Michael Moynihan (Cork North West, Fianna Fail)
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To ask the Minister for Transport, Tourism and Sport his views on the recent report from the Irish Hotels Federation which indicated that hotels here are carrying a total debt of €6.7bn; his views on the need for hotels here to attract new investment and the proposal contained within the report for a limited form of tax relief to attract such investment; and if he will make a statement on the matter. [45193/12]

Leo Varadkar (Dublin West, Fine Gael)
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I have noted the recent publication of the report “Proposals to Restore Financial Sustainability to the Irish Hotel Industry” by the Irish Hotels Federation and I was the closing speaker at the Irish Hotel Investment Conference on Tuesday of this week at which the report was discussed. The conference was a welcome development as it examined a range of mechanisms to restore financial stability and a strong equity base to the hotel sector.

The Ahearne report addresses issues of major significance to the future of the hotel sector and I will be reviewing the report and its recommendations in consultation with the tourism agencies over the coming weeks. The three recommendations put forward to address current issues of overcapacity and overleveraging in the hotel sector involve either tax breaks or use of the National Pension Reserve Fund and, as such, have clear financial implications for the Government finances. They are matters that fall to be considered primarily by the Minister for Finance.