I welcome the Minister, his officials and members. Our task today is to consider the Revised Estimates and output statements for 2009 in respect of Vote 33, pertaining to the National Gallery of Ireland, and Vote 35, pertaining to the Department of Arts, Sport and Tourism. I invite the Minister to make his opening statement, after which I will allow opening statements and questions from the Opposition spokespersons. Under the new budgetary arrangement, the select committee must give due consideration to both output statements. On doing so, I will take us through programme 4, which concerns tourism services, sports and recreational services, arts and culture services, and the National Gallery. I will invite comments on both Estimates and the target outputs. All the details have been circulated to members, in both electronic and paper formats. I have asked the clerk to circulate the programme and output statements from which I am working. Is that agreed? Agreed.
2009 Annual Output Statement — Department of Arts, Sport and Tourism.
I am accompanied by Mr. Con Haugh, Secretary General, Mr. Donagh Morgan, assistant secretary, Mr. Paul Bates, assistant secretary, Ms Mary Nash, principal officer, and Mr. Kevin Lonergan, principal officer.
I am very pleased to present the 2009 Estimate for my ministerial Vote group and to have this opportunity to meet the committee to discuss the Estimates for my Department and the National Gallery and related issues. Before turning to the detail of the Estimates, I will refer to the 2009 output statement for my ministerial Vote group. While not formally part of the Estimates, output statements are an element of the budget and Estimates reform measures announced by the Minister for Finance in budget 2006. The output statement is designed to match the key outputs of the main programmes to the financial and staffing resources allocated to them for each year. It shows the output targets that were set out for 2008 at the beginning of that year and how we performed against those targets. It also contains output targets for 2009.
With regard to the Estimates, I have responsibility for the Votes of the Department of Arts, Sport and Tourism and the National Gallery of Ireland. The total allocation to the Vote group in 2009 is over €540 million. My remit covers a very wide area, including arts, culture, film, sport and tourism. I will confine my comments to a small number of developments for which provision has been made in the 2009 Estimates.
I will now deal with the tourism side of my Department, for which there is provision in 2009 for expenditure of over €153 million on tourism services across a diverse range of activities. As the committee is aware, tourism and hospitality is one of our most important economic sectors, representing 4% of GNP, providing full-time employment for around 250,000 people and generating annual tax receipts of €1.5 billion.
After six years of successive growth culminating in a record high in 2007, overseas visitor numbers declined slightly by 2.2% in 2008 to 7.8 million. In revenue terms, overseas visitors generated an estimated €4.8 billion, including carrier receipts and cross-Border expenditure, which was a reduction of just under 2.5% on the record expenditure generated in 2007. While any reduction in tourism numbers or revenue is disappointing, it must be seen in the context of exceptionally challenging conditions affecting nearly all of our main markets, including volatile financial markets, economic contraction and negative consumer sentiment, as well as sharply fluctuating fuel costs and exchange rates.
Global economic growth is expected to remain weak in 2009. In particular, it is expected that trading conditions in our two major source markets, Great Britain and the United States, will remain particularly challenging. Given the significant deterioration in global conditions, Tourism Ireland's latest projections are for between 6.8 and 7.2 million overseas visitors this year. The most recent published figures by the CSO today show a reduction of 6% in overseas visitor numbers for the first four months of 2009 compared with 2008. It should be noted that this decline is not as steep as that experienced by some of our competitors, including the UK which has experienced a decline of 13% in the first quarter despite the comparative advantage of sterling.
The core Fáilte Ireland allocation of just under €79 million for 2009 will enable a range of programmes and initiatives to be advanced in the areas of product development, domestic and niche marketing, business supports, training and support for festivals and major sports tourism events. There will be a particular effort in the business tourism area in anticipation of the opening of the convention centre in Dublin next year.
Subhead B2 provides €19.4 million for the pay and operating costs of Tourism Ireland, the all-island tourism marketing company set up under the Good Friday Agreement. The Exchequer provision for the tourism marketing fund under subhead B4 is €47.25 million for 2009, a decrease of 6% on 2008. As the amount required for completing the tourism brand Ireland work is significantly less in 2009 than in 2008, there is a minimal change in the amount being provided for core overseas marketing. Furthermore, given the global economic downturn, it should be possible to get much greater value for every euro spent this year, because there is a real reduction in available spend across the business world in terms of accessing media.
The tourism agencies are working together to support the marketing of Irish tourism, to improve our product offerings and to help improve business capability. These are being supported by the positive response of the tourism sector at enterprise level to the challenges we face. While I know our businesses and tourism agencies are responding constructively to current challenges, it is just as important that the strategic framework for tourism development responds to the changing environment. Accordingly, last year I established the tourism renewal group, under the chairmanship of Maurice Pratt, which has been tasked with reviewing and, where appropriate, renewing the current tourism strategy to ensure that it is focused for future development and that the tourist industry is well placed to benefit from the upturn. This group is expected to report in the near future.
This year is proving to be another excellent year for Irish sport. In March, Ireland ended a 61-year wait for grand slam success and won their first RBS Six Nations title when they defeated Wales in the Millennium Stadium in Cardiff. Leinster had a fine season beating defending Heineken Cup champions Munster in the semi-final of that tournament and capping this victory by winning the Heineken Cup in Murrayfield after a closely fought battle with the Leicester Tigers.
Our boxing further progressed when Bernard Dunne captured the WBA World Super Bantamweight World Title at the O2 Arena. Most recently, we have witnessed the remarkable achievement by Shane Lowry in winning the Irish Open Golf Championship. The Irish Open is one of a number of sports events being supported this year through the international sports tourism initiative, which is administered by Fáilte Ireland. Shane Lowry's victory in this year's event resulted in a greater than expected return for the State's investment, due to the additional media coverage that was generated by his win as an amateur golfer competing in his first European tour event.
The Volvo Ocean Race stop-over in Galway was also supported through the sports tourism initiative. A total of €8 million was provided to secure the event. This figure includes investment in several infrastructure items, which will remain in place after the race. It was originally estimated that the race and its associated two week celebratory festival would generate €43 million for the west of Ireland economy, and attract more than 140,000 visitors to Galway. In fact, the stop-over exceeded all expectations and these figures are likely to have been significantly surpassed. High profile sports events such as these attract global media coverage and are a most valuable means of promoting Ireland as a holiday destination. The huge social and economic benefits of sport are acknowledged by the Government and this is reflected in the level of funding invested in sport in recent years. The level of funding available for sport in 2009 is more than €195 million.
The sports capital programme is the primary means of providing Government funding to sport and community organisations at local, regional and national level throughout the country. While no decision has been taken on the timing of the next round of the programme, there is an allocation of €56 million in the subhead for this year, which will cover payments still to be drawn down for grants awarded in previous years. Well in excess of 1,000 payments will be made to projects being undertaken this year across the country. The sports capital programme has been a huge success, with the allocation of more than €725 million to more than 7,400 projects since 1998. It would be no exaggeration to say that the programme has been of benefit to communities the length and breadth of the country and has transformed the sports facility landscape.
Other sports projects are also continuing, including the current round of the local authority swimming pools programme. Nine swimming pools were completed and opened in 2008, and a further three so far this year. Four more pools are under construction or are about to start construction. I am pleased to say that the new Lansdowne Road stadium is on schedule to be completed and become operational in April 2010. The stadium will be a distinctive sports and architectural landmark for the city. It will be a world-class stadium and a source of pride for the people of Dublin. The decision earlier this year by UEFA to award the hosting of the 2011 Europa League final, formerly the UEFA Cup, to Dublin is a clear recognition by UEFA of the potential of this new state-of-the-art venue and provides an early return for the Government's commitment to investment in sports infrastructure.
The Irish Sports Council, ISC, is the statutory body responsible for encouraging the promotion, development and co-ordination of competitive sport and for increasing participation in recreational sport. It has received more than €314 million in funding since it was established in July 1999 and its allocation for 2009 is almost €52 million. Since its establishment in 1999, the ISC has been central to developing sports ability leading to high performance, while at the same time driving participation levels in conjunction with the national governing bodies, local sports partnerships, the Institute of Sport, Coaching Ireland and the Olympic and Paralympic Councils.
Government support for the horse and greyhound racing industries is provided under the horse and greyhound racing fund, which was established under the Horse and Greyhound Racing Act 2001. In 2004, the Government put in place regulations to increase the limit of the horse and greyhound racing fund from €254 million to €550 million to continue the fund for a further four years to 2008. By the end of 2008 a total of €545.8 million was paid out of the fund. The remaining balance in the fund at the start of 2009 was €4.2 million. As much as €68.1 million has been allocated to the fund for 2009 and a regulation which increased the level of the fund by €63.907 million has been made by the Minister for Finance.
Funding of both of these agencies supports two very important productive industries and helps to sustain the important role of horse and greyhound breeding and training enterprises in the development of the rural economy. These industries, together, account for an estimated 27,500 direct jobs, generate very substantial economic activity and make a vital contribution to the rural economy including farm incomes. The funding given to the greyhound racing sector helps in sustaining a tradition that has existed for hundreds of years and in underpinning the economic activity in what are in many instances less affluent regions of the country. This funding has allowed Ireland to develop into a world centre of excellence for horse racing. Horse Racing Ireland has undertaken a capital investment programme that has underpinned growth in the sector. The fund has also contributed significantly to the almost €90 million that has been invested in the improved facilities now available at greyhound tracks around Ireland.
A review of the fund is nearing completion and will be submitted to the Government in due course in the context of deciding on the future funding of these industries. Any extension of the fund will require the approval of the Government and the Oireachtas. In finalising the review of the fund I intend to take into account the comments made by the members of the Oireachtas during the recent discussions at the meetings of the Oireachtas Joint Committee on Arts, Sport, Tourism, Community, Rural and Gaeltacht Affairs and in the House during the making of the Horse and Greyhound Racing Fund Regulations 2009.
The arts and culture sectors are vibrant and vital sectors of our economy; the wellspring of many of our creative and innovative enterprises. These sectors are primary economic contributors, real businesses, enduring employers, and differentiators of us as a cultural and tourist destination. This year, more than €178 million has been allocated to the arts and culture subheads, including the National Gallery. Our national collections are a core part of the national patrimony. The objects and treasures in our possession are open and accessible to the public. The collections are educational as well as aesthetic; they tell a story as well as inspiring a vision of continuing creative endeavour and excellence. The national cultural institutions continue to attract large numbers of visitors and are an important component of Ireland's tourism product. In 2008 nearly 3 million people visited cultural institutions funded by the Department and approximately 22,000 artists of all ages performed in the National Concert Hall during 2008.
The Government is committed to the enhancement of cultural infrastructure. A significant example is the redevelopment of the National Concert Hall. It will be a design-build-finance-maintain PPP project, as decided by the Government, to provide a concert hall complex developed to the highest international acoustic and architectural standards, including a newly built main hall with a seating capacity of about 2,050 seats. The successful tenderer should be selected by autumn 2009 and will then apply for planning permission for the project proposal. I look forward to placing a contract for this project as soon as the successful tenderer receives the necessary planning permission, with a view to the commencement of construction early in 2010.
One of my Department's projects which caught the public's imagination in a remarkable way in the past year is the digitisation of the 1901 and the 1911 censuses, which is funded from the D4 subhead. Dublin census records were made available through the National Archives website in November 2007. By the end of 2008 the 1911 on-line records for Donegal, Cork, Galway, Wexford and Offaly, King's County, were added. This year the National Archives will complete the digitisation of the 1901 and 1911 census records. This facility has proved enormously popular. The census records represent an extremely valuable part of Irish national heritage and are a wonderful resource for genealogists, historians and other scholars.
I am very pleased to note that, in addition to the National Archives, other cultural institutions are also making their exhibitions available on-line. For example, the National Library has made its 1916 and Yeats exhibition material available and the Crawford Art Gallery in Cork has made more than 100 of its images available on its website. The National Library is a partner in the European Digital Library portal that brings together the catalogues of the national libraries of Europe; some of the NLI's catalogues already featured in the portal have links to digitised images.
The funding available to the Irish Film Board this year will allow it to continue to support high quality international film and television drama filming in Ireland. This will create a high level of employment for Irish industry professionals, including directors and actors. It should also provide new business opportunities for Ardmore Studios and other studios in Ireland and also new business opportunities for Irish post-production houses. We hope to ensure Ireland remains an attractive base for local and international film and television production. The Irish Film Board works closely with many Government agencies such as Dublin Tourism, Dublin City Council, Fáilte Ireland and Tourism Ireland to ensure both indigenous and international filmmakers are provided with opportunities that are as film friendly as possible. This, together with the significant enhancements to section 481, is ensuring Ireland retains a strong indigenous film industry and remains an attractive location for international filming.
It is vital that the protection of employment is given a very important priority, not only in the audiovisual-film-making sector but also across the whole economy. That is why it was important that the changes to section 481 were introduced in March this year, as it will once again make Ireland competitive in attracting major international film-makers to Ireland to make their films. These film-makers will be employing Irish personnel both behind and in front of the camera and it will have the spin-off of exposing the Irish personnel to new skills that will assist them when they come to making their own films.
The audiovisual production sector in Ireland was valued at more than €500 million in 2007, employs more than 6,000 individuals and represents 0.3% of gross domestic product. The results illustrate that the audiovisual industry is a dynamic and flexible sector with highly educated personnel, capable of demonstrating significant growth and value in the future, which will remain an important asset when looking for key areas which may promote jobs and growth.
Government support for the film industry has already achieved positive results this year with recent films such as "Leap Year" filmed on location in Ireland with an Irish budget of €13 million. The fourth series of "The Tudors" will begin production this summer creating 3,600 jobs, with an Irish spend of more than €20 million. It is significant that these two projects alone can create 3,600 jobs and it demonstrates the value of both the film and television sector and the quality of the people working in it. Already this year a number of indigenous films have gone into production such as "Outcast" and "Shelter", all of which are providing much needed jobs in counties all over Ireland.
Tourism is another area where the synergies and links with the arts and film can be seen as an economic attraction for Ireland. The 2007 visitor attitudes survey has shown that television and film are recognised as strong influencers on prospective visitors with around 15% saying they were influenced by film and another 12% by television and radio programmes.
My Vote group also includes Vote 33 for the National Gallery. Of the €11.2 million allocation in 2009, more than €9 million is to meet general administration costs. Most of the balance is to fund acquisitions and conservation activity by the gallery. Its exhibition programme for 2009 includes From Raphael to Rossetti: Drawings from the Gallery's Collection and Harry Clark's Illustrations for Hans Christian Andersen's Fairytales, both of which are running until August. In addition, the gallery’s recent contemporary print exhibition Revelation is touring regional galleries and arts venues. I am very pleased to note that the gallery is continuing its strategy of acquiring works of art that enhance its collection. Most recently, it acquired Sir William Orpen’s portrait of Count John McCormack.
The programmes I mentioned comprise only a few of the many funded by my Department and the organisations under its aegis. I hope it gives a flavour of the range of projects and activities for which I am responsible. I remind the committee that the arts, sport and tourism sectors together employ almost one sixth of those currently in employment in Ireland. I commend the Estimates to the committee and will be happy to provide additional information or clarifications for members during the course of our discussions.
Item No. 5 is the tourism programme, with total net expenditure of €154.9 million. The target outputs include: 2009 business plans for tourism agencies agreed; marketing strategies in place and appropriate budgets secured; growth targets for overseas visitors of at least 7.1 million in 2009, which represents a figure of -9% on the 2008 performance, and associated foreign revenue earnings of at least €3.25 billion, which represents a figure of -15% on the 2008 performance; completion of the work of the tourism renewal group and publication of its recommended framework for action in the period up to 2013; assisting Fáilte Ireland in the delivery of the full round of assessments under the tourism capital investment programme, supported by targeted investment of up to €7 million in 2009 and the provision of training and business supports for up to 12,000 students and tourism sector workers, business owners and managers; and agreeing with Fáilte Ireland a revised approach to meet the changed training and enterprise support needs in the new economic climate. Do members have any questions on the programme?
I am confused. I was not sure initially how we would deal with this. Is the Vice Chairman saying that if I speak now, I can speak only on the tourism programme and the target outputs, not on the Estimates?
We can go through them as individual programmes or take them collectively?
It would be best to take them collectively.
If it is agreed, we will take them collectively.
I apologise; I did not understand how we would deal with this, although I should remember from last year. I welcome the notion of having target outputs. It is an attempt to establish exactly where the money goes and if we are getting value for money.
I must read each of the programmes. The Deputy can speak again later.
Are they related to the target outputs, the Estimates or both?
The Estimates.
And the target outputs.
Yes. We have to read items Nos. 5 to 7, inclusive, into the record.
That is fine.
Item No. 6 is the sports programme, with a total net expenditure €200.1 million. The target outputs include: the Irish Sports Council strategy approved and in place, and the value for money review as published; continued support to the NSCDA, subject to budgetary provisions; the new strategy for Horse Racing Ireland approved and in place; legislation regarding Bord na gCon significantly progressed and current difficulties overcome; monitoring implementation of strategy and compliance with Government financial and corporate governance requirements; a review of the horse and greyhound racing fund completed and agreed by the Government and negotiated through parliamentary process; support provided for the Lansdowne Road Stadium Development Company leading to completion of project in 2010; renovation of existing building completed and in use by Institute of Sport staff; planning permission secured for national sports campus; five swimming pools completed and open to the public and one pool construction start; completion of the national sports facility strategy and audit of sports facilities completed.
Item No. 7 is the arts, culture, film and archives programme, with net programme expenditure €175.5 million. The target outputs include: implementation of Culture Ireland's strategy and achievement of its targets; development of National Archives legislation, including amalgamation of National Gallery, Irish Museum of Modern Art and Crawford Art Gallery Cork, while retaining their individual brand identities; amalgamation of National Library, Irish Manuscripts Commission and National Archives and inclusion of appropriate National Archives Act provisions and amendment of National Cultural Institutions Act 1997; EU approval of section 481 enhancements secured; blueprint for future policy on the audiovisual industry completed; PPP process for the new National Concert Hall progressed to contract stage; international design competition for the National Theatre moving towards completion; ACCESS 1 project completed, ACCESS 2 project ongoing and expenditure review completed; continued progress on the centre block of the National Museum to request move to tender stage; work on the reopening of the Natural History Museum completed; draft combined brief of requirements for Kildare Street site completed; master development plan for National Gallery of Ireland submitted for planning; and progress on the Heritage Fund Bill.
For the National Gallery programme, the net expenditure is €11.2 million and the target outputs include: strengthen conservation staff resources and departmental structures to better meet current needs; launch the collection database in September 2009; commence planning process for managing and displaying the collection during the master development programme; facilitate the master development programme project manager during works; manage progress on the catalogue of early Italian paintings; continue to progress new website project; maximise attendance at the educational programmes for 2009; upgrade financial accounting application; and connect to the Government network to enable interactive PMG, or video, communications.
As I said, I welcome the idea of having output statements because it helps to concentrate minds on achieving targets and obtaining value for money. However, this process, although it is an attempt to achieve value for money, is flawed because it does not make any attempt to match output with cost. I read the statement in conjunction with that for last year and have noticed that when targets are not achieved, they are just changed. I am not being critical because I can understand what makes this happen. I see six blank faces looking at me, but that is actually what is happening. The targets change and we move on. It is particularly meaningless because the targets are being reduced all the time. This makes one wonder about what exactly is happening and what value for money is being obtained. The targets are being abandoned: for example, under the national development plan there was something like €300 million available to be spent, but the maximum amount we are to spend in the first three or four years of the plan is only €30 million. One wonders what is the purpose of all this.
The Department has 20 agencies within its remit for which the Minister does not take responsibility, generally, except in terms of policy. These agencies potter along doing their own thing and the Department deals with ACCESS grants, sports capital grants and swimming pool grants, all of which are now gone. This raises the question of what the Department does and what is the role of the Minister. The Minister has an opportunity to play a co-ordinating role with all Departments and agencies which impinge on tourism but are not his direct responsibility. This is of increasing importance.
I have voiced before my view on the importance of tourism: it should be centre stage of an economic Department. This is not a criticism of the Department, but tourism is undervalued and under-rated in terms of its economic potential because it is dealt with in a Department with arts and sports which are intrinsically valuable but do not have a specific commercial and economic value — at least, that is not the motivating factor behind them — whereas tourism is now our biggest employer. Even though the numbers are falling, tourism must be centre stage in the economy. Now that the Minister does not have grants to administer and hotels to open, his job should be to consider issues such as air access, which is contracting every month. This is a serious worry. I could go through the list of items that impinge on tourism but this is probably not the moment to do it. However, this is something about which any Minister should be concerned. The Minister must play a much more active role in all the other areas that impinge on tourism, including justice, the environment and transport, if tourism is to be put centre stage and remain an important source of employment.
I am looking at the outputs for the tourism programme. One of the targets is to assist Fáilte Ireland in the delivery of the full round of assessments. Obviously, the amount of money available has been reduced; I will talk further about this when we get to the relevant Estimate. However, I keep coming across targets that involve spending money or helping somebody else to spend money. I am not sure that is a meaningful target for a Department to have.
I am interested in the target output of obtaining agreement with Fáilte Ireland on a revised approach to meet changing training and enterprise support needs in the new economic climate. Has this been started? What exactly is envisaged in this regard, given the importance of training and retraining in the current economic climate?
The next set of targets is for the sports programme. The value for money review of the Irish Sports Council was a target output for 2008 and to be published this year, as it has been. Is there any target that involves taking action based on the value for money review which made a number of suggestions as to how things could be improved?
The next set of target outputs relates to Horse Racing Ireland, Bord na gCon and the horse and greyhound racing fund. If we consider the 2008 output aspirations and the 2009 targets, they are all about reviews. Precious little else has happened. Something did happen which was then reversed, namely, the proposal for a change in taxation from 1% to 2% to fund these industries, which was suggested in the October budget but which has now been removed. We have spoken about this at length and the Minister knows my views. I find it worrying that those who shout loudest receive attention. I will come back to this issue when discussing the Estimates, but much more than I envisaged is now coming from the sports budget. That was everybody's concern, but we were reassured that the increase in tax revenue would provide the vast majority of the fund. That is not the case. I did not draw attention to this because the racing industry is important and I do not want to start jumping on bandwagons, but the Minister is wide open to criticism in that regard. He should not have allowed it to happen. This was the result of lobbying by the bookmakers. If we are to carry out a further review to see if we can find money elsewhere, let us do so, but in the meantime the money should not be coming from the sports budget but from taxation receipts. The bookies obviously shouted louder than the Minister, and that is my concern.
On the swimming pool programme, the target, as I recall for 2008, was for six pools to start construction. One pool has been started and one starts this year. What has happened to all the others? Are they not ready to start or have they been told to hold back for a better year when money might be available? What exactly is happening?
Turning to the rationale for how programme outputs contribute to key strategies in terms of the arts, culture and film archive programme, I want to make a couple of comments. On the proposal to amalgamate a number of the national cultural institutions I do not believe the archive should be removed from a Department. It is more than part of our cultural history and something that is nice to have. It is a state responsibility in every country to maintain an archive. The Minister mentioned the similarity between Canada and Ireland, but responsibility lies within a government department in Canada. To move the archive out is a bad move, and it is being done for all the wrong reasons — for reasons that have not even been well researched. The Minister goes on, for instance, to talk about the combined brief of requirements for the Kildare Street site and says that facilitating the amalgamation, a readjustment of previous capital proposals for these bodies would improve the effectiveness, efficiency and quality of the mechanism delivering State support for the arts. He does not know that, however. No real assessment has been carried out. This is top of the head stuff. It is a case of, "let's come up with a budget and maybe save money". He does not even know whether it will save money. Therefore to assert that this is something that will improve effectiveness is disingenuous, to say the least.
I was pleased that the Minister said construction on the National Concert Hall structure would begin next year. I shall be delighted if this happens because it has been the most mind numbingly slow process of procurement that I have ever seen. This interviewing system is a totally new way which must be enormously expensive for those who are tendering to be involved over several years. I hope it will proceed and that somebody will get something from all the money that has been put into it. I am pleased the Minister is saying that it will start next year, and I hope that is true. However, on the National Theatre the Minister says events in that regard provide concrete evidence of progress on this key strategy. Is that a joke, since there is no concrete, or progress? A great deal of money has been spent. I have asked the Minister several times for the figures, but there is no sign of the National Theatre project proceeding any faster. This time last year he promised us that by the end of summer 2008 he would have the design competition ready. Here we are, 12 months later, and there is no sign of it.
I am sorry I am taking so long. The centre of the National Museum is another source of disappointment. It has been at the same stage for years, and nothing is happening. Even less is happening now than what was envisaged last October.
I suppose I can deal with the Natural History Museum under the Estimates. Last year the Minister said the tender process would be progressed and the target was for the scheme to be developed to facilitate the opening. Now the new target is, "work on reopening will be completed". However, it is a completely different reopening. Therefore it is very disingenuous and misleading to put this down as a target — as it followed on from a previous target — when a completely different outcome is being promised at this stage.
I am pleased to see the percentage for art guidelines is progressing, although this is probably not very urgent, given that very little public work is going on. Nonetheless it is a good idea to put new guidelines in place and I hope that scheme will continue.
On the heritage fund, I believe that legislation has been promised for years. There is now urgency about it and even though there is very little money available we should make an effort to get some money into that fund. It is precisely in difficult economic times that private owners of pieces of cultural heritage are inclined to dispose of such artefacts, such as paintings. It is important that money should be made available for the State to intervene in such cases.
I am sorry if I am eating into other people's time, but there is a good deal of stuff here. I shall move straight away to the Estimates. Normally, I do not comment on the administrative Estimate, because it is very small in this Department. However, I am somewhat surprised at the number of items that have increased significantly. Again, the moneys are relatively small and we are talking about thousands rather than millions. I wonder, however, that at a time when everything is contracting, including overtime, if not employee numbers, why postal and telecommunications costs are rising, as well as incidental expenses and office machinery. That leads me to the question of decentralisation. Is this the explanation? Perhaps the Minister might comment on that.
They are fully installed.
Half of the staff is installed while the rest stay in Dublin
Nearly all of the Department is moving.
There is still a good deal of money going into Fáilte Ireland, and that is good. However, I would welcome a breakdown of capital and current spending. How much of the €77 million in current expenditure is for administration or training and the promotion of attractions? What about the fact that there are two head offices, going back to the time of the amalgamation with CERT? Is it not now time to dispose of one of those offices and amalgamate the departments? It seems to me to have been something that was done to prevent ruffling feathers at the time, but now it is time to get over that. We just do not have the money for this type of indulgence. Perhaps the Minister might comment on that, too.
The product development budget has gone down significantly and we all understand why. What type of projects are being dropped or where will priorities be established, given that the product development budget has halved? Are there certain priorities to do with that section and that budget?
I had a question about the swimming pool programme, which is down from €20 million to €12 million. I am anxious to establish with regard to pools owned by local authorities, clubs or whatever, given that the budget has gone down significantly and the fact that a number are coming to the completion stage, that nobody is left waiting for their money when they are ready and depending on bank loans. That may not be the case and it might be that this is all the money which is required, but I am anxious that communities and particularly local authorities are not left carrying overdrafts.
There is an issue about the rates for the national sports campus. The Minister could make representations on behalf of the campus about the rates. There is an issue with Fingal County Council, which would like rates, and there is the competition issue. The competition is with the leisure end of the campus as opposed to the National Aquatic Centre and its role as a national institution. I understand other national institutions such as the National Gallery do not pay rates. Am I correct?
They do not.
Some of the sports campus facility could be rate-free while the part that competes with other swimming pools might be liable for rates. I do not know to whom the Minister might make representations, the Department of Finance or the Valuations Office, but the sports campus is accumulating a bill year by year and it needs to be resolved before it becomes a millstone around its neck.
I am surprised to see €1.5 million in for the Lansdowne Road Estimate for this year. I thought the €93 million had cleared that. Maybe I have got that wrong. Could the Minister clarify that?
The next item is a horse and greyhound racing fund. This will arise and I have put down a question on it, which we should have had today. I am anxious to know if the Minister has any estimate of how much is being lost by reducing the levy on betting from 2% to 1%. If he does not have it now the Minister might have it by next week when we discuss it.
The Minister has heard me speak many times about the National Archives. It is the forgotten child among all the other institutions. It comes under the Minister's Department and he is anxious to get rid of it. Because it remains in the Department he should keep it there because it is part of our responsibility as a State to maintain archives. He should also champion the archives instead of making them the poor relation as opposed to other institutions.
There are problems in the National Archives but there is also great potential. It requires not just money but management. There must be expertise in the Department that could go in there and revolutionise it. It needs a new, dynamic management structure but seems to have been allowed to moulder away. It is not in the national interest that this should happen. I am not convinced that taking it out of the Department and having it at hand's length in with the National Library will improve it. The Minister should adopt it and allow it to reach its full potential. It is important and has enormous tourism potential. There are many other issues I could discuss but I will leave it at that and I apologise to the committee.
I welcome the concept of the target outputs because it gives us some indicators of what to expect and what to plan for, but I look at so many of them and see words such as "commenced", "in due course" or "in the near future". They move on from year to year without necessarily being delivered. I ask broadly the same question as Deputy Mitchell, how do we track them when so much of it does not seem to happen and we do not seem to move forward?
I will make a few general comments and will then take a look at the Estimates. Tourism will be a very important industry and I appreciate all the difficulties surrounding it given the international problems. There are three or four agencies, and we have raised this matter before, including Fáilte Ireland, Tourism Ireland and Shannon Development. Surely there could be better co-operation and interaction between these agencies. We have examined this and got the Minister's views before, but it could be looked at.
There is a statement in one of the papers I have here that the Department has a particular role in ensuring the optimum levels of corporate governance and financial probity are in place in all the bodies under its aegis. Against that background I ask the question on much of what is going on in sports that is very damaging to sport. The Minister will be aware of what I am talking about. I will not name the organisations again today.
If the Department has a role in ensuring optimum levels of corporate governance and financial probity, there is a case to be examined regarding some of these organisations. It is very important that is done both from the point of view of value for money, the delivery of the product to the community, the status of these bodies and the implications for everybody who has an interest in sport. Because of that statement, there is an obligation to inform us and let us know how that corporate governance and financial probity are being ensured.
I will not repeat the specific questions Deputy Mitchell has asked, but could we find out from the Minister how much money comes from the national lottery and goes to the Arts Council, the Irish Sports Council and the sports capital programme. I would be very interested in hearing the breakdown of this. We have tried, through parliamentary questions, a number of times to get this information. Maybe there is something I am not quite grasping but it is important to get that information.
There is a long-term plan for the film industry. This is very important and will become more important if we can capitalise on it. Could the Minister elaborate on the long-term plans for the film industry in Ireland and how we might extend those to ensure we have a very vibrant film industry here? The section 481 scheme has been updated and upgraded and that is very welcome.
The employment figure for the Department is quoted at 301. Is this not a little disingenuous given all the various bodies and semi-State organisations under the banner of the Department? The number employed in the area is much greater than that, taking into account Fáilte Ireland, Tourism Ireland and all the various bodies. Could the Minister come back to that? It refers to the previous comments on what all these semi-State bodies are doing and the Department's role relative to those. We have quangos all over the place such as the tourism agencies delivering the various products to us. How does the Department interact with these? What is the importance and the relative role of the Department by comparison with the roles of each of these agencies?
I will move on to the Estimates. The Minister might comment on the tourism product development which is down 50%. I know some of the reasons for this but the Minister might comment on the very substantial reduction and the impact it will have. The Irish Sports Council grant-in-aid is down approximately 11%. Will the money for the Gaelic Players Association come out of the Irish Sports Council grant and will the Minister comment on that? Unless there is something that jumps out at me, I will deal with the large items I have identified. The budget for cultural infrastructure, subhead D5, has been cut in half. The Minister might comment on the significance of this.
We have had much commentary on the reduced grant-in-aid for the Arts Council. I have not worked out the exact percentage, but it will be perceived by the arts community as a substantial reduction. How will it impact on the delivery of the arts programme? I may come back with one or two other questions later, but these are the specific questions I wished to ask.
It would be remiss of me not to comment on the sports programme in the presence of the Minister and his departmental officials, including the Secretary General and assistant secretary. Coming from the sports capital of the country, I have seen the tremendous benefits the sports capital programme has brought to hundreds of communities throughout my constituency. I am sure Deputy O'Mahony will agree with me when I say we have seen the tremendous benefits of that programme. Without being political, it is the perfect example of how the Government did not blow the benefits of the boom. When people say the Celtic tiger passed them by, that aspect could be seen at every crossroads and in every town and village. I regret very much that at a time of extremely limited resources we cannot continue with the programme. I look forward to seeing moneys being made available for it in the future, please God, as we can never invest enough money in sport. I compliment the Minister and his predecessor on securing substantial funds at the Cabinet during the years. I must acknowledge this.
On a general point, many believe all of this funding has come from the sale of lottery tickets. Perhaps the Minister might comment on this because I understand huge resources were ploughed into sports grants other than from the national lottery.
I am slightly confused by Deputy Upton's point about the GPA and the expenses stipend paid to players last year. As the Minister knows, I am a strong GAA supporter and fully support the amateur ethos of the association. It has come from not wanting to administer the grant on day one and running a mile from it to now bemoaning the fact that we might not have enough funding to support the players whom I fully support. I understand resources are limited, but whatever happens it is nothing more than an acknowledgment because the amount of money involved is small. If the GAA is so concerned and bemoaning the fact that it cannot be paid, should it not step up to the plate and provide some funding? I am being honest in saying this. We cannot have it both ways: either we support the players who are acknowledged by the State or we do not. That is what should happen.
If I have one regret in years it is that we did not succeed in building a national stadium. We have Croke Park, a fantastic stadium which is the envy of the world, and very shortly will have Lansdowne Road to accommodate the IRFU and the FAI. We have many county grounds into which huge resources have been ploughed, including the Gaelic grounds in Limerick. It is important to recognise the efforts of the Minister and his departmental officials in this respect. In many cases, groups which tried to draw down this funding experienced great difficulties. It is new to them, but they receive tremendous co-operation from various sections in the Department. I would not like to let this opportunity pass without making these few comments. I hope the Minister will not be too disappointed next Sunday evening when we leave Thurles.
Is the Deputy referring to the hurling match? I call on the Minister to respond to the questions put to him.
In fairness to the Deputies concerned, in their questioning and the points they made they all captured the relevance of the economic environment which has clearly impacted. When I presented the Estimates on the last occasion and since when dealing with parliamentary questions and before this committee, I did not deny that it had clearly had an impact on many programmes. We must manage programmes very carefully and try to get as much as we can from them. Deputies will also be aware of the position on local authorities' ability to provide anticipated funding for some of the programmes, which is now much more difficult. In addition, the position on private sector involvement has also become more difficult. In that context, therefore, it is hard to be specific on outputs due to uncertainty that does not all stem from the Department. In the broadest sense I would like to have more resources to spend in all the areas mentioned. That said, however, we will still be spending considerable resources in many of them. As Deputies have acknowledged, the investment made in the last ten years has been hugely significant across the entire spectrum, whether in sports or directing many new small arts facilities in towns and villages. The employment of arts officers has transformed the landscape.
Deputy Mitchell and others have raised the question of arts, sport and tourism, suggesting tourism would somehow be better off if it was catered for by an economic Department. I presume people are talking about the Department of Enterprise, Trade and Employment. However, tourism has primacy in having its own Department. While this is open to debate, it would be much more difficult for it to find its position, given the dominance of other elements in other Departments. Following discussions, there was an acceptance by Deputies that there was enormous synergy between sports and tourism products. The latest example was to be found in Galway with the Volvo Ocean Race. I hope Deputies got to see what was happening there. The anticipated number of visitors of 140,000 was surpassed in the first three or four days of the event which spanned two weeks. The total spend also far exceeded what had been anticipated. There was an enormous international benefit from the event, not just in Galway. Good Food Ireland and IDA Ireland had a great impact during all the other stopovers. I have spoken to people involved in the Irish food sector who participated in events during the stopovers in South Africa, Boston, Singapore and China and they were blown away by the opportunity presented. I was not present during any of the stopovers, but there was a tremendous Irish presence which acted as a magnet at those locations. The number of visitors to the Irish stand far exceeded that attended anything anybody else did. We purposefully went for a global approach, which is a good example of the synergy between the arts, tourism and sport. The capacity built in the last few years, including the branding and other work involved, is bearing fruit. I am genuinely heartened by what is happening in the tourism sector.
We all accept there is a difficult global environment and I will not rehearse the figures again today. However, the CSO and international figures on our ranking vis-à-vis the United Kingdom and other countries are positive. I am surprised that, given sterling’s advantage, the United Kingdom is taking such a big hit of over 13%, while we are around a figure of 6%. Last year I had numerous meetings with the Irish Hotels Federation and the Irish County House Association. There was a lot going on to try to maximise output this year and shore up the industry as best we could. This is paying off, when one takes a reasonable view of the figures.
I am not happy we are down 6% in the first four months of the year and would prefer we were not. However, to be realistic, we are well ahead of the game in terms of the European hit that is being taken, and Ireland is certainly up at the top. As Deputy Mitchell would know as she was dealing with the portfolio at the time, this also happened following 9/11, BSE and all of that. While we can be constructively critical, rightly so, there is a shoulder to the wheel with regard to the indigenous tourism sector in this country at present. It is fighting off the floor internationally and is using the resources that have been made available to it very carefully. There was practically no change in the marketing budget.
We have two major tourism bodies. One can argue this is a good or a bad thing but the fact is Tourism Ireland was born out of the Good Friday Agreement and has a very important role to play in the all-island marketing of Ireland internationally and is helping Ireland, North and South. At the same time, underneath, the Northern Ireland Tourism Board and Fáilte Ireland are both retained, with the associated synergies.
To reply to Deputy Upton's question, I have always had some concerns but Shannon Development has a strong enclave in the west and has its own view of the world. When I was in the Department of Transport some years ago, I was of the view that it should be part of the bigger organisations and I maintain that view. However, that is probably heresy to people in the west and I am not rushing to change the pitch. That is the way it is. I am not suggesting the organisations there do not have a value because they do and they achieve much. However, in the years to come, with rising costs, including the cost of marketing internationally, it is very difficult for an organisation of that size to create a presence on the international stage, where costs are very significant.
Deputy Mitchell asked for a specific breakdown of the budget in tourism, in particular for training. To break it down for 2009, capital investment and product development received €11 million; sports tourism, €8.2 million; festivals and cultural events, €3.3 million; business tourism, €2.7 million; leisure tourism, €5 million; quality and standards, €1.6 million; enterprise and management supports, €3 million; tourism training, in which the Deputy was particularly interested, just under €12 million; regional marketing, €22 million; and there was also an allocation for visitor services. I can provide the figures for the Deputy if she so wishes.
Does the figure for regional marketing concern marketing within Ireland? The document refers to niche and regional marketing.
Some of it is within Ireland. The Fáilte Ireland budget is with regard to marketing within Ireland and the Tourism Ireland budget is where the international marketing fund applies. The new marketing programmes which the Deputy will have seen running on television are having a very good effect. I know from talking to the tourism interests that they are hopeful the Irish market will be strong for them this year, and it is always an important part of the market in any case. This may shore up the position given the lack of international travel which every country is experiencing. There is a very substantial investment in tourism, training and all of those elements.
Deputy Upton referred to the relationships between the sports organisations. While I am not happy about this and have had detailed discussions with all of the organisations, some opportunities will arise for me in the near future in regard to how I can consider reconfigurations, the personnel involved and so on, which will be important in achieving as harmonious a relationship as possible. I agree with the assessment of the Deputy and the committee that, without going backwards, it is important for all in sport that the organisations have good working relationships with each other. While they all have individual roles, ultimately they must work well, which includes working well with each other. We are all seeking to put on the Irish jersey and they should do so also. I hope some of the issues that arose in recent times are beginning to be resolved, which would be important.
Deputy Mitchell asked about the swimming pool programme and why six starts were shown in the documentation although there was only one start. This was because the other projects had moved into the "completed" column, which listed nine projects as having been started and completed, although these were simply shown as "completed". Does the Deputy understand the point?
Yes, I understand.
There were six starts but the programme ran ahead of the expected timeframe and most were completed.
The general point is that we are now dependent on the local authorities' ability to stay with some of these programmes in terms of the role of funding, which is clearly a pressure point for them. I assure the Deputy that no local authority is awaiting any payments or grants from my Department. There was three legs to the stool for much of this, including the private sector and the local authorities. That mix is obviously under pressure because the three elements are under pressure but we are still trying to forge ahead in this regard.
With regard to the question on the Horse Racing Ireland fund, the answer is that I do not know at this stage. What happened recently is reflective of the dramatic change in the market in the first six months of the year which, by the way, had nothing to do with Ladbrokes, Paddy Power, Boyle Sports or any of the big sports companies. The effect of the change would have been marginal for these companies but many of the smaller, independent operators would have gone out of business. The Department of Finance took a view on this——
Is the Minister referring to the bookies?
Yes, I am talking about the smaller ones. The bigger guys can absorb it but the smaller guys cannot. The Deputy is correct and I have referenced this very specifically because of what she and Deputy Upton have said.
There are two elements. We have just about completed our review and the Department of Finance is considering the complexities and technicalities of the tax law on Internet and telephone betting, which are the two legs of the stool. I am anxious to come back to the committee for a good discussion on this issue and will do so as soon as possible. We need to resolve this problem immediately. I agree with both Deputies that the current position is not sustainable, which the industry accepts. We must move on.
I was asked about national lottery money. The reality is that the money from the national lottery goes to the Exchequer, so it could be said that none or all comes back to the Department. We obviously take the point that what we get is part funded by the national lottery but we do not get any of it directly, unfortunately — I wish we did. The mistake made when the national lottery was established was that taxes should have been abrogated, if I can use that word, and the money should have been assigned at that time.
I would say it will be as successful as the Minister's betting levy. These matters are not popular with Ministers for Finance.
The Deputy is correct and, with her experience, she knows well what the score is. However, that is the position.
One of the bright points, if I can say this in the none too bright economic climate, is the film industry. I thank the Deputies for their support during the changes that were brought about. This is clearly an industry with much success ahead of it. I believe we have made the right decisions. I was astonished, as were my colleagues in Cabinet, when I gave them the figure in recent days that "Leap Year" and series four of "The Tudors" are employing 3,600 people between just those two productions, which is phenomenal. If 350 jobs makes a good company nowadays, that is like having ten such companies.
We are very set on this area. The pipeline looks good and the section 481 changes have been commended. The other benefit is that there has been a huge number of positive reports in the appropriate magazines, newspapers and expert publications in the United States, which will have a positive effect for Ireland. The awards we keep picking up every year, whether at Cannes, Sundance, the Oscars or otherwise, also keep us in the mix.
The research we have had carried out independently demonstrates clearly that this has a big effect on people coming to Ireland. Following the film "Once", many visitors have tried to find the locations of key shots and the number of people coming into Ireland because of the success of that film is extraordinary. They do not come just for that reason, but it is another product that has created a greater impact than I might have thought.
The film sector includes the audio-visual sector and the IT sector. It has a very important economic impact, as it is from where the creative people come. New mobile technology is almost entirely being developed in Ireland. The creative mind seems to exist better here. Much of this technology is in that general sector and we should not forget how important it is to our economy.
I agree with the Minister about the potential of the film industry. It is good for tourism and there are major spin offs from it. Either this morning or yesterday, IBEC representatives spoke about these JLCs and set rates that particularly apply to the catering industry. They also apply to other sectors. I have received several complaints from production companies about the expensive rates for film crews in Ireland and about the fact that they are highly regulated. Is this the result of JLC agreements?
I do not know, but international competition is getting quite intense, so the industry must be flexible. I have been told that one of the big compensating factors for films coming to Ireland — I was told this by the director of "Leap Year" — is that the quality of the technical staff is far superior in Ireland to almost anywhere else. He did not mention costs, which are always a feature. Now that the Deputy has raised it, I will look into it.
The USA also seems to have much rigidity with unions and JLC agreements.
They had a strike for years as a result of those rigidities.
They did. I will come back to the Deputy and we will look at this again.
The activity level within the Department under different headings is quite intense. I laid out in the opening statement the diversity and the scale of what the Department does. We had a very tight crew. The Department staff figures only come to 161, so the figure of 301 must include many of the agency figures as well. We have around 89 in Killarney. All this is quite intense.
I recognise what Deputies have said about the capital sports grants. There is no doubt that things have become much more difficult for clubs, local authorities and for banks. We will do about 1,000 projects this year, so the level of activity and the value obtained is very good. I would like to roll out another programme. We are looking at it region by region, and if I can get funding for that, I would appreciate support from all sides of the House to reconstitute the programme. It is very successful. The Irish Sports Council is responsible for all grants that are issued. We give the council a global grant and it uses its expertise to decide who gets what.
I understand the position regarding the GPA. I have met the president and the chief executive of the GAA this week. I will meet the players very shortly, so I will not pre-empt anything. I would like to complete those discussions before I say too much more in public, but I recognise the huge value of what the GAA players do. A few GAA players were at the Irish Open and talked to Pádraig Harrington and others. These professionals were astonished at the level of training the GAA players must do. They put it up there with the level attained by any professional sportsperson worldwide, which was quite interesting. Everybody acknowledges what it takes, and public expectation is enormous.
There are issues with rationalisation. I am a big fan of the National Archives and there is much potential in there. For example, digitisation has been very successful in completing the census from 1911, although the National Archives were not involved in this. We could get much more out of some areas in this. I have an open mind on how this plays out. It is important that we do not do something that gets this wrong. If we do, we will pay a heavy price for it. We should look to release the archives and get them out there.
I have touched on all the areas. We will continue with our investment and with the type of hands-on approach we are taking with many of the bodies to make sure that we deal with the problems in front of us.
I thank the Minister and his staff. Deputy Mitchell pointed out that it is a very useful exercise, because it gives us a good idea of the issues regarding the wide remit of this Department. Deputy Mitchell also touched on the issue of direct flights. Getting direct flights from the Far East and the Middle East is a big issue for Irish officials working in those areas. In the current climate, is there a role for the Department or for Tourism Ireland to engage with the Department of Transport to get direct flights? Many people are looking for them.
The conference centre is based in my constituency on the north quays in Dublin, and it has great potential for that area. It is an historic area of Dublin and any support the Department can provide would be greatly appreciated. I have also seen at first hand in my constituency the great impact provided by the sports capital grant over the past ten years. I encourage the Department to continue in whatever way possible, even if it is only for small stuff. Small capital grants for upkeep, equipment and so on still helps.
Can the Minister give an idea of when the Natural History Museum will be refurbished? Many school representatives have come to me looking to know when it will be reopened. It is a big draw.
I thank the Minister again. I agree with many of the comments made. Deputy Cregan spoke about the sports capital grants. I note a reduction in the sports programme of 41% and I am aware the Lansdowne Road project is a major part of that. The problem is that there is a perception in respect of the sports capital grants and people say they are still buying lottery tickets. The Minister mentioned that the lottery funds go into the general fund and that was a mistake. I would hope that could be changed in some way.
Never.
If the Minister does not change it, perhaps somebody else will change it later on.
Deputy Richard Bruton will change it.
In the world in which we are living sport is a safety valve. The sports capital grant was the means by which the largesse was shared out at community level and it also has the ability to provide employment. There has to be a way around this in the future. I appreciate the Minister is conducting a review. He has asked for co-operation. We will give that co-operation but there will have to be a way around it.
I thank the Minister and apologise for my brief absence. Perhaps some of my questions have been answered. A very interesting statistic in the tourism and sports sector is that almost a sixth of those currently in employment are in those sectors. In light of the downturn in the economy, many local authorities could get involved in low cost tourism, particularly long distance walking. In my constituency of Carlow-Kilkenny there is the long distance walking route through the Blackstairs, the South Leinster Way——.
The Comeragh Mountains.
——which is beautiful. It is low cost tourism. People can put on a pair of walking boots, wear suitable clothing, get a good map and off they go. Has the Minister been working with the Minister, Deputy Ó Cuív, on the access problems in other areas, particularly on the western seaboard and in the south west, as they give Ireland a very bad image? Given that we have had some high profile cases, it would be good if we could deal with that issue. Perhaps farmers could be given some money to manage car parks, repair styles, etc., and promote walking which is a low cost, healthy pastime and would contribute to the local coffers.
I welcome the arts links programme in the south east which links local authorities which do a great job in supporting artists in local rural communities to get access to training and funding. I hope the programme will be suitably funded and that it can continue in operation.
The Minister referred to progressing the legislation for the heritage fund Bill. Will he please elaborate on it if he is not too tired.
No, I am not too tired. Deputy Brady hit a nail on the head. I have some experience having been Minister for Transport. Both Departments are involved in the air access issue and have brought Dublin Airport into the mix. When Minister for Transport I put many agreements in place with the Far East for direct access into Ireland. Even in the downturn, there is no doubt the appetite for direct access, both from the Far East and the Middle East, exists. Much of it depended on the runway, simply because it is not big enough to take the size of plane needed.
When the Minister speaks about direct access, he is inclined to think it is point to point flight.
I am.
That is important but the problem with Aer Lingus is that one cannot book through from places where it is perfectly possible to send a plane and land here.
Yes.
If one was coming from Canada one used to be able to fly to Schipol and through with Aer Lingus but Aer Lingus is not doing that anymore. It is now Ryanair.
I am not happy with much of that. I presume there will be a new chief executive in place in the near future. There is no question but that Aer Lingus is vitally important. In regard to direct access to the Far East, major international airlines such as Etihad have been very successful in flying direct from Beijing, Shanghai and Bangkok. Of course, Etihad has created a Middle East hub which is another exciting opportunity for Irish people where instead of going through Singapore and Thailand, they can go that way to Australia. The key issue, which I accepted during the discussions, is the runway capacity to deal with the size of aeroplanes, not the super A380 but the Boeing 777 type aircraft. That issue needs to be resolved. If the new runway is postponed it may be possible to do one or two things with the existing runway that would help that situation greatly.
Tourism Ireland has opened a new office in the Middle East, for the reason that all Deputies have subscribed to, to capture the longer haul flights to the east, South Africa, the Middle East and the Far East. I am happy to say that has been initiated at ministerial and Secretary General-assistant secretary level and the players have been brought in so that we are not just talking to ourselves but they are part of what we want. I hope that will progress the issues.
I do not disagree with what Deputy O'Malley said. We are being as flexible as possible. Even some of the approved projects have their own difficulties and there may be a rescaling of some of them. The officials in Killarney are working very hard to assist where they can in terms of drawing down the resources and getting projects under way. I am anxious to maintain the programme and to be prepared for a future expansion of the programme.
Deputy White is correct. Approximately 250,000 people are coming to Ireland for hill walking purposes which is a significant number of tourists. Much of the angst and the difficulties in regard to access have abated somewhat but not entirely. The situation has improved quite dramatically and is reflective of the number of tourists coming to Ireland. Through the Department and local authorities working together there has been a massive investment in walking trails, cycling trails and so on. In many respects it is low cost tourism with a big return. For a small investment one can get quite a return and that is anticipated to grow. Hill walking is expanding as is evident in the Comeraghs, the Dublin Mountains and Wicklow. It is a fusion of fitness, sport, aerobics, enjoyment and leisure. It is a lifestyle switch that embraces all of these things.
On behalf of the committee, I thank Minister and members for their contributions.