Oireachtas Joint and Select Committees

Wednesday, 31 May 2017

Joint Oireachtas Committee on Transport, Tourism and Sport

Implications of Brexit for Transport, Tourism and Sport: Discussion

9:00 am

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail) | Oireachtas source

I thank the Minister, the Minister of State and their officials for coming before the committee. They are right in that tourism is very exposed to Brexit. It is the largest indigenous industry in our country, with one in nine people employed in the sector. The number of people coming from Britain is quite important. I have great concern about the urgency and priority that the Department is affording this issue. The Ministers speak about maintaining a liberalised aviation regime. That is something I will come back to with the Minister, Deputy Ross. Of trips to the UK, 63% will not happen with an alternative mode of transport if the liberalised aviation open skies policy is not maintained. That is quite serious. There are figures for the first quarter of this year indicating an 11% reduction in the number of visitors coming from Britain. In 2016, £1.3 billion was spent in our economy, with £1 billion of this coming directly from the UK.

I will ask a number of questions about what exactly has been done. The leadership group will meet again in the coming weeks but when was that group established and what exactly is its purpose? What is the configuration of the group? The Minister is aware that the Irish Tourism Industry Confederation published a document on its concerns about tourism, highlighting what the Government has done in other areas, including with Bord Bia, which has a €150 million emergency fund and €2 million for additional funding and strategies to support the Irish food and drinks industry. There has also been a market identification programme, the doubling of one-to-one mentoring and an increase in the number of market and consumer research insight programmes and more trade events. Enterprise Ireland has €3 million in additional funding, with 39 additional staff, although I note from yesterday's paper that these are not yet nearly filled. There is an export finance initiative, increased trade missions, market diversification programmes, nine additional IDA Ireland staff and increased promotion.

When we look at Tourism Ireland, we see it has no additional staff, no real increase in budgets and no enterprise or Brexit support programmes. Is the Minister of State serious about the challenges facing this crucial sector of our economy? I acknowledge good decisions were taken by the previous Government on the abolition of the travel tax and the reduction of VAT. In the Minister of State's opening remarks, he identified the retention of the 9% VAT rate as a key proposal and criticised certain parties for not supporting it. We support it, but I ask him to confirm it will be maintained in the upcoming budget. Clarification and certainty for the industry are very important.

The committee agreed to forgo the pre-legislative scrutiny on legislation to help with the World Cup bid, which is very important. It is an all-Ireland bid. Will the Minister of State indicate whether the absence of an Executive in the North is having a negative effect on it? While it is not totally related to Brexit, will the Minister of State comment on the current saga in the boxing association, given it is the number one or two story in the news agenda today?

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