I thank the committee for the invitation to attend this meeting. The total amount allocated for spending by the Department of Tourism, Culture and Sport in 2011 is €382 million. This represents a 12% reduction on the 2010 Revised Estimate of €435 million. In addition, just over €10 million has been allocated to the National Gallery Vote, a reduction of 3% on its 2010 allocation. A further €8 million is available for spending in 2011 through carry-over of unspent capital in 2010, which means that a total of €400 million is available to support the tourism, culture and sport sectors this year.
The breakdown of the budget is that on the current expenditure side, the total provision, including the National Gallery Vote, is €296 million, a decrease of 7% compared to 2010. The capital expenditure provision is €96 million, a decrease of 24%, but when the carry-over of €8 million from 2010 is included, the capital budget is €104 million, which is a decrease of 18%. As outlined in the national recovery plan and the budget, the Department is contributing non-pay current expenditure savings of €17 million this year, including €4 million in administrative savings. These savings will come through reduced functions across the tourism, culture and sport sectors. In addition, payroll savings in the order of €5 million will be achieved.
For the administrative budget, an amount of just over €11 million is provided this year for the Department's administration costs, a decrease of 2% on the amount provided in 2010. Within this, the provision for salary costs for staff of the Department and the National Archives is €9.3 million with €1.7 million for non-pay administrative costs. The Department has made significant savings and efficiencies in administration costs in recent years. In 2008 the provision for non-pay administration costs was €3 million. These efficiencies have been achieved through the Department's efforts to keep costs to a minimum and by achieving better value in the procurement of contracts and services, including telephony and IT services. This year, further savings will be achieved in this area including pay related savings arising from a reduction in staff numbers as part implementation of an employment control framework. All agencies under the aegis of the Department will contribute administrative and pay savings in 2011.
Turning to the tourism budget, the overall provision for tourism services in 2011 is almost €148 million, a decrease of 3% on the 2010 provision. With its current funding allocation of €63.5 million, Fáilte Ireland will continue to focus its activities in 2011 to obtain maximum impact, including a continued concentration on developing the home holidays market, rolling out the enterprise support programmes to support the industry and vital jobs, developing key tourism destinations and continuing its support for the business tourism and other niche tourism sectors. Despite a decrease of 7% in the allocation, it is expected Fáilte Ireland will be able to achieve a similar impact in these areas as was achieved in 2010.
A further €25 million is provided for capital expenditure under the tourism product development scheme. This is an increase of 19% on the amount available in 2010 and will be used to develop and upgrade tourism attractions. More than €41 million is allocated to the tourism marketing fund in 2011, a decrease of 6% on the 2010 allocation. It is important to note that the level and value of investment in the core overseas marketing of Ireland by Tourism Ireland is being maintained, as recommended in the tourism renewal group framework for action and is consistent with the National Recovery Plan 2011-2014.
One of the significant changes announced in the budget that impacts on the tourism industry is the new rate of air travel tax. The Department welcomes the changes announced in the air travel tax, whereby a single revised rate of €3 will apply to all flights from 1 March 2011, on a temporary basis until the end of 2011. This important change in the rate of Ireland's air travel tax comes at a time when Germany and Austria are introducing a similar but higher rate of tax and UK rates are rising. Ireland's access position will be further assisted by the airport initiative package announced by the Dublin Airport Authority. These twin developments recognise the importance of tourism to Ireland's overall economic renewal and will help stabilise and grow overseas visitor numbers by leveraging the tax changes and the airport incentive package. They are in line with the tourism renewal implementation group's priority to pursue measures to restore and enhance access to overseas markets.
Business and other niche tourists will be an important part of the market in coming years. Central to this will be facilities such as the newly opened Convention Centre Dublin, which expects 82,000 international delegates to visit the centre over the next three years, with an estimated economic impact of €123 million. In addition, the opening in 2010 of the Aviva Stadium will make Dublin an attractive location for major international tournaments that have a significant tourism and commercial spin-off. This year the Aviva Stadium will host the final of the Europa Cup in May.
It is estimated that approximately 5.5 million visitors came to Ireland in 2010 with hugely positive benefits for the Irish economy. Tourism is a critical indigenous sector that sustains approximately 190,000 jobs throughout the country at all skill levels and generates €4.5 billion in earnings and well more than €1billion euro in taxes for the Exchequer. The Government recognises the importance of the sector and that is why strategies to support it feature prominently in the National Recovery Plan 2011-2014 and the strategy and action plan for trade, tourism and investment to 2015. It appears that the sharp fall in numbers in the first half of the year, which was badly affected by the volcanic ash disruption, slowed as the year went on. Tourism Ireland estimates that total overseas visitor numbers fell by 14% to 15%, with revenues falling slightly less. It is estimated that within the overall total numbers from Great Britain and continental Europe fell by around 17%, while the numbers from the higher spending North American market fell by 8% to 9% and numbers from other long haul markets are expected to show little change. The Department is confident that overseas tourist revenues and numbers will return to growth this year.
The supports and strategies are in place to see real tourism growth in 2011 and to ensure this momentum continues in the years to come. With the continued support of the industry and Government, overseas revenue and visitor numbers will return to a sustainable growth path. Clearly, there are a range of possible outcomes. Reflecting the current uncertainties, Tourism Ireland is targeting nominal growth in overseas revenues of 4.8% to 7.3%, based on growth in visitor numbers of 1.7% to 4.0%. The Department considers that achieving growth of at least 5% in overseas revenues, in real terms, and 4% in overseas trip numbers is a realistic ambition for Irish tourism.
Under the sports area of the Department's remit, there is provision for expenditure of €91.5 million in capital and current funding. This includes a carry-over of €5 million in capital for 2010. While the 2011 allocation for sport shows a decrease of 26% on the 2010 allocation, the reduction in real terms is much lower. There were some items of expenditure in 2010 which will not recur this year, including payments relating to the development of the Aviva Stadium at Lansdowne Road and a once-off allocation to the National Sports Campus Development Authority. In addition, the level of commitments under the sports capital programme and the local authority swimming pools programme are decreasing and a smaller allocation is required to meet commitments made under earlier rounds of the programmes up to and including 2008.
The amount allocated for the sports capital programme is €28 million with an additional €5 million carried over from 2010. The sports capital programme is the primary means of granting Government support for the provision of sports facilities at national, regional and local levels. Under the programme, the Department allocates funding to voluntary, sporting and community organisations for the provision of sports and recreational facilities. More than 7,400 projects have now benefited from sports capital funding since 1998, bringing the total allocation in that period to almost €740 million. Over the past 12 years, the programme has transformed the sporting landscape of Ireland with improvements in the quality and quantity of sporting facilities in every part of the country. The allocation of €28 million for the sports capital programme for 2011 will be sufficient to meet commitments arising from allocations made in earlier years. However, given the current budgetary situation and the high level of outstanding commitments, it was considered prudent to pause prior to announcing the next round of the programme and no date has been set for it.
The allocation for the local authority swimming pools programme this year is €6.65 million, which will allow us to meet existing commitments. The programme provides grant aid to a maximum of €3.8 million to local authorities for the construction of new and the refurbishment of existing local authority swimming pools. The current round of the programme was launched in 1999 and closed to applicants in July 2000. Since 2000, 58 projects have been or are being dealt with under the programme. Of the 48 projects which have been allocated grant aid, 46 have been completed and 12 are at various stages of the process. The current priority is to progress the remaining 12 projects included in the programme. Due to the current economic constraints no decision has been taken to launch a new round of funding in 2011.
The provision for the Irish Sports Council is almost €47 million. While this represents a decrease of 5% on the 2010 figure, it will still be sufficient to support the work of the council in maintaining existing programmes and building on recent progress in all areas, including local sports partnerships, Buntús, women in sport, older people in sport, youth field sports and the high performance programme. Since its establishment in 1999 to the end of 2010, the Irish Sports Council has received more than €400 million from the Department. I am pleased to say this substantial investment has allowed the council to develop strong structures and programmes which can be built on in the future. The council provides funding on an annual basis to the national governing bodies of sport, local sports partnerships, the international carding scheme and support for other sporting institutions including the Irish Institute of Sport and Coaching Ireland. It also supports the high performance strategy, the anti-doping programme, Go for Life, the Irish trade strategy and the code of ethics and research.
The National Sports Campus provision this year is just under €5 million, down from €7.8 million in 2010. An allocation of €3.5 million is provided for capital expenditure, which will primarily be used for the refurbishment of the former Marine Institute building as the new headquarters for the national governing bodies of sport.
The total provision for arts, culture and film is just under €150 million. This includes an allocation of more than €10 million for the National Gallery and the carry-over of €3 million, which will be used towards the funding of Culture Ireland's major year long season of contemporary Irish culture, entitled Imagine Ireland, which is taking place across the United States this year and which has recently been launched by the Minister. The priority for the national cultural institutions in 2011 is to maintain the exhibition programmes and front-of-house services to the public and tourists to ensure that what they offer continues to draw large numbers of visitors. Day-to-day funding for the national cultural institutions is maintained as close as possible to 2010 levels and capital funding has been allocated according to priority of need to ensure the safety and preservation of the national collections and the continued investment in high quality visitor experiences as part of an integrated cultural tourism drive.
The provision of €6 million for the Irish Museum of Modern Art, IMMA, will enable its diverse and challenging programme to continue in 2011. Provision is also included for touring and displaying the national collection at locations around the country and for the management of the collection. IMMA will celebrate its 20th anniversary in 2011 and it is hosting a series of special events and exhibitions to mark the occasion. Its allocation for 2011 includes a provision towards the anniversary programme.
There is a provision of €4.3 million for regional cultural venues and programmes in 2011. The priority for this year is to provide funding for venues, meet contractual commitments and fund projects which support cultural tourism. Investment in regional and smaller museums like Marsh's Library, the Hunt Museum, Science Gallery, the Print Museum, Foynes Flying Boat Museum, the James Joyce Centre and the Irish Architectural Archive will continue.
Measures costing approximately €100,000 to improve records' storage at the National Archives' two premises will also be funded under this heading. The Irish Manuscripts Commission will continue with its cost effective publication of primary sources. In addition, it will work in conjunction with the national cultural institutions to expand Ireland's cultural presence on the European web portal. Refining work on the 1901 and 1911 Census will be continued and the huge success of the site will be used to build tourism interest abroad. This year the National Archives will add a self-generated oral history element to the 1901-11 census website, with a working title of "The Living Census".
The internationally significant designation of Dublin as UNESCO city of literature will also be supported under this heading and the Department is working closely with Dublin City Council and the other key partners in that regard. The Department will also provide funding for the Dublin Contemporary 2011, an initiative which aims to make Dublin an internationally recognised and acclaimed contemporary art exhibition and event showcasing venue. This event will showcase leading and emerging Irish and international contemporary art across a number of landmark sites in Dublin city centre in September and October 2011. Funding is also being provided for Culture Night 2011 and Music Day, both of which were huge successes in 2010 from a tourism and public participation standpoint.
There is an allocation of €8.3 million for cultural infrastructure and development in 2011. This will allow for completion of the remaining projects approved for funding under the ACCESS and other capital initiatives. Under these programmes, projects as diverse the Wexford Festival Opera, Carlow Contemporary Arts, the Druid Theatre, integrated art centres, theatres, museums and galleries, as well as arts studios and other creative performance spaces, have been provided with funding. These programmes have been widely acknowledged as a significant intervention in the provision of quality cultural spaces throughout the country and will inevitably lead to increased participation by individuals and communities in the artistic and cultural life of the nation.
The 2011 allocation for Culture Ireland is just under €4 million, a decrease of just 2% on the 2010 figure. In 2011, Culture Ireland will continue to ensure the ongoing promotion of Irish artists worldwide with the aim of generating goodwill and influence for Ireland and highlighting the strength of Irish culture and creativity. This reflects the emphasis in the year since the Farmleigh global forum took place on the central role that Ireland's artistic and cultural strengths play in building our reputation globally, and on the benefits that flow for Irish trade and investment. By promoting strongly through these exceptionally difficult times, Culture Ireland aims to grow Ireland's global cultural market share and to further strengthen our cultural profile.
In 2010, Culture Ireland presented a programme of Irish-Chinese artistic collaborations in Shanghai as part of Ireland's award-winning participation in the World Expo there in partnership with the Department of the Taoiseach and the Office of Public Works. Expanding the strategic promotion of Irish arts at major international markets, Culture Ireland led national delegations for the first time to Womex, the World Music Expo in Copenhagen, and Tanzmesse, the European contemporary dance market in Düsseldorf. This momentum continues into 2011 as Culture Ireland launches Imagine Ireland, a year-long season showcase of contemporary Irish arts across the United States. This initiative celebrates Irish imagination, innovation and creativity in New York and other key cities and regions in partnership with the embassy, consulates and other State agencies. An additional €3 million is available for Culture Ireland in 2011 to meet costs associated with this initiative. As I noted earlier, this programme was launched last week by the Minister.
More than €65 million is provided for the Arts Council in 2011, a 5% decrease on the 2010 allocation. This level of funding is almost double the amount provided in 1998 and with this allocation, the council will be able to maintain broadly its major programmes and activities at 2010 levels. With the main budgetary emphasis on programming this will sustain the council's main arts organisations, keep regional venue programmes and support festivals and touring. The council supports more than 50 venues, approximately 200 festivals and 400 arts organisations and by supporting these areas the intention is to minimise job losses in communities across the country, directly in funded artists and organisations, and indirectly in the tourism sector and wider economy. It will also look to prevent such bodies from losing viability.
The National Museum's 2011 provision is €14 million. The treasury in the National Museum on Kildare Street will be reopened following renovation in 2011 and this will display the Fadden More Psalter, the conservation of which is nearing completion. The museum has now taken possession of its new storage facility in Swords, and the fitting out of this facility will be completed in 2011. This will address the long-standing problem of storage and collection management. The conservation of the Asgard I will also be completed in 2011 and this will be put on public display in Collins Barracks in time for the summer season.
More than €18 million is provided for the Irish Film Board this year, a decrease of 4% on the 2010 provision. The Irish Film Board continues with its key role of developing and supporting film production in Ireland and 80% of its budget is for investment purposes. This allocation for 2011 will facilitate it too in marketing Ireland as a film location and, in particular, in raising the profile of the Irish audiovisual industry abroad. This role has been carried out very successfully over the years and the Irish Film Board now has a key role at the heart of the new creative knowledge economy.
The capital funding provided by the Government to the Irish Film Board has ensured support to meet the demands of the industry in the areas of project and talent development, training and indigenous film and television production. The funding enables the board to fulfil its aim of sustained growth of the industry while increasing the number and quality of films produced in Ireland each year.
In tandem with supports from the film board, the Department's primary operational role in supporting the film sector relates to the administration of elements of the section 481 tax relief scheme. This scheme is kept under regular review in conjunction with the film board and any enhancements necessary to retain or regain competitiveness are addressed and brought to the attention of the Minister for Finance as appropriate. The scheme was amended and enhanced most recently in 2008 and these amendments extended the scheme until the end of 2012. In 2010, a total of 57 projects was approved for funding through section 481 with an Irish spend of €164.65 million. These 57 projects supported employment for crew, cast and extras of more than 10,000 individuals and had the effect of maintaining and creating jobs in a very difficult climate while at the same time maintaining a product that will help to sell Ireland abroad.
There has also been a cut of 3% to the Vote of the National Gallery but it will continue to focus on delivering the best service possible. This year will see work on the renovation of the historic wings of the gallery, beginning with the Dargan wing. This is a major development for the gallery. Although there is an obvious effect in terms of room closures, the gallery will make every effort to minimise the impact for visitors. The new and upgraded website will be a major help in this regard.
Final decisions relating to the allocation of budgets within agencies operating under the aegis of the Department are a matter for those agencies and their boards within overall policy for the sectors as set by the Government. As final decisions have not yet been taken by all the agencies on their plans for 2011, it is not possible at this stage to provide the committee with specific details of the full impact of the measures announced in the budget on the Department's activities. However, my colleagues and I will be happy to deal with any questions from the members of the committee.
It would be remiss of me not to express condolences on behalf of the Department to the Harte and McAreavey families on the tragic death of Michaela Harte. These are great sporting families which have enhanced our lives and sport, and our thoughts are with them at this sad time. The death has also taken place of a man called Joss Lynam, who for many years served the Department of Education and Science and national sports councils in the promotion of mountaineering. He was also involved in the national trails network of walking routes, making a significant contribution to tourism products. I express condolences to his family as well.
