Martin Cullen (Waterford, Fianna Fail)

I welcome the opportunity to speak on this motion. The arts, sport and tourism sectors are important areas of the economy as contributors to economic growth and employment levels. Tourism is a vital contributor to our economic and social well-being and plays a key role in projecting a positive image of Ireland worldwide.

The Central Statistics Office recently confirmed that, last year, a record number of 8 million overseas tourists spent almost €5 billion visiting Ireland. This money was spent on transport, hotels, restaurants, retail shopping and cultural and recreational activities. In addition, domestic holiday makers spent more than €1 billion in the State. Fáilte Ireland estimates that the tourism and hospitality sector supports some 250,000 jobs. More importantly, at a time of rising unemployment, research has found that tourism-related activities are far more labour intensive than the industrial average. The tourism industry is perhaps the most significant internationally traded driver of social and economic development. This is true both at regional and national levels in the service sector in Ireland.

Internationally traded services are widely recognised as central to Ireland's future economic development. The fundamental value of our tourism industry and its continuing contribution to the economy are best outlined by the following facts. The tourism industry is largely Irish-owned. Irish tourist businesses continue to compete successfully with the best internationally. Steady growth in tourist numbers from Ireland and from overseas continues. Our market share against competitor destinations continues to grow in a sustainable way. In addition to its direct contribution to exports, jobs and growth, tourism also helps to create a positive image of Ireland in the minds of millions of overseas visitors. This in turn strengthens our attractiveness as a location for business, foreign direct investment and leisure activities. This year will be challenging for the Irish tourism industry given global economic uncertainty and pressure on consumer confidence in key markets. However, the strategic approach taken with tourism in recent years by both the public and private sectors has given the sector the capacity to withstand such cyclical external challenges and to sustain its performance in the coming years.

In a recent report, the Irish Tourist Industry Federation highlighted that the fundamentals of the industry remained strong. Irish tourism is better positioned to withstand any downturn than in the past. We should remember that tourism continues to generate business revenues and employment even in challenging conditions. While tourism is not immune to cyclical pressures it generally does not undergo the same sharp cycles that other sectors, such as construction and even manufacturing, suffer. Our overseas tourism business has diversified across a wide range of markets in recent years. This has given it the capacity better to withstand pressures on particular markets. It goes without saying that we must continue to invest in our tourism product,. our people and our brand. The Government remains firmly committed to the progressive delivery of the investment priorities to be financed under the National Development Plan, which provides for a total Exchequer investment in tourism of €800 million. The level of investment confirms the Government's commitment to the development of the Irish tourism and hospitality sector. The Government is fully aware of the economic and social importance of the industry providing employment for almost 250,000 people.

Investment is planned within the strategic policy framework in New Horizons for Irish Tourism: An Agenda for Action, the 2003 report of the tourism policy review group. In 2006, the tourism strategy implementation group was set up for a two-year period to follow up on the recommendations of New Horizons to review targets in light of performance to 2006 and to recommend a possible framework for a mid-term review in 2008. I have recently received the report of that group and will bring it to the attention of my Government colleagues shortly. It is my intention to publish the report and put in place arrangements for the mid-term review as soon as possible thereafter.

Sport plays an important role in Irish life and makes an invaluable contribution to the social fabric of society as well as the health of the population. The sports sector is also a significant contributor to GNP. The importance of sport is confirmed by studies and analyses of national accounts, the economics of large-scale sporting events and physical inactivity costs, including those of an aging population.

The Social and Economic Value of Sport in Ireland, a study by the ESRI, which was published in 2005, estimated that four areas of activity in the sports sector generated a staggering €1.4 billion per annum. The four areas are volunteers, membership subscriptions to sports clubs, attendance at sports events and spending on sports equipment, sports clothing and the related costs of playing sport. The study also suggested that further additions, such as tourism, Government spending and horse and greyhound racing, increased that figure to €1.86 billion per annum.

The sports capital programme under the national development plan continues to transform the sporting landscape of Ireland with improved facilities in villages, towns and cities. These grants play a pivotal role in ensuring the provision of modern, high quality, well managed facilities around Ireland that attract more people to participate in sporting activities. Every day, hundreds of thousands of people all over the country are involved in sport in one way or another, be they participants, coaches or volunteers. In an age where time and community spirit are valuable commodities, the thousands of volunteers remain vital to the development and activity of sport. These volunteers should continue to be recognised and encouraged through the provision of support for their projects. It is also fair to say that these projects have hugely positive effects on the broader community. In many new and growing suburbs and towns, the sports capital programme is helping to provide the infrastructure to build a sense of community.

A 2003 value-for-money review of the sports capital programme stated that "the programme represents very good value for money". It found that for every €1 invested by the Government a further €2.73 was invested by local clubs and communities in the provision of facilities. The review also concluded that because of the investment under the programme, hundreds of thousands of volunteers in sports clubs and organisations across the country can devote more time to coaching teams and organising competitions, while the sports capital programme helps to fund the facilities they need.

Government support for the horse and greyhound racing industries is provided under the horse and greyhound racing fund. Since the establishment of the fund in 2001, there has been a major period of development of both the horse and greyhound racing industries. This money has underpinned significant employment in both industries. The 2004 Indecon report on the Economic Value of the Horse Racing and Bloodstock Breeding Industry showed that the thoroughbred breeding sector made a gross contribution to the economy of €330 million per annum and that it paid tax in the region of €37.5 million. Employment of 16,500 people was shown to be generated from the racing, breeding and associated industries. Bord na gCon has estimated that there are more than 11,000 people either directly or indirectly employed in the greyhound industry. Horse Racing Ireland also estimates that horse racing accounts for approximately 80,000 tourist visits to the country each year.

Over the lifetime of the current national development plan, we will invest over €1 billion in hard physical infrastructure in the arts and culture sector and creative industries. This year my Department will invest over €240 million in those sectors. That is a real, tangible investment in the economy. The NDP flagship projects and programmes are already in train. The public private partnership process for the National Concert Hall is under way and the design competition for the new Abbey is being progressed. Some €43 million is being invested in regional arts and culture projects which are under way. The extension to the Gaiety Theatre is completed and the Wexford Opera House will be completed next month. The extensions to the Druid and Gate theatres will be completed by Christmas. The National Library and National Museum projects will commence in 2009 and the next phase of the development plan for the National Gallery is going to planning.

The arts, culture and film sectors are primary economic contributors, real businesses and enduring employers. They are differentiators of Ireland as a cultural and tourism destination and are areas that truly distinguish us as a people in a world of more and more sameness. The arts, culture and creative sectors employ at least 45,000 people in this country. The annual output of these sectors is over €2 billion and it continues to grow.

Ireland today builds on the contribution made by our cultural icons in the past and prospers by the talent and ability of our people. The gift of individual talent is to be cherished, nurtured and fostered from an early age. The more this talent is developed, the better we become as a nation.

We are all aware that the Irish music industry makes a significant impact on the economy and on Irish life. Many Irish musicians have made a huge impression internationally. The Goodbody economic analysis carried out on the sector in recent years provides some interesting statistics in this context. For example, at almost €500 million, the value-added impact of the music industry represents just under 0.5% of GDP, putting it ahead of dairy processing and newspaper and magazine publishing. The industry employs more than 8,000 full-time equivalents.

In recent years, two of our museums won European museum of the year awards. The National Library wins prizes internationally for its exhibitions and the National Museum achieved the annual 1 million visitors mark for the first time in 2007. Irish films won 20 prestigious prizes internationally last year, while Irish writers have reserved places at the top table of international literature competitions.

Tony and Emmy awards are now commonplace for the Irish acting and theatre professions. The marketing value to Ireland of films like "Once" and "PS, I love you" simply could not be purchased. Visitors to the cultural institutions and agencies funded by my Department will top 3 million in 2008.

There has been a significant investment of €2.8 billion by the Government both in current and capital spending in the arts, sport and tourism areas in the past five years. For example, the budget to the Arts Council has increased from €66.2 million in 2005 to over €82 million this year, which represents an increase of 24%. In addition, in 2005, the annual budget of the Irish Sports Council was €34.4 million. This year the figure has risen to €57.631 million, an increase of over €23 million or 67.5%.

In support of the savings required for budgetary consolidation this year, the Department of Arts, Sport and Tourism will introduce savings for the remainder of 2008. While these will be challenging for the various areas both this year and next, they are needed. The 2008 funding allocation for the Department of Arts, Sport and Tourism is €713 million, including the Vote for the Department of Arts, Sport and Tourism and the Vote for the National Gallery.

To meet our share of the required savings across all Departments, €5.978 million will be saved between now and year end. The savings will be as follows: €3 million in departmental operated capital programmes for cultural projects; €2 million savings split mainly among our agencies in grant programmes; and an additional €978,000 in savings in administration costs and other efficiencies across the Department, the National Gallery and our agencies.

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