
Ceist:1. Deputy Timmy Dooley asked the Minister for Transport, Tourism and Sport his intentions with regard to the State's holding in Aer Lingus; and if he will make a statement on the matter. [57533/12]
Priority Questions
Air Services Provision
The question relates to the Minister's intentions concerning the State's shareholding in Aer Lingus. This shareholding is one of the assets included in the State asset disposal programme and the Government has agreed that the shareholding is to be sold at an appropriate time but only when market conditions are favourable and at an acceptable price to be agreed by Government. A steering group has been established to progress the sale and to examine the potential disposal options and the issues that may need to be addressed in the context of the disposal. The steering group is chaired by my Department and comprises representatives from the Department of Finance, the Department of Public Expenditure and Reform and NewERA.
NewERA continues to provide advice and expertise to the steering group. In view of the complexities involved in this particular disposal, NewERA has recently tendered for the appointment of an adviser to undertake additional analyses focused on evaluating the best options for a disposal in order to maximise the return for the Exchequer while protecting the interests of the consumer and preserving a competitive environment. As the Deputy will be aware, the European Commission is currently conducting a phase two investigation of Ryanair's offer for Aer Lingus under the EU merger control rules. The Commission's decision is due in early February 2013 and my Department continues to closely monitor the case. Irrespective of the outcome of that investigation, the Government has decided it is not in principle prepared to sell its shareholding in circumstances which could significantly impact on competition and connectivity in the Irish market. The Deputy is well aware of the Government's decision in the past few days not to sell this shareholding to Ryanair.
I am aware of the Government's position in the last number of days. Nevertheless, I am somewhat troubled that it took six months to come to the conclusion that it would be the wrong decision for the State to dispose of its shareholding in Aer Lingus to Ryanair. I am concerned that this came on the back of an announcement or rather what appears to be leaked information provided to the Commission by Ryanair. This indicated how the airline could get around the anti-competitive nature of an amalgamation of the two airlines and outlined a notion of selling the Heathrow slots to British Airways. Quite correctly, that struck fear into the minds in the Government and forced action on the issue. I am disappointed that it took so long for the Government to recognise the very real challenge that the amalgamation of the two airlines would pose to competition, air fare competitiveness and both business and tourism interests.
Is the Government confident this move will stop Ryanair acquiring Aer Lingus and has the Government had any indication from the European Commission about the likely outcomes? Will the Government stance carry much weight with the Commission? What is the reason for the delay in the decision? I do not understand why it took so long, and it gave some level of confidence to Ryanair that the Government was at least considering the matter. That was unhelpful.
I am somewhat troubled by the notion that the Government is still pursuing through NewERA the disposal of the shareholding. This is not about partisan politics. Ryanair is a very effective company, and although a trade sale to Etihad Airways or British Airways may seem helpful, it is certainly not beyond the capabilities of Ryanair to acquire the shareholding at a later stage. One could not be confident in just doing a trade sale to Etihad Airways or another international player as that will not ring-fence the very important competition which exists between Aer Lingus and Ryanair. I do not believe that will put the Heathrow slots beyond the attraction of other airlines.
I am glad the Deputy welcomes the Government's decision, which was correct. In one sense the Government very much needed to consider the case and make the decision and there was no delay in making the announcement. No information is available on how the Commission will act and I would not have expected the Deputy to believe such information is available. We know there is a defined time for the decision and the Government has taken much cognisance of it.
As I am sure the Deputy is aware, Ryanair has produced a package aimed at overcoming competition issues. It is solely a matter for the European Commission to make a decision on this issue within a specified timeframe. The Government will await the Commission's decision.
The Government made the correct decision in this matter for many of the reasons the Deputy outlined. I am glad the Opposition welcomed our decision. We will sell the State's share in Aer Lingus under our policy of disposing of State assets. This will be done at the opportune time and when it is of the greatest economic benefit to the country to do so. None of us can predict when that will be, however.
The disposal of State assets is an important component of the Government's NewERA agenda. While it may be prudent not to sell the State's share in Aer Lingus to Ryanair today, it is possible that Ryanair will acquire the State's shareholding by a circuitous route or through a third party within a short period of its being sold. The share in Aer Lingus is of much more strategic value than the Government has indicated. For this reason, I will strongly oppose any decision to sell the 24% stake in the company.
Taxi Regulations
Dessie Ellis
Ceist:2. Deputy Dessie Ellis asked the Minister for Transport, Tourism and Sport if he has met with the Department of Justice or An Garda Síochána to discuss the enforcement of taxi regulations and to aid in the crackdown on illegal drivers, cloned licences and other such offences. [57239/12]
I met with the Garda Commissioner as recently as last month on the matter of enforcement. To enforce the taxi regulations, including pursuit of the offences mentioned in the Deputy’s question, the role of the Garda Síochána is critical to support the work of the enforcement officers of the National Transport Authority, NTA, who have responsibility for nationwide enforcement in this regard.
Action 24 of the taxi regulation review report proposes strengthening the collaboration between the Garda and the NTA to secure effective on-street enforcement of taxi regulations and refocus the compliance activities of the NTA towards a greater level of off-street compliance and enforcement. In addition, it is recognised that the Garda will require and receive support from the NTA in targeting and co-ordinating aspects of enforcement activity. It will also require support from other agencies.
There has been very good co-operation between the Garda Síochána and the NTA on enforcement issues this year and a substantial number of joint operations have been undertaken. The NTA is currently drafting an enforcement plan for 2013 which will be co-ordinated with the Garda Síochána's policing plan for 2013. This will assist with continued co-operation during 2013.
I thank the Minister of State for his reply. Aside from the significant oversupply in the taxi industry, a number of people are operating illegal taxis, whether by using bogus licences or driving vehicles without proper certification. Action 31 of the taxi regulation review report proposes that all taxis be fitted with branding. It will be necessary to include in any such signage quick response or QR codes and possibly a sign indicating the county of origin of the vehicle. While I am not in favour of the Border, vehicles are travelling across the Border to pick up fares. If the county of origin of a taxi was clearly marked on taxi signage, it would help identify taxis entering areas from outside. I am not sure what is the position on this issue and I ask the Minister of State for his views on it.
More inspections are needed and I welcome the increased role of the National Transport Authority and the Garda Síochána in this area. In addition, the space available for taxi ranks is not sufficient. Greater monitoring and enforcement of the regulations are required at the ranks.
I thank Deputy Ellis for his contribution. I note from previous contributions he has made and conversations I have had with him that he has a strong interest in the issue of taxis. The taxi Bill to be introduced in the Seanad early in the new year is the most comprehensive legislation on taxis in the history of the State. I hope everyone will support the Bill as it offers the only way forward for the taxi industry. It addresses every aspect of the taxi sector and empowers the National Transport Authority to implement and enforce taxi regulations.
I concur with many of the points Deputy Ellis makes. Enforcement is critical. Last year, 3,000 vehicles were inspected, a substantial number by any standards. However, further improvements can be made, which is the reason we are empowering the Garda to increase the number of inspections it carries out and impose on-the-spot fines. It will also be possible to suspend a taxi driver's licence where there is repeat offending.
I fully agree with the Deputy on the need to empower the National Transport Authority to use other monitoring tools at ranks, including CCTV. Serious issues, including criminality, arise at taxi ranks and must be addressed.
The Deputy makes a good point on door signage, which is crucial. It was the taxi regulation review group, rather than me, which decided that signage was necessary. Its recommendation was put to the taxi committee, which consists of taxi drivers, and it decided on the form the signage should take. We must examine the possibility of using roof signage to ensure drivers operate only in the areas in which they are licensed to operate. I am sick and tired of hearing stories of large numbers of taxis from outside the area arriving at major events such as the Galway Races or the Cork Jazz Festival to make a quick buck by taking the revenue of full-time local drivers. Action will be taken on this issue.
I remind Deputies that when a Minister concludes a reply four minutes remain for supplementary questions and ministerial replies. For this reason, I will let Deputies know when they have three or two minutes left.
It is coming up to Christmas and we are all feeling flaithiúlach.
I will not feel flaithiúlach until my job is done.
Regional Airports
Luke 'Ming' Flanagan
Ceist:3. Deputy Luke 'Ming' Flanagan asked the Minister for Transport, Tourism and Sport if he has examined the competitive impact of the Shannon Airport support package on neighbouring airports such as Ireland West Airport Knock and on the region it serves; his national aviation priorities; and if he will make a statement on the matter. [57537/12]
In the first instance, there is not a support package in place for Shannon Airport. The Deputy will recall that the Minister for Finance announced in his recent budget speech that he will put in place measures to facilitate the construction of hangars and ancillary facilities that will be key to attracting additional aviation sector organisations. However, these are based on an appreciation of the contribution that aviation can make nationally. They are aimed at attracting investment to Ireland. These measures will be available on a national basis to all airports that wish to avail of them, including Knock and Shannon airports.
The Deputy also refers to aviation priorities and, reflecting this Government's recognition of the importance of the sector, I can confirm that one of our priorities for 2013 is the development of a new civil aviation policy. This process was initiated at a conference earlier this month and will be pursued through 2013, leading to the adoption of a new policy in 2014. In that context, I expect the role of both State and regional airports to be fully explored.
The Deputy will be aware that the Government decided last month to proceed with the separation of Shannon Airport from the Dublin Airport Authority and merge it with a restructured Shannon Development to form a new integrated Shannon entity in public ownership. The order specifying 31 December 2012 as the date of separation of Shannon Airport from the DAA was executed last week following its approval by both Houses of the Oireachtas. The Government also decided to rationalise the tourism and enterprise support activities in the region by transferring Shannon Development’s functions in these areas to the relevant national agencies.
The Government was faced with two ailing companies in Shannon that are not realising their potential to make a contribution to the economy of the wider region. We are restructuring State-owned assets to make better use of them as a catalyst for the development of sectoral opportunities centred on the airport. I expect that these decisions will give rise to some degree of increased competition among Irish airports, including Knock airport. However, the aim is to increase the overall number of passengers to and from Ireland through increased efficiencies and the attraction of new aviation business that can have a beneficial national impact.
It should be noted that Knock airport and the other regional airports which are not owned by the State have been supported over the years under the regional airports programme, which is aimed at ensuring balanced regional development. Under that programme, Knock airport has received around €40 million since 1993. This includes funding for the public service obligation, PSO, air services, which, although paid directly to the airlines, also support the airport. More than €1 million is being provided this year to the airport, despite the difficult economic circumstances.
I thank the Minister of State for his answer. There are serious concerns about statements made in recent weeks, including a statement in the national media on 31 March. Only one meaning could be taken from the Minister, Deputy Varadkar's statement, namely, that the pesky airport at Knock would want to stop taking passengers from Shannon. The Minister stated:
If nothing was done for Shannon the airport stood in danger of being passed out by Knock airport in passenger numbers, despite a current gap of over 900,000 passengers. I think if the trends continue as they are it will happen because Shannon’s numbers are already down 20 per cent this year and Knock is still growing.
The last sentence of his statement was interesting. He stated: "It is only a matter of time without a change in policy."
I would cheer on developments at Shannon Airport, but if that must be done at the expense of Knock airport, which is washing its face financially, it would not be good. A couple of weeks ago, Mr. Liam Scollan of Knock airport told a meeting of our transport committee that he had serious concerns about the quality and level of engagement with the Government. He stated:
We have met Minister Varadkar and his officials on numerous occasions, but our representations have not been afforded fair consideration [which is a fair claim]. In fact, the Minister is clearly on the record in both national and local media [as I have quoted] that Knock Airport was the problem for Shannon and that he intended to develop policies to rectify that.
This does not make sense. Knock airport should not be punished for being a success. It is one of the few entities in the area in which I live that has done well. We have watched as Garda stations, post offices, etc., have closed down, but the airport is a beacon of hope. I am sure the Minister of State, Deputy Ring, agrees. The airport offers us phenomenal opportunities in terms of developing tourism in areas that not only are not saturated by tourism, but where tourism does not even exist. Instead of punishing Knock, why not develop a plan that helps all of the airports in question? The ones that work the best should be encouraged to thrive. Do not treat them as if they are some sort of nuisance to Shannon Airport. Doing so will not work for any airport.
I thank the Deputy for his comments. He has spoken on this issue previously and he holds his opinion passionately. Knock airport is not under threat. It is a fine, successful airport, a fact that must be acknowledged. The Deputy's references to statements by my colleague, the Minister, should be taken in context. Those comments were more a reflection on Shannon's situation than on Knock's success. Shannon is a world renowned brand. As an airport, its achievements are known worldwide. However, its passenger numbers have dropped considerably, and it was in this context the Minister commented.
A change in policy in respect of Shannon Airport was necessary. For this reason, the Government has put together a plan that should have been put in place many years ago. I advocated for such a plan for many years. There is some associated risk, but the plan will be a success and it will not be a threat to Knock airport. I am sure that the airport will achieve even more success. Shannon Airport has successfully won a number of new flights from the US and Europe. These do not compete with Knock but complement the services available there.
Please ask the Minister to engage more. The relevant people feel he is not engaging. They are reasonable and good people.
I will take that message to him.
This morning, Sir Terry Wogan gave Shannon Airport a good boost on "The John Murray Show".
He is biased.
He supported The Gathering.
He lives in Limerick even though he supports Shannon and County Clare.
Tourism Industry Issues
Timmy Dooley
Ceist:4. Deputy Timmy Dooley asked the Minister for Transport, Tourism and Sport the way he will help put in place a viable hotel industry; and if he will make a statement on the matter. [57534/12]
The Government has implemented a range of measures to support the tourism and hospitality industry, including hotels. VAT has been reduced to 9% on accommodation and restaurant services and this lower rate will continue throughout 2013. The visa waiver scheme is encouraging visitors from emerging markets to add Ireland to their trips when they are visiting the UK. Also, the halving of employers' PRSI for those on modest wages has reduced the cost of employing people.
In 2013, the Government will spend almost €140 million through its agencies to support the tourism industry, to market tourism at home and abroad and to support product development. Fáilte Ireland also provides a range of business supports to tourism enterprises. These supports cover areas such as financial advice, business mentoring, productivity improvement, cost control, sales and marketing, e-business and customer care. They also assist tourism businesses to engage constructively with their banks. I am also glad to see that, in 2011, hotel room occupancy rose. Combined with better cost control, profits per available room before tax rose by over 22%.
In the context of recent budgets, the Minister, Deputy Varadkar, has signalled his intention to have further discussions with the Minister for Finance on the possible involvement of hotels in the extended employment and investment incentive scheme, EIIS, and the real estate investment trust, REIT, initiative. As the Deputy is aware, 2013 is the year of The Gathering and the tourism industry, particularly the hotel sector, will be able to benefit from it fully.
I welcome the Minister of State's reply. I acknowledge some of the work the Government has done in assisting the tourism industry at a particularly difficult time.
The Irish Hotels Federation, IHF, has published a policy document on the future of the hotel industry. As the Minister of State will be aware from his knowledge of that industry, the report was compiled by Dr. Alan Ahearne, who has considerable experience in the sphere of economics and possesses an understanding of the potential for growth. It is clear from the report that the hotel sector in particular is under strain. We all know of examples of hotels that were built in the wrong locations. In trying to survive, they dislocate business to their areas, offer rates that are lower than are commercially viable and are involved in the NAMA process, which will take time to be resolved. They are placing a strain on what might be referred to as "Mom and Pop" hotels, family-run businesses that did not get caught up in the crazy property game but now find it almost impossible to compete.
While I accept that The Gathering will have an impact, it will not resolve the long-term issue. The situation will not be too bad in the large cities. There is a strong demand for hotels in Dublin in particular. However, hotels in the more peripheral and, one might say, scenic areas are under significant pressure.
Does the Minister of State believe that the EIIS could be extended to include restructured hotels? This move was called for by the IHF. As the Minister of State knows, hotels cannot qualify for the scheme currently. Would he consider recommending to the Minister for Finance, Deputy Noonan, the inclusion of an extension of this scheme in the Finance Bill? The qualifying investor fund specially designed for restructured hotels can be attractive for private investors, in particular foreign investment. There is some appetite in this regard. Another way to break the logjam in the hotel market would be to invest moneys from the National Pensions Reserve Fund, NPRF, in the dedicated hotel restructuring fund.
Dr. Ahearne's report outlines a number of positive initiatives. One recommendation called for the State to invest heavily, but I do not believe that would fly. Will the Minister of State comment in this regard?
The Minister, Deputy Leo Varadkar, and I have met, both together and separately, with representatives of the Irish Hotels Federation on several occasions. The Deputy has rightly identified the serious problems facing people in the sector. As he knows, however, it is for the Minister for Finance to make a decision as to whether any of the initiatives to which he referred are included in the Finance Bill. It is an issue that the Minister, Deputy Varadkar, has taken up with the Minister for Finance, as have I.
I agree that debt restructuring is a major concern for hotel owners. Some of them would be coming into profitability in the next year or two were it not for their debt burden. The Deputy is also correct that this is a particular problem for hoteliers in rural areas as opposed to in the cities, where there has a been significant improvement in occupancy rates. The recent initiative to reduce VAT and PSRI has proved successful in creating extra jobs in the sector. I acknowledge, however, that serious issues remain, including over-capacity and below-cost selling of bed nights. As I said, we are engaging with the Department of Finance in order to see what can be done. Ultimately, however, it is a matter for the Minister of that Department as to what specific measures are introduced.
North-South Ministerial Council
Sandra McLellan
Ceist:5. Deputy Sandra McLellan asked the Minister for Transport, Tourism and Sport if he will provide an update on discussions held at the meeting of the North-Ministerial Council in tourism sectoral format on 28 November 2012 in Armagh, including discussions regarding Tourism Ireland's business plan for 2013; and if he will make a statement on the matter. [57752/12]
I attended the 13th meeting of the North-South Ministerial Council in tourism sectoral format in Armagh on 28 November. The Northern Ireland Executive was represented by Ms Arlene Foster, MLA, Minister of Enterprise, Trade and Investment, and Ms Carál Ní Chuilín, MLA, Minister of Culture, Arts and Leisure. Tourism Ireland's chairman, vice chairman and chief executive officer also attended.
The meeting provided a good opportunity to discuss tourism performance for the island of Ireland to date in 2012, including the overseas marketing highlights of the year. In terms of the future, Tourism Ireland's business plan for 2013 was discussed. We also had a very useful exchange on major tourism events and initiatives planned for next year. Obviously, our main focus is on The Gathering, while the focus in Northern Ireland will primarily be on Derry-Londonderry's designation as United Kingdom city of culture and the World Police and Fire Games which are being held in Belfast. A paper dealing specifically with the Great Britain market was also discussed. The work of the tourism recovery task force was welcomed and agreement made that the recommendations of the GB Path to Growth strategy will be implemented by Tourism Ireland in 2013 and beyond.
The meeting also provided me with the opportunity to invite the Ministers, Ms Foster and Ms Ní Chuilín, and their relevant officials to EU Presidency-related events we will be hosting next year. It was agreed to hold the next tourism sectoral meeting next spring.
I thank the Minister of State for his reply. Tourism is specifically identified in the Good Friday Agreement as one of the key areas for North-South co-operation and consequently one in respect of which the North-South Ministerial Council meets in sectoral format. The aim of the council in this particular format is to make decisions on areas of common policies and approaches specifically as they relate to tourism. These include policies and actions to be implemented by Tourism Ireland, the body with responsibility for promoting the island of Ireland overseas as a tourist destination.
The previous meeting of the North-South Ministerial Council in tourism sectoral format took place on 25 January 2012. Among the issues on the agenda at the most recent meeting of the council, on 28 November in Armagh, were, as the Minister of State indicated, Tourism Ireland's business plan for 2013, major tourism opportunities North and South in 2013 and a review of this year's visitor numbers to the island of Ireland. Will he elaborate on some of the discussions that took place in regard to the business plan and the tourism opportunities?
The Minister of State mentioned the tourism recovery task force that was formed early in 2011 with the aim of ensuring growth in inbound tourism. It includes representatives of Fáilte Ireland, the Northern Ireland Tourist Board and Tourism Ireland and is expected to make recommendations to the council. Will the Minister of State provide specific details of the recommendations made for 2013?
It was a great experience for me to attend my first meeting of the North-South Ministerial Council in its tourism sectoral format. In particular, I was pleasantly surprised at the way in which participants worked so closely together. Both North and South, we are all aware of the importance of tourism to the island as a whole. We spoke about upcoming major events in the sector, including The Gathering, the World Police and Fire Games in Belfast next year and Derry's designation as the United Kingdom's city of culture for 2013. We also discussed the efforts being made to win back some of the British market. Despite a very successful 2012 in general, the reduction in the number of British visitors represented a weak link, particularly given that it is the most important market for both North and South. In addition, we discussed the business programme to be put in place for next year, which will include an aggressive marketing campaign in Britain to win back some of the visitors we have lost in recent years.
The most pleasant aspect of this discussion was the evidence of how well we are all working together, the common denominator being our desire to attract people to the island as a whole. I was delighted to have the opportunity to engage in discussions with the Deputy's colleague, Ms Ní Chuilín. I have invited both Ministers, Ms Ní Chuilín and Ms Foster, to participate in the major tourism conference that will take place from 7 to 9 March, inclusive, during Ireland's Presidency of the European Union. We hope to assist them in any way we can, and vice versa, in meeting our joint objective of attracting visitors to the island.