Frank Feighan (Fine Gael)

I welcome the Minister of State to the House. I support the motion that notes with alarm the publication of a notable American Express holiday cost of living index, which revealed that Ireland now ranks second only to Norway as the most expensive holiday destination in Europe. How times have changed. Only 15 or 20 years ago in the west of Ireland from where I come beside Lough Kee Forest Park, we were very used to Germans holidaying on the river Shannon and we took them for granted. We thought they had endless amounts of money. We also saw the American bus tours passing through the town. They used to stop off at the abbey and gave small tips. I had a newsagent shop selling Belleek pottery and small gifts. As a town with a Cistercian abbey and much history we had a booming tourism industry at the time.

However, in the past 15 years there has been a lack of investment in the Lough Kee Forest Park and Americans no longer seem to pass through the town. While people may say the country has a booming tourism industry, in those pockets, which used to have such an industry, nothing is now happening. This may be because we have become affluent and the Americans and Germans do not seem to have the money we apparently have or it may be because they are finding better value, which is what I believe. They are finding better value because we have failed to keep an eye on our costs.

Let us consider what is termed "Rip-off Ireland". Perhaps Senator Leyden highlighted it in his name and shame campaign. Fine Gael launched a website, www.ripoff.ie. While I take no pleasure in introducing a website in which people highlight being ripped off, the rip-off is evident. The Minister for Arts, Sport and Tourism, Deputy O'Donoghue, took issue with this campaign and said we should not be saying such things. It is not unpatriotic to point out areas where there is not good value. It does the country a service. A few weeks ago a delegation from North West Tourism appeared before the Oireachtas Joint Committee on Arts, Sport and Tourism, Community, Rural and Gaeltacht Affairs. The CEO dared to suggest we should not be highlighting this matter as it sends out the wrong message. However, the fact is that Ireland has become too expensive.

I agree that there are some positive aspects. Years ago we only had a few quality hotels and we now have many good hotels, which provide good value. However, the people being caught out are the bars, restaurants and small bed and breakfasts, which cannot compete on economies of scale. They have not increased their prices simply because they are out to make money, rather, they have increased them because rates and the cost of insurance and electricity have increased.

As Senator O'Toole pointed out, regulation has driven many out of business. There is one aspect I very much welcome that is also a major factor in smaller businesses, namely, the minimum wage. Smaller hotels that had a low cost base have now seen those costs go up and are passing them on to the consumer.

Those who cannot compete will suffer. However, if one looks around the country, one sees that most towns, restaurants and pubs are now run not by Irish people but by Indians, Chinese or other foreign workers, who frequently put no value on their time. I came from that business and did not put value on my time either. I remember doing a course with the Bank of Ireland many years ago and thought that we were making money. The man said that I worked approximately 70 hours a week, my mother 75 and my father 70. He said that, if I received the then minimum wage, I would be making more working for McDonalds, and he was right. Many Irish people involved in tourism are moving out of it because there is no money to be made.

The alternative is to hike up the prices. That has been brought on by affluence, but also by the Government, which, while it has done a little, has not done enough regarding regulations and the increase in rates.

The Minister has claimed that we are bringing more tourists into the country. I accept that many initiatives have helped. I see that over €6 million of European funding is coming into Lough Key Forest Park, which is excellent. However, we must thank Michael O'Leary of Ryanair, who has brought in tens of thousands of tourists.