Jerry Cowley (Mayo, Independent)

I thank the Minister for his comprehensive reply. Given that one in 12 people is employed in the tourism sector, tourism is not a part of the economic debate in the same way as farming and fishing, for example, as it should be. Places like Swinford, Kilkelly, Achill, Mulranny, Newport, Blacksod and Charlestown depend on tourism, but they are not getting their fair share of the visitors to the west. As the Minister said, the poor access to such places is caused by a lack of proper infrastructure. Difficulties have been caused by the failure to develop Knock Airport which is predicted to receive 400,000 visitors this year. By contrast, Dublin and Cork airports, which are totally congested, receive millions of visitors each year. Perhaps one could solve many problems by building the proposed second terminal at Knock Airport.

The west is not getting enough visitors because of bad roads and poor air access. The tourism operational programmes have taken account of the massive problem of seasonality in the west, but they have not worked because of the poor access to that region. There is a vicious circle of poor access, increasing seasonality and a decrease in bed nights.

I am sure the Minister agrees that the west is very suitable for major tourism products such as angling, walking, golfing and other outdoor activities, but there has been a decline of 20% in the number of bed nights accruing from such product areas since 1999. People have been unable to invest in tourism products for that reason. We cannot be competitive in the tourism market because there has been a lack of investment. We have failed to develop the tourism product to the extent we should have because of the problem of seasonality. We cannot compete for that reason. The vicious circle continues to exist.

Many tourism businesses in the west, other than in Westport, have been forced to close. Many others are hanging on but may have to go out of business. They face the same insurance expenses, wage costs and heating bills as businesses on O'Connell Street in Dublin. Tourism is not sustainable in the west. Will the Minister outline what can be done? Many tourism providers were unable to apply for the earlier form of the current national product development scheme because the bar was set too high.

What can the Minister do? He can lobby the Minister for Finance for a review of the VAT obligation on small tourism operators. Such a review would be a step in the right direction. I favour the introduction of some form of tax incentive scheme, which would benefit people who want to reinvest in the tourism product they offer. Will the Minister lobby the Minister for Finance for such a scheme which is needed if we are to prevent businesses from closing? Some 900 of the approximately 4,000 manufacturing jobs in County Mayo are provided by Allergan in Westport, but 300 of them have been lost. What is left? We are depending on tourism because farming is in decline. Will the Minister examine the VAT obligation and the possibility of introducing a tax relief scheme?

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