Robert Troy (Longford-Westmeath, Fianna Fail)
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Question 1: To ask the Minister for Arts; Heritage and the Gaeltacht if he will detail reductions in expenditure announced in the Capital Spending Review 2012 - 2016 related to his Department; and if he will make a statement on the matter. [36915/11]

Jimmy Deenihan (Kerry North-West Limerick, Fine Gael)
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Under the Capital Investment Plan 2012-2016, capital expenditure by my Department is estimated to total some €190 million, comprising €44 million in 2012, €38 million in 2013 and €36 million each year for 2014, 2015 and 2016.

With regard to the specific details of this expenditure, I am currently prioritising plans within the context of the forthcoming budget. However, I anticipate that expenditure will focus in particular on supporting jobs in the film and TV sector, and in the Gaeltacht. It will also seek to target investment in priority areas in the culture and heritage sectors that will support cultural tourism as one of the most important elements of Ireland's tourism product.

Expenditure will also be directed at ensuring compliance with EU directives, including investment in alternative solutions for those affected by the cessation of turf cutting in Special Areas of Conservation. Other investment will support the built heritage, strategic developments in our national parks and the development of our waterways in the context of the implementation of the Good Friday and St. Andrews agreements.

Robert Troy (Longford-Westmeath, Fianna Fail)
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I thank the Minister for his reply. A recent Indecon report cited the ability of arts organisations to support employment, which is directly related to the overall income of such organisations. The report also said this has recently been impacted by the constraints in public finances and the collapse in consumer demand. The Minister is now saying that in the coming years we will see significant reductions in the arts budget. The Indecon report, the recent creative capital report and others all state that there is scope for the arts sector to create jobs. Despite a serious cutback in departmental investment in the arts sector, is the Minister satisfied we will still be able to realise the job creation we so badly need? Independent experts have signalled that the arts industry is due to grow, so should we not at least maintain our current level of expenditure for that sector?

Jimmy Deenihan (Kerry North-West Limerick, Fine Gael)
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I remind the Deputy that we are dealing with capital funding, not current expenditure which has yet to be decided. Hopefully, the arts, heritage and Gaeltacht areas will not take a big hit. I remind the Deputy that my Department was an amalgamation of a number of other departmental sections. The arts, for example, came from the former Department of Arts, Culture and Tourism. The arts budget was reduced from €78 million to under €32 million from 2008 to 2011, under the previous Government. Meanwhile, heritage was reduced from €63 million to under €11 million this year, a drop of 83%, again under the Deputy's party's Government. The budget for the Gaeltacht and islands was reduced from €73 million in 2008 to €12 million this year, which is minus 83%. Even the North-South body's budget was reduced from €11 million to €6 million this year, a reduction of 45%.

I have therefore come from a very low base where massive capital funding reductions have already been impacting on this Department. Hopefully, we will fare better with current funding. I hope to make up some of the loss from the taxpayer by encouraging philanthropists to invest and others to become involved in the arts. In the budget I hope to set up a mechanism through which philanthropy will be encouraged. In addition, we will also get funding from other sources.

I agree with the Indecon report. I have been saying for years that there is a major multiplier in the arts. For every euro invested there could be a tenfold return, which makes perfect sense. Hopefully, current funding will not impact as much as capital funding. In defence of previous Governments, over €1 billion in capital funding has been invested in arts projects, including creative spaces, in this country over the past decade. There has been a major investment therefore in capital projects in the arts, heritage and to a lesser extent in the Gaeltacht areas in the last ten years.

The important thing now is to retain current funding as much as possible so we can retain staff in places like arts centres. We must also ensure there are programmes they can pursue. In addition, Arts Council funding must be protected as much as possible as it funds the majority of these community groups, events and centres around the country.