Martin Cullen (Waterford, Fianna Fail)

The restaurant sector, like all businesses in tourism and hospitality, has had a very challenging year in 2009. Prior to the budget, the Restaurants Association of Ireland launched a ten-point plan to protect employment, create new jobs and ensure the viability of the sector. In September last, I met the president and the chief executive of the association and discussed key issues of concern to them, including competitiveness issues.

The budget has responded to a number of the issues raised by the association as follows: the reduction in excise duties on alcohol and VAT; the introduction of an enhanced scheme of accelerated capital allowances for energy efficient equipment to include catering and hospitality equipment; an increase in the tourism services budget of 2% to over €155 million in 2010, including maintaining the level and value of investment in tourism marketing in real terms; and a rail travel initiative aimed at senior citizens visiting Ireland from abroad.

In addition, the Tánaiste and Minister for Enterprise, Trade and Employment recently extended eligibility of the employment subsidy scheme to include the tourism and hospitality sector. She has also established a credit review system for all SME sectors, including tourism, and has extended the work placement scheme to include small businesses. Furthermore, my colleague, the Minister for the Environment, Heritage and Local Government has also commenced the process of examining the burden of local authority charges on business through the establishment of a local government efficiency review group to review the cost base, expenditure of and numbers employed in local authorities. This group is due to report by the middle of next year.

Aside from the budget and related initiatives, Fáilte Ireland is working closely with businesses to help them survive the recession and emerge prepared to take advantage of the anticipated upturn in the medium term. Specifically, Fáilte Ireland is providing a range of business support services, including a business mentoring and coaching service, and a business advisory service, as well as the Optimus programme and Performance Plus, which are on-line business tools. In the restaurant sector specific supports being provided by Fáilte Ireland include a chefs' workshop programme to cut costs and increase profitability; a front of house productivity programme; a quality food toolkit CD resource; a workshop on financial management for restaurants addressing topical issues, including cash-flow, negotiating with key suppliers, re-negotiating key contracts, including leases and dealing with banks and investors in accessing credit and investment cash; and the production of an employment law compliance case studies and guide.

Fáilte Ireland is also leading and working with Government Departments, agency partners and industry stakeholders, including the Restaurants Association of Ireland to position Ireland as one of the world's outstanding authentic food tourism destinations and to position Irish food experiences at the core of Ireland's tourism brand. Fáilte Ireland plans to engage with the RAI early in the new year to discuss a number of actions and interventions for 2010.

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