Saturday, March 20 2010

National News

Department's existence put in question with 'outsourcing'

By Breda Heffernan

Friday July 17 2009

THE future of the Department of Arts, Sport and Tourism is in doubt after An Bord Snip Nua called for it to be "critically examined".

Economist Colm McCarthy has earmarked the so-called Department of Fun to deliver €105m in savings and pointed out that many of its functions could be transferred to other government departments, throwing its very existence into question. He also proposed 170 staff be laid-off across the department and its agencies.

Among the biggest casualties identified for cutbacks is the Sports Council with the report recommending a cut of €17.7m in its grant funding.

Other areas ripe for cuts include the horse and greyhound racing industries, which between them could see €16.4m wiped from their budgets.

And Mr McCarthy's team recommended the overall tourism marketing budget be cut by €27m -- a €15m reduction in the allocation to Failte Ireland and a €12m reduction for the cross-border Tourism Marketing Fund. This proposalcomes as hoteliers, reeling from the virtual collapse of the crucial British market, call for a new campaign to attract tourists.

The arts and culture sector, which already suffered heavy cuts in the last two budgets, could deliver more than €38m in savings including a €6.1m reduction in funding for the Arts Council and the ending of grants for Culture Ireland.

The Bord also recommended that the Irish Film Board should be scrapped and its functions transferred to a restructured Enterprise Ireland. This initiative would deliver annual savings of €3m and capital savings of more than €17m. Most organisations were unwilling to comment on the proposals last night saying they needed more time to consider the report. However, a spokesman for the Sports Council said a cut of €17m in its funding "would be very painful for the sports sector".

Mr McCarthy's special group said there was significant scope for outsourcing of the department's activities.

The Cuts

• The need for a separate department responsible for arts, sport and tourism must be "critically examined".

• Cut grant funding to the Sports Council by €17.7m.

• Tourism budget to be reduced by a total of €27m.

• Scrap Irish Film Board and transfer its functions to Enterprise Ireland, thereby saving €3m a year.

• €6.1m reduction in funding for the Arts Council.

• Horse and greyhound fund to be slashed by €16.4m.

- Breda Heffernan

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