asked the Taoiseach in view of the fact that the arts in Ireland are severely under-funded, if he has proposals to further assist bodies promoting art and the arts generally.

I accept that the arts in Ireland are under-funded. As the House is aware, the Arts Council is the main channel for Government financial assistance to the arts. While the 1985 allocation of £5.5 million to the Arts Council may seem inadequate compared with the needs of the arts, it should be pointed out that to have provided for any increase for the council at a time of severe pruning in the Estimates of public expenditure was not an insignificant achievement.

In the past year there have been other substantial developments for the arts generally including: the reduction of VAT on theatre and live performances estimated to be worth £1 million for the first year of the reduction——

That is a joke.

It is not a joke. A sum of £1 million is involved. The developments include the allocation of another £0.9 million for culture and the arts in the Funds of Suitors Act; the inclusion of tax relief for gifts to approved bodies in the arts in section 32 of the Finance Act, 1984 and the recent budgetary provision of £120,000 in connection with European Music Year.

As for the coming year, Deputies will be aware that the rate of value added tax on artists' materials and musical instruments, on picture framing and on sales of works of art in galleries, will be reduced with effect from 1 March from 35 per cent to 23 per cent. Further assistance to bodies promoting art and the arts generally will be available in the coming months and years ahead. In the first instance, the Royal Hospital, Kilmainham, will be available as a major cultural centre for artistic and cultural events. It is envisaged that part of the proceeds of the proposed national lottery will be used for the benefit of arts and culture. This development could have a very significant result, depending on the success of a lottery. On a wider front I am happy to say that I succeeded in getting my fellow EC Ministers of Culture to pass a resolution during our recent Presidency of the EC, urging the use of the European Social Fund for artistic and cultural workers.

I think that the Deputy will agree that the various measures which I have outlined will go a considerable way to augmenting the level of public funding for the arts in Ireland.

In view of the underfunding, how would the Minister of State envisage the promotion of the greater appreciation of the arts in, say, Crumlin where I have the pleasure of opening their art exhibition annually? Also, what sort of percentage of the national lottery does he envisage will be available for art and has he any idea of what that will mean in money terms?

I do not think that I can go into details about what is envisaged to promote the arts in every part of the country, notwithstanding the importance of Crumlin. One area in which we hope to make an advance is the location of art centres in the suburban areas of Dublin and throughout the country. We have not decided on the percentage of the lottery that might be going for the arts but I will push myself and I have no doubt that I will have the support of the House to get a very considerable slice of it.