Tourism, and not farming, would be the main loser in the foot-and-mouth crisis, the Minister for Tourism, Dr McDaid, has said.
Dr McDaid said food prices were rising and meat factories were working overtime in recent days. It would be relatively easy for farmers to be compensated for losses, but it would be much more difficult for tourism.
He was addressing a joint Oireachtas committee meeting yesterday on the effects of foot-and-mouth on the tourism industry. The committee was told that an estimated £174 million had been lost in reported overseas cancellations.
Dr McDaid said there was a lack of balance in the debate, with everything "geared towards agriculture".
He also questioned statements from his British counterpart, who he said encouraged people to continue visiting Britain. This was contradictory advice, Dr McDaid said.
Contradictory advice was also being given by the Departments of Agriculture and Tourism, said Mr John Waldron of the Irish Cottage Holiday Homes' Association. The Department of Tourism had told him British visitors were welcome in Ireland if they did not come from an infected area, while the Department of Agriculture said no British visitors were welcome.
Dr McDaid called on banks, financial institutions and the Revenue Commissioners to treat tourism businesses with cash-flow problems as sympathetically as possible and to remember that this was just a temporary setback.
Bord Failte has predicted a loss of almost £500 million in out-of-State earnings, from March to August. The board's chief executive, Mr John Dully, said this could lead to the loss of more than 20,000 jobs. The drop in domestic travel had already cost more than £20 million.
He called for an intensive campaign, at home and abroad, to rescue the 2001 season.
Fine Gael TD Mr Jimmy Deenihan urged all Irish people to holiday at home this year.
Ms Mary FitzGerald of the Irish Hotels' Federation called for a special fund of up to £20 million to promote Ireland. Since March 1st, federation members had lost £33 million in cancelled or deferred bookings.
The Town and Country Homes' Association suffered a 66 per cent reduction in UK reservations last week and was expecting a similar reduction this week.
Restaurant revenues were down by up to 30 per cent, said Mr Henry O'Neill of the Restaurant Association of Ireland. Mr O'Neill warned of staff reductions, price increases and restaurant closures in the long term.
