I am delighted to introduce the Estimate. Much work has been put into their preparation and I ask the committee to accept a certain amount of them to expedite matters. However, so much work has been done that the Estimates also require detailed consideration and I am prepared to deal with questions on all aspects of them. The Chairman mentioned the swimming association. I will deal with that matter when we reach the section relating to sport.
I am delighted to appear before the Select Committee to discuss the 1998 Estimates for my Department. It is a new Department, not yet one year in existence, but it is already proving to be a key Ministry in that it integrates a range of functions and services which have a direct impact and influence on the economic and social progress of society. The Government, in placing under the control of one Minister the hugely important areas of tourism, sport, recreation, local development, the drugs initiative and aspects of the Programme for Peace and Reconciliation, has recognised that all these are interrelated and through the focused approach to all of them by my Department, the Minister of State, Deputy Flood and myself, real progress can and is being made and I hope the Department can continue in this vein in the future.
In the aftermath of the welcome and sound endorsement by the electorate North and South of the Border of the Good Friday Agreement, this is a time for optimism and I am particularly delighted by the opportunities it presents to all the people of the island of Ireland for greater co-operation. I can assure Members I will not be found wanting in my efforts further to enhance the co-operation which already exists in the areas of tourism, sport and recreation. As I have said on numerous occasions, we are only working at a percentage of our potential. If we can get the political problems corrected, the whole country, not least the area I represent, will have an even greater economic boom than we are already enjoying.
I propose to go through the key areas of my Department's Estimate in the order in which the subheads appear on the briefing material provided to Members. The administrative budget is contained in subheads A1 to A9 and totals £4.216 million. While this is relatively small in the context of the overall size of my Department's Estimate, it funds the running costs of my Department. The 1998 Estimate of £4,216,000 shows an increase of £243,000 on the 1997 outturn, but included in this year's figure is a carrying forward of savings of £200,000 in 1997. The marginal increase of £43,000 in the administrative budget is mainly due to additional staffing costs and general pay increases in accordance with Partnership 2000.
The tourism sector is covered by subheads B1 and B2. One of the most striking features of Irish tourism in recent times has been the high growth rates achieved by the sector. Over the past ten years, Irish tourism has enjoyed astonishing success with visitor numbers and revenue increasing annually. The recorded statistics for the sector show that the number of overseas visitors has increased from 2.4 million in 1988 to over 5 million in 1997. Over the same period, total foreign exchange earnings have more than doubled from £841 million to a staggering figure of over £2 billion. In employment terms, tourism now supports an estimated 115,000 jobs, an increase of 53,700 since 1987.
The upward trend in visitor numbers, foreign revenue and employment vividly confirms that Irish tourism has been an outstanding success, one of the fastest growing sectors of the economy and, more importantly, a major contributor to Ireland's economic success. We must, however, avoid becoming complacent about the long track record of success and the excellent results achieved to date. As we face the remainder of the decade, the challenge to create further economic growth and employment remains crucial. There is an overwhelming need, therefore, to enhance our competitive position with rival destinations and, in so doing, ensure that we sustain the existing growth levels in performance and expand market share worldwide in the future.
The indications are that this will be yet another record year for overseas visitor numbers and revenue. The allocations for tourism marketing and promotion in this Estimate will allow Bord Fáilte to undertake an enhanced overseas and regional tourism marketing campaign designed to deliver an increase of 9 per cent in tourism foreign earnings.
Subhead B3, the overseas tourism marketing initiative, almost speaks for itself. If and when we have market Ireland as a whole I would like to base that on the OTMI model which brings together the tourism industry and the private sector. In 1998 it will receive Exchequer support amounting to £4.237 million and continues to be a singularly unique success. It has brought together the public sector tourism bodies and more than 50 commercial investors from the industry in a fruitful partnership and its carefully orchestrated advertising media campaigns in the British, USA, German and French markets have resulted in significant increases in tourism benefits. Furthermore, the industry's hands-on involvement, through its participation on the board and subcommittees of OTMI, has provided valuable assistance and input and has fostered a spirit of co-operation. This type of co-operative marketing effort is to be encouraged at all levels. When I met the committee recently I told them I was doing my best to ensure the A. D. Little report was implemented as much as possible; I am sure my predecessor did the same. In an industry such as this, the Government should give power to those within the industry because they know best how to run it. The Government will always be there to lend a hand but a gradual transfer must be the way for the future.
The special tourism marketing initiative is dealt with under subhead B4, a subhead to fund new initiatives. I propose that part of the £3.5 million allocated in the budget for tourism marketing initiatives under this subhead will be used by Bord Fáilte to fund a series of specific initiatives, directed at overseas marketing and regional campaigns. When I came into office I was concerned about spreading tourism among all the regions because there is inequality as between the east and west coasts, for example. This initiative was designed to do something about that. Bord Fáilte's proposals in this regard are currently being examined in my Department and while the final details have yet to be concluded I can say at this stage, that they will help to copperfasten the achievement of national growth targets. Bord Fáilte will also continue the programme of regional marketing which I began last year out of my concern that the benefits of tourism be equitably distributed throughout all regions. Also benefiting under the £3.5 million allocation are my millennium plan, called "The Party Starts Here" which I launched some months ago, and tourism marketing initiatives on special events, such as bringing the Ryder Cup to Ireland in 2005.
Subhead B5 is also self-explanatory. It includes a provision of £97,000 to cover currency exchange loss on certain ICC Bank foreign borrowing for capital investment in tourism facilities, beginning in 1981. The final payment of that figure is due this year. It was introduced to cope with the high exchange rates at that time. This is a concessionary loan scheme introduced in 1981 for tourism funds which were borrowed in a variety of foreign currencies and loans at fixed rates of interest. At end of April 1998, loans outstanding amounted to £275,000 which will be repaid in full by next month.
Subhead B6 relates to the Shannon Free Airport Development Company Limited. Shannon Development will continue to initiate and support tourism development as a key element of the achievement of overall economic growth throughout the mid-west region. In 1998 Shannon Development will get £1.054 million in grant aid to carry out this activity and will also receive capital from the Exchequer to complement the European Regional Development Fund funds to develop the tourism facilities within the region.
Subhead B7 deals with CERT. The total estimated Exchequer allocation to CERT for 1998 is £3.428 million and this is augmented by European Social Funds of £11.052 million, bringing the total allocation to £14.48 million. The company continues to play a vital role in the growth and development of the booming Irish tourism industry. We are looking forward to continuing to work with CERT. On a related subject which will probably be raised later in the meeting, we will have to look more seriously at training.
CERT expects to train more than 11,000 people for the industry in 1998. Under its three main measures it organises courses for the unemployed, young first time job seekers and those already working in the industry. While there is still evidence of staff and skills shortages in certain areas of the industry, these are in direct response to the levels of growth experienced - the industry is expanding at such a rapid rate that we are not able to keep up. While I do not want to be seen as discriminatory, tourists interacting with such people has been of huge benefit because they like to be served by Irish people. However, this is not always the case and we must look at that.
Last year I appointed a new CERT council which includes members who have a vast amount of knowledge and experience in all sectors of the industry. Under its new chairman, Mr. Eamon McKeon, who has many years experience in the hotel sector, the council will address the challenges facing the industry up to and beyond the millennium. I have full confidence in the chairm an and the board appointed.
Subhead B8 - the subhead for small business expansion loan scheme - is for £540,000. This is an important incentive for the development of tourism which was introduced in the 1994 budget. A £100 million loan fund was made available to small businesses in the manufacturing, tourism and international trade sectors of which £25 million was allocated for projects in the tourism sector. A Government interest subsidy of 3 per cent applied to loans under the scheme enabled borrowers to avail of loans at the rate of 6.75 per cent.
Subhead B9 is an EU support measure for small business - tourism - and includes an amount of £1.3 million. A subsidised loan scheme for small business was launched by the Minister for Enterprise and Employment in September 1995; £52 million or 25 per cent of the fund was reserved for the tourism sector fund administered by the four main banks. Loans were for a fixed term of seven years at a fixed interest rate of 6.5 per cent. The interest subsidy is jointly funded by the EU, the Exchequer and the banks. All funds were drawn down by 31 December 1996. The target of £52 million was exceeded, with a total of £57.7 million of the fund allocated to the tourism sector.
The St. Patrick's festival in 1998 was once again expanded and offered four days of free and accessible fun for everyone in a great celebration of our national identity. It attracted a record audience of 860,000, increased the level of participation and achieved national community involvement by 163 communities. The festival received overwhelmingly positive media coverage at home and overseas. I congratulate the festival committee on its wonderful work. The fireworks display at the Custom House was out of this world. It must have cost Aer Lingus a fortune but it was worth every penny because it was an investment for the future. After this year it marked Dublin as the place to be from here on in. This festival, with all its elements, marked the day Dublin really became a European capital city. By attracting visitors to Ireland during March and gaining positive coverage of Ireland celebrating at this time, the St. Patrick's festival makes an important contribution to the seasonality issue, showing Ireland as a great place to be whatever the weather or time of year.
From a tourism perspective, Ireland's millennium will be built around festivals and events in Ireland, with the hugely popular St. Patrick's festival playing a central role. The idea is simple, practical and far-reaching - to harness the talents and vision of some of Ireland's existing festivals and work with them, to link them together into a triumphant millennium celebration. The theme of the project is "The party starts here". These are my Department's millennium festival plans. The overall celebrations will be dealt with by a Cabinet subcommittee but these plans have already been launched by my Department. Derek Keogh, the former Chairman of Aer Rianta, will be in charge of that and it will be based around the St. Patrick's festival. We will not start anything new as 300 wonderful festivals are held annually nationwide. We will make sure we concentrate on the major festivals so that they will be given an enhanced profile over the coming years which they will be able to maintain for many years after the millennium. We set up a committee which is taking suggestions from all festival committees throughout the country as to what should be done.
I wish to refer to the regional tourism marketing initiative which was launched in January. It focuses on the promotion within the home market of short breaks in Ireland, with emphasis on the off peak season.
I now turn to the Estimates for sports and recreation. I am concerned as are all Deputies, about young people involved in swimming who have written about this matter. The IASA is the body to which I must give funding. I must wait for the Murphy report before I make any decision on funding for swimming. Perhaps, the IASA will not be the body to which I will be able to provide funding. I am at a loss about the position of swimming but I fully understand what the young people must put up with. An injunction was brought against the completion of the report. Every citizen has a right to bring an injunction and, unfortunately, I can do nothing but allow the court to proceed. The injunction has been withdrawn and the report has been completed. It is currently being examined by the Attorney General's office and as soon as I receive his advice I will make as much of it public as is possible.
However, the IASA may not be involved in funding unless I find out what it has done to put its house in order. I received correspondence but I want to make sure people are aware that is the position. The report will be available very shortly and I hope to resolve the matter over the next few weeks.
The funding available for current expenditure for sport has been significantly increased in 1998; there has been an increase of over 20 per cent on the 1997 Estimate provision. This increase in funding is enabling me, working closely with the Irish Sports Council, to support the strengthening of our national governing bodies of sport in terms of their administrative and organisational abilities. Well structured and well run governing bodies, working effectively and with clear and coherent development plans, are a prerequisite for a successful and thriving sports sector.
The Peace Agreement in Northern Ireland will provide an unprecedented opportunity to develop closer links to ensure that sport can be developed on an all-island basis and to our mutual benefit, North and South. Close and continuing contacts are already well established with the Sports Council for Northern Ireland across a broad range of areas. Two joint programmes are currently under way in cross Border co-operation - the first is Youth Sport Foyle, a pilot programme aimed at developing school sport, and the second is the development of leadership training in the area of recreation and sport.
It is my intention, in the context of the Peace Agreement, to accelerate and enhance the level of co-operation so that sport in Ireland can grow and develop in an environment of goodwill and spirit of friendship and shared commitment. The establishment of the sports council on a statutory basis is a key area of policy and the work being carried out and the development of new initiatives for the improvement of Irish sport will be greatly facilitated by having a dedicated statutory sports council in place. The necessary legislation is currently being prepared and in the meantime a number of key development and secretarial staff for the council are in the process of being recruited.
I will now deal with the sports capital programme operated by the Department. This important programme provides public funding towards the provision of sports facilities at national, regional and local level. It is the primary vehicle for promoting the development of sport and recreation facilities in Ireland. The programme was first introduced in the early 1970s and the current programme, which has operated since 1988, consists of two schemes. The recreational facilities scheme assists voluntary community organisations in the provision and improvement of recreational, leisure and community facilities. The maximum grant payable under this scheme is £50,000 but, given the limited funds available for allocation and the huge number of applications received, the average grant provided is about £10,000. The major facilities scheme is a multi-annual sports capital programme which assists the provision of major sports facilities at national, regional and local level. The scheme was first introduced in 1988 when the Government approved the establishment of regional and local sports centres at some 25 designated locations. The average grant under the scheme would be about £200,000.
The amount provided in the 1998 Estimates for the sports capital programme is £9 million, of which £3 million is in respect of the recreational facilities scheme and £6 million is in respect of the major facilities scheme. This new allocation represents a huge increase in the level of funding for the programme and will enable the Department to provide much needed assistance for the establishment and completion of sports facilities around the country. It will also provide much needed funds to the many voluntary and community groups throughout the country whose dedication and commitment in providing facilities must be recognised.
As announced in the budget, £20 million is being allocated to the development of Croke Park over a three year period. I am proposing an allocation of £7 million this year towards the project.
I recently announced the introduction of a new scheme of supports for Ireland's high performance players and athletes to be known as the international carding scheme. The details of this new scheme have been developed by the Irish Sports Council and the National Coaching and Training Centre in Limerick over the past 12 months in consultation with both the national governing bodies of sport and the athletes themselves. This scheme will replace the outstanding sportspersons grant scheme which was in operation in the Department of Education and Science for over ten years. The new scheme willconcentrate on four major categories in the development of a high performance player/athlete: junior, developmental, international class and world class. It is estimated that a total of 150 athletes will qualify under the scheme.
Having recently announced allocations of £3.6 million to the national governing bodies to assist their planned developments in 1998 and having obtained £1.6 million in the budget for certain schemes, I am pleased to announce that the international carding scheme will have a budget of £1 million in 1998. This represents a significant increase in direct funding to the athletes in terms of financial support and services and is double the amount allocated under the old scheme in 1997. The scheme operates in this way. If athletes are ranked between numbers one and three in the world in their sports - we have three athletes in this category - they will receive allocations of £24,000. There is a sliding scale and from there on the lower athletes are ranked. In addition to the funding, athletes receive medical and other support which was heretofore unknown. Any professional athlete will say that one of their worst fears is injury, because of the cost. They will now receive the grant and, by obtaining the carding system, they will eligible for free medical services such as physiotherapy and other services. I am pleased to say that the scheme compares favourably with similar schemes in operation in other European countries. In the UK a grant of £25,000 is available, but one would need to be Superman to receive it because of the criteria attached to it. Our grant is £24,000, whereas Germany gives £15,000 and Australia and New Zealand £10,000. We probably offer one of the highest levels of grant aid for high performance athletes as a result of the carding scheme. This new initiative will form an integral part of the Government's overall policy to develop a more focused sports strategy in Ireland, particularly in the area of high performance.
I note a delegation from the committee is to visit the National Coaching and Training Centre in Limerick. Since its inception it has played a central role in the overall development of sport in Ireland. The centre represents a centre of excellence within Irish sport. For example, it has developed infrastructures in coaching and coach education, player/athlete support services, sports information services, training and residential facilities and technical services. The NCTC has also been a vital component of the development of many new initiatives within the sports area. For example, it has been to the fore in developing sports specific criteria with the national governing bodies of sports in the context of the new international carding scheme for high performance players/athletes and assisting the national governing bodies in the development of long-term planning, including both player/athlete supportsystems and coaching and coach educationsystems.
I understand that arising from the recent appearance of Mr. John Treacy, chairman of the Irish Sports Council, before the committee, members intend visiting the NCTC tomorrow. I appreciate that the committee's main concern is with issues relating to the education and certification of coaches. In this context I am sure it will be impressed with the work the NCTC has undertaken over recent years in the development of a national coaching and development programme. I am sure committee members will find their visit to Limerick most informative and that they will be impressed by the operation and work of the NCTC. It has overnight facilities for teams, who can spend months there if they so wish. The Irish rugby or soccer team could spend a month training there. The facilities are phenomenal and it is good that there is such a centre of excellence, although I do not believe it is well known that it exists. I am sure those who visit it tomorrow will be pleased with it.
Responsibility for local development in my Department rests with the Minister of State, Deputy Flood, who will speak on that subject now.