Patrick O'Donovan (Limerick County, Fine Gael) | Oireachtas source

The National Tourism Development Authority (Amendment) Bill 2015 provides for an increase in the upper limit that applies to the overall capital funding that can be voted to the National Tourism Development Authority, which is known to us all as Fáilte Ireland, for the purposes of supporting the development of the tourism product. As this Bill has been certified as a money Bill, tight constitutional deadlines apply to the return of Seanad recommendations to the Dáil. I thank Senators for allowing all Stages to be taken today in Seanad Éireann, thereby facilitating the swift passage of this short but important Bill.

The National Tourism Development Authority Act 2003 provided for the dissolution of Bord Fáilte Éireann and CERT Limited and the establishment of the National Tourism Development Authority, Fáilte Ireland. Section 24(1) of the 2003 Act gives the Minister for Transport, Tourism and Sport, with the consent of the Minister for Public Expenditure and Reform, the power to "advance to the Authority out of moneys provided by the Oireachtas such sums as the Minister may determine". Section 24(2) of the Act limits the total amount of money that can be advanced to Fáilte Ireland by the Minister over a series of years for "capital expenditure on projects or enterprises". It is important to note that this limit refers only to the total cumulative cap on capital funding that may be advanced by the Minister to Fáilte Ireland in support of the development of the tourism product. It is an enabling provision rather than an allocation. It is important to note that it is not an allocation.

Specific Exchequer allocations to Fáilte Ireland continue to be made in the normal way through the annual Estimates and budgetary process. The limit on total capital funding was originally set at €65 million but was later increased to €150 million under the National Tourism Development Authority (Amendment) Act 2011.As things stand, total capital investment in tourism by Fáilte Ireland from the Exchequer allocation has almost reached that limit. Once the spending limit has been reached, no further voted capital moneys can be advanced to Fáilte Ireland for tourism capital investment projects. Accordingly, it is necessary now to legislate to increase the limit.

The Bill takes into account the allocations under the Government's capital plan, Building on Recovery: Infrastructure and Capital Investment 2016-2021. The Bill proposes raising the limit to €300 million to cover anticipated allocations over the lifetime of the plan. To reflect changes in ministerial roles and responsibilities since the legislation was last amended, the Bill also clarifies that it is now with the consent of the Minister for Public Expenditure and Reform, rather than the Minister for Finance, that the Minister may advance moneys to Fáilte Ireland.

Tourism is a growing industry and a key contributor to our overall economy. It creates jobs and generates earnings in communities throughout Ireland, especially in rural areas. The year 2015 was the fifth successive year of growth for Irish tourism. Central Statistics Office figures for overseas travel show a new record high of over 8.6 million visits to Ireland during the year. Expenditure in 2015 by overseas visitors, excluding carrier receipts, amounted to over €4.2 billion, an increase of over 18% on 2014. When combined with spending by domestic tourists, total tourism expenditure was worth over €5.7 billion to the Irish economy. The tourism and hospitality sectors now employ an estimated 220,000 people and provide a wide range of opportunities to access the labour market. Things are certainly moving in the right direction but this is no time to rest on our laurels. We need to capitalise on this positive momentum to drive further growth and maximise returns.

Continued capital investment in our tourism product is essential to maintain our competitive position. We must provide for continued investment in the further development of our tourism offering in line with visitor expectations to stand out in a crowded international marketplace. With this in mind, Fáilte Ireland is continuing to develop the signature experience brands, including the Wild Atlantic Way, Ireland's Ancient East and Dublin: A Breath of Fresh Air. They have the necessary scale and impact to stand out internationally and give Ireland a strong base for promotion overseas. Fáilte Ireland is also considering how best to develop and progress a new proposition for the lakelands.

Capital allocations for tourism product development will provide for continued investment in these experienced brands through the development of attractions and other tourism infrastructure. In parallel, current expenditure on tourism will further enhance, animate and promote these key experienced brands by funding businesses, supports, training, festivals and other related programmes. The Government's capital programme sets out the framework for capital investment in the coming years. This will allow Departments and agencies to plan investment over the medium term and longer term. The programme provides for approximately €125 million for expenditure on tourism product development up to 2022, with investment rising significantly as time progresses.

The existing spending cap set out in legislation is insufficient to provide for the anticipated annual allocations over the life of the capital programme. Without this revised proposed legislation no further voted Exchequer moneys can be advanced to Fáilte Ireland for tourism and capital investment projects once the existing limit has been reached. Accordingly, I am bringing forward the Bill to make the necessary legislative changes. I commend the Bill to the House.