Éamon Ó Cuív (Galway West, Fianna Fail)
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To ask the Minister for Transport, Tourism and Sport his views on the appropriate level of State funding for sports; his further views on whether it should be set at a particular percentage of gross national product; and if he will make a statement on the matter. [45196/12]

Leo Varadkar (Dublin West, Fine Gael)
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The current financial and economic crisis is having a major impact on public spending across all sectors of society and spending on sport is no different. Several European countries have measured the economic importance of sport but each country adopted different definitions of sport, and used different methodologies, and consequently the results were non-comparable. However, there is growing evidence that sport makes a significant contribution to the economy and is an important driver of growth and employment, while also ensuring social cohesion and well-being. According to a recent EU-wide study, sport accounts for 1.76% of overall gross value added in the EU. When multiplier effects are taken into account, the share of sport is 2.98% of overall gross value added in the EU.

However, I do not believe relating sports funding to either overall gross national product, or the sub-section of same relating to sports activity is the appropriate mechanism to set the level of state funding for sports.

More broadly, an EU Commission study on the financing of grassroots sports in the EU found that financial constraints in the public sector, demographic change and a lack of solidarity between the top and the bottom of the sporting pyramid created a challenging environment for grassroots sport in the future. The study expected a downward trend in revenue from households and private companies (sponsorships, donations) in the short term, and a strong decrease in national budgets for sport.  Because of this downward trend it is important that we create the environment which enables sport to generate its own revenues while at the same time funding sport to the appropriate level that the prevailing economic conditions allow.