Dáil debates

Thursday, 30 September 2010

Economic Strategy: Motion (Resumed)

 

10:30 am

Photo of Jimmy DeenihanJimmy Deenihan (Kerry North, Fine Gael)

In its recent publication, Trading and Investing in a Smart Economy: A Strategy and Action Plan for Irish Trade, Tourism and Investment to 2015, the Government identified the role of tourism in employment creation as a key element of its strategy. I would like to use the few minutes available to me to make a few recommendations to the Minister of State, Deputy Billy Kelleher. I will speak about what he and his Government colleagues should do to fulfil the commitment they made in that document.

Deputy Breen mentioned the issue of the departure tax. I remind the Minister of State that most EU member states no longer impose such a tax. Holland abolished its departure tax in 2009 on the basis that while it raised €312 million, it cost the Dutch economy €1 billion. Economists and people like Michael O'Leary - regardless of what people say about him - have recognised that the departure tax acts as an impediment to bringing people into this country. We welcome people to Ireland by imposing this charge on them. It does not act as an incentive for them to come to Ireland. It does not help us to sell Ireland. Belgium, Denmark, Spain, Sweden and Malta have all abolished their departure taxes. The Government has an opportunity to change its strategy in this regard in the forthcoming budget. I suggest that the departure tax should be scrapped.

Access to credit is a major issue. We have all encountered it in our personal capacities and when dealing with community enterprises, etc. The Government needs to intervene following the withdrawal of Bank of Scotland from the Irish market. Irish hoteliers had approximately €2 billion in loans with that bank. They also relied on the bank for overdrafts, etc. There will be widespread casualties if the Government does not step in. The creation of a national recovery bank, which was proposed by Fine Gael through Deputy Bruton, should be the subject of serious consideration. The establishment of a new national credit corporation, as favoured by the Irish Tourist Industry Confederation and other tourism bodies, should be seriously considered at this stage.

Fine Gael's very good policy document, NewERA, was ridiculed by the Government but recognised by people like David McWilliams. It should have been considered by the Government. It was a well thought through policy. One aspect of it was the roll-out of the broadband network. During the summer months, I met a number of business people in County Kerry who would like to be able to do their business from Kerry or elsewhere in the west of Ireland for a month each year. They cannot do so at present because our broadband services are not adequate. That is a key issue. I will conclude by saying the Government should scrap the departure tax, increase access to credit and facilitate the roll-out of broadband to this country's tourist areas, most of which are in the west.

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