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Dáil
‹ Ceisteanna—Questions. Oral Answers. - Tourist Industry.

Tourism development measures and grant eligibility

Summary

The Minister outlined the Tourism Policy White Paper and tourism initiatives. Flynn questioned the usefulness and eligibility rules of the hotel and guesthouse aid scheme; the Minister defended its scope, grouping and marketing support, and tax-clearance requirement.

asked the Minister for Industry, Trade, Commerce and Tourism the action he proposes to take to help the tourist industry reach its full potential.

Comment on this
Michael Moynihan Minister of State at the Department of Industry, Trade, Commerce and Tourism (Mr. M. Moynihan) Labour Party

The Government's policy for the development of the tourist industry is set out in the White Paper on Tourism Policy which was published at the end of September. The White Paper details the measures proposed by the Government to develop and expand tourism and includes new initiatives in relation to marketing and promotion, access transport and environmental matters. Among these measures is the developmental role to be exercised by the National Development Corporation which will be empowered to make investments in suitable tourism projects.

More recently the Government have introduced a new grant scheme to stimulate capital investment in export tourism hotels and guesthouses in order to improve overall standards and to assist the provision of all-weather facilities. This scheme is designed to encourage additional marketing in overseas markets and complements the promotional and marketing strategies outlined in the White Paper.

Comment on this

I suppose it would be out of order for me to ask if the Minister of State believes that his tourism policy announced in September 1985 is a realistic answer to our tourism industry? I suggest it is not. The Minister made reference to a scheme of providing some capital resources for the provision of sporting facilities for certain types of hotels and guesthouses. Is he aware of the way the application forms being sent to would-be applicants are framed? I put it to him that the scope of the scheme as suggested in the application form sent out by Bord Fáilte is that the scheme is available only to hotels and guesthouses in primary tourist areas and to hotels or guesthouses that have realistic plans to engage in marketing and promotional activities for the export market. I ask the Minister in all sincerity if he thinks a small hotel in the west of Ireland is capable of putting together a marketing strategy for export development over a three-year period to enable it to qualify for this 20 per cent capital cost? Is he aware of the kind of forms being sent out to implement that package he announced in September? Further, is he aware it is suggested in the Bord Fáilte application forms that the individuals applying for such assistance must have tax clearance certificates to be submitted with their applications——

Comment on this
Thomas J. Fitzpatrick An Ceann Comhairle Fine Gael

That is a long question.

Comment on this

I asked the Minister of State one question and he did not reply. Obviously he does not know the answer.

Comment on this

When the Deputy concludes his observations I will reply.

Comment on this

I am asking the Minister of State three questions. Has he seen the application forms being sent out by Bord Fáilte to people who wish to apply for this aid? Is he aware a tax clearance certificate is necessary before applying? Finally, does he think that confining this scheme to primary tourist areas is a suitable way to act in this matter?

Comment on this

In relation to the nature of the application forms for registered guesthouses and hotels, this scheme is generally applicable where the concern engages in promotional and marketing work. Bord Fáilte and the Department are conscious of the position of the smaller registered hotels and they have offered a grouping and brand selling and brand marketing to ensure that these hotels and guesthouses can come within the scope of this new initiative. It is necessary that hoteliers seeking grant aid and taxpayers' money should have their tax affairs in order. If they ensure that their approach to the tax people with regard to payment of VAT and tax is realistic and correct they will get help. I do not believe taxpayers' money should be used in the disbursement of grants to hoteliers who in some cases have refused to co-operate with the Revenue Commissioners in making adequate and proper returns in regard to their takings.

The condition regarding the submission of tax clearance certificates is necessary in the national interest and it will be in the best interests of hoteliers and guesthouse owners. With regard to the provision of amenities, substantial grant aid will be provided during 1986, including the provision of all-weather amenities. If we wish to realise the full potential of the industry we will have to provide all the necessary amenities. It is with that purpose in mind, as well as for the purpose of job generation, that the grant initiative has been introduced. In this way hotels and guesthouses are being helped in their efforts to improve their amenities and standards.

Comment on this