Bernard Durkan (Kildare North, Fine Gael)
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Question 263: To ask the Minister for Transport, Tourism and Sport the likelihood of increased employment arising from expansion of business in the catering sector in the course of the current year; and if he will make a statement on the matter. [9104/12]

Bernard Durkan (Kildare North, Fine Gael)
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Question 264: To ask the Minister for Transport, Tourism and Sport the total number of persons employed in the hotel and catering sectors at all levels; the extent to which employment can be increased in these sectors over the coming 12 months; and if he will make a statement on the matter. [9105/12]

Bernard Durkan (Kildare North, Fine Gael)
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Question 265: To ask the Minister for Transport, Tourism and Sport the extent to which costs in the tourism sector has been isolated with a view to identification of factors likely to inhibit business expansion and employment creation; and if he will make a statement on the matter. [9106/12]

Leo Varadkar (Dublin West, Fine Gael)
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I propose to take Questions Nos. 263 to 265, inclusive, together.

The Government made a concerted effort to reduce the cost base of the tourism sector through the 2011 Jobs Initiative which introduced a reduced 9% VAT rate from July 1st on a range of services, including hotels and restaurants. The Government also halved employers' PRSI for those on modest wages and introduced a visa waiver scheme that makes Ireland more accessible for tourists from important new and emerging markets. These measures were aimed at supporting the creation and maintenance of employment within the tourism sector as well as helping tourism businesses lower their cost base, and allowing them to offer a more competitive product to tourists.

The Central Statistics Office measure employment in accommodation and food service activities and the latest seasonally adjusted figures are from quarter three of 2011 when 109,700 were employed in the sector. Fáilte Ireland's most recent estimate of the numbers employed in the broader tourism and hospitality sector is approximately 180,000 people. At this stage it is too early to accurately assess the impact of the Jobs Initiative and it will be later this year before we can form a view on the effect of these measures on employment. I am, however, pleased to report that overseas tourism numbers have increased by almost 7% to the end of November in comparison to the same period last year. I am also encouraged that employment in accommodation and food service activities, as measured by the CSO, increased by 6,000 over the six month period to end September 2011.

The Irish tourism industry is cautiously optimistic about its prospects and performance for the year ahead and Tourism Ireland is targeting growth in overseas visitor numbers of 4.5%.I would hope that this will result in improved job creation during the course of the year.

Bernard Durkan (Kildare North, Fine Gael)
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Question 266: To ask the Minister for Transport, Tourism and Sport the extent if any, to which he has had discussion with the banking sector with a view to ensuring the availability of adequate working capital for the hotel and catering sectors particularly those whose bankers have withdrawn from this jurisdiction; and if he will make a statement on the matter. [9107/12]

Leo Varadkar (Dublin West, Fine Gael)
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I have not held discussions with the banking sector on the issue referred to by the Deputy and the primary responsibility for the restructuring of the banking system is held by my colleague, the Minister for Finance. In this regard, I am informed that under the restructuring plan for the two Pillar Banks, Bank of Ireland and AIB, both banks were required to sanction lending of at least €3 billion in 2011, €3.5 billion this year and €4 billion in 2013 for new or increased credit facilities to SMEs. Each bank has informed the Department of Finance that they have met their lending targets for 2011.

The Minister for Jobs, Enterprise & Innovation is putting in place a Temporary Partial Credit Guarantee for viable companies currently unable to access credit due to lack of collateral or the novelty of their business proposition. A Microfinance Fund to provide loans to small businesses is also being developed by the Minister for Jobs, Enterprise & Innovation, which will generate up to €100 million in additional micro-enterprise lending which will benefit over 5,000 businesses over a ten year period. These initiatives are not designed to replace current lending through the banking system but to provide additional lending where specific measures are warranted.

In addition, in conjunction with the Minister of State for Small Business, the Head of Banking Policy Division in the Department of Finance is holding a series of regional meetings to discuss access to bank credit with key local stakeholders. These meetings will complement the information provided by the recent Mazars credit demand survey and better inform the design and implementation of future Government policies on credit to the SME sector. The first of these meetings were held on 3 February in Dundalk and Dublin. My Department and Fáilte Ireland have taken part in these consultations.