Insurance premiums in Ireland are still, at best, 50% higher than those in Britain and four times higher than those in the Netherlands, the Irish Hotels Federation (IHF) revealed at a presentation to the Joint Oireachtas Committee on Enterprise and Small Business.

John Power, Chief Executive of the IHF, was one of a number of organisations who outlined to the all party Committee the issues for his members in relation to insurance. He told the Committee that the IHF has been closely monitoring the cost of insurance renewals for the past 12 months. He stated that although substantial improvements had been made in the insurance environment and some reductions had been achieved, the pace of decrease is too slow.

He welcomed the entry of new insurers providing lower premiums to the market, forcing existing insurance companies to decrease their premiums. Mr Power put it to the committee that the present system of 'ad valorum' fees or commission payable to insurance brokers should be terminated. He suggested that this practice does not give brokers any incentive to offer lower premiums. "The practice of brokers’ earnings being tied into the level of premiums charged should be terminated. Insurance brokers should be working in the best interests of the insured person and they should be remunerated on a set fee basis,” he said.

The IHF also urged the speedy passage of the Civil Liability and Courts Bill through the Oireachtas, which contains the following key provisions:

• That any person who brings a dishonest or misleading claim be treated as a criminal and punished accordingly with a fine of up to EUR100,000 or imprisonment for up to 10 years.

• A reduction from 3 years to 1 year of the statute limitations, with an obligation to lodge a letter of claim not later than two months after the date of an incident.

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Pictured at the recent presentation by the IHF to the Joint Oireachtas Committee on Enterprise and Small Business are (l-r) John Power, Chief Executive, IHF, Donie Cassidy TD, Chair of the Committee, and Richard Bourke, President, IHF.

The Irish Hotels Federation (IHF) has launched a new booking engine on its website, www.irelandhotels.com. The website will now provide IHF members with the ability to receive direct internet bookings in a cost-effective manner. The new, userfriendly system on irelandhotels.com assists properties provide a greater selection of rooms and holiday packages on the website.

Judy Siguaw, Professor at the Cornell University School of Hotel Administration and keynote speaker at the IHF Hospitality On-line Conference in March, highlighted the importance of hotels making their most attractive offers available on their own websites.

This new feature on irelandhotels.com will offer all entrants in the IHF published 'Be Our Guest' guide, be they a 6 bedroomed guesthouse or a 500 room hotel, the opportunity to promote their property on this IHF members only website. The Federation is committed to providing a direct distribution option to hotels and guesthouses to enable them to maintain control and consistency in their pricing policies. The new booking engine will also provide consumers with greater choice at competitive rates.

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A more mature, discerning and security-conscious tourist with a far higher level of disposable income is set to emerge in the 21st Century, delegates heard at a recent EU conference at Dublin Castle entitled Charting Tourism Success. The Fáilte Ireland hosted conference brought together over 200 delegates from 25 countries including policy makers, senior strategists and business leaders to debate issues of competitiveness and sustainability for the tourism industry.

The President of the IHF, Richard Bourke, addressed delegates on the eve of the conference at a reception in Jurys Hotel, Ballsbridge. He stated that competitiveness and stimulating market demand must remain the priority for tourism and that all EU regulations should be complimentary to these objectives. “Increasing competitiveness and seeking innovations to achieve this is a top priority for the hospitality and tourism industry. All statutory regulations at national or EU level should be supportive of this objective,” Mr Bourke urged.

Delegates at the conference heard that economics, demographics and technology are sharply altering the global marketplace. European destinations and individual tourism enterprises will need to tailor their products carefully and hone their competitive edge if they are to benefit from the spending power of modern consumers. The significant challenge for Ireland will be the provision of greater direct access to more parts of the country, allowing time-pressed visitors to engage immediately with the authentic “experience” they seek here.

Speakers included futurologist and economist, Dr Egon Smeral from the Austrian Institute of Economic Research, who described how by 2010 the travel market for the 50+ age group in the new and pre-accession EU member states will be in excess of 140 million people.

Dr Reinhard Klein, of the European Commission said that tourism could only be competitive if it was based on sustainability, offered quality and corresponded to tourists’ interests. Other speakers at the conference included: Aer Lingus Chief Executive Willie Walsh who said visitor numbers from the US to Ireland could be doubled within a short timeframe if the current restrictions under the US/Ireland Bilateral Air Agreement were lifted. Hotelier Sir Rocco Forte and Tim Smit of the Eden Project in Cornwall presented case studies from their own successful tourism businesses.

Pictured at the Fáilte Ireland EU Tourism Conference in Dublin Castle are (l-r) Hotelier, Sir Rocco Forte, Shaun Quinn, Fáilte Ireland and Willie Walsh, Aer Lingus.

Ireland has been voted Established Golf Destination of the Year – 2004 by the members of the International Association of Golf Tour Operators (IAGTO). The Association’s 145 members awarded Ireland the top rank across a number of criteria including customer satisfaction, quality of golf courses and accommodation.

Commenting on the ranking, top world and European ranked golfer Padraig Harrington says: "I'm not surprised at this latest recognition for Irish golf. I play all over the world and in my experience Ireland's whole golfing package in terms of choice and quality of courses, combined with that distinctive Irish welcome, is something special."

Welcoming the announcement, the Minister for Arts, Sport and Tourism, John O’Donoghue, TD, said: “This award is so important because it is based on customer satisfaction with the golf tourism product in Ireland. Golf attracts some 200,000 overseas visitors annually who spend nearly EUR200 million here."

Golf at the K Club, Co. Kildare

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• The expediting of the hearing of cases by a Court.

• The right of a defendant to obtain particulars of previous personal injuries, actions or medical treatment having a bearing on the current injury as well as documents from the Revenue Commissioners or Minister for Social Welfare relating to earnings relevant to the claim.

• The details of the pleadings supported by affidavits should be lodged with the courts in advance of the hearing.

• The provision that the Court may direct evidence given by way of affidavit.

At the presentation, Mr Power took the opportunity to welcome the establishment of the Personal Injuries Assessment Board (PIAB). He called for its remit to be immediately extended to deal with public liability as well as employers liability claims. The IHF maintains that almost 75% of claims against hotels and guesthouses are public liability claims. He urges the PIAB to take note of the level of settlements awarded in other countries and not just the level of settlement issued by the Irish courts, when it publishes its Book of Quantum.

The Dublin Convention Bureau has reported a successful first year in operation, having sourced over EUR3 million in new conference business since its establishment in 2003. The Bureau (an organisation established jointly by the Dublin Branch of the Irish Hotels Federation, the Association of Irish Professional Conference Organisers, Dublin Tourism and Dublin City Council) also announced the appointment of Ms Jean Evans as its new Development Director.

Ms Evans will take up her appointment on June 1st 2004 and joins the Bureau from Tourism Ireland New York where her role as Product Executive – Corporate Business includes the development and implementation of effective promotional plans for the corporate business market, with a particular focus on incentive travel, international conferences and corporate meetings. Prior to that Ms Evans spent a number of years working with Bord Fáilte as a Trade Executive. She holds a BA from UCD in Italian and Linguistics and is presently studying for an MSc in Marketing from the University of Leicester.

John Power, Chief Executive of the Irish Hotels Federation and a director of the Dublin Convention Bureau comments, “The work of the Dublin Convention Bureau to date has been very encouraging and I am delighted to welcome Jean Evans on board as a strategic member of the team. However, despite the Bureau’s success to date, without a dedicated convention centre Dublin is still at a disadvantage to other European cities in attracting conference business to our shores. I am hopeful that the development of the international convention centre, will take place swiftly in order to attract additional conference and meeting delegates to Dublin.”

Jean Evans

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Commenting on the development of Irelandhotels.com, Lorna McNamara, Marketing Manager, IHF, said, “With increased price transparency in the market, it is key for all hotels to make their best rates available on their own website. Irelandhotels.com which attracts over of 20,000 visitors every week and offers huge benefits as it entails a minimum cost to the hotel, enabling them to feature their most competitive rates.”

Hoteliers and Guesthouse owners must keep control of their own room inventories and not hand them over to internet intermediaries and the irelandhotels.com site offers them this opportunity. “The ongoing development and enhancement of Irelandhotels.com, together with an active marketing campaign, will ensure that the website grows its share of the market and will, I hope, be a major source of business for Irish hotels and guesthouses in the future,” continued Ms McNamara. In1 Solutions, a software and online distribution company, developed the booking engine in 2002 in response to demand from accommodation providers for a system suited to the Irish market.

Enhancements to the product are delivered regularly, resulting in a system that is simple to use by customers and hotel staff alike.

Pictured at the launch of the new Irelandhotels.com booking engine is Lorna McNamara, Marketing Manager, IHF with Victor Garland, Commercial Director and Pat Ratcliffe, CEO, In1 Solutions.

John O'Donoghue, TD, Minister for Arts, Sport and Tourism, has announced that funding of EUR4.5 million has been allocated to thirteen projects under Fáilte Ireland's Tourism Product Development Scheme. Grant decisions are made by independent management boards specifically established for that purpose. A total budget of almost EUR55m in ERDF support has been earmarked for the scheme over the period 2000 - 2006 and is the principal source of capital financial support for the development of tourism projects.

The scheme, which was launched in 2002, builds on the investment of Û1 billion in upgrading the tourism product, which was supported through earlier EU Tourism Operational Programmes during the 1990's. "The present scheme is intended to address remaining gaps in the tourism product and is focused, in particular, on less developed areas of the country in line with the Government's objective of balanced regional development", Minister O'Donoghue stated.

Grants have been approved for:

Southern and Eastern Region

• Lisdoonvarna Spa Wells, Lisdoonvarna, Co. Clare
• North Kerry Arts/Tintean, Lisselton, Co. Kerry
• Woodstock Gardens, Inistioge, Co. Kilkenny
• Kippure Outdoor Pursuits, Blessington, Co. Wicklow
• Burren Craft Learning Centre, Ballyvaughan, Co. Clare
• Wicklow Mountain Ways Network
• Kerry and Dingle Ways Upgrading
• Shannon Region Walks Upgrading
• Wexford Tourist Office, Wexford

Border Midlands and Western Region

• Silverline Cruisers Marina Base, Banagher, Co. Offaly
• Gartan Outdoor Education Centre, Letterkenny, Co. Donegal
• Donegal Adventure Centre, Bundoran, Co. Donegal
• Sliabh Bloom Way and Offaly Way

Minister O'Donoghue also announced EUR550,000 in grant assistance under the Festivals and Cultural Events Initiative 2004. Some of the festivals to receive assistance include the International Festival of Light Opera, Waterford; Earagail Arts Festival, Donegal; Kilkenny Arts Festival; Fleadh Cheoil na hEireann, Clonmel, Co. Tipperary and Tall Ships, Waterford 2005, Waterford.

Ryanair has struck a deal to rewrite its contract with Charleroi Airport in line with a recent European Commission ruling. Despite the airline’s threat to pull out of the regional airport, which lies 40km from Brussels, the airport’s owners have offered new terms to Ryanair that would also be available to other airlines. In return, the airline has also given a commitment to consider transferring more planes to the airport and opening further routes from Charleroi.

Ryanair has said that the further development of its services at the airport is conditional on new routes securing low-cost charges and the construction of a new terminal. One of the European Commission’s complaints in its ruling against the original deal at the base was that it was negotiated in private. In order to comply with the Commission ruling and yet ensure its charges will keep Ryanair at the airport, taxes are being reduced so that the overall charge per passenger will remain at EUR5 per person.

The deal was welcomed by Ryanair’s Chief Executive Micheal O’Leary who commented, “This agreement was timely as we have negotiated a number of other airport base arrangements in recent months at costs which are lower than that at Brussels Charleroi, and there was a real likelihood that in the absence of an early agreement with Brussels Charleroi we would have closed the base and moved the aircraft and the low fare routes elsewhere.”

Pictured at a recent joint council meeting of the IHF and the NIHF (Northern Ireland Hotels Federation) are Rodney Watson, President, NIHF and Richard Bourke, President, IHF.

Corporation Tax 2003 - Pay and File

The 2003 Finance Act introduced a ‘Pay and File’ system for Corporation Tax that will affect the payment of Corporation Tax and filing of Corporation Tax returns for all companies with accounting periods ending on or after 1st January 2003. This article explains some of the more significant changes brought about by the introduction of Pay and File and the changes to the payment and filing requirements for accounting periods ending in 2003.

Pay and File

The main change for Corporation Tax, brought about by the introduction of Pay and File, is that any balance of Corporation Tax due, in respect of accounting periods ending on or after 1st January 2003, now falls on the filing date of the form CT1. This pay and file date is nine months after the end of the company’s accounts period. Previously the payment date for the balance of tax was 30 days after the notice of assessment was issued by the Revenue Commissioners.

In addition, if the accounting period ends after the twenty-first day of the month, the filing date and payment date have been brought forward to the 21st of that month. Previously the filing date was the last day of the month. Thus, for a company with an accounts year ending on 31st January 2003, the latest date for paying the tax and filing the return is 21st October 2003.

Under the new Pay and File regime, there is now an onus on the company to have the full CT liability brought to account on or before the date the return is submitted to the Revenue Commissioners.

2003 Corporation Tax Return (Form CT1)

For accounting periods ending in 2003 there are some changes that you should be aware of in relation to the corporation tax return:

Change in Place of Filing

Under Pay and File the location for filing Corporation Tax returns has changed. Returns for accounting periods ending after 1st January 2003 should no longer be sent to the local tax office but should instead be sent to the Office of The Collector-General, PO Box 354, Limerick.

Personalised return/payslip

The 2003 Pay and File return has a personalised barcode, printed on the front page, to assist the Collector-General’s Office in capturing the date of receipt.

Extracts from Accounts

For 2003 it is no longer a requirement to attach a copy of the company’s accounts with the Form CT1 unless the company turnover exceeds £13m. Instead, you must provide details of certain figures extracted from the accounts. Returns submitted without the accounts extract details being completed will result in the forms being returned for completion and this could result in surcharges for late filing.

What are the dates for payment of Corporation Tax?

The first instalment of preliminary tax will be due for payment not later than the 21st day of the month in which it is payable.

The second instalment of preliminary tax will be due for payment within six months after the end of the accounting period but not later than the 21st of that month.

The balance of Corporation Tax will be due when the Corporation Tax return is filed, no later than the 21st of the month, 9 months after the end of the accounting period.

For example:

A company with a year end of 31st December 2003 would have the following payment and filing obligations:

21st November 2003 – first instalment of preliminary tax due

21st June 2004 – Second instalment of preliminmary tax due

21st September 2004 – File Coporation Tax return together with balance of payment due.

Changes to due date for Preliminary Tax

The Finance Act 2002 introduced certain changes to Corporation Tax by bringing forward the due date for the payment of preliminary Corporation Tax that will be fully effective for accounting periods ending after 2005. During the transitional period where preliminary tax may be paid in two instalments, the total of the two instalments must be at least 90% of the final liability for the period in question. A summary of the minimum first instalments payable is as follows:-

Summary of Minimal First Instalments Payable, Finance Act 2002

(A company is regarded as small if its corresponding corporation tax liability in the preceding year does not exceed EUR50,000.)

New methods of payment/refund

You can now pay Corporation Tax liabilities using the Single Debit Authority (SDA) method of payment. Simply enter the amount to be debited from the companies bank account in the SDA field on your payslip and supply the bank details of the company’s account to be debited. If the company is in a refund position and wishes to have the refund credited directly to the company’s bank account, simply complete the “refunds due” field with the amount of the refund and supply the bank details of the company’s bank account to be credited.

Ciarán Medlar is a Partner in the Tax Planning department of BDO Simpson Xavier, tel: 01- 4700 280, email: cmedlar@bdosx.ie