Martin Cullen (Waterford, Fianna Fail)

A total of €551 million has been allocated to the Department of Arts, Sport and Tourism for 2009, which includes €405 million for current spending and €146 million for capital projects. This figure represents a substantial investment by the Government in the arts, sport and tourism sectors and must be seen against the background of significant expenditure that has taken place in recent years.

While there has been a substantial reduction in the allocation for capital expenditure from €277 million in 2008 to €146 million this year, this relates to the fact that the 2008 budget made provision for large once-off projects in the sports and arts areas, including Lansdowne Road, which received €93 million last year, the Gate Theatre, the new Opera House in Wexford — which I have seen and look forward to seeing again tomorrow, and which is one of the most fabulous opera houses anywhere in the world — the new Lighthouse Cinema in Smithfield, the Carlow Arts Centre and the Everyman Theatre. The Government commitment to these projects is now almost complete and they account for €113 million in the Department's capital allocation in 2009. When those once-off projects are taken into account, the underlying upward trend in the capital available to the Department of Arts, Sport and Tourism is maintained.

I will deal now with the individual sectors under my responsibility. The maintenance of a significant allocation for tourism services in 2009 reflects the Government's continuing commitment to the development of tourism as an important economic sector which contributes some €5 billion in foreign revenue earnings, 250,000 jobs and €2.3 billion in estimated tax receipts. The tourism sector has made major progress over the past ten years, with overseas visitor numbers doubling to 8 million and foreign revenue earnings increasing by a factor of 2.5 to €5 billion. This impressive performance was driven by a clear Government development strategy, in partnership with the industry, and by a range of supporting programmes and initiatives in the areas of marketing, product development and training.

There is no doubt that the current domestic and international environment is very challenging for tourism worldwide and in Ireland. Increased fuel costs and a global economic downturn, with adverse trends in exchange rates, are affecting business. Current indications are that Ireland is maintaining its market share in Europe and many competitors are faring less well. Latest figures from the Central Statistics Office show that, notwithstanding the difficult global environment, the number of overseas visitors for the first six months of 2008 was up by 2.6% on the same period in 2007. The strongest growth was in the mainland European and long-haul markets, reflecting the broader economic trends.

There was a 1.3% increase in revenue from overseas visitors in the first half of this year. In actual terms, expenditure from overseas visitors for the first six months was more than €2 billion. Figures since July are less positive and mirror trends across Europe, where the year started positively but saw a downturn in monthly figures from May onwards. However, the strategic approach taken to tourism in recent years by both the public and private sectors has given the sector the capacity to withstand such cyclical external challenges and sustain its performance in coming years. The Irish Tourist Industry Confederation has stated that the fundamentals of the industry remain strong and Irish tourism is better positioned to withstand any downturn than in the past. As our overseas tourism business has diversified across a wider range of markets in recent years, that has given it the capacity to better withstand pressures on particular markets. The total allocation for tourism in 2009 is approximately €160.5 million. The amount secured is a very positive outcome in the challenging circumstances facing the country and is recognition of the importance of tourism as an economic sector. Our investment in front-line international tourism marketing is being maintained. The allocation for the tourism marketing fund, TMF, for 2009 is €48.5 million. Although that is a reduction of €1.5 million there will be no reduction in the amount available for front-line marketing activities. That is because, in 2008, Tourism Ireland invested on a once-off basis on renewing the Ireland tourism brand, including the development of new promotional material. In the five years from 2004 to 2009, the tourism marketing fund will have increased by more than 50% from €31 million in 2004 to €48.5 million in 2009.

Within the overall tourism marketing fund, the allocation for 2009 will enable the tourism agencies, in partnership with industry interests, to maintain the super regions campaign — for which an identical amount to 2008, €3.15 million, is being provided. As in 2008, €3 million has been provided also to allow for the continuation of Discover Ireland's wonderful west campaign, for the wider Shannon Airport catchment area, in line with the commitment given in the Shannon Airport catchment area economic and tourism development plan.

Given the overall economic situation, the tourism agencies should also be in a position to negotiate better value in terms of advertising and marketing space, because there is a real reduction in available spend across the business world in terms of accessing media. A total of approximately €19.4 million has been provided for the administration and general expenses of Tourism Ireland. The slight reduction on the 2008 figure will be achieved through reductions in administrative expenditure, non-programme advertising and consultancy spending. That represents a very positive outcome and demonstrates the Government's commitment, in co-operation with the Northern Ireland Executive, to marketing the island of Ireland overseas. While we are obviously in a particularly difficult time, maintaining the front-line overseas marketing allocation, as I have done, will allow Tourism Ireland to play its part in helping the sector to manage the current challenges and to return to sustainable growth in the medium term.

The budget provided to Fáilte Ireland is €80.791 million, a reduction of just 2.5% over the 2008 provision. Fáilte Ireland should be able to achieve these savings without any impact on front-line services to the industry. It is expected that the bulk of the savings can be made in administration, non-programme advertising and consultancy spending. That figure includes our commitment to the Irish stop-over in Galway of the Volvo Ocean Yacht Race 2008-2009, which will provide an economic bonus of €44 million to the west of Ireland region and for Ireland as a whole. It also includes contributions to Ireland's hosting of the Solheim Cup — the ladies Ryder Cup equivalent — in Meath in 2011, and the contribution towards hosting the World Rally Championship in the north west in January 2009. Both of those events will have significant spin-off economic benefits for their regions.

In 2009 capital funding of €11 million is being provided to support investment in key tourism infrastructure, attractions and visitor activity facilities that are in need of upgrading and development, and to bring on-stream new products and experiences to meet the sophisticated needs of a more discerning international visitor. Although lower than the 2008 figure, the allocation in 2009 reflects a careful assessment of the range and quality of applications under Fáilte Ireland's tourism capital investment programme as well as the anticipated drawdown of funds in 2009.

Following the Government decision regarding State agencies, my officials are in discussion with the affected agencies to ensure that the transition and necessary changes are achieved in the most efficient manner possible.

The huge social and economic benefits of sport are acknowledged by the Government and are reflected in the unprecedented level of Government funding for sport in recent years. As a result of our investment in sporting facilities in the past ten years people now have more opportunities to play and compete in a vast array of sports than ever before. The provision of approximately €204 million for sport in budget 2009 is a significant investment and will enable the Department to meet its commitments in 2009.

A total of €56 million has been provided for the sports capital programme to meet costs from existing allocations in 2009. That will bring to €780 million Government expenditure on sports facilities at local, regional and national level in the past ten years and underlines the Government's ongoing commitment to the provision of sports facilities. The allocation for the local authority swimming pool programme next year is €18 million. The current round of the programme provides for 57 swimming pool projects. Of those, 37 projects have been completed and opened to the public, eight other pools are under construction and another 12 are at various stages of development. The total amount invested by Government in this programme in the past eight years is approximately €123 million.

The Irish Sports Council, ISC, will receive an allocation of just over €53 million for 2009. While the 2008 allocation was €57.6 million, the 2009 funding is still significant and represents an increase of more than 300% on the 2000 funding level of €13 million. I am confident that allocation will be sufficient to support the work of the ISC in maintaining existing programmes and to build on recent significant progress in all areas including local sports partnerships, Buntús, women in sport, older people and sport, youth field sports and the high performance programme.

I am pleased to confirm the Lansdowne Road stadium project continues to be on target to open in 2010 and that at the end of this year, the Government will have delivered on its commitment to make a contribution of €191 million towards the project. Lansdowne will be a world-class stadium and a suitable national venue for major rugby and soccer games.

Under the legislatively-based funding arrangements for the horse racing and greyhound sectors, the horse and greyhound fund would have expected an amount of approximately €80 million for 2009. However taking into account budgetary difficulties, an amount of almost €70 million is being provided. A review of the fund is currently under way in my Department. The rationale of the fund has been that the horse and greyhound racing industries needed certainty in their funding support on a multi-annual basis and that such funding to develop the industries should be derived from the duty generated from off-course betting. The increase in off-course betting tax from 1% to 2% will serve to significantly reduce, if not virtually eliminate in 2009, the amount of direct Exchequer subvention required.

The arts are a vibrant and vital sector of our economy, an important part of our community and the wellspring of many of our creative and innovative enterprises. The arts are primary economic contributors, real businesses and enduring employers of more than 45,000 people. Next year alone, my Department will invest approximately €200 million in the arts and culture sector and creative industries. In 2008 and 2009, combined investment by the Government in those sectors will be approximately €450 million. It is not too long ago since the Arts Council's annual allocation was one tenth of that sum. That is real, tangible investment in the real economy, in real people and in real jobs. It is also investment that enhances the productive and creative capacity of our country.

The arts, cultural and creative sectors have achieved much in recent years. Many museums and the National Library have won awards in recent years. I will continue to allocate funds under the existing ACCESS programmes. I hope to complete them in the next year. Notwithstanding the difficult circumstances in which we find ourselves, we can still look forward to continued substantial investment, rightly so, in the tourism, arts and sport area.

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