Ruairi Quinn (Dublin South East, Labour)
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Question 406: To ask the Minister for Enterprise, Trade and Employment the amount of funding given to the Crafts Council of Ireland in 1997 and each year to 2005; and if he will make a statement on the matter. [5521/06]

Ruairi Quinn (Dublin South East, Labour)
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Question 410: To ask the Minister for Enterprise, Trade and Employment the amount of taxpayers money allocated in the estimates to the Crafts Council of Ireland in 2005; the amount spent by the council; the support the council gives the 1,500 plus crafts people on its register of craft enterprise; and if he will make a statement on the matter. [5525/06]

Micheál Martin (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 406 and 410 together.

The Crafts Council of Ireland is an independent, registered company with charitable status, established by the crafts sector itself, both North and South. It is not a body to which I am empowered to give directives. However, by mutual agreement, I appoint the chairperson and four other people to the board, which comprises 15 people in total. Obviously, my influence is substantial, as my Department will financially support only those activities of the council that support national enterprise development policy. In that regard, funding is provided to the council through the national enterprise development agency, Enterprise Ireland, on the basis of an agreement between the council and Enterprise Ireland that the council carry out activities complementary to Enterprise Ireland's policy. My Department, as part of Enterprise Ireland's annual Estimate, approves this funding.

In general terms, the period 1997 to 2005 marked a period of strong growth in the craft industry, with 2001 being the only year in which a fall in craft sales was recorded. Enterprise Ireland report that the amounts, in rounded figures, transferred to the council via Enterprise Ireland, and formerly Forbairt, each year since 1997 are as follows: 1997 —€0.6 million; 1998 —€1.2 million; 1999 —€0.9 million; 2000 —€1.5 million; 2001 —€2.4 million; 2002 —€2.6 million; 2003 —€2.3 million; and 2004 —€2.4 million. Enterprise Ireland reports that in 2005, circa €3 million was transferred to the Council via Enterprise Ireland. This included a once-off payment of €200,000 for the phase 2 development of the National Craft Gallery in Kilkenny. The council also generated own resource income amounting to €381,285 from its activities and received EU funding of €107,184 in 2005.

Actual expenditure on craftspeople in 2005 is estimated at circa €2.4 million, which represents some 70% of the overall budget. This expenditure covered a broad range of activity under the five strategic plan goal headings of design, knowledge, marketing, education, and recognition. The council makes substantial effort to evaluate its activity and set benchmarks for the improvement of service and it makes this information on its performance widely available to clients and stakeholders in its annual reports and published statistics.

Ruairi Quinn (Dublin South East, Labour)
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Question 407: To ask the Minister for Enterprise, Trade and Employment when the work of the Crafts Council of Ireland was last reviewed; if the outcome of the review is available to the public; if he has satisfied himself that the crafts people are getting sufficient support and the taxpayer getting value for the money allocated by him to the Crafts Council of Ireland; and if he will make a statement on the matter. [5522/06]

Micheál Martin (Cork South Central, Fianna Fail)
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The Crafts Council of Ireland is an independent, registered company established by the crafts sector itself, both North and South. It is not a body to which I am empowered to give directives. However, I appoint the chairperson and four other people to the board, which comprises 15 people in total. My influence, therefore, is significant, as my Department will financially support only those activities of the council that support national enterprise development policy.

In respect of reviewing the activities of the council, a formal review by the Department of Finance took place in 1995. The review was not published. The council adopted the principal recommendations. Subsequent to the review, a decision was taken to establish a new supervisory reporting arrangement between my Department, Forbairt — subsequently Enterprise Ireland — and the council. These arrangements are being reviewed and updated in the context of agreeing a memorandum of understanding between my Department, the council and Enterprise Ireland in respect of procedural and policy matters. I expect the memorandum of understanding to be formally adopted within the next two months.

In addition, as part of the strategic planning process, the council publishes reviews, carried out by external consultants, of its strategy. The most recent review was of the council's 2000-03 strategy. Its results were published as a substantial appendix to the current strategy and give details of outputs and outcomes for the council's principal activities for the period.

Exchequer funding is provided to the Council through Enterprise Ireland, on the basis of an agreement between the council and Enterprise Ireland that the council carry out activities complementary to Enterprise Ireland's policy and goals. The council also generates its own resource income from its activities and is in receipt of EU moneys. I understand that in 2005, the council spent circa €2.4 million, or some 70% of its total budget in support of craftspeople, covering a broad range of activity under the five goal headings in their current strategic plan namely design, knowledge, marketing, education and recognition. Furthermore, the council includes a detailed breakdown of client participation in its activities in the annual report. In 2004, for example, 1,238 clients participated in council-sponsored projects, representing around 80% of the council's client base.

In terms of value for money, I am informed that in each year of the current strategic plan, the council has delivered 17 key services that have a direct impact on the promotion and economic performance of the craft industry. This has been achieved with a small core team of 11 full-time and three part-time staff, backed up by contractors providing specialist services when necessary. The council has maintained an expenditure ratio of 30:70 between administration and staff costs and the cost of services of direct benefit to its clients. The council will continue to provide value for money for the State funding it receives on behalf of the craft industry it serves.

Ruairi Quinn (Dublin South East, Labour)
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Question 408: To ask the Minister for Enterprise, Trade and Employment the reason so few of the established crafts people were exhibitors at Showcase 2006; and if he will make a statement on the matter. [5523/06]

Micheál Martin (Cork South Central, Fianna Fail)
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The Craft Council of Ireland is an independent registered company with charitable status established by the craft sector itself, both North and South. It is not a body to which I am empowered to give directives. However, by mutual agreement I appoint the chairperson and four other people to the board which consists of 15 members in total.

Showcase is the council's annual trade fair. The council has responsibility for organising and running Showcase, and I am not involved with matters relating to the organising of this event. I am informed by the council that at Showcase 2006 there were 600 exhibitors of which 165 were client craft manufacturers, representing 11% of the council's client base. Given the investment that attending this four-day event requires, this figure represents a substantial number of exhibitors. The council acknowledges that the number of craft exhibitors attending the fair over the past four years has declined somewhat.

The decline in the number of craft exhibitors at Showcase relates to a trend in the industry which is increasingly opting to sell its manufactures directly to the public through owner outlets or consumer fairs rather than through a retailer. Over the past three years analysis of sales to Irish consumers has shown a decline in the proportion of crafts sold indirectly to domestic consumers through retail outlets, and an increase in direct sales by craft producers to consumers. The value of these direct sales rose by 49% over three years from 2003 to 2005, from €51.9 million to €77.4 million. In the same period, the value of Irish craft sales to consumers made by retailers grew only by 16%, from €46.7 million to €54.4 million.

The surge in the value and proportion of direct sales is driven by the industry itself, as it attempts to secure a greater profit margin on goods sold in a competitive market. However, while this has provided the industry with short term gain, the council believes that to recruit new consumers in the 25 to 35 year old age group, craft companies must increase the current proportion of their goods sold through retail, as the 25 to 35 year age group does not shop in significant numbers outside of mainstream retailers. This view has been confirmed in recent consumer research commissioned by the council. As a result, over the coming year the council will be encouraging the industry to re-balance its proportion of direct and indirect sales and will be actively promoting the use of Showcase as the most effective way to achieve this.

The immediate target set by the council for Showcase 2007 is to restore registered craft exhibitors at Showcase to the level of 2003, that is, close to one third of total exhibitors, and there will be a promotional campaign over the coming year to encourage Showcase exhibition by council clients. The council states that the issue of increasing sales of Irish craft through retail will continue to be a main policy objective in the council's strategic plan for 2007-09.

Showcase is regarded as one of the most important fairs of its type in Europe, and is attended by journalists and buyers from all over the world. Total spend at Showcase 2005 amounted to €31 million and the estimated spend for Showcase 2006 is €35 million.

Ruairi Quinn (Dublin South East, Labour)
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Question 409: To ask the Minister for Enterprise, Trade and Employment if he is satisfied with the content and implementation of its Craft Council of Ireland's strategic plan; the cost of and percentage of the total budget used in the design photography, production and printing of the strategic plan, the 2006 calendar and the most recent annual report; and if he will make a statement on the matter. [5524/06]

Micheál Martin (Cork South Central, Fianna Fail)
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The Craft Council of Ireland is an independent registered company with charitable status established by the craft sector itself, both North and South. It is not a body to which I am empowered to give directives. However, by mutual agreement I appoint the chairperson and four other people to the board which consists of 15 members in total. Obviously, my influence is substantial as my Department will only financially support those activities of the council which support national enterprise development policy.

The council receives funding from my Department through Enterprise Ireland. The policy of the council must reflect Enterprise Ireland's mission and national policy with regard to the development of indigenous enterprises. It is a matter for Enterprise Ireland to ensure that monies disbursed to the council support purposes which are in line with Enterprise Ireland's goals.

The council's strategic plan for 2004-06 was submitted to both Enterprise Ireland and the Department of Enterprise, Trade and Employment prior to publication. In the council's plan, five goals were developed and within these goals, objectives and activities were clearly identified. Council business plans for the period of the strategic plan were then developed based on these goals, objectives and activities. Every council activity conducted during this time is referenced back to the strategic plan and the outcomes and outputs of each activity are published each year in the council's annual reports. Each annual report included a review of all activity undertaken, a breakdown of the spend and an analysis of the beneficiaries who participated in the various council projects broken down by county and gender.

The strategic plan 2004-06 was published in April 2004 and I am informed that the cost of production, including editing, layout, design and print, was €27,294.76 — 0.98% of the overall budget for 2004. There were no photography cost implications because, as with all council publications, images are sourced from the council's image bank — a digital resource of professional images which are taken under the council's photo scheme and exhibition programme. All of the photo scheme images are part funded by the craftsperson, and they are used by both the craftsperson and the council for the purposes of promotion.

Approximately 1,500 copies of the strategic plan were then distributed to key influencers, media, education bodies, cultural bodies and relevant international craft bodies. It was also published on-line in both English and Irish — to date 430 copies of the plan have been downloaded.

I am informed that the cost of the 2006 calendar was €9,179.65 which was 0.25% of the 2005 budget. This works out at €3.06 per calendar. Again all of the images came from the existing council's image bank. The purposes of the council's calendar are to raise awareness of craft, act as a reminder to registered craftspeople of all council date-related activities and events, and provide the craftspeople whose work is included in the publication with a promotional opportunity. Each are given several copies to distribute to buyers etc. Furthermore it encourages more craftspeople to participate in the photo scheme and to get professional photography of their work. To date 3,000 copies have been printed and approximately 2,850 have been distributed. Reaction to the calendar in general has been very positive.

I am informed that the cost of the 2004 annual report was €19,902.21 which is 0.62 % of the 2005 budget. The purposes of the report are to provide an account of all council activity, a breakdown of the figures, and an analysis of the results and beneficiaries broken down by project, county and gender. It benchmarks progress year on year, raises the profile of craft and acts as a partnership document with council clients. Some 2,250 copies of the annual report were printed, of which approximately 2,200 have been distributed.