Peter Fitzpatrick (Louth, Fine Gael)

The main purpose of the Bill is to amend the National Tourism Development Authority Act 2003 to increase the level of funding for capital expenditure projects. The proposed change to the legislation is required to allow funding for tourism product development as set out in the annual Estimate to be provided to Fáilte Ireland. The Bill offers an opportunity to highlight the Government's commitment to the tourism sector.

The National Tourism Development Authority Act 2003 resulted in the dissolution of Bord Fáilte Éireann and CERT Limited, and the development of the National Tourism Development Authority, Fáilte Ireland. Section 24(2) of the 2003 Act, however, placed a cap of €65 million on the total level of funding which can be granted to Fáilte Ireland to spend on capital expenditure projects or enterprises which support the development of tourism traffic or the marketing of tourist facilities and services. Section 24(1) of the 2003 Act gives the Minister for Transport, Tourism and Sport, with the consent of the Minister for Finance, the power to advance out of the money provided by the Oireachtas such sums as the Minister may determine.

In the 1990s Ireland experienced large tourism growth and outperformed the rest of Europe as a tourist destination. Since 2001, however, the sector has become less competitive owing to a number of factors, including changes in demand and customer needs and more aggressive competition from other destinations. The tourism sector has experienced a decline in recent years. The total level of financial support for tourism provided by Oireachtas grants has fluctuated in the period from 2007 to 2010. Just over €20 million is available to advance to Fáilte Ireland before amending legislation is required. It is anticipated that the existing cap will be exceeded in the course of 2011 and 2012. The Departments of Transport, Tourism and Sport, and Finance have agreed a figure of €150 million based on this year's allocation and likely future allocations.

Fáilte Ireland has published a tourism product development strategy 2007-13 which states that less support will be provided for accommodation but more investment is required for tourism infrastructure. The strategy identifies priority areas for capital investment based on a comprehensive audit of tourism attractions, activities and events. The strategy also outlines that competitor destinations in northern Europe are investing substantial sums of public money in tourism, including the development of capital projects. Fáilte Ireland has responsibility for supporting the tourism industry in the areas of product development, marketing of domestic tourism on the island of Ireland, training and education, research and strategic planning, specialist product marketing and promotions, and the implementation of special initiatives to attract international sports events to Ireland. The Bill will ensure increased capital funding is made available to Fáilte Ireland, which will enable the agency to compete favourably with other northern European countries.

I express my satisfaction at Dublin winning the all-Ireland football championship last Sunday. While there is a big recession in the country, based on what I saw in Croke Park on Sunday, I do not believe there is a recession in Dublin. I wish the wee county, Louth, the best of luck as it will need luck in the future.

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