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Sports Capital Programme Applications

Dáil Éireann Debate, Tuesday - 27 November 2012

Tuesday, 27 November 2012

Ceisteanna (99, 102, 130, 132, 141, 152, 154, 163, 164, 722, 725)

Denis Naughten

Ceist:

99. Deputy Denis Naughten asked the Minister for Transport, Tourism and Sport if he will introduce a second phase of the sport capital programme 2012; and if he will make a statement on the matter. [52621/12]

Amharc ar fhreagra

Martin Ferris

Ceist:

102. Deputy Martin Ferris asked the Minister for Transport, Tourism and Sport if his attention has been drawn to the fact that participation in sport has increased from 34% in 2009 to 40% in 2012 and that due to increased concerns around health and obesity, his views on whether funding to community sporting clubs and organisations should be ringfenced; and if he will make a statement on the matter. [52688/12]

Amharc ar fhreagra

Sandra McLellan

Ceist:

130. Deputy Sandra McLellan asked the Minister for Transport, Tourism and Sport the efforts he has made to secure funding for sports in view of cuts in spending in this area; and if he will make a statement on the matter. [52684/12]

Amharc ar fhreagra

Derek Keating

Ceist:

132. Deputy Derek Keating asked the Minister for Transport, Tourism and Sport if he will provide an update on the sports capital programme and the number of applications received; and if he will make a statement on the matter. [52679/12]

Amharc ar fhreagra

Mary Lou McDonald

Ceist:

141. Deputy Mary Lou McDonald asked the Minister for Transport, Tourism and Sport in view of the fact that he has received applications to the sports capital programme totalling €369 million and his budget is €30 million, if he plans to request additional funding to make up the shortfall; and if he will make a statement on the matter. [52687/12]

Amharc ar fhreagra

Sandra McLellan

Ceist:

152. Deputy Sandra McLellan asked the Minister for Transport, Tourism and Sport the efforts he has made to ensure that the sports capital programme will run in 2013; and if he will make a statement on the matter. [52685/12]

Amharc ar fhreagra

Seán Crowe

Ceist:

154. Deputy Seán Crowe asked the Minister for Transport, Tourism and Sport his views on whether sporting bodies should be allowed to register as charities; his plans to introduce legislation to this effect; his views on whether persons who make such donations should be able to claim a tax break; and if he will make a statement on the matter. [52686/12]

Amharc ar fhreagra

Anthony Lawlor

Ceist:

163. Deputy Anthony Lawlor asked the Minister for Transport, Tourism and Sport if he will provide an update on the sports capital programme; and if he will make a statement on the matter. [52513/12]

Amharc ar fhreagra

Pat Deering

Ceist:

164. Deputy Pat Deering asked the Minister for Transport, Tourism and Sport if he will provide an update on the sports capital programme; and if he will make a statement on the matter. [52502/12]

Amharc ar fhreagra

Derek Keating

Ceist:

722. Deputy Derek Keating asked the Minister for Transport, Tourism and Sport if he will provide an update on the sports capital programme; and if he will make a statement on the matter. [52590/12]

Amharc ar fhreagra

Alan Farrell

Ceist:

725. Deputy Alan Farrell asked the Minister for Transport, Tourism and Sport if he will provide an update on the Sports Capital Grants for 2012; when an announcement will be made; if there will be an earlier application date set for 2013 due to the large volume of applicants in 2012; the other supports that will be provided to sporting clubs outside of this grant system; and if he will make a statement on the matter. [52725/12]

Amharc ar fhreagra

Freagraí ó Béal (33 píosaí cainte)

With the agreement of the House I wish to take Questions Nos. 99, 102, 130, 132, 141, 152, 154, 163, 164, 722 and 725 together.

Can we get the list of the questions proposed to be taken together circulated?

All the other Deputies have questions down, obviously.

These questions relate to this year's sports capital programme and any future such programmes. The question is whether there should be changes to the taxation regime to support sporting organisations and clubs. The sports capital programme is an area delegated to the Minister of State, Deputy Ring. Deputies will be aware that the Department has received 2,170 applications for funding under the 2012 sports capital programme, seeking €229 million in funding for projects with a total value of €374 million. This is the largest number of applications ever received under the programme. I have approval from the Minister for Public Expenditure and Reform to allocate €30 million. I believe this shows the value the Government places on sport. Approximately €26 million of this amount has been earmarked for local projects, including community sports clubs and organisations. Departmental officials are processing all applications and this process is almost complete. I expect to be able to announce the list of successful applicants later this year.

The Government has also committed to a further programme during its lifetime. When the current programme is finished, with the Minister of State, Deputy Ring, I will examine the successes and failures of the current round of applications. As the 2012 process is unfolding, one aspect of particular concern to me and the Minister of State is the high number of ineligible applications. In some counties assessed to date the majority of applications have been ineligible. In designing the next scheme we will need to take account of that. I note that the Irish Sports Council's sport monitor report for 2011 shows that active participation in sport increased from 34% in 2009 to 46% in 2011 among adults. The 2012 sports capital grants will improve facilities in every county and provide increased opportunities for more people to engage in sport to the best of their ability.

With regard to wider supports for sporting organisations, the Deputies may be aware that the Revenue Commissioners have a scheme that provides tax relief for donations to certain sports bodies. It is important that sporting organisations can secure alternative sources of investment, including private donations. The current tax relief scheme for donations to sporting organisations is restrictive because it applies only to donations for capital purposes. Taxation issues, including the amendment or introduction of tax relief schemes, are a matter for the Minister for Finance. However, I wrote to the Minister for Finance in October outlining possible amendments to existing tax relief schemes which would allow relief for non-capital donations to sporting organisations as well.

On top of the commitment and the funding sought, amounting to approximately €220 million, sports organisations have given a commitment to spend up to €145 million of capital to get these projects off the ground. In light of this and the assessed return carried out by the Department of Transport, Tourism and Sport and the Department of Finance, will the Minister consider increasing the number of grant approvals from the current projection of €30 million?

It could be increased to €90 million worth of commitments and the net cost to the taxpayer would still be the initial commitment of €30 million. In the light of the potential return and given the potential to untap capital lying in dormant bank accounts, will the Minister consider facilitating this proposal which could result in the creation of approximately 2,000 jobs in communities which are struggling owing to the number of people therein on the live register? I am sure if the work is done by a local person, it will result in an additional benefit to local clubs.

Unfortunately, €30 million is the amount sanctioned by the Department of Public Expenditure and Reform. We have also agreed with the troika spending ceilings which are set in law. As such, any additional sum would have to come from another area of my budget and that is not something I can do now. As the Deputy correctly said, clubs making applications have offered up to €145 million to match funding provided by the Government. However, one of the reasons a large number of applications have been deemed ineligible is clubs have not been able to produce evidence of having the funding required - 15%.

I will call first on the Deputies who have tabled these questions and then come back to other Deputies if there is time remaining.

Sports clubs provide a valuable outlet and are crucial in the fight against obesity. Sports organisations embedded in communities are central to ensuring the well-being of towns and villages and crucial actors in the production of healthy communities. The Minister has received applications for funding under the sports capital programme totalling €369 million. His budget is €30 million. How does he propose to meet the shortfall? Also, will he liaise with his counterparts in the Departments of Health and Education and Skills to produce a more integrated approach to tackling obesity?

Funding has been provided for two rounds of the sports capital programme. It is proposed to have a second round during the lifetime of the Government which will allow organisations that do not receive funding on this occasion to-----

When will the second round be provided for?

In 2015. However, we will have to examine at a later date whether it will be possible to bring it forward. I cannot make promises at this stage. The Minister of State, Deputy Michael Ring, has been in contact with other Departments. While sports funding is provided in the main by the Department of Transport, Tourism and Sport, the Departments of Health, Education and Skills and the Environment, Heritage and Local Government also provide funding. The only concern we would have, particularly at a time when budgets are constrained, is that organisations, rather than offering to share the cost, may opt to pass it on. However, the Minister of State is investigating the matter.

It is important to acknowledge that, despite prevailing economic and difficult circumstances, the Government has resumed the sports capital funding programme, which is an indication of its recognition of the need to support sports organisations in all codes, particularly organisations in the voluntary sector which are struggling. I am sure the Minister is aware of the great dependency of many of these organisations which are starved of funding. Those working in the voluntary sector are engaged in preventive work in tackling obesity, low self-esteem and depression among young people. It is hoped the Government will in this and future rounds of the sports capital programme provide a greater proportion of funding for small local voluntary organisations in all sports codes, rather than give a disproportionate amount to the larger organisations which have been surviving adequately for many years. I hope the Government will recognise and identify the need for funding at local and community level because of the special, valuable and preventive work the organisations and volunteers concerned are doing.

I thank Deputy Keating for his comments. I was delighted to see sport featuring so strongly in a leaflet delivered recently by the Deputy to his constituents - he and I are neighbours.

Of the €30 million in the programme, €26 million is going to local clubs, including local soccer clubs, GAA clubs, community organisations and so forth, and only €4 million is going to regional projects. There is separate funding for the sports campus and national projects. It is the policy of Government to favour local grants heavily over regional and national grants, although there is also a strong argument for the opposite approach. Certainly, people in local communities very much favour spreading the funds as widely as possible to different sporting organisations, but often that means that facilities are duplicated, with two clubs not very far apart from one another getting the same facilities. The national governing bodies argue that we should split the money the other way and put more into regional and national facilities, which is an area in which we fall down quite badly as a country. However, for now, the split is €26 million to local clubs and €4 million to regional organisations.

I welcome the sports capital programme. I have been involved in a number of clubs in my own local area which have benefited from capital grants over the years. I wish to draw the Minister's attention to the fact that some of the clubs that submitted applications might not be able to raise the required 15% of funding themselves but might be in a position to provide labour to that value in lieu of finance. I ask the Minister to consider that as part of the programme.

I am sure Deputy Lawlor will find that such applications would be invalid.

The scheme currently requires that clubs provide 15% of their own funding and that they produce evidence that they have that funding in place. The percentage required for RAPID and CLÁR areas is lower; I cannot remember the exact figure, but I believe it is 5%. The scheme does not allow labour or payment-in-kind to be counted as a contribution, although that is certainly something we could take into account in future programmes. However, it is not possible to modify the scheme after it has already been advertised because there are clubs which might have applied had the rules been different. We cannot change the rules after they have been advertised and must stick to the criteria laid down.

I welcome the sports capital programme. I come from the small county of Carlow, which was always left to one side by Deputy Dooley's party and largely forgotten about when it came to sports grants. The Minister has indicated that the criteria for the awarding of grants will be transparent on this occasion and I look forward to a decent and fair round of allocations.

We will publish the criteria for the Deputy.

There is no need as I am well aware of the criteria.

Due to the fact that Carlow was treated poorly in the past there are a large number of applications from clubs in that county, and that is also true of other counties. How will the clubs and organisations which do not meet the criteria on this occasion be informed of that fact? Will information be provided before the grants are allocated so that clubs and organisations know where they stand? This is important as some of the clubs may be able to source funding from elsewhere in the event of not being awarded a grant. What is the timescale for notification of the awarding of grants? Will it be before or after the budget or even in this calendar year? I also wish to know the timescale for spending the money once it has been allocated.

Notification of grants will issue after the budget this year and clubs will have two years to draw down the funds. The amount each county should get has been worked out on a per capita basis and the funds awarded to each county will be within a band of 90% to 120% of that amount, with counties that did poorly in the past being closer to 120% and those that did very well in the past closer to 90%. In no case will any county deviate from the 90% to 120% band.

I thank the Minister for his response and welcome the sports capital grant programme, which has not operated since 2008. Notwithstanding the current economic circumstances, I understand another round of grants is proposed, which I welcome.

It should be noted that the allocations given to local sporting organisations can be invested to create jobs locally. I welcome the allocation and look forward to getting to grips with the announcement. I thank the Minister for his response.

Does the Minister wish to respond?

There was no question; the Deputy was just making a contribution.

I ask the Leas-Cheann Comhairle to permit me to raise a brief supplementary question.

We have a few minutes left and I will allow brief contributions. Deputy Naughten was the first to proffer and I must call on him next.

Does the Minister agree that increasing the allocation to €90 million would have a net cost to the Exchequer of €30 million when VAT, PRSI and other taxes are taken into account? Increasing the level of grant would produce a considerable bonus in terms of local employment. Does he also agree that he could approve up to 40% of the grants, which would cover nearly all of the eligible applicants, based on that type of return for the Exchequer?

I welcome the allocation of €30 million, although it is a pity that we have to wait until 2015 because the gap is huge. Has a decision been made to sell Lotto and will the new contract include further funding for sports projects? Can the windfall, or whatever one wants to call it, be ring-fenced for capital projects that would otherwise miss out?

I thank the Minister for his detailed and comprehensive reply. Given the difficult and restrictive situation with which the Government must contend, many sporting organisations across all codes have come together with joint applications for shared facilities and arrangements. Will the Minister look favourably on those who share resources made available through capital grant funding?

Everyone in the House is aware that the number of applications is at a record level due to the current shortage of funds. Organisations across the country have invested significant amounts of money over the past 20 years. I support Deputy Naughten in his appeal to the Government. This is an investment which offers incredible value. Alcohol abuse costs €3 billion and if we can reduce that by one third the State could save €1 billion. Sport plays a major rule in addressing alcohol abuse among children who get involved in activities. We underestimate the importance of sports to children, who would be lost without it.

I support the Minister in his proposal to amend the existing tax relief schemes. Has he approached private companies, particularly international corporations operating in Ireland, to encourage similar supports? For example, Coca Cola has a community fund to support clubs and community activities that promote sporting activities in their areas.

Will the Minister ask the Minister for Arts, Heritage and the Gaeltacht to publish his diary for the several months since the applications were received?

I cannot confirm Deputy Naughten's figures but the net cost would be higher than the gross cost when PRSI and VAT are included. Of course, one needs to have the money in the first place because it has to be spent before VAT and PRSI can be recouped. Bear in mind that when €30 million is allocated on the expenditure side the amount returned in VAT and PRSI is already counted on the revenue side.

The Lotto franchise is a matter for the Minister for Public Expenditure and Reform but I can advise Deputy Ellis that the Government has decided to sell the franchise. Most of the money earned from the sale will be invested in the new children's hospital, assuming it receives planning permission.

In regard to Deputy Keating's question, the scheme sets out specific criteria where applications come from a number of organisations working together or with a local authority, and they will score higher if they do so.

If, for example, a soccer club and a GAA club got together, with or without the local authority, they would get bonus points in the scoring system.

In response to Deputy Murphy's question, I have approached some private companies and individuals, largely with regard to funding projects, at the sports campus or coaching programmes and so on, but I have not had much success on that yet. However, I am still working on that. With regard to Deputy Dooley's question, I am sure if he writes to the Minister of State, Deputy Ring, he will be happy to respond to him.

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