Dáil Éireann díospóireacht -
Thursday, 26 Jan 2023

Vol. 1032 No. 3

Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions

Tourism Industry

Imelda Munster

Ceist:

1. Deputy Imelda Munster asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media further to Question No. 1 of 17 November 2022, if she will provide an update on whether the wide range of alternative options being explored by the Government will be made available in time for the reopening of hotels to tourists in summer 2023, and on the engagement carried out by her Department on the senior officials group, including a copy of or details of the concerns she communicated on behalf of the tourism sector to the Minister for Children, Equality, Disability, Integration and Youth, and any response received; and if she will make a statement on the matter. [3676/23]

Deputy Imelda Munster

Further to Question No. 1 of 17 November 2022, will the Minister provide an update on whether the wide range of alternative options being explored by the Government will be made available in time for the reopening of hotels to tourism in summer 2023, and on the engagement carried out by her Department on the senior officials group, including a copy of or details of the concerns she communicated on behalf of the tourism sector to the Minister for Children, Equality, Disability, Integration and Youth?

Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media (Deputy Catherine Martin)

The war in Ukraine, combined with the high number of international protection applicants, continues to put real pressure on the Government's ability to offer humanitarian accommodation and has resulted in the largest humanitarian effort in the State's history. The Department of Children, Equality, Disability, Integration and Youth is availing of the wide range of offers of accommodation made to it, including the use of office buildings and sports facilities, to address the accommodation shortfall. These options are necessary to provide shelter to international protection arrivals, to meet basic needs and to prevent homelessness.

The Government is focused on how to continue the sustained support for those fleeing the war in Ukraine, including those already here as well as those likely to be further displaced by the ongoing conflict. As part of this, the Government agreed that a move from an emergency response to a more mainstreamed approach, including a reduced reliance on serviced accommodation, is appropriate. This includes an increased focus on rapid-build housing and a new call for vacant homes led by local authorities.

I can confirm that the Government has approved the construction of 700 rapid-build homes with the potential to house up to 2,800 individuals in family units. The rapid-build homes will be constructed on State-owned land. The Office of Public Works, OPW, is leading the development of this accommodation in conjunction with the Department of the Minister, Deputy O'Gorman. The objective is to install 500 units by March-April 2023.

My Department, at the senior officials group on Ukraine, has communicated the potential challenges arising for the tourism ecosystem, particularly in those parts of the country where high proportions of the tourism accommodation stock are directed to humanitarian purposes. The recent report from the Irish Tourism Industry Confederation, which called for a reduced dependence on tourism accommodation and a geographically balanced spreading of such usage across the country, is relevant in this context.

My officials are engaging with a range of Departments, with input from colleagues in Fáilte Ireland, on how best to mitigate the potential impacts on the wider tourism ecosystem of long-term use of tourism accommodation. Analysis is being done on those towns or areas most impacted in this regard, with a focus on the sectoral skills at risk and the businesses suffering most from the lack of tourism accommodation. My Department will engage further on that analysis in the period ahead.

An Leas-Cheann Comhairle

Go raibh maith agat, a Aire. You will have a chance to come back in.

Deputy Imelda Munster

As the Minister said, the Irish Tourism Industry Confederation compiled a report that revealed that more than one in five tourist beds in Ireland are contracted by the State. That is 22% of the country's tourism accommodation capacity, including 15% of hotel rooms, to provide shelter for those fleeing Ukraine and the thousands of other asylum seekers from other countries. The fear is that the tourism season starts in early March and, judging from what the Minister has said, the figures are particularly high outside Dublin. There does not seem to be a real plan. The OPW said earlier in the week that 200 rapid-build homes would be available between early and mid-2023. The Minister has said there are 500, but I have seen no evidence of that and there is no guarantee or commitment. The fear is that the tourism sector will not be fully open for the early part of the tourism season. What plans are there for those who are currently in hotel rooms? Where do they go?

Deputy Catherine Martin

I have regular interaction with my colleagues in the Government on this issue and have communicated the industry's concerns about the long-term effect this issue could potentially have on our tourism sector, especially, as the Deputy said, with the tourism season really kicking off in March.

I meet the Minister, Deputy O'Gorman, every week and have discussed the impact of the humanitarian response on tourism with him and other Cabinet colleagues.

The Government has approved the construction of rapid-build homes, with the potential to house up to 2,800 individuals and family units. These will be built on State-owned land. After a programme of engagement with public representatives and local authorities, work has begun on the first phase of sites in Cork, Cavan, Claremorris, Mallow and Thurles. Following further engagement and the completion of suitability assessment work, further sites will come on stream in the coming weeks.

I met the Irish Tourism Industry Confederation, ITIC, in December following the publication of its report on the impact of the Ukrainian conflict. Officials in my Department and Fáilte Ireland meet representatives of the tourism sector monthly. These meetings are hosted by Fáilte Ireland. The hospitality and tourism forum that the Minister for Enterprise, Trade and Employment, Deputy Coveney, and I will co-chair will meet next week to hear and address concerns.

Deputy Imelda Munster

From the start, hotel accommodation was seen as a short-term solution. It is not an ideal medium-to-long-term solution for the families involved. We are six weeks away from when the tourism season starts. The Minister is not responsible for sourcing accommodation, and I am not for one moment saying she is, but she is responsible for the tourism sector. Apart from the OPW's 200 rapid-build homes that may be ready between early April and mid-2023, there does not seem to be a plan, which has been the problem from the start. There are no figures. We do not want to reach a point of chaos. The ITIC has been saying this since November, but the Government has had since last March to plan. We are in unprecedented and difficult circumstances, but that is being compounded by the Government's lack of planning.

Deputy Catherine Martin

To clarify, there will be 700 rapid-build homes. There will be up to 6,000 beds available in the coming months through the combination of rapid-build homes, the work on vacant homes that is being led by local authorities and the refurbishment work led by the Department of Housing, Local Government and Heritage. I am in regular engagement with the tourism sector and am fully cognisant of its concerns. I will meet it again through the tourism and hospitality forum with the Minister, Deputy Coveney. We are also concerned about the impact on ancillary businesses. We will consider supports for tourism and hospitality in the coming weeks.

Film Industry

Richard Boyd Barrett

Ceist:

2. Deputy Richard Boyd Barrett asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media if she is aware of the recent hearings at the budget scrutiny committee about section 481 film credit and the concerns raised by Equity about the failure of producer companies to vindicate the rights of actors, performers, directors and writers in respect of intellectual property and EU directives; the concerns raised by representatives of film crew about the failure of producer companies to vindicate their rights in terms of employment legislation, in particular the Protection of Employees (Fixed-Term Work) Act 2003, and whether she intends to take action; and if she will make a statement on the matter. [3876/23]

Deputy Richard Boyd Barrett

The Minister may be aware that the Committee on Budgetary Oversight, which I am a member of, has been examining section 481 relief, which goes to film producer companies to make films. In return, those companies are supposed to give quality employment and training and comply with all relevant legislation. The Minister may have heard Equity saying that people are being forced to waive their rights to intellectual property, royalties, the equitable remuneration they are entitled to and so on. Film crew have said that their rights under a series of employment legislation are not being vindicated. How will the Minister respond to these concerns?

Deputy Catherine Martin

I thank the Deputy for raising the film industry in the week that is in it. This is an opportunity to congratulate Irish people on their Oscar nominations. The annual global spotlight on the Oscars is now shining on Ireland's culture, our beautiful scenery and, most particularly, our creative talent. The House will join me in congratulating the casts and crews of "An Cailín Ciúin" and "The Banshees of Inisherin", including Colm Bairéad and the team, Kerry Condon, Colin Farrell, Brendan Gleeson, Barry Keoghan and Martin McDonagh. I also congratulate other Irish nominees - Paul Mescal, Richard Baneham and Jonathan Redmond - on their nominations. It is a pleasure to be able to name so many Irish people who are making their mark on a global stage. Success breeds success and Ireland is a more attractive location for film-making as a result.

I understand that the Deputy is referring to matters raised at the Committee on Budgetary Oversight's examination of section 481. I am aware that the committee has taken evidence from many witnesses and organisations as well as from officials from my Department. As I understand it, many different views were expressed to the committee, with most witnesses underlining the importance of section 481 to the audiovisual industry and to Ireland.

I respect and am passionate about the rights of workers, but as I have stated previously, this matter does not fall to my Department. Employment law is the responsibility of my colleague, the Minister for Enterprise, Trade and Employment, as are the mechanisms for dealing with disputes - the Workplace Relations Commission, WRC, and the Labour Court. These are the appropriate avenues for complaints relating to employment law. I ask that, if the Deputy is aware of wrongdoing, he please bring that information to the WRC.

I understand that the intellectual property issue raised by Equity focuses on the question of whether residuals are paid. This is a matter for consideration by the members of Equity in conjunction with SIPTU. If they so decide, they can enter into negotiation with the organisations and companies that engage them.

I wish to bring to the attention of the House that our Oscar-nominated films were made during Covid. They should be applauded for this. Every one of the cast and crew of the films worked under difficult restrictive protocols at all times during production. I am so proud of our film industry today.

Deputy Richard Boyd Barrett

Obviously, we all share in the celebration of the success of "The Banshees of Inisherin" and "An Cailín Ciúin", but that success, which results from performances, writing and directing as well as the crews who stood behind the cameras, underlines the need to guarantee, vindicate and champion the rights of performers, writers, directors and the crew who make those films and not to pass the buck, which the Minister has essentially just done. Those films and all other films in this country are funded with public money and are subject to the requirement that we get quality employment and training and that the intellectual property rights of writers, performers and so on are guaranteed.

Equity has made it clear that its members are being forced to waive their intellectual property rights, which is in breach of the copyright directive and our legislation. Film crews have pointed out that, for example, their rights under the Protection of Employees (Fixed-Term Work) Act are being ignored and abused by film producer companies that are in receipt of large amounts of public money.

An Leas-Cheann Comhairle

Go raibh agat. You will have a chance to come back in again.

Deputy Catherine Martin

I am just stating a fact that employment law is the responsibility of my colleague, the Minister for Enterprise, Trade and Employment, as are the mechanisms for dealing with disputes.

Regarding the protection of workers, significant changes were made in 2019 to section 481 and how it operated. There is an increased emphasis on upskilling and life-long learning as well as much greater scrutiny. I hope that these changes will ensure that any alleged malpractice prior to 2019 is not repeated in today's audiovisual industry.

In addition to those changes, the "Safe to Create" programme that I launched in October provides for a dignity at work framework whereby all workers should have the right to expect a workplace that is free from bullying, harassment, humiliation, intimidation, victimisation and any other negative behaviour. Screen Producers Ireland, SPI, would strongly refute any claim of blacklisting in the Irish film industry. SPI can demonstrate its commitment to its relationship with the unions and is doing additional work in the areas of skills development and training. We are doing whatever we can to protect workers' rights.

Deputy Richard Boyd Barrett

I spoke with Equity this morning. Time and again, it has made it clear that its members are being forced to waive their rights to intellectual property and to sign contracts saying they are getting equitable remuneration when they are not. When I asked the president of Equity directly what would happen if someone did not sign the contract, the answer was that the performer would not get the job.

Regarding the declaration requirement that a producer company indicates to the Minister any legal or Labour Court issue that arises, has Metropolitan Films, for example, informed her that a finding was made against it in the Labour Court over a breach of a collective agreement with film crew? Have some of the other film producer companies indicated that there are cases going to the High Court arising from cases in the Labour Court where companies in receipt of section 481 relief did not even bother to turn up and where they were named as having been in breach of legislation? Is the Minister aware of this kind of stuff?

Deputy Catherine Martin

I only have a minute to respond, but I am happy to engage with the Deputy afterwards if he wishes to bring further issues to my attention.

In the application process for the certification under section 481, a producer company and a qualifying company, as defined by the Taxes Consolidation Act 1997, are required to sign an undertaking in respect of quality employment and must, as a condition of certification, provide details of any Workplace Relations Commission decisions in relation to a qualifying company, the producer company or other companies in the film group, and, where those decisions are finding against such a company, confirmation that the finding has been followed or an explanation where the finding has not been followed.

In relation to the copyright, I repeat that the buyout of contracts relating to intellectual property rights as well as copyright issues in general falls under the remit of my colleague, the Minister for Enterprise, Trade and Employment. I am aware some witnesses in that committee expressed a view that there should be an agreement between employers and workers in Ireland on whether and when residual payment could or should be paid, but any general agreement on the payment arranged for actors and whether it includes residuals is first and foremost a matter for the trade unions and their members and thereafter dependent on its members' preference as a matter for engagement with employer representatives.

I am happy to engage with the Deputy afterwards.

Údarás na Gaeltachta

Aengus Ó Snodaigh

Ceist:

3. D'fhiafraigh Deputy Aengus Ó Snodaigh den Aire Turasóireachta, Cultúir, Ealaíon, Gaeltachta, Spóirt agus Meán cén dáta faoina mbeidh bord nua ceaptha d’Údarás na Gaeltachta; conas a ligeadh do thréimhse an bhoird teacht chun críche gan tús a bheith curtha fiú le ceapadh an bhoird nua agus cé na bearta atá déanta chun a chinntiú nach dtarlóidh a leithéid arís i gcás boird Stáit; agus an dtabharfaidh sí soiléiriú maidir le dáta an toghcháin atá beartaithe a thabhairt ar ais; cad é an tionchar a bheidh ag an athstruchtúrú sin ar thréimhse oifige an bhoird; agus cén tábhacht a bhaineann le bord a bheith i bhfeidhm go dtí go dtarlaíonn an t-athstruchtúrú sin. [3877/23]

Deputy Aengus Ó Snodaigh

Baineann an cheist seo le bord nua atá le ceapadh d’Údarás na Gaeltachta agus cén fáth gur ligeadh do thréimhse an bhoird sin teacht chun críche gan aon socrú a bheith déanta roimh bhord nua a cheapadh le cathaoirleach nua.

Minister of State at the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media (Deputy Patrick O'Donovan)

Gabhaim buíochas leis an Teachta. Táim ag súil leis an bpost nua atá agam ag obair ar son muintire na Gaeltachta, na Gaelainne agus freisin mo chuid Ghaeilge a fheabhsú. Faoi réir na socruithe reatha atá i bhfeidhm maidir le ceapadh bhord an údaráis mar a leagtar amach iad faoi Acht na Gaeltachta 2012, ceapann an tAire seachtar comhalta don bhord, an cathaoirleach san áireamh, agus ceaptar an cúigear eile de thoradh ainmniúcháin a lorg ó na húdaráis áitiúla ábhartha a bhfuil ceantar Gaeltachta faoina gcúram acu. Is ar bhonn róta a cheaptar comhaltaí i leith na trí chontae Gaeltachta is lú: Corcaigh, Port Láirge, agus an Mhí.

Faoin Acht, ní rachaidh téarma oifige na gcomhaltaí thar tréimhse cúig bliana agus ní cheapfar comhaltaí chun oifige ar feadh níos mó ná dhá théarma i ndiaidh a chéile. Ceaptar an seachtar a luaigh mé de thoradh comórtas poiblí a eagraítear faoi scáth na Seirbhíse um Cheapacháin Poiblí, PAS. Sa chaoi seo tugtar an deis don phobal a bheith san áireamh le bheith ceaptha ar an mbord.

Ós rud é go ndeachaigh bord reatha Údarás na Gaeltachta, a ceapadh i mí Eanáir 2018 ar feadh téarma cúig bliana, in éag i lár mhí Eanáir, thosaigh an Roinn i mbun na socruithe chun bord nua a cheapadh i mí Dheireadh Fómhair seo caite, tráth a iarradh ar an húdaráis áitiúla ábhartha a gcuid ainmniúcháin don bhord nua a chur chun na Roinne. Fuarthas na hainmniúcháin sin faoi thús mhí na Nollag. Mar gheall ar mhoill nach raibh aon smacht ag mo Roinn air áfach, ní bheidh ar a chumas PAS tús a chur leis an gcomórtas poiblí go dtí tús mhí Feabhra, rud a chiallaíonn nach mbeidh bord iomlán in ann a bheith ceaptha go dtí deireadh mhí Márta nó mar sin. Le dul i ngleic leis an moill seo, tá mo Roinn ag breathnú go gníomhach faoi láthair ar na féidearthachtaí bord a cheapadh ar bhonn eatramhach go dtí go mbeidh bailchríoch curtha ar na socruithe i gcomhar le PAS agus bord in ann a bheith ceaptha faoi réir na gnáthshocruithe a bhaineann leis sin.

Deputy Aengus Ó Snodaigh

Leis an deis seo, déanaim comhghairdeas leis an Aire Stáit as an Aireacht a bhaint amach agus tá súil agam go mbeidh téarma maith aige agus go mbeidh sé go maith don Ghaeltacht agus don Ghaeilge. Ceann de na fadhbanna bunúsacha anseo ná an teip ar PAS. Cén fáth gur theip ar PAS tús a chur leis an gcóras nó leis an mbealach chun na ceapacháin seo a dhéanamh nuair ba chóir? Beidh an bord ag imeacht i mí Eanáir agus ní bheidh bord nua ag tosú díreach i ndiaidh sin le cathaoirleach nua roghnaithe ag an Aire Stáit. An fhadhb atá againn anois ná go gcaithfidh PAS a chuid oibre a dhéanamh agus tógann sé sin roinnt míonna. Cén fáth go bhfuil an moill sin orainne agus nach mbeidh bord nó cathaoirleach ag an údarás ar feadh tréimhse roinnt míonna?

Deputy Patrick O'Donovan

B’fhéidir go mbeidh tréimhse gairid ann nach mbeidh bord ceaptha d’Údarás na Gaeltachta, agus tá sé sin an-tábhachtach, ach tá céimeanna idir lámha ag PAS chun comórtas poiblí i leith an bhoird nua a fhógairt i mí Feabhra. Tá an socrú sealadach seo pléite ag oifigigh na Roinne le feidhmeannaigh ón údarás agus táthar sásta nach gcruthaíonn sé deacracht nach féidir a shárú do cheachtar den dá eagraíocht. Um thráthnóna beidh mé ag buaileadh le mo chuid feidhmeannaigh agus le foireann Údarás na Gaeltachta i nGaillimh. Beimid ag caint faoi na cúrsaí seo agus beidh mé in ann teacht ar ais tar éis an chruinnithe sin.

Deputy Aengus Ó Snodaigh

Is droch-chás é seo mar tá an t-údarás chomh tábhachtach sin. Is féidir leis an údarás leanúint leis an obair atá ar siúl aige mar tá príomhfheidhmeannach agus foireann maith aige agus is léir sin ón tuarascáil a rinne sé an tseachtain seo caite, áit a chur sé arís leis an líon poist. Tá sé go dona nuair nach bhfuil cathaoirleach ag an údarás chun déanamh cinnte de go bhfuil an straitéis á leanúint. B’fhéidir go mbeidh tréimhse de roinnt míonna ann nach mbeidh bord nó cathaoirleach ann chun déanamh cinnte de go bhfuil an straitéis á leanúint. B'fhéidir go mbeidh an túdarás ag féachaint ar na cinntí ar ghá a dhéanamh mar institiúid nó eagras forbartha, ní hamháin don tionsclaíocht sa Ghaeltacht ach ó thaobh pleanála teanga de chomh maith. Is drochlá é agus is trua sin ach níl a fhios agam fós cén fáth go raibh an fhadhb ann agus cén mhoill a raibh ann maidir le PAS. Níl a fhios agam cén fáth nach raibh PAS tar éis an chórais a chur i gceart chun an ceapachán sin a dhéanamh.

Deputy Patrick O'Donovan

Críochnóidh mé freagra na gceiste ón Roinn mar beidh an freagra ann. Faoin gcur chuige nua, tá beartaithe go ndéanfar na príomhleasuithe seo a leanas. Déanfar méadú ar bhallraíocht an bhoird go 16: deichniúr comhaltaí le toghadh de bhun toghchán ó réigiúin Ghaeltachta reachtúla atá lonnaithe sna contaetha Dún na nGall, Maigh Eo, Gaillimh, Ciarraí, Corcaigh, Port Láirge agus an Mhí; agus seisear comhaltaí eile ceaptha de réir threoirlínte an Rialtais, is é sin comórtas poiblí. Bheadh sé i gceist go dtoghfar duine amháin chuig an mbord thar ceann na gcontaetha Gaeltachta Maigh Eo, Ciarraí, Corcaigh, Port Láirge agus an Mhí; beirt ó Ghaeltacht Dhún na nGall agus triúr ó Ghaeltacht na Gaillimhe. Beidh ar gach duine atá ag iarraidh a bheith mar iarrthóir i dtoghchán nó roghnúchán a léiriú go bhfuil íoschaighdeán B2 bainte amach acu sa Ghaeilge faoin gcur chuige a bhaineann le teastas Eorpach na Gaeilge, TEG. Ina theannta sin, beidh gá d’iarrthóirí toghcháin buanchónaí a bheith orthu sa Ghaeltacht a bhfuil siad ag iarraidh a bheith tofa thar a cheann.

Ní bheidh aon duine ar chomhalta d'údarás áitiúil iad, comhalta de cheachtar Teach de chuid an Oireachtais, nó de Pharlaimint na hEorpa incháilithe chun suí ar bhord Udarás na Gaeltachta. Beidh comhaltaí teoranta do dhá théarma ar a mhéad a chur isteach ar an mbord. Ba chóir a thabhairt faoi deara gur imeacht é seo ón bhforáil atá ann faoi láthair.

Beidh mé in ann buaileadh leis an Teachta agus leis na hurlabhraí Gaeltachta agus Gaelainne sa Teach chun seo a phlé amach.

An Leas-Cheann Comhairle

Déanaim comhghairdeas leis an Aire Stáit agus guím gach rath air ina ról nua.

Tourism Industry

Verona Murphy

Ceist:

4. Deputy Verona Murphy asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media the proactive measures her Department is taking to address and resolve the current recruitment and retention difficulties of the tourism industry; and if she will make a statement on the matter. [3848/23]

Deputy Verona Murphy

In May of 2022, Fáilte Ireland launched an awareness campaign on the issue of recruitment and retention in the tourism sector. This campaign was launched in May, as the busy season was just about to get under way. With those recruitment and retention issues in mind, what proactive measures is the Department of the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media taking to address and resolve the current recruitment and retention difficulties?

Deputy Catherine Martin

The latest research by Fáilte Ireland shows that while recruitment is still a significant challenge for tourism businesses, the situation is improving and employers are making positive strides. The number of vacancies across the industry has fallen, from 40,000 at the start of 2022 to 22,000 today. Overall, positions have become less difficult to fill while staff retention has become less difficult too. For employees, hourly rates of pay have improved, compensation for working unsocial hours has become more common and job security among workers has grown.

My Department participates in the tourism and hospitality careers oversight group which brings together industry representatives, State agencies, Departments and the education sector. My Department and Fáilte Ireland are also working with industry and across government to ensure a co-ordinated approach to addressing labour and skills shortages.

For example, in 2022, my Department and Fáilte Ireland worked closely with the Department of Enterprise, Trade and Employment to ensure processing times for work permits were significantly reduced. My Department and Fáilte Ireland have also worked with that Department to increase work permit application success rates by providing information sessions to the industry. In 2023 and the years ahead, my Department and Fáilte Ireland will continue to work with industry and recruitment experts to share best practice guidance on retention and building capability.

With regard to working conditions in the sector, Fáilte Ireland's research indicates that 70% of people within the sector see tourism as a long-term career option. Around 70% of businesses surveyed indicated they are increasing their pay and offering flexible work patterns, more stable work schedules and other benefits. Fáilte Ireland has also launched a new employer excellence programme to help participating businesses to improve their employer practices and enhance their reputation as excellent employers. This will help employers to drive great employee engagement, build the appeal of their workplace and unlock greater levels of performance across their businesses. Further initiatives undertaken include a transition year work placement programme to give transition year students a high-quality work placement and a major recruitment awareness campaign called "works for me" to encourage people of all ages to consider a career in the industry. When we look at the wider economy and the particular set of challenges facing the industry, it is clear that a collective and concerted multi-stakeholder approach to tackling these challenges is required, and that is the approach my Department and I will continue to pursue.

Deputy Verona Murphy

I thank the Minister. I appreciate there is a lot in her response and that she has committed €15 million. However, in June last year, the Irish Examiner ran the headline "No 'quick fix' for hospitality staff shortages" in which Dr. Deirdre Curran, a lecturer at NUI Galway, who had conducted research on the industry, stated that the pandemic had worsened the problems but there were also significant instances where staff had been emotionally and physically abused. She stressed the importance of listening to workers in the industry. I know the Minister is hoping and is in a position to do something about it by retaining the 9% VAT rate. If it reverts to 13.5%, it will have a significant impact and put pressure on the hostelries and the hospitality sector, and the most adverse effect and impact will probably be on the employees.

Deputy Catherine Martin

The Minister, Deputy Coveney, and I co-chair the hospitality and tourism forum. We are convening a meeting next week with all the stakeholders. I suspect the 9% VAT rate will be one of the issues that arises in that meeting. I have made it clear that I am in favour of the extension of the lower rate of VAT for the tourism and hospitality sector. The decision ultimately lies with the Minister for Finance, but I have made clear my position on it. I am acutely conscious of the challenges the sector is facing, including cost inflation and economic uncertainty in key tourism markets. I am also aware our necessary humanitarian response to the war in Ukraine has impacted on the availability of tourism accommodation. I will continue to work with the Minister for Finance and Cabinet colleagues in the coming weeks.

Deputy Verona Murphy

I come from County Wexford and we host some of the country's most valuable tourism attractions, such as one of the oldest lighthouses in the world at Hook Head. That must continue to thrive. The Minister mentioned our film industry. We can expect an influx of tourists given, we hope, our success rate at the Oscars and not just the fact that Irish films have been nominated. Wexford is especially heavily dependant on tourism. We employ slightly fewer than 10,000 people in the tourism and hospitality sector. We have some of the finest hotels and we are about to develop Duncannon Fort, close to where I am from, and make significant investment, which I hope will be in the range of €2 million to €3 million. We must bear in mind that all the attractions are in rural Ireland. It is significant investment. We need to look at how we will retain jobs and ensure it is viable for the employees to work in this sector. We must not forget that we are developing Rosslare Europort. It is in Wexford. It is the hub and our most direct point to Europe and we expect an influx of hundreds of thousands of visitors in the coming year.

Deputy Catherine Martin

The Deputy referred to Duncannon Fort. In December 2022, the Department of Rural and Community Development announced significant funding for Duncannon Fort under the town and village renewal scheme. That is in recognition of the amazing attraction it is. I am acutely aware that the tourism industry supports 250,000 jobs and the vast majority of those are in the regions, outside the capital city. I grew up outside the capital. It is a vital industry in my remit and I am acutely aware of the need to help our towns and village to thrive. I am co-chairing the hospitality and tourism forum with the Minister, Deputy Coveney, who, as someone from outside the capital, is aware of the immense value of tourism and the concerns of the wider tourism ecosystem. That is absolutely on our radar and we will do our best to support it.

Tourism Funding

Michael Collins

Ceist:

5. Deputy Michael Collins asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media the plans in place to give relief to the hotel sector at this time with the ongoing energy costs; and if she will make a statement on the matter. [3880/23]

Deputy Michael Collins

What plans is the Minister's Department putting in place to give relief to the hotel sector at this time with the ongoing energy crisis?

Deputy Catherine Martin

Internationally, tourism continues to recover steadily, yet several challenges remain, from geopolitical to economic. The combination of increasing interest rates in all major economies, rising energy and food prices and the growing prospects of a global recession are major threats to the recovery of international tourism for 2023. Hotel capacity, energy costs and labour shortages will continue to challenge the tourism industry here in Ireland this year. Though the strong early recovery of inbound tourism to Ireland last year is very welcome, significant headwinds face the sector in 2023. To assist businesses, including hotels, the Government introduced the temporary business energy support scheme, TBESS, in budget 2023. The TBESS is designed to support businesses, including hotels, with their energy costs over the winter months and will run until 28 February 2023. The TBESS is administered by the Revenue Commissioners who have designed a special online platform for businesses to register for, and claim under, the scheme.

From a tourism perspective, I am continuing to direct significant resources to supporting the sustainable recovery of the sector. I secured €15 million in additional funding for overseas marketing of Ireland. This budget also contains an additional €15 million for a range of industry initiatives, including €3 million in continuation of the investment in skills development and retention. This provision will facilitate the continuation of work by Fáilte Ireland to address the employment challenges faced by tourism businesses in attracting talent, assisting skills development and retaining staff. My Department and Fáilte Ireland will continue to work with the industry and across Departments to ensure a co-ordinated approach to addressing the labour and skills shortages in the sector across all roles. A €2 million increase in funding for domestic marketing was also secured to promote Ireland's tourism offering to Irish holidaymakers. I have secured additional funding of €3 million to allow Fáilte Ireland to continue its work in the area of sustainability. While the hotel sector faces many challenges, I am confident the supports the Government has put in place will ensure Ireland's hotels are well positioned to maintain current levels of recovery and to grow sustainably in the coming years.

Deputy Michael Collins

I thank the Minister for her reply. Many of the hotels in west Cork are closed at present due to energy costs and overheads. Those who are not housing refugees, and many hotels in west Cork do not, cannot afford to open their doors. I am pleading on their behalf. I see that they are closed Mondays, Tuesdays, Wednesdays and Thursdays. It is an astonishing situation we find ourselves in. It is spread across cafés and pubs. They are not opening their doors. Something is wrong. The Minister stated she is putting help for energy costs in place until 28 February 2023. The costs will still be there. A gentleman with a business contacted me recently who said his electricity bill for two months was €13,000. His profits from last year will pay that bill but he was shuddering in fear about the next bill coming in the door. What are businesses doing now? They are shutting their doors. They will not open the door. It is shocking for west Cork and other places in dire trouble and in need. I plead with the Minister to continue the TBESS and to put further measures in place to enable them at least to open their doors during the week.

Deputy Catherine Martin

The Deputy will be aware that I am familiar with the beauty of west Cork. I met him there when my family and I were on holidays. I am conscious of the impact on the wider tourism ecosystem, including the businesses he referred to. As regards the TBESS finishing on 28 February, the Government is discussing what will happen next, the supports that are needed and looking at detailed analysis.

We in Ireland are absolutely resolute in our solidarity with and support for Ukraine and we are honouring our commitment to help people who have been displaced by this horrendous war. We have never seen so many people arrive in such a short timeframe as we welcomed the population size of Galway city in under a year. It is time to remember that Irish people have, over generations, sought shelter and opportunities abroad. Ireland has a long history of supporting other nations in times of trouble and this is the right thing to do.

My officials are engaging with several Departments, with input from colleagues from Fáilte Ireland, on how best to mitigate the potential impacts on the wider tourism ecosystem of the long-term use of tourism accommodation. It was never meant to be long term. It was meant to be short to medium term. This is not just from a hotel's point of view but also for the families in the hotels.

Deputy Michael Collins

I remember meeting with the Minister, and she is most welcome at any time, in west Cork which is the tourism capital of Ireland as far as I am concerned. We have fantastic hotels. I have met with the sector. It includes such hotels as the Celtic Ross Hotel, Fernhill House Hotel, the Emmet Hotel, the Parkway Hotel, the Schull Harbour Hotel and the Blue Horizon Hotel in Kinsale. The bottom line, according to some people running these hotels, is that their family members are working for free. They are not taking any money now because they are losing and haemorrhaging money very badly. Their biggest worry is keeping the door open and the only way they can do that is if family members work free of charge. This is an unbelievable situation in which they find themselves at this time.

I refer to the 9% and 13% VAT rates that would be a cushion, about which I wanted to ask a question today but it was not accepted. It will be a huge issue if the 9% VAT rate is not retained. We will see closures left, right and centre in west Cork and other areas. Unfortunately, we find ourselves in such a situation as it is happening anyway. I see it myself. When I go back today, I will see restaurants and pubs closed in each of the beautiful towns of west Cork. Something is wrong somewhere. They cannot keep begging for the Government to do something about it. I certainly believe further help is needed in west Cork.

Deputy Catherine Martin

I assure the Deputy that the Government did not put such extensive supports in place during Covid for those businesses to close now. My Department and I have extensive and ongoing engagement with the sector. As I said earlier, the Minister, Deputy Coveney, and I will convene and co-chair the tourism and hospitality forum next week in order to engage and hear concerns.

On the 9% VAT rate, as I made clear to Deputy Verona Murphy, I have always said I am in favour of an extension to the lower rate of VAT for the tourism and hospitality sector, that I am acutely conscious of the challenges facing the entire sector and I will be engaging with the Minister for Finance and Cabinet colleagues in the coming weeks.