Dáil debates

Wednesday, 21 October 2009

1:00 pm

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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Question 96: To ask the Minister for Arts, Sport and Tourism if he will comment on the findings of the tourism renewal group report; his plans to implement the survival actions outlined in this report; and if he will make a statement on the matter. [37793/09]

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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Question 97: To ask the Minister for Arts, Sport and Tourism his views on the report of the tourism renewal group; if he will implement the framework for survival recommended by the group; and if he will make a statement on the matter. [37581/09]

Photo of Martin ManserghMartin Mansergh (Tipperary South, Fianna Fail)
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I propose to take Questions No. 96 and 97 together.

As the Deputies will be aware, the report of the tourism renewal group was launched on Thursday, 8 October 2009. This report sets out tourism's contribution to Ireland's economic, social and cultural development and the prospects for Irish tourism in a changed world, as well as a framework for action for tourism's survival, recovery and growth over the period to 2013.

The report proposes five survival actions for short-term action to ensure the survival in 2009-10 of a strong Irish tourist industry and to minimise the potential impact of current challenges. Nine recovery actions are proposed for action from 2010 on, to set Irish tourism back on a growth path from 2011, as the world economy recovers.

Under each action in the framework, a number of measures are recommended. The measures are wide-ranging in nature and scope, and are addressed variously to this Department and its agencies, to other Departments and agencies, and to tourism and transport enterprises. Some measures would be matters for Government decision, including in the context of the budget and Estimates, while others fall to individual Departments and agencies at an operational level.

The framework for action set out by the tourism renewal group and the analysis underpinning it is, from a tourism perspective, robust, realistic and soundly based. The Minister fully agrees with the group's conclusion that this is a critical time for the Irish tourism industry and that it is essential Government and State agencies respond with focused and effective actions, to sustain the industry in the short term and to maximise its potential in the medium term.

When the report was published, the Minister stated his intention to engage in consultations with other Ministers involved on the implications of the recommended actions in the report affecting them and their Departments. Some actions are properly matters for Government as a whole, particularly in the context of the budget and Estimates, and the Minister will raise the report of the renewal group with his colleagues in that context.

This Department is also following up on the recommendations of the tourism renewal group with other relevant Departments, agencies and other organisations, especially where they are ascribed a lead or support role. The Minister has already asked his Department and the agencies under its remit to look directly at progressing the recommendations addressed specifically to them. The Minister is also considering the recommendation of the renewal group that a small group be established to oversee and pursue the implementation of the framework for action, on the lines adopted in following up on tourism strategy reports previously.

The Minister is satisfied that the tourism renewal group has fully met its terms of reference. The group's detailed analysis of the tourism sector and broad-ranging consultation has resulted in a clear focused report with soundly-based recommendations. Drawing on the report of the group, the Minister is determined to take the lead in identifying and driving the right measures to assist in ensuring that tourism survives and remains a major industry for Ireland and to position the sector for recovery and growth as the Irish and global economies get back on track.

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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I would be grateful if the Minister of State would convey my good wishes to the Minister, Deputy Cullen. I hope he will make a speedy recovery.

I appreciate the Minister of State's comments. My concern is focused on the five survival actions recommended in the report. The first of these is maintaining spending on overseas marketing. I support this because if a product is not on the shelf, nobody will buy it. That is important and the Minister recognises that.

It is the second recommendation, the abolition of the travel tax, which is my main concern. There is a clamour right across the industry, and particularly from the airlines where the immediate burden is felt, to abolish this and this has been borne out by the renewal group. The report states that the group considers that any apparent immediate fiscal benefit from the air travel tax is more than out-weighed by the actual and potential damage to overseas tourism earnings due to the additional cost wedge on Irish routes vis-À-vis other possible routes for carriers. That is the key issue.

Perhaps the hotelier in Kerry does not recognise what this is doing to his or her business, but the airlines recognise it. For an island country, there is nothing more important than access. If people cannot get access or it is more expensive or more difficult, the product we have on offer, no matter what it is, will not be bought. That is the key issue. Aer Lingus and Ryanair are taking planes off Irish routes and serving other destinations that are more competitive, and that is the bottom line for us. That is the biggest threat to the Irish tourist industry.

Is this being taken seriously by the Minister? He dismissed concerns about this, stating it is not an issue. His own group has now recommended it as an area where action must be taken. Is it a matter the Minister will bring to the Cabinet table in preparation for the budget and will he indicate this is the single most important issue for the tourist industry which, while employing fewer every day, employs in the order of a quarter of a million people?

Photo of Martin ManserghMartin Mansergh (Tipperary South, Fianna Fail)
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Obviously, maintaining marketing investment abroad is important but I suppose it is a balance between maintaining fiscal sustainability while putting in place the necessary supports for sustainable economic renewal. The tourism renewal group has prioritised spending on marketing within the tourism budget and has advanced a range of economic and business arguments for its recommendations. The renewal group report will certainly help make the case for investing in tourism marketing and the Minister will make that case strongly with his Government colleagues in the coming weeks.

On the air travel tax, it is no surprise that a group charged with examining the renewal of Irish tourism would express concerns about the air travel tax. As I have stated, the Government must consider its response to any measure with additional tax or spending implications within the wider context of fiscal sustainability and economic renewal. The recommendations of the renewal group will be taken into account in framing the budget, along with the views of the Commission on Taxation, for example, but obviously I cannot pre-empt the outcome of those considerations, neither as Minister of State at the Department of Arts, Sport and Tourism nor as Minister of State at the Department of Finance.

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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I hope it will be more than taken into account because it would be a case of an own-goal to disincentivise the people who one wants to attract into the country. It is important to note that visitors to our country are effectively taxpayers for the period they are here and we should not disincentivise them from coming. On the other recommendation of prioritising spending, the Minister of State mentioned the importance of marketing.

In terms of capital spending, I would like to put in a word for the cultural institutions, an area I am aware is of interest to the Minister of State, which have been starved of infrastructural investment for many decades. They missed the boat in terms of the Celtic tiger years. I urge the Minister of State to invest any available money, in terms of capital spending, in this area. As this comes within the Minister of State's area of responsibility, I am sure he will have an interest in ensuring this is done.

Photo of Martin ManserghMartin Mansergh (Tipperary South, Fianna Fail)
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Obviously, heritage tourism is important, although it may vary a little in different parts of the country. I attended a south Tipperary tourism seminar with the industry at which it was stated that 50% of tourists to Ireland come to visit heritage areas. Most of the heritage in south Tipperary is under the auspices of OPW, Swiss Cottage, Cahir Castle, Cashel and so on. While the percentage might vary a little from place to place, wearing my OPW hat, I am conscious of the need to continue to invest in those facilities and, equally important, to make them accessible as far as practicable with financial constraints and in the sense of understanding heritage.

I do not agree entirely with the Deputy that our cultural institutions have been starved of money for decades. While this was true up to the late 1980s, there has been huge investment in this area, including in the National Gallery, Collins Barracks and the Museum of Modern Art. While a great deal has been done, more needs to be done, for example, in the National Library. If one tours, as I did with the OPW, the innards of the National Library, one is in what is in many respects a Victorian building with various hazards. There is no doubt that when funds become available the priority will be to invest in such an institution.

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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On a point of order, in stating that the cultural institutions have been starved of investment, I was quoting from the submission from the Minister's Department to the Department of Finance.

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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I, too, wish to send my good wishes to the Minister, Deputy Martin Cullen.

The recent CSO figures in relation to tourism are pretty stark and a little scary. The report, while good, is overdue, particularly in terms of the five survival actions contained therein. That the proposed actions are called "survival actions" implies serious urgency. Perhaps the Minister of State will state what actions will be prioritised.

The air travel tax is an issue we have all raised in the House or by way of parliamentary question. I put it to the Minister of State that this issue must be addressed. The Minister has up to now refused to take this matter seriously. It is important this issue is addressed as part of the survival actions. The Minister of State stated in his initial response that a group will be set up to oversee implementation of the actions. Will this be yet another quango and what in the Department prevents or precludes it from overseeing implementation of those actions?

Photo of Martin ManserghMartin Mansergh (Tipperary South, Fianna Fail)
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Tourism in the year to August is down approximately 11%. The overall figure for this year is likely to be closer to €7 million than €8 million. Some sectors of the economy have been hit worse than that. I do not believe that any country, certainly not Ireland, can afford to underestimate the economic importance of tourism, particularly given that it is such an employment intensive industry which is spread throughout the country. I apologise I have forgotten the Deputy's other question.

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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When are the promised actions-----

Photo of Martin ManserghMartin Mansergh (Tipperary South, Fianna Fail)
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The Deputy asked about the Department's role.

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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Yes. Also, when can we expect these actions to be initiated? A point made in the report is that tourism is as important as agriculture. While I agree agriculture is an important industry for this country, why is it that we do not have the same noise around tourism as we do around agriculture? Why have we not had the same level of activity or concern around tourism from the various Ministers involved? Tourism is a very important industry for this country now. While it has enormous potential, we have heard little about it from the Ministers involved.

Photo of Martin ManserghMartin Mansergh (Tipperary South, Fianna Fail)
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Implementation groups are often established following the publication of a report which includes recommendations. I do not see any problem in this regard.

On when the actions are likely to be initiated, the Minister will first need to know the outcome of the budget's Estimates deliberations before announcing what exactly the bodies under his aegis will be able to do next year. I am sure the different agencies are planning their campaigns down to the last detail. What exactly they will be able to do will depend on their budgetary allocations.

Photo of Séamus KirkSéamus Kirk (Louth, Ceann Comhairle)
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We must move on. I call Deputy Upton for a brief supplementary.

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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On the potential quango, why is that the Department cannot oversee implementation of the report's recommendations? Why do we need yet another new body to promote and progress it?

Photo of Séamus KirkSéamus Kirk (Louth, Ceann Comhairle)
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We have dealt with only two questions. We must move on.

Photo of Martin ManserghMartin Mansergh (Tipperary South, Fianna Fail)
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I do not have information on who exactly will be involved. I will communicate with the Deputy on the matter. I am not clear whether persons outside the Department or public service will be involved. In principle, an action group is established to oversee implementation of a report with detailed recommendations. It is normal, in terms of bureaucratic procedure.

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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Will the body be answerable to this House?

Photo of Séamus KirkSéamus Kirk (Louth, Ceann Comhairle)
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We need to move on.

Photo of Martin ManserghMartin Mansergh (Tipperary South, Fianna Fail)
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I am sure the Minister will answer questions in relation to the group once its deliberations have made a degree of progress.

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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That will be a first.