Martin Cullen (Waterford, Fianna Fail)

Ireland finds itself in the most challenging global economic conditions we have seen for a long time, however economies have always been subject to cycles. It is vital that as we manage the immediate challenges we face, we position ourselves so we come out ahead in the inevitable upturn. The framework for sustainable economic renewal outlines an agenda for reform and investment that will allow the country to emerge in a position to prosper when conditions improve. We can turn this time of difficulty into an opportunity as we did in 1958 and 1987.

The Government's framework document, Building Ireland's Smart Economy: A Framework for Sustainable Economic Renewal, builds on the national development plan, and, more recently, the National Economic and Social Council's report, The Irish Economy in the Early 21st century. The NESC highlighted the long-term potential of services supported by a strong culture of innovation. I was pleased to see the NESC report recognised the success of Irish tourism as a national champion among indigenous exporters of services due to successful marketing of holidays, conferences and other products to overseas visitors in a highly competitive international marketplace. The NESC also recognised the innovation achieved in tourism. The framework for sustainable economic renewal sets out how Ireland can become the innovation and commercialisation hub of Europe. The framework highlights how the smart economy rests on four pillars: developing human capital, building physical capital, securing social capital and protecting environmental capital.

Tourism can sustainably exploit our environment while adding to our human capital. Arts and culture provide intellectual capital for the smart economy. Sports and culture provide essential social and physical capital. Arts, sport and tourism sector are critical to achieving the smart economy across the framework. In securing the enterprise economy, prioritising investment in arts, sport and tourism infrastructure can help maintain activity and employment in the construction sector. Tourism maximises the return from high-end international financial services through business tourism and conferences. In building the ideas economy, tourism has proved its ability to respond to a highly competitive international market.

The framework report highlights actions in tourism, including investment in marketing as well as tourism product and the scope for eco-tourism. The tourism renewal group, which I established in December, is examining tourism policy and programmes and will develop a framework for action in the first half of 2009 to maintain the long-term sustainable growth of Irish tourism. Fáilte Ireland is enhancing the skills of tourism workers and working with tourism enterprises to enhance their operational capabilities and business skills. Tourism Ireland is pursuing new and developing markets and is establishing a hub in the United Arab Emirates to drive the development of key markets such as India and China.

When there is a risk that ill-informed comment could have a negative effect on our international image, the work of Tourism Ireland in promoting a positive image of Ireland abroad is vital for tourism and our enterprise sector. The ideas economy is also about arts and culture. There is scope to leverage our cultural capital making better links between the cultural industries and the wider economy and strengthening business capacity in the culture sector. Cultural tourism has the capacity to highlight the attractiveness of the Irish social and cultural environment for knowledge workers and innovators.

Tourism will benefit from and contribute to enhancing the environment and securing energy supplies, and not only from eco-tourism. Enterprise is already being assisted by Fáilte Ireland as well as through tax incentives in reducing their energy and utility costs while environmental measures can also protect our core attractions of landscape and natural heritage. Investing in critical infrastructure will boost the already significant economic impact of tourism by making access easier, protecting our environment and investing in key elements of tourism and sports infrastructure.

In that context let us recall the economic impact of tourism. It delivers an estimated €4.7 billion including carrier receipts and service exports, sustains close to 300,000 jobs in approximately 17,000 firms and is estimated to generate almost €3 billion for the Exchequer. While indications that visitor numbers in 2008 will show a fall in the record set in 2007, they compare well with previous years. Irish tourism is holding its own against international competitors and can continue to do so with all of us working together: industry, tourism agencies and Government. This framework sets out a positive vision for a future Ireland in which the natural skills and aptitudes of our people to innovate, create and welcome others can deliver a secure, sustainable and prosperous future.

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