Jimmy Deenihan (Kerry North, Fine Gael)

While a more in-depth debate on these Estimates will occur at the Select Committee on Arts, Sport, Tourism, Community, Rural and Gaeltacht Affairs, I want to give an overview of the three main sectors for which the Minister has responsibility.

Despite the increase in the numbers of tourists entering Ireland, the level of tourism spend has remained static. People are visiting Ireland for shorter stays and are, therefore, spending less. Many of these extra visitors come from Poland, Latvia and Lithuania to visit their relatives and friends working in Ireland. They do not have the same disposable income as, say, American or UK visitors.

Dublin's tourism industry has been transformed into a buoyant market with tourists visiting it throughout the year. Some 20 years ago, it was seasonal but now tourist coaches are parked outside Trinity College Dublin all year round. Traditionally, the west and the south west depended on tourism revenue. With the decline in farming and fishing and the closure of many light engineering industries, the south west and west are now more dependent on tourism. Unfortunately, the number of visitors coming into these areas is in decline. Between 1999 and 2004, the west lost over 3 million bed-nights. Major pressure has been brought to bear on tourism enterprises such as hotels, bed and breakfasts, guesthouses and restaurants. Only for the domestic tourism market and the spending power of the domestic consumer, tourism in Kilkenny, Westport and many places in County Kerry would be under serious threat. Westport, for example, is 90% dependent on the domestic tourist. If interest rates rise again, the domestic tourism market may slow down with consequences for restaurants and tourism accommodation outside Dublin.

The Government claims it has a low taxation policy but it piles on taxes indirectly. The number of stealth taxes affecting the tourism industry has put it under pressure. Local authorities must increase rates, water and service charges to business because they are not getting enough funding from central Government. As the Minister is aware, County Kerry has the highest rates, next to Limerick. This puts extraordinary pressure on bed and breakfasts and hotels in the region.

Much has to be said for the restructuring of the State's tourism institutions. The regional tourism authorities were not working. Most of their powers have been taken away and centralised in Fáilte Ireland. Will the RTAs be just talking shops or will they give direction? Consultants could easily produce similar reports and not cost half as much. I hope the Minister will give the committee a detailed breakdown of what will be their role.

This year the Arts Council applied for overall funding of €120 million. It received €8 million, an increase of 11% in last year's funding. I accept that is more than the average but the council must provide for theatrical tours for the Abbey and Druid. There will be more theatrical tours using the facilities provided in, say, Portlaoise and Letterkenny, for the past 20 years. Recently the Druid Theatre toured in Kerry with "The Year of the Hiker". However, funding of €2 million will not be made available to the council until next year. I understand the council has another commitment to the Abbey for €1.7 million and a small grant of €1.7 million for product development. The increase, therefore, has already nearly been spent. This year only one in three individuals who apply for funding from the Arts Council will receive it. The Minister should consider how many artists and groups will be disappointed.

Arts centres around the country are under considerable pressure to survive and to pay their managers. I thought a scheme might be introduced to provide subsistence to managers, funded through the Arts Council. There is an indirect system but no direct subsistence. That will not happen now.

The pre-budget Estimate for the arts is not as good as it seems. Many people will be very disappointed. There will be no increases on last year to those who receive funding, although the stealth taxes that affect tourism will also affect those working in the arts. This is not the utopia that the Minister would have us believe. How much time do I have left?

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