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2.12 Deputy D.J.A. Wimberley of St. Mary of the Minister for Economic Development regarding the current status of the Tourism Development Fund:
Would the Minister inform the Assembly how much money is left in the Tourism Development Fund and whether he considers that this sum reflects the States' commitment to the tourism sector?
Senator A.J.H. Maclean (The Minister for Economic Development):
The Tourism Development Fund has a current unallocated sum of £466,333. The Tourism Development Fund is just one mechanism to support the tourism sector and, therefore, does not reflect the total commitment to the tourism industry. Tourism is vitally important to the Jersey economy, and I am sure that Members will join me in sending the tourism industry a clear message of support.
- The Deputy of St. Mary :
Fine words butter no parsnips. The States once upon a time voted £10 million for the Tourism Development Fund, and I wonder if the Minister could tell the Assembly where it went.
Senator A.J.H. Maclean:
The £10 million was voted in 2002 as a promise by the Assembly to support tourism. To date, £2.2 million has been forwarded to the Tourism Development Fund and has been used for a range of very worthy projects. I can give a commitment to the Assembly that I would like to see more money in the Tourism Development Fund, and to that end I have already had discussions with my good friend the Minister for Treasury and Resources to see if I can persuade him to loosen the purse strings for this very worthy cause.
- The Deputy of Grouville :
It was my predecessor who secured the £10 million for the Tourism Development Fund and it was my understanding it was certainly not a promise, it was a proposition to invest or hold in the Tourism Development Fund £10 million. Was this money ever transferred into that Fund and, if not, why not?
Senator A.J.H. Maclean:
As I say, my understanding from the proposition was that there was an undertaking given by this Assembly to support the tourism industry and to support the introduction of a Tourism Development Fund to the tune of £10 million. These funds, as far as I am aware, were not transferred. The only money that has come forward to the Fund was that which was originally in the Tourism Investment Fund itself, the original fund that operated between 1995 and 2000. In total the Tourism Development Fund has had allocated to it and distributed £2.2 million.
- The Deputy of Grouville :
So, would the Minister agree that there is £8 million outstanding and that should be transferred into the Tourism Development Fund, or has the tourism industry still got access to those funds?
Senator A.J.H. Maclean:
As I said a moment ago, I would certainly like to see more money transferred into the Tourism Development Fund. £466,000 is not enough for what we need to do to support this important sector of our economy. I have had discussions with the Minister for Treasury and Resources and I certainly am hopeful that we will get some additional funding into T.D.F. (Tourism Development Fund). I am also keen to bring
forward to the Assembly plans to open up and widen the remit of the Tourism
Development Fund. Currently, it deals with public and voluntary sectors. I would like to open it up to make it even more effective.
The Deputy of Grouville :
He did not answer my question. The Minister did not answer my question. Is the £8 million balance that was voted by this Assembly for tourism development in this Island available, yes or no?
Senator A.J.H. Maclean:
As far as I am aware, that sum was not voted and I think the Deputy of Grouville perhaps should direct the question to the Minister for Treasury and Resources if she wants some more details on the accounting of that particular funding and decision by the States Assembly.
- Deputy S. Pitman:
The Minister has stated that he will be trying to get more money for this Fund. Will he be fighting for the full £10 million?
Senator A.J.H. Maclean:
I will be fighting to get as much as I possibly can for the Tourism Development Fund and, as I have already stated, bringing back to this Assembly the ability to widen the remit so it can become even more effective. I would like to get as much as I can for tourism. If I can get £8 million and if I can persuade the Minister for Treasury and
Resources to fund that amount of money, then I would be delighted to do so. It is
difficult times. It is not going to be easy. I will get what I can.
- Deputy R.G. Le Hérissier:
Would the Minister not acknowledge that tourism needs a critical mass of accommodation if sufficient visitors are to be on the Island in order to keep the whole range of facilities such as Durrell and the war tunnels in business?
Senator A.J.H. Maclean:
Yes, I think we have something short of 12,000 beds currently at the moment. We have had significant private sector investment in tourism, which is a good thing. What I can say to the Deputy which is of particular relevance is that we are not reaching the capacity that we have at the moment. We have nearly 12,000 beds but we are not filling them. We are not filling them in shoulder months and we are barely filling them in the peak season. There is a great deal more work to do in a difficult market. Jersey is faring quite well but it is difficult out there. Hoteliers are finding it hard, as other members of the industry are.
- Deputy D.J. De Sousa:
If £10 million was sort of promised to this pot to deal with tourism, why is it in 8 years only £2 million has been brought forward?
Senator A.J.H. Maclean:
I think we are repeating ourselves somewhat. The funds were promised under a proposition made to the States Assembly. The funding was never allocated or put into a separate fund. The money is not there. The Treasury would need to answer the details to give you more scope to the understanding of this issue.
- The Deputy of St. Mary :
Can the Minister confirm that in summary what he is telling the House is that the commitment to the tourism industry and their offering needs the spend and it needs our commitment? Is he telling us that the commitment to this House has gone down from £7.8 million to £466,000 in relation to the Tourism Development Fund? I accept there are other bits in the toolkit but in relation to the Fund, the commitment has gone from £7.8 million to £466,000?
Senator A.J.H. Maclean:
No. The funds were never put into the Tourism Development Fund. There was a proposition brought forward to this Assembly which made a promise to provide funding for £10 million for the Tourism Development Fund. That money was never actually allocated. All we have had is £2.2 million to date.