Dáil debates

Tuesday, 28 April 2009

Priority Questions

Departmental Expenditure.

3:00 pm

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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Question 76: To ask the Minister for Arts, Sport and Tourism the details of changes to the allocation of expenditure within his Department for 2009; the changes to programmes, initiatives or projects within his remit; and if he will make a statement on the matter. [16749/09]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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The supplementary budget for 2009 was a necessary measure to bring stability to the public finances, to restore economic activity and to enhance Ireland's competitiveness. It is critical that we manage the immediate economic difficulties in order that Ireland is well positioned to take full advantage of the international recovery when it arrives. This has meant that certain measures have been necessary, including a reduction in the budgets of Departments. In my Department, the budget for 2009 is €531 million, a reduction of 27% on the 2008 figure of €727 million. In addition to this, the National Gallery Vote, for which I also have responsibility, has a budget of €11.2 million in 2009, down 11% on the 2008 figure. Notwithstanding the cuts in funding for this year, my Department will press ahead with the implementation of a broad range of programmes across the arts, sport and tourism sectors.

The allocation for expenditure in the arts, culture and film sector for 2009 is €180 million, a reduction of 18.5% on the 2008 allocation of €221 million, including the National Gallery Vote. Within this, there is a reduction of 42% in capital expenditure, owing primarily to the completion of once off projects such as Wexford Opera House and the Gate Theatre extension. The bulk of the cuts in this sector have been concentrated into capital expenditure to protect day-to-day expenditure and ensure venues stay open, job losses are minimised and the contribution of cultural tourism enhanced.

The allocation for sport this year is €195 million, a reduction of 42% compared to the 2008 allocation of €336 million. The 2008 figure, of course, takes account of once-off expenditure of €116 million on the Lansdowne Road project. Taking this amount out of the calculations, the reduction in funding for sport for 2009 is of the order of 11%. This allocation will allow all commitments made up to, and including, 2008 under the sports capital and local authority swimming pool programmes to be met. The provision of €56 million for the sports capital programme will ensure that existing commitments will be met and that a range of modern, well-equipped and well managed facilities will be brought into use.

Similarly, regarding the local authority swimming pools programme, while there will be no new round of the programme in 2009, the current round provided for 57 swimming pool projects. Of these, 43 projects have been completed and opened to the public and our priority now is to work with the relevant local authorities to open the remaining 14 pools to the public. The allocation for tourism is €153 million, a reduction of 9.5% compared to the 2008 figure of €169 million. I have sought to minimise the reductions in the tourism services budget in line with the Government's stated priority of protecting economic sectors that contribute to job creation, foreign revenue earnings and tax yield for the Exchequer. Tourism supports an estimated 288,000 jobs and generates €4.8 billion in foreign revenue earnings and €2 billion in tax revenues.

The tourism marketing fund, which stands at €47.25 million, has been largely protected as a strategic priority. Experience has shown that maintaining marketing spending in difficult times can position Irish tourism for a faster recovery. This marketing fund, used by both Tourism Ireland and Fáilte Ireland, is enabling a major reinvigorated marketing programme to be rolled out in 2009 to promote the island of Ireland as an attractive destination for visitors.

The allocation of funding for the agencies and bodies under the aegis of my Department is outlined in the Revised Estimates published last week. As the Deputy will be aware, it is a matter for the agencies to determine how best to allocate that funding within their organisations. The arts, sport and tourism sectors are important drivers within the economy as they contribute to both economic growth and employment levels. I have sought to minimise the reductions in funding to these sectors and I am satisfied the levels of funding available for 2009 will ensure that they continue to contribute to Ireland's economic recovery and growth.

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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I will concentrate on the areas in which there have been significant changes in spending. We now know there is no swimming pool programme as such, as we are just paying off the remaining bills on pools that were agreed some years ago. The actual amount allocated is down by €6.5 million this year. Does the Minister expect that the bills will not come in from the local authorities or groups that are building these pools, or will they be kept waiting for their money? Will this cause problems for local groups and local authorities? Will the funding be carried over until the following year or the year after that?

I have spoken about cultural infrastructure many times and I am devastated to find it is probably the area that will take the biggest hit. Despite the amount of money that has been available in the past 15 years, few of these projects have been carried out. The budget is down this year from €35 million, which was low anyway, to €19 million. The Minister mentioned a 42% drop in funding. Are there any new capital projects under the heading of cultural infrastructure?

The other big drop is in the product development allocation to Fáilte Ireland. I am sure the Minister, like all of us, has been reading the papers and has seen that our traditional attraction as a nice place to go with nice people and nice scenery is not working for us in the same way it once did. It is no wonder, as there are lots of nice places to go with nice people. We must offer people something more. I appreciate that the marketing budget has been maintained, but one must have something to market. It is very short-sighted to cut the product development budget at a time such as this when we have never needed it more. The budget has been halved. What projects, specifically, will Fáilte Ireland not be able to carry out as a result of this?

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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I would not necessarily agree with all of what the Deputy has said. Under the swimming pool programme, as I said, 57 projects were approved in the first round, and this round is still being completed, while 43 projects have been finished.

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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Over ten years.

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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It is some achievement in terms of volume. We have gone from having no swimming pools in some communities to having 43 around the country, which will make an enormous difference.

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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That is incorrect, as many of those are refurbishments. The pools were already there.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Allow the Minister to answer the question.

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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The reduction takes account of the reallocation of the budget. Those projects that we expect will require funding this year under the swimming pool programme will get it. Some are delayed for various reasons to do with the local authorities themselves. Our best estimate is that the money I have provided in the portfolio is more than enough to meet the requirements for this year.

On the issue of cultural tourism, I took the view - with which I thought the Deputy would agree - that it was important to maintain jobs. Large numbers of facilities such as small theatres have been opened across the country, many of them in conjunction with local authorities, and I wanted to make sure we did not see some of these closing down through lack of funding. Thus, I tried to maintain the funding on the current side to keep these attractions open, and I decided that if there were to be reductions they should be on the capital side in the short term. That is not to say we would not like to do more. It is an important area. The view of people I have spoken to in different parts of the country was that they did not want to see this substantial range of new small facilities shut down. That was the option that was chosen.

The Department has had to take its fair share of the pain, like anywhere else, but it is proportionate. It has been recognised by the arts, sport and tourism sectors that the measures have not been excessive, as they have been at certain times in the past. We have tried to manage the process in as fair and balanced a way as possible. I cannot off the top of my head say what projects are being carried out by Fáilte Ireland, or where its processes are, but it will still be funding major capital projects this year, some of which were only announced in the recent past. Some are going through the process of approval and vetting at present and there is money there to do this.