Dáil debates

Thursday, 24 September 2015

Ceisteanna - Questions - Priority Question

Beit Collection

9:30 am

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

1. To ask the Minister for Arts, Heritage and the Gaeltacht if she will provide an update on her efforts to ensure the paintings in the Beit collection remain here; and if she will make a statement on the matter. [32428/15]

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

This question is pretty straightforward. It seeks to establish from the Minister what has happened since we last discussed the particular issue around Russborough House, the very valuable and important collection there, previously in the ownership of Sir Alfred and Lady Beit, and the fact the paintings that were to be auctioned at Christie's have been withdrawn. What has happened in the interim and where do we now stand?

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Last June, the Alfred Beit Foundation took the decision to postpone the sale of the paintings referred to in the Deputy's question in light of a request I had made to it and the emergence of Irish donors who were considering the purchase of some artworks. While conscious and respectful of the independence of the foundation, I welcomed that decision to allow the necessary breathing space to explore other options to keep the artworks in Ireland if possible.

One possible solution could involve the donation of artworks to an Irish cultural institution using tax relief provided under section 1003 of the Taxes Consolidation Act 1997. This tax relief relates to donations to approved bodies of heritage items that are considered outstanding examples of their type and whose export from the State would constitute a diminution of the accumulated cultural heritage of Ireland. Under this scheme, 80% of the market value of the items donated is offset against the current tax liability of the donor. A selection committee chaired by my Department is currently considering a proposed donation of one of the Beit paintings under this scheme.

I met again with representatives of the Alfred Beit Foundation at the end of July. A number of issues were discussed, including issues regarding taxation and other assistance which the State could offer. At my request, my officials have engaged with relevant Departments and State agencies to consider how best Russborough House could be assisted on a long-term basis. A high-level meeting was held last week between officials of my Department, the Office of Public Works and the Department of Transport, Tourism and Sport, together with members of the Beit Foundation, where it was agreed to maintain contact on a range of issues.

While the foundation deferred the proposed sale of the paintings until later this year, it has indicated publicly that the foundation continues to require a significant endowment to secure its future. This may entail selling paintings to put this in place unless donors become available. I have made it clear that my Department does not have the resources to provide for such a fund. My Department will continue to work with all parties, however, to assist the foundation in any way in managing Russborough House.

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Can we establish with certainty then that what the Beit Foundation says it requires is an endowment of the order of €15 million to be able to continue to operate Russborough House successfully? Is it also the case that the foundation made it abundantly clear to the Minister that the tax relief at 80% was not adequate to attract the level of investment required to secure the future of the art assets held at Russborough House and that tax relief needed to be restored to 100%? One would assume there could be sufficient conditionality attaching to any relief at 100% that would guarantee that the entire benefit of that relief accrued to the people. Is it true, as reported by The Irish Timestoday, that the Minister, Deputy Noonan, has refused the Minister's request to increase the tax relief from 80% to 100%?

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context | Oireachtas source

What is important here is that we have to focus on the long-term future and viability of Russborough House and not only around the sale of the paintings. Following a request from the trustees, I wrote to the Minister, Deputy Noonan, regarding the section 1003 tax relief and whether a rate of 100% could be reinstated. The Minister, Deputy Noonan, responded to me to say that it is not his intention to amend the tax relief, noting the fact that 80% of the market value in tax relief is already very generous and that the rate was introduced to ensure there was some philanthropic aspect to donations. Providing tax relief at a rate of 100% on the value of an item would have the exact same impact on the Exchequer finances as if the State were to purchase the item outright. I raised the issue with the Minister and that is the response I got, namely, that the 80% relief is a very attractive tax incentive.

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I was not perhaps great at mathematics but I do not know how the figures the Minister is giving to us could be correct. I suspect that if Russborough House were located in Limerick, we would not be having the particular difficulty we have in this instance. It seems that the Government is quite prepared to allow the Beit Foundation to have to cannibalise itself, in effect, to sustain the house into the future. Will the Minister advise what number of visitors would be required at Russborough House for the foundation to be self-sustaining and to be able to finance itself into the future? I note that something in excess of 1 million people have visited Russborough House since 1978. That does not seem to be an inordinately high number of visitors. The location of Russborough House in the garden of Ireland is quite phenomenal and one would assume that if properly packaged and more effectively marketed by being given the resources by the State, and I am not blaming the foundation for the difficulty, this venue could be far more attractive. It might not be Downton Abbey but it certainly has enormous potential to attract tourists to the area.

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I want to make it clear that Russborough House is an independent trust set up by Sir Alfred Beit. I absolutely respect that they have made decisions themselves and they have looked at this long-term plan. We have met them. We have offered all the support we can. Late last week a meeting was held between the trustees and the interdepartmental steering group that was established by me. They discussed measures which would help the long-term sustainability of Russborough House, including the development of marketing opportunities for the house in the context of Ireland's Ancient East project.

The Alfred Beit Foundation development of a master plan to leverage philanthropic support was also discussed and the OPW is willing to support and advise on this plan. The Department was also updated on the Alfred Beit trustees’ talks with potential donors. I do not have the number of visitors to the house every year but there are opportunities in terms of Ireland’s Ancient East to increase numbers. It is a question of working with the Department and we will give them all the supports necessary. The OPW is very good at running historic houses. It has a lot of expertise in that area and it is happy to make its expertise available to the Alfred Beit Trust. We will continue to work with it and give it all the help we can. That is what we have to do. It is a joined-up approach to the various supports for house owners. The steering group on historic houses was established earlier in the year. It is a question of trying to work with them. There is a huge financial burden on anyone who owns a historic house. We do want to work with the trustees to try to find the best solution possible. We have met them on several occasions. I respect the fact that it is an independent trust set up by Sir Alfred Beit.