Seán Haughey (Dublin North Central, Fianna Fail)

I am taking this Adjournment matter on behalf of the Minister for Arts, Sport and Tourism, Deputy Cullen. I thank Senator Healy Eames for raising this issue, as I welcome this opportunity to advise the House on recent developments on the possibility of Galway again hosting a stopover of the Volvo Ocean Race 2011-2012.

The 2009 stopover of the Volvo Ocean Race in Galway was a very successful event, as the Senator outlined. An economic impact study of the stopover, carried out by Deloitte, found it had a significant favourable impact for the State and the western region in particular. The study found that the overall impact of the Volvo Ocean Race on Ireland was €56 million, almost double the expected impact. I understand the study concluded that the higher than forecasted economic impact was mainly due to the higher than expected number of overseas visitors.

The 2009 Galway stopover was strongly supported by the Government, with funding being provided through the Fáilte Ireland international sports tourism initiative. Some €5 million was provided in 2008 and a further €3 million in 2009 as part of the total Government funding commitment to secure the stopover. The total funding of €8 million provided by Ireland comprised a port rights fee of €5 million, seed funding of €2million to activate the Irish team and secure branding on the boat, and €1 million towards the building of a number of infrastructure items such as pontoons which have remained in place as a legacy after the event. The matter of applying to the organisers of the Volvo Ocean Race to host a stopover of the event is the responsibility of the host port rather than the Government.

In late 2009, Let's Do It Global, the Irish corporate promoters of the event, approached the Government seeking very substantial financial support of €9 million for a bid for Galway to host a stopover of the Volvo Ocean Race 2011-2012. Since then, that proposal and a more recent revised proposal for €6 million have been considered by the Department of Arts, Sport and Tourism and representatives of other relevant Departments and State agencies. There is general support across Departments and agencies for a stopover. However, funding of the level required from outside the existing budget allocations is not readily available for the project. As Senators will appreciate, the current overall Exchequer position is not favourable towards the provision of funding for large-scale sports tourism events. There are pressures on the tourism services budget of the Department and that position is unlikely to change in the next few years.

I am also aware that the current commercial funding environment is difficult and I fully understand why the promoters wish to first secure a commitment to public funds to provide a more attractive and persuasive proposition to potential commercial sponsors. That said, the Minister for Arts, Sport and Tourism believes that the confirmation of one or several private sector sponsors at this stage would be essential to strengthen the promoters' case for State support. The Department of Arts, Sport and Tourism and Fáilte Ireland have always acknowledged that a stopover presents the possibility to again leverage significant economic and promotional benefits across sectors and interests.

I understand that the Minister for Arts, Sport and Tourism wrote to the promoters today putting forward certain views and seeking certain information and assurances in order for the proposal to be properly examined. I gather that a reply was received later this afternoon which, I am informed, is being considered. I will bring to the Minister's attention the points made by the Senator in this debate.