Fergus O'Dowd (Louth, Fine Gael)
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Question 17: To ask the Minister for Tourism, Culture and Sport if she has any proposals to alleviate the problem facing a substantial number of hotels that are unable to pay their local authority rates and charges, which is causing severe pressure on the hotels involved and depriving the local authorities of much needed funds; and if she will make a statement on the matter. [36786/10]

Joan Burton (Dublin West, Labour)
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Question 24: To ask the Minister for Tourism, Culture and Sport in view of the threat posed to the tourism industry of unsustainable hotels, and given that the issue was not referred to in the Trading and Investing in the Smart Economy document, the policy the Government has to deal with this crucial issue; and if she will make a statement on the matter. [36689/10]

Bernard Durkan (Kildare North, Fine Gael)
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Question 42: To ask the Minister for Tourism, Culture and Sport the efforts that are being made to incentivise and encourage the hotel and catering sectors which have been severely hit by the economic crisis; if she has received submissions from the sector in this regard; her proposals by way of response in the coming year; and if she will make a statement on the matter. [36686/10]

Bernard Durkan (Kildare North, Fine Gael)
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Question 188: To ask the Minister for Tourism, Culture and Sport if she has received submissions from the hotel and catering industry requesting continued banking facilities in respect of overdrafts and working capital for the hotel and catering industry, particularly in view of withdrawal of an overseas bank from the scene; her efforts to date to address these issues; and if she will make a statement on the matter. [37070/10]

Bernard Durkan (Kildare North, Fine Gael)
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Question 189: To ask the Minister for Tourism, Culture and Sport the extent to which she has engaged with the entire tourism industry with a view to identifying and concentrating on the most important issues now facing the industry in the current economic climate; her proposals to address the issues emerging; and if she will make a statement on the matter. [37071/10]

Bernard Durkan (Kildare North, Fine Gael)
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Question 195: To ask the Minister for Tourism, Culture and Sport if her attention has been drawn to the trading difficulties experienced by the hotel and catering sector in the current climate; if she has offered any encouragement or direct assistance in response; and if she will make a statement on the matter. [37077/10]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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I propose to take Question Nos. 17, 24, 42, 188, 189 and 195 together.

It is the policy of the Government to develop and support the tourist industry in partnership with those bodies, such as the Irish Hotels Federation, the Restaurants Association of Ireland and the Irish Tourist Industry Confederation, that represent tourism businesses. Despite the difficulties in our public finances the Government increased the tourism services budget in 2010 by providing over €153m – an increase of 3% over the 2009 outturn. The Government has also set out significant plans to fund the further development of our tourism product offering. In addition the State tourism agencies are maintaining their marketing drives to attract overseas and domestic tourists to holiday in Ireland.

Economic circumstances are making trading conditions difficult for most businesses at present. These difficult conditions are exacerbated in the hotel sector by an over capacity in supply. This is proving to be a complex situation to resolve and I believe that, inevitably, it will require a market led solution over time. The role of the National Asset Management Agency and other banks holding hotel-backed loans will be an important factor in determining the future of the hotel sector. As I already indicated in reply to earlier questions, I met NAMA on Monday of this week to exchange views on recent developments in the sector, to encourage the agency to take a strategic approach to the management of its hotel-backed loans, to build up their own expertise in the area and to consult with sectoral interests, including the Irish Hotels Federation.

The principal benefit of the NAMA process is the recognition of losses upfront by the participating institutions and the cleansing of the balance sheets of our banks of their most toxic loans. Otherwise this lending would remain on the banks' books representing a major source of risk and instability in the years ahead which would prevent the banking system from playing its essential role in providing the finance required to underpin our economic recovery and fiscal sustainability. The transparency and clarity achieved through NAMA is, I believe, a significant strength in the Government's strategy for the repair and the restoration of the banking system.

The provision and management of finance to hotels, restaurants and other businesses is complex. For some time now business interests, along with other representative bodies, have been urging Government to improve access to credit to SMEs. In order to ensure that applications for credit get a fair hearing, the Government have put in place a credit review system under the direction of Mr John Trethowan to ensure that applications for bank credit by viable businesses (including tourism businesses) are assessed in a reasonable manner by the banks.

In regard to the actions of banks and receivers in relation to support for unviable borrowers, Section 66 (1) (a) of the NAMA Act was included to ensure that applicant institutions continue to service loans in the same manner as a prudent lender. Where specific instances of institutions participating in NAMA are identified as supporting non-viable hotels in order to keep them open in an imprudent manner, these instances should be referred to the Department of Finance for its attention.

I am aware of the difficulties that many hotels and restaurants are facing in meeting the cost of local authority charges and have written to the Minister for the Environment, Heritage and Local Government regarding these costs. I am informed by that Department that local authorities have taken a number of steps to support local business and employment generally. They have also implemented some reductions in their own cost base with a view to reducing the need to increase charges on businesses, and indeed some local authorities have reduced their rates in recent times with a view to trying to support and stimulate employment in their area. However, many businesses - including those in the tourism industry - are still struggling to meet the cost of local authority charges. Given that the Deputies' parties have a majority on most of the city and county councils, I urge you to do everything in your power to ensure that your councillors consider the needs of employers when setting their annual budgets, with a view to supporting jobs for local people.

In acknowledgment of the difficulties faced by the tourism sector, the Government, through Fáilte Ireland, is investing over €11 million in 2010 in the form of direct supports and advice for tourism enterprises nationally. The key elements of Fáilte Ireland's enterprise development supports include:

A comprehensive €3.6 million Business Support Programme helping businesses to grow their 'top line' while also tackling their cost base through a combination of restructuring debt and building greater liquidity into their businesses, as well as permanently re-engineering their business processes;

A suite of Management and Skills Development training programmes to tourism clients;

Measures to better develop, manage and promote tourism destinations, including promotion of networks and marketing partnerships with trade groups in destinations;

Strong e-Business Supports to underpin Fáilte Ireland and industry marketing activities, the delivery of enhanced visitor services and the availability of new online learning tools for industry clients.

Tourism Ireland is also 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. In the US, a seat sale is currently under way in gateway cities promoting Autumn/Winter fares from as low as $199 each way. Meanwhile, in Europe, over 16 million potential visitors will see the 'Ireland – More for Less' promotion on the Ryanair website over the coming months. Car touring campaigns with the ferry companies are also encouraging visitors to take their own cars to Ireland. At home, Fáilte Ireland's €4 million home holiday marketing is continuing with the Autumn campaign launched during September.

With the limited resources available to Government it is not always possible to meet every request for assistance but I believe from my own contacts that the tourist industry generally supports the Government's broad policies for development of the industry. In recent weeks I have received copies of the pre-Budget submissions from a number of representative bodies to the Minister for Finance. I will certainly ensure their priorities receive due consideration in the formulation of next years' budget. As Minister for Tourism, Culture and Sport, I will continue to engage in regular consultation with the industry so that the support provided by the State tourism agencies and the Department are both relevant and effective.