Olivia Mitchell (Dublin South, Fine Gael)
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Question 4: To ask the Minister for Arts, Sport and Tourism his views on the future viability of the restaurant sector; the discussions he has had regarding the competitiveness issues affecting the industry in view of the importance of gastronomy to the tourism industry; and if he will make a statement on the matter. [47911/09]

Martin Cullen (Waterford, Fianna Fail)
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The restaurant sector, like all businesses in tourism and hospitality, has had a very challenging year in 2009. Prior to the budget, the Restaurants Association of Ireland launched a ten-point plan to protect employment, create new jobs and ensure the viability of the sector. In September last, I met the president and the chief executive of the association and discussed key issues of concern to them, including competitiveness issues.

The budget has responded to a number of the issues raised by the association as follows: the reduction in excise duties on alcohol and VAT; the introduction of an enhanced scheme of accelerated capital allowances for energy efficient equipment to include catering and hospitality equipment; an increase in the tourism services budget of 2% to over €155 million in 2010, including maintaining the level and value of investment in tourism marketing in real terms; and a rail travel initiative aimed at senior citizens visiting Ireland from abroad.

In addition, the Tánaiste and Minister for Enterprise, Trade and Employment recently extended eligibility of the employment subsidy scheme to include the tourism and hospitality sector. She has also established a credit review system for all SME sectors, including tourism, and has extended the work placement scheme to include small businesses. Furthermore, my colleague, the Minister for the Environment, Heritage and Local Government has also commenced the process of examining the burden of local authority charges on business through the establishment of a local government efficiency review group to review the cost base, expenditure of and numbers employed in local authorities. This group is due to report by the middle of next year.

Aside from the budget and related initiatives, Fáilte Ireland is working closely with businesses to help them survive the recession and emerge prepared to take advantage of the anticipated upturn in the medium term. Specifically, Fáilte Ireland is providing a range of business support services, including a business mentoring and coaching service, and a business advisory service, as well as the Optimus programme and Performance Plus, which are on-line business tools. In the restaurant sector specific supports being provided by Fáilte Ireland include a chefs' workshop programme to cut costs and increase profitability; a front of house productivity programme; a quality food toolkit CD resource; a workshop on financial management for restaurants addressing topical issues, including cash-flow, negotiating with key suppliers, re-negotiating key contracts, including leases and dealing with banks and investors in accessing credit and investment cash; and the production of an employment law compliance case studies and guide.

Fáilte Ireland is also leading and working with Government Departments, agency partners and industry stakeholders, including the Restaurants Association of Ireland to position Ireland as one of the world's outstanding authentic food tourism destinations and to position Irish food experiences at the core of Ireland's tourism brand. Fáilte Ireland plans to engage with the RAI early in the new year to discuss a number of actions and interventions for 2010.

Olivia Mitchell (Dublin South, Fine Gael)
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I thank the Minister for his reply. I do not need to remind him what an important part of the tourism industry the restaurant sector is. It supports approximately 64,000 jobs. According to the restaurateurs themselves, at least one in three of them is in danger of closing within the next few months. That will not come as a surprise because in every town and city, including Dublin, restaurants are closing down regularly. Their main problem is that costs are too high. One of the issues they have raised is that of higher payments for Sunday working. I understand that there have been some improvements from double time down to time and a third, but the whole structure of the catering industry pay rates seems to be a real barrier to survival for many such firms. Has the Minister made representations to the Tánaiste and Minister for Enterprise, Trade and Employment in this regard? Are there any proposals to try to bring such costs down to a more realistic level in the current situation, so that they would at least compare favourably to what other similar countries are charging? I am not asking the Minister to compare the situation with poorer countries, but with what similar countries are paying.

The other complaint concerns fat traps. Can the Minister make representations to local authorities about that? These are traps that must be installed by law to catch grease in restaurants. It is expensive to install them but it can cost almost €1,000 to have them monitored by a private company, even though the environmental health officers come out for other purposes. This adds to the cost of running a restaurant, along with waste licences. Another money spinner for local authorities are the outdoor seating areas. That was fine in the good times, but they are putting businesses out of work now. Is there anything the Minister can do, such as talking to local authorities about the importance of this for the economy? We must all put our shoulders to the wheel now.

Martin Cullen (Waterford, Fianna Fail)
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In fairness, I have outlined a substantial range of actions that are being undertaken. I know they are appreciated. We are a lot of the costs for for the sector also. In addition, we will carry much of the cost to allow them to promote abroad, including attending some trade shows. I acknowledge the direct role played by the Tánaiste on Sunday trading, after much discussion with myself. There is no doubt that it was a major issue and a major move forward has been made. I agree with the Deputy that it is not sustainable that Sunday trading would incur an extra cost. We have all moved to a seven-day week, so we will have to renegotiate this across the entire workforce to remain competitive. It will have to come to the next step, and I hope that by negotiation in the near future it will be seen as a normal rotation of whatever constitutes a 40-hour week. That is the way it has to be.

Olivia Mitchell (Dublin South, Fine Gael)
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The Minister says he agrees with it, but what exactly can he do to bring that about? Is there anything he can do?

Martin Cullen (Waterford, Fianna Fail)
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Like the Deputy, I have acknowledged that forward movement has been made.

I think we both agree that it must become normal working hours. I will keep the pressure on to do that. I have spoken to my colleagues in Cabinet to try to keep the issue moving, particularly now that we find ourselves very challenged. I am not surprised that many businesses, including restaurants, are extremely challenged. This is not just because of what has happened here, but because of the situation with regard to the global economy. We must do everything we can to try to keep those restaurants open.