John O'Donoghue (Kerry South, Fianna Fail)

With the permission of the House, I wish to share time with Deputy Carty, the Minister of State at the Department of Foreign Affairs, Deputy Treacy, and the Minister of State at the Department of Enterprise, Trade and Employment, Deputy Killeen.

I am delighted with the continued support of the Government for arts, sport and tourism. The overall budget for these areas is €698.6 million for 2007, an increase of 17.6% over 2006. This includes €216.56 million for arts and culture, an increase of 8.65% over 2006; €316.87 million for sport, an increase of 30% on 2006; and €153.7 million for tourism, an increase of 9% on 2006. The total capital allocation for 2007 is €298.842 million, an increase of just over 32% on 2006. The total current allocation for 2007 is over €399.759 million, an increase of 8.6% on 2006. It is important to view these increases in the context of exceptional growth in recent years in these areas. The arts, sport and tourism sectors have received unprecedented tangible support from the Government in terms of significantly increased financial allocations.

No one can doubt the Government's commitment to the arts. The Arts Council is the main vehicle through which the State supports the arts. The Government's ongoing commitment to the arts sector is demonstrated with an allocation of €80 million to the Arts Council in 2007. I am also very pleased the Government has again been able to provide a substantial increase for the national cultural institutions.

Overall funding of €19.7 million will be allocated to the Irish Film Board in 2007. This increase will enable the board to continue with its essential role in developing and supporting indigenous Irish industry. The increased current allocation will facilitate the board in marketing Ireland as a film location and, in particular, will assist the work of the newly appointed official in Los Angeles in raising the profile of the Irish audiovisual industry abroad.

I am also delighted that a 50% increase in funding has been secured for Culture Ireland to ensure Irish art is promoted at home and abroad. Taken together with the 50% increase secured in 2006, this represents unprecedented Government support for the arts.

This year's budget provides further evidence of the Government's commitment to providing practical support for sporting bodies seeking to develop their facilities. These bodies already benefit from specific income tax and capital gains tax exemptions and can all look forward to benefiting from an exemption from stamp duty on lands purchased for the purpose of promoting sports, to be provided for under the Finance Bill 2007. This will complement the support provided under my Department's annual sports capital programme for the provision of improved sporting facilities at local, regional and national level.

I am delighted the Minister has included additional funding of €2 million in the 2007 budget for Special Olympics Ireland. The Government holds the Special Olympics organisation in high regard and this is recognised by its commitment to funding. The programmes implemented by the organisation for people with intellectual disabilities have a profound and positive impact on families and communities. The organisation now has 11,000 affiliated members in 402 clubs countrywide, with a network of 101 communities supporting these clubs. The additional funding of €2 million provided in this year's budget will help Special Olympics Ireland to meet its extensive financial commitments next year, with the world games being held in Shanghai where some 200 athletes and coaches will represent Ireland. These measures should be placed in the context of the highest ever budget for sport, which is €316.87 million. If one compares this with the amount spent when sport became an issue at the Cabinet table in 1997, namely €17 million, one will note there has been an unprecedented increase. The allocation will enable us to press ahead with our ambitious plans to transform sports infrastructure, including the delivery of two major projects that are vital to our national sports profile.

The Government has made a considerable effort to bring our sports infrastructure into line with best international standards. This includes the provision of €87.8 million towards improving sports infrastructure at local and regional levels, €76 towards the redevelopment of Lansdowne Road, €30 million towards the development of phase 1 of the sports campus at Abbotstown and over €71 million for the horse and greyhound industries.

The 2007 budget for the Irish Sports Council has been increased from €40.9 million to €49.025 million, which is an increase of 20%. This increase will help to ensure the council can continue to deliver its various programmes and initiatives aimed at increasing participation by people of all ages in healthy sport and physical recreation, and at raising standards in competitive and elite sport.

The major issue facing Irish tourism is competitiveness. Budget 2007, with its emphasis on sustaining order in the public finances, minimising inflation, reducing income tax and avoiding increases in indirect taxes and excise duties on food, drink, accommodation and petrol will support the tourism industry in delivering value for money and withstanding international competition.

The decision in budget 2007 to allow for the deduction of VAT on certain expenses incurred in attending business conferences will give a major boost to Ireland's position as an attractive international destination for business tourism. I warmly welcome the announcement by the Minister for Finance that he intends to provide for the removal of the block on recoupment of VAT on certain conference-related expenses in the forthcoming Finance Bill. Ireland is one of the few EU countries at the higher end of the VAT scale that does not provide for deductibility. This has been eroding Ireland's competitive position in attracting conference-related business.

I strongly pursued the issue of VAT deductibility with the Minister for Finance in recent months. It was one of the key budget proposals sought by the major tourism representative bodies, including the Irish Tourist Industry Confederation and the Irish Hotels Federation. It has also been supported by the business tourism forum established by Fáilte Ireland and the tourism strategy implementation group.

The international conference market is very lucrative — it is estimated to be worth approximately €40 billion annually. Although we have made some advances in recent years, there is great potential for Ireland to grow its share in this market in line with our overall dramatic progress in tourism generally. Yesterday's decision, together with the imminent decision by the Government, which it is hoped will give the go-ahead for the construction of a national conference centre in Dublin, should position Ireland at the top end of the international conference market.

The increase in the VAT exemption limit for small service businesses from €27,500 to €35,000 will benefit small accommodation providers, including bed and breakfast owners, who have been under some pressure in recent years due to changes in lifestyle and consumer taste. This increase is further evidence of a listening Minister for Finance who understands Irish business.

For 2007, I have secured a record amount of Exchequer resources for tourism services. The sum amounts to €154 million, which represents an increase of 9% on this year's allocation. This includes an increase of 13% in the tourism marketing fund, which amounts to €45 million. It will enable the tourism agencies, Fáilte Ireland and Tourism Ireland, to deliver ambitious marketing and development plans.

The budget has come at the end of a good year for tourism. Conference numbers are rising, the number of overseas visitors in the first nine months of the year has increased by 11% and the number of holidaymakers is growing. We are gaining market share in global and European terms and the domestic tourism business is strong as Irish people take an increasing number of short breaks, many of which are spent in the country.

Over the past four and a half years, the Government has put in place a programme of total reform in respect of tourism. It has embraced the reform of all our tourism agencies, both national and regional, and of all our major tourism strategies in the fields of marketing, product development and human resources. This programme of reform is now paying dividends.

Tourism is no longer the Cinderella of Irish industry. It comprises our largest internationally trading indigenous service industry. Last year it was worth in excess of €4.2 billion in foreign revenue and in excess of €1.5 billion in domestic revenue. This year, 2006, has been one of the best ever for overseas visits to Ireland and I look forward to even better developments in the years ahead.

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