Jimmy Deenihan
Ceist:56 Mr. Deenihan asked the Minister for Arts, Sport and Tourism the actions he intends to take to restore the competitiveness of tourism here; and if he will make a statement on the matter. [31546/04]
Amharc ar fhreagraTourism Industry.
Ceisteanna (30)
Freagraí ó Béal (3 píosaí cainte)
There is widespread agreement that the main challenge for our tourism industry is to restore the competitiveness that Ireland enjoyed in the boom years of the 1990s. I have outlined clearly on more than a few occasions my views that it must be addressed in a number of ways: first, through a concerted focus by the industry on improving its capability and performance in areas such as quality assurance, productivity enhancement, cost and yield management, use of new information and communication technologies and adoption of best human resource practices — Fáilte Ireland is working to support the industry in this regard; second, through attractive price and discount offers, imaginatively packaged and marketed to the customer, of which there are many recent examples; and, third, with the Government facilitating the development of the tourism industry through a range of macro-economic and other policies that will enhance the business environment for the sector, in particular, by improving competition and moderating taxes and charges for public services.
Competitiveness is a function of the overall Irish tourism experience for customers relative to other competing locations. As I indicated previously, my contribution towards the restoration of competitiveness is to see a coherent tourism action plan implemented effectively in co-operation with all the major players. To this end, I have established a high level implementation group to advise and assist in driving forward and monitoring the comprehensive action plan set out in the report of the tourism review group. I received the first progress report from the implementation group at the end of August. Few people involved in the industry were surprised to learn that the group found that strong areas of concern remain in relation to the competitiveness and value for money available in wide segments of Irish tourism.
On 17 November last, at my invitation, the implementation group organised the first annual forum of the tourism industry, one of the recommendations arising from the New Horizons report. The purpose of the forum was to report to the industry on progress to date on the implementation of the new tourism strategy and to consider developments in the tourism sector. It also provided representatives of the industry with the opportunity to advise the implementation group and the Government of its views on the current status of the industry.
One of the key outcomes of the forum was the reaffirmation that, collectively, we must get the industry back on a sustained course of renewed growth to achieve the ambitious targets that have been set by the review group. I understand the level of debate and participation in the working groups was excellent and I believe there is a renewed confidence and commitment to take the steps necessary to further develop the sector and to address the challenges that lie ahead.
To date in 2004, we have seen an increase of just 2.8% in tourist numbers — the expected increase was approximately 4% to 5% — and tourist numbers are expected to double by 2011, but there must be something wrong if the number of tourists coming here from the United Kingdom is down 7% over the September figures for 2003. It is not only those in the tourism industry who must become competitive. The tourism industry generally is very competitive but the Government, through its indirect and stealth taxes, is forcing up prices and making Ireland less competitive. For example, Ireland has the second highest VAT rate on accommodation in the eurozone, at 13.5%. It has the second highest VAT rate on meals in the eurozone. Excise duty on wine is the highest in the eurozone and excise duty on sparkling wine is the highest in the world. We have the second highest beer excise duty in Europe behind Finland and it is approximately ten times the Spanish level. Stealth taxes, such as ESB charges and other energy costs, have increased by approximately 30% in the past four years. Because of the underfunding of local authorities, those in the tourism industry also have to pay high commercial rates, water and refuse charges.
Will the Minister agree that the reasons for upward pressure on pricing in the tourism industry are mainly Government taxes and Government inaction in this area? I accept the Minister has done his bit by setting up the tourism review group but he must admit that the reason for the upward spiral in prices and the lack of competitiveness is our taxation system as it applies to the tourism industry.
As I said, it is the function of everybody to tackle the competitiveness issue and it is not today or yesterday that I highlighted the need for our industry to give value for money. I am pleased that the industry has responded in several respects. Among the main contributors to inflation in the past five years have been restaurants and pubs, alcohol and tobacco, recreation and culture, and food and non-alcoholic beverages. The average price of Irish goods and services has increased well beyond the increases experienced by our trading partners. Value for money for overseas holiday visitors in terms of satisfaction has declined by approximately 22% over three years. This is due, primarily, to sharp drops in British and North American perceptions.
What should be stressed in response to Deputy Deenihan's charges against the Government is that we have a relatively high wage, low tax economy in terms of income tax. There is a difficulty with the value of the euro against the dollar and sterling. The US dollar has declined against the euro and, in tandem, the euro has strengthened against both sterling and the dollar over the same period.
We did not experience the growth we targeted for the year in the order of 4%. However, in a year when, internationally, experiences were not great in the industry, it is heartening that our share of the market increased by 2% plus. Increased access from the Continent and, it is hoped, the United States of America, will drive the figures upwards. That is something which, as the Deputy is aware, the Government is examining carefully. In that context, the decision by Ryanair to add nine routes from Shannon is particularly welcome and I look forward to improving access from the United States of America to further improve the figures. I believe we will achieve the target of increasing the number of visitors between now and 2012 from 6.1 million to 10 million.
Football Association of Ireland.
Ceisteanna (31)
Jack Wall
Ceist:57 Mr. Wall asked the Minister for Arts, Sport and Tourism the discussions he is engaged in with the Football Association of Ireland regarding its future and the appointment of a chief executive; if funding from the Government is in jeopardy as a result of the difficulties in the organisation; and if he will make a statement on the matter. [31548/04]
Amharc ar fhreagraFreagraí ó Béal (3 píosaí cainte)
I met officials of the Football Association of Ireland on 3 November 2004 arising from the recent developments within the FAI which resulted in the departure of the chief executive officer of the association. I have had no further meetings with the FAI since then.
At the meeting, I reiterated to the FAI officials in attendance that the Government looks to the association to become a dependable, effective and efficient organisation capable of accepting and discharging its responsibilities in regard to projects to which the Government has committed substantial support from public funds. These include the redevelopment of Lansdowne Road stadium, the development of a sports campus at Abbotstown, funding under the sports capital programme for soccer clubs at national, regional and local levels and the funding provided to the association by the Irish Sports Council.
I fully support the delivery of the reform agenda mapped out in the Genesis report and I have indicated to the FAI that the positions of chief executive and director of finance should be publicly advertised by the end of this year and that the terms of reference for both these posts be agreed beforehand by the joint Sports Council and the FAI group which oversees the implementation of the Genesis report. I welcome the confirmation by the FAI that it intends to advertise these positions by the end of the year.
No direct funding is made available by my Department to the FAI. Funding is provided, however, under my Department's sport capital programme to clubs affiliated to the FAI towards the development of soccer facilities, and this arrangement will continue.
The Irish Sports Council provides funding in respect of programme costs and I understand that already this year an amount of €1.5 million has been paid out in respect of the implementation of the technical development plan of the FAI. The Irish Sports Council has indicated that an amount of €300,000, which was set aside for the implementation of the Genesis recommendations, will not be paid, while the Irish Sports Council will decide at its meeting on 21 December next whether to pay an outstanding balance of €200,000 in respect of the technical development plan.
I look forward to working closely with the FAI in the continued development of the game of soccer, particularly in the many infrastructural projects which are being developed and which it is hoped will have a major positive impact on Irish soccer.
The Minister will agree we should be discussing the development of soccer and its benefits to our youth, not the administrative side of the game. However, it must be ensured a proper administrative structure will be in place. Has the Minister received feedback from his representative on the FAI-Irish Sports Council liaison committee regarding the date on which the advertisements for the two positions will be placed or is it still up in the air?
I worry when statements are made that funding such as the €200,000 due to the FAI in this instance could be withheld. Who will lose out? The funding is for technical development. Therefore, it will be used to increase staff numbers and train young people in schools. They will lose out rather than the FAI. Perhaps the Minister will correct my interpretation of technical development.
I agree the Genesis report must be implemented and that we must get away from discussing administration and officials to discuss development of the game. However, we must not reach a point where money is withheld from a sector in which youngsters can better themselves. What is the Minister's feeling on this? Has he had feedback from the Irish Sports Council regarding this funding? Will the money be allocated, given that the two positions will be advertised, according to the FAI president, Milo Corcoran?
With regard to the Deputy's first question, I received a letter from the president of the FAI to the effect that the two positions of chief executive officer and financial director would be advertised in accordance with the Government's wishes by year end. I accept that letter in good faith and I am satisfied the FAI will advertise both positions before year end.
With regard to the funding withheld by the Irish Sports Council, €300,000 related to the implementation of the Genesis report while €200,000 related to implementation of the technical development plan. The council made that decision because it is concerned, as am I, that the Genesis report should be implemented at the earliest date. The report has been available for a considerable period and it is time to move to implement it.
The joint Irish Sports Council-FAI liaison group will meet next Monday, 6 December. It will finalise the arrangements for the advertisement of the posts within the timeframe set by the Government. The group must also put in place the necessary arrangements for conducting the selection process, for example, identifying a recruitment agency and the members of the selection committee. I will be available to meet the FAI following the meeting of the liaison group, should such a meeting be deemed necessary.
No direct funding is made available by my Department to the FAI but funding is channelled by my Department through other sources, including the Irish Sports Council and the sports capital programme. The council is responsible for the funding of the FAI in respect of programme activities and set aside €2 million this year for distribution to it, of which €1.5 million has been paid in respect of the organisation's technical development plan. The balance comprises €300,000 for implementation of the Genesis report recommendations. The council has indicated that payment of this amount was suspended. The question of the balance of €200,000 will be considered at its next meeting on 21 December.
National Theatre.
Ceisteanna (32)
Jimmy Deenihan
Ceist:58 Mr. Deenihan asked the Minister for Arts, Sport and Tourism if the Office of Public Works has recommended a site for the new national theatre; and if an announcement will be made by the Government before the end of 2004 on the new location. [31547/04]
Amharc ar fhreagraFreagraí ó Béal (6 píosaí cainte)
I have given a commitment that the Government will specify its choice of location for the development of the Abbey Theatre before the end of the theatre's centenary year. I expect to honour this commitment. The Office of Public Works has completed its evaluation of potentially suitable city centre locations and indicated its preferred option. I intend to convey the OPW recommendation to the Cabinet in the next week or so, following which I will make an announcement. Out of courtesy to my Cabinet colleagues, the Deputy will understand I cannot comment further on this issue in advance of a Government decision.
I welcome the Minister's historic and important announcement. I acknowledge that he made a commitment in this regard following Opposition pressure and stuck to it. It is fitting that the announcement should be made in the Abbey Theatre's centenary year. There is no better way to celebrate its centenary than by making the announcement on its new location. I hope the Coláiste Mhuire site will be selected because it is suitable. The Dublin Writers Museum and the Hugh Lane Art Gallery are located in Parnell Square and the Gate Theatre is nearby. There would be a synergy between both the visual and the performing arts and it would be a good location.
I also acknowledge the Minister's allocation of €2 million to the Abbey Theatre which has run into debt. That is also good news for it because it did not generate the amount it had hoped through sponsorship. Given that the Minister will shortly make a recommendation on the site to the Cabinet, will he give a commitment that work on the project will commence in 2005 or 2006? If it cannot, when does the Minister expect it to commence and be completed? In the meantime, will the theatre be kept open to continue the Abbey's current programme?
The Abbey will be kept open pending completion of work on a new theatre. We are at the point of selecting the site for the new national theatre and I expect to be in a position to go to the Government within the next week or so to obtain its decision which I have promised will be conveyed to the Abbey Theatre board and the public before the end of the year, given that this is the centenary of the theatre. I acknowledge the support of Deputies Deenihan and Wall and other Opposition Deputies for the construction of a new theatre.
Despite the fact that this is one of the most creative and imaginative generations of Irish people, there is no signature building giving expression to that creativity and imagination. Therefore, the new theatre is of pivotal importance, not just in terms of the continuation of the Abbey but of giving expression through public architecture of that creativity and imagination to realise the ambition of providing the people with a new national theatre. This is something which has general support and I look forward to the Government's decision.
I am not in a position to state when building work might commence. However, I hope to make the announcement on the site prior to the end of the year in order to mark the centenary of the Abbey and as a matter of necessity. I hope we can then progress the construction of the new theatre at the earliest possible opportunity. I will not be found wanting in that regard.
Will provision be made in the budget or has it already been made in the Estimates to provide funding for the new theatre and allow the preparatory work to commence?
No funding has been provided in the Estimates for 2005 for the construction of a new theatre. Obviously, it is something which will require much planning. I would be astounded if the Minister for Finance, Deputy Cowen, was to surprise me this afternoon in the budget.
Is there funding for design work and so on?