Statement from the minister for Arts, Sport and Tourism, Martin Cullen

Budget 2010: Government consolidates support for Arts, Sport & Tourism Sector

A sector which supports 350,000 jobs in the Irish economy

Martin Cullen TD, Minister for Arts, Sport and Tourism commented today on Budget 2010 saying that the importance of the arts, sport and tourism sectors to the country are “reflected in the commitments contained in the Renewed Programme for Government and the funding secured under Budget 2010 for the Department’s activities over the course of next year.”

Funding to the Department of Arts, Sport and Tourism for 2010 is €501m.Within this, current funding is €369m, while capital expenditure is €132m.
Funding to Arts, Culture and Film is €166m, funding for Sport and Recreation services is €115m and funding to Tourism Services is €155m.

Tourism – a key driver of economic recovery Budget 2010 incorporates a range of measures and initiatives to renew Irish tourism. Key elements build on actions recommended in the recent Report of the Tourism Renewal Group which was commissioned by the Minister.

The Department’s Tourism Services Budget for 2010 is over €155m, representing an increase of 2% on 2009. Minister Cullen said: “This enhanced allocation is clear recognition by Government of the important role that the tourism and hospitality sector will play in Ireland’s economic recovery. While the sector has suffered this year, tourism is a critical indigenous sector that sustains around 200,000 jobs, generating over €4 billion in export earnings and almost €1.5 billion in taxes for the Exchequer.”

The Minister added: “The allocation for capital investment in tourism product development will be increased threefold next year to €22m. This investment will be focussed on completing the upgrading of some major tourism attractions, developing a select number of new visitor attractions, improving infrastructure for recreational cycling, walking and water-based activities and local heritage attractions. It is critical to continue to invest, develop and upgrade our tourism product in order to continuously attract high value tourists.”

The Tourism Marketing Fund in 2010 has a provision of €44.25m. This will enable the level and value of investment in overseas marketing of Ireland to be maintained in real terms in 2010 as recommended in the report of the Tourism Renewal Group. Better value for money in purchasing advertising space, currency advantages and once-off expenditure in 2009 relating to the redevelopment of Tourism Brand Ireland will ensure that there is no adverse impact from the nominal reduction in the 2010 allocation.

Funding for regional campaigns from the Tourism Marketing Fund will be maintained at 2009 levels – including the promotion of the wider Shannon Airport catchment along the West Coast.

Tourism Ireland’s detailed marketing plans for 2010 – which were announced last week – commit to a major push in the Great Britain and German markets and have the objective of increasing overall tourism overseas numbers and revenues by 3% next year. The Tourism Agencies are also developing a
special initiative to drive business in the US market in 2010.

Fáilte Ireland will be re-focusing their activities in 2010 to maximise their impact, including a continued concentration on developing the home holiday market, continuing their enterprise support programmes to engage with and assist the industry and to target the training needs of the industry in the workplace. Fáilte Ireland’s grant-in-aid reduction in 2010 is offset by significant once-off expenditures in 2009 relating to major international sports tourism events.

There will be a concerted push to develop Business tourism in 2010 based on the opening of the Convention Centre Dublin next September. More international acts and events with inward tourism potential will be encouraged through taking advantage of new major cultural and sporting facilities in the capital e.g. O2 arena, Libeskind Grand Canal Theatre and the Aviva Stadium.

Cultural tourism will be further developed through enhanced marketing/programming, the Exhibitions Programmes of the National Cultural Institutions and other initiatives under the arts/culture subheads of the Department’s Vote.

Tourism businesses will now have access to the second broader call for applications under the Employment Subsidy Scheme operated under the aegis of the Department of Enterprise, Trade and Employment under which total support of €65m is available to protect vulnerable employment. The industry will also benefit from the establishment of the Credit Review System for all SME sectors, including tourism.

The impact of the reduction in alcohol excise duties will result in lower hospitality costs to our visitors. The enhancement of the scheme of accelerated capital allowances for energy efficient equipment to include catering and hospitality equipment will also benefit the sector.

As an imaginative initiative to boost the international marketing effort for 2010, Iarnrod Éireann have agreed to participate in a new scheme, to be developed by Fáilte Ireland, which will be aimed at senior citizens visiting Ireland from other countries. These tourists will be able to avail of greatly discounted rail travel throughout Ireland during their visits. More information on this initiative will be given by Fáilte Ireland and Iarnrod Éireann in the coming weeks when the details have been finalised.

Arts, Culture, Film Minister Cullen said: “At the Global Irish Economic Forum held in Farmleigh in September there was wide acknowledgement of the importance of culture in promoting Ireland abroad and developing a unique brand for the country in new markets. Most participants agreed that our unique and strong cultural identity provides the Government and the private sector with a strong competitive advantage abroad. Internationally, the creative economy is moving centre stage and creativity is seen as a crucial bedrock, underpinning our knowledge economy. I am pleased that significant funding to support the arts is secured for 2010. The overall allocation for the arts, culture and film area in 2010 is €166m as compared to €178m for 2009 – a 6% adjustment. Even in more stringent times, overall funding for the arts is up 14% on 2005 levels.”

Funding to the Arts Council, the state agency for the arts is €69.15m, a 6% reduction on the 2009 figure of €73.35m. Arts Council current funding is between 2006 and 2007 levels. Minister Cullen said: “I am pleased to have secured this level of funding of over €69 million for the Arts Council which will continue to sustain the country’s main arts organisations, keep regional arts and theatre venues open – which are important to the social fabric of communities - and support local festivals and touring initiatives.”

The Minister added: “Other key agencies like the Irish Film Board and Culture Ireland will continue to develop and support their sectors. Their budgets have been maintained at 2007 levels with the Irish Film Board allocated €19.31m and Culture Ireland, €4.083m. The important tax relief scheme, Section 481, for investment in film and TV production is maintained until at least 2012, underpinning the Government’s commitment to the importance of our indigenous Irish film and audiovisual sector.”

Culture Ireland and Tourism Ireland have intensified joint planning on cross-promotions in the cultural tourism field. Initiatives for 2010 will include a programme of cultural projects and events for the World Expo in Shanghai from May to October. In January, Culture Ireland will lead its annual performing arts promotional mission to the United States, its priority market, promoting an expanded range of showcases by Irish music, dance and theatre artists/companies.

Capital funding for arts infrastructure has been consolidated in the Department and all major arts capital projects will be completed as will regional capital projects to which commitments have been made. Projects for completion in 2010 include Solas Picture House in Galway, the Model Niland in Sligo, Limerick City Art Gallery and Droichead Arts Centre, Dundalk.

Day-to-day funding for the national cultural institutions is maintained at or above 2007 levels and their capital funding is maintained at 2009 levels to ensure continued investment in high quality visitor experiences as part of an integrated cultural tourism drive. The aim for 2010 is to exceed the 3.2m visitor target at the cultural institutions.

Investment in regional and smaller museums like Marsh’s Library, Hunt Museum, Science Gallery, Print Museum, Foynes Flying Boat Museum and the James Joyce Centre will continue.

The digitization of the 1901 and 1911 Census will be completed. It is intended to name the preferred tenderer for the new National Concert Hall project shortly. Work is ongoing in assessing the GPO complex as a possible location for the Abbey, the National Theatre.

In 2010 the Department will also create a new National Opera Company.

The artist tax exemption has been maintained with some adjustment only in respect of very high earners to reflect a more equitable apportionment of the tax burden.

Sport
Expenditure on sport will be €115 million in 2010.

The Minister said that the Government is committed to increasing and developing participation and interest in sport, improving standards of performance and to developing sports facilities thereby contributing to healthier lifestyles and an improved overall quality of life.

A total of €48m has been provided for the Sports Capital Programme in 2010.
Minister Cullen said: “The provision of €48m for Sports Capital projects will ensure that commitments arising in 2010 from previous allocations under the Sports Capital Programme will continue to be made and that a range of modern facilities will be brought in to use in 2010. Over the past 10 years, in excess of €750 million has been allocated to 7,400 sports projects all over the country.”

The Minister continued: “Funding to the Irish Sports Council for 2010 is at €49.789m, a reduction of 4% on the 2009 levels, but is a significant investment by Government to enable this important agency maintain existing programmes and build on recent significant progress in all areas including Local Sports Partnerships, Buntús, Women in Sport, Older People and Sport, Youth Field Sports and the High Performance Programme.”

The Lansdowne Road Stadium, a key sports infrastructure project, remains on schedule to be completed on time and within budget in 2010. The allocation by the Department of €4.5m in 2010 represents the retention amount of the Government’s funding for the project of €191m.

Minister Cullen also said: “Ireland is the third largest breeder of thoroughbreds in the world and Irish horses and jockeys consistently succeed at the highest level. An estimated 27,000 jobs are supported by both the horse and greyhound industry in Ireland and significant inward investment is attracted to the country. Taking account of the need to continue to support both industries, €59.264m is being allocated by Government to the Horse and Greyhound Racing Fund in 2010. This is a reduction of 13% on the funding provided in 2009.”

Phase One of the National Sports Campus project remains under review. An amount of €3m is being provided for the refurbishment of the former Marine Institute building at Abbotstown which will be used as a headquarters for national governing bodies of sport. The remainder of the allocation will be used to provide for capital maintenance at the National Aquatic Centre.