Ned O'Sullivan (Fianna Fail)

I welcome the Minister of State to the House. I have observed him to be a man of great energy and to have a very positive outlook. Those are qualities which are eminently suitable for a person representing Ireland in the world of international tourism.

We in Fianna Fáil will support the Bill. It is quite sensible. The current cap is close to being exceeded and will be in the very near future. The figure of €150 million appears to be reasonably realistic and those of us on this side of the House have always supported infrastructural investment, particularly in tourism. The Minister of State's figures are about right compared with the original estimate or cap for the Irish film Board of €4 million which has now jumped to €20 million, which is a realistic and logical figure.

Investment in tourism capital infrastructure is important. The tourism product development strategy 2007 to 2013 placed major emphasis on capital infrastructural works subject to an audit on all existing tourism products, events and activities. The Irish tourism industry is at a critical point, as the Minister of State will appreciate. We have had several years of decline, particularly in the year when we had the volcanic ash cloud, but the figures for July to September of this year are quite positive. I was glad to hear the Minister of State say that trend appears to be continuing. However, we cannot rest on our laurels because anecdotal evidence at least shows there are difficulties throughout the year in terms of the UK market despite the figures the Minister of State gave. That is the anecdotal evidence I hear from people in the industry in County Kerry and that is worrying because UK visitors were always an important segment of our tourism market.

It is difficult to see how we can achieve growth in tourism at a time of global recession. That is the reason we welcome this Bill all the more because it indicates that the Government is moving in the right direction and will provide moneys for essential important products.

Other concerns are Government-made. Despite the improvement in the VAT regime for the tourism industry, I am concerned about the proposal to inflict the first four weeks of sick pay on employers. This would have a serious negative impact on labour-intensive industries such as the hotel industry. I can see it being a major problem if the Government proceeds with it. It was shocking and sad to read in this morning's newspapers that Ashford Castle in the Minister of State's constituency had gone into receivership. It is a flagship hotel which offers a great service and has outstanding staff. If it is in trouble, will there be many more behind?