Brendan Griffin (Kerry, Fine Gael) | Oireachtas source

It does not. Time is flying. I remember the first Fine Gael budget in 2011. It was certainly a very different time overall for the country. That is not to say we do not have our challenges and problems at the moment; we absolutely do. It is remarkable how far we have come over the past seven years. Long may it continue. We have a long way to go yet. It is not really until every citizen in the country feels the benefit of the improved overall situation that we will be able to say we have come out of the terrible crash that we encountered. In 2011, 2012 and 2013 there were huge negative adjustments to be made and it is brilliant to be in a position not to have to make those cuts and to be able to expand in certain areas. The balanced budget has obvious benefits for the citizens.

I refer to the areas in which I have responsibility, namely, tourism and sport. I am glad to say that we have had some excellent outcomes in both areas in this budget. On the tourism side, we are seeing record figures this year on the back of record figures for 2016 and previous years. That did not happen by accident. When we look back six or seven years, the tourism industry was in a very poor place. That happened for a number of reasons. We lost our competitiveness during the mid-2000s and failed to regain it for a number of years. One of the key catalysts to getting our tourism industry back on its feet again was introducing the 9% VAT rate for certain tourism and hospitality services in the mini-budget of May 2011. That has been a major contributor to the growth levels we have seen in tourism over recent years and has been one of the most pro-rural policies implemented by any Government in the history of the State as it has got into every community in the country. There are critics of the rate. The main criticism is levelled at hotels in Dublin that are benefiting from it and that are, in some cases, charging more than what they should be. I look at the search engines daily to see the prices that are being charged in various parts of the country. The difference is amazing between Dublin and other parts of the country, even at this time of year in the shoulder months, as are the prices that are being charged by certain hotels that are very modest in terms of standards but not in terms of price.

One can get excellent value for money in many parts of the country. While there is value to be had in Dublin, prices remain a problem. As a country, we risk huge reputational damage to our tourism product and offering unless this matter is addressed. Reverting to the 13.5% VAT rate is not the answer. An increase in the rate would only be passed on to the consumer and further erode our ability to compete internationally. Some have argued that the 9% VAT rate has done its job. I make the argument that while it has done so, it has a huge role to play into the future. It was the kick-start we needed in 2011, but it is still a vital lifeline for many enterprises throughout the country, particularly in rural areas off the beaten track. For many enterprises, it is the difference between survival and going under during the many months of the year when they do not experience the seasonality that might be experienced in larger urban centres. I have been very vociferous on this issue and I am prepared to defend it because the sins of a few cannot be rectified by adversely affecting the many, which is what I believe a change in the 9% rate would have done. It is welcome that the 9% rate has been retained and that the Government has recognised that it is a pro-business, pro-tourism, pro-growth, pro-jobs measure and, particularly, a pro-regional rural policy. I know that for many enterprises along the western seaboard or the midlands the 9% VAT rate is vitally important. As I said, I am glad that it has been retained. As far as I can see, there is no appetite within the Government to change it in the foreseeable future.

Prior to the announcement of the budget, it was rumoured that the 9% VAT rate was to be increased to 10%. Any such change would be detrimental to the tourism industry. Also, to make that change in a budget with immediate effect would create huge difficulties for businesses because in many cases tour operators and those booking conferences and weddings which account for a huge amount of business in the hospitality sector book 18 months to two years in advance and prices are agreed. Had the VAT rate been changed it would have created a huge difficulty and poor sentiment between customers and business providers, of which we need to be cognisant also.

I welcome the increase in funding for Tourism Ireland to market the country abroad. The CSO figures produced yesterday show a very healthy increase of 3% in visitor numbers in the first nine months of the year. The work of Tourism Ireland and Fáilte Ireland is important and effective. I acknowledge that the level of funding in this area is not sufficient. We could always do with more, particularly in the context of the UK market where we are experiencing difficulties in bringing visitors to Ireland. One could point to the reason for this being the fluctuation in the currency exchange rate and thus the reduced spending power of people coming here. That said, the marketing power of Tourism Ireland in the United Kingdom versus its competitors, VisitBritain and its Scottish and Welsh counterparts, is seriously reduced and in a much poorer place. Our ability to access television advertising is also seriously diminished and this issue needs to be urgently addressed if there is to be a halt to the reduction in visitor numbers from the United Kingdom and an increase in same. Online, print and modern methods of advertising are important but television advertising enables one's message to be sold in a very effect way. Unfortunately, we are currently not able to do that in the United Kingdom. I would certainly like to have some more funding in that regard. However, I welcome the additional €2 million provided. Coupled with the stimulus that is the retention of the 9% VAT rate which is worth hundreds of millions of euro, it is critically important. Not to be all doom and gloom, visitor numbers from North America are soaring, while visitor numbers from Australia, mainland Europe and the rest of the world are, thankfully, very strong. I compliment those working in the agencies for the great work they are doing on these fronts. I was recently in London to meet Tourism Ireland. Since taking up this portfolio I have been to London twice to meet it to discuss various issues. We have excellent people working in our agencies, whom I compliment on the work they are doing.

I also welcome the increase provided for in the budget in capital expenditure in the tourism area. There is now money available to invest in developing the Wild Atlantic Way and Ireland's Ancient East. The roll-out of the Wild Atlantic Way was a positive development for the country. Even though it runs from Malin Head to Kinsale, along the western seaboard, areas in close proximity also benefit. Following on from the progress being made as a result of the roll-out of the Wild Atlantic Way, the decision to roll out Ireland's Ancient East was further progress. It is only getting started. It should be borne in mind that a couple of years ago we did not have the Wild Atlantic Way. We had the Atlantic, the wilderness and many ways, but we did not put them all together. Often the small ideas are best. Following on from the roll-out of the Wild Atlantic Way, Ireland's Ancient East is a positive development. I recently had the pleasure of attending the launch of the Munster Vales initiative in Lismore Castle in County Waterford. This initiative is a coming together of the region within Ireland's Ancient East to market that part of the country. Included in the initiative are parts of east Limerick, Cork, south Tipperary and Waterford. It is an excellent initiative. The branding of this area is very strong. There is a huge offering, particularly of activities. For example, the Dungarvan greenway forms part of the Munster Vales brand. In terms of improvements in the regions, we need to see more of this happening.

I welcome the additional €2 million provided for the Lakelands initiative in the midlands and northern midlands. This will pay dividends for the people living in these areas. There are 230,000 people directly employed in tourism. It is often forgotten that these 230,000 individuals and families are supported by these jobs. My family depended on employment in tourism. My father was a hotel porter for 36 years, prior to which he worked in a particular hotel in Killarney for two years. He also worked on the film "Ryan's Daughter" which put the Dingle Peninsula on the map.

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