Committee Reports > List of Committees > Dáil > 1987 > Committee on Public Expenditure > Report No. 23 - Review of Public Expenditure on Tourism

Appendix IV

Department’s Statement to the Committee on Public Expenditure

Chairman,

The Department welcomes the opportunity of meeting your Committee and assisting you in your consideration of State expenditure and policies in relation to tourism.

As you know, the Government in the White Paper on Tourism Policy published in September 1985 underlined the importance that they attach to tourism - one of the country’s largest industries. In that document the potential of tourism to create wealth within the economy was clearly recognised. In particular, the Government indicated that they were giving priority to tourism. There have been important developments in the last year in the key areas of taxation and access transport to give affect to this. The Government also stressed the need for positive and co-ordinated policies to bring together the many strands that impact on the industry so that the State’s investment in tourism can become more cost-effective.

As is evident from the White Paper the Department has a vital role to play in the development of the tourist industry. Its responsibilities in this regard cover a wide range of activities including:

-the on-going assessment and revision of policies,

-the implementation of agreed policies mainly through Bord Failte and through liaison with other Departments of State,

-the review and up-dating as required of the Tourist Traffic Acts,

-the monitoring and assessment of Bord Failte’s carrying out of their statutory functions of promotion and development,

-contributing, as appropriate, to all other areas of Government policy that impinge upon tourism, and

-keeping in touch with significant developments in tourism that could have implications for Government policy.

In carrying out these varied functions, the Department is in regular contact with Bord Failte and has put in place a number of mechanisms to assist, in particular, the assessment and monitoring of the Bord’s activities. Expenditure in each of the Voted areas is reviewed at regular meetings between the Department and Bord Failte. Based on the Departments own evaluation of expenditure and taking into account discussions with Bord Failte budgets are proposed.

Other formal controls applied to the Bord include their presenting an Annual Report and statement of accounts which is a statutory requirement and their submitting each year a revised 5 Year Plan, which is reviewed with the Department.

Policy issues are also reviewed at regular liaison meetings between the Department and the Bord.

The Department in exercising its responsibilities in relation to tourism is very conscious of the need to ensure the cost-effectiveness of all expenditure arising out of activities undertaken by the Bord. In this respect, the Department supports the Bord’s rationalisation measures aimed at transferring, expenditure on fixed overheads into promotion and advertising in overseas markets.

Your committee will be aware of the independent examination of tourism currently being carried out by consultants on behalf of the Government. The consultants, in the course of this assignment, will be examining all directly tourist-related public expenditure. Accordingly, the scope of this exercise extends beyond Bord Failte to include the tourism activities of other State Agencies prominently involved in the industry.

More importantly the consultants are being asked to consider the options for development of tourism in the future and to consider by reference to the position in Ireland and what is being done elsewhere, the policies and strategies which would maximise the growth of the industry and its employment in the future.

We as a Department welcome the Public Expenditure Committee’s input into the continuing evaluation of the State’s involvement in tourism. We feel that current exercise will be of benefit in future policy formulation. We hope it can contribute to the efficient and cost-effective use of the resources employed by all the Agencies concerned in the national tourism effort. We look forward Mr. Chairman to working with your Committee and will be happy to clarify any areas that you or your colleagues might wish to raise.