Brian Walsh (Galway West, Fine Gael) | Oireachtas source

I welcome the opportunity to contribute to the debate on this important Bill. At the outset, I agree with some of the sentiment expressed by Deputy Ó Caoláin who is sitting opposite. The Government is making decisions that are highly unpalatable but it received a mandate to do this and I would defend every decision the Government has made since it assumed office almost two years ago. In implementing its mandate to rectify the nation's finances, tough and difficult decisions must be made. I am sure Deputy Ó Caoláin would agree that for far too long on the Government side of this House, decisions were made with an eye to the next general election. Thankfully, the current Administration has confined the politics of the past. I remind Deputy Ó Caoláin that in the past year, the Government borrowed €14,000 million, quite apart from anything to which the Deputy referred such as moneys going into banks and so on. Leaving that aside, €14,000 million were borrowed to keep afloat the country in terms of essential services the Government provides. The only solution I have heard from the Deputy is a measure that would raise, to quote the Deputy, "an additional €1 million per day". Unfortunately, it is necessary to make adjustments far in excess of the figures suggested by the Deputy. What is difficult to accept in respect of the Deputy's argument, and indeed its sincerity, is that his own party in government in the North of Ireland is implementing some of the measures of which it is highly critical here in the Republic.

However, I welcome this legislation in its entirety. It constitutes another step towards the rectification of the State's finances and Ireland's continued economic recovery. I wish to focus briefly on one element of the Bill which might easily be overlooked in terms of its significance, namely, the extension of the exercise rebate on auto diesel to include private bus operators, as well as road haulage companies. Naturally, this measure has been welcomed by those within the sector but I believe it will have broader benefits in the wider economy. First and most obviously, the provision represents a shot in the arm for a struggling coach industry. After the previous excise duty rebate was abolished by the Government's predecessors, the number of coach tourism visitors to Ireland dropped to 418,000 from more than half a million in the previous year. The numbers have continued to decline steadily since then and stood at approximately 300,000 visitors in 2011. Coach tour operators have been obliged to contend with high fuel prices and stern competition from their counterparts in Northern Ireland and the United Kingdom, which can offer cheaper tours to clients because of the lower cost of diesel. One should be clear that there is a discernible correlation between the cost of fuel and the ability to compete for international visitors. This position was reflected in a Fáilte Ireland study last year, which found that high overheads and dwindling revenue had resulted in a scenario in which the coach tour industry was operating at a loss.

The provisions of the Finance Bill will offer a lifeline to companies in the industry and for many will constitute the difference between staying in business or ceasing to trade. At a glance, the benefits of this section of the Bill might appear limited and sectoral but this is not the case. The private bus and coach industry comprises approximately 1,900 SMEs which employ between 6,500 and 7,000 workers. They play a vital role in Ireland's transportation network and represent an important cog in the country's crucial tourism industry. Approximately 300,000 coach touring visitors came to Ireland in 2011, as I indicated, and this was worth an estimated €180 million to the national economy. Its monetary value aside, coach tourism is extremely important because it brings tourists to non-urban areas that would not otherwise benefit from tourism revenue, which is the lifeblood of many businesses in more remote locations. While I apologise for using terminology that might evoke bad memories in the Chamber, the coach tourism industry essentially facilitates the decentralisation of the tourism industry. It is extremely important as it both allows tourists to access some of the nation's remote treasures, thus enhancing the Irish tourism product, and allows for regional distribution of the associated benefits. As the Government works to invigorate the tourism industry, which is one of the tools with which the economy will be rebuilt, this consideration must be a priority of the Government.

One reason The Gathering initiative this year is such an important series of events is that the organisational nature of the idea will see tourism revenue diverted to towns and villages in every corner of the country. In addition, 86% of coach tourists stay in hotels during their visits, which sustains the ailing hospitality industry. Just as the abolition of excise rebates for private bus operators resulted in a decline in coach tourism numbers after 2008, conversely there is reason to believe the measures contained in this Finance Bill will result in an increase in the number of such visitors and benefits that are far more far-reaching than one might initially assume. Consequently, I commend the Minister on including this rebate in the Finance Bill, which I commend and support.

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