Written answers

Thursday, 14 October 2010

Department of Arts, Sport and Tourism

Credit Availability

5:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 187: To ask the Minister for Tourism, Culture and Sport the extent if any to which she has interceded with the banking sectors with a view to the provision of adequate overdraft or working capital facilities for the tourism, sporting and cultural sectors; the extent if any to which she has received any response; and if she will make a statement on the matter. [37069/10]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 190: To ask the Minister for Tourism, Culture and Sport to indicate the extent to which she has had discussions with the employers throughout the sector for which her Department has responsibility with a view to safeguarding existing jobs and job creation, the extent to which a plan has been formulated if any; and if she will make a statement on the matter. [37072/10]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 191: To ask the Minister for Tourism, Culture and Sport the degree, if any, to which she has examined the tourism, cultural and sporting sectors with a view to safeguarding the existing employment and or creating new jobs; the extent, if any, of her discussions in this regard with the principles involved; and if she will make a statement on the matter. [37073/10]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 194: To ask the Minister for Tourism, Culture and Sport her plans if any for the utilisation of the tourism, sporting and cultural sectors for the promotion of the principle of job retention and creation; and if she will make a statement on the matter. [37076/10]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 196: To ask the Minister for Tourism, Culture and Sport if her attention has been drawn to any trading difficulties experienced or direct assistance in response to the employment numbers in the arts, cultural and sporting sector; and if she will make a statement on the matter. [37078/10]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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I propose to take Questions Nos. 187, 190, 191, 194 and 196 together.

The Government has already introduced wide-ranging measures to promote the flow of credit within the economy, including the introduction of the Bank Guarantee Scheme, the 2009 Recapitalisation Scheme, the nationalisation of Anglo Irish Bank and the establishment of the National Asset Management Agency. These have all contributed to the stabilisation of the banking sector with a view to facilitating the flow of credit.

The 2010 Recapitalisation package builds on these earlier initiatives and includes additional support for enterprises, including small-to-medium sized enterprises (SMEs). In particular, AIB and Bank of Ireland have both committed to making available not less than €3 billion each for new or increased credit facilities to SMEs in both 2010 and 2011, including funds for working capital for businesses. Furthermore, the Credit Review Office was established to ensure that the banks are not refusing credit to viable businesses.

In addition, my Department has been actively participating in the work of the Credit Supply Steering Group, which has been examining the availability of credit generally to businesses. The Irish Hotels Federation is also represented on this Group together with other representative groups, Government Departments and the banks.

With specific regard to tourism, culture and sport, safeguarding existing jobs and supporting job creation can only be achieved by promoting the robustness and vibrancy of these sectors. I have sought at every opportunity to do just that.

It is Government policy and mine as Minister with responsibility for the sector to develop and support the tourism industry in partnership with those bodies, such as the Irish Hotels Federation, that represent tourism business. Despite the difficulties in our public finances, the Government increased the tourism services budget in 2010 by providing more than €153 million, which is an increase of 3 per cent over the 2009 outturn.

The State tourism agencies are maintaining their marketing drives to attract overseas and domestic tourists to holiday in Ireland. Tourism Ireland is continuing its marketing activities in Great Britain, mainland Europe and North America this Autumn highlighting ease of access, great fares and offers from the industry and showcasing the wonderful holiday experiences available here. Here at home, Fáilte Ireland's €4 million home holiday marketing programme is continuing with the Autumn offering launched during September.

In 2010, Fáilte Ireland is investing more than €11 million in the form of direct supports and advice for tourism enterprises. Business supports are aimed at assisting key tourism businesses to increase their international customer base, better manage their cost base, improve overall performance and sustain employment levels.

The Government further demonstrated its commitment to tourism by its inclusion of tourism in a range of cross-cutting measures – including the Employment Subsidy Scheme, the Work Placement Programme, the Credit Review System and incentives for investment in energy-efficiency – all of which support sustainable tourism enterprises and employment.

Tourism businesses accessed the second call for applications under the Employment Subsidy Scheme, under which total support of €65 million is available to protect vulnerable employment. The take-up of this scheme in the hotel sector was very strong. Further specific measures that are helping tourism include the changes in alcohol excise duties and VAT and the free rail travel initiative aimed at senior citizens visiting Ireland from abroad. The reduction in alcohol excise duties will result in lower hospitality costs to our visitors.

With regard to culture, the Government and I remain committed to supporting and funding this sector within financial resources to ensure the maintenance of as much employment as possible. My policy is to promote and strengthen the culture sector in all its forms, increase access to and participation in culture, make culture an integral and valued part of our national life, and maximise the potential for cultural tourism, including employment. I will endeavour to maximise funding for these sectors, given its centrality to our economic and social well being.

The sports sector is also a major contributor to the economy, a contribution which includes sports tourism, ticket sales, subscriptions and the cost of playing sport, together with the purchase of sports equipment and an economic value of time given by volunteers. There is also a very extensive financial dividend to be obtained through the success of major sporting events, particularly those with an international dimension. With specific regard to employment, the Irish Sports Council, through its grant funding to the National Governing Bodies, supports a large number of jobs throughout the country. The Department's capital expenditure, through its Sports Capital Programme and Local Authority Swimming Pool Programme, is also a major contributor to employment.

Across the tourism, culture and sport sectors, I remain in ongoing contact and consultation with the key stakeholders so that my Department's policy and other responses to the needs of these sectors remain current, proportionate, targeted and effective.

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