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 Patrick O'DonovanPatrick O'Donovan (Limerick County, Fine Gael) | Oireachtas source

The Deputy has omitted to accept that Tourism Ireland is a Good Friday Agreement body. We do not work in a vacuum. We have to be conscious that whatever the Southern Government does, it has to be reciprocated. We do not have a functioning Administration in Northern Ireland. It is a major problem. In its absence, I brought legislation through the committee to provide for how Fáilte Ireland can deliver capital works. The Deputy has not acknowledged that. He might have the opportunity to acknowledge it. Fáilte Ireland is in the game of trying to make sure our domestic business is maintained but, more importantly, that the visitor experience is being enhanced.

The Deputy asked about a commitment on the 9% VAT rate. I have said it to Deputy Fitzpatrick and I will say it again that we are not the Department of Finance. That Department has competing demands. The Minister for Finance and I believe the 9% VAT rate is necessary in terms of the continuing development of the tourism product, particularly in provincial Ireland. The Deputy knows as well as I do that there are competing demands for Exchequer funds. There is also the realisation that in Dublin in particular the industry is doing exceptionally well. We would love to have a situation where we could regionalise VAT but that cannot happen. Our commitment as a Department is to see its continuation but we are not the Department of Finance.

It is fair to point out that the €36 million from our Department, which is an increase year on year, into a fund for Tourism Ireland is by no means insignificant. In the absence of a functioning Administration in Northern Ireland, we are engaging with the Department for Culture, Media and Sport in London which has tourism and sport under its remit. When there is a functioning Administration in Northern Ireland, I would love to see a realisation that it is in the island of Ireland's interest for the fund to be increased. We cannot work in a silo any more than Waterways Ireland can. The Deputy knows that. Tourism Ireland is covered by that. It is not in any way an insignificant amount of money.

The Deputy asked what we were doing in the emerging markets. I responded to Senator Feighan, Deputy Fitzpatrick and Deputy Troy on the presence Tourism Ireland can successfully demonstrate through the market return from the North American, northern European and emerging markets. We have a very strong presence there which I know because I have been there. The figures speak for themselves. We cannot run away from the fact the currency in the United Kingdom has devalued by 11%. We also know from other markets that it is not unique to Ireland. Other eurozone countries are also experiencing drops in markets. Destinations such as those of the new and emerging markets in North America, Australia and New Zealand also have concerns about British overseas tourists who represent a very significant portion. We will continue to do what we have done since the Brexit referendum.

It is not true we do not have a Brexit leadership group. The tourism leadership group predates my time and that of the Minister, Deputy Ross, in the Department. It captures all the issues and was set up at a time when tourism in Ireland was banjaxed and there was no investment, leadership, marketing, branding or anything when people walked off the stage.

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