Olivia Mitchell (Dublin South, Fine Gael)
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Question 4: To ask the Minister for Arts, Sport and Tourism his views on whether policy initiatives aimed at fostering new talent and sustaining those established in the artistic community have been adequate to date in 2009; and if he will make a statement on the matter. [32888/09]

Martin Cullen (Waterford, Fianna Fail)
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Responsibility for the promotion of the arts at all levels is primarily devolved to the Arts Council. The Arts Council is the principal agency through which State funding is channelled to the arts. Responsibility for the promotion internationally of our artists is a matter for Culture Ireland.

Obviously, I am not involved in the council's operations. I am, however, of the opinion that taken together, the variety and depth of the programmes and schemes put in place by the Arts Council, Culture Ireland and my Department have the object of both developing new talent and sustaining those already engaged in the arts. For instance, I understand that to date in 2009, approximately €3 million has been allocated by the council to recipients of bursaries and various new once–off and new project works that have the aim of developing individuals and organisations to make progress in their respective fields.

The range and wealth of talent being nurtured through the council's funding is truly impressive. The council is to be congratulated on its sterling work in prioritising and managing its resources in a strategic manner to ensure the delivery of a high-quality service to the public.

In addressing the issue of future arts investment, it is important to highlight the transformed arts foundation and infrastructure that has been provided by way of consistent Exchequer funding. For instance, since 2002 funding for the Arts Council has increased by more than 50%, from €47.67 million in 2002 to €73.35 million in 2009. This is a total of more than €530 million over the period, which Members will agree is a substantial amount. Over the period, these investments have helped to transform the profile and appreciation of the arts, to bring them centre-stage and enliven them for everyone to enjoy. This expenditure has allowed the Arts Council to fulfil significant elements of its functions, namely, of stimulating public interest in the arts, promoting knowledge, appreciation and practice of the arts and assisting in improving standards in the arts. The council delivers a focused, comprehensive, efficient and strategic service to its clients, audiences and partners nationwide.

Since 2004 amounts to the value of more than €109 million have been paid in respect of arts infrastructure nationwide.

Olivia Mitchell (Dublin South, Fine Gael)
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I wish to raise two aspects that arise from the various reports produced by the McCarthy group and the Commission on Taxation. The first pertains to the issue of the tax exemption on which I seek the Minister's views. Although the McCarthy report suggested its abolition would save money, the case has been put forward that so doing would instead reduce tax revenue. The truth is in there somewhere but bearing in mind the erratic nature of artists' income, I am anxious that some arrangement should be in place, howsoever the tax exemption is refocused or rejigged, which attempts to take an average of income over a number of years. On the whole, artists are a pretty poor bunch and I understand that nearly 91% of them derive less than 25% of their income from creative work. Moreover, as the Minister is aware, even highly successful artists, of whom there are not terribly many, have erratic incomes. It may be from an exhibition every three or five years and God knows how often one writes a book. Therefore their income is erratic and the idea of taking an average of their income must be taken into account.

A more serious issue arises in respect of the funding of the Arts Council and consequently of the arts. I am conscious that we are more than an economy and that there is an intrinsic value to the arts, as well as the economic value of which the Minister has spoken. However, it appears that the Arts Council has committed and spent some of next year's funding this year. If true, this appears to be catastrophic. I do not know whether it is true.

Martin Cullen (Waterford, Fianna Fail)
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No. I believe I know what is going on and I will explain in a moment.

Olivia Mitchell (Dublin South, Fine Gael)
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There appears to be a suggestion that even in conjunction with the cutbacks recommended in the McCarthy report, there will be a cutback based on over-expenditure this year. If that is true, it would amount to approximately 17% and the Minister should clarify this issue.

Martin Cullen (Waterford, Fianna Fail)
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On that point, we are going into the Estimates process more deeply at present and I understand the Arts Council has given an indication to various organisations regarding the level of funding they could expect for the first quarter of next year. This will be from next year's budget and will not come from this year's budget. The council has tried to give an indication for the future, including a degree of reduction, to assist the planning that many such organisations are obliged to do into the first quarter of next year. There was no question of taking resources from this year and using them next year. I understand that to be the position.

Olivia Mitchell (Dublin South, Fine Gael)
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Was there not a suggestion of reserves being spent this year?

Martin Cullen (Waterford, Fianna Fail)
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I do not know. I have no knowledge of anything coming from next year's allocation to fund this year.

Olivia Mitchell (Dublin South, Fine Gael)
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Was there a suggestion of money being spent this year that would not be available next year because reserves were being spent?

Martin Cullen (Waterford, Fianna Fail)
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Not that I am aware of. That is my understanding of what it did and this may be the area of confusion in this regard. That is the specific answer on that question.

Brendan Howlin (Wexford, Labour)
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A brief supplementary question from Deputy Mitchell.

Olivia Mitchell (Dublin South, Fine Gael)
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I seek the Minister's opinion on the artist tax exemption. While I acknowledge the Minister is not entirely his own master in this regard, does he have a view on it?

Martin Cullen (Waterford, Fianna Fail)
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I do. When one deals with such matters, one must deal with facts rather than anecdotal evidence and unfortunately the report used figures for tax forgone that were based on 2006. While I am not even certain they are accurate, let us accept they are. This was before the cap on income was introduced. As Members are aware, the cap came into effect on 1 January 2007, which I believe would paint an entirely different picture. The Deputy is correct to highlight the highly uneven earnings of artists. Between 70% and 80% of those who are defined to be artists earn less than €20,000 a year anyway. One must be able to cater for spikes in income at certain times. While an income in a single year might appear high, the Deputy is again correct in this respect because it might take three of four years to write a novel, during which time no income might accrue.

Consequently, I have directed that an assessment be carried out because I wish to establish a basis for the argument regarding tax forgone by ascertaining the true picture. I hope to have it within the next few weeks in order to be able to argue forcefully on the actual position, as opposed to what it may have been before the tax exemption was capped at an income level of €250,000.

Brendan Howlin (Wexford, Labour)
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Before calling Question No. 5, I will allow Deputy O'Mahony to make a brief observation.

John O'Mahony (Mayo, Fine Gael)
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I thank the Leas-Cheann Comhairle. All Members were in shock last week on learning of the sudden and tragic death of Darren Sutherland. While many tributes have been paid, it is appropriate to put on the record of this House Members' deepest sympathy with his family, his parents Tony and Linda and his sisters. There is a great sense of loss among all those involved in sport and within the boxing fraternity in particular. One can only imagine the trauma and grief through which the Sutherland family is going at this time. 4 o'clock

Darren was someone who brought great honour to this country and to the sport of boxing. I was privileged to meet him and his family a number of weeks ago. He articulated to a group of athletes the determination and the efforts made in his life to achieve what he did at the Olympic Games and his ambition to be a world champion. He brought great honour to this country and to everybody he touched. He has been a hero and will continue to be so. May he rest in peace.

Mary Upton (Dublin South Central, Labour)
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On behalf of the Labour Party and on behalf of myself, I wish to express sympathy to his family. He was an outstanding sportsman. One of the characteristics we remember is that in photographs he was always smiling and happy. It is a great tragedy for his family but also for the boxing fraternity, his friends and colleagues. It was moving to see young boxers lined out on the day of his funeral. They were young and committed and admired him as a role model. He will be sadly missed most of all by his immediate family but also by young people who see him as an outstanding athlete who represented the country with great honour.

Martin Cullen (Waterford, Fianna Fail)
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I was going to mention this at the end of Question Time and I am happy to do so now. I feel devastated for the Sutherland family, for his parents and two sisters and the entire boxing community. I was privileged to get to know Darren, however briefly, during the Olympic Games. I saw every one of his fights. I remembered the exuberance and excitement he brought and the lift he gave to the entire Irish Olympic team. We can contrast this time with the same time last year, with the high, the success and the emotion of the whole country following his success along with his colleagues who won silver and bronze. Some 12 months later we see a major personal tragedy befall his family. The response of the boxing community speaks volumes. I was at the funeral and it was so sad to see that the life of someone with a glittering career in front of him had come to an end. That must be dealt with in the first instance by his family but the outpouring from the wider public is there and I hope the family finds some comfort in it. He was greatly appreciated.

The one image that is fixed in my mind and that exemplifies Darren is when the plane came home from the Olympic Games. He came off the plane wearing the Chinese hat, with a smile on his face. He was a figure who demonstrated how proud he was. Hopefully, since he won the medal he felt how proud Ireland was of him. It is so sad. Ar dheis Dé go raibh a anam dílis.

Brendan Howlin (Wexford, Labour)
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On my behalf, on behalf of the Ceann Comhairle and all Members of the House, I associate myself with the words of sympathy to the Sutherland family.