Seán Haughey (Dublin North Central, Fianna Fail)

I move amendment No. 1:

To delete all words after "Dáil Éireann" and substitute the following:

"— notes the unprecedented reduction in international economic growth and disturbances in financial markets over the last two years and the impact this has on all sectors of the Irish economy;

— commends the Government for its policies to return stability to the public finances, which is helping to restore confidence both internationally and domestically;

— commends the approach taken by Government on the appropriate balance struck between revenue raising measures and necessary expenditure reductions in its response to dealing with pressures on the public finances;

— notes the positive reaction that the Government's prudent and decisive approach has engendered in international economic commentators and the tangible positive impact of lowering the interest cost of servicing Ireland's national debt;

— notes the need for 'fairness' to be at the core of any revenue raising measures required to shore up our public finances;

— considers that the impact of the air travel tax on tourism has been considerably overstated in the context of overall purchasing decisions by visitors; and

— commends the actions which the Government and the Irish tourism industry are taking, both together and independently, to respond to these challenges, including:

— the continuing commitment of the Government to the progressive delivery of its key tourism investment priorities in marketing, skills development, enterprise support and product development, within a framework of sound public finances and value for money, noting that the tourism services budget was increased in 2010 by 2% to over €150 million, against a background of fiscal retrenchment;

— maintaining the level of overseas marketing activity in real terms, led by Tourism Ireland and supported by industry partners, investing €26 million in a marketing drive in the first half of the year, including the biggest ever programme of activities to showcase Ireland during the St. Patrick's Day period;

— Fáilte Ireland's new advertising and promotional campaign to encourage holidaying at home this year, with a budget of €4 million, rooted in extensive consumer research and consultation with the tourism industry, in particular by promoting the great value that holidaying in Ireland offers to the consumer;

— Fáilte Ireland's support for enterprises, helping them to achieve real cost savings and efficiencies and providing a range of training and business supports to individual tourism businesses, investing over €11 million in 2010 in the form of direct supports and advice;

— the role of the Office of Public Works in the conservation, protection and management of the built heritage and its pivotal contribution to the sustainable development of tourism in Ireland; and

— other significant developments this year which will assist the tourism sector such as the opening of the new Convention Centre Dublin in September which is expected to give a major boost to business tourism, the new Aviva Stadium and the completion of the inter-city motorway network."

Deputies will see why the Government cannot accept the motion during the course of the debate. This House is acutely aware of the challenging economic conditions in which we find ourselves. The public finances, particularly tax receipts, have been very severely impacted by the sharp deterioration in the economic environment. Tax revenue in 2010 is expected to be in the region of €31 billion, a decline of over 30% on the level of taxes received in 2007. Tax revenues are now back to 2003 levels and gross voted current expenditure has grown since by approximately 65%.

The gap that has emerged between revenue and expenditure is unsustainable and this is why the Government has taken such significant measures to restore order to the public finances over the past 18 months.

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