Dáil Éireann

1. Mr. B. Ahern asked the Taoiseach if he will make a statement on the prospects for peace and political progress in Northern Ireland in 1997. [1355/97]

2. Mr. B. Ahern asked the Taoiseach the plans, if any, he has in conjunction with the British Prime Minister to provide a motive force within the talks process to ensure their continuing viability. [1356/97]

3. Mr. B. Ahern asked the Taoiseach the further support, if any, he will give to the preChristmas peace initiative of John Hume. [1357/97]

4. Mr. B. Ahern asked the Taoiseach the plans, if any, the Government has for changes with regard to maintaining a channel of communication to Sinn Féin. [1358/97]

5. Mr. B. Ahern asked the Taoiseach if it remains the position that all parties to the Northern talks are required to maintain a strict adherence to the Mitchell Principles. [1359/97]

6. Miss Harney asked the Taoiseach the initiatives, if any, planned by the Government to inject new momentum into the peace process. [1371/97]

7. Miss Harney asked the Taoiseach the contacts, if any, between officials in his Department and Sinn Féin since Wednesday, 17th December 1996. [1372/97]

8. Miss Harney asked the Taoiseach the discussions, if any, he has had with the British Prime Minister since Wednesday, 17 December 1996. [1373/97]

The Taoiseach: I propose to take Questions Nos. 1 to 8, inclusive, together.

The responsibility for political progress rests in the first instance with the two Governments. We have exercised this responsibility through putting in place agreed procedures and mechanisms for the fair conduct of multi-party talks and the commencement of these talks on 10 June last year. In addition, we have made constant and unremitting efforts over the past seven months to move these talks into substantive negotiations in the three strands. The talks represent the best, and probably the only, way of achieving agreement among the parties.

The prospects for peace in Northern Ireland depend on all sides exercising their responsibilities. Of course, everybody does not have the same [903] responsibility. People who kill, or encourage others to kill, bear a greater burden of responsibility for the lack of peace in Northern Ireland than those who passively support violence. Equally, those who passively support the politics of violence have a much higher responsibility for the lack of peace than those who support parties which reject violence. There is an onus on all democrats to speak and act against violence and sectarianism in all their manifestations. Violence and sectarianism continue because, regrettably, a minority continue to give them active or passive support.

The Government is convinced that, provided the will is there on all sides and all are prepared to act responsibly, 1997 can be a year both of peace and of political progress. For our part, we will continue to do everything in our power, as we have done in the past, to secure these objectives. We will work in close co-operation with all who share, and who are committed to, exclusively peaceful and democratic methods of action. In particular, we will do everything we can to optimise the prospects for substantive progress in the multi-party talks, including, if possible, in advance of the general election in the United Kingdom. We continue to work in close contact with Mr. John Hume, with whom I recently had an extensive private meeting. We support his continuing efforts to obtain an IRA ceasefire.

On the question of contacts with Sinn Féin, the Government made clear, in response to a request for a meeting from the Sinn Féin leader, immediately after the IRA resumed its campaign by the bombing of Canary Wharf that we wanted the IRA ceasefire to be restored immediately, that the basis for the previous Government meetings with Sinn Féin had been that a total cessation of IRA violence was already in place, that further Ministerial meetings with Sinn Féin must be consistent with this long standing policy and that, notwithstanding the resumed IRA campaign, a meeting at official level could take place on the basis that Sinn Féin would bring forward its ideas on how the ceasefire could be restored at that meeting. That meeting took place and since then there were a number of official level meetings within that channel of communication.

During the 11 month period in which these meetings were taking place, the Irish Government secured a fixed date for the opening of all party talks, eminent and independent chairmanship of the talks, agreed rules of procedure to protect the position of minority parties within the talks, Irish Government involvement in face to face discussions in the talks with parties, some of whom had never previously had contact with the Irish Government, the effective removal of the Washington Three precondition, as well as a clear commitment in statements from both Governments that Sinn Féin will be admitted to the talks once it complies with the terms set out publicly.

Despite all these advances, which were designed, inter alia, to secure an IRA ceasefire, [904] and the meetings which were held at official level with Sinn Féin, we have seen in the interim not an IRA ceasefire but more and more IRA violence which has intensified to the point that at least nine IRA attack attempts, of a major kind, have taken place in the past three weeks.

IRA violence, more than anything else, has isolated the Nationalist community in the North from all those who wish to help them to achieve parity of esteem. IRA violence is partitionist. IRA violence has provided a pretext and a context for sectarianism. IRA violence is an invasion of human rights which, in some Nationalist areas, has substituted arbitrary and unaccountable penalisation by a secret organisation for accountable justice through an open courts system.

The intensified activity on the part of the IRA, over Christmas and so far this year, makes it difficult to believe that the republican movement is not now deliberately attempting to pursue a parallel ballot box and armalite strategy, which is unacceptable to democrats and which accordingly should not be assisted politically or otherwise by a democratically constituted Government. The official channel of communication to which I refer can be used whenever the Government receives reliable assurances that an IRA ceasefire is attainable in a genuinely short-term horizon, and that previously identified and realistically attainable things need to be discussed at the meeting, and done, that will achieve that end. If such assurances are received, meetings can be arranged at very short notice. The sole purpose of any such meeting would be to end IRA violence, once and for all, and quickly.

In response to Question No. 5 from Deputy Ahern, I can confirm that all parties to the multi-party talks are indeed required to maintain a strict adherence to the Mitchell Principles. This is made clear beyond doubt in the 28 February 1996 communiqué, the ground rules paper, and the agreed rules of procedure for the talks.

I have already reported to the House on my meeting with Prime Minister Major on 9 December last. I do not believe it is always appropriate or useful to report on every contact with the Prime Minister. I can however assure the House that this year, as during last year, intensive contact will be maintained at political and official level with Downing Street wherever desirable or necessary. This is of course additional to contacts already under way with the British authorities, including intensive contacts on a daily basis in the context of the multi-party talks.

The multi-party talks process, as any political realist could have seen from the outset, is an inherently difficult one. It was set up to achieve agreement on profoundly divisive questions affecting allegiance between a diverse range of parties, some of whom previously had little or no dialogue with one another. We need to remind ourselves that the underlying assumption of the peace process has been from the outset that such an agreement, although difficult, is possible. The concept that such an agreement could be [905] imposed, rather than freely negotiated, is contrary to the basis on which the all-party talks were sought and agreed to. The Governments do, of course, have a responsibility to give proactive leadership in the talks at appropriate junctures.

The slow pace of the talks is naturally a matter of regret. To those in the majority community in Northern Ireland who may be reluctant to move from traditional positions, I would point out that the outcome of the talks has to be approved by the people by means of a referendum. To the minority community, I would point out that the involvement and endorsement of the Irish Government is contingent on the achievement of an agreement within the three strands which is fair and just to Nationalist aspirations. Nothing is agreed until everything is agreed, so all parties have a specifically designed structure, within which they can make contingent concessions to one another's positions, in the interests of an ultimate overall agreement. I urge all parties in the talks to do that, so that there can be forward movement and Northern Ireland can enjoy a stable and universally accepted political structure, which is the precondition for all durable economic and social development.

Mr. B. Ahern: Does the Taoiseach accept that, since the House last met, there has been growing pessimism in regard to the peace process and the overall position in Northern Ireland? Does he agree this has been caused by the deplorable, irresponsible actions by paramilitary organisations on all sides; the lack of leadership in many of the parties in the talks process some of whom are more concerned with their electoral position and backing than with peace and that in recent weeks the Government appears to have given up endeavouring to break the deadlock? While the Taoiseach has furnished a long reply, concentrating mainly on events over the past year or so — with none of which I disagree — will he inform the House what he is endeavouring to do to reverse the deteriorating position? My main concern as expressed in Question No. 1 relates to where we are going and what can we do now to try to assist the parties and respective communities to reverse that position. I am conscious that it is a matter of weeks only before the marching season begins and we await proposals which we hope will be useful in dealing with those marches. I put it to the Taoiseach that, had he been more vigorous in assisting Mr. John Hume in mid December last, in putting his initiative to the British Government — which merely sought a date for an unequivocal ceasefire — far more progress could have been made. Will the Taoiseach say whether he perceived a greater difference at that time than was apparent on the surface, because I am inclined to think there was and I cannot understand why neither Government tried hard to resolve the then position?

[906]An Ceann Comhairle: This question appears to be rather long.

The Taoiseach: It is a weighted question.

Mr. B. Ahern: I listened to the Taoiseach's reply for some 12 minutes. I have been on my feet for a mere minute and a half. That would appear to be a fair balance unless the Taoiseach wants to monopolise Question Time giving Members lectures and history lessons. Will the Taoiseach inform the House of his efforts to assist John Hume? I note he said in the course of his reply he had recently had an extensive private meeting with John Hume, the contents of which I do not expect him to divulge. May I take it from the coded language used in the Taoiseach's reply that the Government has stopped meeting Sinn Féin at official level?

The Taoiseach: I take issue with the way the Deputy presented three reasons for people's concern at present, as if they were all more or less on the same level. He should realise that the reason we have had no peace in Northern Ireland over the past few weeks is that individuals have gone out with guns and bombs to kill or hurt others. People who do that sort of thing have a responsibility for their own acts. No amount of complaint about what this Government, that Government or any other Government is or is not doing excuses anybody from the primary and overwhelming responsibility for their own actions. The people who order young men, and some young women, to go into a children's hospital with guns to assassinate politicians must accept first responsibility for the lack of peace.

The Deputy presented the problem in Northern Ireland by listing three reasons — lack of leadership in the talks, the Government not doing enough and what Deputy Bertie Ahern rather coyly described as deplorable, irresponsible actions. I can find stronger words than those to describe the actions of the IRA and of loyalists who attacked a number of people; they are more than deplorable and irresponsible, they are attempts at murder. However, we must reach a point in discussion about this subject at which we describe acts for what they are and ascribe responsibility as it ought to be ascribed. As far as the peace process is concerned, I do not believe everybody has the same level of responsibility but I agree we can all do more and must do more not just to stop people shooting others but to deny them any excuse, however distorted in their minds, for the actions they take. That is why the Government has invested such effort trying to get those talks moving, in trying to find a way around obstacles and moving the talks into threestranded discussions. That is why I have had intensive frequent high level discussions with Mr. John Hume about the initiatives he is currently taking, and maintain close contact with the British Prime Minister in regard to this matter. However nothing that we do can be seen as taking [907] away from those who order killings or who order mortar attacks, their responsibility for those decisions.

I have listed in the House all of the things the Government has achieved already which have justified an IRA ceasefire. We have a fixed date for talks, with Senator Mitchell chairing those talks, we have rules and procedures fair to all, we have removed the Washington 3 condition and this Government is in direct face to face talks with parties in Northern Ireland who previously would not have spoken to us. All that has been achieved but it has not been good enough for the republican movement. It is time the republican movement said exactly what it wants. To my mind any reasonable democrat should be satisfied with what is on offer if looking for agreement with others as distinct from an attempted imposition of one view at the expense of another, which is a recipe for further problems.

Miss Harney: Given that the loyalists' ceasefire has clearly broken down, is the Taoiseach fully satisfied the leadership of the fringe Unionist or loyalist parties are fully committed to the peace process and the Mitchell principles?

The Taoiseach: The position in regard to that is set out in Article 29 of the rules for the talks. These state that if, during the negotiations a formal representation is made to the independent Chairman that a participant is no longer entitled to participate on the grounds that he or she demonstrably dishonoured the principles of democracy and non-violence, this will be circulated by the Chairman to all participants and will be subject to appropriate action by the Governments, including due regard to the views of the participants. That is the rule which governs the question raised by the Deputy. So far a complaint has not been lodged in regard to any party taking part in the talks. If a complaint is lodged, obviously it will have to be on the basis that the party concerned had demonstrably dishonoured the relevant requirements in regard to non-violence. It is also the case, and worth noting, that the CLMC has not, to my knowledge, taken or announced any decision to abandon their ceasefire or cessation of violence. It is also the case that the loyalist parties have indicated that they are working hard to maintain the loyalist ceasefire, despite what might appear to be deliberate provocation designed to unhinge that ceasefire by the other paramilitary organisation, the IRA. Obviously, it is a matter of concern that actions have taken place which could be ascribed to organised loyalists. As of now, the requirements have not been demonstrably dishonoured by the parties concerned but if a complaint is lodged, of course, that can be investigated in accordance with the procedures I have outlined to the Deputy.

[908]Mr. B. Ahern: The Taoiseach answered my question on the Mitchell principles. I have no wish to see the loyalists driven from the negotiating table because their presence is essential. Will the Taoiseach tell the House when he believes we have reached an absurd situation when there have been three loyalist attacks and at least nine republican? On one side, loyalists are engaged in the argument about who accepts responsibility. Is it not absurd that one group is at the talks although some of its members are engaged in these actions, while another which offered an unequivocal ceasefire through John Hume has not been allowed into the talks and has been told it must go through other hoops?

The Taoiseach answered my question about mid-December by telling me what happened since 1 January; I have no argument with what happened on that date. He can use whatever words he likes and I will sign up to them. Going back to mid December, is it correct that John Hume could get the republican movement to give a commitment to an unequivocal ceasefire provided he got a date and that the difficulty was that the only response he got from the British Government was that there would be several other hoops through which the republican movement would have to go before it got a place at the table? If that is not correct, will the Taoiseach point out where the differences lie? Will the Taoiseach outline the present position given that the initiative taken by John Hume before Christmas did not work? What would be the Taoiseach's view if there was an unequivocal ceasefire now, which unfortunately seems unlikely, or before or after the British general election? He did not say whether the Government is meeting Sinn Féin at official level as frequently now as it did some months ago.

The Taoiseach: As far as the last part of the Deputy's question is concerned, I answered that question in some detail in my initial reply. I indicated the exact position as far as that matter is concerned and I have nothing to add. As regards the position in December, the Irish Government took the view that a date should be set for Sinn Féin's entry to the talks once a ceasefire had taken place. Within the period of the ceasefire and the date, the relevant appreciation could be made as to whether the ground rules requirements — paragraphs 8 and 9 — were being complied with by not just the ceasefire but by the behaviour following it. The British Government's view was somewhat different. It felt there had to be a ceasefire after which it would look at whether the ground rules were being complied with. It was not willing to set a specific date without a ceasefire and it being allowed a margin for appreciation as regards compliance with the ground rules.

The difference was the subject of vigorous discussion between the Governments. Each Government, however, held its position on the matter, as they are entitled to do. My view was as I have [909] outlined while the British Government's was different. I assure the House that the position the Irish Government holds was pursued with the utmost vigour in December with a view to obtaining the relevant ceasefire and Sinn Féin participation.

On the other hand, it is clear under the ground rules that if the IRA had called a ceasefire, Sinn Féin would have got into the talks quite soon anyway; there was no question that Sinn Féin would not have got into the talks. Admittedly, there was the difficulty that it had not been told exactly how many days the discussion about whether it had complied with the ground rules would take. However, there is no doubt in my mind that if it had complied with the ground rules and had called a ceasefire, Sinn Féin would have been in the talks by now.

I regret the republican movement did not call a ceasefire on that basis. I appealed for one but there was no response. While we can analyse these matters as much as we like after the event, there was, and still is, an opportunity for Sinn Féin to take part in the talks if the IRA would call a ceasefire. That is the first step. It is obvious from the lessons of 30 years of Irish history — lessons which have been well learned and are fully understood by the republican movement — that violence achieves nothing in the context of Northern Ireland. The republican movement has accepted that analysis. The inevitable conclusion of such an analysis is that a ceasefire must be called sooner or later, and the sooner the better from everybody's point of view.

Miss Harney: Does the Taoiseach believe Sinn Féin is doing everything it can to bring about an IRA ceasefire? Will he say when the last official meeting between the Government and Sinn Féin was held?

The Taoiseach: I am not sure I agree with the implicit distinction the Deputy is making between Sinn Féin and the IRA. I think she may be making a mistake. I would be more inclined to agree with John Hume who said Sinn Féin is the political voice of a movement which has a military voice called the IRA and that it speaks with the same voice when it comes to the politics of our situation. In terms of the political direction of the movement, we are talking about a single movement which has a political and a military dimension. No party in this House has a combined military and political dimension; we only have a political dimension.

Mr. M. McDowell: We are thinking about a military one.

The Taoiseach: In the Deputy's case, I have no doubt he would wage defensive warfare because he is such a gentle soul.

Mr. S. Brennan: More name calling.

[910]The Taoiseach: I am trying to think of one for the Deputy, but it is taking me a long time.

I do not accept the distinction that Sinn Féin——

Miss Harney: Nor do I.

The Taoiseach: ——is going to the IRA and that it is going to do this and that. There is a difficulty here because we are effectively dealing with a unitary movement, as John Hume said. This unitary movement must make up it mind whether it is for peace. Nobody can do that for it; it is a decision it must make itself. It must stop projecting its problems, decisions and, more often, indecision on other people's shoulders. The republican movement, Sinn Féin and the IRA, must make that decision.

Mr. B. Ahern: In view of his recent discussions with John Major, is it the Taoiseach's understanding that it is written in legislation in Westminster that, if there was an unequivocal ceasefire, regardless of what other parties in the talks do, the British Government would have to allow Sinn Féin into the talks?

The Taoiseach: That is in the ground rules which are referred to in the legislation. Paragraphs 8 and 9 of the ground rules clearly indicate that if the requirements contained therein are met, Sinn Féin can enter the talks. Sinn Féin knows that and I have repeated it so often in the house that I thought at times the Deputy was getting tired of listening to me say it. Paragraphs 8 and 9 are quite clear and if they are met, Sinn Féin or any other party is entitled to enter the talks and nobody can stop them.

Miss Harney: I agree with the Taoiseach that there is no distinction between Sinn Féin, the republican movement or the IRA. On the last occasion I asked this question he said he was convinced the leadership of Sinn Féin was doing everything it could to bring about an IRA ceasefire. Is that still the Taoiseach's position? Will he tell me when the last meeting between officials and Sinn Féin was held?

The Taoiseach: There are people within the republican movement who might describe themselves as part of the leadership of Sinn Féin who are working for peace. That is undoubtedly true, although every time we see an IRA attack we must become more sceptical of their effectiveness. Against the background of the things which have been done so that there could be an IRA ceasefire, the fact that we see an intensification of IRA violence must lead to considerable scepticism about either the seriousness or the weight of influence of the people concerned. That remains to be seen. It should be left open for us to pursue whatever hope there is.

I have indicated and set out in my original reply the position which applies in regard to any [911] meetings sought. There was a meeting some time before Christmas but there has been none since.

Mr. B. Ahern: From his communications with John Major, does the Taoiseach believe the British Prime Minister will make any further moves with John Hume or anyone else to try to bring about a renewed ceasefire and renewed talks prior to the British general election?

The Taoiseach: I cannot say but the Deputy's focus on what the British Prime Minister must do to bring about an IRA ceasefire is to some extent placing the emphasis on the wrong place. It should be on the responsibility of the IRA and the republican movement to stop the killing now. This House should direct its attention to people who claim to be Nationalists like people in this House. We should try to influence those who claim to have the same creed as us to stop killing in its name. While I have no doubt there will always be something more than the British Prime Minister or any other British statesman can do, there is no doubt that the primary and overwhelming responsibility for the continuance of IRA violence rests with the IRA itself. Where previously there were no talks available for Sinn Féin to take part in, there now are. Where previously there were no ground rules to guarantee the rights of the minority in such talks, there now are. Where previously some Unionist parties would not talk to Irish Government representatives, they now sit around the same table with us. Sinn Féin can also sit at those talks under the ground rules we have negotiated if the IRA calls a ceasefire. While I will certainly encourage the British Prime Minister to do anything extra he can in terms of statements to make it easier for the IRA to call a ceasefire, I would not want such a statement to be interpreted as in any way removing from the shoulders of the republican movement the primary and overwhelming responsibility for its own acts and for the current lack of peace.

Mr. B. Ahern: The Taoiseach need not worry about anyone misinterpreting that. This House, regardless of who has been in Government, has spent 25 years renouncing violence and the republican movement. However, it is worth putting some emphasis on Mr. Major. The Taoiseach tried in December, supported by this side of the House, to look for an unequivocal ceasefire and to set a date, the result of six months' work by John Hume, supported by the Taoiseach, the Opposition and the Progressive Democrats, and this was rejected by John Major. When we try to convince the republican movement or the Nationalist people who might support them, what does one say about the British Government which rejects the Irish Government's and Dáil Éireann's proposals? That is still the position. I cannot stop the army council but I can urge the Taoiseach to get John Major to clarify where he [912] stands. If we know that, we can then try to convince at least some republicans of the right thing to do. We are not at that point because we failed and the Taoiseach failed to convince the British Government only a few weeks ago that, if there were an unequivocal ceasefire, a fixed date would be forthcoming. It seemed to break up on the basis that we were talking about next Monday, the day the talks were to resume after Christmas, and the British Government was saying behind closed doors that it was not Monday but might be Tuesday. If the difference was that small, why did we not succeed? That is why I strongly believe that the Taoiseach should try to encourage John Major to do something useful rather than considering the next general election.

The Taoiseach: Sinn Féin was given a date when it could take part in the talks which was 10 June. It had months notice of that date. If the republican movement wanted to take part in the talks, all it had to do was call an IRA ceasefire in good time and participate in the elections as it did and it would then have gone straight into the talks on 10 June. It should not be put about that the republican movement is not represented in the talks because it never got a date. It did get one — 10 June. When members of the movement turned up, they knew they would not be admitted because the IRA was continuing its campaign of violence and had not reinstated its ceasefire. The conditions were set out in the ground rules which require a declaration of a ceasefire but also that the conduct of an organisation be consistent with a ceasefire. It is not sufficient just to declare a ceasefire and to behave otherwise. We were talking about the loyalists a few moments ago and questions were raised about whether the loyalist parties should be taking part. The reality is that it is not enough to declare a ceasefire. One's conduct must also be consistent with it.

Mr. D. Ahern: Drumcree.

The Taoiseach: An IRA ceasefire would not make any sense if the IRA were to continue military operations during it because it would be a ceasefire in words alone, not in reality.

Mr. D. Ahern: Mr. Trimble at Drumcree.

The Taoiseach: The British Government's view was that it wanted some time to assess whether the reality on the ground matched the declaration. If the republican movement wants Sinn Féin in the talks, it knows it can and will be in the talks within a short time after the declaration of a ceasefire and compliance with the ground rules. It knows that well. Any attempt to pretend that, because it has not been given a specific date, although it would be desirable to give them a date, it justifies its continuing killing of people is [913] hair splitting of the most weak-kneed and amoral kind.

Mr. M. McDowell: Will the Taoiseach tell the House, once a ceasefire was declared, what further hoops the British Government would require Sinn Féin and the provisional movement to go through before it would enter into talks?

The Taoiseach: Basically, all that is required is that it would comply after the ceasefire with the provisions of the ground rules which means abstaining from violence. A suggestion was made by the British Prime Minister that there would be bilateral discussions with Sinn Féin and other discussions which would last a short period of time before it entered the talks. In practice, it would be useful for any party coming into a process midstream to have bilateral briefings before it enters the plenaries. There is nothing difficult or in the nature of a precondition about arrangements of that nature which are probably common sense in any event and people would seek them.

The reality is that, since 10 June and long before, Sinn Féin and the IRA have known exactly what they need to do to comply with the ground rules and for Sinn Féin to enter the talks. They need to comply with paragraph eight, a ceasefire, and paragraph nine, conduct consistent with a ceasefire. That is all. Once a reasonable brief time has been taken to ensure that paragraph 9 as well as paragraph 8 is being complied with, there will be no delay in Sinn Féin entering the talks if there is an IRA ceasefire. People should not give credence to the sort of sophistry which is emerging from the republican movement on this matter.

Mr. R. Burke: If it was all as simple as the Taoiseach has just outlined, why was there such a difference between the position of his Government and the British Government in December in relation to John Hume's initiative?

The Taoiseach: I have explained the situation as far as the difference is concerned. The difference was this Government took the view that it would be sensible to set a date and in the interim between that date and the ceasefire there would be sufficient time to ensure that paragraph 9 in particular was complied with. The view of the British Government was that compliance with paragraph 9 would be rendered meaningless by setting a date. It was mistaken in that view. The overriding reality is that if the IRA had called a ceasefire before Christmas Sinn Féin would be in the talks by now. The Deputy knows that as does Sinn Féin and everyone else. The IRA chose not to announce a ceasefire.

9. Mr. B. Ahern asked the Taoiseach when he expects the ratification process of Partnership 2000 to be completed. [1365/97]

[914]The Taoiseach: The document Partnership 2000 has been under consideration by the 19 social partner organisations which were involved in its negotiation since it was published on Friday, 20 December. I expect the endorsement process will be complete by the end of this month.

Mr. B. Ahern: Is the Taoiseach totally confident that Partnership 2000 will be endorsed by the trade union movement?

The Taoiseach: The trade union movement is a very important participant in the partnership but it is not the only participant and I hope all participants will ratify Partnership 2000. I am glad the Construction Industry Federation, Macra na Feirme, the Irish Farmers' Association, the Conference of Religious in Ireland, the National Women's Council, the Irish Tourist Industry Confederation, the Irish Exporters' Association, the Society of St. Vincent de Paul, Protestant Aid, the Chambers of Commerce of Ireland and ICOS, all of whom are participants in the social partnership, have to date endorsed Partnership 2000.

I hope the Irish Congress of Trade Unions, on behalf of the trade union movement, following consultations, discussions and decisions within the individual unions, will be in a position also to endorse Partnership 2000. It has a target of holding a national congress on 30 January at which that issue will be decided. I hope it will realise that in terms of take home pay and gross pay, trade union members are much better off than they were at the outset of the process of partnership. Not only has take home pay improved but there has been a number of other benefits to trade union members, particularly in the past two years, notably the abolition of third level fees, the increase in child benefit and stable low mortgage interest rates, all of which mean that trade union members are appreciably better off under a system of partnership than they might have been in a free for all.

Mr. B. Ahern: People will look at what happened in the past ten years and as the main architect of partnership agreements I am delighted that not alone did we convince many people but we convinced the Taoiseach that benefits accrued in the past two years. I hope he retains that view when he is back in Opposition and I am trying to implement such agreements. Will the Taoiseach outline how, in the context of Partnership 2000, he seeks to resolve the nurses' dispute?

An Ceann Comhairle: That is a separate question.

The Taoiseach: I thank Deputy Ahern for his support for Partnership 2000 which is acknowledged by many people to be the best partnership programme of all those negotiated in terms of the comprehensive nature of the commitments contained in it. I am even more pleased to note that a sister party of the Deputy's has also endorsed [915] this programme despite the fact that it had girded itself to criticise it a few days before it was launched.

Mr. M. McDowell: Do not talk about sisters.

Mr. B. Ahern: The Taoiseach voted against two of the other three partnerships.

The Taoiseach: This Government works so well that we are winning more and more support for our policies.

Mr. B. Ahern: The CIÉ workers marched to the Dáil today and nurses are on their way out. Will the Taoiseach say how he proposes to resolve that dispute?

The Taoiseach: The industrial issue raised by the Deputy was addressed by me on the occasion of the launch of Partnership 2000 when I indicated that the nursing profession is and has been doing work of a very high standard with commitment and skill in very difficult conditions. I understand fully the sense of frustration felt by many nurses. I also understand, however, that all of us, including nurses, have benefited from the fact that during the past ten years there have been rules for settling industrial disputes. All partnership agreements, including those of which Deputy Ahern claims authorship, contained a “no strike” clause with a statement that issues in dispute about people's salaries or wages will be settled by conciliation and negotiation and if that does not work, by independent adjudication and that there will not be recourse to strike action.

Strike action is contrary to Partnership 2000, the Programme for Competitiveness and Work and the whole concept of social partnership, the basis on which all employees, be they nurses, gardaí or people in the private sector, have been able to enjoy lower interest rates, greater take home pay, no university fees and other advances which have arisen directly from the partnership structure. It is very important that the rules of that structure, one of which is that issues in dispute are not settled by recourse to strike action, are respected by all.

Mr. M. McDowell: In regard to the key role the Taoiseach claims for himself in piloting through this most successful negotiation, will he indicate whether he sided with the Tánaiste or the Minister for Finance on public sector pay? Will he take credit for negotiating successfully the retention of Deputy Quinn as Minister for Finance despite a rather dubious coup de main on the part of the Tánaiste?

The Taoiseach: The Deputy reads too many newspapers. He has a particular attraction for the newspapers that accept contributions from him because the subject matter of his questions seems to derive from exclusive publications in his favourite newspaper. The Government has [916] worked very well in terms of achieving successful negotiation of Partnership 2000 while concluding a successful EU Summit. To be able to do both of those things successfully on the same day represents quite an achievement by the Government. I compliment every Minister who was involved in that process, including the Tánaiste and the Minister for Finance, both of whom played a crucial role.

Mr. Nealon: I wish to withdraw Question No. 60 in my name and put it down for oral answer next week.

Mr. R. Burke: I wish to withdraw Question No. 10 and put it down for oral answer next week.

23. Mr. Dempsey asked the Minister for the Environment if he will give details of the proposed system of equalisation in the new arrangements for local government. [1788/97]

Minister for the Environment (Mr. Howlin): The new system of local funding is based on assigning the proceeds of motor taxation to local authorities. The amount of this taxation collected by the different authorities will vary, in some cases significantly, from the income levels generated by the existing system — some authorities will collect considerably more and others considerably less. This requires a transfer of resources to ensure — as has been stated very clearly in the programme — that every local authority benefits from the changes.

Under the proposed equalisation system local authorities will retain 80 per cent of the proceeds of motor tax on non-goods vehicles and contribute all other motor tax revenues to a fund for redistribution. The resources of the fund will be distributed in the first instance to ensure that the income lost through the abolition of domestic water and sewerage charges and the rate support grant is made good in full to each local authority. The balance remaining will be allocated as equitably as possible among local authorities, having regard to needs and resources. Work has already commenced in my Department on developing a more finely tuned and comprehensive equalisation mechanism for 1998 and subsequent years. This will be provided for in legislation which will come before the House in the next two months or so.

Mr. Dempsey: Irrespective of the form of financing used for local authorities, I agree with the Minister that it should include the principle of equalisation. The Minister in his reply has not given any further detail than that which was available before Christmas. Given that local authorities had to make returns before the end of December, will the Minister confirm if calculations have been carried out in the Department?

[917] Will he also confirm if practically every county will get money from the equalisation fund and, if so, how many counties will be net contributors to that fund? Is it true that the county councils in Dublin will be the only net contributors to that fund? Figures from a survey I carried out of eight to ten counties reveal that councils in those counties are of the view that they will get a sum ranging from £1.5 million to £2.5 million from the fund.

Mr. Howlin: I confirm that the majority of counties and authorities will receive support from the equalisation fund. I welcome the Deputy's support for the concept of the fund which is largely based on work on health insurance I did previously when the Deputy and I were in Government. We looked at equalisation funds that operated effectively in the health insurance area.

A much more constructive way of looking at this is that nobody will be worse off and that every local authority in the country will be better off. The mechanism that will operate from this year will be that the Minister for Finance will indicate in his Budget Statement the arrangements for rates support grants. That will tide all local authorities over until such time as we enact the legislation to transfer formally and legally by statute, although it is accruing to them from 1 January, the proceeds of motor tax to local authorities. Eighty per cent of revenue from motor car tax, motor cycle tax and small revenues, such as licence fees and so on, will accrue to local authorities and 20 per cent of that revenue, together with that accruing from commercial vehicle tax, will go into the equalisation fund. We will have a substantial pool of money in that fund to redistribute. The simple mathematics of this is that the pool will be significantly bigger than the combination of rates support grant and service charges, which are being abolished, so there will be buoyancy. Two important principles to bear in mind are that this will be the first time in the history of the State that local authorities will have ringfenced funding available to them by statute for ever more and, second, it will be one of the most buoyant sources of revenue that we will have. It is a major achievement for the Government to give to local government that guaranteed source of income buoyancy into the future.

Interesting statistics I read in a newspaper reveal that in the first ten days of this year there was an 11 per cent increase in registrations over the very buoyancy equivalent period last year. Local authorities will have a good source of income from this day on.

An important fact to reiterate is that I have told local authorities we will continue to support the very high rate of commitment on the other funds they receive directly from the Department of the Environment in the area of housing for which my colleague, the Minister of State, has responsibility, and road grants. All Members of the House have recognised and appreciated the [918] historic level of non-national road grants I announced earlier this week.

Mr. Dempsey: Am I correct in assuming that a formula for the distribution of the equalisation grant has not yet been worked out by the Department? Will the Minister confirm that this year he will ensure no one will be worse off and that in future years it will be the Department's intention that an objective formula will be drafted which will take into account the state of development of the county, local authorities, the population, infrastructural needs and so on? Will he further confirm that the formula will be reasonably objective in so far as it is possible in such matters in that it will not be distributed at the whim of the Minister in the Department of the Environment where large sums of money could be allocated in one direction to the detriment of others? Is such a formula in place or being worked on or is it the Minister's intention that it will be in place for 1998?

Mr. Howlin: Objectivity depends on one's perspective and if one takes anything from anyone objectively, that is a damage. I confirm largely what the Deputy said. We started the process this year, but we will not have the detailed analysis of the functions, capacity, population distribution of each local authority that ultimately we will need to have an absolutely crystal clear and fair equalisation. The starting point this year will be to ensure that nobody will lose out and that everybody will be better off. The second step will be to share out as equitably as possible the benefits of the buoyancy I mentioned. Then we want to fine tune the criteria the Deputy mentioned. We have undertaken a survey to get fundamental data on population distribution, infrastructure support required and so on so that we can give a better distribution than the rates support grant, which was a rather crude system, did up to now.

We can tease this out when I introduce the legislation in about two months' time. I would see the equalisation fund being administered separately from my Department ultimately and the local authorities being represented on the management of that fund so that its distribution would be clearly objective and not at the whim of a Minister for the Environment or, much more worryingly, a future Minister for Finance, who might see it as a fund to be used lightly. We must establish it in a way to ensure it is protected from any predatory Minister for Finance, who certainly would not come from this side of the House. One does not know who might be in power in a decade or so.

24. Mr. Dempsey asked the Minister for the Environment if he has satisfied himself that the relevant local authorities are co-operating with the inquiry into water pollution at Nenagh, County Tipperary. [1789/97]

[919]Mr. Howlin: I take it that the question relates to the further investigation now being undertaken by the Environmental Protection Agency, following my request in October 1996, into the nature and extent of the groundwater contamination and the need for a hydrogeological survey of the Nenagh area. As the Deputy will be aware, the Environmental Protection Agency furnished the report on the contamination of the Gortlandroe Well, Nenagh, in September of last year.

I understand from the Environmental Protection Agency that in relation to the further investigation I required it immediately commenced detailed and comprehensive work which required considerable time and resources and that it is currently evaluating the results and has commenced the preparation of its report. I understand that the report will be completed and submitted to me during February. I also understand that Tipperary North Riding County Council and Nenagh Urban District Council co-operated extensively with and assisted the agency in its work and investigations.

Mr. Dempsey: This issue was serious last summer and will remain so until it is clarified. The Environmental Protection Agency undertook its investigation and prepared an interim report, but it was also due to complete further reports. From information I received from local sources I understand that the two local authorities concerned were less than co-operative with the Environmental Protection Agency. My concern and I am sure that of the Minister in this matter is that there is danger of the Environmental Protection Agency, a body which I and the Minister hold in high regard, coming into public disrepute because of non co-operation or slowness to co-operate on the part of the local authorities concerned. To my knowledge the local authorities were very slow to come forward with the information.

An Leas-Cheann Comhairle: Questions, please.

Mr. Dempsey: Will the Minister ask his officials to make it clear to the local authorities that it is his view and that of the Members of this House that there should be full co-operation and a speedy reply should be forthcoming at all times?

Mr. Howlin: I strongly share the Deputy's view but I have received no report from the Environmental Protection Agency that there was anything but full co-operation from both local authorities. On publication of the initial report I asked for a full investigation which commenced on 21 October. This included the commission of special ordnance surveys of the region; research and review of geological and hydrogeological information for the region; preparation of a brief for specialist hydrogeological consultants to report on the ground water of the region generally; a field survey to identify suitable borehole sampling locations within a 20 kilometre grid [920] square centred on Gortlandroe; an international database and literature search on the chemical substance OMCT Siloxane, the substance detected in the water. The Environmental Protection Agency reviewed all of the metrological data for the region. There was liaison with Tipperary North Riding County Council and Nenagh Urban District Council on the information in their possession while 20 sampling locations within the 20 kilometre grid were investigated. The information is now available and the report has been drawn up. I am not aware of any information required by the Environmental Protection Agency which was not forthcoming. I look forward to receiving the report which I will make available as it should be a public document. I understand the Environmental Protection Agency has instigated legal proceedings against Proctor and Gamble and the case will be heard shortly in the District Court.

Mr. Dempsey: Is the Minister aware that some information is outstanding from Tipperary North Riding County Council and Nenagh Urban District Council? I understand it is not necessary to complete the case being taken by the Environmental Protection Agency. Have the recommendations of the preliminary report been implemented? It recommended that all local authorities should carry out a risk assessment of ground water. Nenagh Urban District Council was also asked to undertake a chemical tracing study. Have these been completed?

Mr. Howlin: I would welcome any data the Deputy might have about information the Environmental Protection Agency needs. As he is aware, I requested all local authorities to carry out their own survey. I understand these have been carried out. While the temporary scheme is working well, the Deputy will be glad to know that the Nenagh regional water supply scheme which I decided to fast track at a cost of £11 million will commence next month. That is a positive and welcome development for the people of the town who suffered last summer. I have instructed all local authorities to give priority to water supply schemes in close proximity to an industrial process.

25. Miss Quill asked the Minister for the Environment if he is in receipt of a recent report by a leading environmental scientist which states the water quality in Lough Corrib is under severe threat from agricultural and sewage pollution; and the action, if any, he will take on foot of the findings of this report. [1502/97]

Mr. Howlin: Lough Corrib and River Corrib are designated salmonid waters and, accordingly, subject to the monitoring and pollution control requirements of the European Communities [921] (Quality of Salmonid Waters) Regulations, 1988 which give effect to Directive 78/659/EEC.

Responsibility for water quality in Lough Corrib and implementation of appropriate measures to deal with pollution are primarily for the relevant local authority, Galway County Council, and the Environmental Protection Agency in so far as activities licensable by the agency may be involved. Extensive statutory powers are available under the Water Pollution Acts, 1977 and 1990, and the Environmental Protection Act, 1992 to support these bodies in their respective roles.

The recent Environmental Protection Agency report, Water Quality in Ireland 1991-94, indicates that an assessment of water quality in Lough Corrib, based mainly on mid-lake investigations carried out by the Central Fisheries Board, confirmed a continuing trophic status for the lake, compatible with a low probability of pollution or impairment of beneficial uses. A slight reduction in planktonic algal growth was also recorded, a positive development in relation to water quality.

I am also aware of the recent report Lough Corrib — Cause for Concern, and welcome it as a further addition to the body of research available on the lake. The report, however, is affected by limitations in regard to sampling sites and sampling periods. These limitations necessarily affect the usefulness of the data and give rise to difficulties with interpretation. The absence of hydraulic measurements enabling the report to quantify nutrient loads by source, river input or sector compounds these difficulties. The report does, however, highlight the inadequacies of relying exclusively on mid-lake sampling points and the strong case for conducting a comprehensive assessment of the littoral zone of this important lake system.

A number of initiatives addressing these concerns in relation to the lake water quality assessment and the threat from agricultural sources of pollution, as highlighted in the report, are under way. Projects commissioned by the Environmental Protection Agency under the Operational Programme for Environmental Services include an investigation headed by the Zoology Department of UCG of eutrophication processes in the littoral zones of western lakes, including Lough Corrib. The project involves a detailed study of how lakes respond to nutrients, especially phosphorus inputs into the littoral areas. One of its main aims is to develop an early warning system which will be capable of detecting subtle, adverse changes in the littoral areas of the lakes. The projects also include a study by Teagasc-TCD on agricultural soil phosphorus (P) losses to water in Irish catchments. The aim is to develop a model which will predict soil P losses given soil type, soil P level and precipitation amounts so as to facilitate decisions as to whether pollution control resources should be concentrated on control of soil phosphorus levels or control of point source farmyard pollution.

[922] These studies form part only of the Environmental Protection Agency's ongoing research and monitoring programme for western lakes and water quality generally and the findings will be of benefit to local authorities and the agency in the performance of their water pollution control and management functions.

A range of actions are being pursued for the improved management and-or reduction of nutrients, including phosphorus, with a view to tackling the problem of lake eutrophication. These actions include: promotion of the code of good agricultural practice to protect waters from pollution which I launched jointly with the Minister for Agriculture, Food and Forestry in July 1996; the amendment, in the Waste Management Act, 1996 of the Water Pollution (Amendment) Act, 1990, with which the Deputy will be familiar, allowing local authorities to require farmers to prepare nutrient management plans so as to achieve the correct balance between water quality protection and nutrient requirements for crop production taking account of recommended application rates and nutrients already available in the soil; the launch on 13 December 1996 of revised Teagasc recommended application rates for phosphorus fertilisers for grassland; the extension since 3 September 1996 of the integrated pollution control licensing system under the Environmental Protection Agency Act, 1992 to new intensive agricultural activities in the pig and poultry sectors; the imposition by local authorities and the Environmental Protection Agency of controls, as appropriate, in respect of phosphorus discharges from industrial activities through the exercise of their statutory licensing control functions; the ongoing implementation by my Department, in conjunction with local authorities, of the major programme of capital investment, entailing estimated expenditure of £1.3 billion by 2005, on upgrading sewage treatment facilities to meet the requirements of the Urban Waste Water Treatment Directive; the rural environmental protection scheme and the control of farmyard pollution scheme operated by the Department of Agriculture, Food and Forestry are specifically geared to the adoption of environmentally friendly farm practices and provide grant assistance for necessary investment to support such practices; under Partnership 2000 provision will be made by way of improved capital allowances for a targeted and monitored measure to support investment by farmers in necessary pollution control measures.

To provide better co-ordination for the above actions and to intensify efforts at protecting the vulnerable water quality of lakes my Department is finalising a lake catchment management strategy. This will aim to encourage an integrated approach to catchment management, based on the co-operation of all economic and other interests involved.

[923]Miss Quill: I regret the Minister's answer meandered over every waterway in Ireland except Lough Corrib——

Mr. Howlin: That is not true.

Miss Quill: ——which was the specific point of the question and which was the subject of the report to which my question referred. Will the Minister concede that the O'Sullivan report is the most comprehensive study ever carried out on the waters of Lough Corrib? Does he accept the report's conclusions on the quality of the water of Lough Corrib? Is he satisfied that the Environmental Protection Agency has fulfilled its responsibilities in monitoring pollution in Lough Corrib?

Mr. Howlin: I cannot accept the Deputy's first contention. My comprehensive reply focused specifically on the western lakes and Lough Corrib in particular.

Mr. Molloy: We know about the other lakes.

Mr. Howlin: One of the problems with the report is that the samplings were only from the littoral zones or the edges of the lake.

Mr. Molloy: That is not true.

Mr. Howlin: I can only read the report and the sampling measures.

Miss Quill: Did the Minister read this report?

Mr. Howlin: I did. As a result, the data is not as comprehensive as it might be. However, there are good points in the report. It points out that some of the monitoring carried out by the Environmental Protection Agency, which concentrates on mid-lake samplings, is not sufficiently fine tuned to pick up mild contamination of the littoral areas. The agency is changing its methodology to ensure there is a comprehensive monitoring system.

I have given a comprehensive list of the range of activities undertaken by my Department and the Department of Agriculture, Food and Forestry to ensure that increases in mild pollution in waterways will be detected by the Environmental Protection Agency. The most recently published report on Lough Corrib, that for 1991-94, shows a slight improvement and not a slight deterioration. However, we will not become complacent. We want to ensure that the REPS, the investment programme in the control of farmyard pollution and the investment programme in sewerage schemes, for which I am responsible, will in a co-ordinated manner stop the eutrification of our lakes. That will be my priority.

Miss Quill: I am not convinced the Minister has read the O'Sullivan report in detail. With regard to the location of the dump in Curragh Line, County Galway, is he concerned about the [924] report's remarks on the location of that dump? If so, what discussions has he had with the municipal authorities in that area? What discussions has he had with the Department of Agriculture, Food and Forestry and Teagasc about the efforts that must be made to reduce the amount of agricultural waste seeping into Lough Corrib in greater amounts each year?

Mr. Howlin: With regard to the location of landfill, the Deputy will be aware, following 18 months of debate on the Waste Management Act, that stringent environmental standards are being put in place with regard to the future management and operation of landfill sites. The Environmental Protection Agency has been given the responsibility of implementing the legislation and will ensure that landfill sites will be carefully monitored and not have an effect on ground waters. The Deputy will remember the lengthy debates we had on that issue when discussing the Act.

In addition, I took the opportunity when drafting the Waste Management Bill to amend previous legislation to enable local authorities to require a nutrient plan to be established for farmers who might potentially impact on water systems such as Lough Corrib. Galway County Council can require a farmer who might have a potential impact on those waters to produce a nutrient plan which the council can monitor to ensure there will not be inappropriate or overextensive applications of nutrients to land. I have worked closely with the Minister for Agriculture, Food and Forestry to dovetail our Departments' schemes in this regard. We took that initiative last year to ensure the two Departments focus in a co-ordinated way on the western lakes. The benefits of that are already visible.

Miss Quill: Has the Minister requested the Environmental Protection Agency to intensify its monitoring procedures in respect of Lough Corrib? Is the Minister prepared to furnish the House with a report which will demonstrate that an improvement will be effected as a result of the worthwhile study on Lough Corrib carried out by this environmentalist at the request of the Federation of Anglers?

Mr. Howlin: I welcome the report. Any additional information we receive on vulnerable ecosystems such as those in the western lakes is most important. We will take careful cognisance of the report and I will require the Environmental Protection Agency to do likewise. We will possibly make changes in the analysis systems to ensure the shoreline areas are more extensively monitored in addition to relying on mid-lake samplings which, by definition, will be purer than those from the lake's edges. Much good can come from this report.

As soon as the catchment strategy is finalised by my Department, it will be published and will no doubt be the subject of debate and questions [925] in the House. We all have the same objective of ensuring that the high quality of the watercourses of this country is not only maintained but improved in the future.

26. Mr. E. Ryan asked the Minister for the Environment the steps, if any, he has taken in view of the new evidence produced in relation to NIREX in his capacity as chairman of the Cabinet Committee on Sellafield; and the plans, if any, he has to meet Mr. John Gummer. [1798/97]

Mr. Howlin: The ministerial committee on Sellafield and the Irish Sea is continuing its role in ensuring good co-ordination of strategy and overseeing the work of Departments with responsibilities in this area.

The Government's opposition to the NIREX proposal for a rock characterisation facility near Sellafield has been clearly stated to the UK authorities, including the Secretary of State for the Environment, as a result of bilateral contacts at ministerial and official levels, correspondence and, in particular, the presentation made in January 1996 on behalf of the Government by the Minister of State at the Department of Transport, Energy and Communications to the UK public inquiry on the matter. The Government's concerns, as outlined at this inquiry, centre on the proximity of Sellafield to the Irish Sea, the uncertainties about the geological and hydrogeological nature of the area and doubts about whether the building of a radioactive waste repository near the marine environment is compatible with UK commitments under EU and international law.

The Minister of State at the Department of Transport, Energy and Communications has referred copies of the recently available NIREX memorandum to the Radiological Protection Institute of Ireland and the Geological Survey of Ireland for examination and advice. The need for a further approach to the UK authorities and the nature of that approach will be determined in the light of these assessments and advice, taking account of the strong case already made by the Government in relation to geological and hydrogeological uncertainties attaching to the NIREX proposal.

Mr. E. Ryan: I welcome the fact that the Government made a presentation to the oral hearing. Is the Minister concerned about the public inquiry given that English newspapers have reported that NIREX has signed £50 million contracts for the next stage of this development before it has received permission? It appears that NIREX does not take the public inquiry seriously. The British environmental agency was not permitted to go before the public inquiry and it has said, off the record, that it opposes this proposal. Can the Government secure a copy of that report?

[926]Mr. Howlin: The leaked report is a vindication of the Irish Government's position last year. The issues we raised about the geology and hydro-geology of the area were the focus of our presentation. The fears we expressed have been raised by the scientists employed by NIREX. That vindicates not only the stand we took but also the focus we presented to the inquiry. The Government would be most concerned if NIREX expected rubber stamping of the due process in the United Kingdom. We are carefully monitoring this. I raise this issue directly and frequently with the British Secretary of State, John Gummer, to the extent that I think he regards the whole nuclear industry as one of my fixations. He wrote me a note at one Environment Council meeting asking me particularly to let one meeting pass without raising it as an issue.

Mr. Molloy: That is part for the course for the Minister with the British on this issue.

Mr. Howlin: We will keep on the pressure and use not only bilateral contact of persuasion but, more importantly, since the co-ordination group that I chair has been established, every international forum and treaty to voice our total opposition to this facility. I do not want to pre-empt the decision of the British Secretary of State but, whatever decision he makes, we will continue to oppose this development in whatever legal ways are open to us either bilaterally or in the international context.

Mr. E. Ryan: I thank the Minister for his reply but will he not agree that, if NIREX has signed a £50 million contract for the next stage of the development, this is a rubber-stamping process? As is the case frequently in England this company will go so far down the road with the development and, having spent £200 million, £300 million or £400 million, it will not want to stop the development. That is our concern and the concern of the people who objected at the oral hearing in England. If the report in the papers that NIREX has signed a contract for £50 million is true, strong indications must have been given to the company that this is just a rubber-stamping exercise.

Mr. Howlin: I would be very concerned if NIREX adopted the attitude that this was a rubber-stamping process. From my direct contacts over more than two years with Secretary of State Gummer, he is not a person to take for granted on most issues. If I was an applicant for any licence to him I would expect to get a vigorous assessment. I hope that is the case in this instance; I certainly will be monitoring it. The Department of Transport, Energy and Communications, which has direct responsiblity for nuclear safety matters, is monitoring this issue and we must wait to see what comes of that. We have to assume that due process in our neighbouring country will take place. We cannot at this stage assume that [927] any advance commitments made by a company can presuppose that the application will be rub-ber-stamped. We are monitoring the issue very carefully. The views of the Irish Government are well known to the British Government. BNFL recently offered to make a presentation to the committee I chair. I acknowledged its offer but declined to accept the presentation as we are well aware of all the data in relation to these matters. Our determination to follow through on this issue is clear and whatever avenues internationally are available to us, we will use.

An Leas-Cheann Comhairle: There are three Deputies offering but there are other Deputies present whose questions I want to reach. I will call the Deputies offering but I ask for brevity in deference to their colleagues. I call Deputy Sargent for a concluding question.

Mr. Sargent: Will the Minister consider using the THORP case as a bench mark in dealing with the NIREX proposal in the light of BNFL's own admission, in the person of Chris Harding, that Sellafield is probably not the best geology for a national waste dump but if it meets Government criteria, that is all that matters. Those comments were reported in the Daily Telegraph in November 1991. Would that be a consideration in dealing with the matter legally?

Mr. Howlin: Yes. As I said, if there are any legal avenues open to us they will be explored. The Attorney General serves on the committee I chair to ensure that every legal avenue is explored. We have not ruled out the prospect of taking legal action should a reasonable prospect of of success present itself to us. It is a matter of grave concern if the memorandum referred to in Deputy Ryan's question, which was prepared by NIREX's director of science and has now become available, suggests there is considerable uncertainty and concern on behalf of the company and its own experts whether the scientific and geological case will be strong enough to meet the safety criteria laid down by the UK authorities. They are saying that is in doubt and that is a cause of concern for us. It reinforces the case the Government made directly to the public inquiry, which was an unprecedented step, and we will be pursuing vigorously our efforts to influence the decision of the British Secretary of State. Hopefully if he rejects the proposal that will be the end of that particular matter. If not, we will see what other legal channels are available to us to take whatever action necessary to protect the Irish people from this potential threat.

Mr. Molloy: I listened carefully to the Minister's reply. Will he agree that the sad reality is that the opposition of the combined parties in this House to the activities of the British nuclear industry has been ignored by the British Government to date? The Minister indicated that there [928] are not many avenues currently open to him to allow him take the kind of steps that would result in a realistic outcome to stopping the NIREX development and the development at Sellafield generally. In view of this will the Minister indicate the action the Government believes it can take at European level which seems to be the only real possibility for effective action? If we could mobilise support among EU member states there might be some hope of stopping the British authorities in what they are supporting and propose to continue to invest in despite the concern of the Irish community as represented through all the political parties elected to this Parliament.

Mr. Howlin: There are two separate questions. The NIREX underground geological repository for nuclear waste is a stand alone issue. The other issue is the development of THORP and the ongoing threat posed by the work at Sellafield.

Mr. Molloy: They are both a threat.

Mr. Howlin: Both are to be opposed but the strategy has to be slightly different. One proposal does not yet have planning permission and we must fight to ensure that it does not get planning permission. It has gone through the public inquiry phase and is with the Secretary of State. We have made a strong case as a Government to the public inquiry and we hope account will be taken of it by the Secretary of State in coming to his conclusion. We will continue bilaterally to impress our case upon him; that process is ongoing.

In regard to the second issue, I read into the record of the House previously a range of initiatives we have taken in opposing the development of Sellafield in particular and British nuclear developments generally because I am also concerned about some of the aging Magnox reactors outside the Sellafield area that pose a potential threat to this country. Many of them are 25 years old or older and we must work out how they will be decommissioned and what will happen to them afterwards. I am very concerned that for generations to come they will pose a threat to the Irish people. I have raised this issue repeatedly at European level, not only within the European Council of Environment Ministers but also at the pan-European conference of all Environment Ministers held in Sofia. It is interesting to note that at that conference the British Minister joined with the other European Union Ministers in voicing concern about some of the nuclear facilities in the Eastern bloc countries and how they will impact on the rest of Europe, but he did not take kindly to me raising our concerns with the UK authorities in the same forum. I will continue to do that.

I do not want to waste the time of the House talking about our initiatives in relation to the International Maritime Organisation which will greatly strengthen safeguards on the control of transportation of fuels to Sellafield which is of concern to those living on both sides of the Irish [929] Sea. We took an initiative at the Intergovernmental Conference on strengthening the EURA-TOM Treaty to place greater emphasis on public health and environmental protection as part of the treaty. We ratified it and other nuclear safety conventions in July last year and have made efforts to ensure all EU member states and the International Atomic Energy Agency does so as soon as possible. I will not list the other initiatives which I previously mentioned in the House but the Deputy can be assured that every channel and available international fora the Government can use to advance our case——

Mr. Molloy: They have all been ineffective so far.

Mr. Howlin: That is not the case. We cannot say we have been successful until the British nuclear industry has been effectively closed down. However, our ongoing campaign has had a significant impact in terms of stemming the development of the British nuclear industry to date.

Mr. E. Ryan: Will the Minister ask Mr. Gummer about the significance of NIREX signing £50 million contracts before it received permission? The next time the Minister attends a meeting with Mr. Gummer perhaps he could slip him a note pointing out that many geologists said that site six, which is in Mr. Gummer's constituency, is the ideal place for the dump. Perhaps then Mr. Gummer would understand our phobia about the nuclear industry.

Mr. Howlin: A British Minister would not like direct interference with due process in the UK.

Mr. E. Ryan: Especially in his own constituency.

Mr. Howlin: We have made a strong case and will continue to make it. I would not appreciate a Minister from another jurisdiction interfering in due process in my country.

Mr. Molloy: The Minister for Finance does not like it here.

Mr. S. Brennan: He told us that a long time ago.

Mr. Howlin: I will continue to put a strong case to him. I will have an opportunity to impress the case upon him within a few weeks at the next Environment Council meeting.

27. Mr. N. Ahern asked the Minister for the Environment when he will approve the redevelopment of Ballymun, Dublin 11; and if he will make a statement on the matter. [1523/97]

[930]Minister of State at the Department of the Environment (Ms McManus): Proposals by Dublin Corporation for the redevelopment of the Ballymun estate are under consideration and a decision will be made and announced as soon as possible.

I have approved the corporation's proposals to accept a tender for works to the roofs of the tower and spine blocks. This is a necessary shortterm measure as the roofs have reached the end of their serviceable life and need replacement to protect the buildings and their occupants against weather conditions.

Mr. N. Ahern: I thank the Minister of State but she did not tell me anything I did not already know. What is the reason for the delay, given that the Minister met local activists last September? Has the matter gone to Cabinet since? I presume the Minister and the Minister of State are of one mind on this matter. Are they not receiving support from their Government partners? Is Cabinet approval for the matter necessary? Has it gone to Cabinet yet?

Ms McManus: The Deputy complained the information was not new, but my reply is true. The proposals submitted by the corporation in the middle of October are extensive and involve, in effect, a total redevelopment of the Ballymun estate. They are also extremely costly, involving approximately £179 million. In addition, there is a requirement to adopt a more strategic approach to the redevelopment of Ballymun.

While I understand the Deputy's impatience, many of the problems with which we are dealing arose from an approach in the past which demanded instant solutions. A famous commentator said that to every difficult problem there is a solution which is simple, neat and wrong. The Ballymun estate was a simple solution but, with hindsight, it was the wrong solution. I want to ensure, when work is carried out in Ballymun, that it is comprehensive and deals with the complex problems on the ground. It is not just a housing problem, although housing is an important element. We are developing a strategic approach and we must make allowance for proper administration and consultation in addition to funding. It is a complex problem but I assure the Deputy that progress is being made and we are making every effort to ensure that it continues. The Deputy should appreciate that we are adopting a comprehensive approach which was lacking in the past, creating a tremendously negative knock-on impact in terms of the current problem.

Mr. N. Ahern: The Minister of State did not say whether the matter must go to Cabinet. I agree it is more than a housing matter but I remind her that much good work is being done locally in terms of building up community activity and involvement. However, spirit cannot be maintained [931] forever and people are beginning to wonder if they are being strung along or if the matter will work out favourably. I accept the plans and proposals have changed a number of times in recent years but they involve total or partial demolition. This basic issue has been under examination for more than two years. We are not seeking £180 million or any money this year. Does the Minister realise we are not trying to put a serious strain on his finances this year? We are seeking approval in principle to allow the corporation to establish its project team and get matters moving. Even if approval was granted today, a house would not be built for two years or more. Will the Minister grant approval to allow the corporation to proceed? Must the matter go to or has it reached Cabinet?

Ms McManus: It is important that funding is in place. We must ensure, when decisions are made, that funding is in place to back them up.

Mr. N. Ahern: The matter has been ongoing for ten years.

Ms McManus: Funding must be approved by the Cabinet. The plan being developed will take a number of years to finalise. It is a huge project but initial funding must be available for it to commence. It is unsatisfactory for everybody, including public representatives and the local community, to give the go ahead for a project without having resources available to back up the decision. We must ensure in addition to funding that a well integrated approach is developed which deals with housing and other issues related to it and the general community.

Mr. N. Ahern: When can we expect the result of the deliberations?

Ms McManus: We are developing plans as quickly as possible. The Minister and I are keen to make progress and we are working on them. I assure the Deputy there is no undue delay. We are aware of the importance of getting the project up and running. However, we must also ensure it is right before we start.

28. Mr. Deasy asked the Minister for the Environment if he is concerned at the number of beaches and coves which do not conform to the standards required for the EU blue flag status; and the plans, if any, he has to improve the situation in a significant manner. [22069/96]

Mr. Howlin: Ireland's record on blue flag awards to beaches compares very favourably with the rest of Europe. Statistics compiled by the Foundation for Environmental Education in [932] Europe — FEEE — which operates the scheme, indicate that 50 per cent of Irish beaches were awarded blue flags in 1996 compared to the European average of only 12 per cent. The next most successful country was Portugal, where 34 per cent of beaches obtained blue flags.

The criteria for the award of blue flags are determined by FEEE and relate to water quality, facilities for visitors, beach management, including litter control, environmental information and display facilities. As far as water quality is concerned, FEEE seeks to emphasise and recognise bathing areas achieving standards of excellence, assessed on the basis of guide values for certain parameters contained in the Directive on the Quality of Bathing Water. These values are up to 20 times more stringent than the mandatory standards set in the directive.

Applications for blue flags are usually made by local authorities and it is primarily a matter for them to ensure that the criteria for beach management and water quality are satisfied. Major investment in sewage treatment facilities will support local authorities in making successful applications. In addition, extensive environmental control powers are available to local authorities to deal with activities which may compromise their ability to observe the criteria.

Mr. Deasy: It is only natural that, because of our isolated location, many of our beaches are unpolluted. However, 50 per cent of them have not passed the test, although we have the best record in Europe. Has the Minister any intention of raising the capital allocation to local authorities for sewage treatment plants of the type he mentioned, because this is the cause of the problems which adversely affect our tourism industry? Has the Minister plans to eliminate the pollution that exists at a number of our major holiday resorts and beaches?

Mr. Howlin: Fifty per cent of our beaches meet the stringent requirements to get a blue flag, but that is not to suggest that the other 50 per cent are polluted. There are a number of reasons for beaches failing to meet the requirements. It may be that they do not have sufficient monitoring, that it is not frequent enough, that the facilities for the visitor are inadequate or that there is inadequate display of signage relating to facilities and the local eco systems. A range of criteria must be met, apart from the pollution criteria. It is heartening to know that we have the most unpolluted beaches in Europe. It is also heartening to know that between now and the year 2005 — the operational date for the waste water directive — we will be expending £1.3 billion on sewage infrastructure here.

Also of note, and important for us to recognise, is that no area of the Irish coastal zone has been designated by this Government or the previous Government as less sensitive and requiring only primary treatment. All the new sewage plant will be to at least secondary or secondary plus standard. [933] This is not the case in the United Kingdom, stretches of whose coastline have been designated as less sensitive. The investment programme I have indicated means that by the year 2005 we will have the best and cleanest coastal zones in Europe.

Mr. S. Ryan: I am very pleased with the statistics that the Minister has related. Is he satisfied that the country as a whole is benefiting sufficiently in the context of tourism from the fact that such a high percentage of our beaches have blue flags? Regarding the 50 per cent of beaches which were turned down for blue flags, the quality of the bathing water was one of the most important features, particularly on the east coast. Is the Minister satisfied that coastal county councils are doing enough and that the Government and the EU will have the money to provide treatment plants to bring bathing water up to the required standard?

Mr. Howlin: I have indicated that an investment programme of £1.3 billion has been earmarked to bring all our coastal zones up to the standards that will be required in the year 2005 under the European directive. We are well advanced in investing huge sums of money for sewage treatment and management. That programme is continuing. I believe that the very major investment that will be required in Dublin will be forthcoming and that areas like north Dublin can link into the secondary treatment facilities that will be coming on stream so that every citizen, especially those on the east coast, will continue to enjoy very high quality bathing waters and can look forward, as this infrastructure is put in place, to even better quality bathing water in the future.

Written Answers follow Adjournment Debate.

An Leas-Cheann Comhairle: I understand the Minister for Finance has asked the Party Whips to inform Members that the Principal Features of the Budget will be circulated now in the House, with his speech, strictly on condition that the budgetary measures remain confidential until the Minister has announced them in the House. I would ask Members to respect confidentiality in this matter. I now call on the Minister for Finance, Deputy Quinn, to make his Budget Statement.

Minister for Finance (Mr. Quinn): This is a budget about the concerns of today, the priorities for tomorrow and our plans for the future. It is a budget about change, compassion and confidence.

Mr. R. Burke: It is for the election.

[934]Mr. Quinn: The full annual value of the additional amount which I am investing today in our society is, at over £650 million, the biggest in the history of this country. As a result, for those on PAYE and full PRSI, a married worker with four children earning £210 per week gains over £14 per week; a single worker earning £270 per week gains £8 per week; and a married couple with four children earning £28,000 per annum gains £888 per annum or £74 per month.

People receiving social welfare payments will get an increase of twice the rate of inflation. This year we will make real progress towards achieving the targets set by the Commission on Social Welfare. Small firms and family businesses will get reductions in tax to help them continue the increase in economic growth and in jobs.

I intend to do this, and more, while at the same time providing for a significant current budget surplus for the first time in our history. Moreover, the general Government debt ratio will be the lowest since we began calculating this measure back in 1989.

Over the past two years this Coalition Government, in which I am proud to serve as Finance Minister, has made spectacular progress in developing our economy and combating social inequality while at the same time successfully managing the nation's finances. In doing so, we have confounded those commentators who said that you cannot achieve social progress and fiscal responsibility at the same time. In fact, we have and the record is there for all to see.

Since the end of 1994 employment has grown by over 100,000 or 8.5 per cent to about 1,300,000 — the highest number of people at work in the history of our State; unemployment has fallen by 31,000 or over 14 per cent; GNP has expanded in real terms by over 14 per cent; the level of investment has risen by about 20 per cent; capitation grants for children in primary school have risen from £20 and £25 to £29 and £34, an increase of between 35 and 40 per cent; tuition at universities and other State-funded third level colleges is now free, with the abolition of fees; the number of households assisted under the social housing scheme has risen from 8,540 in 1994 to 10,020 in 1996; total spending on arts and culture has risen from £23 million to £46 million or by 100 per cent; over 3,000 extra people are employed in delivering improved services in health and education; real consumer spending has grown by almost 10 per cent; exports have risen by over 25 per cent; inflation has averaged about 2 per cent each year; the general Government deficit (GGD) has been reduced from 1.7 per cent to 1 per cent of GDP; and the general Government debt to GDP ratio has fallen from 88 per cent to 73 per cent. These economic and social statistics tell the facts. Taken together they represent the most dramatic economic and social development of our society since this State was established just 75 years ago. Ireland is now a national and international success story.

I want, therefore, at the outset of this budget [935] to pay a special tribute to workers, employers, farmers and businesses for the record breaking performance which they have achieved. The policies of this Coalition Government have contributed to our collective success. The lessons of recent years, and indeed of previous Governments, have been confirmed by our collective success. Social partnership works.

It is clear that the consensus approach to developing and managing our economy is successful. It ensures continued economic growth, real improvements in take home pay, increased numbers at work and better social services for all of our people. It has produced real results at home and it has caught the admiration of commentators abroad.

However, we still have major problems of unemployment and poverty in our society. Long-term unemployment remains unacceptably high. The poverty that it brings limits the hopes and aspirations of too many of our people. We must improve and deepen our measures to deal with this problem and this budget begins to do that.

Partnership 2000

The social partners and the Government have recently completed negotiations for a new agreement to succeed the Programme for Competitiveness and Work or PCW. The new programme, Partnership 2000, aims to build on the success which we have achieved together — in particular the creation of a dynamic low inflation economy. The primary objective of economic policy under the new programme will be to secure and strengthen the economy's capacity for sustainable employment and economic growth. This will make it possible to continue to reduce taxes, to raise living standards generally and to generate the resources for improved social inclusion measures while maintaining competitiveness.

The new partnership is based on acceptance by all its participants of a commitment to a reduction in the tax burden; a commitment to improved social measures to tackle long-term unemployment and social exclusion; moderate wage increases in the context of low inflation, with a strong focus on competitiveness; agreement on the management of the public finances, including a slowdown in the rate of increase in current public spending; and agreement on a firm exchange rate strategy.

Adherence to these principles will ensure that we can continue to develop our economy upon sound foundations. Underpinning moderate wage increases and social development through Partnership 2000 is the best way to maintain low inflation over the medium term. Low inflation and minimising both public sector deficits and the debt burden are essential components of a sound economy. Their achievement will also ensure that we continue to qualify to participate in the single currency under European economic and monetary union.

I look forward to the ratification of the new [936] programme by all of the social partners. It will ensure this nation's continued economic and social progress up to the beginning of the next century. Based upon our experience to date and the real progress that our people, working together, have made during the course of the previous programmes, Partnership 2000 is the best way forward for all of us.

The budget which I am presenting today is clear evidence of this Government's intention to deliver on its commitments under the new programme.

Public Service Pay and Public Service Change

The pay agreement which forms part of Partnership 2000 provides for increases in the public service in line with those in the private sector, totalling 9.25 per cent over 39 months. The method of application of the first phase of the pay agreement in the public service will limit costs in 1997 by restricting the increase payable in July next to the first £200 per week. In addition, payment of the local level negotiations provision of 2 per cent is linked to the achievement of real verifiable progress in the public service programme, Delivering Better Government.

In 1997 pay increases will add an estimated 5.5 per cent or £265 million to the Exchequer pay and pensions bill. This is largely due to the public service pay increases under the PCW pay agreement and the need to fund outstanding commitments under the PCW local bargaining arrangements, which the Government intends to honour. These increases and the cost of service improvements, including those I am announcing today, will bring the total pay and pensions bill to approximately £5,150 million.

This country and all its people — particularly public service workers — need a modern, efficient and effective public administration. The impact of change must be reflected in the development of our public services at both national and local level. The programme Delivering Better Government sets out a complete range of changes which are designed to improve the performance of the public service, increase value for money and deliver a better service to the citizen as customer. The commitment in Partnership 2000 to specific action to improve the public service, and the link with the local level negotiations provision, are important steps toward acheiving these objectives.

Review of 1996

1996 was another very good year for the Irish economy. The main features were GNP growth was over 6 per cent; employment grew by 50,000; consumer spending increased by 6 per cent; inflation was 1.6 per cent; the GGD was 1 per cent; the current budget had a surplus of £292 million; and the fall of almost £300 million in the national debt in absolute terms, reflecting the relative strength of the Irish pound, was the first time it has been reduced in almost 40 years.

[937]Budget Targets for 1997

Taking account of departmental balances of £26 million and increased capital receipts of £20 million, the opening EBR for 1997 is £334 million. Having made provision for the measures contained in today's budget, my targets for 1997 are a current budget surplus of £193 million (0.5 per cent of GNP); an Exchequer borrowing requirement of £637 million (1.6 per cent of GNP); and a general Government deficit of 1.5 per cent of GDP.

As I pointed out earlier, this is the first time ever that a Minister for Finance has planned for a significant current budget surplus. And I am projecting a surplus, not just for one year, 1997, but for 1998 and 1999 as well.

1997 Budget Measures

This budget reaffirms and builds on the main principles of my first two budgets. As in 1995 and 1996, the measures in this budget will reward work, promote enterprise and strengthen social solidarity.

Work continues to be the key to our success as a people and as a society. It is one of the ways that we fulfil ourselves as individuals and it is the way that we create wealth as a community. We need to foster and promote enterprise throughout our society in both the public and private sectors. We need to encourage the growth of new companies, consolidate existing firms and ensure that family-run businesses can pass safely from one generation to another.

In rewarding work and creating wealth through enterprise, we generate the resources to strengthen our country, to provide the services which we all require and so ensure that every individual in our society becomes and remains a valued participant in our community.

REWARDING WORK

The first of those principles is rewarding work.

Income Tax

I propose to reduce the standard rate of income tax from 27 per cent to 26 per cent with effect from 6 April next.

The employee PRSI rate for class A and class II contributors is being reduced by 1 per cent.

Mr. D. Ahern: Is that all?

Mr. Quinn: This reduction in social insurance contributions will assist over 70 per cent of PRSI contributors, including those outside the income tax net.

In addition, the standard rate income tax band is being widened by £500 for single persons to £9,900 and by £1,000 for married couples to £19,800. The personal allowance is being increased by £250 to £2,900 per annum for single persons and by £500 to £5,800 per annum for married couples. An increase of £250 per annum will also apply to widowed, single parent and [938] widowed parent allowances. The general income tax exemption limits, below which no income tax is payable, are being increased by £100 to £4,000 per annum for single persons and by £200 to £8,000 per annum for those who are married. It is estimated that these changes will remove around 10,000 persons who would otherwise be in the tax net.

The withholding tax on professional services and the standard rate for deposit income retention tax will also be reduced from 27 per cent to 26 per cent.

The thresholds for the payment of the employment and training levy and the health contribution are being raised by £500 to £10,250 per annum, or from £188 to £197 per week.

Finally, the PRSI ceiling applicable to all employees and the self employed will be increased from £22,300 to £23,200 per annum.

The reduction in the employee PRSI contribution rate which I have announced today will add significantly to the improvement in takehome pay for most workers. However, I do not envisage a process of regular reductions in this regard as the Government remains committed to protecting the financial position of the social insurance fund in view of its central role in ensuring that agreed social insurance entitlements are provided into the future. In that context also, the Department of Social Welfare is commissioning an actuarial review of the projected long-term costs of social welfare pensions.

The effect of the substantial cuts in personal taxation and employee PRSI which I have announced will be to leave a family with two children and one spouse working who is earning £15,000 per annum and paying full PRSI and PAYE better off by £327 per annum or £6.30 per week. This is before the effect of the child benefit measures which I will announce later.

To assist the elderly, the special allowance for those aged 65 and over is being increased by £200 to £400 per annum for single or widowed taxpayers and by £400 to £800 per annum for married couples. This age allowance, which benefits some 65,000 taxpayers, was last increased in 1986. Some 30,000 other pensioners will also pay less tax as a result of the increase in the income tax exemption limits which I announced earlier.

In line with the commitment in Partnership 2000, the Government will be introducing a provision in the 1997 Finance Bill whereby the first six weeks of disability benefit in any tax year will be disregarded for tax purposes. However, for the 1997/98 tax year the exemption will be for three weeks while the administrative arrangements are being put in place, with the six week exemption applying from the 1998/99 tax year.

The special tax relief on unemployment benefit payments to systematic short-time workers introduced in the 1994 Finance Act is being extended for a further year. The exemption of the first £10 per week of unemployment benefit from tax, introduced in the 1995 Finance Act, will also continue at its current level.

[939] The cost of these income tax and PRSI measures is £232 million in 1997 or £393 million in a full year.

PROMOTING ENTERPRISE

I turn now to my second principle, namely that of promoting enterprise.

Corporation Tax

In my last two budgets I have made significant changes to corporation tax, both by lowering the standard rate to 38 per cent and by introducing a new rate of 30 per cent on the first £50,000 of taxable income. There is a clear longer-term strategic need to reduce the standard rate of corporation tax over time to bring it closer to the 10 per cent rate which applies to manufacturing industry generally. Accordingly, I propose to reduce the 38 per cent rate of corporation tax to 36 per cent and to reduce the 30 per cent rate to 28 per cent. The taxable income band to which the 28 per cent rate applies will remain at £50,000.

It is estimated that there were nearly 20,000 companies with taxable profits of £50,000 or less, paying tax at the standard rate in 1994. As a result of this year's budget, and the reductions in my previous two budgets, such companies will now be paying tax at 28 per cent, as compared with 40 per cent in 1994. This is a real reduction of nearly one third in the tax rate for the small and medium sized Irish companies concerned. I recognise the important role that they have to play in our growing economy and I am also aware that this is where most of the new jobs have been created within our society.

The Government is studying the appropriate corporation tax structure for the longer-term, bearing in mind the central importance of the 10 per cent rate for inward investment, including the IFSC. I am conscious of the need to clarify this issue at an early date and I would hope to be in a position to make an announcement before too long.

Employer PRSI

In the case of employer PRSI, the threshold below which the 8.5 per cent rate applies is being increased from £13,000 to £13,500 per annum or from £250 to £260 per week. The overall ceiling on employer PRSI will rise from £26,800 to £27,900 per annum.

Mariners' PRSI

In order to foster seafaring employment and to develop a pool of maritime expertise in Ireland, the Government will bring forward in the Social Welfare Bill a special concessionary regime involving substantial reductions in the rate of employer PRSI applicable to certain seafarers. An ongoing review of the income tax regime for seafarers is taking place but this review is not yet completed.

New and Expanding Businesses

As a further measure to assist small business [940] formation, I will be introducing a provision in the Finance Bill to enable firms to claim certain pretrading expenses in setting up business. Assistance to firms in such start up situations can be crucial to their survival. So too is access to capital when firms have reached a certain stage of development. The Government welcomes, therefore, the proposed establishment by the Irish Stock Exchange of the Developing Companies Market, or DCM. To help promote its establishment, a number of tax measures will be introduced in the Finance Bill including the extension of BES relief to qualifying firms who obtain a listing on the DCM. I also propose to increase the investment limit for 10 per cent special portfolio investment accounts by £10,000 which will be targeted specifically at investment in DCM shares for the first three years of its existence. Full details are set out in the Principal Features.

These concessions are made in the expectation that the Stock Exchange and its members will set out, and seek to achieve, specific targets for the number and type of firms to be brought to the DCM and will restrict listing fees in the generality of cases to reasonable levels.

Rented Residential Accommodation

I have been reviewing the tax rules applying to the providers of rented residential accommodation in order to improve the supply and quality of such accommodation. As part of this review process, which is not yet fully completed, I have decided to make improvements in the tax rules applying to this sector. In particular I will be making legislative provision to apply the standard capital allowances in respect of wear and tear on fixtures and fittings to this area. Full details are contained in the Principal Features.

Capital Gains Tax

In line with the reduction in the standared rate of income tax to 26 per cent, it has also been decided to reduce the 27 per cent rate of capital gains tax which applies to certain shareholdings in small and medium-sized companies to 26 per cent with effect from 6 April 1997. This reduction will also apply to the taxation of life assurance and unit linked investments.

Capital Acquisitions Tax

In the last two years I increased the business relief under capital acquisitions tax from a minimum rate of 25 per cent on certain transfers to a flat 75 per cent for property retained in the business for at least ten years after transfer. I have decided to increase this 75 per cent rate to 90 per cent in order to reduce the tax impact on the transfer of a family business. This new rate will also apply to the transfer of agricultural property. The effect of this measure will be to strengthen further small and medium sized companies and ensure their sucessful development from one generation to another. Early profit taking and other forms of redistribution will continue to be taxed in the normal way. The new rate therefore [941] will be subject to the existing clawback arrangements to ensure that the ten year requirement applies to the full 90 per cent.

Car Value Threshold

I propose to increase from £14,000 to£15,000 the car-value threshold used for calculating capital allowances in respect of new cars and allowable expenses for all cars which are used for business purposes.

Farmer Taxation

The level of the farmers' flat rate addition, which compensates unregistered farmers for the VAT borne on their inputs, is being increased from 2.8 per cent to 3.3 per cent with effect from 1 March 1997. This is based on the latest information on the level of VAT paid by unregistered farmers. There will be a similar increase in the associated VAT rate for livestock which will also increase to 3.3 per cent from the same date. The cost of this measure in 1997 is £9.3 million and £14.1 million in a full year.

It is also proposed to introduce for a three year period an improved capital allowance for farm pollution control, and to continue for a further period the existing farming stock reliefs and the special stamp duty relief for transfers of assets to young trained farmers. The details of these reliefs are contained in the Principal Features. The cost of these measures is estimated at £6.2 million in 1997 and £8.5 million in a full year.

The cost of all the business measures I have announced today is £27 million in 1997 and £100 million in a full year.

The total impact of the tax changes I have introduced today will be very substantial. The value obviously will vary for different categories of individuals, depending on their circumstances. Taken together, this is the biggest tax reduction package in the history of the State. It will benefit the majority of the 1,300,000 people currently at work and it has an annual full year value of over £490 million.

Mr. S. Brennan: An expensive election.

STRENGTHENING SOCIAL SOLIDARITY

Mr. Quinn: I turn now to the third principle, namely that of strengthening social solidarity.

Social Welfare and Social Inclusion

One of the major challenges identified in the new programme, Partnership 2000, is the reduction of social inequalities and exclusion, especially by cutting long-term unemployment. To meet this challenge, the Government agreed to commit additional expenditure of up to £525 million over the next three years on an action programme for social inclusion and equality.

The measures I am announcing today will not only reflect this committment in regard to social inclusion but will also improve the position of all [942] social welfare beneficiaries and other categories and enhance the work-friendly features of the social welfare system.

Weekly Welfare Payments

I am providing for increases of £3 a week in all personal social welfare payments and of £1.50 a week in adult dependant allowances from midJune next.

Mr. D. Ahern: They are very low.

Mr. Quinn: These increases are about 4 per cent or twice the rate of inflation and reflect substantial progress towards meeting the commitment in Partnership 2000 to implement, before the end of the Partnership, the minimum rates recommended by the Commission on Social Welfare. By next June, almost all rates will be at 98 per cent of the Commission on Social Welfare target rate or above it.

Child Benefit

I am continuing the policy pursued in recent years of increasing child benefit rates significantly. In this budget, I am providing for an increase of £1 per month for first and second children, and increase of £5 for third and subsequent children with effect from next September. The new rates will be £30 per month for each of the first two children and £39 for the third and other children.

A mother with three children will therefore get £99 a month or £23 per week while a mother with four children will get £138 a month or £32 per week tax free for her children compared with £90 per month or just under £21 per week three years ago. This amounts to a 50 per cent increase which is of direct and real value to mothers and children throughout this country, particularly large families.

Mr. D. Ahern: They will not be holding their breath.

Family Income Supplement

Mr. Quinn: Family income supplement, which is a support paid to families in low paid employment, has been identified in Partnership 2000 as a priority measure to enhance the reward from work by increasing the net return to families with children. Partnership 2000 contains a commitment to adjust the way it is calculated from a gross income to a net income basis during the lifetime of the Partnership. As a first step towards fulfilling this commitment, I am proposing that, from June this year, family income supplement will be calculated on a basis net a PRSI contributions and the health and unemployment levies. In addition, I propose to increase the current income thresholds by £10 per week. These changes will increase the payments to those currently in receipt of family income supplement by [943] a minimum of £6 per week for most people and will increase the take up of this scheme.

Back to Work Allowance Scheme

As stated in Partnership 2000, the most effective strategy for achieving greater social inclusion is one which focuses on increasing employment. As part of the measures in this budget to fulfil the commitments to combat unemployment under this programme, the Government has decided to increase the numbers on the back to work allowance scheme. This scheme allows the long-term unemployed to taken up employment or self-employment while retaining a substantial portion of their social welfare payments and associated secondary benefits for up to three years. Because of the success of this scheme, the Government has decided to provide for an increase in the number of participants from 17,000 to 22,000 in 1997. Of this increase, 1,000 places will be allocated to people on disability allowance thereby facilitating their integration into mainstream employment.

Adult Dependant Allowance

I now turn to a measure designed to alleviate a particularly severe poverty and unemployment trap. At present, if the dependent spouse of someone in receipt of a social welfare payment earns more than £60 per week, no adult dependant allowance is payable. Many such spouses are deterred from seeking employment of a substantial nature or from working additional hours because this would result in a substantial fall in net family income.

To address the severity of this trap, the Government has decided to introduce a tapering arrangement in regard to the retention of the adult dependant allowance element under certain schemes with effect from next October. The adult dependant allowance will be retained on a phased basis as the spouse's weekly income increases from £60 to £90.

Miscellaneous Improvements

In addition to the measures I have just announced, I am providing for other improvements in the social welfare system which are targeted at particular groups. The main changes are as follows: in relation to the carer's allowance, an additional 50 per cent is being paid to persons caring for more than one incapacitated person, while the full-time care requirement is being relaxed to allow attendance at rehabilitation, training and day-care centers on a limited basis; £2 million is being provided for renewing the scheme of grants aimed at improving the security of elderly people; an additional £2 million is being given in grants for community and voluntary service, including increased resources for the National Social Service Board and the Combat Poverty Agency; those in residential care on a part-time basis will be entitled to half-rate disability allowance; in relation to maternity benefit and adoptive benefit, the minimum rate is being increased to £82.30 and both these benefits are being extended to the self-employed; in relation [944] to treatment benefit, the income limit is being abolished and dependent spouses who take up employment are being allowed to retain entitlement until qualified in their own right; in completing the process of equal treatment for social welfare recipients, a widower's non-contributory pension is being introduced and equal treatment in occupational injuries benefit for widowers is being applied; more generous capital assessment provisions in regard to some non-contributory schemes, including old age pension, are being applied; the minimum yearly average social insurance contributions needed to qualify for a pro-rata old age pension is being reduced from 20 to ten provided that the claimant has 260 paid contributions; the qualifying conditions for free electricity and free telephone rental allowance are being streamlined; the rules for payment of arrears on foot of late claims are being eased; and — I know this is making Deputies sick but please listen to it — in order to improve the arrangements applying to casual workers, social insurance contributions paid after six months of unemployment onwards will be reckonable for requalification for unemployment benefit.

Health

An additional £25 million for health services development is being provided in this budget.

Mr. D. Ahern: For the nurses.

Mr. Quinn: This includes £10 million, in addition to the extra £2 million already provided in the published Estimates, towards enhancing further our services to people with mental handicap. A sum of £6 million will be allocated towards the implementation of the Minister for Health's recently announced cancer treatment strategy.

An additional £5 million will be provided to develop further our child care services. The hospital waiting list initiative will be continued this year, for which a further £4 million will be allocated, bringing the total in 1997 to £8 million.

Mrs. Geoghegan-Quinn: What about the nurses?

People with Disabilities

Mr. Quinn: For too many years, Irish people with disabilities, and their families, were either ignored or forgotten. The report of the Commission on the Status of People with Disabilities, which was requested by the Minister for Equality and Law Reform, at last opens the door to the way forward.

To help the important work in this area, I am allocating an additional £500,000.

Total Cost of Social Welfare and Health Package

The total cost of the social welfare and health package which I have announced is £139 million this year and £245 million in a full year. Nearly £600 million has been provided in full year terms [945] in the last three budgets for social welfare improvements.

Sport

The role of sport in the health and life of the nation has always been important. Many outstanding sportswomen and sportsmen have inspired us all with their achievements. It is important that we make the best use of the existing facilities throughout the country to enable all our people to have access to the sports arenas and resources which they need.

The report of the sports strategy group, established by this Government, is due to be completed shortly. I am allocating an additional sum in 1997 of £1.6 million to enable their recommendations to begin to be implemented over the next three years.

Modernising Access to our Laws

The Irish Statute Book, comprising all the laws enacted by the Oireachtas over the past 75 years, now runs to more than 35,000 pages and occupies about 4.5 metres of shelf space. The conversion of the whole Statute Book to an electronic format would allow all the laws of the State to be stored on a single standard size CD-ROM disk, portable and instantly searchable by modern electronic search techniques. Extensive work has been done on a project to achieve this and it is now ready to go for tender and implementation.

The project represents a recognition by the State of its obligations to make the laws, including the statutory instruments, as accessible as possible——

Mr. M. McDowell: To all those with computers.

Mr. Quinn: ——not just to the legal profession, but to the public as well. The project also is a good investment by the State, where one of the primary requirements of incoming investors is ready access to all legislation in electronic format. I am allocating a sum of £750,000 this year to enable the first phase of this project to commence——

Mr. Sheehan: Well done.

Mr. M. McDowell: That will be huge in west Cork.

The James Joyce Centre

Mr. Quinn: This year is the 75th anniversary of the publication in Paris of Ulysses. This famous literary work celebrates the diversity of Dublin during the course of one day, Bloomsday, 16 June 1904. Being familiar with James Joyce's definitive work, Deputies may know that a central character Leopold Bloom was also involved in constructing a budget. His careful budget for Bloomsday included the following: lunch — 7 pence, a copy [946] of the Freeman's Journal 1 penny — bad value even then, a postal order and stamp — 2 shillings and eight pence, banbury cakes 1 penny, bath and gratification 1 shilling and 6 pence.

Mr. D. Ahern: What is gratification?

Mr. Quinn: The Deputy will have to work that out. The total for the entire day's expenditure came to the enormous sum of 2 pounds, 19 shillings and 3 pence.

In recognition of Joyce's tremendous contribution to the world of literature and to mark this anniversary, I am allocating £100,000 to the James Joyce Centre in Dublin to secure the future of this literary heritage centre for generations to come.

Mr. Cowen: What constituency is that in?

Mr. Quinn: It is in Deputy Bertie Ahern's constituency.

Local Authority Expenditure

Last month, the Minister for the Environment announced a radical reform of our local government system. His proposals, which I strongly supported, include a new system for financing local government. The new funding system involves the abolition of local authority charges to domestic consumers for water and sewerage facilities. In fairness to those who paid their charges, the local authorities will continue to collect outstanding service charge arrears. I will make no change in the tax relief for service charges this year.

The proposals also involve the assignment of motor tax revenue to local authorities, partly offset by the abolition of the rate support grant. In 1997, there will be transitional arrangements, with part of the motor tax revenue being transferred and a reduction of £98 million in the allocation for the rate support grant in the abridged estimates volume, a provision which was calculated on the basis of the previous funding arrangements.

Mr. D. Ahern: The Minister does not have to tell us.

Mr. Quinn: This is a technical change.

Mr. D. Ahern: That is what they all say.

Mr. Quinn: It does not affect local authority spending. Local authorities will receive in 1997 at least the same amount through motor vehicle duties and the reduced rate support grant as they would have got with the original grant. The cost to the Exchequer in 1997 will be £60.5 million.

Mr. M. McDowell: A reduction in real terms.

Mr. Quinn: Details of the effects on the position [947] of local authorities and the Exchequer are given in the Principal Features.

Total Cost of Current and Capital Expenditure Measures

The abridged Estimates volume provided for gross current supply spending of £12,874 million this year. The gross cost in 1997 of the current expenditure increases I have announced is a little under £200 million. Taking account of these and other changes, in particular the change in the arrangements for funding local authorities, the revised 1997 spending is £12,950 million. I announced a post-budget target for gross current supply services of £13,014 million when publishing the abridged Estimates volume last month. The principal changes to this figure are an additional £24 million pay costs and the reduction of £98 million in the rate support grant which I referred to earlier.

The capital measures have a gross cost of about £12.8 million, which is mainly offset by savings. The net impact of the capital adjustments, which are also summarised in the Principal Features, is that 1997 spending is now £2.4 million above the target of £1,574 million which I announced last month.

I turn now to revenue raising measures.

Tax Changes: Excises

With effect from midnight tonight, I propose to increase petrol and diesel excises by a VAT-inclusive 1.5p per litre for diesel and unleaded petrol, 2p per litre for super-unleaded and 2.5p per litre for leaded petrol.

Mr. D. Ahern: The Border counties will be affected again.

Mr. Quinn: I also propose to increase tobacco excises by 7 pence per 20 cigarettes, including VAT, and pro rata for other tobacco products, also from midnight tonight. This will raise £52 million in 1997 and £57 million in a full year and add an estimated 0.2 per cent to the CPI in 1997, bringing the post-budget CPI forecast to 2.2 per cent.

Environmental Tax Policy

Last year I announced that my Department, in conjunction with other relevant Departments and agencies, would establish a special group to examine the strategic impact of taxation on environmental policy for the 1997 budget. I have already announced one measure in the farming area for pollution control, while the proposed excise duty increases on petrol and diesel take account of environmental considerations. The extension of the £1,000 VRT refund scheme for scrapping ten year old cars to 31 December 1997, to which effect was given last month, also has clear environmental advantages.

[948]Mrs. Geoghegan-Quinn: They are back on the road.

Mr. Quinn: No, they are not. The issue of environmental tax policy is one of growing relevance and importance world-wide. The EU Commission will bring forward proposals to apply a framework for an energy tax regime across the Union. For that reason I will ask the group to continue its work with a view to a complete examination of possible initiatives which might be taken up in subsequent budgets.

Residential Property Tax and Stamp Duty

Last month the Government announced the abolition of residential property tax from 5 April 1997. This will have a full year cost of £16 million.

Mr. Dempsey: So much for the socialists.

Mr. Quinn: As with arrears of local authority service charges, the Revenue Commissioners will continue to collect outstanding residential property tax. At the same time it was announced that, in order to recoup this loss in revenue, the existing 6 per cent stamp duty on transfers of certain residential property valued in excess of £150,000 would be increased to 9 per cent with effect from midnight tonight, subject to certain transitional provisions.

Mr. Callely: It is still anti-Dublin.

Mr. Quinn: The Financial Resolution, which will be moved later, sets out the full details of the application of the new 9 per cent rate of stamp duty and the definition of residential property for the purposes of this new rate. The Financial Resolution provides for a number of intermediate rates to increase the duty from 6 per cent to 9 per cent. These are 7 per cent for relevant property valued between £150,000 and £160,000 and 8 per cent for property valued between £160,000 and £170,000, with the 9 per cent rate applying thereafter. This stamp duty increase will raise £13.5 million in a full year.

Dublin Docklands

Last year I announced the establishment of a task force which would lead to a master plan for the regeneration of the Dublin Docklands. I am pleased to say that great progress has been made in achieving what I set out to do. The legislation to establish the new Docklands Authority has passed Second Stage and should be enacted by March. The preparation of the master plan by the multi-disciplinary team of consultants is on target and will be completed by 31 March. I intend to facilitate the implementation of the master plan with a range of selective tax reliefs based upon the recommendations which will be set out in the report of the consultants. This project will transform the heart of Dublin over the next 15 years, [949] providing new jobs, homes and amenities for the next generation of Dubliners.

IFSC

The International Financial Services Centre will be ten years old this year. The centre has been a remarkable success by any standards, and I will be including certain measures in this year's Finance Bill to help ensure that it continues to expand and provide more jobs for our young school leavers and graduates well into the next century. The Custom House Docks Development Authority which has provided the infrastructure for the centre will be subsumed into the new Docklands Authority when it is established.

Valuation Office and Ordnance Survey

The Valuation Office is a great national resource, providing specialised expertise vital to public administration which has largely gone unrecognised. This office has endured, for far too long, a completely outdated archaic system dating back 150 years. Work has been completed on the heads of the Valuation Bill which will totally modernise this valuable agency's operations. I hope, with Government approval, to publish the Bill later this year.

I am giving serious consideration to the establishment of an interim board to oversee the transition of the Ordnance Survey to independent status. A new form of organisation could well strengthen the commercial focus of the survey.

Multi-Annual Budget Projections and Strategy

In last year's budget I announced my intention of moving to a multi-annual budget presentation this year. This new presentation of the budget allows the Government to examine policy changes on spending and taxation in a more systematic way in the light of their future impact. As part of this process, I am publishing today for the first——

Mr. E. O'Keeffe: And last.

Mr. Quinn: ——time projections for the main economic and budgetary aggregates for 1998 and 1999 as well as for 1997. These projections are given in Economic Background to the Budget and further details of the budgetary projections are set out in the Principal Features. They take account of the full year cost of the 1997 budgetary measures announced today. They also include the cost in 1998 and 1999 of maintaining the existing level of services and take account of the pay, tax and social inclusion commitments envisaged in Partnership 2000, including in particular tax reductions of £1 billion on a full-year cost basis representing real reductions, on average, of over 0.5 per cent of GDP per year and an action programme for social inclusion and equality involving expenditure of £525 million.

A major start has been made in the budget in [950] implementing these Partnership 2000 commitments. In preparing the multi-annual projections for 1998 and 1999, it has of course been necessary to make some working assumptions as to how the balance of these tax and social inclusion measures could be spread over the subsequent two years. The multi-annual projections are based on a forecast that GNP growth will be approximately 5.5 per cent in 1997 and average 4.5 per cent in 1998 and 1999. It is also projected that employment growth will average approximately 38,000 per year over the three years 1997-99. Inflation is expected to be moderate at just over 2 per cent per year over the period. Based on these assumptions, the underlying general Government deficit is projected at 1.2 per cent of GDP in 1998 and 0.9 per cent of GDP in 1999.

However, recent experience shows that we should budget for the unexpected. It is prudent, when making plans over several years, to provide a reserve against factors outside the control of the Government that may impact on the budget but which cannot be foreseen at this stage. Examples are variability in tax buoyancy and exceptional costs across all areas of public expenditure. While such variations are likely to be both positive and negative, it is appropriate to allow in the projections for a modest negative net impact on the EBR and GGD. I have, therefore, made a net provision against all budgetary contingencies of £175 million in 1998 and £325 million in 1999. This would increase the projected general Government deficit to 1.5 per cent of GDP in both 1998 and 1999.

In farming the medium-term target set out in Partnership 2000 of keeping the GGD in 1999 to no more than 1.5 per cent of GDP, the Government was mindful not only of the need to keep the debt-GDP ratio on a progressive downward path, thereby increasing overall budgetary flexibility, but also of two important factors bearing on the future budgetary position:

(1) Economic and monetary union, European Monetary Union, which will provide for the single currency, to be known as the euro, will commence on 1 January 1999. Ireland intends to continue to meet the conditions of entry into European Monetary Union. We are obliged under the Maastricht Treaty to avoid an “excessive deficit”. This was further reinforced with the adoption of the Stability and Growth Pact at the Dublin European Council. This means that we must make provision in our future budgetary planning to maintain sufficient headroom to deal with the impact of economic shocks without exceeding the 3 per cent ceiling on the deficit.

(2) There is uncertainty regarding the level of EU Structural and Cohesion Funding after the current Financial Perspective expires in 1999. The Government will, in the forthcoming [951] negotiations, argue that Ireland needs continuing substantial support. We will point to our recent economic progress as evidence of our effective use of EU funds. However, it is only prudent to recognise that there is no assurance that EU funding will continue indefinitely at present rates.

Because of factors such as these, the Government has adopted a strategy that will keep our general Government deficit at no more than half of the 3 per cent Maastricht ceiling by 1999.

Public Expenditure Reviews

Constraining the growth of public expenditure will be central to achieving the Government's medium-term budgetary goals. To date, we have not been as effective in this area as we would wish. It is essential that we improve our performance. One step in that connection will be the wide-ranging programme of financial management reforms set out in Delivering Better Government. The objective of these reforms is to underline the primary responsibility of spending Departments for managing their expenditure programmes within settled allocations and to take accountability for the results achieved. A key element of the new system will be agreements between the Department of Finance and spending Departments on a rolling programme of expenditure reviews under which the objectives and the rationale for the continuation of all major departmental spending programmes will be subjected to systematic evaluation over a period of three years or so. This process will begin this year.

It is also my intention to reflect on how the relationship between my Department and the spending Departments should develop in the context of a devolved, medium-term approach to expenditure management, the main aim being to improve the effectiveness of overall control over Government spending.

Pre-Budget Submissions

Last year I announced a change in the forum for presentation of pre-budget submissions from various organisations and representative bodies. The new forum for the presentation and hearing of these submissions was the Select Committee on Finance and General Affairs under the chairmanship of Deputy Jim Mitchell. This new arrangement worked well in its first year and 107 submissions were received. Twenty-one groups appeared before the committee and a comprehensive report was submitted by the committee which helped to shape and form this budget. In the process, the various organisations which presented themselves to the committee had an opportunity to advance their case. In turn, the members of the committee could probe and evaluate the various proposals and clarify why a [952] particular group should benefit from a specific tax or budgetary consideration.

The entire process has improved the democratic accountability of the budget preparation system. I am indebted to the work of the various groups and the members of the committee. I propose, therefore, that the same process should operate this year in time for the next budget.

Timing of the 1998 Budget

This brings me to the date of the 1998 budget, which I also intend to introduce.

Mr. Ring: We will be with the Minister.

Mr. D. Ahern: Wishful thinking.

Mr. Quinn: Yes, they will. Last year I announced that, in future, the budget formulation would be brought forward by about two months. In effect, the budget for 1998 will be prepared and presented to the Dáil well before the end of November this year. This in turn will advance the timing of the annual Estimates campaign. This will improve the efficiency of our budgetary practices. It will also enable subsidiary organisations to be informed of their exact budgetary allocation before the commencement of the calendar year. As Deputies who are also councillors and members of local authorities know, at present it can be up to three months into the year before such organisations know the total amount of their allocations for the year. This is unsatisfactory as it does not enable proper budgetary planning. That is why it is now being changed.

Progress Made 1995-97

I have now completed my third budget.

Mr. E. O'Keeffe: The next programme will be the manifesto.

Mr. Connor: One manifesto is enough.

Mr. Quinn: It is useful to stand back and look at what progress has been made taking these three budgets into consideration. Sometimes it can be difficult for individual citizens and Deputies to appreciate fully the changes that have taken place, so I will give some illustrative examples. The Deputies opposite may not like to hear these but I am afraid they will have to.

Mr. Mulvihill: Listen to this, Ned.

Mr. Quinn: First, I will take the case of a two parent family with three children where one spouse is earning approximately the average industrial wage. Taking account of the pay increases in the last two years and those for 1997 envisaged in Partnership 2000 together with the income tax, PRSI and child benefit changes in my three budgets, such a family will be better off in [953] terms of take home pay by about £32.50 per week, an increase of approximately 15 per cent or 8 per cent in real terms.

Mr. D. Ahern: What about mortgage interest relief?

(Interruptions.)

Mr. M. McDowell: An industrial wages budget.

Mr. D. Ahern: They are entitled to a car.

Mr. E. O'Keeffe: They will have to get bicycles.

Mr. Quinn: Second, I will take the case of a two parent family with two children both over 18 and in full-time third level education, again with one spouse earning, say twice the average industrial wage.

Mr. Dempsey: What about mortgage interest relief?

Mr. Quinn: Their annual disposable income will have risen by about £2,350 as a result of pay increases and the tax and PRSI changes in my three budgets, even after taking account of the standard rating of certain discretionary reliefs such as their mortgage. This represents an increase of 13.5 per cent or over 6.5 per cent in real terms. They will also gain, say, a further £3,000 per year as a result of the abolition of undergraduate third level education fees.

Mr. D. Ahern: They do not think so.

Mr. Quinn: Go out and ask them. Third, an elderly person will be £7 a week better off from the increases of almost 10 per cent in the old age contributory pension in my three budgets.

A Deputy: Well done.

Mr. S. Brennan: Seven pounds over three years.

Mr. D. Ahern: One would not want to be on social welfare with this Government in power.

Mr. Quinn: In addition, approximately 25,000 car owners have benefited so far to the tune of £1,000 each from the scrappage scheme for cars at least ten years old which I introduced in my first budget and recently renewed for a further year to 31 December next. The take-up under this scheme has been more than 1,000 per month.

Mr. Sheehan: All the bangers have disappeared from the roads.

(Interruptions.)

Mr. Quinn: Inevitably these examples, of which I could give many more, are a snapshot, as all [954] such examples must be. However, there is no doubt that as a result of our three budgets the standard of living of many people has been dramatically improved.

Mr. E. O'Keeffe: There has been an abuse of Structural Funds.

Mr. Quinn: However, not everyone has benefited in the same way. There are still too many unemployed people, while others are excluded from the gains which this society has made in the past few years. We cannot move forward as a nation unless and until all of our people move together. That is why the Government is committing so much of our resources to promoting social solidarity.

Conclusion

The world is changing rapidly and we, including Deputy O'Keeffe, must adapt to that change. We are very much a part of the change within Europe, as our successful Presidency of the European Union demonstrated. We must both move with it and shape it in the coming years.

The Partnership 2000 programme will accommodate change and growth and will take us to the start of the next century. However, we need to look further ahead in order to manage the present and secure our future. Our success in recent years gives us the experience and the courage to embrace the future with confidence.

In my first budget two years ago, I set out five goals to which this country could aspire and plan to achieve by the year 2010. They were the following: Ireland could have the average per capita income of the European Union, provide full employment for those seeking work, have the best managed and best preserved environment in the European Union, possess the most effective public administration in the European Union and be perceived outside of Europe as the best place in which to invest and do business within Europe.

Mr. E. O'Keeffe: This could be achieved by a Fianna Fáil Government.

Mr. Quinn: Since 1994 we have made good progress towards all those goals. First, the nation is becoming richer. Real wealth is being created by our continuous economic growth which has been four times higher than the European average. If we achieve the progress I have set out in the budget over the next three years, by the end of the new programme, Partnership 2000, we will be very close to the European Union average per capita income. Second, employment has increased by 100,000 but there are still too many people unemployed. However — this includes the periods when Fianna Fáil was in Government — for the first time in our modern history we are seeing a sustained net increase in jobs, net emigration has stopped, and some people are coming home.

We have more to do, but we are doing it better now than ever before. Third, our environment [955] continues to present a real challenge as we grow and prosper, but policies are being put in place which will protect and enhance it through to the next century. Fourth, the Strategic Management Initiative provides the basis for the transformation of our public administration system. It may take time to do it, but I am determined to push ahead on this front. Finally, this year the IDA found that Ireland was the number one location for US investment seeking to locate in Europe.

Mr. D. Ahern: In Dublin.

Mr. M. McDowell: Where are the jobs?

Mr. Quinn: We have benefited from 30 per cent of all US investment.

Mr. D. Ahern: Areas outside Dublin have been forgotten.

An Ceann Comhairle: Deputy Ahern must restrain himself.

Mr. Penrose: Or there will be no marriage with the Progressive Democrats.

Mr. Cowen: The Westmeath bachelor.

Mr. Penrose: I would not go into a marriage with them.

(Interruptions.)

Mr. Quinn: The challenges we will face may be [956] greater than those we have overcome, but today we are much better placed to meet them.

The budget lays the foundation for continuing, strong, non-inflationary growth until the beginning of the next century. It demonstrates clearly our commitment to social solidarity and the elimination of inequality and poverty. It makes a clear statement of our economic and fiscal goals for the next three years. As a result, it will enable us to qualify to participate in European Monetary Union from the beginning. The tax changes it contains will encourage personal and corporate initiative and strengthen our economy and society.

The celebration of success should not be confused with the contentment of complacency. We have much more to do and we will go on together to complete our task.

Mr. E. O'Keeffe: What about the nurses?

Mr. Quinn: Seventy five years ago this nation established a new fledgling State, leaving the strength and wealth of a powerful country to pursue a destiny and a vision of its own. We are today the inheritors of that vision.

Mr. S. Brennan: This is an election budget.

Mr. E. O'Keeffe: Is there any compensation for nurses?

Mr. Quinn: The budget, when implemented in full, will bring us closer to achieving that vision and I commend it to the House.

Mr. Sheehan: It is a pity the Progressive Democrats did not have that vision five years ago.

[957][958] TABLE EXPLANATORY OF CURRENT BUDGET, 1997

Revenue			£m	Expenditure			£m
		£m
1. Tax Revenue		13,485.0		1. Central Fund Services			3,260.4
Adjust for:						£m
Local Authority financing (allocation of MVD)				2. Non-Capital Supply Services		10,075.0
— see Table H		-168.0		Adjust for:
			13,317.0	Local Authority financing (see Table H)		-98.0
2. Non-Tax Revenue			320.8	Other net revisions to Estimates (including PRSI buoyancy, etc)		-21.3
							9,955.7
3. Deduct:
Income Tax reliefs:	£m			Add:
—changes in exemption limits, personal allowances, standard tax rate and standard bands	-168.7			3. Social Welfare improvements, including Health element			113.2
—other Income Tax concessions	-13.2			4. Contribution Initiatives [impact on Supply spending]:
		-181.9
VAT measures		-9.3		PRSI concessions:
Corporation Tax measures		-1.6		—Employee contributions	47.7
Capital Tax measures		-14.9		—Employer contributions	9.6
Threshold for Employment & Training Levy		-2.0				57.3
			-209.7	Health Contribution		2.5
							59.8
4. Add:
Stamp Duty Measures		6.5		5. Health Service development			25.0
Excise Duty measures		51.5
			58.0	6. Miscellaneous			2.9
5. Net effect on tax revenue of tax and spending changes		98.0		7. Estimated Departmental Balances			(26.0)
				8. Current Budget Surplus			193.1
			13,584.1				13,584.1

[959][960] TABLE 1

1996 BUDGET OUTTURN

	1996
	Budget Estimate	Provisional Outturn
	£m.	£m.
Current Budget
1. Expenditure
(i) Central Fund Services	3,054	3,161
(ii) Supply Services	9,462	9,501
	12,516	12,662
2. Revenue
(i) Tax	12,068	12,520
(ii) Non-Tax	366	434
	12,434	12,954
3. Current Budget Deficit/(Surplus) (as % of GNP)	820.2%	(292)(0.8%)
Capital Budget
4. Expenditure
(i) Exchequer Capital Programme	1,392	1,458
(ii) Other (non-programme)	109	78
	1,501	1,536
5. Exchequer Capital Resources	854	807
6. Exchequer Borrowing Requirement for Capital Purposes	647	729
7. Total Exchequer Borrowing Requirement (3+6)	729	437
8. Total Exchequer Borrowing Requirement as % of GNP	2.0%	1.2%
9. General Government Deficit as % of GDP	2.6%	1.0%

[961][962] TABLE 2

CURRENT GOVERNMENT EXPENDITURE AND REVENUE IN 1996

Current Expenditure			Current Revenue
Item	£m	% of gross expenditure	Item	£m	% of total
Service of Public Debt			Current Budget Surplus	(292)
Central Fund Services (part):
Interest	2,099	13.7
Sinking Funds, etc.	261	1.7
Total	2,360	15.4
			Tax Revenue
Economic Services			Customs	159	1.2
Industry and Labour	527	3.4	Excise Duties	2,320	17.9
Agriculture	623	4.1	Capital Taxes	178	1.4
Fisheries, Forestry	43	0.3	Stamp Duties	336	2.6
Tourism	35	0.2	Income Tax	4,562	35.2
			Corporation Tax	1,426	11.0
			Value-Added Tax	3,105	24.0
Total	1,228	8.0	Agricultural Levies	11	0.1
			Motor Vehicle Duties	258	2.0
			Employment and Training Levy	164	1.3
Infrastructure	84	0.5	Income Levy	1	—
			Total	12,520	96.6
Social Services
Health	2,332	15.2
Education	2,085	13.6	Non-Tax Revenue
Social Welfare	4,385	28.6	Court etc. fees	38	0.3
Housing	8	0.1	Interest and Dividends to
Subsidies	166	1.1	Exchequer	61	0.5
Total	8,976	58.5	Central Bank — Surplus Income	176	1.4
			Proceeds of National Lottery Surplus	89	0.7
Security	1,103	7.2	Miscellaneous	70	0.5
Other	1,587	10.3	Total	434	3.4
Gross Expenditure	15,338	100.0	Total Current Revenue	12,954	100.0
Supply Service Receipts	2,676
Net Expenditure	12,662		Total Revenue less Current Surplus	12,662

[963][964] TABLE 3

CURRENT GOVERNMENT EXPENDITURE 1993-1997

	1993(1)	1994(1)	1995(1)	1996 Provisional Outturn	1997(2) Estimate	% change 1997 over 1996
	£m	£m	£m	£m	£m	%
Service of Public Debt
Central Fund (part):
Interest	2,159	2,004	2,156	2,099	2,275	8
Sinking Fund etc.	231	223	249	261	285	9
Sub-Total	2,390	2,227	2,405	2,360	2,560	8
Economic Services
Industry and Labour	320	389	493	527	568	8
Agriculture	576	523	522	623	644	3
Fisheries and Forestry	38	42	42	43	46	7
Tourism	28	35	36	35	35	—
Sub-Total	962	989	1,093	1,228	1,293	5
Infrastructure(3)	54	80	81	84	87	4
Social Services
Health	1,907	2,121	2,254	2,332	2,445	5
Education	1,727	1,876	1,962	2,085	2,201	6
Social Welfare	3,743	3,879	4,261	4,385	4,500	3
Housing	4	4	6	8	9	12
Subsidies	170	169	167	166	174	5
Sub-Total	7,551	8,049	8,650	8,976	9,329	4
Security
Defence	403	427	427	454	479	6
Garda	391	411	418	451	454	—
Prisons	91	99	102	107	108	1
Legal, etc.	65	76	82	91	103	13
Sub-Total	950	1,013	1,029	1,103	1,144	4
Other
Central Fund (part):
EEC Budget	453	507	547	589	582	-1
Miscellaneous(4)	26	87	31	212	118	-44
Supply Services	631	761	789	786	1,045	32
Sub-Total	1,110	1,355	1,367	1,587	1,745
Gross Total	13,017	13,713	14,625	15,338	16,158	5
Less: Supply Services Appropriations in aid, P.R.S.I. receipts(3)	2,494	2,540	2,516	2,676	2,823	6
Net Current Expenditure	10,523	11,157	12,109	12,662	13,335	5
Exchequer Pay and Pensions included in above(2)(3)	4,087	4,356	4,560	4,792	5,122	7

Notes:

(1) The figures for 1993, 1994 and 1995 reflect actual audited expenditure.

(2) The 1997 Estimate corresponds to figures published in the White Paper on Receipts and Expenditure 1997.

(3) To allow for comparison the 1993-94 figures have been adjusted to exclude expenditure and receipts in respect of the Air Navigation Services Office whose functions were transferred to the Irish Aviation Authority on its establishment in 1994.

(4) From 1996, payments in respect of the Exchequer's liabilities to the An Post and Telecom Éireann Pension Funds are provided for in Central Fund Services rather than in the Vote for the Department of Transport, Energy and Communications as was the case in respect of part of the 1995 liability.

[965][966] TABLE 4

RECEIPTS AND EXPENDITURE OF THE EXCHEQUER AND CERTAIN PUBLIC AGENCIES

1973-1997

	Exchequer		Local Agencies (a)
	Current Revenue	Non-capital Expenditure	Expenditure	Revenue (b)
	State grants received	Rates collected
	£m	£m	£m	£m	£m
1973—74	793	803	298	183	71
1974 (April-Dec.)	651	744	292	190	61
1975	1,091	1,350	481	332	84
1976	1,470	1,672	567	404	109
1977	1,757	1,958	684	504	111
1978	2,023	2,420	831	670	82
1979	2,384	2,906	1,007	820	91
1980	3,155	3,702	1,313	1,062	103
1981	3,973	4,775	1,565	1,284	102
1982	4,908	5,896	1,878	1,560	95
1983	5,711	6,671	2,093	1,749	105
1984	5,952	6,991	2,302	1,888	122
1985	6,331	7,615	2,493	2,066	141
1986	6,710	8,105	2,633	2,160	153
1987	7,151	8,331	2,699	2,223	170
1988	7,690	8,007	2,387	1,862	194
1989	7,756	8,019	2,552	1,931	231
1990	8,269	8,421	2,761	2,116	239
1991	8,776	9,076	3,000	2,349	252
1992	9,360	9,806	3,285	2,589	265
1993	10,140	10,519	3,358	2,683	280
1994	11,203	11,188	3,647	3,007	302
1995	11,667	12,029	3,846	3,079	323
1996 (c)	12,954	12,662	4,024	3,226	336
1997 (d)	13,806	13,335	4,219	3,410	346

NOTES:—(a) Local Agencies comprise County Councils, County Borough Corporations, Urban District Councils, Town Commissioners, Regional Health Boards, Vocational Education Committees and County Committees of Agriculture (up to their dissolution in 1987).

(b) The revenue of Local Agencies comprises rates, State grants (including payments on behalf of Health Boards to voluntary hospitals and homes in respect of general medical services) and other receipts e.g. rents and fees. Only State grants and rates are shown herein.

(c) Provisional.

(d) These estimates are consistent with those in the 1997 White Paper on Receipts and Expenditure.

[967]Mr. McCreevy: Not far from here the slogan “God loved the world so much that he did not send a committee to save it” adorned the office of the senior partner of a very successful professional practice in this city. It is a pity the Minister for Finance did not follow through on his resignation threat last month.

Mrs. Doyle: Is that the best the Deputy can do?

Mr. McCreevy: I now understand why he wanted to get out, he wanted to save himself the embarrassment of having to deliver the budget speech, which took him one hour and ten minutes. He knew that by the time the Tánaiste and Minister for Social Welfare, other fellow socialist Ministers, programme managers, advisers and assorted hangers-on were finished, his budget would resemble the political equivalent of a camel, which we all know is a horse designed by a committee.

Never in the history of the State has a Minister been in such a favourable budgetary position and never has a budget from a Minister of Finance failed so spectacularly to live up to its expectations. All the Minister's predecessors, from as far back as Michael Collins to Deputy Bertie Ahern, could only have dreamed of such a favourable Exchequer position.

Mr. Sheehan: It is a pity the Deputy did not follow Collins.

Mr. McCreevy: This was a glorious opportunity to leave a real footprint on Irish economic development, but instead we get barely a toe mark on the seashore to be washed away by the next small wave. Could the Minister not have set himself a small number of real objectives and done something in those areas? He has a political objective. The budget is the Labour Party equivalent of an SOS, save our skins in 1997.

There was a time when politicians and political parties cared about the medium and longer terms, and some still do. Has political comment become so vacuous that economic and budgetary decisions in an election year are measured solely on their perceived electoral pluses or minuses? There is no economic strategy underpinning this budget. It is an attempt to revive the electoral fortunes of the Government by trying to purchase the votes of the electorate. Trying to please many is often a sure political recipe to antagonise all.

People frequently refer to what politicians said many years ago. I have heard the Taoiseach say on many occasions that he is entitled to change his mind and there is no need for me to remind him of how often he has changed his mind in recent years. However, I take it he has hardly changed his mind since last Sunday——

Mr. Dempsey: I would not bet on it.

Mr. McCreevy: ——when in an article in the Sunday Independent he stated we are also reaping the rewards of wise decisions made in the past. In [968] regard to our economic growth he went on to state that, “None of this would have happened but for the original decision to extend free second-level education back in the 1960s. This shows how important it is to think in a long-term sense”. I am not convinced there is political long-term thinking in the budget or in the Government's economic strategy.

Mr. Harte: The Deputy is doing well against the tide.

Mr. McCreevy: Some of the things I predicted about the economy came true. We have paid a big price for making short-term decisions many years ago.

Mr. S. Ryan: In 1977.

Mr. McCreevy: In recent months a plethora of changes were introduced by the Government, in particular by Labour Ministers. Service charges and residential property tax were abolished, the Minister for Education altered the school capitation grants, the status of the regional technical college in Waterford — where a Minister of State resides — has been changed and the Minister for the Environment made announcements regarding roads. All of those changes were announced by Labour Ministers.

What has happened to Fine Gael Ministers in the present Government? Perhaps they are so busy dousing the bush fires of scams and so on they have no time to pay attention to the budget and its contents. There was a time when the Fine Gael Party stood for something, for the betterment of this State in the medium and long-term, for which we should all be grateful, unlike in the more recent past when a Fine Gael Leader said he would take a more long-term view, now recognised by all and sundry.

Perhaps the Minister for Health has taken such a grilling from my good colleagues, Deputies Geoghegan-Quinn and Liz O'Donnell, or perhaps as a result of the mess into which he got himself in the course of a recent debate in this House——

(Interruptions.)

Minister for Defence (Mr. Barrett): Which is the reason Deputy McCreevy is in Opposition.

Mr. McCreevy: I saw the Minister for Health on “Prime Time” last evening and I have to say I prefer the real Deputy Michael Noonan to the sort of creamy custard, caramel type flavour on offer last evening which had to be endured by “Prime Time” viewers. I much prefer the more crunchy, lemon, wholenut flavour of Deputy Michael Noonan which has a real good bite which can also be pleasant and very stimulating. There is already sufficient blandness, consensus and dullness in this House. If the Minister for Health is to go the way of many others, not alone will [969] Irish politics be the loser but the threshold of boredom in this House will have risen to an all time high.

Mr. Sheehan: The Deputy is drifting from the budget.

Mr. McCreevy: Perhaps in the future the House will be full of dull, boring Members.

Against what criteria should this budget be judged? I suppose that depends on which part of the political spectrum to which one professes allegiance but all budgets and economic strategies must be judged within the economic criteria. There are those who will say that one should have an economic philosophy which might achieve other objectives but, unless one gets the economic fundamentals right, nothing else will follow.

I contend that what has been put forward today as a budgetary strategy will do nothing at all in the medium or longer term for the betterment of this country. I would go so far as to say I would see nothing wrong with a budget — and there have been some in the past — which did not attempt to do anything momentous on the economic front. I would classify such budgets as reasonably harmless. I would also classify Governments that adopt a type of “do as little as possible” approach as not too dangerous, but I predict the budgetary strategy adopted by this Government over the past two years will do lasting damage. I have made that prediction for some time and reiterate it today.

The other criterion against which a budget can be judged is on its proposals on the social front: does it really tackle a few key areas or just spread the manure or fertiliser over a wide area, yielding no real benefit?

On the taxation front, one must ask what the changes add up to. Do they make much of a difference to the individual, the business person or company? Does it reward risk or achieve anything in terms of equity?

Finally, a budget can be judged for what it does for what is a unique Irish problem, referred to as the poverty trap. If the broad economic strategy is wrong, the rest becomes irrelevant. The broad strategy being adopted by this Administration is wrong, misguided and dangerous. There is no economic philosophy behind the strategy of this Government.

I have searched high and low, from Adam Smith to Jimmy Goldsmith, from Keynes to Milton Friedman and, unless perhaps the Minister for Social Welfare has been able to devise some wonderful economic theory covered in a correspondence course yet to be unearthed, conducted between himself and some Soviet bloc economy——

Mr. Sheehan: Shame on the Deputy.

Mr. McCreevy: ——but I have not come across any theory or any text book, past or present, [970] which says that this is the proper economic strategy to adopt.

Our economy is going through an historically high growth period. Over the past couple of years we have experienced growth in excess of 5 per cent while simultaneously increasing — which will be the case in the current year — current spending by at least 7 per cent. The Central Bank has signalled that growth in the credit institutions is now growing at an alarming rate and yet, at the same time, it is proposed to reduce taxation, all this in one fell swoop, and to continue this strategy. Were one to advance some justification for that economic doctrine one might be more readily excused but to do all of those things at the same time is inexcusable.

Ireland is probably at the top of the economic growth league. Our economic growth cycle is unique, at the opposite end of the league vis-à-vis all our European Union and major trading partners, an unusual phenomenon with which nobody has yet come to terms. The consequence of this phenomenon is that when we are experiencing something of a downturn they are doing very well, whereas the opposite is the case at present.

In the very near future we shall be joining a very strict economic and monetary union which will abolish the normal financial tools available to any future Irish Administration. While adopting that specific policy, we are also acutely aware of our nearest neighbour and major trading partner — who will remain so, because one will always trade with an economy 15 or 16 times one's size so near geographically. Having adopted the best economic strategy over a period of 25 years, thankfully we have redressed our total dependence on the United Kingdom market. Nonetheless the United Kingdom will remain our major trading partner, which will remain outside economic and monetary union and pursue an independent monetary policy, in itself, a major cause of concern——

Mr. Harte: Deputy McCreevy should not forget it was Fianna Fáil who broke with sterling.

Mr. McCreevy: ——remembering that we shall be going down that road in two years' time.

Despite our massive economic growth in recent years, we continue to have massive unemployment and to have a higher than European average number of unemployed which I predict will not decrease considerably before we join economic and monetary union.

We know that in January 1999 and in the year 2000 the European Union funds negotiated for the years 1993-99 will expire; if I may put it like this, thereafter, hopefully Irish Administrations will be in a position to negotiate new European funds. However, with the enlargement of the European Union it is an absolute mathematical certainty that, proportionately, the amount of funds coming into the Irish economy, post this round, will be very much less than those we have enjoyed to date. When one bears in mind that [971] over the past year 1 per cent, possibly more, of our growth can be attributed to those EU funds, one clearly sees the extent of the problem.

Furthermore, if we can pursue this type of economic policy at a time when all the indications point to and all the experts say that we may be fuelling inflation — I make this point in response to some backbenchers on the Government side — the one thing they should know is that we in Fianna Fáil have experience on which to make such judgments or predictions. Experience shows that this type of economic policy does not work in an Irish context. As a colleague has said on many occasions, what was worst about the Fianna Fáil 1977 manifesto was that we implemented it. Effectively, we spent our way out of a boom. That type of economic policy does not work. There was nothing wrong with trying to experiment at that time because the economies of Europe had come through an oil crisis in the 1970s which they had not experienced before and it was felt we should prime the pump. The experiment did not work and it left lasting difficulties which took until the late 1980s to reverse.

Davy Stockbrokers, in its Economic Monitor of 3 January, more or less signalled what the Minister would do and addressed some of these problems. Mr. Jim O'Leary, a columnist, said that the Minister could enter the textbooks as the man who introduced a new idea to the world of macro-economic management. He called it disinflationary fiscal expansion or how to join monetary union by cutting the price of drink. Most people who have looked at this problem would say that caution should be the key note of Government policy but that is not the case.

The Minister for Finance allowed himself to be bought off or browbeaten by his governmental colleagues into a situation where he felt he must put forward such a budget and publish a ridiculous Book of Estimates at the end of 1996. Over the past two years, with different Ministers pressurising him, he has had to increase gross current spending by upwards of 20 per cent at a time when inflation for the relevant period will not be greater than about 6.5 per cent. The Minister for Finance and those advising him know this is wrong. However, that will be little consolation in a few years' time when a future Administration made up of whatever parties — I do not care what ethos underpins the next Administration — will have to do something dramatic.

The problem is that when one has to take corrective measures, it is always the poor at the bottom of the scale who suffer most — the people whom those with bleeding hearts overtly say they are trying to protect. When changes and reversals of policy must come, whether a left or a right wing Government is in power, it is always the same unfortunate people who must suffer. That is what will happen again.

This is an attempt to buy off the voters for the next election. I have a certain amount of admiration for the subtlety with which parties of the [972] left buy off the electorate. Unlike Fianna Fáil in 1977 which adopted the crude approach of trying to buy people's votes or Fine Gael in 1981 when Garret FitzGerald put forward a proposal of £9.60 for stay at home wives, the left has a far more subtle way of doing this and dress it up as if it is in the national interest. It is a bit like their appointments to semi-State boards and other quangos. The people they appointed are those who should have been appointed in the first place but who were overlooked by the thugs in Fianna Fáil. These nice people who put the national interest first should have been appointed. It is only the muck savages in Fianna Fáil who have no ethos in these matters and who look after their friends. However, the Labour Party and Democratic Left appoint the best people, although it is important that they are members of the local branch and have always been involved in the party. I am willing to live for the next decade with that type of economic philosophy which has been laid down by some commentators because it is quite harmless and people should not get too upset about it.

Mr. D. Ahern: They will be in Opposition anyway.

Mr. McCreevy: Short-term popularity bought at the expense of future bankruptcy is not a worthey aim. The electorate has become so sophisticated that such an approach will not work electorally, but that is for another day and we will let the people be the judge. For some time the people have taken a longer-term view than politicians of any party or commentators but which they might not express as well. We all praise the farseeing decision of 1966 to introduce free second level education but policy makers, particularly politicians and commentators, forget that the effects of that decision over 30 years have given us an electorate and a society which are more sophisticated and which will not be bought off in ways we have all tried in the past.

If there were not to be an election in 1997, no Minister for Finance, let alone Deputy Quinn, would come to the House and produce this Book of Estimates and budget. It is wrong at this time. We should look at economic history and see that this type of economic policy has not worked. In the United Kingdom Nigel Lawson tried the same approach in the late 1980s. Before an election, he introduced a budget very similar to that of the Minister.

Mr. Quinn: Not so.

Mr. McCreevy: He did. The Minister has made the same mistake as that made in the United Kingdom which, in everyone's view, had a detrimental effect on all the good work done previously. Good work has been done here over a number of years by various Administrations made up of all the parties in the House but we [973] are prepared to throw it away because an election is imminent.

We have found a successful formula which has worked. It is amazing that economies in various parts of the world have adopted an Irish approach — for example, the Shannon duty free zone. The World Bank gave grants and assistance to organisations to help them to set up such areas. Shannon has been copied by others and it is a pity we did not do it a little better. We have discovered the magic or whatever of how to run the economy.

We took a long time — since the foundation of the State — to change economic strategy but, when we did, the economy grew quickly. We made mistakes and repeated them. When we were at the edge of financial bankruptcy, we found a successful formula which came about in the late 1980s when the Haughey-MacSharry Government totally reversed economic polices of previous decades. It was not politically popular in the House and we had critical votes on many occasions. Strange as it may seem, it proved to be good economics, which turned the country around, and good politics, which surprised politicians because instead of being eaten alive by the electorate, those who took this decision were respected.

In fairness to the parties which make up the Government and which opposed that type of economic strategy, they came to recognise that this was a successful Irish way of doing things. The main reason this was done was that we were at the edge of financial bankruptcy, but there was a realisation by the trade union movement, employers, farmers and the Government which produced the first Programme for National Recovery. That consensus approach gave us low inflation, low interest rates and a successful and good economy of which we are now able to enjoy the fruits.

Mr. Sheehan: The Deputy's party will never again get a second Charlie Haughey; I guarantee that.

Mr. E. O'Keeffe: Fine Gael will never have a second Paddy Sheehan; that will be some loss.

Mr. McCreevy: I want to say a few words about our joining economic and monetary union. There is no point in any politician or Government saying there are rules about joining monetary union and at the same time not realising and being prepared to face up to what future Irish Administrations must do after we join European Monetary Union. On one occasion during Question Time the Minister, perhaps inadvertently, gave the impression that it was not in the national interest even to question or debate joining economic and monetary union.

Mr. Quinn: Not at all.

Mr. McCreevy: My party is pro-Europe. We [974] believe that we can join economic and monetary union. However, to attempt to stifle debate would be very bad. Furthermore, we must face up to the fact that, if and when we join, it will not be the same for Irish Governments after that. I would have no objection if the Government proposed, like the Swedes, a commission of experts to give their views; as a matter of interest, the Swedish commission decided that it was not in Sweden's interest to join at that time. It would allow for putting forward all the ramifications of joining European Monetary Union. The only study carried out here by the ESRI has been on the economic front. It surprised me and many others in the pro-EMU camp that, whether the UK joins on day one or stays out, the economic benefits would be marginal.

We must recognise our position when we join economic and monetary union. We will not be able to come before this House with budget deficits. It is obvious that European Monetary Union would frown upon any type of deficit and we will be able to have them only under very strict rules. This raises the question for me of how monetary union will be operated without some form of enlarged federal budget.

There are two differences between the proposed European economic and monetary union and that in the United States. First, there is a centralised budget in the United States so that, in the event of a major economic shock, other taxes can be raised; second, there is great mobility of labour in the United States but there is no similar tradition in Europe. That is a matter for debate and the Select Committee on Finance and General Affairs has spent a great deal of time on it.

The most interesting aspect is that if we are at one end of the economic cycle and our European partners are at the other, say in three years time we join economic and monetary union which once joined cannot be left, we could come to the other end of the economic cycle and there would be a depression here while the rest of Europe was doing swimmingly. We would then be in a very awkward position. Rules must be introduced which would allow a small nation such as Ireland to adjust.

Despite what the Minister said today, after all his adjustments and trying to justify the unjustifiable, the national debt at the end of 1996 was still £30 billion. Over the lifetime of this Government current spending will be 20 per cent — it was 6.5 per cent of late, and this year alone it will be at least 7 per cent. If the Minister for Finance had succeeded in getting the Government to adhere to its targets of inflation plus 2 per cent since it came into power in December 1994, he would have had another £500 million available to do something about the national debt, to deal with social exclusion, to give more money to old people or to reduce income tax. That proves that the link between debt, taxation and expenditure must be understood by all sides. That was one of the most important breakthroughs in thinking over the past decade.

[975] The Minister said that £400 million was taken in taxation last year which was not planned for. In the last two years, £600 million has been taken which was not planned for in the Estimates. We are supposed to be delighted the Minister is giving us back some of this money. In 1996, the amount collected in tax revenue was £4,562 million. After all the adjustments today, the Minister will collect next year, by his own estimate, £4,926 million, an extra £364 million or an 8 per cent increase in tax this year.

Mr. Quinn: More people at work.

Mr. McCreevy: For the Irish taxpayer, £1 million extra per day will be collected between now and the end of the year instead of PAYE being reduced. People are really having some of their own money thrown back at them.

The Minister has made great play today of the full year cost of taxation changes. In the last budget brought in by the then Minister for Finance, Deputy Bertie Ahern, in 1994, the total tax changes in the full year were £333 million. If the Minister had stuck to his own rules in the programme, A Government of Renewal, he would have had that extra £500 million with which he could have done something real.

Regarding the social changes brought forward today by the Minister for Finance, despite the great Deputy De Rossa being the Minister for Social Welfare and the statement which talks about the total cost of social welfare and health in this budget and gives the impression that this is the biggest change ever made, I want to point out something different. This is not the biggest social welfare package ever. In 1990, when things were really bad, the full year cost of changes made in the budget by a Fianna Fáil Minister was £235 million, and that was social welfare alone. The total cost for the year of changes today between health and social welfare is £245 million. It is not true to say that the changes made here are the biggest ever.

Managing the Department of Social Welfare requires care and prudence. However, the Minister for Finance or the Minister for Social Welfare would be far better off targeting a few key areas in social welfare rather than trying to spread the largesse over a large number of areas. The Minister said that the increase for an old age pensioner will be £7 over the three years of this Administration. It may interest him to know that a bag of coal costs £7.60, in other words, the total increase for an old age pensioner over the three years of this Administration would not buy them an extra bag of coal per week. That gives some idea of the nonsense carried on by the Minister for Social Welfare and Democratic Left. Over three years the total increase for old age pensioners will be £7, while the cost of a bag of coal in my part of the country is £7.60. It would be much better for the Minister for Social Welfare to target the elderly at the lower end of the scale [976] or give an increase to widows than spread the money over many areas with no effect.

Mr. Currie: What about the dirty dozen?

Mr. McCreevy: I am sure the Minister would be interested to know how many of those measures were changed by subsequent Governments, including the one of which he is a member.

There is no co-ordination in the Government regarding changes in social welfare. The Minister for Social Welfare recently announced an increase in the single parent allowance. I received a phone call and a follow up letter from an unemployed person whose wife is working and he said that if he separated from his wife he would be 150 per cent better off, taking into account child dependant allowance, tax changes, rent allowance and the new single parent allowance. That is the type of social welfare policy that is being introduced.

I read recently about changes in Irish society — this matter was referred to by the Taoiseach in an article last Sunday. The wage earner in a household, be it the husband or wife, should be the role model. The Minister for Social Welfare's recent unilateral announcement of a single parent allowance will create anomalies. We must consider the issue of household income because people make economic decisions for their betterment, and who can blame them?

Today's budget is founded to a great extent on Partnership 2000. Fianna Fáil is the party that introduced the concept of that partnership. If one reads the Official Report of that period they will find that speech after speech by the present Taoiseach, the Minister for Social Welfare and other members of the Labour Party opposed the concept from day one. They said that it would not work and that it was undemocratic. Some Members, particularly the Taoiseach, maintained opposition to that concept until they went into Government, but others had the decency to say some years ago that they were wrong.

The figures in today's budget are based on agreement by the unions to Partnership 2000. Perhaps the unions will vote for that partnership, and everybody assumes they will, but my information is that if they do, the margins of victory will be very small. The result is not a foregone conclusion. From my contacts within the trade union movement, I am reasonably certain that the outcome will be very close and it will not surprise me if Partnership 2000 is not accepted.

Mr. Quinn: Is the Deputy recommending support for it?

Mr. McCreevy: If that Partnership is not accepted, given that the Minister has already made taxation cuts and adjustments, will there be a mini-budget to address some of the changes?

I read recently that the Minister for Finance, Deputy Quinn, was contemplating resignation from the Government as a result of being [977] upstaged by the Tánaiste and leader of his party. The Minister gave his views on RTE on public sector pay, but after the launch of Partnership 2000 a headline appeared in a major daily newspaper that the Minister was throwing down the gauntlet on public sector pay. Since becoming Minister for Finance, Deputy Quinn has picked Monday morning to throw down the gauntlet to some of his ministerial colleagues, but usually a few days later he gives in.

The Minister is like the fighter who talks about a great fight but when he gets into the ring he just lies down and throws up his hands. He reminds me of Mr. McNeely who fought Mike Tyson — he talked about a great fight until he jumped into the ring when he lay down with fright rather than from a blow from Tyson. In dealing with the Tánaiste the Minister, when he got into the ring — in this case the Cabinet room — lay down and threw up his hands. If he contemplated resignation, and he has not denied he did, he took the matter seriously. It is a serious matter to undermine the position of the Minister for Finance, the only Minister referred to in the Constitution apart from the Taoiseach. He has obligations and responsibilities which far outweigh those of any other Minister. He is responsible for the budget and does not have to get agreement on it from the Government. He is named in the Constitution.

Mr. Currie: That bodes well for the future.

Mr. McCreevy: I give the Minister credit for believing that the matter was serious enough to contemplate resignation. We deserve an explanation from both the Tánaiste and the Minister for Finance.

Some changes in the budget are inconsequential and will make little difference to business people and others. As regards corporation tax, if the change in that regard signals the long-term strategy of trying to reduce the top rate of corporation tax, it is welcome. The Minister said that he is awaiting a report in this area and will make an announcement shortly. It is imperative that that be done in the immediate future because decisions of major companies are dependent on the rate of corporation tax post-2005.

The changes in PRSI will make no difference to anybody. I recently read the results of a survey which states that 78 per cent of small firms have difficulty getting staff — any Deputy could give that information to Department of Finance officials. Some 20 per cent gave the reason that the people involved had no interest in the job, 37 per cent said it was due to the relationship between the social welfare and taxation systems and 43 per cent said that the problem relates to skills. There is no incentive at the lower scale for people to go back to work and there are no measures in the budget to address that position.

Despite great economic growth it is interesting that from 1990-96 there has been no dent in the number of the long-term unemployed. Because [978] we are approaching an election, much was made of the fact that the end of year 1996 live register figure had fallen by 15,000 compared to the previous year. Nobody pointed out that the figure had increased by 15,000 in 1995. It is a fact that in early December 1994 when the Fianna Fáil Labour Government went out of power the live register figure was 272,000 and it was 271,000 at the end of December 1996; there has been no change. Another interesting analysis undertaken recently shows that the number of long-term unemployed has not changed. The great growth we are experiencing has not impacted on that group.

I have told the Minister that the live register is a count of the number of people unemployed week in, week out. Government agencies should make greater use of the information which is available as a result of people signing on the register. With the increasing use of computerisation, I suggest to the Minister that it should be possible to obtain more information on that group than we have at present. To say that the Labour Force Survey is more accurate than a count of people is the same as saying that an opinion poll is more accurate than a general election. That does not add up. If we said we will not bother holding a general election in 1997 but will just carry out a survey at the top of O'Connell Street, people would laugh at us. I emphasised that point before and I do so again.

Some changes proposed in the tax year 1997-98 were not dealt with in the Minister's speech. Mortgage interest relief for 1997-98 will be at the standard rate. It is being phased in over four years. As a principle, I like the idea of standard rating. If a person has an ordinary job and income, he or she is more entitled to the benefits of a taxation break than, say, the higher earner who, if a standard rate does not apply, gets the tax break at 48 per cent and when tax rates were higher got it at those rates. We should be prepared to do something in this area now because I received some interesting figures recently regarding changes that have taken place in this area.

I suggest that the threshold of the interest allowable should be increased. It may interest the Minister to note that, taking inflation into account, in 1996-97 the relief will be only one sixth of what it was worth in 1980-81 and 56 per cent of what it was worth in 1993-94. When married couples, etc. are counted, at least 560,000 people are affected by this measure. Taking the 1993-94 figures into account, at least 570,000 people were affected by it. As the cost of houses is so high and interest rates are low at present, rather than tampering with standard rates, which would be a regressive move, the interest threshold should be adjusted. At present one gets 80 per cent of £5,000, less £200 or whatever the figure is. The benefit of it has been considerably decreased and the Minister might address this matter before the Finance Bill is introduced.

The raison d'être behind any good economic philosophy should try to address three issues —[979] employment, public services and taxation, in that order. That is a reversal of what some parties in this House would do. The Labour Party would go about it, maybe, somewhat differently and the Progressive Democrats would approach it somewhat differently again. Those three measures represent Fianna Fáil's philosophy on this.

In future budgets we should identify and set out our core expenditures, those that a Government and a society should necessarily undertake. We should provide for them and decide that peripheral expenditures cannot be given priority under the budget or the financial plan. There would then be some rationale behind how we run the country. The Government should disengage from areas where individuals can best provide for themselves. That is the underlying rationale I would like to espouse here today. If we adopted that economic philosophy in approaching a budget or a three year plan of Government, it would be to our betterment. It could then be tied in with annual budgeting to determine where we are going.

It may interest people to note that this is the first time there has been any cut in the standard rate of tax for a number of years. We are proud that we were able to make changes in our period of office from 1987-94. The top tax rate was reduced from 58 per cent to 48 per cent, the standard rate was reduced from 35 per cent to 27 per cent and the debt ratio decreased from 125 per cent in 1987 to what it is today. That is an outstanding achievement of which my party can be proud.

It may also interest people to note that the Exchequer borrowing requirement in 1986 was over 10 per cent and we are delighted to note it is much lower today, but my party leader said quite recently that we should aim not to have any Exchequer borrowing requirement on joining economic and monetary union.

Mr. Quinn: There is a current budget surplus.

Mr. McCreevy: The Government has engaged in short-termism to an extreme degree. It has thrown caution to the wind. It has not provided for the rainy day. It has looked only as far as the next election. The budget is pro-cyclical. The last thing the economy needs at this time is the stimulus which this budget will give it. That will be to our detriment. The Government has not taken any account of the fact that EU funds will run out at the end of 1999 and the constraints we will have to put in place when we join economic and monetary union. Regarding public spending, it has spent all the revenue from the growth achieved during the past number of years. In relation to social welfare, it has tried to spread benefits over too wide an area which will not have any real impact.

Every commentator I have read, including the Central Bank, suggests we should not adopt this type of financial approach at this time. The Minister, [980] who has been tied up preparing the budget may not know, but his officials certainly know, that there was a degree of nervousness about the financial markets today in the expectation that the budget would be too expansionary. We may think that nobody pays any attention to us, that this is good theatre and is to impress the electorate, but men and women are sitting in front of VDUs around the world noting what is happening in the Irish economy and taking a position on what they think a Minister for Finance and Government should be doing. We have decided to spend our way out of a boom and we have not made any provision for what will happen in the future.

Much was expected of the Minister for Finance and to those to whom much is given much is expected. We never had an opportunity in the history of the State to show we were responsible and could handle things better than anybody else. The pushing through of this budget by the Minister for Finance, perhaps against his will — there are three parties in Government and it is probably very difficult to operate in such circumstances — will be to the long-term detriment of our people and the economy.

The Minister was impelled to quote James Joyce. At the turn of the century, when he knew he was dying, Oscar Wilde was reported to have said:

It would be more than the English could stand if another century began and I were still alive. I am dying as I have lived, beyond my means.

With a slightly changed wording, could there be any more fitting epitaph for this Administration? It would be more than the electorate could stand if another millennium began and the Government was still politically alive. Politically, it is dying and has certainly lived beyond its means. In sporting terms, in a penalty shoot-out without the goal-keeper, the Minister missed.

Mr. M. McDowell: I send my regards to Deputy Jim Mitchell who is unwell. He would have participated vigorously in the debate that will take place over the next few days. His work at the Select Committee on Finance and General Affairs on the pre-budget process was highly valued.

This budget, far from being the great giveaway, has turned out to be the great damp squib. It has been portrayed in public as an occasion on which the Government would secure its electoral future.

Mr. Quinn: What would the Deputy like as a wedding present?

Mr. M. McDowell: The people will not be bought that cheaply. The budget is the longest redundancy application form ever composed and signed by a Minister for Finance and an Administration in the history of the State. It represents [981] the high point of the abandonment of every commitment made by the Government of renewal on taking office two years ago. I do not have to remind Members that it set itself certain targets, one of which was to control public spending. It promised the electorate that public spending would rise by no more than 6 per cent in the first year and 2 per cent in real terms in the years thereafter. It has exceeded those sums by £500 million thus far and proposes to exceed it by even more next year.

The budgetary tables show that there will be a 7 per cent increase in public spending this year. If one allows for the inflation rate which the Minister, through the budgetary changes, is pushing up to 2.2 per cent this year, one is still left with a 5 per cent increase in public spending at a time when he solemnly covenanted with the people it would be 2 per cent. The difference between the amount he said he would run the country for for the past three years and the amount he is proposing to run it for, is of the order of £600 million to £700 million per annum. That would make a huge difference to the capacity of this country to have a pro-enterprise, pro-jobs tax régime. If the Government had kept its promises on the one target it set itself on the day it took office — it was not set by the Opposition — we would be in a radically different budgetary situation now.

The truth is that the figure of 7 per cent is a phoney underestimate of the real underlying rate of increase in public spending. I do not have to quote anybody more or less eminent than Dr. Garret FitzGerald who reprimanded the Minister for moving towards gross increases rather than net increases in his first budget as the real measure of increases in public spending. Using the formula that Dr. FitzGerald said the Minister had wrongly abandoned, the net increase in public spending this year will be 8.2 per cent, four times the rate of inflation.

I will not ask anybody to measure up to standards which are unrealistic, I only ask them to measure up to standards which they set for themselves and which they agreed were reasonable. If the Government had kept the spending commitments it solemnly gave to the people on taking office, we would be in a radically different position.

The Minister will say that there were many unexpected and unforeseen contingencies but the £100 million paid out in equality payments was fed into the system and formed part of the cumulative total for the following year. There is now a publicly stated contingency fund. Although I am aware that the committee on which I served recommended that such a fund be set up, this is a very dangerous development because it seems to be an open invitation to every pressure group to demand that the money be spent and to create the contingency against which the money was provided.

I sympathise with the Minister in attempting to control public spending, particularly in the manner in which he was betrayed by the Tánaiste. It [982] is clear the Minister tried to take a stance to control the explosion in public spending and was prepared at one stage to lay his job on the line but dissuaded by others from doing so. I admire him for taking a stance but it was always inevitable that a Government put together in the way this one was would eventually fall victim to the temptation to increase public spending and even the noble gesture of laying one's own political body across the pathway of increased public spending would not have stopped it. That is the reason the Minister did not carry out his threat. The Government would have carried on without him because its insatiable appetite for increasing public spending at four times the rate of inflation in net terms would not have been embarrassed even for two minutes had it to dispense with him as the price for maintaining the volume of public spending. While I sympathise with him, his gesture in offering to resign was futile.

I remind the Minister that it was not unprecedented. In the 1980s the same force for increased public spending overrode the determination of a previous Government in which Deputy Alan Dukes, who has had much to say in recent days, played a key role as Minister for Finance before his inglorious trip to the Department of Justice——

Mr. Browne: (Carlow-Kilkenny): He had great material.

Mr. M. McDowell: ——with the result that it proceeded to double the national debt.

Mr. Cowen: The same culprit was involved.

Mr. M. McDowell: There are one or two provisions in the budget for which the Minister must be commended. He has finally agreed that PRSI is a tax on work and a reduction in PRSI is a pro-jobs, pro-employment step. My party has been saying this for years. The Minister's colleague, the Minister for Social Welfare, Deputy De Rossa, has been denying it emphatically. I salute the Minister's achievement in turning the tide and forcing the Department of Social Welfare to accept that PRSI is anti-jobs and anti-work and should be integrated into the tax system. I salute his first faltering step down that road.

I also salute the 1 per cent decrease in the standard rate of income tax. Why is this being done now and why the sudden and late conversion to a reduction in the rates of income tax? If it was a good idea to reduce the 27 per cent rate of income tax in 1997, why was it not done in 1993, 1994, 1995 or 1996? The reason is the Labour Party's insatiable requirements for public spending in 1995 not only demanded that the process of tax reform be stopped but that a 1 per cent income levy be imposed on all income that year. This amounted to a 2 per cent increase in the standard rate of income tax.

Mr. Quinn: Does the Deputy know why?

[983]Mr. M. McDowell: The Minister should look at the Labour Party's history of tax reform.

Mr. Quinn: To pay the bills the Deputy's party left behind.

Mr. M. McDowell: At the beginning of the Labour Party's four years in office it raised taxation on work, but at the end of that term, following a deathbed conversion and faced with an electoral winter, the party is converted to the proposition that tax rates are important.

Only those who understand how people work and what incentive really means understand that tax rates are important. It is neither a right wing nor a Thatcherite notion. The Progressive Democrats seek tax rates in Ireland which Tony Blair is committed to maintaining and improving in Britain. We look for tax rates which the German Government proposes to exceed through tax reductions in the next few years. The top rate of tax in Germany will be 35 per cent in a couple of years. The lower rate will be 20 per cent or less. However, Ireland, under the unreconstructed, left-wing, socialist parties which hold the reins of government, has kept tax rates at their current levels.

There is no decrease in the 48 per cent tax rate. This is probably justified on ideological grounds, on the basis that those who have owe more to society than those who have not. Central to that proposition is a lie: wealthy barristers, doctors, business men and property developers do not pay 48 per cent tax. They use every BES scheme, special savings allowance scheme and other schemes to minimise their tax liability.

Mr. S. Ryan: The Deputy does his best to help them.

Mr. M. McDowell: They employ people who are skilled in minimising their tax burden and they feel foolish if a significant portion of their income is lost at a rate of 48 per cent, in addition to PRSI in the case of some of the lower paid.

Ordinary workers earning less than the average industrial wage are obliged to pay 48 per cent tax. These are the people who have never heard of or have never received through the post an application for a BES scheme. These are the people for whom accountants can do nothing. PAYE workers earning less than the average industrial wage are caught by the 48 per cent tax rate. They pay 48 per cent tax in addition to 6 per cent PRSI or 54 per cent of every extra £10 they earn. These are ordinary men and women who work in shops and factories and who earn less than the average industrial wage. They pay more than half of every extra £10 they receive from their employer to Ministers Quinn and Prionsias De Rossa in PAYE or PRSI. They are caught by the tax system.

In the USA, a lady known as the “Queen of Mean”, Leona Helmsley, was sent to jail for tax evasion. The reason she gave for evading tax —[984] the judge correctly disregarded it — was that she thought tax was only for the little people. Under the Labour Party, the 48 per cent tax rate is only for the little people, the people who cannot avoid it. They are the people who are hammered and nailed to the floor by the tax system and for whom it spells the end of hope and an incapacity to improve the lot of their families by working harder.

This was not always the case. In 1973, when the Fine Gael-Labour Party coalition came to power, fewer than 2 per cent of taxpayers were paying above the then standard rate of 35 per cent income tax. However, when the Labour Party and Fine Gael finished with the tax system 14 years later in 1987, 42 per cent of taxpayers were paying tax above the standard rate. Those parties brought surtax to the masses and there it has remained. Although the wealthy and powerful in Irish society can move their money offshore, invest it in special savings accounts and BES schemes and thus avoid the consequences of the Government's massive avarice for people's earnings, ordinary PAYE workers cannot and they pay through the nose, week in and week out.

I agree with a columnist in one of today's newspapers who said that the sooner we are rid of the notion of secrecy attached to the budget and the embargo on publication of copies of the Minister's speech before a certain time, the better. When today's budgetary charade is over, we will be left with one fact: single men and women earning less than the average industrial wage will continue to pay more than half of every extra £10 they earn in taxes to a State which is grinding them and their prospects of doing good for their families down and preventing them from rising through their hard work.

Mr. S. Ryan: There were substantial improvements today.

Mr. M. McDowell: I will talk about the substantial improvements and I am glad the Deputy suggested it.

Mr. S. Ryan: Services are required which the Deputy would not provide for people if he were in Government.

Mr. M. McDowell: The Deputy will have a chance to speak later.

An Leas-Cheann Comhairle: Deputy McDowell without interruption.

Mr. M. McDowell: The standard rate of income tax has been reduced by 1 per cent. The band has been increased in real terms, after inflation, by 3 per cent. Is that radical? The value of the personal allowance in this great giveaway budget is increased in real terms by 6 per cent. The budget tables offer examples of single people and families who will, according to the figures in the budget, have an extra £8 to £12 per week. However, these tables make no reference to [985] mortgage clawbacks. None of the examples chosen reflects them. What is also not stated in the Budget Statement is the rate at which the Minister is increasing PRSI ceilings. The employee ceiling is being increased by 9 per cent, from £22,000 to £23,000 and the employer's ceiling is increased by 9 per cent. Across the board there are hidden taxes to take back the apparent benefits of the budget.

When people have paid the extra moneys on petrol, mortgages, cigarettes, increased television licence fees and extra PRSI, many families this year, as was the case last year, will notice no difference in their circumstances. Those who notice a difference will see it is so small that they will wonder what a tiger economy is about. In an effort to add literary and artistic flair to his Budget Statement, the Minister referred to Leopold Bloom's budget on Bloomsday. We were told he spent one penny on his newspaper, the Freeman's Journal, the predecessor of the Irish Independent about which the Minister was so scathing. Even at that time, Mr. Bloom had to spend £2.19s 3d, slightly less than £3, on his day's activities. In fact, Leopold Bloom's £3 per day budget on Bloomsday is less than the benefit to most families under the budgetary tables of this budget. We are talking about an increase of the same amount or less. A sum of £3 per day is a total of £21 per week. I defy people to search through the budgets for any ordinary family who will be better off to that extent.

This is a bloomsday gloomsday budget which is being put forward as something magnificent but turns out to be something very disappointing. That need not have been the case. If the Government simply had held to the targets I mentioned earlier, the dramatic scope for tax reductions and increases in essential services would have been enormous compared to what has been achieved today. At the end of 1997 it would have been of the order of £600 or £700 million had the Government simply kept in line with its own promises.

One of the features I have noted about the budgetary process for the past three or four months is that not one governmental programme was examined to see if it was giving good value for money. There is not one reference to the effect that the moneys to be expended under the Estimates have been revised because good value for money is not being obtained. There has not been one saving of significance right across public spending. All we have had is a proposal to increase dramatically the level of spending over and above an already inflated rate last year.

I ask Deputy Ryan or anybody else to say with their hand on their heart to the electorate that there is no economy to be made anywhere, all Government spending is necessary, we get good value for every penny spent, there is no overmanning in any area and there is no scope for savings anywhere. Nobody could say that to the electorate but as far as I can see not a single penny is saved in this budget from the current levels of public spending. There was no control [986] of the growth in public spending, as the figures I mentioned earlier of a real increase of over 8 per cent in net terms over the past year adequately demonstrate.

A decrease which I noticed was on public housing through local authorities. In an election year how can the Labour Minister for Finance reduce the amount of money for spending on local authority housing in capital terms?

Mr. S. Ryan: When the Deputy's party was in Government not one house was built.

Mr. M. McDowell: The answer is simple. He found that when he gave the motor tax receipts to the local authorities there would be an overall increase which they could use for some of their purposes. What did central Government do? It clawed it all back and told them they must live on exactly what they had last year. That is interesting when one thinks about it in terms of local government. They must live on what they had last year but at central Government, where the election will be won or lost as far as this Government considers its prospects to be still alive, there will be an 8 per cent increase in net terms in public spending. That is extraordinary. The Government was willing to implement cutbacks everywhere else but where it really mattered there was no such determination.

Deputy McCreevy correctly said that we are now in a position to begin reducing the national debt. Last Monday week the Progressive Democrats published a budget which showed that by controlling public spending, getting better value for money, not filling every position in the public service as it became vacant but asking for a real return in terms of productivity for the moneys due under Partnership 2000 it was possible to begin the process not merely of wiping out the Exchequer borrowing requirement but going one stage further in 1997 and beginning to repay the national debt. The sad fact is that this year the Government is planning to borrow an extra £637 million — I accept there is a surplus on the current side — simply to spend on capital projects, thereby increasing the national debt to that extent and incurring a £30 million or £40 million extra charge per annum to service that additional indebtedness. That is not necessary.

I note there is no provision in these budgetary figures for the Trustee Savings Bank to be floated off into the private sector and a capital inflow to the Exchequer to arise from that. Nor is there any proposal in respect of any part of the semi-State sector to get in private sector capital, investment funds or pension funds to substitute their investment for the capital the State has now borrowed to capitalise those ventures. The reason for that is ideological. Nobody will take the risk, even in this electoral year, of facing up to the reality that the Trustee Savings Bank should no longer be in the public domain. If Greencore or Irish Life had remained in public ownership at the time we handed over the reins of power to the Labour [987] Party, would they still be in public ownership and what terrible effect would such public ownership have caused?

There is huge scope for this country to make Government leaner and more effective. We do not have to capitalise every project from borrowings. We can introduce private funding initiatives, as other countries are doing, for major public projects. We can reorganise our portfolio of public sector assets with a view to reducing the role of the State, the necessity for the State to manage and to take risks and the necessity for the State to capitalise and to pay interest on borrowings for those enterprises. All of this could be done on a non-ideological, pragmatic basis with the interests of all at heart if we were not frightened of our ideological shadows. We are not proposing that a swingeing axe be taken to the semi-State sector. On the contrary, we are proposing a programme of survival for the semi-State sector which enables that sector to be fully competitive in the competitive world which we have not ordained for ourselves but which Europe has delivered to us.

Does it make sense for the Government to borrow money and to pour it by way of capital into an enterprise which is expected to compete with other enterprises on a level playing pitch and at the same time to have the Government be the regulator, referee and arbitrator on that level playing pitch? Does it make sense to have a system in which one is supposed to do justice as between two parties but own, capitalise and take the risk of failure of one of the two parties? It does not. The days are numbered for our capacity to maintain this hybrid world where the State is both capitalising risk-taking operations in competitive fields and at the same time purporting to be the judge and the regulator of those markets. It is not I, the Progressive Democrats or the next Government, whichever way it will be formed, that are numbering those days. It is the inevitable laws of economic competition handed down to us from the European Union.

As a society we have to take advantage of the next five years, 1997 to 2002, to transform this country from top to bottom. There is something radically wrong with our tax system and only radical steps will put it right. Incrementalism such as the 3 per cent in real terms we have seen today or the 1 per cent decrease in income tax rates over five years of the Labour Party in office will not do. If we are to compete with Tony Blair's Labour-led Britain, which in all probability will come to pass, our workers are entitled to as projobs a tax system as his workers. If we are to compete with Germany, which will have tax rates of 35 and 20 per cent respectively, our workers are entitled to a Government which has made the necessary preparations to allow them compete on a level playing pitch with German industry and capital which can locate much closer to the European centre.

[988]Mr. S. Ryan: A total of 40,000 new jobs are contained in today's programme.

Mr. M. McDowell: I am glad the Deputy reminded me. Last year I queried the speech made by Deputy Quinn when he said 5,000 jobs would be created by the jobstart scheme.

Mr. Martin: That is right.

Mr. M. McDowell: I recall that a newspaper the next day, the successor to the Freeman's Journal, contained the headline “Quinn introduces pro jobs budget”, with the line “5,000” studded across the three page feature inside. However, by the summer only 100 jobs had been created and less than 1,000 jobs were created by the autumn under that programme. I know what the Deputy means when he says the budget will create 40,000 new jobs; employers and workers will create a real economy with growth and 40,000 jobs.

Mr. S. Ryan: Yes.

Mr. M. McDowell: Who is holding them back?

Mr. S. Ryan: A total of 50,000 new jobs were created last year, the highest number ever.

Mr. M. McDowell: The Government and the tax system are holding them back. The economy needs what Dublin traffic had over Christmas, an operation free flow.

Miss Quill: Hear, hear.

Mr. M. McDowell: We need a system where all the obstructions and anti-competitive activities are moved on carefully to create a free flow of resources into employment creation, workers into jobs, and through poverty traps which are as bad as cars on freeways.

Mr. S. Ryan: On double yellow lines.

Mr. M. McDowell: The economy needs less, but more effective, government, less taxation on work and a Government which is committed over a period of time to the programme of transformation I stated.

Deputy McCreevy mentioned the period between 1989 and 1992 when the top rate of tax was reduced from 58 per cent to 48 per cent and the lower rate from 35 per cent to 27 per cent. This was not achieved by considering what was left over each year for tax reduction but by the exact opposite arrangement with a statement that the tax rate in the following year's budget would be a certain figure before deciding what accommodation had to be made to achieve it. All the Finance Bills which achieved that significant transformation in the tax system were voted against solidly by the Labour Party. On occasions when I hear the vehemence with which it condemns the tax reform policies of the Progressive Democrats, which were echoed in a long since [989] forgotten Labour Party document in 1988 — the Deputy may have heard of it — I wonder if anybody in that party wishes to return to pre Progressive Democrats tax rates. Do they wish to return to a 35 per cent standard rate of tax, which, in conjunction with PRSI, meant that over 40 per cent was the first effective tax rate for workers?

Mr. S. Ryan: I do not want to go back to the borrowing rate which obtained when the Deputy was in Government.

Mr. M. McDowell: Does the Deputy want a tax rate of 58 per cent applying to workers earning well below the average industrial wage?

An Leas-Cheann Comhairle: Deputy McDowell without interruption.

Mr. M. McDowell: That was the rate and we changed it. People in the Labour Party who want to turn back the clock and say we were wrong should stand up and state that we should revert to the tax system which operated before the Progressive Democrats began the revolution in tax reform in this country. Why are the people now being asked to accept, in the twilight hours of this Government, that reducing tax rates is a good idea when it was not a good idea for the last four years?

I said previously that 1997 marks the end of a 25 year period in which the Labour Party has been in office for more years than any other party. It has been in office for 15 of the last 25 years. It brought down a Government on the issue of who it wanted appointed to the courts. It does not lack bottle when it comes to something really important, such as that matter. However, when it comes to something which I consider important on behalf of workers, how much the State takes from their wage packets every week, the Labour Party has never taken a stance. It has never said it is fearlessly on the part of workers.

Mr. S. Ryan: I am convinced the Deputy is not on their side.

Mr. M. McDowell: During those 25 years, we have come from a position where less than 2 per cent——

Mr. S. Ryan: The Deputy has two jobs.

Mr. M. McDowell: ——of people were earning sufficient money to pay tax above the standard tax rate to a position when the Labour Party last left office where almost 50 per cent of people were paying income tax rate at the higher rate.

Mr. S. Ryan: How much does the Deputy earn?

Mr. Martin: Is Deputy McDowell getting to the Deputy? He is hitting home.

Mr. Cowen: I thought Ceauceseu was dead. Did the Deputy buy into Stalin's set up?

[990]Mr. M. McDowell: Those decisions did not occur by stealth. Some people think it was the effect of annual inflation at a fierce rate, the diminution of the value of the tax allowance or an unconscious process which nobody chose. However, that is not the case because the tax rates are reviewed every year in the Finance Bill. The position where workers in the Deputy's constituency are paying more than half their marginal earnings in tax and PRSI was chosen by successive Governments in the last 25 years. The chief moving party in that process of increasing taxation so there was more money to spend at every stage was the Labour Party.

The phrase “tax and spend” has been used and it is easy to throw it out as a jibe. However, I do not use it as such. The record shows that the taxation of workers' earnings over the last 25 years is crippling and that welfare versus taxation as a deciding factor in whether people work has dramatically changed over that period. There must be political responsibility and accountability for that change. Those who were in office for the great portion of that period must take responsibility for the shape of the current tax system. I look forward to the next general election and even more so following the Budget Statement. I thought it would be an election winning budget, but an election losing budget was announced because people will say tomorrow: “Is that all? Is that what we were waiting for? Is this the bonanza we were promised? Is this the price of our vote in the cynical minds of the Government spin doctors and programme managers?” They will say it is not for sale at that price.

The Government, which has, according to opinion polls, one third of popular support, is facing an election campaign and hoping to swing around, in a Lazarus like resurrection, its political fortunes on the basis of its performance in office.

Mr. S. Ryan: We will stand on our record across the board.

Mr. M. McDowell: The Government will stand on its record but, like anybody who stands on a record, it cracks. That is what happened today.

Mr. S. Ryan: We will stand on our record.

Mr. M. McDowell: The Government stood on its record and it is broken. The people are not fooled by the rhetoric, the quotations from Joyce, the so-called largesse of the Minister for Finance or the gross figures. They are well tried people in terms of the bottom line.

Mr. S. Ryan: They will not vote for the Deputy.

Mr. M. McDowell: They know that in April, when they look at their pay slips, the truth of four years of the Labour Party in Government will add up, in the case of pensioners, to less than the price of a bag of coal. That is the increase in pensioners' spending power over four years of the [991] life of the Celtic tiger. How do they feel about that?

However, that need not necessarily be the case because the Progressive Democrats' alternative budget, which was castigated by the Left, proposed economies in the way the State is run and also proposed an extra £5 for every pensioner. That is much more than is on offer in today's budget. It proposed an increase in the carer's allowance which is far more than what is on offer here. It also proposed an increase of £4 in child benefit, four times what is on offer here. In spite of all the cant from some Deputies on the Government side about the huge revolution in child benefit, this year we are talking about £1 per month, the price of a chocolate bar per week, as the bottom line for children in needy homes in Irish society.

Mr. S. Ryan: Give all the facts.

Mr. R. Burke: Deputy Ryan is trying to defend the impossible.

Mr. M. McDowell: If that is the extent of preelection largesse, I am sorely disappointed. I have come to the conclusion that the budget processed this year was fatally compromised by the three party process, the wrangling over whether PRSI could or could not be reduced, the wrangling over whether the top rate of income tax could be reduced and the absolute determination of every spending Minister to hang on to every penny. All these have combined in the rather dismal and pathetic spectacle we have today — a budget which achieves very little for many people, nothing for some people and a good deal for a very small group.

This is an election year and this is an election budget, but it is an election budget which will see this Government swept from office and replaced by a Government which will put tax reform as the cornerstone of the budgetary process every year.

I think Deputy McCreevy was trying to draw a distinction between the approach of the Progressive Democrats and that of Fianna Fáil when he said that we had to deal first with employment, second with public sector spending and programmes and third with taxation. If I were asked to rate their importance I would agree with Deputy McCreevy that that is a proper sense of priority. What is peculiar is that if one does nothing about taxation one will not achieve much in relation to employment.

What is it about other countries that stimulates Irish children who go there to work during the summer, to take two jobs and work hard for all the hours of the day and night to bring money home? What is it about this country that produces the opposite reaction, to leave the country because there is no room for enterprise? It is our tax and welfare systems. We have to face up to that because the post-EMU Europe will not be a forgiving society. In the brave new world of the [992] post-EMU European economy, any country that has an anti-work, anti-employment tax system will suffer a haemorrhage of people to the other regions of the European Union throughout the period it struggles to remain within economic and monetary union. Ireland is being asked to pay a heavy price in terms of financial autonomy, control of our interest rates, and perhaps fiscal autonomy, in taking the next step in European economic integration. If we are to pay that price and be in a position to sustain that price year in, year out, we must make the changes now, because the window of opportunity when EU transfer funds will make it politically possible to effect the radical and fundamental changes in our society, in our tax system and in our expenditure patterns, that are needed to make Ireland a self-starter which hits the ground running in the post-EMU Europe is a narrow range of time — three or four years at best. If the present Government were by any mischance to be re-elected — and I cannot see that happening — that window of opportunity will be slammed shut and the opportunity for Ireland to prosper in post-EMU Europe will be thrown away.

We have seen what Labour has done with its pledges to control public spending. It has cynically ripped them up every year. There is no reason to believe that, if the Labour Party got back into office as part of the Rainbow or, by some disastrous set of circumstances, by wooing any other party into office with it, it would behave differently. It is ingrained in the nature of the beast that it will always exceed its expenditure targets and never make the economic decisions that are necessary to sustain real development.

The Progressive Democrats is a party which is creating choice. If these seats were occupied by others, if they were spread between Independents and the other parties in this House, the next election would be reduced to one single proposition — with whom would the Labour Party make the most beneficial electoral arrangement after the next election? There will not be a Fine Gael-Fianna Fáil Coalition. If we were not here, there would be one choice for the Irish people — to choose a mate for Labour. Because we are here the people have a choice; it will be a straightforward choice. It will not be a choice between extremes as some people like to characterise it. It will be a choice between sanity and insanity, between squandering and saving——

Dr. Bhamjee: Not squandering, using money usefully.

Mr. M. McDowell: ——between building a pro-jobs economy or squandering our growth in additional spending. Over the next four years we will have the choice of matching Tony Blair's Labour Party taxation policies in England or failing to do so because we have a pre-Berlin Wall Labour Party in office in Ireland. We will have a choice of doing in Ireland what the Labour Party did in New Zealand to transform the economy [993] seriously or to abandon that and allow Ministers Proinsias De Rossa and Dick Spring to continue with the squander-mania of an 8 per cent net increase in spending over the next few years. We will have the choice of matching the tax rates that Chancellor Helmut Kohl and the Free Democrats are going to produce in Germany or carrying on with a 1 per cent change in the income tax rate every five years, which is the legacy of Labour.

I have no doubt about the choice the people will make if that issue is put to them fairly and squarely. I accept that this is an electoral budget, but it is an electoral budget that blows the whistle on an electoral year that will be decisive.

Mr. S. Ryan: It is a budget in an election year. There is a difference.

Mr. M. McDowell: I believe 1997 will be the year when the lack of economic philosophy and ideological confusion and the lack of will to stand by commitments given to the people which this budget represents will be shown up for what it is, and that the people will choose a better, saner, more enterprising path. I welcome today's budget from my heart because it shows clearly, as no speech of mine could do, how hopeless it would be to re-elect this Government or any Government in which the Labour Party has its hands on the levers of the economy. It shows clearly how they will squander every opportunity to transform this country. It shows that next year they will have another 8 per cent real net increase in public spending even though they will probably promise the electorate this summer they will do something radically different. If Deputy Ryan is standing on his record I am glad this budget represents his best because the worst has been a lot worse. If this amounts to the best, I face the next election with confidence and satisfaction that for once in recent years the Irish people will have a simple and straightforward choice put before them which they will make.

Mr. S. Ryan: On that issue we are agreed.

Mr. M. McDowell: The Progressive Democrats will play its part in undoing the damage Labour has done for 15 of the last 25 years, making sure that Ireland, in post-EMU Europe, is a thriving, thrusting, worthwhile, enterprising economy,——

Mr. S. Ryan: We will fight you in the constituencies.

Mr. M. McDowell: ——the kind of economy that provides jobs for its people and fights poverty with jobs not rhetoric, which is what today was about.

Sitting suspended at 6.40 p.m. and resumed at 7.10 p.m.

[994]Minister of State at the Department of the Taoiseach (Mr. J. Higgins): I move:

That, notwithstanding anything in Standing Orders, Financial Motions Nos. 1 to 3, inclusive, shall be moved and grouped together for the purpose of debate as follows and the proceedings thereon and in respect of Financial Motion No. 4 and on any amendments thereto, if not previously concluded, shall be brought to a conclusion by one question in each case not later than the times indicated as follows:

Resolutions Nos. 1, 2 and 3 at 9 p.m. and Resolution No. 4 at 10.30 p.m.

Question put and agreed to.

The Taoiseach: I move Financial Resolution No. 1:

(1) That in this Resolution—

“the Act of 1977” means the Finance (Excise Duty on Tobacco Products) Act, 1977 (No. 32 of 1977);

“cigarettes”, “cigars”, “fine-cut tobacco for the rolling of cigarettes” and “other smoking tobacco” have the same meanings as they have in the Act of 1977, as amended by the Imposition of Duties (No. 243) (Excise Duty on Tobacco Products) Order, 1979 (S.I. No. 296 of 1979), and by Regulation 26 and Regulation 29 of the European Communities (Customs and Excise) Regulations, 1992 (S.I. No. 394 of 1992).

(2) That the duty of excise on tobacco products imposed by section 2 of the Act of 1977 shall, in lieu of the several rates specified in the Third Schedule to the Finance Act, 1996 (No. 9 of 1996), be charged, levied and paid, as on and from the 23rd day of January, 1997, at the several rates specified in the Schedule to this Resolution.

(3) It is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).

SCHEDULE

RATES OF EXCISE DUTY ON TOBACCO PRODUCTS.

Description of Product	Rate of Duty
Cigarettes	£62.64 per thousand together with an amount equal to 16.93 per cent of the price at which the cigarettes are sold by retail.
Cigars	£94.652 per kilogram
Fine-cut tobacco for the rolling of cigarettes	£79.872 per kilogram
Other smoking tobacco	£65.666 per kilogram

[995]The Taoiseach: I move Financial Resolution No. 2:

(1) That in this Resolution-

“the Act of 1988” means the Finance Act, 1988 (No. 12 of 1988);

“the Act of 1996” means the Finance Act, 1996 (No. 9 of 1996);

“the Order of 1975” means the Imposition of Duties (No. 221) (Excise Duties) Order, 1975 (S.I. No. 307 of 1975).

(2) That the duty of excise on mineral hydrocarbon light oil imposed by paragraph 11 (1) of the Order of 1975, shall, in lieu of the rate specified in section 79 (2) of the Act of 1996, be charged, levied and paid, as on and from the 23rd day of January, 1997, at the rate of £328.31 per 1,000 litres.

(3) That the rebate of duty on mineral hydrocarbon light oil provided for in section 56 (3) of the Act of 1988, shall, as respects mineral hydrocarbon light oil on which it is shown to the satisfaction of the Revenue Commissioners that duty at the rate specified in paragraph (2) of this Resolution has been paid on or after the 23rd day of January, 1997, be calculated at the rate of £33.87 per 1,000 litres.

(4) (a) That subject to compliance with such conditions as the Revenue Commissioners may think fit to impose a rebate of duty of excise on mineral hydrocarbon light oil imposed by paragraph 11 (1) of the Order of 1975, shall be allowed at the rate of £4.14 per 1,000 litres, in respect of such oil which is deemed to be unleaded by virtue of section 56 (3) (a) of the Act of 1988 and which has a research octane number in excess of 95.4 and on which duty has been paid at the rate specified in paragraph (2) of this Resolution.

(b) That in this paragraph “research octane number” has the same meaning as it has in paragraph (c) (inserted by section 80 (1) (b) of the Act of 1996) of subsection (3) of section 56 of the Act of 1988.

(5) That the duty of excise on hydrocarbon oil imposed by paragraph 12 (1) of the Order of 1975, shall, in lieu of the rate specified in section 79 (4) of the Act of 1996, be charged, levied and paid, as on and from the 23rd day of January, 1997, at the rate of £256.14 per 1,000 litres.

(6) That the duty of excise on substitute motor fuel imposed by section 116 (2) of the Finance Act, 1995 (No. 8 of 1995), shall, in lieu of the rate specified in section 79 (5) of the Act of 1996, be charged, levied and paid, as on and from the 23rd day of January, 1997, at the rate of £256.14 per 1,000 litres.

[996] (7) It is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).

The Taoiseach: I move Financial Resolution No. 3:

(1) That in this Resolution—

“the Principal Act” means the Value-Added Tax Act, 1972 (No. 22 of 1972);

“the Act of 1996” means the Finance Act, 1996 (No. 9 of 1996).

(2) That the rate of value-added tax on the supply of livestock and live greyhounds and the hire of horses be increased from 2.8 per cent. to 3.3 per cent. of the taxable amount or value of such goods and services, and that, accordingly, the Principal Act be amended in subsection (1) (inserted by the Finance Act, 1992 (No. 9 of 1992)) of section 11 by the substitution in paragraph (f) of “3.3 per cent.” for “2.8 per cent.” (inserted by the Act of 1996).

(3) That the rate of flat-rate addition to prices of agricultural produce or agricultural services supplied by unregistered farmers be increased from 2.8 per cent. to 3.3 per cent., and that, accordingly, section 12A (inserted by the Value-Added Tax (Amendment) Act, 1978 (No. 34 of 1978)) of the Principal Act be amended by the substitution in subsection (1) of “3.3 per cent.” for “2.8 per cent.” (inserted by the Act of 1996).

(4) That this Resolution shall have effect as on and from the 1st day of March, 1997.

(5) It is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).

Resolution No. 1 relates to tobacco products. This involves an increase of 7p on a packet of 20 cigarettes and pro rata increases in other tobacco products. It is expected to yield £14.9 million in 1997 and £17.6 million in a full year. The consumer price index effect is estimated at 0.1 per cent. There has been a fair degree of success with the tax stamps programme which is designed to deal with tax evasion in the cigarette area. Consumption of cigarettes on which duty was paid increased by 1 per cent in the last 12 months. A packet of cigarettes is 19p dearer in Northern Ireland than it is here at the moment. As a result of this increase the differential will be 12p.

Resolution No. 2 refers to hydrocarbons. Here the increase in duty on leaded petrol is 2.5p on a litre or 11.5p per gallon. The increase in duty on super unleaded petrol, inclusive of VAT, is 2p per litre or 9p per gallon. The increases in duty on [997] unleaded petrol, inclusive of VAT, amounts to 1.5p or 7p per gallon. The increase in duty on autodiesel, inclusive of VAT, amounts to 1.5p per litre or 7p per gallon.

Dr. O'Hanlon: How much is the increase on ordinary petrol per gallon?

The Taoiseach: The increase for leaded petrol is 2.5p per litre, or 11.5p per gallon.

Dr. O'Hanlon: How much is the increase in duty on super unleaded petrol?

The Taoiseach: The increase in unleaded petrol is 1.5p per litre or 7p per gallon.

Dr. O'Hanlon: How much is the increase in unleaded petrol?

The Taoiseach: The increase in unleaded petrol is 1.5p per litre and the increase in leaded petrol is 2.5p per litre.

Dr. O'Hanlon: How much is that per gallon?

The Taoiseach: That is 11.5p per gallon on leaded and 7p per gallon on unleaded petrol.

An Ceann Comhairle: The Taoiseach should be allowed to make his statement. Members may ask as many questions as they desire after that, up to the appropriate time.

The Taoiseach: Petrol is cheaper here than it is in Northern Ireland. Leaded petrol will be approximately 5p per litre cheaper here after the increase. Unleaded petrol will be 6p per litre cheaper here after the increase. Leaded petrol prices decreased by nearly 15 per cent between 1987 and 1996 in real terms whereas inflation has been about 25 per cent up in real terms in the same period. Unleaded petrol prices here have also decreased by 15 per cent over the same period.

Resolution No. 3 relates to value added tax. This will increase the flat rate of farmers' rebate from 2.8 per cent to 3.3 per cent. This is effectively due to the fact that farm output prices have fallen while input prices have not. The net position of the farmers in terms of the differential between sales and inputs has disimproved and there is a justification for this increase in the VAT rebate. The value added to products has decreased, therefore the value added tax rebate deserves on the formula to be increased. This formula is revised every three years and the revision is substantial on this occasion. The increase in the rebate for farmers is timely and significant. Farmers clearly need some assistance because of falling product prices for many of the principal farm outputs, notably beef but also in milk prices. I am sure Deputies understand the way the rebate works. If they do not I can elaborate. We are talking here about two measures of increase in taxation and one measure of reduction in taxation.

[998]Mr. B. Ahern: The resolution on farming uses a formula that appears every year. Will the Taoiseach indicate in value terms what this would mean to the agricultural community? We know the difficulties being experienced. The additional cuts announced last week will create further difficulties. What does the increase of 3.3 per cent mean and what will it provide by way of refunds based on the position in 1996?

As Minister for Finance I imposed big increases on tobacco products. Will the Taoiseach outline the assessment of what this measure will do in 1997? How will it affect employment and consumption? He stated that it will bring the differential between here and Northern Ireland to 12p or 13p, but that neither the Revenue Commissioners nor the Government consider this will create a great difficulty.

I spent much of my time as Minister for Finance dealing with the stamp system. It is not working. It is difficult to avoid people selling non-stamped cigarettes on the streets. I raised this matter last year and the previous year. It goes on unabated, entailing a huge amount of cigarettes, despite the supposed involvement of drug barons, warehousemen and others. In many parts of the city more cigarettes are sold on the streets than in the shops. I am glad to see that the Taoiseach spent a considerable time yesterday visiting one such local community. His visit was appreciated. Had he walked through the area with me he would have found that cigarettes could be bought cheaply on street corners.

The Taoiseach: One could also buy a few good horses.

Mr. B. Ahern: It demonstrates that the control of horses legislation is not working. Nor are the stamping proposals working. Shops which pay high rates are unable to sell cigarettes because thousands of packets are sold on the streets. No attempt is being made to regulate this. This was not the intention of the Government, of which I was the Minister for Finance, nor of the Revenue Commissioners, who researched the international situation when compiling their proposals.

It may be a matter for the Revenue authorities or the Garda. In the meantime, no serious attempt is being made to control this appalling problem. Vast numbers of people are engaged in the selling of non-stamped cigarettes.

The Taoiseach: If that is the case there must be a dramatic increase in cigarette consumption because stamped cigarette sales have increased by 1 per cent.

Mr. B. Ahern: That is why I challenge the Taoiseach's assertion that there has been a 1 per cent drop in consumption.

The Taoiseach: There has been a 1 per cent increase in consumption.

[999]Mr. B. Ahern: I would not expect the Taoiseach to give his time to this, but he should ask his advisers or Government colleagues to take a walk through one or two streets of my constituency — the Minister of State at the Department of Enterprise and Employment, Deputy Rabbitte, would know them well — and see where dozens of people sell cigarettes.

Do such activities comply with the law? Does it matter? Are we imposing a percentage increase because it does not matter if hundreds of people are engaged in defying the law? This was not the reason, as Minister, I introduced legislation. At the time I had harsh words for some Members on the matter.

I have only had the opportunity to raise this matter under Financial Resolutions in the past few years. It is an appalling situation. Will the Taoiseach outline the views of Revenue on the matter? Can Revenue not get the Garda Síochána to act? Does nobody walk through the main streets of the capital city to know what is going on?

There is major disappointment with the budget outside the House and shock that the expectations which were raised gravely misled the public. Only tiny percentage changes have been made to the taxation position, entailing 1.5 per cent for those in middle income brackets. The Government built up a false expectation of a huge tax package and then spread the package it produced very thinly.

Will the Taoiseach justify the increases of 11.5p for a gallon of leaded petrol, 9p for super unleaded petrol and 7p for leaded petrol and diesel? They filter through to the public and are a charge on transport. Cars are no longer a luxury for the vast majority of people. The increases are penal and are against the spirit of removing the burden of taxation. They may appear lower when expressed in terms of litres, but this cannot disguise the size of the increases in terms of gallons, especially when the high powered cars of today use so much petrol.

My colleagues from the Border areas will express their views on this issue. The Government never appears to listen to anything regarding Border areas, indeed it does not have any Deputies from the region.

Minister of State at the Department of the Taoiseach (Mr. Carey): I represent Border interests.

Mr. B. Ahern: I know the Minister of State tries to represent County Clare well, but people from the Border region are never listened to by the Government while those who attempted to make representations to Members have been ignored. What is the Taoiseach's justification for this and what are his views on the costs to industry which these increases will impose?

The Taoiseach: I am surprised at the Deputy's remarks on tobacco. While I would not claim to [1000] be familiar with the sale of cigarettes, either duty or non-duty paid, there has been a 1 per cent volume increase in cigarette consumption, on which duty has been paid. A very big increase in the sale of non-duty cigarettes, as suggested by the Deputy, would mean that there has been a big increase in cigarette consumption. I do not believe this is happening. Cigarette consumption appears to be stable; perhaps it is not falling as much as one would like but it is stable.

There is good co-operation now between the Revenue and the Garda. A year ago the Deputy would have been right, when this problem was more severe than today and there was not the kind of co-operation there should have been. However, there has been a higher number of seizures of illegally untaxed cigarettes and a higher number of prosecutions. This can be documented. There is a review of the penalties to see if they can be increased and there is also a review as to whether additional powers are necessary to stamp out the problem completely. Perhaps there should be a European Union initiative to deal with the issue of cigarettes on which duty is not paid. That is all I have to say on the matter. We will intensify efforts to deal with the problem but I believe the situation is improving.

With regard to the value of VAT refunds to farmers, in 1996, on the basis of the existing rate of refunds — 2.8 per cent — the amount of VAT paid by unregistered farmers was £107.51 million on total sales of goods worth £2.8 billion. The increase in the rate from 2.8 to 3.3 per cent will have a proportionate effect in increasing the amount of the refunds. A figure for the total amount of the refunds which will result from such action is not available but I will endeavour to provide it to the Deputy later in the debate. However, a substantial sum of money will have been paid to unregistered farmers off a VAT bill of approximately £107 million to £110 million. Therefore, that will be substantially reduced.

The Deputy also raised the issue of hydrocarbons. I am not altogether convinced by his concerns regarding the Border areas because the price of petrol is currently cheaper in the Republic than in Northern Ireland.

Mr. D. Ahern: Not by 11p.

The Taoiseach: Therefore, the Deputy's concerns are not valid.

An Ceann Comhairle: In order to utilise time effectively, I remind Members that a question must be put in respect of Financial Resolutions Nos. 1, 2 and 3 at 9 p.m. Therefore, brevity might be the keynote of our proceedings.

Mr. M. McDowell: I support the increase in the duty on cigarettes because I recently produced an alternative budget which suggested a more stringent increase. Therefore, I will not make an idiot of myself by stating I now oppose such an increase.

[1001] I agree with Deputy Ahern because during the first week of the 1989 general election campaign the then Taoiseach, Mr. Charles Haughey, stated he never realised that health was an issue. This shows how one can become cut off from ordinary people. If the Taoiseach visited the pedestrianised areas of north inner city Dublin to which Deputy Bertie Ahern referred, he would see droves of people selling illegal cigarettes. The reason they are engaged in this activity is that a major market for such cigarettes exists and these people are not wasting their time. I am worried not merely about the loss of revenue to the Exchequer but about the black market that is being created. These markets are not dominated by the Sisters of Charity but serious black marketeers. The way such people protect their patch or enforce their rights in these markets is to break the legs, or worse, of their competitors.

There is ample evidence that trading in cigarettes on which duty has not been paid is the preserve of some well organised crime bosses. I am convinced that it could be stopped rapidly if there was a will to do so. I am not suggesting the introduction of draconian measures but one would have to walk around with a paper bag over one's head to be unaware of the extent of this significant problem. Such illegal trading is a source of crime, it induces people to become involved in crime and extends the influence of criminals. Many of those involved in the actual selling are not, by any stretch of the imagination, significant players in crime. However, they are being induced into pyramids of illegality, at the top of which — the Taoiseach should not fool himself in this regard — are serious players.

I support the change in relation to VAT. It was almost inevitable that the Government would increase petrol prices because, in his budget, Kenneth Clarke, provided the opportunity to do so. I do not believe that is a good enough reason for the increase because, between the various indirect tax changes being made, an inflation rate of 2.2 per cent is provided for in next year's Estimates which is too high. Tourism, the creation of employment and inflation rates should have been given the benefit of the doubt in this regard and we should have organised our affairs to avoid the increase in petrol tax. I agree with the Taoiseach as far as VAT and petrol are concerned but I disagree with him as regards cigarettes.

Mr. D. Ahern: With regard to tobacco and cigarettes, does the Taoiseach not accept that a Government will eventually find it is at the point of diminishing returns? Many people earn their living from the manufacture of tobacco products. The P.J. Carrolls factory in my home town has borne the brunt of problems relating to increases in excise duty on cigarettes in the past. I accept the arguments that people should not smoke. However, there must be a better way to educate the public than by merely adding excessive amounts of excise duty each year which ultimately [1002] leads to the loss of jobs, as was the case at P.J. Carrolls in Dundalk.

I agree with my party Leader in respect of the illegal trade in cigarettes. The fact that people are involved in selling cigarettes on which duty has not been paid means that such a trade exists. It is acknowledged that, for some unknown reason, there has been a huge increase in the consumption of cigarettes among young females. The Government should attempt to curtail the illegal trade which is obviously where some of the major problems exist.

With regard to petrol, the Minister of State recently referred to “break for the border” which represents the height of the knowledge of this Government regarding the problems in Border areas. Deputy Carey was appointed a token Minister of State with responsibility for the Border areas because the Government, in appointing Ministers and Ministers of State, decided not to appoint anyone from the Border region. What chance is there for Border areas as far as input at the Cabinet table is concerned? It is indicative of the Taoiseach's lack of knowledge regarding the illegal trade on some streets in Deputy Bertie Ahern's constituency the he believes such a trade does not exist.

The Taoiseach: I did not say it did not exist. I stated that the problem is less severe than it was last year.

Mr. D. Ahern: Anyone with experience of the problem would inform the Taoiseach otherwise.

The differential in the price of petrol sold north and south of the Border in favour of stations in the Republic has been minuscule. Due to higher petrol prices in the South in the past, stations on the southern side of the Border had to compete with their counterparts on the northern side. Likewise, in recent years, northern stations have had to compete with their southern counterparts. The figures provided by Department of Finance officials may not be those which obtain in the Border areas. This budget has obliterated the differential in favour of the southern side of the Border and helped petrol stations in the North. The overall returns from excise duties on petrol would be in the region of £40 million. Instead of giving with one hand and taking with the other, why did the Government not reduce the overall pay out through tax cuts by £40 million, instead of raising it through the petrol increases? This sleight of hand will affect the economy of the Border constituencies and will add hidden increased costs to haulage prices across the country. It is a detrimental act. The Government had the opportunity not to touch petrol prices but unfortunately it did the opposite. This must be because of the lack of knowledge of the Border area and lack of input by someone from that region.

The unemployment in the Taoiseach's county town of Navan — at least I think it is the county town——

[1003]The Taoiseach: The Deputy is displaying a lack of knowledge of his neighbouring county, while complaining about other people's lack of knowledge.

Mr. Rabbitte: Clonee is the county town.

Mr. D. Ahern: LMFM helps me. While 1,900 people are unemployed in Navan, about 4,500 are unemployed in Dundalk, a similar number in Drogheda, and 1,500 in Ardee.

Mr. McGahon: The same was true when Fianna Fáil was in Government.

Mr. D. Ahern: Deputy McGahon was in trouble when he intervened earlier so he should keep quiet. While unemployment seems to be coming down nationally that is not happening in Louth and this budget hinders rather than helps the county, particularly the town of Dundalk. The Taoiseach may feel he has helped other areas but he has hindered the Border constituencies and I say “shame on him”. No one has taken cognisance of the fact that these towns along the Border have suffered more than most and will suffer as a result of this budget. I defy Deputies on the other side who have knowledge of what I am saying to contradict me. The Government must acknowledge that an extra 11.5 pence on a gallon of petrol will cause cars to go North again.

The Taoiseach: No.

Mr. D. Ahern: It will — the Taoiseach does not know the position on the ground. This increase is far bigger than the current differential in favour of southern petrol stations. As of tonight, many people who formerly bought their petrol on the southern side of the Border will go northwards. Not only that, those who formerly came in their droves from the North to get petrol in my town will stop doing so. Fine Gael and the other Government parties will pay the price for that, whether they like it or not. When times were hard there may have been a reason for increasing the price of a gallon of petrol, but there is none at this point when the Minister, Deputy Quinn, says the country is awash with money. The Government has done a disservice to the economy of County Louth and the Border area.

Mr. McGahon: I rise to correct Deputy Ahern. While what he said about the petrol price increase is largely true I feel he is exaggerating. In the seven years when Fianna Fáil was in Government, sizeable increases were delivered.

Dr. O'Hanlon: No, they were not.

Mr. McGahon: They were.

Mr. D. Ahern: They were not of this size.

Mr. McGahon: The Border area has always had to suffer unjustified increases. I have been here [1004] for 15 years and have criticised my Government when it was deserved but I have never heard Deputy Ahern criticise his Government.

Mr. D. Ahern: I have criticised cigarette price increases over the years. I will show the Deputy the record.

Mr. McGahon: If he did make a criticism it was ambivalent or wishy-washy.

Mr. Browne: (Carlow-Kilkenny): Did he criticise the Progressive Democrats?

Mr. McGahon: I agree with Deputy Ahern that 11 pence on a gallon of petrol is a large increase but I do not believe it is large enough to bring back the bad times when there was a difference of between £1 and £1.20 between prices North and South and a cavalcade of cars, even some from County Meath, crossed the Border. Those days are gone forever and an increase of ten or 11 pence will not bring them back.

Mr. D. Ahern: Maybe the Deputy will take the Taoiseach for a spin when he comes down like the Holy Ghost.

Mr. McGahon: In those dark times people drove into petrol stations to buy half a crown's worth of petrol to take them to the Promised Land.

I congratulate my cousin, the Minister for Finance, for listening to my entreaties on behalf of the workers in Carrolls and increasing the price of 20 cigarettes by only seven pence. Deputy Ahern's Government never matched that. It is a realistic increase and the industry accepts it. However, more attention should be given to the importation of illegal cigarettes. This growth industry is taking place under the noses of the Garda Síochána, the Revenue Commissioners and the Government. Cigarettes are being openly sold on every street in Dublin, especially Henry Street. Why has this illegal industry not been closed down? There is a connection between that practice and the selling of drugs and the Revenue should turn its attention to that illicit trade.

I repeat my annual criticism of the hypocrisy of all Governments who turn a blind eye to the drink trade and home in on the cigarette industry. I do not exhort anyone to smoke cigarettes because it is a definite health hazard but in every country more people die from the excesses of alcohol. Drink is the most widely used drug in the world and kills more people than heroin, cocaine or any other hard drug. Alcohol is responsible for more deaths and related illnesses than any other factor and the cigarette industry pales into insignificance beside it.

The glorification of drink is a problem in this country. We are awash with drink and drinkrelated problems. Children of 12 years of age are drinking and seductive advertising on television is at the root of the problem. When young children are bombarded with advertisements every [1005] ten minutes which extol the goodness of Guinness and other drinks, is it any wonder that the number of children born out of wedlock is rising? Is it any wonder that more and more people are falling prey to the ravages of alcohol?

A survey in yesterday's Irish Independent on wife beating in Dundalk showed an alarming number of victims. I was present when President Robinson opened a residence for battered wives on Monday and there were hundreds of people waiting to get into it. Those battered wives were not beaten by people who have problems with cigarettes but by people with alcohol related problems. Yet, we turn a blind eye to alcohol and the damage it causes. I do not advocate prohibition, rather a rein on the sale of alcohol because most social problems may be identified with drink.

I commend the Government for recognising the annual extra burden placed on the cigarette industry and giving it some relief. The Taoiseach should focus on the illegal trade in cigarettes which is carried out openly in Dublin and as a result of which the Revenue Commissioners have lost millions of pounds. If our cigarette industry is to continue the Government must support the workers in this legitimate industry which pays its dues to the State.

Dr. O'Hanlon: I support the increase in the price of cigarettes. The Taoiseach said he did not know why those of us from the Border region were complaining about the increase in the price of petrol. Not alone does the Taoiseach not know why but there is nobody from the Border region at Cabinet to tell him.

The Taoiseach: The Deputy is talking through his hat.

Dr. O'Hanlon: I am not. Deputy McGahon referred to the bad times when people crossed the Border in droves to buy petrol in the North. That was the result of a decision by a Fine Gael Government, in which the Taoiseach was a Minister, to increase the price of petrol. This is the second year in succession that the price of petrol has been increased. Fianna Fáil Governments from 1987 resisted the temptation to increase the price of petrol because the economy of the Border region is sensitive to such increases. At present, many people from the North are crossing the Border to fill their cars with petrol. When they come across the Border they may stay for a few hours and spend money and this contributes to the economy of the region.

The Government has no commitment to the Border region — all it pays is lip service to it. I tabled a parliamentary question today asking the number of jobs from overseas firms created by IDA Ireland in the country in 1996 and the number of those in Counties Cavan and Monaghan. Out of 14,081 jobs created, 22 were in County Cavan and 25 in County Monaghan. Taking into account the loss of jobs in overseas firms there is [1006] a net loss of 64 jobs in my constituency. That is an indication of a Government's lack of commitment.

This increase will have serious consequences for competitiveness in the Border region because higher transport costs will lead to an increase in the cost of all goods. Last week the Minister for the Environment decided that motorists should pay for the provision of water in urban areas. This Government is anti-motorist, anti-rural — people living in rural areas still have to pay for their water — and anti-Border. The Taoiseach must address this matter urgently. It is a major mistake to increase the price of petrol by 11.5p per gallon.

Dr. McDaid: As a general observation on the budget day arrangements, it is unfair on the Opposition spokespersons, although the budget is well leaked, to have to speak on it at such short notice. There should be a short recess so that the Opposition spokespersons may properly study the speech.

I support my colleagues' comments on the increase in the price of petrol. There would seem to be a lack of knowledge about the Border area. The Taoiseach's officials may be right that one can buy unleaded petrol at 64p or 65p per litre in mid-Ulster. However, along the Derry Border one would pay 59.9p per litre while in Buncrana the price is 60.3p tonight and it will rise to 61.8p tomorrow morning. Northern Ireland is being considered as a homogenous area and proper account is not being taken of the corridor along the Border where the competitiveness must be observed to understand the particular problems of the Border region.

The small petrol stations in the Border region were not selling much petrol until about four years ago. There had been little or no motor trade given the level of foreign imports and they returned to petrol retailing in a competitive manner. The Revenue Commissioners seem to be complacent about the Border petrol stations. Is it the case that 70 per cent of the retail price goes to the Revenue Commissioners? If that is so, the small Border stations contribute some £300,000 to £500,000. A mistake is being made in relation to this small corridor along the Border. The Taoiseach will be aware that three hypermarkets are scheduled to be built in Northern Ireland — in Derry, Newry and Belfast — in the next two years and they will automatically undercut the price of petrol. This has not been taken into consideration.

The unequal balance in the Border region raises the issue of IFI and EU funding. When I asked why we get 20 per cent of EU funds while the North gets 80 per cent, and why we get 25 per cent of IFI funds while the North gets 75 per cent, I was told the figures are based on populations. If the Border region is to be put under further pressure it will not be long before the division of funds is 90 per cent to 10 per cent. The small towns in the corridor along the Border had been [1007] doing reasonably well and the Taoiseach and his officials should be aware of the area's problems.

Mr. O'Dea: My colleagues from the Border region have spoken eloquently about the competitive disadvantage in which petrol retailers from that region have been placed in recent times. That imbalance was redressed to some extent over the past 12 months but the competitive advantage which ensued as a result of various developments elsewhere has been obliterated in one fell swoop by a very substantial increase in duty on petrol. This is simply a revenue raising measure. It will erode the concessions outlined in other elements of the budget, is a substantial cost on business and will effect job creation. It flies in the face of other taxation measures in this budget which were expressly included to encourage job creation. It shows the lack of strategy and coherence which underlies this rickety edifice.

The Taoiseach and the Minister for Finance advanced health considerations as one of the reasons for the increase in tobacco duty. I am sick and tired of health being trotted out as an alibi for increases in tobacco duty.

The Taoiseach: I did not. The Deputy was not listening.

Mr. O'Dea: If the Government was seriously worried about the impact of tobacco consumption on health, it could increase duty to such an extent that consumption could be wiped out or it could be banned as other substances are banned. This measure is directed at a handy target to gain revenue.

I do not want to comment on the morality of it but there has been discussion about the extent of the illegal tobacco trade in Dublin. I will give the Taoiseach figures to give him a flavour of the seriousness of the situation because, as Deputy McDowell said, some of the most nefarious people here are involved in the illegal cigarette trade.

The Taoiseach should know that the proceeds from this trade are funding other operations — drug dealing and its various ancillary activities, which includes the shooting of journalists. Last year 3.5 million smuggled cigarettes valued at £530,000 were seized on the streets of Dublin which resulted in a loss to the Exchequer of £400,000 while 180 people were detected with illegal cigarettes in their possession. How many convictions have there been? There have been 17 convictions for smuggling and 11 for selling illegal cigarettes. The fines imposed totalled £15,500. How seriously is the law being enforced in this area? Will the Taoiseach reflect on those figures and bring them to the attention of the Revenue Commissioners and the Department of Justice bearing in mind that these activities are funding further activities of some of the most reprehensible people in this country?

I welcome the increase in the flat rate VAT [1008] refund for unregistered farmers from 2.8 per cent to 3.3 per cent to compensate for the fact they are not registered for VAT but pay it on inputs. This is only one small glimmer of light in the gloom which surrounds the agriculture industry; an industry ridden by crisis and saddled with a Minister for Agriculture in whom nobody has the slightest degree of confidence. I make those points to illustrate to the Taoiseach the extent to which some of the resolutions he proposes fly in the face of other measures in the budget and will achieve results which directly contradict what he is trying to achieve through other measures. That indicates the budget is a “mixum gatherum” prepared by three parties, each getting what it could out of it as there is no coherent strategy or direction in it. The benefits and allowances are spread far too widely and it will achieve nothing.

Mr. Leonard: It would be remiss of us if we did not object strongly to the increase in the price of petrol and diesel. In 1983 the price increase of 16p per gallon devastated the Border region and it has not fully recovered since. I remember bringing deputations to the then Minister for Finance, Deputy Dukes, and his reply was that one cannot legislate for a region. It is nonsense to talk about petrol being cheaper in the North. The price of petrol is practically similar either side of the Border. There is practically no variation in price. It is ridiculous to add 11p to the price of a gallon of petrol and talk about breaks for Border areas.

Did the Taoiseach get the report from his Minister of State on funding for Border regions? Did he examine the returns from Forbairt and the IDA which show an 11 per cent reduction in the number of jobs in the Border region while there is a 16 per cent increase in the east? From January 1995 to July 1996 in County Monaghan, 452 additional jobs were created while the Taoiseach said there were 24,000 extra people at work. There was a 12 per cent increase in jobs in Monaghan and a 6 per cent increase in Cavan. The proof of success in any economy is jobs. The Taoiseach on this occasion should have resisted such an increase. The attitude in Fine Gael and the Labour Party seems to be it does not seem to make much difference in the peripheral regions because they will come along all right.

I do not object to an increase in tobacco duty. I was at health board meetings attended by a number of specialists on throat cancer etc. Having listened to them, I would feel like a hypocrite if I was to complain about the increase on tobacco products. However, I strenuously object to the increase in the price of petrol and diesel.

Mr. N. Ahern: I do not smoke and I do not have a cigarette factory in my constituency. Normally I would not give a damn whether 7p or 17p was added to the price of cigarettes but I am concerned about this in terms of the illegal cigarette trade which is a growing business. It may be confined to certain parts of Dublin but it has gained [1009] a sizeable portion of the cigarette market. While this part of the budget is designed to raise revenue, the big winners are those involved in organised crime because their profit margin is being increased. I want a far greater crackdown on these people rather than adding to their profits.

The Taoiseach said sales increased by 1 per cent last year. Does he have figures for the past three or four years? The market is not declining. If the economy grows by 5 per cent, perhaps people spend 5 per cent more on drink, clothing, furniture and tobacco but for those involved in illegal trade it is big business. Some months ago someone told me that they walked down Henry Street and Mary Street from O'Connell Street to Capel Street and saw 38 people selling tobacco. I agree with the Taoiseach that lately sellers are not as obvious on some city centre streets as they were a year ago. There has been an attempt by the Garda to move them along, although some threats have been made against gardaí for doing so. However, as someone else said, they have not gone away. They may have gone from Talbot Street or Henry Street but they are now out in the housing estates. I am sure the Minister of State, Deputy Rabbitte could tell us about that.

We once used to get milk delivered to houses in Dublin every day but now cigarettes are being delivered to the door, albeit by courteous people in certain housing estates in Dublin. That is a fact. If overall sales of cigarettes are going up I would be very surprised.

This issue is discussed here every year and there is talk of stamping but the rules do not seem to be working. Someone mentioned a strange court case the other day involving a judge's ruling which may throw out existing stamping regulations. Perhaps we could have some information on that and the repercussions.

The budget is about raising revenue and the image being projected is that we have all done well today. However, there is no point in talking about trying to crack down on crime for the rest of the year when big organised crime has to get its cut as well. They will be big winners and that is very wrong. There must be an extra effort to crack down on crime because big money is being made by criminals and the State is being defrauded.

An additional 1.5p to 2.5p on petrol looks small but it is a different ball game when the extra cost is calculated per gallon. Even the Minister for Finance said there will be an extra 0.2 per cent on the cost of living index which is basically 10 per cent of the forecast increase for the year. That puts it in another context. It is a sizeable increase in the cost of living but obviously it is bringing in money which, as usual, is needed.

Mr. Power: I sat here for most of the day listening to the Minister for Finance and I wondered where all this money had gone to. He told us how well the country is doing. Many people would be [1010] furious about what the Minister was saying if they could have listened to the entire speech. He painted a picture saying people have never been as well off in their lives. The truth is that while the economy is on an upward turn and we are experiencing a boom, the benefits of that boom are being enjoyed by a small minority. Many people still find it extremely difficult to live from day to day. Many people are still paying for the things they bought at Christmas.

In his speech the Minister said the country was a tremendous attraction for American investment. There are 424 American firms operating in the 26 counties and 16 of them are operating in the Border counties. That gives one an idea of the deprivation and lack of balance that exists. I am not pointing the finger just at this Government but we cannot allow that imbalance to continue. Foreign investment is important and we are happy to have it in the country. Kildare has been lucky to attract some of the major players but in the interests of the country it is important to have a good spread in that investment. Tough decisions will have to be made to ensure the proper balance is struck.

I have heard Ministers before, including some from my own party when they have had to face the music, making comments on smoking similar to those of the Minister for Finance earlier today. I suppose there are only a few areas where one can look for the extra few pounds necessary to pay for the goodies on budget day, and today was no exception. The Minister decided to increase the price of cigarettes and he mentioned health and environmental reasons. I have said before in the House that if a Government was serious about the health of our nation it would ban cigarette advertising. There is no knowing the cost of smoking financially, medically and environmentally. The tobacco industry is one of the most powerful in the world. Its customers are dying every day so they have to recruit new ones to fill the vacuum. Hence one has these sexy advertisements aimed at young people to make it look good and cool to smoke. We allow this to continue despite the fact that we know the damage it is doing to our people.

Mr. McGahon: There is no cigarette advertising on Irish television, just drink.

Mr. Power: I am talking about advertising in general. We will have to face the music and if we are serious about health, as we must be, we will have to impose a ban on cigarette advertising.

Mr. McGahon: It is there.

Mr. Kirk: When one comes into the debate at this stage one faces the problem of repetition. When the budget is presented to the House there is a certain inevitability that public representatives from the Border counties will assess the impact of increases, particularly in the cost of cigarettes and fuel, and their potential for trade [1011] distortion. The relationship between the price of fuel North and South has levelled out in comparison to the great disparity that existed some years ago when we had serious trade distortions. Significant profits were made following a rush of trade northwards because the price of petrol in the North was much cheaper than here.

Today's provision for increases must be seen in a broader context than the impact it will have in Border counties. We are talking about increased freight charges, increased motoring costs for those going to work, and increased costs for a whole range of services provided daily in the economy.

Petrol and diesel are essential ingredients in people's daily lives. Motor power has become an integral part of our lives and we cannot get by without it. The number of people who go to work on foot are few and far between. Within the past ten days a spokesperson for one of the major insurance companies said we could expect an increase of up to 10 per cent in motor insurance costs over the next 12 months. It is appropriate that the Minister of State with responsibility for the insurance industry, Deputy Rabbitte, is in the House.

There has been a dismal failure to tackle the underlying causes of escalating insurance costs. When young drivers seek premium quotations, the insurance companies do not want to see them. Young people in their early twenties have to go to work. They need driving licences and car insurance but they have to pay enormous sums for such cover. It is an area we have failed dismally to tackle and it needs to be tackled urgently. The increase we are talking about must be seen in that context.

Within the past ten days the Government decided on an alternative system for financing local authorities. It seems that motor taxation will be its principal source of revenue. It is not unreasonable to assume that the anticipated demand by local authorities for more revenue will lead to an increase in motor taxation. The motorists have had a bad fortnight. Deputy Leonard said that people in rural areas must pay increased water charges. They will now have to pay the increases in motor taxation and insurance premiums — we have not tackled the problems in the insurance industry — as a result of this budget.

I agree with the points made by Deputy Dermot Ahern and Deputy McGahon about this further imposition on the tobacco and cigarette industry, although it is no longer popular to defend that sector. It was an important industry in the Louth constituency because it was the backbone of the local economy. Although the numbers employed in it have declined, this provision will accelerate its demise.

Mr. O'Malley: I have no objection to Financial Resolutions Nos. 1 and 3 but I strongly object to Financial Resolution No. 2 which deals with [1012] motor fuel. In the age of global markets and with the imminence of economic and monetary union, it is more vital than ever that we maintain and improve the competitiveness of Irish industry. Private sector businesses, particularly in the exporting sector, generate the wealth which is needed to create jobs, to sustain our public services and to pay for improvements in our social welfare system. This budget does little to promote the competitiveness of Irish industry but the increase in duty on petrol and diesel is a particularly retrograde and unnecessary step. It imposes increased costs on virtually every firm in the country and makes it more expensive for Irish companies to do business.

It also imposes extra costs on private motorists. As far as they are concerned, what the Minister is giving with one hand he is taking away with the other. The same holds true for public transport users. An increase in fuel prices must inevitably translate into an increase in fares. At a time of record tax buoyancy, it seems incredible that the Minister for Finance should seek to impose an increase in indirect taxation in this vital and sensitive area which will have such an impact on competitiveness. The additional costs arising from this not alone affect our exporters but they also affect many companies that are competing with companies in Britain and elsewhere which are exporting into this country. The unnecessary raising of this tax must be condemned.

I ask the Taoiseach how he justifies this continuous imposition of tax increases every year on hydrocarbons, particularly petrol, diesel and heavy fuel oil which are essential to our competitiveness, when his Government refuses to increase taxation on drink. Is it because of the strength of the publican lobby? The publicans introduced their own budget in early December, which is a convenient time to do it. Strangely, every publican agreed on the same day at the same time to increase the price of drink by the same amount. I have no doubt it was just coincidence that 11,000 publicans had the same thought at the same hour on the same day and that it was not collusion or anything of that nature. It was not an illegal anti-competitive practice, as I am sure the Minister of State at the Department of Enterprise and Employment, Deputy Rabbitte, will assure the Taoiseach. Why were they allowed to introduce their own budget to pre-empt what might happen here tonight? Is that why it is not happening here tonight and why increases have been imposed on something which has a great effect on the competitiveness of Irish industry and, therefore, on employment? An increase in the excise duty on drink, particularly on spirits, has no effect on the competitiveness of Irish industry. It is ignored for some reason about which we can speculate.

Mr. McGahon: For health reasons.

Mr. O'Malley: I am not opposing Financial Resolution No. 1 because, apart from the fiscal [1013] benefits, there are valid reasons the duty on tobacco should be increased. However, they are equally valid as far as the duty on drink is concerned, particularly the duty on spirits. Nevertheless, drink is exempt every year under this Government. As far as tobacco is concerned, it is a matter of regret to me and to several Deputies who have spoken here tonight that we seem to have three markets in tobacco products: the official duty paid one, the official duty free one and the unofficial duty free one where the price level of vast numbers of cigarettes sold in this country is between the two. People get the wrong idea about the significance of duty because when they buy duty free tobacco products in official Aer Rianta duty free outlets, the profit margin is so enormous they think the duty is not as high as it is. The profit margin at duty free level in Aer Rianta shops in airports is disgracefully high; it is approximately 300 per cent. They can afford to profiteer like that because of the abnormally high level of duty.

It is regrettable that diesel and petrol are targeted and other things are ignored when it comes to increasing excise duty. I deplore both from a competitive and a health point of view the Government's choice of priorities. It is wrong and anyone who looks at the matter objectively knows it is wrong and damaging. The Revenue Commissioners and customs operate fairly and equitably. I cannot understand why they do not enforce the law against those who sell duty free products, particularly tobacco products. The law is not being enforced and it is widely known that it is flagrantly disregarded. I have considerable faith in the Revenue Commissioners, having pursued one area where a particular Department failed in its responsibility for certain activities while the Revenue Commissioners did not. This is why it disappoints me that duty free tobacco products are illegally sold so widely in this country.

The Government should rethink this matter. There are other ways of raising excise other than by making our already uncompetitive situation more so. One only has to look at personal taxation on both sides of the Border to realise that. The only reason we have retained thousands of jobs on this side of the Border is people are afraid to move North. If they were not afraid they would have left in their droves. Who would manufacture in Dundalk, with the tax rates imposed on their employees, if they could manufacture in Newry? If the IRA had sense, we could have a different situation to the one we have now. Advantage is being taken of that, particularly on hydrocarbons, which is one of the most vital areas where competitiveness arises.

Cecilia Keaveney: I also object to the price increases in petrol and diesel. I may repeat what has been said, especially in the contributions of other Deputies from Border counties, but it cannot be said often enough. People do not appreciate how we feel or understand what it is like to [1014] live close to the Border and the difficulties which arise. We are often told we are peripheral. Petrol stations in the Border areas have gone out of business because they were less competitive than those in Northern Ireland. Recently, they set up business again in places on the Border, such as Lifford or Muff. They are not only nice to look at, but also give employment. However, they are under threat from the increases in the budget.

The Taoiseach has been in Donegal and knows how far away it is from here. A car is not a luxury but is essential. I do not have to go beyond my home town to see this. The local ESB shop has been closed and it is necessary to travel a long distance to pay bills. People in the Moville area have to travel to court by car as the court cannot be accommodated there. What commitment is the Taoiseach giving to rural Ireland, especially to those in Donegal?

We need employment but this budget will not encourage its creation. Every big business in Donegal incurs high travel costs as it must travel long distances. Perhaps we would rely less on roads if we had pier development. We are looking to employment. Reported increases in employment made a big splash. However, in Inishowen, employment has decreased and unemployment has increased. Car owners who go to work are now being penalised, both those who are working in the county and those who are crossing the Border. What was in the budget today for the cross-Border worker? One of the biggest employers in my area is the fishing industry. Did we get big grants for renewing the fleet in this budget? No, we got fuel increases.

Donegal needs positive discrimination to maintain job creation, basic day-to-day living, existing employment and current competitiveness. It does not need the petrol increases of today, the threatened car tax increases promised down the line and the further increases already announced by insurance companies. If we do not get positive discrimination our livelihoods and businesses will be not only threatened but crippled. I ask the Taoiseach to rethink the increases in diesel and petrol prices.

Mr. Cullen: I remember this night last year when the same argument was made on hydrocarbons and petrol. We spoke about a 10p per gallon increase on petrol and we are, unfortunately, doing so again tonight. I know the Taoiseach may not like to listen to the argument but the Minister of State at the Department of Enterprise and Employment, Deputy Rabbitte, knows the one worry we have is our ability to maintain competitiveness within our economy. Whether the Government likes it or not, we have a structural problem, unlike all our EU partners, in that we are an island. We will always have a problem with transport costs in delivering our goods to the continent. In every report that has been written, it has been singled out as a cost which does not have to be borne on the goods of other countries in the EU. I cannot understand [1015] why we create our own artificial costs by imposing further penalties on the transport sector. It does not make sense.

It is not good enough for the Taoiseach to say that the differential between us and the UK is closer than it was because our transport costs need to be substantially lower than those of our competitors in Europe. It is not good enough to say that just because the margin of difference has declined in recent years we should clap ourselves on the back. Any company exporting from this country will speak easily and quickly about the costs that transport imposes on their competitiveness in the marketplace. Ireland does not have the road network which exists in many other European countries. I am glad to say our road network is improving but the cost of moving goods even within the island is substantially higher than in most EU countries because their transport systems are far more advanced than ours.

I wish to refer to the drinks industry. I cannot understand why the Government did not seize the opportunity to do something about the socalled soft alcoholic drinks available in the marketplace, hooch and hotshots. These drinks are not aimed at the mature drinker but at creating a new younger market of 15, 16 and 17 year olds. The alcoholic content of those drinks is substantially higher than most of the ordinary ales and beers. My view, which is probably extreme, is that they should not be on sale and should not be allowed in the marketplace.

The Taoiseach: Why? That would include bar mixers as well.

Mr. Cullen: The opportunity could have been used to impose a severe penalty and make these drinks expensive and out of the reach of young people, many of whom are not earning a penny. I feel strongly about this. The Government, the Minister of State, Deputy Rabbitte, and most Deputies would be aware of the problems that are beginning to emerge because of the availability of those products and the way they are targeted.

I cannot complain too much about the tobacco industry, being one of the few heavy smokers, non-tipped, left in this House. I sincerely hope the relationship between the Garda and the Revenue Commissioners can be improved in respect of the detection of non-duty products available in the market because, if what I am hearing is true — that the people who sell these products in the Dublin area have a real grip — it is inevitable they will flood the cities of Waterford, Limerick, Cork and Galway with their merchandise. Once the problem moves out of Dublin it will become unstoppable. I hope the right message will go out loud and clear from this House and that we can kill this market before it reaches a profitable level.

[1016]Mr. Connolly: I presume lubricating oil is included in the increases in petrol and diesel oil.

The Taoiseach: That is not so.

Mr. Connolly: Average costings will be increased by 10 per cent and those supplying goods to the various outlets will have to pass on the charges. Anyone who thinks otherwise is foolish. If one is in the business of supplying diesel oil and petrol one has to pass on the price increase. That is the rule of thumb in business. In this case transport costs will be increased by approximately 10 per cent and there will be a 6 per cent increase in insurance costs because of the high cost of claims. In other words, manufacturing and transportation costs will be substantially increased. I am concerned because the increased costs will be passed on to the consumer. Let there be no doubt about that, there will be substantial increases in transport costs which will be passed on. It will affect employers and employees. In my constituency many people travel up to 30 miles to and from their place of employment and they will incur substantial costs. Even allowing for the tax benefits they will receive there will be a clawback at the other end. My main concern is that transportation costs will be added to the cost of the goods.

I hope the Revenue Commissioners will have tighter controls over the tobacco industry because we are led to believe that tobacco and other products of that nature are sold illegally on the market.

Mr. Dempsey: It may not be politically correct to query the almost annual price increase in tobacco products. There is no cigarette factory in my constituency. We have had price increases in tobacco products every year since I came here, some savage and some not so bad. The conventional line of the Department and the Minister for Finance was that it was for health reasons and not to raise revenue. The Government always made the case that it was looking after the health of the nation and that that was its motivation in increasing the duty. To a certain extent I take that with a grain of salt. The statistics for the past eight or ten years indicate that if the policy was to curtail the consumption of cigarettes and tobacco products generally it has failed miserably. It has succeeded in enriching the State coffers but there is evidence to suggest an ever increasing consumption of cigarettes and tobacco products; unfortunately the evidence shows the increased consumption is greatest among younger people. When we increase the cost of cigarettes we give ourselves a pat on the back in the hope that the health of the nation will be improved. We have allowed that to blind us to the fact that that policy alone, as a means of curtailing the consumption of tobacco products, has failed miserably and it is about time we examined it further.

I wish to refer to Financial Resolution No. 2 which concerns price increases of petrol and [1017] diesel. I will not repeat what has been said by Deputies Keaveney and McDaid in relation to the effect this will have on Border counties. This motion is another example of the anti-motorist bias of the Government which we have seen on a number of occasions. If returned to power this Government will impose tolls on the C ring road and on the Lee tunnel. That is clear because it voted against the motion we tabled. This resolution will take £37 million out of the pockets of motorists, a sector of the community which already pays £1.7 billion to the Exchequer in taxes. Water charges have been abolished but, despite the impression being given by Deputies opposite, they will have to be paid for. This increase is the first instalment in the payment for the abolition of water charges. Taxpayers will pay a second instalment of £78 million next year when motor tax will be increased by 3 per cent and a further instalment of £156 the following year. They will have to pay a bill of £270 million over the next two years. There is always one measure in a budget which rebounds badly on the Government and I predict that motorists will not accept this increase.

The Taoiseach: If the Government is anti-motorist, why are there more new cars on the road under this Government than under any previous Government? There is every sign that more new cars are being sold under this Government than under any previous Government.

(Interruptions.)

The Taoiseach: The reason is that the Government is in favour of people spending their money in a way which improves their lives. The Government has also been able to deal successfully with the problems of traffic which were created in the first instance because of the increased number of people who were in a position under this Government to buy a car. These traffic problems have now been overcome because the Government, unlike the Deputies opposite, is pro motorists.

Mr. Dempsey: I am glad the Taoiseach took our advice of 4 November.

The Taoiseach: One Opposition Deputy said the Government was anti-Dublin, while others said we were anti-rural, anti-south and anti-north. Some Deputies are wont to say something like that.

Mr. Dempsey: The electorate will tell the Taoiseach the position.

The Taoiseach: The debate is perhaps not as serious in the minds of some speakers as it ought to be.

I wish to reply to the substantial points made during the debate. The first concerns the street selling and smuggling of cigarettes. Deputy O'Dea raised questions on this matter to which I would like to reply. During the past 12 months [1018] there has been a very substantial increase in the level of enforcement of the law on illegal cigarette selling. This was acknowledged by Deputy Ahern, the only Deputy to do so; others tried to pretend that nothing had happened during the past year. I would like to give evidence of this increased enforcement.

In 1995 there were only five proceedings instituted for cigarette smuggling, while in 1996 50 prosecutions were instituted for the same offence. Of the 50 prosecutions instituted, 17 resulted in convictions, 14 were adjourned and 24 are awaiting hearing. This explains the statistics quoted by Deputy O'Dea who seemed to suggest that 50 proceedings were instituted and there were only 17 convictions.

Mr. O'Dea: What penalties were imposed?

The Taoiseach: The rest of the cases have either been adjourned or are awaiting hearing.

On the question of the street selling of cigarettes, in 1995 no proceedings were instituted whereas in 1996 81 proceedings were instituted. To date there have been 11 convictions, three cases have been adjourned and 67 cases are awaiting hearing.

Mr. O'Dea: The tip of the iceberg.

The Taoiseach: The bulk of the cases have not yet come to court and, therefore, the statistics quoted by Deputy O'Dea deserve to be qualified.

It is fair to say that this indicates significant action in regard to illegal cigarette selling. The increase of 1 per cent in duty paid cigarette sales over the past 12 months also indicates that people are buying duty paid cigarettes in increased volumes.

A number of Deputies referred to the excise duty on petrol. The excise duties in the UK budget were greater than the excise duties in our budget. The differential in favour of the Republic has been improved as a result of the two budgets rather than disimproved. However, having listened to the Deputies opposite one would not think this was the case.

Mr. Cullen: That was not the argument.

Mr. Dempsey: Has the Taoiseach heard of peripherality?

An Ceann Comhairle: Let us hear the Taoiseach without interruption.

The Taoiseach: Deputy McDaid threw some light on the matter when he referred to the possible misleading nature of comparisons of petrol prices in, say, Portrush and Ballymena with those in Muff or Carrickmacross. He said that the relevant price to quote is the one in the contiguous town on the other side of the Border where a more competitive approach is adopted to petrol sales in order to win custom from this side of the [1019] Border than might apply in Ballymena or Portrush which are distant from the Border. This is true, but the same considerations also apply on this side of the Border. If people can compete in Keady they can also compete in Carrickmacross; if people on the other side of the Border can try to win business then people on this side of the Border can also do so. There is nothing to stop them from doing so, particularly as the differential in duty in this budget combined with the British budget has moved in favour of petrol sellers on this side of the Border. One of the problems may be that because petrol prices were traditionally higher here than north of the Border there was a habit on the other side of the Border of marketing petrol with a view to winning custom from the South. That habit may not have developed to the same degree on this side of the Border.

There are trends in the petrol retailing business [1020] which may be of interest to Deputies. In order to attract people to large shopping centres in some cities and towns operators sell petrol at a very low price with virtually no profit. This is apparently happening in Belfast and it draws people to that area. If it happened in Dublin where the retail sector is much more dynamic than it is in Belfast it could have the net effect of drawing custom away from smaller stations. Many of the remarks made by Deputies have more to do with the problems of smaller petrol stations, regardless of whether they are on the Border, comparative to larger distribution centres.

An Ceann Comhairle: As it is now 9 p.m. I am required to put the following question in accordance with an Order of the Dáil of this day: “That Financial Resolutions Nos. 1, 2 and 3 are hereby agreed to.”

Question put.

The Dáil divided: Tá, 78; Níl, 69.

Tá

Ahearn, Theresa.
Allen, Bernard.
Barrett, Seán.
Bell, Michael.
Bhamjee, Moosajee.
Bhreathnach, Niamh.
Boylan, Andrew.
Bradford, Paul.
Bree, Declan.
Broughan, Thomas.
Browne, John (Carlow-Kilkenny).
Bruton, John.
Bruton, Richard.
Burke, Liam.
Burton, Joan.
Byrne, Eric.
Carey, Donal.
Connaughton, Paul.
Connor, John.
Costello, Joe.
Crawford, Seymour.
Creed, Michael.
Crowley, Frank.
Currie, Austin.
Deasy, Austin.
Deenihan, Jimmy.
Doyle, Avril.
Dukes, Alan.
Durkan, Bernard.
Ferris, Michael.
Finucane, Michael.
Fitzgerald, Brian.
Fitzgerald, Eithne.
Fitzgerald, Frances.
Flaherty, Mary.
Flanagan, Charles.
Gallagher, Pat (Laoighis-Offaly).
Gilmore, Eamon.
Harte, Paddy.

Higgins, Jim.
Higgins, Michael.
Hogan, Philip.
Howlin, Brendan.
Kavanagh, Liam.
Kemmy, Jim.
Kenny, Seán.
Lowry, Michael.
Lynch, Kathleen.
McCormack, Pádraic.
McDowell, Derek.
McGahon, Brendan.
McGinley, Dinny.
McGrath, Paul.
McManus, Liz.
Mitchell, Gay.
Moynihan-Cronin, Breeda.
Mulvihill, John.
Nealon, Ted.
Noonan, Michael (Limerick East).
O'Keeffe, Jim.
O'Shea, Brian.
O'Sullivan, Toddy.
Pattison, Séamus.
Penrose, William.
Rabbitte, Pat.
Ring, Michael.
Ryan, John.
Ryan, Seán.
Shatter, Alan.
Sheehan, P.J.
Shortall, Róisín.
Spring, Dick.
Stagg, Emmet.
Taylor, Mervyn.
Timmins, Godfrey.
Upton, Pat.
Walsh, Éamon.
Yates, Ivan.

Níl

Ahern, Bertie.
Ahern, Dermot.
Ahern, Michael.
Ahern, Noel.
Andrews, David.
Aylward, Liam.
Brennan, Matt. [1021]Connolly, Ger.
Coughlan, Mary.
Cowen, Brian.
Cullen, Martin.
Davern, Noel.
de Valera, Síle.
Dempsey, Noel.
Doherty, Seán.
Ellis, John.
Fitzgerald, Liam.
Flood, Chris.
Foley, Denis.
Fox, Mildred.
Geoghegan-Quinn, Máire.
Harney, Mary.
Haughey, Seán.
Hughes, Séamus.
Jacob, Joe.
Keaveney, Cecilia.
Kenneally, Brendan.
Keogh, Helen.
Killeen, Tony.
Kirk, Séamus.
Kitt, Michael.
Lawlor, Liam.
Lenihan, Brian.
Leonard, Jimmy.

Brennan, Séamus.
Briscoe, Ben.
Browne, John (Wexford).
Burke, Raphael.
Byrne, Hugh.
Callely, Ivor.
Clohessy, Peadar. [1022]Martin, Micheál.
McDaid, James.
McDowell, Michael.
Moffatt, Tom.
Molloy, Robert.
Morley, P.J.
Moynihan, Donal.
Nolan, M.J.
Ó Cuív, Éamon.
O'Dea, Willie.
O'Donnell, Liz.
O'Donoghue, John.
O'Hanlon, Rory.
O'Keeffe, Batt.
O'Keeffe, Ned.
O'Leary, John.
O'Malley, Desmond.
O'Rourke, Mary.
Power, Seán.
Quill, Máirín.
Ryan, Eoin.
Smith, Brendan.
Smith, Michael.
Treacy, Noel.
Wallace, Dan.
Wallace, Mary.
Walsh, Joe.
Woods, Michael.

Tellers: Tá, Deputies J. Higgins and B. Fitzgerald; Níl, Deputies D. Ahern and Callely.

Question declared carried.

The Taoiseach: I move Financial Resolution No. 4:

(1) THAT in this Resolution—

“the Act of 1891” means the Stamp Act, 1891;

“the Act of 1978” means the Local Government (Financial Provisions) Act, 1978 (No. 35 of 1978);

“the Commissioners” means the Revenue Commissioners;

“the First Schedule” means the First Schedule, as amended by the Finance Act, 1970 (No. 14 of 1970) and subsequent enactments, to the Act of 1891;

“community hall”, “mixed hereditament”, “secondary school” and “valuation lists” have the meanings, respectively, assigned to them by section 1 of the Act of 1978.

(2) THAT this Resolution shall have effect as respects instruments executed on or after the 23rd day of January, 1997:

Provided that this Resolution shall not apply as respects any instrument executed prior to the 1st day of April, 1997, in pursuance of a contract which was evidenced in writing prior to the 23rd day of January, 1997.

(3) THAT the First Schedule be amended—

(a) by the substitution of the Heading and the provisions thereto which are set out in Part I of the Schedule to this Resolution for the Heading (as amended by the Finance Act, 1992 (No. 9 of 1992) “CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities or a policy of insurance or a policy of life insurance” and the provisions thereto, and

(b) by the substitution of the subparagraph set out in Part II of the Schedule to this Resolution for subparagraph (a) of paragraph (3) of the Heading “LEASE” (inserted by the Finance Act, 1991 (No. 13 of 1991).

(4) THAT section 122 of the Act of 1891 be amended by the insertion of the following definition after the definition of “marketable security”:

“The expression ‘residential property’, in relation to a sale or lease, means—

(a) a building or part of a building which, at the date of the instrument of conveyance or lease—

(i) was used or was suitable for use as a dwelling, or

(ii) was in the course of being constructed or adapted for use as a dwelling, or

(iii) had been constructed or adapted for use as a dwelling and had not since such construction or adaptation been adapted for any other use, and

(b) the curtilage of the residential property up to an area (exclusive of the site of the residential property) of one acre:

Provided that—

[1023] (i) where in the year ending on the 31st day of December immediately prior to the date of that instrument of conveyance or lease—

(I) a rate was made by a rating authority as regards any hereditament to which the provisions of section 3 of the Act of 1978 did not apply, or

(II) a rate was made by a rating authority, and an allowance made under that section of that Act, as regards any hereditament which was at the time the rate was made a mixed hereditament, secondary school or community hall, or

(III) a hereditament was described as exempt, or partially exempt, from rating in the valuation lists,

then the whole or an appropriate part of that hereditament as is referable to ordinary use other than as a dwelling at the date of that instrument of conveyance or lease or, where appropriate, when last ordinarily used, shall not be residential property, in relation to that sale or lease,

(ii) where the area of the curtilage (exclusive of the site of the residential property) exceeds one acre then the part which shall be residential property shall be taken to be the part which, if the remainder were separately occupied, would be the most suitable for occupation and enjoyment with the residential property.”.

(5) THAT section 58 of the Act of 1891 be amended by the insertion of the following subsection after subsection (1):

“(1A) Where—

(a) any property which consists partly of an interest in residential property is sold to any person and the sale (hereinafter in this subsection referred to as ‘the first-mentioned sale’) does not form part of a larger transaction or of a series of transactions, or

(b) the sale to any person of property consisting in whole or in part of such an interest forms part of a larger transaction or of a series of transactions,

the consideration attributable to the first-mentioned sale and the aggregate consideration (other than rent) attributable to that larger transaction or series of transactions, as the case may be, shall be apportioned, on such basis as is just and reasonable, as between that interest in residential property and the other property or part concerned, and that aggregate consideration shall likewise be apportioned as between each other such interest (if any) comprised in that larger transaction or series of transactions and the other property or parts concerned, and notwithstanding the amount or value of the [1024] consideration set forth in any instrument, the consideration so apportioned to that interest shall be the amount or the value of the consideration for the sale which is deemed to be attributable to that interest and the consideration so apportioned to the aggregate of all such interests comprised in that larger transaction or series of transactions shall be the amount or value of that aggregate consideration which is deemed to be attributable to residential property.”.

(6) THAT section 77 of the Act of 1891 be amended by the addition of the following subsection after subsection (5):

“(6) Where—

(a) any property which consists partly of an interest in residential property is leased to any person and that lease (hereinafter in this section referred to as ‘the first-mentioned lease’) does not form part of a larger transaction or of a series of transactions, or

(b) the lease to any person of any property consisting in whole or in part of such an interest forms part of a larger transaction or of a series of transactions,

the consideration other than rent attributable to that first-mentioned lease and the aggregate consideration (other than rent) attributable to that larger transaction or series of transactions, as the case may be, shall be apportioned, on such basis as is just and reasonable, as between that interest in residential property and the other property or part concerned, and that aggregate consideration shall likewise be apportioned, as between each other such interest (if any) comprised in that larger transaction or series of transactions and the other property or parts concerned, and notwithstanding the amount or value of the consideration set forth in any instrument, the consideration so apportioned to that interest shall be the amount or the value of the consideration for the lease which is deemed to be attributable to that interest and the consideration so apportioned to the aggregate of all such interests comprised in that larger transaction or series of transactions shall be the amount or value of that aggregate consideration which is deemed to be attributable to residential property.”.

(7) THAT the amount upon which stamp duty is chargeable by virtue of the provisions of section 112 (as amended by section 100 of the Finance Act, 1993 (No. 13 of 1993) of the Finance Act, 1990 (No. 10 of 1990), shall be deemed, for the purposes of the Act of 1891, to be the amount or value of the consideration for the sale or lease in respect of which that duty is chargeable.

(8) (a) THAT in this paragraph of this Resolution—

[1025] (i) a reference to a sale includes a reference to a lease,

(ii) a reference to a vendor includes a reference to a lessor,

(iii) a reference to a vendee includes a reference to a lessee,

(iv) a reference to subsection (1A) of section 58 of the Act of 1891 includes a reference to subsection (6) of section 77 of the Act of 1891, and

(v) “residential consideration” means—

(I) in the case of a sale to which paragraph (a) of subsection (1A) of section 58 of the Act of 1891 refers, the amount or value of the consideration for the sale which is deemed to be attributable to residential property, and

(II) in the case of a sale to which paragraph (a) of subsection (1A) of section 58 of the Act of 1891 refers, the amount or value of the aggregate consideration (within the meaning of that subsection) which is deemed to be attributable to residential property.

(b) THAT where, in relation to any sale, the provisions of subsection (1A) of section 58 of the Act of 1891 apply, an estimate (hereinafter in this paragraph of this Resolution referred to as the “vendor's estimate” or as the “vendee's estimate”, as the case may be) of the residential consideration shall be made by the vendor and by the vendee and those estimates together with the amount or value of the aggregate consideration (within the meaning of that subsection), shall be brought to the attention of the Commissioners in the statement delivered under the provisions of subsection (2) of section 5 of that Act and that statement shall be signed by the vendor and the vendee and where the requirements of this paragraph of this Resolution are not complied with any person who executes the instrument whereby that sale is effected shall for the purposes of subsection (3) of section 5 of that Act be presumed, until the contrary is proven, to have acted negligently:

Provided that where—

(i) the aggregate consideration (within the meaning of subsection (1A) of section 58 of the Act of 1891), or

(ii) in the case where the sale does not form part of a larger transaction or of a series of transactions, the consideration for the sale,

does not exceed £150,000, those estimates need not be brought to the attention of the Commissioners in that statement unless a request in that regard is made by the Commissioners.

(c) THAT where the vendee's estimate (hereinafter in this paragraph of this Resolution [1026] referred to as the “submitted value”) is less than the residential value agreed with, or ascertained by, the Commissioners (hereinafter in this paragraph of this Resolution referred to as the “ascertained value”) then, as a penalty, the duty chargeable upon the instrument shall be increased by an amount (hereinafter in this paragraph of this Resolution referred to as the “surcharge”) calculated according to the following provisions:

(i) where the submitted value is less than the ascertained value by an amount which is greater than 10 per cent. of the ascertained value but not greater than 30 per cent. of the ascertained value, a surcharge equal to 50 per cent. of the difference between the duty chargeable by reference to the ascertained value and the duty chargeable by reference to the submitted value;

(ii) where the submitted value is less than the ascertained value by an amount which is greater than 30 per cent. of the ascertained value, a surcharge equal to the difference between the duty chargeable by reference to the ascertained value and the duty chargeable by reference to the submitted value:

Provided that—

(I) notwithstanding any other provision to the contrary in the Act of 1891, the vendee shall, subject to subparagraph (II) of this proviso, be entitled to recover from the vendor one half of that surcharge,

(II) where the vendor's estimate is greater than the submitted value, the amount which the vendee shall be entitled to recover from the vendor shall not exceed one half of what the surcharge would be if the vendor's estimate were equal to the submitted value.

(9) THAT the furnishing of an incorrect certificate for the purpose of the First Schedule shall be deemed to constitute the delivery of an incorrect statement for the purposes of section 94 of the Finance Act, 1983 (No. 15 of 1983).

(10) IT is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).

SCHEDULE

PART I

Conveyance or Transfer on Sale of any property other than stocks or marketable securities or a policy of insurance or a policy of life insurance

“CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities or a policy of insurance or a policy of life insurance.

[1027](1) Where the amount or value of the consideration for the sale does not exceed £5,000 and the instrument contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions, in respect of which the amount or value, or the aggregate amount or value, of the consideration exceeds £5,000	Exempt
(2) Where paragraph (1) does not apply and the amount or value of the consideration for the sale does not exceed £10,000 and the instrument contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration exceeds £10,000:
for every £100, or fractional part of £100, of the consideration	£1.00
(3) Where paragraphs (1) and (2) do not apply and the amount or value of the consideration for the sale does not exceed £15,000 and the instrument contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or a series of transactions in respect of which the value, or the aggreagate amount or value, of the consideration exceeds £15,000:
for every £100, or fractionalpart of £100, of the consideration	£2.00
(4) Where paragraphs (1) to(3) do not apply and the amountor value of the consideration for the sale does not exceed £25,000 and the instrument contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration exceeds £25,000:
for every £100, or fractional part of £100, of the consideration	£3.00
[1028](5) Where paragraphs (1) to (4) do not apply and the amount or value of the consideration for the sale does not exceed £50,000 and the instrument contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a serifor every £100, or fractional part of £100, of the consideration	£4.00
for every £100, or fractional part of £100, of the consideration	£4.00
(6) Where paragraphs (1) to (5) do not apply and the amount or value of the consideration for the sale does not exceed £60,000 and the instrument contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration exceeds £60,000:
for every £100, or fractional part of £100, of the consideration	£5.00
(7) Where paragraphs (1) to (6) do not apply:
(a) if the instrument contains a statement—
(i) that the amount or value of the consideration for the sale does not exceed £150,000 and that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration exceeds £150,000, or
(ii) that no part of the consideration for the sale is attributable, or deemed to be attributable, to residential property:
for every £100, or fractional part of £100, of the consideration which is not deemed to be attributable to residential property	£6.00
[1029](b) if the instrument contains a statement that the provisions of subsection (1A) of section 58 of this Act apply in relation to the sale:
for every £100, or fractional part of £100, of the consideration for the sale which is not deemed to be attributable to residential property	£6.00
(c) if the amount or value of the consideration for the sale which is attributable to residential property or which is deemed to be attributable to residential property:
(i) does not exceed £150,000 and the instrument contains a statement certifying that the provisions of subsection (1A) of section 58 of this Act apply in relation to that sale and that the amount or value of the aggregate consideration (within the meaning of that subsection) which is deemed to be attributable to residential property, or which would be deemed to be so attributable if the contents of residential property were considered to be residential property, does not exceed £150,000	£6.00 for every £100, or fractional part of £100, of the consideration
(ii) does not exceed £160,000 and the instrument contains a statement certifying that the provisions of subsection (1A) of section 58 of this Act do not apply in relation to the sale or that the provisions of that subsection do apply in relation to the sale and that the amount or value of the aggregate consideration (within the meaning of that subsection) which is deemed to be attributable to residential property, or which would be deemed to be so attributable if the contents of residential property were considered to be residential property, does not exceed £160,000, and subparagraphs (a)(i) and (c)(i) do not apply	£7.00 for every £100, or fractional part of £100, of the consideration
[1030](iii) does not exceed £170,000 and the instrument contains a statement certifying that the provisions of subsection (1A) of section 58 of this Act do not apply in relation to that sale or that the provisions of that subsection do apply in relation to the sale and that the amcontents of residential property were considered to be residential property, does not exceed £170,000 and subparagraphs (a)(i), (c)(i) and (c)(ii) do not apply	£8.00 for every £100, or fractional part of £100, of the consideration
(8) Of any other kind whatsoever not hereinbefore described:
for every £100, or fractional part of £100, of the consideration £9.00
(9) Where in the case of a conveyance or transfer on sale or in the case of a conveyance or transfer operating as a voluntary disposition inter vivos the consideration for the sale or the value of the property exceeds £5,000 and the instrument contains a certificate by the party to whom the property is being conveyed or transferred to the effect that the person becoming entitled to the entire beneficial interest in the property (or, where more than one person becomes entitled to a beneficial interest therein, each of them) is related to the person or each of the persons immediately theretofore entitled to the entire beneficial interest in the property in one or other of the following ways, that is to say, as a lineal descendant, parent, grandparent, step-parent, husband or wife, brother or sister of a parent or brother or sister, or lineal descendant of a parent, husband or wife or brother or sister:
a duty of an amount equal to one-half of the ad valorem stamp duty which, but for the provisions of this paragraph, would be chargeable under this Heading.”.
PART II
Lease
“(3) For any other definite term or for any indefinite term of any lands, tenements, or heritable subjects:
[1031](a) where the consideration, or any part of the consideration (other than rent), moving either to the lessor or to any other person, consists of any money, stock or security, and—
(i) the amount or value of such consideration does not exceed £5,000 and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions, in respect of which the amount or value, or the aggregate amount or value, of the consideration other than rent exceeds £5,000	Exempt
(ii) the amount or value of such consideration does not exceed £10,000 and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration other than rent exceeds £10,000 and subparagraph (i) does not apply:
for every £100, or fractional part of £100, of the consideration	£1.00
(iii) the amount or value of such consideration does not exceed £15,000 and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration other than rent exceeds £15,000 and subparagraphs (i) and (ii) do not apply:
for every £100, or fractional part of £100, of the consideration	£2.00
[1032](iv) the amount or value of such consideration does not exceed £25,000 and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or thfor every £100, or fractional part of £100, of the consideration	£3.00
for every £100, or fractional part of £100, of the consideration	£3.00
(v) the amount or value of such consideration does not exceed £50,000 and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration other than rent exceeds £50,000 and subparagraphs (i) to (iv) do not apply:
for every £100, or fractional part of £100, of the consideration	£4.00
(vi) the amount or value of such consideration does not exceed £60,000 and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration other than rent exceeds £60,000 and subparagraphs (i) to (v) do not apply:
for every £100, or fractional part of £100, of the consideration	£5.00
(vii) where subparagraphs (i) to (vi) do not apply:
(I) if the instrument contains a statement—
[1033](A) that the amount or value of the consideration other than rent does not exceed £150,000 and that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or (B) that no part of the consideration is attributable, or deemed to be attributable, to residential property
(B) that no part of the consideration is attributable, or deemed to be attributable, to residential property	£6.00 for every £100, or fractional part of £100, of the consideration
(II) if the instrument contains a statement that the provisions of subsection (6) of section 77 of this Act apply in relation to the lease:
for every £100, or fractional part of £100, of the consideration which is not deemed to be attributable to residential property	£6.00
(III) if the amount or value of such consideration which is attributable to residential property or which is deemed to be attributable to residential property:
(A) does not exceed £150,000 and the instrument contains a statement certifying that the provisions of subsection (6) of section 77 of this Act apply in relation to that lease and that the amount or value of the aggregate consideration (within the meaning of that subsection) which is deemed to be attributable to residential property, or which would be deemed to be so attributable if the contents of residential property were considered to be residential property, does not exceed £150,000	£6.00 for every £100, or fractional part of £100, of the consideration
[1034](B) does not exceed £160,000 and the instrument contains a statement certifying that the provisions of subsection (6) of section 77 of this Act do not apply in relation to that lease or that the provisions of that subsection do apply in relation to that lease and that the amcontents of residential property were considered to be residential property, does not exceed £160,000, and clauses (I)(A) and (III)(A) do not apply
	£7.00 for every £100, or fractional part of £100, of the consideration
(C) does not exceed £170,000 and the instrument contains a statement certifying that the provisions of subsection (6) of section 77 of this Act do not apply in relation to that lease or that the provisions of that subsection do apply in relation to that lease and that the amount or value of the aggregate consideration (within the meaning of that subsection) which is deemed to be attributable to residential property, or which would be deemed to be so attributable if the contents of residential property were considered to be residential property, does not exceed £170,000 and clauses (I)(A), (III)(A) and (III)(B) do not apply
	£8.00 for every £100, or fractional part of £100, of the consideration
(viii) the case is of any other kind whatsoever not hereinbefore described:
for every £100, or fractional part of £100, of the consideration	£9.00.”.

[1035] This Financial Resolution provides for an increase in stamp duty charged on the transfer of second-hand and certain new residential property where the amount upon which the stamp duty is chargeable is in excess of £150,000. The rate is 6 per cent at present. It is proposed to introduce three new rates; these are 7 per cent on residential property valued between £150,000 and £160,000, 8 per cent on residential property valued between £160,000 and £170,000 and 9 per cent on residential property valued in excess of £170,000.

The background to this is that the Government announced the abolition of residential property tax last month. The purpose of these measures is to replace the revenue lost by the abolition of residential property tax. The yield from the measures proposed here is expected to be £11 million in 1997 and £13.5 million in a full year. This compares with the 1997 revenue that would have been obtained from residential property tax of £14 million. Therefore, there is a slight loss of approximately £500,000.

There may be many Members who may be tempted to criticise this proposal but I would ask them whether they would prefer to have residential property tax continue. I think the answer would be “no”. There may also be many vague and general suggestions as to how one might replace lost revenue from the abolition of residential property tax. It falls to the Government to introduce a specific fair measure for this purpose, one that perhaps will have some modest effect in dampening down the increase in house prices, something to which I am sure nobody would object in view of the inflation risks flowing therefrom.

No doubt there will be a number of questions Members will want to raise in the course of the debate on this resolution. For example, the question of mixed properties may arise where part of the property is a shop and part is residential. The test will be the one used for rating purposes. If a property is rated as a commercial one, the portion of the house rated as commercial will not be included in the total for calculating stamp duty for the purposes of this section which applies to residential property. There may be other questions which Deputies may wish to raise during the debate and I will be happy to provide answers.

In the case of guesthouses, registered ones will be considered to be business premises and will not be subject to the residential stamp duty regime. However, unregistered premises will not be in the same category. Obviously, this will create an incentive to register properties so that they will not be categorised as residential properties for the purpose of the tax.

A problem which might arise as regards the treatment of a farm with a substantial home is that the purchaser and the seller will separate the payments being made in respect of the residential portion of farm premises. The residential portion will be subject to stamp duty in this instance but [1036] the non residential farm portion will not be. That is a matter which can be dealt with adequately by the relevant arrangements and by virtue of agreement between the purchaser and the seller. The arrangements reached will, in most instances, be acceptable to the Revenue Commissioners because there will be a divergence of interest as regards the apportionment of the purchase price between the purchaser and the seller. Any agreement reached between them on the matter is likely to be approximately valid because of their divergence of interest.

There may be some who will claim the level of stamp duty will be particularly high in comparison with other countries. Some may, for example, quote the British rate. In Britain residential property bears a council tax which does not apply here. That tax must be paid every year, not only at the time of sale. When comparing the stamp duty of 1 per cent in Britain with that here, one should also add the cumulative effect of paying council tax of somewhere in the region of £1,000 per year, which adds up to a much larger sum of money over a period. Stamp duty on property in Belgium is 12.5 per cent and other countries also have high rates.

The final argument which decides that this is the right course to follow is that by making these changes in stamp duty, which are only payable if people decide to sell their house — one has a choice — and which are only paid once in the normal lifetime unless one frequently buys and sells houses, we have been enabled to abolish residential property tax. There has been much complaint about this tax. I have no doubt many Opposition Members were looking forward to campaigning on this issue and may have already printed literature which they will find is null because the Government has acted.

The Government is acting in accordance with the wishes of the majority of people. It is substituting a simple tax, stamp duty, for a very complicated one, residential property tax, or a certain tax for an uncertain one. The Government has made a good decision on this matter and I have no doubt the House and the country will approve.

Mr. R. Burke: This side of the House will vehemently oppose the introduction of this iniquitous stamp duty. The Taoiseach made the case that he has generously removed residential property tax and that this is a replacement. Why do we need a replacement for what was an unjust tax which should never have been imposed? It was an ideological plaything of the Labour Party which first introduced it. It was an unfair form of taxation and the Government was merely responding to pressure from this side of the House for its removal, and rightly so. It brought in about £13 or £14 million. Why do we need another tax to replace it?

According to today's figures, overall expenditure for the year will be £13.584 billion. This Government has lost control of the public finances. It came to Government on a commitment [1037] that Estimates would not rise by more than inflation plus 2 per cent. In the period it has been in office inflation has been 6.5 per cent and public expenditure has risen by 20 per cent. Surely with £13.5 billion it was possible for the Government to find savings to balance the loss of approximately £13 or £14 million when removing the iniquitous and unjust residential property tax? I do not deny that some will be able to afford to pay this tax, but it will mainly hit those who cannot afford it.

In the case of a family home, if one or both parents retire and wish to move into a nursing home or a care facility, they will try to sell their home and will look for the best possible price. That price will be dramatically hit by the introduction of this tax. We are not talking about small amounts of money. In the Dublin region and residential areas elsewhere, a £170,000 house is not a massive one. However, we are talking about stamp duty of £15,300 on such a house and approximately £10,500 on a house worth £150,000 which will affect the price a person will get for their property because the purchaser will have to pay. The price of houses will drop accordingly and those who borrowed and invested in doing up their property and who want to move on for various reasons, whether they are elderly or wish to buy elsewhere, will find that the second-hand house market will be badly hit by the introduction of this measure.

Property tax should never have been introduced and I find it wrong that the Taoiseach should try to link stamp duty with it. If the Government did its business properly we would not have this £13.5 billion level of expenditure and in calculating the Estimates it should have been in a position to find savings without having to impose this unjust increase in stamp duty. It is a totally unfair form of taxation and will have very damaging effects on the property market.

It will especially hit many of our older citizens and their families who want to sell what has been the family home for many years, the nest egg bought at a lower price. Many would not have had to pay property tax because their incomes would have excluded them from it. Their nest eggs are being damaged by this Government to the extent of £15,000 or £10,000 in some cases.

It is not a case of hitting the wealthy. For example, I was in an estate last night in my constituency of Dublin North where houses which sold two years ago for £75,000 to £80,000 are now worth up to £150,000. This is an unfair form of taxation. In removing the unfair residential property tax, the Government should not have replaced it with an equally unfair system, as it has on this occasion.

Mr. Shatter: I listened with interest to what Deputy Ray Burke said. I would take it seriously if his party in Government had not dramatically extended residential property tax, lowered the income threshold and extended it to apply to tens of thousands of houses which were previously [1038] exempt from the tax. It goes against the grain to take seriously Deputy Burke's comment that residential property tax is an unjust tax which should never have been imposed.

I wonder where Fianna Fáil was from 1987 to 1994? Did anyone notice and does Deputy Burke remember that it was in a variety of Governments: a minority one and a coalition one with the Progressive Democrats and latterly with the Labour Party. During the life of the Fianna Fáil minority Government, there was no suggestion that residential property tax would be abolished.

As people got the exciting whiff of a general election, we have had the spectacle in recent months of various members of the Fianna Fáil and Progressive Democrats parties running an “abolish residential property tax” campaign. Public meetings were held. Trees were demolished to generate the paper required for the glossy leaflets put in people's doors. “Vote for us at the next election”, they said, “and we will abolish residential property tax”.

What Deputy Burke forgot in his speech tonight and what Deputy Michael McDowell and Deputy O'Donnell in my constituency forget is that the nation has not been struck by collective amnesia and there are quite a number, if not the vast majority, of people who remember that Fianna Fáil was in Government for the period I mentioned. They can even recall the brief but unhappy sojourn of the Fianna Fáil and Progressive Democrats parties together. During that Government, did anyone suggest abolishing residential property tax? What did they do about it? We were told by Deputy Burke tonight that it is an unjust tax which should not have been imposed. It was not only imposed but maintained and extended by Fianna Fáil in Government.

I know it is usual that late on budget night people lose the run of themselves to some extent and try and think of something to say so they can stand up and be noticed. I have a great deal of respect for Deputy Burke and for the issues he sometimes raises but his contribution on this issue is the caricature example of playground politics. It is the sort of thing that brings politics into disrepute. He said that, if the Government was doing its business properly, it could have abolished residential property tax without imposing any increase in stamp duty. Is he suggesting his Government when he was Minister did not do its business properly because it failed to abolish it?

As someone who represents the Dublin South constituency, residential property tax has been seen by many of my constituents as an unjust and unfair tax and a great burden. People whose houses did not fall into the tax net some years ago watched the value of their houses increase notionally and suddenly found themselves falling into the net and being discriminated against, effectively because they lived in Dublin. It was an anti-Dublin tax which affected many middle income families in Dublin who had large mortgages in that they struggled to meet the demands of the tax. I welcome the Government's abolition [1039] of the residential property tax. It has behaved correctly in abolishing it. I would have liked to have seen it abolished a long time ago and regret that other parties in Government did not have the wit to take that action. The Government deserves to be congratulated for doing so.

As regards the increase in stamp duty, we should, in some future budget, seek a general review of stamp duties on all types of properties, how they apply and the rates of the duties. I am pleased there has been a modification of the original proposal for the increase in stamp duty which seemed to suggest that, once a house was sold for a sum in excess of £150,000, it was immediately liable for the 9 per cent rate. That would have been unjust and would have created the possibility that, if a house was bought for £149,500, stamp duty would be 6 per cent and, if it was sold for £150,500, £4,500 more stamp duty would have to be paid. The Government was right to modify its original proposal and to introduce a graduated scale. I would have preferred the graduation to be of a somewhat greater degree.

However, Deputy Burke cannot have it both ways. In the context of abolishing residential property tax, the Government has sought an alternative or replacement source of income to meet essential outgoings and to allow the Government give in a responsible way to a great many people as a result of this budget the various other reliefs and benefits which will derive. I have no doubt that, if residential property tax had been abolished with no alternative source for raising finances, the Government would have been accused by the other side of irresponsibility for not producing some alternative revenue source.

We should take with a grain of salt Deputy Burke's strictures. If he and members of his party, or any member of the Progressive Democrats who may wish to contribute on this issue, had sufficient good grace and acknowledged the problems of their periods in Government, they would rapidly congratulate the Government on abolishing residential property tax. For the sake of avoiding embarrassment, it should move on to other budgetary issues rather than focus on this issue. I have no difficulty with the Government directing the spotlight on the reality that it has got rid of residential property tax, which is welcomed by thousands of people throughout the country, many of whom are my constituents.

Mr. D. Ahern: As regards Fianna Fáil's attitude to residential property tax, I very much welcome the Government's decision to abolish that tax. The Government has done a U-turn because it was a Fine Gael-Labour Government that introduced that tax, which was a draconian measure. When we were in Government with Labour that party insisted, as part of the budgetary negotiations, that residential property tax should be increased and broadened, but our party was reluctant to do that.

Deputy Shatter has left the Chamber, but being involved in the legal profession he knows probably better than anyone that stamp duty is a penal taxation. It is one of the most draconian taxes in [1040] our system. People buying second hand houses cannot believe the amount of money they have to fork out on stamp duty. If there was so much largesse — this goes back to the earlier debate on petrol increases — why did the Government introduce this measure, which will yield £13.5 million in a full year? People living in Dublin know that an ordinary house on the north side of the city costs in the region of £150,000.

The Taoiseach: People should go to the west side of Dublin. That is where the boom is.

Mr. D. Ahern: Houses in Drumcondra, Phibsboro and other places which cost £80,000 a couple of years ago now cost £140,000 to £150,000. I remarked recently that one would buy two houses in my town for the price of one that was for sale in Drumcondra. This is another Dublin tax, and that is one of the reasons I live in Dundalk.

Stamp duty affects couples, particularly in Dublin, who are not necessarily wealthy but who try to better themselves by moving to another house. Those people do not have money to burn. A person buying a house in Drumcondra for £150,000 will have to pay £10,500 in stamp duty while stamp duty on a house worth £160,000 will be £12,800 and on a house worth £170,000 it will be £15,300. That is an incredible tax.

Deputy Shatter alluded to the fact that when the Government announced this measure it said that stamp duty on houses worth more than £150,000 would be 9 per cent, but there has been a change of heart and I wonder why. As Deputy Shatter said, there has been a very meagre tapering of the figure. The measure should have been introduced more equitably, with a broader band. There is a huge gap between the 4 per cent rate and the 6 per cent rate for houses worth less than £150,000 — most houses are in the 4 to 6 per cent bracket.

I put down a parliamentary question today to the Minister for Finance about the implications for inflation of house prices and I received a very interesting reply. It stated that the annual rates of increase for new and second hand houses for the first quarter of 1994 and the third quarter of 1996 show that house prices have risen significantly in the past two years. I question the figure produced tonight for the yield from this tax, which will not only increase the price of first hand houses but will make it more difficult to sell second hand houses. The tax take will be greatly increased because of the huge demand for second hand houses in some of the better areas in Dublin where prices are significant. A person buying a house in Drumcondra for £150,000 will need money to renovate the house, but they will have to pay £10,500 on stamp duty.

Mr. Rabbitte: Does the Deputy know somebody who owns a house in Drumcondra?

Mr. D. Ahern: The Minister might know more than I do. The reply to my parliamentary question gave the year on year percentage increases in the [1041] price of second hand houses. In the first quarter of 1994 the increase was 6.8 per cent while in the last quarter it was minus 0.3 per cent. In the first quarter of 1995 the increase was 0.5 per cent while in the last quarter of 1995 it was 13.1 per cent. In the first quarter of 1996 the increase was 10 per cent while in the third quarter of 1996, the latest figures available, it was 18.2 per cent. There has been a huge increase in the price of second hand houses with the result that many ordinary houses will be liable for this punitive tax.

As with petrol, the Government has made a mistake with stamp duty. As Deputy McCreevy often says, Governments make mistakes — I think the Taoiseach is well aware of mistakes made in budgets, but we will not remind him of that. As opposed to tax increases, the increase of 11.5p on a gallon of petrol sticks out like a sore thumb to people looking at the 9 o'clock news tonight. People buying a second-hand house, particularly in Dublin, will look at this decision with a jaundiced eye. What the Government is doing is replacing one Dublin tax with another. It would have been cuter to bury in the overall figure for give-aways in the budget the £16 million which it cost to abolish residential property tax. That would have been much more equitable, but the Government will have to live with the consequences. There has been a dramatic increase in house prices in the past two years and the Government is adding to that a penal tax.

Mr. O'Malley: My party will oppose the proposal to impose a 9 per cent stamp duty on second-hand houses, which seems incredible.

The Taoiseach: The Deputy was opposed to residential property tax too.

Mr. D. Ahern: That is not the proposal before us tonight.

Mr. O'Malley: I cannot help contrasting the stamp duty proposed here with that in Britain and Northern Ireland. It used to be 50 per cent in Britain, but that has increased to 100 per cent at zero and it is 1 per cent above that. One per cent is a figure that will be familiar to Deputy Rabbitte who is in such a skittish mood tonight.

Mr. Rabbitte: We should rejoin the Commonwealth.

The Taoiseach: This is an Irish budget.

Mr. O'Malley: It represents the support for his party in this country. I am delighted he has been able to impose his will in respect of this matter——

The Taoiseach: I thought the Deputy would welcome the abolition of residential property tax and would not speak in such a churlish tone.

Mr. O'Malley: ——and that those who once marched to Pyongyang to hold up the banner of [1042] Kim II Sung are now boasting proudly in this House tonight that they have abolished residential property tax.

The Taoiseach: My goodness, such heavy irony.

Mr. O'Malley: No longer will the capitalists of this country have to pay that iniquitous tax but Kim II Sung will rise in his grave in Pyongyang tonight to celebrate the success of his investment in these people that they have succeeded in abolishing a tax on property.

Mr. Rabbitte: Let us come back to Limerick. I know the Deputy does not go there often.

The Taoiseach: Deputy O'Malley is a cross between Jimmy O'Dea and Laurence Olivier.

Mr. O'Malley: I have looked at financial resolutions in 33 or 34 budgets as we had two in some years.

Mr. Rabbitte: We will have two this year too.

Mr. O'Malley: I have never seen a financial resolution that ran to 14 pages as does Financial Resolution No. 4.

Mr. Rabbitte: It is like Deputy McDowell's leaflets on RPT.

Mr. O'Malley: I cannot confess to understanding all the intricacies of it even though I felt at one time in my distant past I used to understand a good deal about stamp duty.

Mr. Rabbitte: That is not the type of confession the Deputy frequently makes.

Mr. O'Malley: It is beyond me to take in the 14 pages of this resolution in an hour or two. I hope the Revenue Commissioners spend a long time on it. Apart from its length, one aspect of it strikes me as rather unfair, that the resolution shall have effect as regards instruments executed on or after 23 January provided that it will not apply in regard to an instrument executed prior to 1 April in pursuance of a contract evidenced in writing prior to 23 January. In other words, one could have a contract signed tonight provided one's conveyance is dated prior to 1 April. Not every sale is closed in that timescale and it is not anybody's fault that many sales do not do so. Any contract entered into on or before today should be stamped at the existing rate irrespective of the date of conveyance. The level of stamp duty here is so incredibly penal that it is something of an incentive to resort to all the sorts of devices used in relation to stamp duty. It is incredibly penal that we have a rate of tax, however one might seek to justify it in domestic terms, that is nine times greater than the corresponding tax elsewhere.

[1043]The Taoiseach: Britain is the only country to which the Deputy ever refers.

Mr. O'Malley: I am constantly reprimanded for referring to New Zealand——

Mr. S. Brennan: If one were a former President of Europe, that would be annoying.

Mr. O'Malley: ...which is a splendid country to refer to. I have extended my references this afternoon to the United States and even to Germany.

Mr. Rabbitte: Not to mention Hong Kong.

Mr. S. Brennan: And the former Soviet Union.

Mr. O'Malley: The fact that the Taoiseach and the Minister of State for everything should find it a matter of great amusement that they should impose a stamp duty of 9 per cent on residential property transactions is indicative of something.

The Taoiseach: It is the Deputy's speech that is the cause of the amusement.

Mr. O'Malley: At least there is some merit in the removal of the residential property tax, which I acknowledge, but it is interesting that the two parties which are represented here tonight and the Labour Party, which is never represented here when these types of topics are up for discussion, should have decided that they were not prepared to fight the next general election on the basis of the residential property tax. However, what they claim to have substituted may, in the long-term, cause at least as many difficulties and injustices as the residential property tax ever created. I am not sure this is the right way to approach it. I do not believe that I or anyone else in this House can claim to understand the full meaning and nuances of this 14 page financial resolution. Certainly at short notice and without the benefit of advice from people who have had days to go over it, I cannot understand all the nuances. They may be more considerable than we believe. I am particularly mystified by the references to the vendor's estimate of the amount and vendee's estimate of the amount. I have never heard of a vendee. He is normally called the purchaser and I do not know why he cannot be called that here, if he is a purchaser or he may be something else.

The Taoiseach: It is a royalist expression.

Mr. O'Malley: I find it particularly difficult that transfers inter vivos, for no consideration, within a family are subject to half this rate. That may not be fully realised, but it is the case under the terms of this financial resolution. This means that a family house being transferred from, say, a father to a son or to a daughter, if valued at £170,000, is subject to 4.5 per cent stamp duty, which is a penal rate for a voluntary disposition within a family. It is rather unfair because it is [1044] not something someone voluntarily undertakes as one does when one purchases a property. It is something that one feels one has no option but to be involved in. That is regrettable and it should be drawn to people's attention that an inter vivos transaction is liable to half the level of duty imposed here on a conveyance for value. There was a time when virtually all inter vivos transactions were subject to a fixed stamp duty of 50p, ten shillings or at a maximum of 1 per cent, we have come a long way from that. That such a voluntary disposition within a family is now being taxed at the rate of 4.5 per cent is a great discouragement to people to pass on property.

Dr. Woods: My colleague, Deputy Dermot Ahern, raised an important point, that is, that the increase in stamp duty will have an effect even on the north side of Dublin. The position has changed dramatically in recent years and the value of many homes has increased substantially. Those looking forward to selling their home on retirement and buying a smaller house or apartment or moving to a nursing home will regard this change as a particularly onerous imposition.

The rate of home ownership is approximately 80 per cent. There is, however, a change in the Government's philosophy and thinking. Mortgage interest relief has been whittled away and is now allowable only at the standard rate of 26 per cent. I fear for young people in terms of their ability to own a home in parts of Dublin.

The Taoiseach mentioned a figure of £13.5 million. How much of this will be collected in Dublin and how many homes will be affected? Although not directly affected, I welcome the abolition of residential property tax because of its adverse effects, particularly in Dublin. It is an inequitable tax.

The increase in stamp duty will have a severe impact on old people in particular. It will give rise to difficulties and problems which will have to be addressed by future Governments. I fail to see why the burden should be shifted to middle income earners. The rate in Northern Ireland and Britain is 1 per cent on houses worth over £60,000. On family transfers, the increase will be regarded as particularly savage and will have a deleterious effect. We are, therefore, opposed to its imposition on middle income earners.

Mr. Ring: Although there are not many houses worth £150,000 or more in the west, I am glad, as an auctioneer, that residential property tax is to be abolished because home owners who work hard and pay their taxes should not be penalised. Couples whose first home is a new house under 1,400 sq. ft. receive the first time buyer's grant of £3,000. Couples whose first home is a second hand house under 1,400 sq. ft. should be exempt from stamp duty, the payment of which causes many problems. I hope the Government will consider this suggestion.

[1045]Mr. Hughes: I classify the increased rate of stamp duty as a super rate of tax which will not apply solely to larger houses but to ordinary houses. Where a father or mother wishes to transfer a house to their son or daughter there will be an increase of 50 per cent in the level of taxation where the value of the property exceeds £150,000.

I reject the assertion that residential property tax affects only those living in Dublin. There is widespread non-compliance throughout the rest of the country. Whenever a house in Dublin is sold at public auction the work of the Revenue Commissioners is done in that they have an accurate comparative value which can be applied to similar houses. Throughout the rest of the country no such easy comparisons can be drawn. As residential property tax is payable only by those on salaries of £30,000 or more per year, it does not apply to a substantial number of people with properties worth considerably more than £150,000. People in Dublin are more likely to be on a higher salary scale.

I welcome the abolition of this tax. It is beyond me why any party would wish to place a tax on private homes. In recent years further tax relief has been granted to architects, solicitors, doctors and other professionals and now successful tradesmen and others. They can claim not only capital allowances but income tax relief on rental income on second homes which would be regarded as an investment property.

The Taoiseach stated that the new rates of stamp duty will not apply to registered guesthouses. Will he clarify that they will not apply also to registered bed and breakfast accommodation? There is a subtle difference in the registration requirements.

The Taoiseach: Yes.

Mr. Hughes: That is welcome. Successive Governments have encouraged people to enter the business to improve the standard of accommodation available to tourists.

Mr. Callely: I welcome the abolition of residential property tax. I drew the attention of successive Ministers for Finance to my concerns. I consider it anti-Dublin and anti-family and, as such, unfair. I ask the Taoiseach to review the proposal to increase stamp duty from 6 per cent to 9 per cent. If he believes it to be unfair or unbalanced or that it has the potential to act as an anti-Dublin tax, he should introduce measures in the Finance Bill to deal appropriately with that.

I will offer the Taoiseach an example of the problem that will arise, which is a fair one. Take a family home which was inhabited by an elderly person who died recently. The house is a three bedroomed semi-detached residence which has not been modernised for over 30 years. It would, therefore, require replacement windows, central heating, rewiring and complete refurbishment. The garden of this house would be probably smaller than the Taoiseach's side garden, not to [1046] mind the acreage of land that usually surrounds houses in the country.

The Taoiseach: I must bring the Deputy down there sometime.

Mr. Callely: I am talking about a simple town house with a small garden. The value on that property, which is located in Dublin 3, has been established by auctioneers who are seeking offers in excess of £180,000, notwithstanding the need to replace the windows and install central heating. The people who will attempt to purchase that property will be probably a young couple who had to move out of the area because of house prices and who now, having paid a mortgage for a number of years on a home in the suburbs and being in a better financial position, wish to move back to the area in which they were born and reared and where their families reside. The other type of buyers who will be interested in the property are families who might require better accommodation or wish to improve their quality of life. What are we saying to such people? We intend to penalise them because they wish to improve their family's accommodation. On a property valued in excess of £175,000 they will pay about £20,000 in stamp duty and other fees.

The Taoiseach is a fair man and I simply ask——

The Taoiseach: The Deputy is winning me over already.

Mr. Callely: It is not unfair to ask——

Dr. Woods: It was not the Taoiseach's idea.

Mr. S. Brennan: He does not like it any more than Deputy Callely.

Mr. Callely: There are elderly people who may have——

The Taoiseach: This is a very good move, Deputies.

Mr. Callely: ——a family home——

Mr. S. Brennan: It is a good move to keep the Government together.

Mr. Callely: ——and wish to use it as a nest egg. This measure will affect their desire to provide a safety net or nest egg for themselves. It will also lead to under the counter deals in which it will be agreed that certain amounts of money will not be recorded or the house property value will be assessed at a certain amount and furniture and effects will make up the remainder of the value.

This measure is most unfair and I ask the Taoiseach to reconsider it.

Mr. O'Dea: With regard to mixed property, the Taoiseach said the new regime will apply only to the residential part. Is there a method of calculating [1047] the residential part because sometimes it is impossible to value part of a property?

The Taoiseach: Floor area and whether it is rated.

Mr. O'Dea: I listened to Deputy Shatter's impassioned plea. I was most impressed and I agree with much of what he said. However, it suffered from the same fundamental flaw as the Taoiseach's earlier contribution in support of this imposition, in that both were about residential property tax. This measure has nothing to do with residential property tax. That tax was iniquitous, unjust and discriminatory. The Government recognised that by abolishing it, although it was retained in the last two budgets. Omitting the history of the tax, who imposed it and who maintained it, it was wrong and has been abolished. All parties maintained it and the Taoiseach's party introduced it.

The Taoiseach: Who extended it?

Mr. O'Dea: It has been abolished because the Government accepted the argument that it was unjust. However, where is the logic in replacing one unjust imposition with another unjust imposition? Deputy Shatter said that if the Government accepted our case the tax would be simply buried in the general figures and we would accuse the Government of irresponsibility. I cannot accept that logic. The Government says it is giving away £490 million in tax reductions. Why not give away £477 million instead of replacing one unjust tax with another?

Stamp duty, as anybody who is involved with property transactions is aware, is penal. I recently witnessed a property transaction in the United Kingdom. A house in Twickenham, London, which is a good area, was sold for £170,000 and the stamp duty on the transaction was £1,700. When this financial resolution is passed the stamp duty on a similar property in Dublin will be £15,300, nine times as much. There is no logic in or justification for that.

The Taoiseach: What about the council tax paid in the UK?

Mr. O'Dea: The council tax applicable in London does not apply here. However, the income tax rates in the UK are lower than ours. Look at the different VAT regimes and the tax impositions on petrol and other commodities. There is no reality in that argument.

The Taoiseach: Look at their old age pensions. Ours are better.

Mr. O'Dea: We are comparing the stamp duty regime in this country with that of our nearest neighbour whose tax regime closely resembles ours. Stamp duty on a house worth £170,000 in London is £1,700 but the stamp duty on a property [1048] of the same value in Dublin, Limerick, Waterford, Galway or County Meath will be £15,300. Is there logic or justice in that?

I agree with the abolition of residential property tax. However, there is no argument for the replacement of one unjust tax with another unjust and penal imposition. I ask the Taoiseach to reconsider this resolution.

Mr. S. Brennan: I congratulate the Government on abolishing residential property tax. We have been calling for its abolition for three years and the message has got through. That is appreciated. I wish to put on record what I believe has taken place. The Taoiseach's party wisely decided residential property tax should be abolished. Democratic Left and the Labour Party agreed on condition the Taoiseach agreed to raise the same amount of money from family homes. That was the political deal to square the ideological problem the Taoiseach faced in keeping his Government together.

The Taoiseach: That might be how the Deputy's party did business but it is not how we do business.

Mr. S. Brennan: I am glad the Taoiseach has confirmed that Democratic Left did not demand that the residential property tax be maintained. My allegation is that Democratic Left demanded that a tax be maintained on property. What is this fixation on taxing the family home? It happened through the residential property tax and will now happen through this 9 per cent stamp duty on homes worth £170,000. As my colleagues have pointed out, the average price of a family home is rapidly approaching that figure in the current property market.

This is an outrageous decision. I do not believe the Taoiseach's instincts lean in this direction. I am certain that if his hands were not tied he would express the same sentiments as myself and my colleagues. A 9 per cent tax on a home worth £170,000 is an outrageous measure by any stretch of the imagination. It has been imposed because the Taoiseach was told by his colleagues that he must raise money from family homes. Please stop attacking people's homes. A tax on homes is not necessary. It existed previously in the residential property tax and was removed. Do not compound the problem by imposing this iniquitous tax on people's homes.

The Taoiseach: There is no such thing as a good tax. There is always a good objection to a tax because tax involves taking money from people by compulsion. There is no perfect tax and an Opposition can oppose every tax. Having accepted that, let us compare what will now be in place to what was there before. What standards would one use to compare stamp duty with the residential property tax? First, is the tax expensive to administer both for the tax collecting authority and the taxpayer? Second, is the tax certain or uncertain in its effects? Third, is the tax [1049] convenient or inconvenient to pay? On those three criteria this is a far better tax than the tax it replaces.

Mr. S. Brennan: It is still a tax on homes.

The Taoiseach: The residential property tax was administratively costly both from the point of view of the Revenue because of the complexity of the calculations that had to be made and from the point of view of the taxpayer because he or she had to go to the expense of filing a return, making revaluations and getting tax advice every year in some cases in order to ensure they were not in a situation of moral hazard as a result of the possible allegation of paying less than they ought to pay.

In terms of convenience the residential property tax had to be paid every year which is an inconvenient, recurrent liability in terms of people having to make provision each year, whereas this tax is convenient because it only occurs at a time of the choosing of the taxpayer. It is only when the taxpayer chooses to buy or sell a house that this tax falls to be paid. In regard to certainty and equity, this tax is certain because it is levied on a known value, the value of the house as sold between a willing seller and a willing purchaser on a fixed known price. The residential property tax was uncertain because the level of residential property tax to be paid was levied in an arbitrary way on a valuation chosen by the taxpayers which, in the case of one house on a road, could be different from that chosen by another resident of a similar house on the same road without the two having any opportunity of consulting to discuss the issue.

Mr. Callely: They are both anti-Dublin.

An Ceann Comhairle: Let us hear the Taoiseach without interruption.

The Taoiseach: Given that all taxes can be objected to, and one would not have to extend unduly the oratorical capacities of any of the Deputies in Opposition at any time to find some reasons to object to every tax——

Mr. S. Brennan: Not family home tax.

Mr. Callely: The Taoiseach should be fair.

The Taoiseach: ——it is certainly the case that this tax is a distinct and dramatic improvement on the tax it replaces.

Mr. S. Brennan: It is a family home tax.

Mr. Callely: It is anti-Dublin.

The Taoiseach: I want to deal with the Opposition's approach to the general question of replacing residential property tax. Listening to some of the Deputies opposite one would think they would like us to simply abolish this tax and not replace it.

[1050]Mr. S. Brennan: There will be a £52 million take from petrol.

Mr. Callely: That is not what we are saying.

The Taoiseach: That is not a responsible approach to take. If a tax is to be abolished, given our requirements under the Maastricht Treaty to maintain our borrowing within a strictly defined limit, there is a requirement when removing one revenue source to replace it with another.

Mr. Callely: But it must be fair.

The Taoiseach: That is what we are doing in this case. We are not repeating the approach adopted in 1977 by the party opposite when it simply abolished rates.

Mr. Callely: I do not remember that. I am one of the younger Members of the House and that was a long time ago.

An Ceann Comhairle: Deputy Callely should cease interrupting.

Mr. M. Smith: The Taoiseach agreed with that at the time. He issued a concurrent statement.

The Taoiseach: As a result of that decision we found ourselves in great difficulties throughout the 1980s.

A number of questions were asked about this matter. In regard to the number of houses to which this is likely to apply, approximately 1,500 houses change hands every year at or above £150,000.

Mr. Callely: Where will they be located?

An Ceann Comhairle: I have asked Deputy Callely to desist. He ought to abide by the Chair's ruling.

The Taoiseach: These houses are located wherever house values are at that level. If house values are at a certain level in a particular area it is because people want to buy houses there since it has amenities which do not exist in other areas.

Mr. S. Brennan: It is a socialist tax.

The Taoiseach: In this instance it will only be where people willingly buy or sell a house in that particular area that the tax will fall to be paid.

Mr. S. Brennan: It is a left wing tax and the Taoiseach knows it.

An Ceann Comhairle: Let us hear the Taoiseach without interruption.

The Taoiseach: The objection to the residential property tax was that it applied whether people wanted to sell their house or whether they had the capacity——

[1051]Mr. Callely: The Taoiseach should check with Richard.

The Taoiseach: ——for realising the value of their houses.

Mr. B. Ahern: All move out of Clontarf.

Mr. S. Brennan: It is a Proinsias De Rossa tax.

The Taoiseach: In this instance the tax will apply only where the house is being sold.

Deputies opposite are concerned about the rate of the tax which they consider to be very high but in France, for example, a country in which the Fianna Fáil Party's allies are in office, the equivalent house stamp duty tax is 18.2 per cent——

Mr. S. Brennan: After years of socialism.

Dr. Woods: The Taoiseach will have to stop going on French holidays.

The Taoiseach: ——in Italy it is up to 17 per cent, in Belgium it is 12.5 per cent and in Portugal it is over 10 per cent.

Mr. O'Dea: And the UK?

The Taoiseach: The Deputies opposite who complained about others being absent — they are now absent — extolled the virtues of the British system where we are told stamp duty is charged at the rate of only 1 per cent. However, if a person pays stamp duty at the rate of 1 per cent on a house in London valued at £150,000, he or she also pays approximately £1,000 a year in council tax. Tax of that kind is not paid on a house in Ireland.

Mr. S. Brennan: Because it was removed in 1977.

The Taoiseach: I do not want to swop our system of stamp duty on houses, no residential property tax, rates or council tax for the British system where people pay 1 per cent stamp duty on houses and a £1,000 a year council tax bill.

Mr. O'Dea: Fifteen years' tax in one year.

The Taoiseach: Householders in Ireland are getting a far better deal from the Government than householders in Britain are getting from their Government.

Mr. S. Brennan: This is a family home tax.

The Taoiseach: Those Deputies who wish to selectively quote what is good about the United Kingdom might well undertake more exhaustive research and they would find that the system of taxation is better in this country in many respects than the one in Britain. It is certainly a more progressive system of taxation where tax is levied in [1052] accordance more with ability to pay, whereas the priority in Britain has been simply to reduce the top rate of tax to a point where people earning huge incomes are paying comparatively little tax. I do not believe in the British social model. The Deputies opposite may selectively want to pick and choose bits from the British social model that suit them and then reject others. I do not believe that model is one we should seek to emulate.

The balance we have struck in this budget with this particular tax and the priority we have given to the low and middle income groups in regard to income taxation is the correct one. I listened to Deputy O'Dea and others who said we had lost an opportunity by spreading the benefit too thinly. The strength of this budget is precisely in that regard. What he described as spreading the benefit too thinly was in fact giving the benefit right across the board, particularly to the large mass of taxpayers on comparatively low incomes.

Mr. S. Brennan: One for everyone in the audience.

The Taoiseach: There are other Deputies in this House who would prefer — this may represent the views of other Deputies in Limerick but I am not so sure about Deputy O'Dea — if we concentrated more on reducing the 48 per cent income tax rate. That would not be a good idea.

Mr. O'Dea: The Taoiseach should concentrate on something.

The Taoiseach: Irrespective of whether the lower and middle income groups and those on the margin of the poverty trap argue they are better off not working, it is right that we should target those groups, reduce tax in that area and increase allowances under the family income supplement. That spreads the benefits considerably. It is also consistent with an enterprise approach to the economy because enterprise is for everybody, not just those who are already well off. Access to enterprise should be available to everybody. The philosophy of the Government of opening up access to enterprise to everybody, including the long-term unemployed, is the right approach to building a free, robust and fair economy. This is what we are building as a result of the budget.

Mr. Callely: The Taoiseach is talking about an anti-Dublin family home tax.

Dr. Woods: The Taoiseach did not say how many were in Dublin.

An Ceann Comhairle: As it is now 10.30 p.m. I am required to put the following question in accordance with an Order of the Dáil of this day: “That Financial Resolution No. 4 is hereby agreed to.”

Question put.

[1053][1054] The Dáil divided: Tá, 78; Níl, 68.

Tá

Ahearn, Theresa.
Allen, Bernard.
Barrett, Seán.
Bell, Michael.
Bhamjee, Moosajee.
Bhreathnach, Niamh.
Boylan, Andrew.
Bradford, Paul.
Bree, Declan.
Broughan, Thomas.
Browne, John (Carlow-Kilkenny).
Bruton, John.
Bruton, Richard.
Burke, Liam.
Burton, Joan.
Byrne, Eric.
Carey, Donal.
Connaughton, Paul.
Connor, John.
Crawford, Seymour.
Creed, Michael.
Crowley, Frank.
Currie, Austin.
Deasy, Austin.
Deenihan, Jimmy.
Doyle, Avril.
Dukes, Alan.
Durkan, Bernard.
Ferris, Michael.
Finucane, Michael.
Fitzgerald, Brian.
Fitzgerald, Eithne.
Fitzgerald, Frances.
Flaherty, Mary.
Flanagan, Charles.
Gallagher, Pat (Laoighis-Offaly).
Gilmore, Eamon.
Harte, Paddy.
Higgins, Jim.

Higgins, Michael.
Hogan, Philip.
Howlin, Brendan.
Kavanagh, Liam.
Kemmy, Jim.
Kenny, Enda.
Kenny, Seán.
Lowry, Michael.
Lynch, Kathleen.
McCormack, Pádraic.
McDowell, Derek.
McGahon, Brendan.
McGinley, Dinny.
McGrath, Paul.
McManus, Liz.
Mitchell, Gay.
Moynihan-Cronin, Breeda.
Mulvihill, John.
Nealon, Ted.
Noonan, Michael (Limerick East).
O'Keeffe, Jim.
O'Shea, Brian.
O'Sullivan, Toddy.
Pattison, Séamus.
Penrose, William.
Rabbitte, Pat.
Ring, Michael.
Ryan, John.
Ryan, Seán.
Shatter, Alan.
Sheehan, P.J.
Shortall, Róisín.
Spring, Dick.
Stagg, Emmet.
Taylor, Mervyn.
Timmins, Godfrey.
Upton, Pat.
Walsh, Éamon.
Yates, Ivan.

Níl

Ahern, Bertie.
Ahern, Dermot.
Ahern, Michael.
Ahern, Noel.
Andrews, David.
Aylward, Liam.
Brennan, Matt.
Brennan, Séamus.
Briscoe, Ben.
Browne, John (Wexford).
Burke, Raphael.
Byrne, Hugh.
Callely, Ivor.
Clohessy, Peadar.
Connolly, Ger.
Coughlan, Mary.
Cowen, Brian.
Cullen, Martin.
Davern, Noel.
de Valera, Síle.
Dempsey, Noel.
Doherty, Seán.
Ellis, John.
Fitzgerald, Liam.
Flood, Chris.
Foley, Denis.
Fox, Mildred.
Geoghegan-Quinn, Máire.
Harney, Mary. [1055]Power, Seán.
Quill, Máirín.
Ryan, Eoin.
Smith, Brendan.
Smith, Michael.

Haughey, Seán.
Hughes, Séamus.
Jacob, Joe.
Keaveney, Cecilia.
Kenneally, Brendan.
Keogh, Helen.
Killeen, Tony.
Kirk, Séamus.
Kitt, Michael.
Lawlor, Liam.
Lenihan, Brian.
Leonard, Jimmy.
Martin, Micheál.
McDaid, James.
McDowell, Michael.
Moffatt, Tom.
Molloy, Robert.
Morley, P.J.
Moynihan, Donal.
Nolan, M.J.
Ó Cuív, Éamon.
O'Dea, Willie.
O'Donnell, Liz.
O'Donoghue, John.
O'Hanlon, Rory.
O'Keeffe, Batt.
O'Keeffe, Ned.
O'Leary, John.
O'Rourke, Mary. [1056]Treacy, Noel.
Wallace, Dan.
Wallace, Mary.
Walsh, Joe.
Woods, Michael.

Tellers: Tá, Deputies B. Fitzgerald and J. Higgins; Níl, Deputies D. Ahern and Callely.

Question declared carried.

The Taoiseach: I move Financial Resolution No. 5:

THAT it is expedient to amend the law relating to customs and inland revenue (including excise) and to make further provision in connection with finance.

Debate adjourned.

The Dáil adjourned at 10.45 p.m. until 10.30 a.m. on Thursday, 23 January 1997.

[1057]

14. Mr. E. O'Keeffe asked the Taoiseach the total amount of money expended on consultancies in the past two years; the total number of reports from these consultancies; and the cost of such reports. [1497/97]

The Taoiseach: Expenditure on consultancies by my Department in the past two years amounts to £361,098 and £693,784 in 1995 and 1996 respectively. This includes expenditure by bodies under the aegis of my Department.

The increase in expenditure can be attributed mainly to the following consultancies which commenced in 1996: the SMI — Review of the Garda Síochána; the Efficiency Audit Group — Review of the Irish Air Corps and Naval Services; the appointment of Goodbody Economic Consultants as an external evaluator of the Operational Programme for Local Urban and Rural Development and the appointment of Keating and Associates as Public Relations consultants for the Operational Programme for Local Urban and Rural Development.

In addition, a number of smaller consultancies arose during the year in relation to the Commemoration of the Famine, the Communicating Europe Initiative and the Western Development Pilot Programme on the Integrated Provision of Public Services in Rural Areas.

The total number of reports produced to date from the consultancies is 24. A number of the reports are internal to the Department and have not been published.

19. Mr. Molloy asked the Taoiseach if his attention has been drawn to the inadequate infrastructural facilities on Inishmore, Aran Islands, County Galway, to cater for the needs of the local community and a growing tourism industry; and if he will make a statement on the matter. [1383/97]

The Taoiseach: A total of £158,000 was made available to upgrade the pier at Kilronan, Inishmore in 1994 by the Department of Arts, Culture and the Gaeltacht. A total of £4.7 million has been expended on substantial pier developments on the other Aran Islands of Inis Meáin and Inis Oírr by that Department also. My colleague the Minister, Deputy Higgins will shortly open both these piers.

In response to a proposal from the Islands Committee of Galway County Council, I allocated £20,000 in 1996 for a feasibility study which will identify further improvement works required at Kilronan pier. This study was selected by the Council's Islands Committee as a priority access project.

In addition, in accordance with the recommendations of the report of the interdepartmental [1058] co-ordinating committee on island development each relevant local authority, in consultation with their island committee, has been asked to draw up a priority programme of infrastructural works for its islands.

A sum of £1 million has been made available in 1997 for priority infrastructural projects. This is in addition to the local authorities' own budgets for the development of infrastructure on their islands. The allocation of the funding will be made following an assessment of each project by the interdepartmental co-ordinating committee, with the assistance of the Department of the Environment.

Galway County Council has already prepared a report on the infrastructural needs of its islands, including Inishmore, and a preliminary assessment of this is currently being carried out. As soon as a priority list of projects, as agreed by Galway County Council's islands committee is available, the allocation of funding will then be considered.

29. Mr. Killeen asked the Minister for the Environment whether he intends to make additional finances available to local authorities to enable them to take over group water schemes when service charges are abolished by the Government. [24285/96]

30. Mr. B. Smith asked the Minister for the Environment the proposals, if any, he has to offset the costs involved for persons participating in group water schemes and providing water supplies from private wells in view of his recent proposals to abolish water charges; and if he will make a statement on the matter. [1524/97]

43. Dr. O'Hanlon asked the Minister for the Environment if his attention has been drawn to the widespread concern of shareholders in water schemes, many of whom pay motor tax, towards providing water free of charge in urban areas while at the same time having to pay for their own water supply; the plans, if any, he has to ensure that no such discrimination takes place; and if he will make a statement on the matter. [1430/97]

67. Mr. M. Kitt asked the Minister for the Environment if he will make a statement on charges for voluntary group water schemes, cattle troughs and other charges including maintenance and running costs for group water schemes in view of his announcement regarding the abolition of water charges. [1176/97]

[1059]

71. Mr. Molloy asked the Minister for the Environment whether provision will be made in the Government's plans for the abolition of water charges for the taking in charge of group water supply schemes and the payment of an amount to each local authority to cover annual maintenance costs; and if he will make a statement on the matter. [1388/97]

74. Mr. Killeen asked the Minister for the Environment the level of finance which will be made available towards the running costs of group water schemes in the event that local authority service charges are abolished in the 1997 budget. [25231/96]

246. Éamon Ó Cuív asked the Minister for the Environment whether he intends giving any assistance towards maintenance costs to people who provide their own sewerage systems, either through group sewerage schemes or through individual treatment plants or septic tanks, in view of the abolition of the local authority sewerage charges. [1139/97]

247. Éamon Ó Cuív asked the Minister for the Environment whether he intends giving any assistance to people who have private supplies of water in view of the abolition of water charges for people on local authority schemes. [1140/97]

248. Éamon Ó Cuív asked the Minister for the Environment the steps, if any, he intends to take to ensure that people whose water supply is provided by group water schemes will not have to pay any water charges in view of his abolition of water rates for people being supplied by local authority water schemes; and if he will make a statement on the matter. [1141/97]

283. Mr. Killeen asked the Minister for the Environment whether the same arrangements will apply to group water scheme members as to local authority domestic water customers. [1696/97]

Minister for the Environment (Mr. Howlin): I propose to take Questions Nos. 29, 30, 43, 67, 71, 74, 246, 247, 248 and 283 together.

“Better Local Government — A Programme for Change”, which I published last December, lays down a comprehensive agenda for change which features increased devolution of responsibility to local authorities and a new funding system under which local authority charges for domestic water and sewerage services are being abolished. In Galway yesterday, I announced a package of specific measures in relation to group and small public water and sewerage schemes which follow from the decisions in the programme.

In line with the abolition of domestic charges, local authorities will no longer charge group water schemes for the supply of domestic water. This will lead to a considerable reduction in the amount of charges made to the members of groups supplied from public schemes. Members of all group schemes will, of course, continue to benefit from income tax relief at the standard rate [1060] in respect of charges paid to groups up to £150 per year.

I am very much aware that there are a large number of rural households served by group schemes which have their own supplies and that a significant number of these supplies are not up to standard. I am now, for the first time, making a special capital provision of £5 million in 1997 to establish a new multi-annual programme of works by local authorities to enable them to take over existing group water and sewerage schemes, thus remedying substandard systems and eliminating domestic charges for the group scheme members concerned.

I have also decided to proceed immediately with arrangements for the devolution from my Department to the local authorities of full responsibility for the administration of group scheme grant applications for new schemes or the extension or upgrading of existing schemes. This is in keeping with the recommendations of the Devolution Commission.

As a final element of the package, full responsibility for small public water and sewerage schemes will also be devolved to local authorities and capital funding in the form of block grants will be made available to them for this purpose in 1997 and future years.

This overall package of measures means that a total of £15 million, plus £3 million from EU Structural Funds to support group scheme development, will be made available to local authorities in 1997 in block grant form to finance group and small public schemes, including the taking over and refurbishment of existing schemes. It will be a matter for local authorities to decide on priorities among these categories of works, subject to meeting commitments on foot of approvals already granted. Detailed arrangements for implementation of the package will be notified to local authorities shortly.

Additional current costs incurred by local authorities in the implementation of the various measures will be among the factors taken into account in determining distributions from the equalisation fund being established this year.

I am confident that the foregoing measures will be welcomed by rural communities who rely on group schemes. They also represent a further practical step towards devolving more responsibility and decision-making to local authorities. There are no proposals to provide public funds to meet the running costs of individual water and sewerage facilities. However, many who currently rely on these will benefit over time from the expanding network of public and group schemes.

[1061]

31. Mr. B. Smith asked the Minister for the Environment if his attention has been drawn to the urgent need to provide a substantial increase in the 1997 allocation to Cavan County Council for the repair of regional and county roads; and if he will make a statement on the matter. [1525/97]

Minister for the Environment (Mr. Howlin): The non-national road grants allocation to Cavan County Council this year amounts to £6,796,000. This is an increase of some £850,000, or 14 per cent, on the 1996 figure.

32. Dr. Woods asked the Minister for the Environment the current position in relation to the number and percentage of women in each grade in local administration; and if he will make a statement on the matter. [24664/96]

Minister for the Environment (Mr. Howlin): I propose to circulate in the Official Report a tabular statement setting out the information requested. The information is based on staffing returns supplied to my Department in respect of the position at 31 December 1995.

Local authorities are committed to a policy of equal opportunity which is contained in a statement of equal opportunity issued to all local authorities in February 1990 by the local government staff negotiations board. The statement was drawn up following negotiations involving local authority and health board management and unions and the Departments of the Environment and Health. It covers matters such as recruitment, selection, training and development. Notwithstanding the commitment to equality of opportunity which I have outlined, there is, as has recently been indicated in “Better Local Government — A Programme for Change”, a clear gender imbalance in the management levels in the local authority service. It is, therefore, proposed that a special development programme will be established for women managers, which will be specifically targeted at ensuring that a greater proportion of women are in a position to compete effectively for posts leading to management levels.

The Local Appointments Commission has already made considerable strides in ensuring that there is increasing participation of women on its interview boards. Local authorities are being asked to place considerable greater emphasis on this important aspect of recruitment policy too.

Finally, a working group representative of my Department and the City and County Managers' Association is reviewing equality matters generally in the local authority service, taking account of the recommendations of the Oireachtas Joint Committee on Womens' Rights on women in management in local administration. I understand that the review is nearing completion and that a report will be available to me shortly. I intend at that stage to issue further guidance on a range of equality related matters to the local authorities.

[1062] Women in Local Authority Grades at 31 December 1995

	Number	%
Clerical Administrative Grades
Grade
City/County Manager	0	0.00
Assistant City/County Manager	0	0.00
County Sec./Asst. Town Clerk	2	7.40
Finance Officer	1	3.70
Town Clerk	12	20.00
County/City Librarian	10	35.71
Administrative Officer	24	15.19
Senior Staff Officer	60	22.56
Staff Officer	201	45.37
Assistant Staff Officer	384	62.85
Clerical Officer	1,317	73.31
Clerk/Typist	1,236	98.96
Clerical Assistant	31	88.57
Executive Librarian	4	36.36
Assistant Librarian	47	58.75
Senior Library Assistant	104	73.14
Library Assistant	257	78.35
Branch Librarian	221	94.44
Rate Collector	1	2.44
Rent Collector	5	3.35
Rent/Rate Collector	0	0.00
Revenue Collector	53	14.17
Storekeeper Grade A	0	0.00
Storekeeper Grade B	0	0.00
Senior Legal Assistant	7	36.84
Legal Assistant	22	62.86
Social Worker	27	71.05
Housing Welfare Officer	22	84.62
County Development Officer	0	0.00
Other Cler./Admin.	366	50.55
Total	4,413	63.25
Professional Technical Grades
Grade
County Engineer	0	0.00
County Architect	0	0.00
City Engineer	0	0.00
City Architect	0	0.00
Law Agent	2	25.00
Deputy/Senior Engineer	0	0.00
Borough Engineer	0	0.00
Town Engineer	0	0.00
Senior Architect	2	66.67
Senior Executive Engineer	3	1.21
Senior Executive Planner	8	16.67
Senior Executive (Planning)	2	8.70
Senior Executive Architect	1	3.33
Executive Engineer	20	3.44
Executive Planner	20	32.79
Executive Architect	5	18.52
Chief Fire Officer	0	0.00
Assistant Chief Fire Officer (Oper.)	0	0.00
Assistant Chief Fire Officer (Prev.)	1	4.00
Assistant Engineer	31	12.35
Assistant Planner	29	52.73
Assistant Architect	6	31.58
Assistant Fire Officer (Prev.)	4	30.77
2nd Fire Officer	0	0.00
Executive Dr. /Technician	2	2.86
Dr. /Technician Grade 1	21	8.43
Dr. /Technician Grade 2	40	11.98
Graduate Engineer	21	23.60
Clerk of Works	1	0.92
Other Prof./Tech.	56	8.05
Total	275	8.89
Non-Officer Staff
Grade
Foreman (Craftsman)	2	0.90
Assistant Foreman (Craftsman)	1	0.79
Chargehand (Craftsman)	1	0.90
[1063]Craftsman	6	0.35
Craftsman's Mate	0	0.00
Apprentice	1	1.28
Road Overseer	0	0.00
Labourer/General Op.	51	0.79
Light Equipment Op. Category 2	2	0.94
Refuse Collector	0	0.00
Ganger	2	0.25
Foreman (Category 5)	0	0.00
Driver Plant Op. A	0	0.00
Driver Plant Op. B	0	0.00
Mobile Library Assistant/Driver	0	0.00
Waterworks Caretaker Grade 1	1	1.33
Waterworks Caretaker Grade 2	0	0.00
Waterworks Caretaker Grade 3	0	0.00
Waterworks Caretaker Grade 4	0	0.00
Waterworks Caretaker Grade 5	1	1.89
Firefighter	11	0.42
Other Non-Officers	1,430	32.91
Total	1,509	7.62

33. Mr. McCreevy asked the Minister for the Environment the plans, if any, he has to abolish service charges. [24143/96]

58. Mr. N. Treacy asked the Minister for the Environment the exact charges which he submitted to Government for abolition and which were announced in his public statement on 19 December 1996; and if he will make a statement on the matter. [1519/97]

Minister for the Environment (Mr. Howlin): I propose to take Questions Nos. 33 and 58 together.

“Better Local Government — A Programme for Change” provides for a new funding system for local authorities, under which, inter alia, charges by local authorities for domestic water and sewerage services will not be levied in respect of 1997 or following years. Domestic refuse charges will remain and commercial service charges are not affected. Domestic water and sewerage charges due in respect of 1996 and previous years will continue to be payable.

34. Kathleen Lynch asked the Minister for the Environment the number of cases currently pending before the European Commission in respect of alleged breaches by Ireland of EU Environmental Directives; whether he has satisfied himself that the European Commission has been supplied with all relevant information; and if he will make a statement on the matter. [1575/97]

Minister for the Environment (Mr. Howlin): The information requested is summarised in a table which I propose to circulate in the Official Report. In one case, Commission proceedings are pending in the European Court of Justice. One reasoned opinion has been delivered under Article 169 of the Treaty and in a further eight [1064] cases, the Commission has sought observations prior to the possible delivery of reasoned opinions.

Ireland's record of compliance with EU environmental legislation is creditable, as evidenced by recent Commission reports on implementation of community legislation. It is our policy to respond constructively and substantially to correspondence from the Commission in this regard with a view to minimising formal legal proceedings.

Court Proceedings
Directive
Environmental Impact Assessment of certain public and private projects (85/337)
Reasoned Opinion
Directive
Volatile organic compound (VOC) emissions (94/63/EC)
Article 169 letters
Directive
The conservation of natural habitats (92/43/EC).
Pollution caused by certain dangerous substances discharged into the aquatic environment (76/464/EC).
Air pollution by ozone (92/72/EC).
Batteries and accumulators (91/157/EC).
Protection of waters against pollution caused by nitrates from agricultural sources (91/676/EC).
Protection of animals used for experimental and other scientific purposes (86/609/EC).
Packaging and packaging waste (94/62/EC).
Emission of gaseous and particulate pollutants from diesel engines for use in vehicles (96/166/EC).

35. Mr. M. Brennan asked the Minister for the Environment the plans, if any, he has to address the problems faced by landlords and tenants incurred at the hands of drug dealers and abusers in the context of private rented accommodation. [1562/97]

Minister of State at the Department of the Environment (Ms McManus): Problems faced by landlords or tenants involving criminal activity by drug dealers or abusers are matters for the Garda. Terms and conditions of tenancies in private rented accommodation are a matter for agreement between the landlord and tenant. Where a tenant is in breach of the terms of a lease or other tenancy agreement it is open to the landlord under the landlord and tenant code, which is the responsibility of the Minister for Justice, to seek termination of the tenancy.

The Housing (Miscellaneous Provisions) Bill, 1996, which was published last December, is primarily designed to address problems arising from drug dealing and serious antisocial behaviour in the context of local authority housing. However, the Bill will also give health boards discretion to [1065] refuse or withdraw SWA housing assistance in respect of private rented accommodation in the case of certain persons who have been evicted or excluded from, or refused, local authority housing on grounds of serious anti-social behaviour such as drug dealing.

36. Ms O'Donnell asked the Minister for the Environment his views on the recently published report of the Irish Planning Institute confirming that the local authorities planning service is chronically understaffed; and if he will make a statement on the matter. [1530/97]

Minister for the Environment (Mr. Howlin): The allocation of staff to the various local authority service areas and the creation of additional posts, where considered necessary, taking account of local needs and priorities, is a matter for the local authorities concerned. Following a major relaxation of controls in the staffing area, which I introduced in March of last year, local authorities are generally free, within broad parameters, to decide their own staffing levels. In these circumstances, I do not propose to comment on the report published by the Irish Planning Institute which makes a case for the employment of greater numbers of planners by individual authorities.

38. Mr. Collins asked the Minister for the Environment the numbers of litter fines imposed nationally in 1996; and if he will provide a table of such figures by local authority area for 1996. [1564/97]

Minister for the Environment (Mr. Howlin): The information sought is not yet available in my Department. Local authorities have, however, been requested to forward to my Department at an early date details of litter control activity in 1996, including information on fines.

39. Dr. O'Hanlon asked the Minister for the Environment the plans, if any, he has for each urban council to collect motor tax in their own area in view of the abolition of water charges and their replacement by motor taxation; and if he will make a statement on the matter. [1429/97]

Minister for the Environment (Mr. Howlin): I have no such plans. Provision will, however, be made by law to ensure that urban authorities receive an equitable share of the income from motor taxation collected by the county councils.

40. Mr. Nolan asked the Minister for the Environment the amount of funding received in motor taxation by each local authority for each of the years 1995 and 1996. [1174/97]

[1066]Minister for the Environment (Mr. Howlin): Details of the amounts of motor tax collected by each licensing authority for 1995 are contained in the reply to Question No. 308 of 25 July 1996. The figures for 1996 set out in the tabular statement to be circulated in the Official Report indicate the gross lodgments to the local motor tax accounts. They include receipts from sources such as driver licence duties and vehicle testing fees which will also be assigned to local authorities under the new arrangements set out in Better Local Government — A Programme for Change.

	(1)	(2)	(3)
Local Authority	Net Transfers to Central Motor Tax Account	Administrative costs retained locally	Gross Revenue lodged to local motor tax account
County Councils	£	£	£
Carlow	3,332,000	208,352	3,540,352
Cavan	3,999,800	301,546	4,301,346
Clare	6,745,490	500,864	7,246,354
Cork	32,339,240	1,543,291	33,882,531
Donegal	7,948,764	549,793	8,498,557
Galway	13,334,234	720,121	14,054,355
Kerry	9,041,200	553,643	9,594,843
Kildare	10,056,000	564,804	10,620,804
Kilkenny	5,803,475	374,964	6,178,439
Laois	3,982,700	272,494	4,255,194
Leitrim	1,674,333	176,526	1,850,859
Limerick	9,054,276	494,387	9,548,663
Longford	2,205,100	190,021	2,395,121
Louth	5,990,842	426,373	6,417,215
Mayo	7,516,182	467,294	7,983,476
Meath	8,741,275	575,440	9,316,715
Monaghan	4,113,835	292,287	4,406,122
Offaly	3,972,334	277,242	4,249,576
Roscommon	3,940,897	242,018	4,182,915
Sligo	4,169,786	324,037	4,493,823
Tipperary N.R.	4,673,344	299,147	4,972,491
Tipperary S.R.	5,587,100	319,229	6,176,329
Waterford	3,567,800	330,005	3,897,805
Westmeath	4,584,400	297,922	4,882,322
Wexford	8,362,077	554,231	8,916,308
Wicklow	7,412,900	338,695	7,751,595
County Borough Corporations
Dublin	69,865,126	5,823,708	75,688,834
Limerick	2,800,986	280,830	3,081,816
Waterford	2,834,900	182,095	3,016,995
Total	257,920,396	17,481,359	275,401,755

41. Mr. M. McDowell asked the Minister for the Environment the current position in respect of the issuing of licences for private contractors involved in waste collection as envisaged under the Waste Management Act, 1996; and if he will make a statement on the matter. [1536/97]

Minister for the Environment (Mr. Howlin): I intend shortly to make regulations under section 34 of the Waste Management Act, 1996 in [1067] relation to the grant by local authorities of permits to private waste collectors.

42. Kathleen Lynch asked the Minister for the Environment the progress, if any, which has been made towards reducing the response time for requests under the environment regulations; and if he will make a statement on the matter. [1574/97]

Minister for the Environment (Mr. Howlin): Under the updated Access to Information on the Environment Regulations, 1996, the time for responses to requests for environmental information has been reduced from two months to one month, as a general rule, with a provision for extension by a further month in cases of particular difficulty. I will be keeping these regulations under review in the context of the new freedom of information legislation to ensure consistency between the provisions on access to environmental information and the general arrangements for freedom of information.

44. Mr. McCreevy asked the Minister for the Environment if he will examine the possibility of allowing the transfer of motor taxation from one vehicle to another by the same owner in view of the fact that many vehicles are sold, traded or scrapped prior to the expiration of a current motor taxation disc; and if he will make a statement on the matter. [24145/96]

Minister for the Environment (Mr. Howlin): The legal provisions governing the motor tax system are based on associations between the particular vehicle and its taxation category, determined by reference to factors such as engine size, vehicle weight, type of vehicle and the purposes for which it is used. Accordingly, the tax disc issued contains details of these criteria and is vehicle specific, and all other administrative procedures and computer systems are based on this approach.

I have no proposals to alter the system in the manner suggested. I should point out, however, that there is already provision in the motor tax code for the making of a refund in respect of the unexpired period of a licence, tax disc, subject to certain conditions, in respect of a vehicle which has been stolen, scrapped or destroyed.

46. Mr. M. McDowell asked the Minister for the Environment the environmental priorities which were advanced during Ireland's Presidency of the EU; and the extent to which the greening of Maastricht was achieved. [1528/97]

[1068]Minister for the Environment (Mr. Howlin): The Irish Presidency set itself the overall objective of both actively and efficiently promoting the internal agenda of the Environment Council and co-ordinating a leading EU role in wider international business affecting the environment and sustainable development. Business finalised by the Environment Council under the Irish Presidency included:

—political agreement on a common position on the review of the Community's Fifth Environment Action Programme;

—a Council resolution on a strategy for waste management to guide Community waste policy over the coming years;

—agreement on the proposal for amending Council Directive 90/219/EEC on the contained use of genetically modified microorganisms;

—political agreement on the amendment of Regulation 259/93 to provide for a ban on the exports of hazardous waste to develop countries for recovery;

—major Council conclusions relating to the development of an EU position in preparation for the Special Session of the General Assembly of the United Nations (UNGASS) to be held in June 1997, which will review the implementation of Agenda 21 and related outcomes of UNCED.

In addition, the Environment Council began and advanced work on important proposals concerning quality of petrol and diesel fuels; measures to be taken against air pollution by emissions from motor vehicles; the establishment of common rules and procedures to be applied to certain, i.e. green, shipments of waste to certain non-OECD countries; quality of water for human consumption — drinking water; and a Community action programme to support non-governmental organisations working in the environmental protection area.

The Irish Presidency also led and co-ordinated a strong EU input to a number of important international activities concerned with global environmental issues. These included the following major conferences at which I led the EU delegation: the second conference of the parties to the framework convention on climate change, in July 1996; the third conference of the parties to the biodiversity convention, in November 1996; and the eighth meeting of the parties to the Montreal Protocol on substances that deplete the ozone layer, in November 1996.

Overall, the Irish Presidency endeavoured to ensure that the role of the European Union is maintained as a leading force for progress at international level in dealing with global environmental problems and the promotion of sustainable development.

In the Inter-Governmental Conference (IGC), environmental issues were discussed on the basis [1069] of papers prepared by the Irish Presidency. The general outline for a draft revision of the treaties prepared by the Presidency and welcomed by the European Council on 13 and 14 December 1996, enhances the environmental provisions of the Treaty in two main ways: first, by including in the Treaty an explicit formulation of the Union's commitment to sustainable development, and, secondly, by including a strengthened horizontal provision to ensure that environmental considerations are integrated in the sectoral policies of the Community.

The Irish national delegation also tabled a discussion document on the possibility of strengthening the nuclear safety provisions of the Euratom Treaty in the context of the further enlargement of the European Union.

47. Ms Keogh asked the Minister for the Environment the number of deaths from house fires in 1996; and if he intends to initiate any measures to avert fatal fires. [1531/97]

Minister for the Environment (Mr. Howlin): Fire statistics supplied to my Department by the fire authorities indicate that, in 1995, 38 fatalities occurred in fires attended by fire brigades, of which 32 were in houses or flats; figures for 1996 are not yet available.

As regards measures to reduce the risk of fires, the Building Control Act and the building regulations prescribe detailed fire safety requirements for new buildings, including houses, and for material alterations or changes of use. Technical guidance documents which accompany the regulations contain comprehensive guidance on matters such as means of escape, including the provision of smoke alarms, internal and external fire spread, and access and facilities for the fire brigade. Following a review by my Department, it is intended to publish new technical guidance shortly; this will require improved standards in many aspects of new buildings, including fire safety provisions.

The National Safety Council, which has responsibility for promoting fire safety, has given a high profile in its campaigns to fire safety in the home. Particular stress has been placed on the value of smoke alarms which, if properly installed and maintained, can provide early warning of fire and save lives. The council recently launched a new national radio advertising campaign, “A Minute for Fire Safety”, which emphasises the simple routine tasks which should be carried out each night to guard against fire.

In the last analysis, fire safety in the home is the responsibility of the individual householder. Better awareness of the dangers of fire and of fire hazards together with simple common sense fire prevention practices, can help to prevent and reduce the number of fires and the consequent tragic fatalities and injuries.

[1070] As regards the services provided by the fire authorities, improvements have been made on a comprehensive basis in the fire services over recent years covering equipment, organisation and staffing, and the legislative framework.

Capital investment by the State since 1981 has resulted in the provision of over 90 new or reconstructed fire stations, over 320 fire appliances and a wide range of emergency equipment, as well as major improvements in mobilisation and communication systems. In this regard, three regional mobilisation and communication control centres at Limerick, Castlebar and Dublin are either already in operation or being developed to handle all emergency calls from the fire services.

Major improvements have taken place in the training of fire service personnel. Training facilities have been provided at several centres around the country to facilitate the training of brigades locally. To complement this local training, the Fire Service Council has, since 1983, held almost 200 training courses for over 3,000 local fire officers.

A series of codes of practice and guidelines have been issued by my Department in recent years giving advice on fire safety in places of assembly, hotels and guesthouses, flats and apartments, and nursing homes. Work is continuing on the preparation of further guidance.

48. Mr. Collins asked the Minister for the Environment the arrangements he has made, if any, as chairman of the Government committee on Sellafield, to meet UK Environment Secretary, John Gummer, in view of the new evidence produced regarding NIREX. [1565/97]

Minister for the Environment (Mr. Howlin): I refer to the reply to Question No. 26 on today's Order Paper.

49. Mr. N. Treacy asked the Minister for the Environment if he will make a supplementary allocation to Galway County Council in view of the recent harsh weather conditions and the serious damage that has been done to roads by both frost and snow in order to deal with the serious road conditions in many parts of the county; if so, the date on which this will be done; the amount of supplementary money to be allocated in this regard; the official amount of money being allocated for roadworks in County Galway in 1997; if his attention has been drawn to the gravity of the situation; and if he will make a statement on the matter. [1538/97]

Minister for the Environment (Mr. Howlin): The 1997 non-national road grants allocation to Galway County Council is £9.892 million, an increase of £1.329 million or 16 per cent on the 1996 figure. Total non-national road grant allocations in 1997 are at an all-time high of nearly [1071] £173 million — up by nearly £26 million on the 1996 figure. I know from my visit to Galway yesterday that these historically high allocations have been widely welcomed by local authorities.

50. Mr. Doherty asked the Minister for the Environment if he will publish the names of the local authorities surveyed in the audits carried out by the value for money unit in his Department. [1568/97]

231. Mr. Dempsey asked the Minister for the Environment if he will ensure that all meetings are open to the public and publish the names of councils surveyed by the value for money unit in his Department in the interest of openness and transparency in local government. [1797/97]

Minister for the Environment (Mr. Howlin): I propose to take Questions Nos. 50 and 231 together.

As outlined recently in “Better Local Government — A Programme for Change”, the role of the value for money (VFM) unit of my Department will be enlarged in terms of scope and application. With the experience gained from projects already completed, the unit will be in a position to undertake more comprehensive and in-depth analysis of a wider range of local authority activities. Value for money audits will be placed on a statutory basis and, on foot of this, it is proposed that the VFM unit will publish full details of the results of its work. In addition, it is proposed to identify a range of financial performance indicators against which local authorities will be required to measure their performance and publish the results; the purpose will be to identify best practice and encourage individual local authorities to improve their performance levels.

I intend, in the near future, to bring forward comprehensive regulations which will modernise and consolidate the law on local authority meetings and procedures. These will include a statutory right for members of the public to attend council meetings.

51. Mr. O'Malley asked the Minister for the Environment the reason for the delay in sanctioning funding under the EU co-financed scheme of grants for an application submitted by Galway Corporation in respect of work on the West Distributor Road, including the provision of a roundabout at the junction of Bishop O'Donnell Road and the proposed distributor road; and if he will make a statement on the matter. [1537/97]

Minister for the Environment (Mr. Howlin): Galway Corporation submitted two proposals for consideration for funding in 1997 under the EU co-financed scheme of specific improvement [1072] grants on non-national roads which are of economic benefit and help generate employment: one for the construction of the Western Distributor Road involving expenditure of £1,003,246 this year and the other for the Docks-Lough Atalia Road involving 1997 expenditure of £312,830. Selection of projects under this scheme must be based on the strict EU eligibility criteria, the need to prioritise projects and the competing demands from different areas on the limited funds available.

The corporation was recently allocated non-national road grants of £526,000 for 1997, including a grant of £200,000 for the Docks-Lough Atalia Road project. It is open to the corporation to resubmit the application for the Western Distributor Road for consideration next year.

52. Ms O'Donnell asked the Minister for the Environment the number of local authorities which have to date produced a cultural development plan; and if he will make a statement on the matter. [20888/96]

Minister for the Environment (Mr. Howlin): The preparation of plans for the development of the arts and culture in their areas is a matter for individual local authorities. I understand that 20 authorities have prepared such plans and that a further six are in the process of doing so.

53. Mr. Leonard asked the Minister for the Environment the number of disabled persons grants approved in each county for the last accounting period. [24286/96]

Minister of State at the Department of the Environment (Ms McManus): The latest available information on activity under the disabled persons grants scheme, including the number of grants approved, is published in my Department's annual housing statistics bulletin, 1995, copies of which are available in the Oireachtas Library. Information in relation to 1996 is currently being sought from local authorities and will be contained in the 1996 bulletin, which is due for publication at the end of March.

55. Mr. Clohessy asked the Minister for the Environment his views on whether the establishment of a central register listing crashed vehicles would enhance consumer protection; and if he will make a statement on the matter. [1532/97]

Minister for the Environment (Mr. Howlin): I have no proposals to introduce a register of this kind. However, the possibility of noting writtenoff etc. vehicles on the computerised national vehicle file will be kept under review as developments of the file proceeds.

[1073]

56. Mr. Deasy asked the Minister for the Environment the steps, if any, being taken to provide a new library building at Dungarvan, County Waterford, at a location that has been provided by Waterford County Council and which has been approved by An Chomhairle Leabharlanna; and if he will make a statement on the matter. [1348/97]

Minister for the Environment (Mr. Howlin): I refer to the reply to Questions Nos. 137 and 153 of 2 July 1996. The position is unchanged.

57. Mr. Sargent asked the Minister for the Environment if his attention has been drawn to the increasing number of fires involving plastic storage tanks serving domestic and commercial premises; and if he will introduce as a matter of urgency rigorous standards to outlaw hazardous practices which have become the norm in this unregulated area. [22734/96]

Minister for the Environment (Mr. Howlin): The attention of my Department has been drawn to some reports of fires involving oil storage tanks. Responsibility for the formulation of standards for products such as oil storage tanks comes under the aegis of the Department of Enterprise and Employment. However, I propose to include provisions in relation to the spread of fire between buildings and such tanks in revised building regulations and accompanying technical guidance documents which are due to be published shortly. These provisions will take account of the characteristics of tanks constructed from different materials.

59. Mr. M. Brennan asked the Minister for the Environment if he will ensure that the loan limits available through the social housing schemes are raised to take account of the steep rise in house prices. [1563/97]

Minister of State at the Department of the Environment (Ms McManus): I am conscious of the impact of the rising housing market on the effectiveness of the social housing measures, including local authority house purchase loans and the shared ownership system, and I am keeping these under review.

60. Dr. Woods asked the Minister for the Environment if he will extend the disabled persons' adaptation scheme to include the provision of facilities for central heating which is so often essential for people with disabilities; and if he will make a statement on the matter. [23405/96]

[1074]Minister of State at the Department of the Environment (Ms McManus): Local authorities were informed by my Department in May 1996 that, for the purposes of determining the level of a disabled person's grant, the cost of providing central heating may be included in the overall cost of necessary adaptation works to a house to meet the accommodation needs of the disabled person. In circumstances where a proposed central heating system extends beyond the disabled person's accommodation, an appropriate apportionment of the cost is made.

61. Mr. Dempsey asked the Minister for the Environment if he has satisfied himself with the pace of the investigation by the Environmental Protection Agency into the pollution of the water supply in Nenagh, County Tipperary; and the steps, if any, he has taken to ensure full co-operation among the public bodies involved in the investigation. [1099/97]

Minister for the Environment (Mr. Howlin): I refer to the reply to Question No. 24 on today's Order Paper.

62. Miss Harney asked the Minister for the Environment the cost to the applicant of each integrated pollution control licence granted by the Environmental Protection Agency. [1533/97]

Minister for the Environment (Mr. Howlin): A schedule of integrated pollution control licence application fees is provided in the Environmental Protection Agency (Licensing Fees) (Amendment) Regulations, 1996 (S.I. No. 239 of 1996). The other costs which may be associated with making a licence application will vary with individual cases and are a matter for the applicant concerned.

63. Mr. Molloy asked the Minister for the Environment if his attention as been drawn to the concern regarding the levels of pollution in the waters of Lough Corrib as expressed in the O'Sullivan report entitled, Lough Corrib - a Cause for Concern; and the steps, if any, he proposes to take to deal with this matter. [1389/97]

Minister for the Environment (Mr. Howlin): I refer to the reply to Question No. 25 on today's Order Paper.

64. Mr. Connolly asked the Minister for the Environment the response he has made to the request by Galway Corporation to clarify his position in relation to Mutton Island. [1566/97]

[1075]

230. Mr. Dempsey asked the Minister for the Environment if he has responded to the request from Galway Corporation to clarify his position in relation to Mutton Island. [1796/97]

277. Mr. Molloy asked the Minister for the Environment the current position regarding the proposed Mutton Island sewerage treatment and disposal plant in Galway; if a date has been agreed for a meeting with a delegation from Galway Corporation to discuss the matter; and if he will make a statement on the matter. [1605/97]

Minister for the Environment (Mr. Howlin): I propose to take Questions Nos. 64, 230 and 277 together.

In my letter to the mayor of Galway on 3 October 1996, I suggested that the corporation should consider the option of a treatment plant based on alternative technology that would allow facilities to be built underground on Mutton Island without the need for a permanent causeway. For reasons which I have publicly explained, that remains my preferred option.

I have since received a reply to that letter from Galway Corporation stating its preference for an overground plant serviced by a causeway. This option is currently under legal challenge.

The corporation has also asked in its letter that I agree to a twin-track approach which would involve the undertaking of two detailed designs for different projects, one of which would, by definition, never be constructed.

In the circumstances, and bearing in mind the legal proceedings, I do not consider that it would be justifiable to approve such a twin-track approach and the major additional planning and design costs which this would involve. I will be writing to the corporation to this effect. However, with a view to developing an agreed approach to the matter, I intend to accede to the request for a meeting with a deputation from Galway City Council.

65. Mr. O'Malley asked the Minister for the Environment the plans, if any, he has to amend the planning laws with a view to speeding up the planning process; and if he will make a statement on the matter. [1529/97]

Minister for the Environment (Mr. Howlin): The planning and development code aims to strike an appropriate balance between the need, in the public interest, for full consideration of a planning application and the wish of the applicant for an early decision. Changes to the system under the Local Government (Planning and Development) Act, 1992, have facilitated earlier decisions on planning applications and appeals, without diminution in the quality of consideration given to applications. The new national agreement, Partnership 2000 for Inclusion, Employment and Competitiveness indicates that further [1076] consideration will be given to streamlining the planning system in order to minimise delays and uncertainties, and to introducing accelerated procedures for major projects involving significant employment and added value.

66. Miss Quill asked the Minister for the Environment his views on the proposals contained in the Devolution Commission's interim report; and if he will make a statement on the matter. [1391/97]

292. Mr. Molloy asked the Minister for the Environment his views on the proposals contained in the Devolution Commission's interim report; and if he will make a statement on the matter. [1705/97]

Minister for the Environment (Mr. Howlin): I propose to take Questions Nos. 66 and 292 together. The Government's response to the first interim report of the Devolution Commission was set out in a Government statement issued on 1 August, 1996 by the Government Information Service; copies of the statement were laid before both Houses.

“Better Local Government — A Programme for Change”, published on 19 December 1996 takes account of the Government statement and outlines a major programme for the renewal of local government; copies of the programme were distributed to all Deputies and Senators and laid before both Houses. The work of the Devolution Commission, which operates under the aegis of the Department of the Taoiseach, is ongoing and I understand that a second interim report is in preparation.

68. Mr. Sargent asked the Minister for the Environment if he will promote the composting of garden and vegetable waste as recommended to the Oireachtas Joint Committee on Sustainable Development; and, if so, when regulations will be drawn up to require composting rather than landfill of such putrescible waste. [1573/97]

Minister for the Environment (Mr. Howlin): It is stated objective of national recycling policy to divert some 100,000 tonnes of organic waste away from landfill by means of composting by 1999. The new scheme of waste recycling grants accordingly encourages the development of composting systems, and a number of local authority proposals on these lines were approved by me in 1996, including a major one for Limerick city. This policy of encouraging composting arrangements will be continued. Consideration will be given at a later stage to the feasibility of supplementing the policy with a regulatory requirement on composting.

[1077]

69. Mr. E. Byrne asked the Minister for the Environment the number of new library projects funded by his Department in each of the years from 1990 to 1996; the further plans, if any, he has for developing the library infrastructure; and if he will make a statement on the matter. [1577/97]

Minister for the Environment (Mr. Howlin): Library authorities were required in 1995 to prepare library development programmes in accordance with guidelines issued by my Department. These programmes will help to form a framework for the future development of the library service. Grants for the development of the service are funded from the national lottery surplus and are being maintained at as high a level as possible consistent with other demands. The number of library projects which received capital grants from my Department in the period 1990 to 1996 is set out in the following table:

Year	Number of Projects
1990	10
1991	12
1992	7
1993	10
1994	10
1995	15
1996	16

70. Mr. B. O'Keeffe asked the Minister for the Environment if he will provide funding for a link road from Ardarostig to Melbourne Road in County Cork to alleviate the traffic problems in that area. [23684/96]

228. Mr. Martin asked the Minister for the Environment if he will make funds available to enable Cork Corporation commence construction of the link road from Ardrostig Cross to Curraheen in order to alleviate traffic congestion in residential areas in Bishopstown, Cork. [1943/97]

Minister for the Environment (Mr. Howlin): I propose to take Questions Nos. 70 and 228 together. This link road, if constructed, would be a non-national road and responsibility for its construction and financing would normally be a matter for Cork Corporation, relying on its own resources and the annual discretionary grant provided by my Department.

I have recently allocated £1.538 million to Cork Corporation by way of grants for non-national roads, including a discretionary grant allocation of £1.088 million. There are no funds available to me from which a further special grant could be made to the corporation. It would be open to the corporation to consider whether to apply for funding for the road under the EU co-financed scheme of grants for specific improvements work [1078] on non-national roads which are of economic benefit and help generate employment. No such application was submitted by the corporation in respect of 1997.

72. Miss Coughlan asked the Minister for the Environment if he will consider holding general elections on a Friday or a weekend in order that students and young people living away from home, who are registered in their home constituency, may travel home to vote. [1177/97]

Minister for the Environment (Mr. Howlin): The question of weekend voting is one of a number of electoral matters which I have referred for consideration to the Oireachtas Select Committee on Finance and General Affairs.

73. Mr. B. O'Keeffe asked the Minister for the Environment the total amount of money expended on consultancies in the past two years; the total number of reports from these consultancies; and the cost of such reports. [1497/97]

Minister for the Environment (Mr. Howlin): Payments totalling £2,974,431 were made by my Department in respect of consultancies during 1995 and 1996. Nearly half of this amount was paid in respect of two major projects — the development of the new national vehicle and driver file, and the Dublin region water supply strategic study. In all, the consultancies involve the production of 77 reports. The final cost to my Department is expected to be marginally in excess of £3 million.

75. Mr. Callely asked the Taoiseach the number of Bills published by his Department in 1996; the comparative figure in this regard for 1993; and the Bills which will be published in the first three months of 1997. [25212/96]

The Taoiseach: No Bills were published by my Department in 1996, while in 1993 one Bill, the Statistics Bill, was published. If possible the cabinet confidentiality Bill will be published during this year.

76. Mr. Callely asked the Taoiseach the total amount of debts owed by semi-State bodies under the aegis of his Department at the end of November 1996; the comparative figures in this regard for each of the years 1990 and 1993; and if he will make a statement on the matter. [25213/96]

The Taoiseach: There were no debts owed by bodies under the aegis of my Department at the end of November 1996.

[1079] In November 1992 ADM Limited on its establishment, acquired a temporary overdraft facility of £1,382,800 while awaiting drawdown of EU funding under the global grant for local development. This facility was cancelled in February 1993 when EU funding was received. A temporary overdraft facility was again availed of at end of 1996 to facilitate funding under the local urban and rural development operational programme. This overdraft will be cancelled when EU funds are received within the next month.

[1080]

77. Mr. Callely asked the Taoiseach the persons appointed by him or by the Minister(s) of State at his Department as programme managers, advisers, assistants or back-up staff either in his Department or in constituency offices; the annualised remuneration paid to these staff; the names of individuals, groups or companies which have undertaken or have been approved to undertake full-time, part-time or casual consultancies, reviews, examinations or analyses or any public relations service on his behalf or on behalf of the Minister(s) of State at his Department; the actual and estimated cost for 1997 in this regard; the persons, companies, consultants or otherwise he or the Minister(s) of State at his Department have appointed to carry out work on behalf of semi-State bodies under the aegis of his Department; the reviews, consultancies or reports which he or the Minister(s) of State at his Department have commissioned or are due to commission; and the full costs in respect of all of these matters to his Department. [25214/96]

The Taoiseach: The information sought by the Deputy is contained in the following schedules.

Schedule I

Annualised remuneration of contract staff in the Offices of the Taoiseach and Ministers of State

Taoiseach's Private and Constituency Offices (8)
Staff Salaries 1996	£
Seán Donlon, Special Adviser/Programme Manager	81,896
Roy Dooney, Special Adviser	44,052
Gerry Boyle, Economic Policy Adviser	48,165
Kevin Gilna, Personal Assistant	23,289
Dee Johnstone, Personal Assistant	24,695
Ruth Cashill, Personal Secretary	13,207
Deirdre Concannon, Personal Secretary	18,797
	254,101
Minister of State's Private and Constituency Offices (12)
Staff Salaries 1996	£
Chris Macey, Special Adviser (Minister of State Mitchell)	26,271
Brian Murphy, Personal Assistant (Minister of State Mitchell)	27,847
Máiread Hartnett, Personal Secretary (Minister of State Mitchell)	16,306
Seán Lynch, Civilian Driver (Minister of State Mitchell)	13,584
John Staunton, Civilian Driver (Minister of State Mitchell)	13,584
Jim O'Callaghan, Special Adviser (Minister of State Carey)	34,356
Bernadette Dillon, Personal Secretary (Minister of State Carey)	15,532
Terry Wilson, Civilian Driver (Minister of State Carey)	13,584
Frank Cullinan, Civilian Driver (Minister of State Carey)	13,584
Paddy O'Toole, Special Adviser (Minister of State Higgins)	45,074
Margaret Brady, Personal Assistant (Minister of State)	19,593
Brid Coen, Personal Secretary (Minister of State)	11,656
	250,971
Press Office (5)
Staff Salaries 1996	£
Shane Kenny, Government Press Secretary	56,114
John Foley, Deputy Government Press Secretary and Head of GIS	47,441
Marie McHale, Personal Secretary to Deputy Government Press Secretary	24,111
Tony Heffernan, Assistant Government Press Secretary	33,626
Lorraine Glendenning, Personal Secretary to Assistant Government Press Secretary	11,758
	173,050

[1081][1082] Schedule 2

Consultancies/Research/Other Services during 1996 in the Taoiseach's Department

		Actual Cost in 1996	Estimated Cost in 1997
	£	£	£
Mr. Kevin Whelan:
Consultant for Minister of State Doyle		5,000	10,000
Mr. Jim Kirby:
Consultant/Researcher for Minister of State Mitchell		9,920	10,000
Netting of Financial Contracts Bill — Legal advice:
Mr. John Cooke	420
Mr. Michael Collins	1,839
Mr. Michael Cush	508	2,767	nil
Arthur Anderson:
Balance due for Anderson report on financial procedures		2,239	nil
Mr. Padraig Golden:
Fee for attendance at interview		140	nil
Dr. Dermot Nally:
Consultancy in relation to cabinet confidentiality		600	2,000
Mr. Noel Dorr:
Consultancy fee for UN Carlsson Group		1,120	6,000
Mr. Jim Rowe:
Editing re-writing booklet of Government Achievements		1,200	nil
Commencements Ltd:
Workshop fee for SMI		1,484	nil
Deloitte and Touche:
SMI — Review of the Garda Síochána		180,290	nil
Price Waterhouse:
EAG — Review of the Irish Air Corps and Naval Service		140,245	35,000
National Anti-Poverty Strategy:
Seminar on disadvantaged urban areas
— consultancy by Andrew McLaren: preparation and presentation of document	450
—Nexus Research Co-Operative: reporting and editing of proceedings	484	934	nil
Galway County Council:
Recoupment for a study for a bridge at Knockferry/Kilbeg, Co. Galway
(Report by Harewood and Associates	6,885
Economic Study by Dept of Economics, TCD	2,500	9,835	nil
Langley Freeman Design:
Design consultant for SMI Newsletter		25,139	25,000
ACROBAT:
Design Work on Strategy Statement for the Department		3,706	2,500
EU Presidency:
Peter White:
Temporary Adviser for EU Presidency		15,114	nil
Brendan Matthews and Associates:
Design and printing of EU Presidency Bulletin		16,589	nil
Local Development:
Keating and Associates:
Ongoing PR consultancy with reports and presentations to Monitoring Committee
in relation to the Operational Programme for Local Urban and Rural
Development		20,000	4,000
Goodbody Economic Consultants:
Ongoing consultancy — external evaluator of the Operational Programme for
Local Urban and Rural Development		93,798	35,000
D & G Information Consultants:
Facilitation at Local Development Seminar (July '95)	3,243
Report on the Seminar	5,750	8,993	nil
Seminar on Estate Management (Local Development) in November 1995:
Ingrid McElroy — writing of report	700
Emer Dolphin — facilitation fee	180	880	nil
Services Industry Research Centre:
Ex-Ante Appraisal of URBAN		2,500	nil
Goodbody Economic Consultants:
Appraisal of the Action Plans submitted under the Operational Programme for URBAN		9,377	nil
[1083][1084]Western Development:
Centre for Adult and Community Education,
Maynooth College:
—Implementation of the Pilot Programme on the Integrated Provision of Public Services in Rural Areas		13,336	20,000
—Feasibility Study for Distance Learning		1,450	nil
Patrick F. O'Reilly and Co:
Legal advice in relation to the Western Development Partnership Board		1,906	nil
Langley Freeman Design:
Design of Report on the Interdepartmental Co-Ordinating Committee on Island
Development		8,129	nil
‘Communicating Europe’
Barrie Kidd Graphic Design:
Design of EU Calendar	3,219
Design of publication — Guide to European Funding	3,319	6,538	nil
Famine Commemoration:
Reality Design and Marketing Consultants:
Design of Famine Commemoration Concert Programme (Liverpool)		1,123	nil
Design Factory Sales:
Design of Famine Commemoration Information Booklet		1,391	nil
Stopforth, Bright, Anderson:
PA services for Liverpool Commemoration Concert		20,670	nil
Bodies under the Aegis of the Department
NESC:
Dr. C. Driver:
Report on Investment in Ireland		28,625	nil
Prof. P. Cooke:
Report on Networking for Competitive Advantage		18,385	nil
Graduate School of Business Studies, UCD:
Ongoing Study on Clusters		31,800	42,400
Prof. R. O'Donnell:
Consultancy fees for Strategy Report No. 99 and other studies		4,000	22,000
Professor T. Kochan:
Consultancy for Strategy Report No. 99		nil	5,000
Proposed Studies:
— Demographics and Settlement Patterns
— Public Sector Benchmarking		nil	30,600
Constitution Review Group:
Legal Research
Mr. Michael Conlon BL		600	nil
Ms Eileen Barrington BL		464	nil
Legal Consultancy
Honorarium to Prof. William Duncan		300	nil
Design
Butler Claffey Design		1,349	nil
IT consultancy		727	nil
All-Party Committee on the Constitution
Research Fees:
Professor Michael Laver		nil	500
John Coakley		nil	500
Forum for Peace and Reconciliation:		331,311
Dr. Colm Campbell (outstanding expenses)		311	nil
Ed Milliano (design consultancy)		182	nil
Total expenditure (estimated costs for 1997)		692,406	250,500

New consultancies proposed for 1997:

Efficiency Audit Group:

A review of local government expenditure on non-national roads is to be undertaken by the Efficiency Audit Group this year at an estimated cost of £165,000. Tenders have yet to be invited.

Devolution Commission

Landsdowne Market Research Ltd. — Survey on Attitudes to Local Government and Local Development — £51,055

Local Development & URBAN Programmes

The Monitoring Committee for the Operational Programme for URBAN was established in October, 1996. The Operational Programme states that an independent external evaluator will be appointed to assist the Monitoring Committee in regard to ongoing monitoring and evaluation of the Programme. It is likely that this appointment will be made in 1997 but the cost will not be known until the terms of reference are agreed by the Monitoring Committee and tenders are received.

Library/Information Facilities

Consultancy to develop the Library/Information Facilities in the Department. The estimated cost is £25,000.

[1085]

78. Mr. Callely asked the Taoiseach if he will give details of the EU Directives, Regulations and conditions in respect of which his Department has responsibility and which have not been transposed into or made part of Irish law; and the timescale for completion of the work in respect of each instrument. [25215/96]

The Taoiseach: There are no EU Directives, Regulations or conditions in respect of which this Department has responsibility requiring transposition into Irish law at present.

[1086]

79. Mr. Callely asked the Taoiseach the number of foreign trips made by him during 1996; the destination, purpose and duration of the trips; whether the Government jet or scheduled flights were used; the identity and designation of persons who accompanied him on each trip; the number, purpose and duration of each meeting attended by him on such trips; and if he will make a statement on the matter. [25216/96]

The Taoiseach: The information requested by the Deputy is outlined in the following schedule. It is not possible to give the precise duration of meetings which I attended on my foreign visits as these details have not been officially recorded. In general, bilateral meetings can last anything from 30 minutes to two hours. Major summits such as the European Council meetings involve a series of meetings which take place over a number of days.

Schedule to PQ No. 25216/96

Taoiseach's use of transport for foreign flights in 1996

Date	Destination	Purpose	Travelling Party (Taoiseach's Department)	Transport	Meetings
10-11 January	Paris	Funeral of President Mitterand	Taoiseach	Commercial flight	Funeral
			Mrs. Bruton
			G. Shaw, P/Sec.		Lunch hosted by President of France
			C. Haughey, Former
			Taoiseach
			G. FitzGerald, former Taoiseach
			Capt. McQuillan, Aide de Camp to the Taoiseach Security
16-18 January	Rome	Official visit to the Vatican	Taoiseach Mrs. Bruton	Commercial flight	1. Meeting with President of Italy.
			G. Shaw, P/Sec.		2. Meeting with Prime Minister of Italy.
			S. Kenny, Govt. Press
			Secretary		3. Meeting with President of Italian Senate.
			D. McCarthy, Asst.
			Secretary*		4. Visit to the Church of San Clemente and Irish College.
			Capt. McQuillan, Aide de Camp to the Taoiseach
					5. Dinner for Friends of Ireland and business people.
					6. Audience with the Pope.
					7. Meeting with the Secretary of State of the Vatican.
24-26 January	Strasbourg	Address to Parliamentary Assembly of Council of Europe	Taoiseach S. Kenny, Govt. Press Secretary	Ministerial Air Transport	1. Meeting with Secretary General and signature of the Convention on the Exercise of Children's Rights.
			A. Dunning, P.O.
			G. Shaw, P/Sec.
			Security		2. Meeting with President of the Assembly.
					3. Address to Parliamentary Assembly.
					4. Meeting with Vice-Presidents of Assembly, Political Leaders and Heads of delegation not represented in the Bureau of the Parliamentary Assembly.
[1087]					5. Lunch hosted by President of Assembly
					6. Reception.
					7. Dinner with Irish Parliamentary Delegation to the Assembly.
28 February	London	Anglo-Irish Summit	Taoiseach	Ministerial Air Transport	Anglo-Irish Summit meeting
			P. Teahon, Secretary
			S. Donlon, Programme Manager
			G. Shaw, P/Sec.
			S. Kenny, Govt. Press
			Secretary
28 February-4 March	Bangkok and Dubai	ASEM Summit	Taoiseach	Ministerial Air Transport and Commercial flight	1. ASEM Meeting.
			F. Murray, Secretary to the Government		2. Meeting with President of Indonesia.
			S. Kenny, Govt. Press Secretary		3. Meeting with President of South Korea.
			A Dunning, P.O. R. Dooney, Special		4. Meeting with Prime Minister of Malaysia.
			Adviser to the Taoiseach G. Shaw, P/Sec.		5. Meeting with Prime Minister of Singapore.
			C. Carey, Clerical
			Assistant
			Security
12-13 March	Cairo	Summit of Peacemakers	Taoiseach	Ministerial Air Transport	Summit of Peacemakers
			S. Hare, P.O.
			S. Kenny, Govt. Press
			Secretary
			G. Shaw, P/Sec.
			Capt. McQuillan, Aide-de-Camp to the Taoiseach
			Security
14-18 March	USA and Canada	Official visit for St. Patrick's Day	Taoiseach	Ministerial Air Transport	1. Meeting and reception with President Clinton.
			Mrs. Bruton
			P. Teahon, Secretary		2. Lunch meeting with Speaker Gingrich.
			S. Kenny, Govt. Press
			Secretary		3. Meeting with Senator Edward Kennedy.
			R. Dooney, Special
			Adviser to the Taoiseach		4. Meeting of the Ireland-America Economic Advisory Board.
			D. Morgan, P.O.
			G. Shaw, P/Sec.
			Security		5. American Ireland Fund dinner.
					6. Meeting with the Premier of Newfoundland and Labrador, the Honourable Brian Tobin.
28-29 March	Turin	European Council meeting	Taoiseach Minister Mitchell, MoS for European Affairs.	Ministerial Air Transport	Meeting of European Council
			Mrs. Bruton
			B. McCarthy, Asst. Sec.
			S. Kenny, Govt. Press
			Secretary
			A. Dunning, P.O.
			G. Shaw, P/Sec.
			O. Duffy, Clerical
			Assistant
			Security
[1088][1089]24-26 April	Poland	Official visit	Taoiseach	Ministerial Air Transport	1. Meeting with Prime Minister of Poland.
			Mrs. Bruton
			S. Kenny, Govt. Press Secretary		2. Reception for Polish VIP's.
			A. Dunning, P.O. G. Shaw, P/Sec.		3. Lecture at Natolin College of Europe.
			Security		4. Meeting with Deputy Prime Minister and Minister for Agriculture.
					5. Dinner hosted by Prime Minister of Poland.
					6. Meeting with Deputy Speaker of Polish Sejm.
					7. Meeting with Marshall of Polish Senate.
					8. Meeting with Chairman of Polish-Irish Parliamentary Association.
					9. Meeting with President of Poland.
4-5 June	Bonn	Meeting with Chancellor Kohl	Taoiseach F. Murray, Secretary to the Government	Ministerial Air Transport	1. Meeting with Chancellor Kohl.
					2. Address to Adenauer Institute.
			S. Kenny, Govt. Press
			Secretary R. Dooney, Special Adviser to the Taoiseach		3. Dinner for German businesspeople.
			A. Dunning, P.O.
			G. Shaw, P/Sec.
			Capt. McQuillan
11-12 June	Brussels	Meetings with various European Heads of State and Governments and others	Taoiseach	Ministerial Air Transport	1. Lunch for Local business community.
			S. Kenny, Govt. Press Secretary
			R. Dooney, Special		2. Meeting with President of the European Commission.
			Adviser to the Taoiseach E. O'Leary, AP G. Shaw, P/Sec.		3. Meeting with Prime Minister of Spain.
			Security		4. Meeting with President of European Parliament.
					5. Meeting with Prime Minister of Italy.
					6. Multilateral meetings in EPP context, with Heads of State and Governments of Germany, Spain, Italy, Luxembourg, Belgium and the President of the European Commission.
20-23 June	Florence	European Council	Taoiseach Minister Mitchell, MoS for European Affairs F. Murray, Secretary to the Government	Ministerial Air Transport & Commercial flight	European Council.
			Mrs. Bruton
			B. McCarthy, Asst. Sec.
			S. Kenny, Govt. Press
			Secretary
			A. Dunning, P.O.
			G. Shaw, P/Sec.
			D. Johnstone, Personal Assistant to the Taoiseach
			Security
			C. Carey, Clerical Assistant
[1090][1091]23-25 June	Malta	Official visit	Taoiseach	Ministerial Air	1. Meeting with Prime Minister of Malta.
			Mrs. Bruton	Transport
			B. McCarthy, Asst. Sec. S. Kenny, Govt. Press Secretary		2. Meeting and lunch with President of Malta and Mrs. Bonnici.
			G. Shaw, P/Sec. D. Johnstone, Personal Assistant to the Taoiseach		3. Talk at Valletta Chamber of Commerce. 4. Meeting with Irish Community.
			Security		5. Dinner hosted by Prime Minister of Malta.
10-11 July	Luxembourg and Paris	Meetings with various European Heads of State and Governments and others Meeting with Jacques Chirac	Taoiseach	Ministerial Air Transport	1. Multilateral meetings, in EPP context, with Heads of State and Governments of Germany, Spain, Italy, Luxembourg, Belgium and the President of the European Commission. 2. Meeting with President of France.
			Mrs. Bruton
			S. Kenny, Govt. Press Secretary
			R. Dooney, Special Adviser to the Taoiseach
			B. McCarthy, Asst. Sec.
			G. Shaw, P/Sec. Security
8-13 September	Washington	Address to US Congress	Taoiseach Mrs. Bruton	Ministerial Air Transport	1. Meeting with President of USA.
			P. Teahon, Secretary S. Kenny, Govt. Press		2. Meeting with Congressional Leaders.
			Secretary A. Dunning, P.O.		3. Address to US Congress.
			G. Shaw, P/Sec. K. Gilna, Personal		4. Meeting with US journalists.
			Assistant to the Taoiseach Security		5. Meeting with Friends of Ireland/Ad Hoc Committee
17-18 September	Strasbourg	Address to European Parliament	Taoiseach Minister Mitchell, MoS for European Affairs	Ministerial Air Transport	1. EPP Meeting. 2. Meeting with Irish MEPs.
			B. McCarthy, Asst. Sec. S. Kenny, Govt. Press		3. Address to European Parliament.
			Secretary R. Dooney, Special Adviser to the Taoiseach		4. Lunch with President Santer and President Hänsch.
			E. O'Leary, AP
			G. Shaw, P/Sec.
			B. Murphy, Personal Assistant to MoS Mitchell
			C. Macey, Special Adviser to MoS Mitchell Security
26 September-1 October	Paris and Japan	EU-Japan Summit	Taoiseach F. Murray, Secretary to the Government S. Kenny, Govt. Press Secretary	Ministerial Air Transport to Paris and Commercial flight to Japan	1. Meeting with Head of Mission of European Commission to Japan. 2. Reception for Japanese business people.
			G. Shaw, P/Sec. Capt. McQuillan, Aide-de-Camp to the Taoiseach		3. Reception for Irish Community. 4. Bilateral meeting with Prime Minister of Japan.
					5. Audience with Emperor of Japan.
					6. EU-Japan Meeting with Prime Minister of Japan.
					7. Debriefing of EU Ambassadors on outcome of Summit.
[1092][1093]14-16 November	Athens and Rome	Pre-Dublin II tour of Capitals (Athens) and attendance at World Food Summit in Rome	Taoiseach	Ministerial Air	1. Meeting with Prime
			Mrs. Bruton	Transport	Minister of Greece.
			B. McCarthy, Asst. Sec.		2. Meeting with
			S. Kenny, Govt. Press		President of Greece.
			Secretary		3. World Food Summit Assembly.
			D. Ingoldsby, Asst.
			Private Secretary		4. Meeting with Prime Minister of China.
			B. Boylan, AP (Acting)
			Security		5. Meeting with Prime Minister of South Korea.
					6. Meeting with Prime Minister of Rwanda.
					7. Meeting with Prime Minister of Malta.
					8. Meeting with Vice-President of Iran.
					9. Meeting with Vice-President of Argentina.
					10. Meeting with Executive Director of World Food Programme.
21-22 November	Helsinki and Vienna	Pre-Dublin II tour of Capitals	Taoiseach B. McCarthy, Asst. Sec.	Ministerial Air Transport	1. Meeting with Prime Minister of Finland.
			S. Kenny, Govt. Press Secretary		2. Meeting with President of Finland.
			A. Dunning, P.O. G. Shaw, P/Sec.		3. Meeting with Chancellor of Austria.
			Security
24-27 November	Lisbon, Madrid, Stockholm, Copenhagen, Luxembourg and Rome	Pre-Dublin II tour of Capitals	Taoiseach B. McCarthy, Asst. Sec. N. Reddy, Press Officer A. Dunning, P.O. G. Shaw, P/Sec. Security	Ministerial Air Transport	1. Meeting with Prime Minister of Portugal. 2. Meeting with Prime Minister of Spain. 3. Meeting with Prime Minister of Sweden.
					4. Meeting with Prime Minister of Denmark.
					5. Meeting with Prime Minister of Luxembourg.
					6. Meeting with Prime Minister of Italy.
1-3 December	Lisbon	OSCE Conference	Taoiseach Minister Mitchell, MoS for European Affairs S. Kenny, Govt. Press Secretary G. Shaw, P/Sec. E. O'Leary A.P. Security	Ministerial Air Transport	1. OSCE Summit Meeting. 2. Meeting with President of Ukraine. 3. Meeting with Prime Ministers of Iceland, Norway and Liechtenstein.
					4. Meeting with Prime Minister of Canada.
					5. Meeting with President of Belarus.
					6. Meeting with 8 Portuguese MEPs.
5-6 December	Brussels and Bonn	Pre-Dublin II tour of Capitals	Taoiseach B. McCarthy, Asst. Sec.	Ministerial Air Transport	1. Meeting with President Santer.
			S. Kenny, Govt. Press Secretary		2. Meeting with Prime Minister of Belgium.
			R. Dooney, Special Adviser to the Taoiseach		3. EPP Council and Summit meetings.
			E. O'Leary A.P. G. Shaw, P/Sec.		4. Meeting with Chancellor of Germany.
			Security
[1094][1095]9-10 December	London and	Pre-Dublin II	Taoiseach	Ministerial Air	1. Meeting with Prime
	Paris	tour of Capitals	Mrs. Bruton	Transport	Minister of Britain.
			P. Teahon, Secretary B. McCarthy, Asst. Sec.		2. Meeting with President of France.
			W. Kirwan, Asst. Sec.
			S. Kenny, Govt. Press
			Secretary
			A. Dunning, P.O.
			G. Shaw, P/Sec.
			Security
15-18 December	Washington D.C. and Ottawa	EU-US Summit and EU-Canada Summit	Taoiseach Mr. F. Murray, Secretary to the Government Mr. S. Kenny, Govt.	Ministerial Air Transport *Commercial Flight	1. Meeting with Journalists. 2. EU-US Meeting with President of USA.
			Press Secretary G. Shaw, P/Sec.		3. Bilateral meeting with President of USA.
			Security *Mr. A. Dunning, P.O.		4. EU-Canada Summit with Prime Minister of Canada.

80. Mr. Callely asked the Taoiseach the cost of the Irish Presidency to his Department. [25217/96]

82. Mr. Davern asked the Taoiseach the total cost to his Department of the Presidency of the EU; and if he will give details of such costs. [1001/97]

The Taoiseach: I propose to answer Questions Nos. 80 and 82 together.

My Department's budget for the EU Presidency in 1996 amounted to £500,000. An amount of approximately £472,000 was spent in 1996. Some carryover costs which could not be invoiced [1096] in 1996 will be met from this year's provision of £50,000.

81. Mr. M. Kitt asked the Taoiseach the events which have been held to commemorate the Great Famine; the cost involved; and the further events, if any, to be held. [25218/96]

Minister of State at the Department of the Taoiseach (Mrs. Doyle): As Chairperson of the Government's Famine Commemoration Committee I have been privileged to fund numerous events and projects commemorating the Great Famine in Ireland and abroad.

At local level my committee has supported the following events and projects:

		£
Antrim	Renovate Friar's Bush Famine Cemetery, Stranmillis Road, Belfast	1,000.00
Carlow	Self Help International — Eritrea Potato Seed Famine Relief Project £11,500.00 [a potato and maize seed project, by the Carlow based Self Help International organisation, with particular emphasis on providing food security in Eritrea through the cultivation of potatoes from the seed of the potato flower rather than from seed potatoes.]	11,500.00
	Teagasc Famine Relief Potato Blight Resistance Research Project. Teagasc involvement in research work to breed blight resistant potatoes in the context of the work of the International Potato Centre, in Mexico.	30,000.00
Clare	Renovate Famine Burial Ground, Tuamgraney,	1,000.00
Cork	Renovate St. Mary's Famine Graveyard, Thurles	1,000.00
	Renovate Carr's Hill Famine Cemetery, Cork	1,000.00
	Renovate Bandon Famine Graveyard	1,000.00
	Publication of Irish Language Famine Manuscripts	150.00
Donegal	Renovate Famine Graveyard, Donegal Town	1,000.00
Dublin	Gary White Deer Painting (proceeds donated to Concern Famine Relief)	10,000.00
	APCK booklet on the Famine	500.00
	Women's Archive Famine Exhibition	15,000.00
	Blanchardstown Famine Oratorio	2,500.00
	Great Irish Famine Event	10,000.00
	Charlie Lennon Famine Suite	5,000.00
Fermanagh	Fermanagh Famine Memorial	5,000.00
Galway	Goodtime Productions Tour of Famine Drama	2,000.00
[1097][1098]Kerry	Renovate Famine Graveyard, Teampaillin Ban, Listowel	1,000.00
	Renovate Famine Graveyard, Dingle Workhouse	1,000.00
Kildare	Renovate Famine Graveyard, Celbridge	1,000.00
	Publication of Famine Sites Atlas, Tullamore Famine Committee	5,000.00
Leitrim	Renovate Famine Graveyard, Carrick-on-Shannon	1,000.00
	Renovate St. Mary's Church “Famine Graveyard”, Mohill	1,000.00
Limerick	Renovate Kildorrery Famine Graveyard	1,000.00
	Renovation of Famine Village, Knockfierna	5,000.00
Longford	Renovate Famine Cemetery, St. Joseph's Hospital, Longford	1,000.00
Mayo	George Moore Society Famine Art Exhibition	5,000.00
Meath	Renovate Famine Graveyard, Dunshaughlin	1,000.00
Monaghan	Renovate Famine Graveyard, Clones	1,000.00
Roscommon	Strokestown Famine Museum (Conference, Education Pack)	10,000.00
	Famine Archaeological Excavation, Gorttoose	2,500.00
Waterford	Renovate Reilig A'tSle Famine Graveyard, Dungarvan	1,000.00
	Publication of Society of Friends Famine Transactions	5,000.00
Wexford	Famine Memorial in Ballygarrett Cemetery, County Wexford	1,000.00
	At national level my committee has supported the following:
	RTE Famine T.V. Documentary	79,562,04
	National Famine History Research Project (total cost £115,000)	50,537.04
	This finance is supporting studies in the following counties: Mayo; Cork; Fermanagh; Tipperary; Clare; Wicklow; Donegal; Dublin (City) and Offaly
	Schools Famine Essay Competition prizes	5,291.25
	Prizes were awarded to pupils in winning schools in counties Kildare and Tipperary
	My committee has also supported the following projects abroad:
Ethiopia	Ethiopian Famine Food Reserve Project support for the Ethiopian Government's National Disaster Prevention and Preparedness project to provide capacity and infrastructure (ie. storage silos for grains in remote areas.	50,030.00
Lesotho	Lesotho Famine Water Relief project provision of a water supply and sanitation, in Lesotho, to relieve severe drought conditions.	15,030.00
Britain	Liverpool Famine Memorial	5,000.00
	Liverpool Famine Art Exhibition	1,457.02
	Liverpool Commemoration Concert	45,299.16
	Glasgow — Feis Ghlaschu Famine Essay Prize	193.74
Australia/ New Zealand	Famine Commemoration concert and lecture tour (taking in Brisbane, Sydney, Melbourne and Canberra in Australia and in New Zealand, participation, with the Prime Minister Mr Jim Bolger, in an eve of St. Patrick's Day function, and other St. Patrick's Day functions.).	85,141.80
USA/Canada	Famine Commemoration lecture tour (taking in Chicago, South Bend, Indiana, San Francisco, San Diego, Washington, New York JFK, Boston and Montreal)	4,000.00

Further events:

The national famine commemoration committee has chosen a magnificent site for the national famine memorial at Murrisk in County Mayo, in the shadow of Croagh Patrick and overlooking Clew Bay. The memorial will consist of a very fine and moving sculpture by John Behan entitled “The Coffin Ship” which we hope to have installed in July of this year. Having examined many sites suggested to us, we chose the beautiful setting of Murrisk and we feel that it is entirely fitting that the national famine memorial should be located in the west of Ireland, which suffered most during the Famine with one in four of the population of Connaught dying in those terrible years.

The events which the Government proposes to organise or contribute to include: a major international conference on the Famine in Dublin Castle on 9 and 10 May; the Great Irish Famine Event; a set of stamps commemorating the Famine to issue in May; publication of an atlas of Famine sites of Ireland; publication of a book of Irish Famine Manuscripts; an ecumenical service; a photographic exhibition; and continuing programme of support for the renovation of Famine graveyards e.g. Swinford.

83. Ms Keogh asked the Taoiseach the State and semi-State boards under the aegis of his Department; the appointments, if any, which have been made to these boards in the past year; the number of women who have been appointed; the percentage of women currently on each of these boards; and the end date of the current term of all of the boards. [1332/97]

The Taoiseach: The State and semi-State boards under the aegis of my Department are: The Western Development Commission; Area Development Management Limited; The Law Reform Commission; The National Economic and Social Council; and The National Statistics Board.

Since 25 June 1996, when the Deputy last inquired, the position regarding appointments to these boards is as follows:

[1099] The Western Development Commission was established on 1 January 1997 and, of the seven appointments made to the commission, there were three women, 42.9 per cent. The commission's term will expire on 31 December 1999. The term of the former Western Development Partnership Board expired on 31 December 1996. There were no new appointments to the board in the last six months. Of a total board membership of 34, there were 13 women, i.e. 38.2 per cent.

Area Development Management Limited has 13 board members, of whom five, 38.5 per cent are women. There are currently three vacancies on the board. There is no end-of-term per se but one third of the board are required to stand down each year. In this regard, there were five new members appointed in October-November 1996. Four of these new members were female.

The Law Reform Commission consists of a president, Mr. Justice Anthony Hederman, whose five-year term of office expires on 19 October 1997. A commissioner, Mr. Simon O'Leary, was re-appointed as a commissioner for a period of two months, from 2 January to 1 March 1997. There are vacancies for up to three commissioners at present. Each commissioner may be appointed for up to five years.

The National Economic and Social Council had one new appointment made since 25 June 1996. Mr. Dara Murphy was appointed in October 1996. There are 34 people on the council of whom 13, 38.2 per cent, are women. The end date of the current term of the council is 31 December 1997. The National Statistics Board is currently being re-appointed. The new board will run for a two year term.

The percentages of women currently on each of these boards are as follows:

Organisation	Total	No. of Women	%
Western Development Commission	7	3	42.9
Area Development Management Ltd.¹	13	5	38.5
Law Reform Commission	2
	(see note²)	0	—
National Economic and Social Council	34	13	38.2
National Statistics Board	currently being re-appointed

1 There are three additional vacancies

2 The filling of three more vacancies is pending

The position regarding other bodies under the aegis of the Department is as follows:

Organisation	Total	No. of Women	%
Devolution Commission	15	5	33
—No change since June 1996 — End of term date not applicable
Strategic Management Initiative Co-ordinating Group	21	8	38
—No change since June 1996 — End of term date not applicable

[1100]

84. Mr. Hilliard asked the Taoiseach the reason for the extra expenditure under subhead L of Vote 3, in the 1997 Estimates for the public service. [1448/97]

The Taoiseach: This expenditure is being allocated towards the implementation of the recommendations in the first report of the ministerial task force on measures to reduce the demand for drugs.

85. Mr. Hilliard asked the Taoiseach the reason for the large increase in expenditure under subhead F3 of Vote 3, in the 1997 Estimates for the public service. [1449/97]

86. Mr. Hilliard asked the Taoiseach the reason for the large increase in expenditure under subhead F2 of Vote 3, in the 1997 Estimates for the public service. [1450/97]

87. Mr. Hilliard asked the Taoiseach the reason for the large increase in expenditure under subhead F1 of Vote 3, in the 1997 Estimates for the public service. [1451/97]

88. Mr. Hilliard asked the Taoiseach the reason for the large increase in expenditure under subhead I of Vote 3, in the 1997 Estimates for the public service. [1452/97]

The Taoiseach: I propose to answer Questions Nos. 85 to 88 together.

I refer the Deputy to previous replies given by my Department on 17 December 1996. Questions Nos. 4 and 5 relate to subheads F1 and F3, Local Development Programme and URBAN, Question No. 7 relates to subhead F2, Western Development and Questions No. 8 relates to subhead I, Programme for Peace and Reconciliation. The replies give details of the proposed expenditure in 1997 under each of these subheads of my Department's Vote.

89. Éamon Ó Cuív asked the Tánaiste and Minister for Foreign Affairs the number of directives passed by the EU, EEC/EC in each of the years from 1973 to date in 1997. [1087/97]

90. Éamon Ó Cuív asked the Tánaiste and Minister for Foreign Affairs the number of regulations passed by the EU, EEC/EC in each of the years from 1973 to date in 1997. [1088/97]

Tánaiste and Minister for Foreign Affairs (Mr. Spring): I propose to take Questions Nos. 89 and 90 together. The amount of staff time needed to locate and collate the information requested by the Deputy would not be justified. However, I would refer him to the two-volume Directory of Community Legislation in Force and Other Acts of the Community Institutions.

[1101] The most recent is the 27th edition, which shows the position as at 1 June 1996. It covers inter alia binding secondary legislation, including regulations, decisions and directives, under the Treaties establishing the European Union and the European Communities, with the exception of day-to-day administrative acts. The directory is updated on a six-monthly basis and a copy is kept at the Oireachtas Library.

91. Mr. D. Ahern asked the Tánaiste and Minister for Foreign Affairs if his attention has been drawn to the ongoing difficulties experienced by the Crossmaglen Rangers Gaelic Football Club; and if he will make a statement on his Department's involvement, if any, in this regard. [1137/97]

95. Dr. O'Hanlon asked the Tánaiste and Minister for Foreign Affairs the date on which he met representatives of the Gaelic Athletic Association in Crossmaglen football club; the progress, if any, which has been made to date with the Northern Ireland authorities on the availability of grant assistance towards the capital development of the club infrastructure and on the long-standing issue of release of requisition grounds and compensation; and if he will make a statement on the matter. [1434/97]

Tánaiste and Minister for Foreign Affairs (Mr. Spring): I propose to take Questions Nos. 91 and 95 together.

Successive Irish Governments have taken a close interest in the affairs of the Crossmaglen Rangers GAA Club and in the specific difficulties caused to the club by the proximity of the joint British/Army RUC base.

I was pleased to receive a delegation from the Crossmaglen club last April and was briefed on their ambitious development proposals, including the provision of improved playing and spectator facilities at the club. Subsequently, I raised the issue of the club's development plans at a meeting of the Anglo-Irish Intergovernmental Conference on 22 May 1996.

My Department had a meeting with officers of the club last September and is due to have a further meeting with the club this week to discuss progress on the project. I await a full report of this meeting which will enable me to consider how best we can continue to assist the club in its development plans.

I will ensure that all issues affecting the club continue to be closely monitored and, where appropriate, will pursue matters raised through the framework of the Anglo-Irish Intergovernmental Conference.

[1102]

92. Mr. Dempsey asked the Tánaiste and Minister for Foreign Affairs the total cost and the percentage cost of his overall Departmental budget for the Irish Aid Programme for each of the years from 1995 to 1997; the number and grades of staff employed in its operation for the same period; the status, names and functions of those organisations charged with the implementation of the Irish Aid Programme; the total number of separate reviews, if any, made of the Irish Aid Programme since its inception; and the reason for each such review. [1154/97]

Tánaiste and Minister for Foreign Affairs (Mr. Spring): Official Development Assistance includes payments from Central Funds and elements of other Department's votes as well as expenditure from the Department of Foreign Affairs. The figures are as follows:

	ODA Expenditure	ODA Expenditure from Dept. of Foreign Affairs	ODA as a % of Total Dept of Foreign Affairs budget
	£	£	%
1995	96.8m	65.5m	78
1996	106m	77.2m	74
1997	122m	93.0m	77

Staff of Irish Aid Programme:

(i) Staff grades and numbers at 31 December 1995 Headquarters:

1 Assistant Secretary

3 Counsellors

9 Higher Executive Officers-Third Secretaries

7 Executive Officers

11 Clerical Officers

11 Clerical Assistants

1 Rural Development Analyst

1 Internal Auditor

1 Accountant

1 Information Officer

(ii) Field Positions:

65 Technical Assistants on Irish Aid projects.

(ii) Staff grades and numbers at 31 December 1996

Headquarters:

1 Assistant Secretary

3 Counsellors

9 First Secretaries-Assistant Principals

11 Higher Executive Officers-Third Secretaries-Administrat-ive Officers

7 Executive Officers

11 Clerical Officers

11 Clerical Assistants

(ii) Field Positions:

50 Technical Assistants on Irish Aid projects

[1103]Organisations which assist in the implementation of the Irish Aid Programme:

The implementation of the Irish aid programme is the responsibility of the development co-operation division of the Department of Foreign Affairs. A number of organisations assist the division in undertaking specific functions:

APSO is a State-sponsored body which is concerned primarily with the transfer of skills to developing countries by qualified Irish people.

The Refugee Agency is a non-statutory body which co-ordinates arrangements for the admission, reception and resettlement of programme refugees to Ireland.

The National Committee for Development Education is a broadly based committee of people with an interest and expertise in the development education sector. The committee administers development education grants, provides support and advisory services on development issues and helps to formulate and promote good development education.

The Irish Aid Advisory Committee is an independent committee which was set up to provide expert advice to the Minister for Foregin Affairs on matters relating to development co-operation and policy aspects of the Irish aid programme.

Review of the Irish Aid Programme:

The Irish aid programme is subject to review every three years by the development assistance committee of OECD — the most recent review was published in 1995 and is available in the Oireachtas Library. In addition, Irish aid projects are subject to regular review and evaluation by sectoral experts within the development co-operation division with the assistance of independent consultants. A list of the reviews is included in the annual report published by Irish aid, copies of which are also available in the Oireachtas Library.

93. Mr. Davern asked the Tánaiste and Minister for Foreign Affairs the total cost to his Department of the Presidency of the EU; and if he will give details of such costs. [1244/97]

Tánaiste and Minister for Foreign Affairs (Mr. Spring): I refer the Deputy to my reply to Question No. 32 on 19 December 1996. A detailed breakdown of Presidency expenditure in 1995 and 1996 is being prepared in my Department and will be available at a later stage.

[1104]

94. Ms Keogh asked the Tánaiste and Minister for Foreign Affairs the State and semi-State boards under the aegis of his Department; the appointments, if any, which have been made to these boards in the past year; the number of women who have been appointed; the percentage of women currently on each of these boards; and the end date of the current term of all of the boards. [1343/97]

Tánaiste and Minister for Foreign Affairs (Mr. Spring): The relevant agencies which come under the aegis of the Department of Foreign Affairs are the Agency for Personal Service Overseas (ASPO), the Cultural Relations Committee (CRC), the Irish Aid Advisory Committee (IAAC), the National Committee for Development Education (NCDE) and the Refugee Agency.

Since January 1996 the following changes were made to the membership of the above boards:

APSO — four new appointments, two of them women, were made to the board of APSO. There are now five women on the APSO board representing 46 per cent of the total membership. The terms of appointment of the current members of the board will expire on various dates from 1999 to 2001.

CRC — four appointments, all of whom were women, were made to the CRC. There are now nine women on this committee representing 50 per cent of the total membership. The term of office of the current CRC will end on 31 December 1997.

IAAC — three new appointments, one of whom was a woman, were made to the IAAC. There are now four women on this committee representing 29 per cent of the total membership. The term of office of the current IAAC will expire in December 1997.

NCDE — two new appointments, one of whom was a woman, were made to the NCDE in 1996. There are now five women on this committee representing 31 per cent of the total membership. The term of office of the current NCDE will expire in October 1997.

Refugee Agency — there were no women among the three new appointments made to the board of the Refugee Agency in 1996. There are five women members already serving on this board representing 36 per cent of the total membership. The term of office of the current board will expire in October 1997.

The National Economic and Social Forum is the only agency which comes under the aegis of the office of the Tánaiste. There were four appointments made in 1996, one of whom was a woman. These appointments brought the number of women on the forum to 25. This represents 51 per cent of the total membership. The forum's current term of office runs until 31 December 1997.

96. Mr. Hilliard asked the Tánaiste and Minister for Foreign Affairs the way in which the sum of £5.9 million was estimated in subhead F 3 of Vote 38 in the 1997 Estimates for the Public Services. [1622/97]

[1105]Tánaiste and Minister for Foreign Affairs (Mr. Spring): The provision under subhead F3 in my Department's vote relates to the EU Support Programme for Peace and Reconciliation in Northern Ireland and the Border Counties. The Programme covers the period 1995 to 1999 with a total EU funding of £240 million (approximately) allocated for the first three year phase.

While the Department of Finance has overall responsibility for the programme, my Department is responsible for the implementation and funding of two measures under the cross-Border sub-programme involving a total expenditure of approximately £10.4 million in the first phase of the peace programme. The first measure is concerned with business and cultural links and is being administered by an intermediary funding body, Co-operation North, in association with IBEC and CBI (NI). My Department will provide approximately £5.8 million in EU and Government matching funds to Co-operation North under this measure. The second measure is concerned with co-operation between public bodies and is directly administered by my Department. Expenditure under this measure is expected to be in the region of £4.6 million.

The amount of £5.9 million provided for under subhead F3 in 1997 includes a provision of £3.2 million for the measure concerning business and cultural links and the balance of £2.7 million for the measure covering co-operation between public bodies. The amounts are based on the expenditure profiles provided in the projects already approved and those at present under consideration. Progress on implementation of the measures is satisfactory and it is expected that all the available funding under both measures will be committed to approved projects during 1997.

97. Cecilia Keaveney asked the Tánaiste and Minister for Foreign Affairs the current position in relation to the Border crossing on the Northern Ireland side of Cannings Lane/Coney Road, Muff, County Donegal; when this road will be made passable; and if he will make a statement on the matter. [1623/97]

Tánaiste and Minister for Foreign Affairs (Mr. Spring): I am aware that the Deputy has taken a close interest in this matter and that this reflects the concerns of local residents in the area that this crossing point has not yet been fully and permanently reopened.

As stated by my colleague the Minister for the Environment, Deputy Howlin on 23 January 1996 in reply to a question from Deputy Jim McDaid, Donegal County Council completed the re-opening of the portion of this road which lies in this jurisdiction in early 1995. The Department of the Environment has recently confirmed that this portion of the road remains open and that the matter is one for the Northern Ireland authorities [1106] to resolve, as the section which is closed lies within Northern Ireland.

As I indicated in my reply to Deputy Keaveney on 31 October 1996, the matter has been pursued with the British authorities through the Anglo-Irish secretariat. By way of response, those authorities have since stated that the status of the crossing in question as a right-of-way is unclear. They have further contended that under the Access to the Countryside (Northern Ireland) Order, 1983, responsibility for the assertion, protection and maintenance of public right-of-way lies with the local council. In this context, it has been claimed that the order does not empower the Department of the Environment in Northern Ireland to request that a local council act according to its responsibilities under the order. They continue to be of the view that the decision to enforce the right-of-way, should it be established that such a right-of-way exists, lies entirely with Derry City Council.

We would not wish any dispute as to the relevant competences involved to stand in the way of a re-opening of this road and we will continue to press for a successful resolution of the matter. While I am not now in a position to inform the Deputy as to when the road will become passable, I would assure her that every effort will continue to be made to expedite the re-opening of this crossing.

98. Mr. E. Ryan asked the Tánaiste and Minister for Foreign Affairs the number of copies of Statement of Strategy printed; the cost of the total publication; and where and to whom copies were sent. [1809/97]

Tánaiste and Minister For Foreign Affairs (Mr. Spring): The office of the Tánaiste printed 1,000 copies of its Statement of Strategy at a total cost of £3,500 including VAT. The statement was laid before both Houses of the Oireachtas and copies were issued to each member of the Oireachtas; each Government Department/Office, members of the co-ordinating group on the Delivering Better Government Programme. Copies are available to members of the public on request.

99. Mr. Hilliard asked the Minister for Finance the reason for the reduction of 70 per cent under subhead C of Vote 14, as contained in the 1997 Estimates for the public service. [1453/97]

Minister for Finance (Mr. Quinn): Subhead C — General Law Expenses — of the Office of the Director of Public Prosecutions' Vote covers costs awarded against either the Director or various other office holders of the State following Judicial Review and other proceedings in a criminal matter which fall to be met from this Vote.

It is extremely difficult to estimate the amount required to meet ongoings under this heading in [1107] any given year as there is a number of variable factors involved. These factors include the number of cases, the length and complexity of the cases and the point in time when the bill of costs is presented for payment.

The reduction in the 1997 Estimate for subhead C arose because the 1996 Estimate included provision to meet anticipated bills for costs in a small number of exceptional cases and it was expected that costs of this nature would not arise again in 1997.

100. Mr. Hilliard asked the Minister for Finance if extra staff will be employed in 1997 in the Office of the Attorney General as a result of the increase in subhead A1 of Vote 13, or is it an increase of expenditure on the existing staff as per the 1997 Estimates for the public service. [1454/97]

Minister for Finance (Mr. Quinn): The Abridged Estimates Volume for 1997 shows a provision of £7.5 million under subhead A1 of Vote 13 in respect of the salary costs of both the Chief State Solicitor and Attorney General's Offices — it represents an increase of £1 million over the A1 subhead provision for 1996. This increase covers the costs associated with additional staff approved for the Office in 1996, sanctioned general pay increases under the PCW and increments.

101. Mr. E. O'Keeffe asked the Minister for Finance if he will have arrangements made to have a disabled driver's application form issued to a person (details supplied) in County Cork. [25249/96]

104. Mr. E. O'Keeffe asked the Minister for Finance if he will have arrangements made to have details of the disabled drivers' concession scheme issued to a person (details supplied) in County Cork. [25277/96]

Minister for Finance (Mr. Quinn): I propose to take Questions Nos. 101 and 104 together.

I am informed by the Revenue Commissioners that the form and information requested have been issued to the persons concerned.

102. Mr. Dempsey asked the Minister for Finance the number of vehicles which have been detected but which are still in road use in spite of the fact that they have been submitted and accepted under the car scrappage scheme. [25265/96]

[1108]

103. Mr. Dempsey asked the Minister for Finance the number of cars submitted under the car scrappage scheme since the scheme's inception; and the preventative action, if any, taken by him in order to stop the resale or reuse of the vehicles which qualify and are submitted under the scheme. [25266/96]

Minister for Finance (Mr. Quinn): I propose to take Questions Nos. 102 and 103 together. I am informed by the Revenue Commissioners that, as at 9 January 1997, the total number of claims for repayment received under the car scrappage scheme was 24,977. The number passed for payment was 24,874, while 103 were refused.

Two vehicles in respect of which certificates of destruction had been issued under the scheme were subsequently recovered by the Garda. These are believed to have been stolen from the scrappage plant while awaiting destruction. In addition, two further vehicles for which certificates had issued have been reported as having been seen subsequently on the road. The Garda, the Revenue mobile task unit and the motor tax authorities have been alerted but to date the vehicles in question have not been recovered.

A number of safeguards are in place to prevent abuse of the scheme. Certificates of destruction of vehicles under the scheme can only be issued to approved scrappage plants. Only ten such plants have been approved nationwide. These operators are monitored on an ongoing basis to ensure that the rules regarding the issue of certificates of destruction are being complied with strictly.

In addition, repayment is only made where the appropriate repayment claim form is completed, a certificate of destruction is produced, and the log book is surrendered.

The Revenue Commissioners are aware that a number of cases have been highlighted in the media where dealers have accepted cars, apparently under the scrapage scheme, but which have not in fact been destroyed and in respect of which they have not claimed repayment. While the numbers involved are not known, it is understood that they are in the region of 20. This practice, while not illegal, would nevertheless be contrary to the spirit of the scrappage scheme. No loss of revenue is involved. Discussions have taken place with representatives of the motor trade who have given an undertaking to observe the spirit of the scheme in the future. I have been informed that the Society of the Irish Motor Industry has now directed its members that all cars offered and accepted by a member garage under the scrappage scheme must be scrapped.

105. Mr. Gregory asked the Minister for Finance if the tax relief available to part-time third level students is available to Open University students. [25298/96]

Minister for Finance (Mr. Quinn): The provision in the Finance Act 1996 for tax relief on [1109] fees for part-time third level courses relates only to courses in approved colleges to which a scheme approved by the Minister for Education under the Local Authority (Higher Education) Grants Acts, 1968 to 1992, applies, or to private colleges in the State approved by the Minister for Education under section 6 of the Finance Act, 1995. Accordingly, the Open University is not covered. However, this matter will be considered in the context of the Finance Bill.

106. Mr. Creed asked the Minister for Finance if a person (details supplied) in County Cork is paying excessive income tax on his FÁS income. [1012/97]

Minister for Finance (Mr. Quinn): I am informed by the Revenue Commissioners that a tax-free allowance certificate issued to the taxpayer on 9 January 1997, effective from 6 April 1996, granting an allowance of £6,150 per annum or £118.27 per week. The certificate issued on the basis of information supplied to the Inspector of Taxes by telephone within the previous week. Any excessive income tax paid since commencement of his employment will be repaid by his employer on implementation of this certificate.

107. Mr. D. Ahern asked the Minister for Finance the rate of house price inflation at six monthly intervals from January 1994 to date in 1997; and if he will make a statement on the matter. [1082/97]

108. Mr. D. Ahern asked the Minister for Finance his views on whether house price inflation over the past number of years has the potential for causing wage instability over the next four years; his views on whether it is acceptable that reductions in nominal interest rates should be so absorbed by rising house prices; and if he will make a statement on the matter. [1083/97]

Minister for Finance (Mr. Quinn): I propose to take Questions Nos. 107 and 108 together.

Statistics in relation to house price inflation are complied by the Department of the Environment on a quarterly basis for both new and second-hand houses. The annual rates of increase for new and second-hand house prices from the first quarter of 1994 to the third quarter of 1996 are available, and are given in the table below. These figures show that house prices have risen significantly over the past two years. Notwithstanding this trend, inflation generally and wage trends in particular have remained quite moderate.

[1110]Year on year percentage increases in house prices
	New houses	Second-hand houses
1994 Q1	7.4	6.8
Q2	3.0	4.8
Q3	0.0	8.0
Q4	7.5	-0.3
1995 Q1	6.5	0.5
Q2	6.3	6.3
Q3	8.8	5.5
Q4	7.1	13.1
1996 Q1	4.9	10.0
Q2	10.5	14.8
Q3	17.7	18.2

I do not expect that the trend in house prices over the past number of years will give rise to wage instability given the very substantial reduction in mortgage interest rates since 1994 and the overall proposals in relation to tax reductions and wage increases in the new national agreement, Partnership 2000, for Inclusion, Employment and Competitiveness. In that context my Department has stated that it expects price increases over the period to 1999 to be just over 2 per cent per annum.

As regards the relations between reductions in nominal interest rates and house prices, I would point out that the latter are also affected by a wide range of other factors, including the high level of economic growth, demographic changes, the substantial increase in members employed in recent years and higher real incomes. As I indicated recently, I expect that the increases in stamp duty rates on the top end of the market will have a moderating effect on house prices.

109. Mr. Connor asked the Minister for Finance if he will give a breakdown of the number of seven-day intoxicating liquor licences for each of the years 1993-1994, 1994-1995 and 1995-1996 with a turnover of under £150,000 per annum, with particular reference to the number of applicants in each of the years under this category who have stated that they were not trading or had nil turnover levels in their application forms. [1111/97]

110. Mr. Connor asked the Minister for Finance, further to Tables A and B below, if he will give details from each category and under each division the exact number of spirit retailers on licences only in each of the categories explicitly excluding manufacturers, such as brewers, cider makers, distillers, compounders, mill wines and dealers in spirits, beer and wine, retailers of spirits, wines, beer and cider, excluding passenger vessels, airports, special restaurant licences, race course and race track licences. [1112/97]

[1111]

111. Mr. Connor asked the Minister for Finance the number of licences, if any, which were not renewed for any reason, such as seven-day spirits retailers on licences, where turnover is required, in each of the years 1993-1994, 1994-1995 and 1995-1996. [1113/97]

Minister for Finance (Mr. Quinn): I propose to take Questions Nos. 109, 110 and 111 together.

I am informed by the Revenue Commissioners that 7,058, 7,008 and 6,592 seven-day intoxicating liquor licences, with a turnover of under £150,000 per annum, were issued for the licensing years 1993-4, 1994-5 and 1995-6 respectively. Records are not maintained in such a manner as would enable the information requested by the Deputy, in relation to the number of seven-day intoxicating liquor licences renewed in the last three licensing years where applicants stated that they were not trading or had nil turnover levels in their application, to be given without the expenditure of an inordinate amount of official time. However, I am informed that the number of such cases is estimated at 1.5 per cent of the total applications.

The commissioners have also informed me that, as information is not readily available on the exact number of spirit retailers on licences issued in respect of the licensing years 1993-4, 1994-5 and 1995-6 on a turnover level and county basis, it has not been possible to provide this information in the time allowed. However, this information is being compiled at the moment and I will provide it to the Deputy when it becomes available.

As regards spirit retailers on licences, where turnover is required, I am informed by the commissioners that the number of such licences not renewed in the licensing years 1993-4, 1994-5 and 1995-6 was 500, 559 and 626 respectively.

Table A

Level of Turnover	Number of Licences Issued
1993-4	1994-5	1995-6
under £150,000	7,240	6,983	6,743
£150,000 but less than £300,000	1,584	1,715	1,758
£300,000 but less than £500,000	582	670	667
£500,000 but less than £750,000	310	331	337
£750,000 but less than £1,000,000	143	148	180
£1,000,000 or more	144	182	217
	10,003	10,029	9,902

The total number of intoxicating liquor licences which were issued on a county basis over the last three years are detailed in the following Table B. These licences include manufacturers (e.g. brewers, cidermakers, distillers, compounders, made wine and mead makers); dealers (i.e. wholesalers) in spirits, beer, wine etc; retailers of spirits, wines, [1112] beer, cider, etc, both on and off the premises. It also includes passenger vessels, airports, special restaurant licences, racecourse and racetrack licences.

Table B

Counties	Number of Licences Issued
1993-4	1994-5	1995-6
Carlow	166	156	150
Cavan	289	293	325
Clare	511	531	508
Cork	1,894	1,842	1,918
Donegal	653	650	670
Dublin	1,575	1,593	1,789
Galway	904	923	932
Kerry	732	762	820
Kildare	305	310	337
Kilkenny	350	336	321
Laois	206	204	194
Leitrim	195	194	200
Limerick	611	628	687
Longford	156	151	170
Louth	315	321	355
Mayo	744	749	739
Meath	272	277	306
Monaghan	186	192	210
Offaly	180	185	192
Roscommon	339	331	341
Sligo	279	279	280
Tipperary	732	724	735
Waterford	451	442	425
Westmeath	256	269	287
Wexford	531	511	486
Wicklow	307	307	305
Total	13,139	13,150	13,682

112. Mr. Sargent asked the Minister for Finance whether the confiscated assets of drug traffickers are and will be used to help pay for facilities to treat addicts. [1148/97]

Minister for Finance (Mr. Quinn): Under the Criminal Justice Act 1994 and the Proceeds of Crime Act 1996 any property which a court decides should be confiscated, forfeited or transferred to the Minister for Finance as a consequence of criminal activity must be paid into or disposed of for the benefit of the Exchequer. It is not open to me as Minister for Finance to specifically use such funds for any particular activity.

Receipts arising under the provisions of the above Acts will, however, form part of the total resources of the Central Fund and will help finance the general aggregate of public expenditure, including public expenditure to help the victims of crime and to tackle criminality.

[1113]

113. D'fhiafraigh Éamon Ó Cuív den Aire Airgeadais an féidir leis a dhearbhú gurb í an Ghaeilge a bheidh in úsáid mar theanga náisiúnta ar na nótaí agus na boinn Euro a bheidh á eisiúint; agus an ndéanfaidh sé ráiteas ina thaobh. [1160/97]

An tAire Airgeadais (Mr. Quinn): Sanntar leis an gConradh ar an Aontas Eorpach don Bhanc Ceannais Eorpach (BCE), atá le cur ar bun i 1998, an ceart eisiach chun eisiúint nótaí bainc “euro” a údarú. De réir reacht an BCE ní mór dó, a mhéad is féidir, cleachtais atá ann cheana maidir le heisiúint agus dearadh nótaí bainc a urramú. Tá a réamhtheachtaí, an Institiúid Eorpach Airgeadaíochta (an IEA), freagrach as a n-ullmhúchán teicniúil a mhaoirseacht.

Tar éis comórtais deartha, an 13 Nollaig 1996, sheol an IEA i mBaile Átha Cliath agus i Frank-furt na dearaí a roghnaigh sí do na nótaí bainc “euro”. Molfaidh an IEA don BCE go nglacfar leis na dearaí sin. Áiritear sna dearaí an focal “euro”— is é sin, ainm an airgeadra — in aibítrí na Laidine agus na Gréigise araon; inisealacha an údaráis eisiúna, an BCE, i gcúig mhalairt leagain, BCE, ECB, EZB, EKT, EKP; agus síniú Uachtarán an BCE. Freagraíonn an chéad cheann de na malairtí leagain seo d'inisealacha an BCE sa Ghaeilge. Níor chinn an IEA go fóill an molfaidh sí don BCE gur chóir don fhoras deiridh sin gné náisiúnta a áireamh ar na nótaí.

Foráiltear sa Chonradh go bhféadfaidh na Ballstáit monaí a eisiúint faoi réir cheadú ón BCE maidir le méid na heisiúna, agus tugtar cumhacht do Chomhairle na nAirí Geilleagair agus Airgeadais (ECOFIN) bearta a ghlacadh chun ainmníochtaí agus sonraíochtaí teicniúla na monaí go léir le haghaidh cúrsaíochta a chomhchuibhiú a mhéad is gá chun a gcúrsaíocht réidh laistigh den limistéar “euro” a cheadú. Tá ECOFIN tar éis a chinneadh gur chóir go mbeadh spás substaintiúil ar aghaidh amháin de chuid gach mona le haghaidh gnéithe suaithinseacha náisiúnta; táimse tar éis a chinneadh go leanfar den chláirseach a bheith mar ghné náisiúnta na hÉireann.

Comhaghaidh a bheidh san aghaidh eile agus tá comórtas ar siúl maidir lena dearadh. Luafar ar an gcomhaghaidh luach na monaí sa chaoi chéanna ar fud an Aontais; agus beidh “euro” nó “cent”— gan infhilleadh don uimhir iolra — mar ainm orthu. Níl aon chinneadh déanta i dtaca le haon litreoireacht eile a bheith nó gan a bheith ar na monaí. Ar ndóigh níor mhór d'aon chinneadh den sórt sin srianta teicniúla atá ag eascairt as toisí teoranta na monaí a chur san áireamh.

114. Mr. Davern asked the Minister for Finance the total cost to his Department of the Presidency of the EU; and if he will give details of such costs. [1243/97]

Minister for Finance (Mr. Quinn): Specific provision was made in the 1996 Estimates for expenditure by this Department of £500,000 in relation to Ireland's Presidency of the EU. In addition some areas of the Department were temporarily given national staffing resources for the duration [1114] of the Presidency, the cost of which was met from subhead A1 of the Department's Administrative Budget. While the full cost of the Presidency has not yet been finalised, the indications are that the costs to my Department will be in the region of £550,000, the main elements of which are identified below.

	£
Additional Staffing in the Irish Permanent Representation to the EU	100,000
Additional Staffing in the Department	40,000
Travel etc.	60,000
Informal ECOFIN	175,000
Meeting of Directors General of Public Service in EU Member States	37,000
Meeting of EU Budget Committee	8,000
Seminar for Ministers for Regional Policy and Spatial Development	43,000

A contribution of approximately £30,000 is being made towards the cost of the Informal ECOFIN by the Central Bank of Ireland.

115. Mr. Hogan asked the Minister for Finance the total amount of PAYE income tax paid in respect of each tax district for the year ending 5 April 1996. [1267/97]

Minister for Finance (Mr. Quinn): I am informed by the Revenue Commissioners that statistics are not available which would enable the information requested to be provided on a regional basis. The only relevant information available is on the total amount of PAYE income tax receipts in the calendar year ending 31 December, 1995 which is estimated at £3,514.6 million. Precise information is not yet available as to the corresponding yield of PAYE tax in the 1996 calendar year but it is currently estimated to be of the order of £3,896 million.

116. Mr. Finucane asked the Minister for Finance when a tax refund will be paid to a person (details supplied) in County Limerick. [1297/97]

Minister for Finance (Mr. Quinn): I am informed by the Revenue Commissioners that a review of the taxpayer's liability to the date of cessation of employment has been dealt with and a repayment cheque will issue to him this week.

117. Ms Keogh asked the Minister for Finance the State and semi-State boards under the aegis of his Department; the appointments, if any, which have been made to these boards in the past year; the number of women who have been appointed; the percentage of women currently on each of these boards; and the end date of the current term of all of the boards. [1344/97]

[1115]Minister for Finance (Mr. Quinn): I have made the following appointments to State and semi-State boards under the aegis of my Department since 1 January, 1996:

Board	Name of appointee(s)	Number of women appointed since 1 January, 1996	% of Women on the board
ACC Bank plc	Ms Gary Joyce	2	33
	Mr. Seamus Mallon
	Mr. John O'Reilly
	Ms Sheila McGuinness
ICC Bank plc	Mr. Phil Flynn	1	22
	Mr. Sean Kelly
	Ms Anne Connolly
Central Bank	Mr. F. Danz	1	10
An Post	Mr. John Hynes	0	14
National Lottery	Mr. Terry Reynolds
Company	Mr. Kieran McGowan
Valuation	Mr. Barry Smith	1	40
Tribunal	Ms Rita Tynan

Generally there is no term of appointment applying to the boards, though individual board members are ordinarily appointed for specific periods which vary according to the bodies concerned.

118. Dr. O'Hanlon asked the Minister for Finance the level of the national debt on 31 December 1994, and 31 December 1996. [1438/97]

Minister for Finance (Mr. Quinn): The national debt on 31 December, 1994 and 31 December, 1996 was as follows: 31 December, 1994, £29,227 million; 31 December, 1996, £29,912 million.

119. Mr. Hilliard asked the Minister for Finance the reason for the increase under Subhead F of Vote 2 in the 1997 Estimates for the Public Service. [1455/97]

Minister for Finance (Mr. Quinn): The increase of £411,000 over 1996 in the 1997 allocation for allowances to or in respect of certain former Members of the Houses of the Oireachtas is due to the provision of £400,000 for payments under the Oireachtas (Termination Allowances) Regulations, 1992 to those Members who either decide not to contest or unsuccessfully contest the forthcoming general election. An additional £11,000 is included to provide for an increase in the pensions [1116] paid to the three widows of pre-1960 Members of the Dáil who are not covered by the current Members' pension scheme.

120. Mr. Hilliard asked the Minister for Finance the way in which the figure of £35.2 million was estimated under Subhead E of Vote 10, in the 1997 Estimates for the Public Service. [1456/97]

121. Mr. Hilliard asked the Minister for Finance if he will give a breakdown of the figure of £25 million for rent and rates contained in Subhead F3 of Vote 10 in the 1997 Estimates for the Public Service. [1457/97]

122. Mr. Hilliard asked the Minister for Finance the way in which the figure of £17.566 million was estimated under Subhead F1 of Vote 10 in the 1997 Estimates for the Public Service. [1458/97]

Minister of State at the Department of Finance (Mr. Coveney): I propose to take Questions Nos. 120, 121 and 122 together.

The provisions included in Vote 10 for Subheads E-£35.2 million; F1-£17.566 million and F3-£29 million in the 1997 Abridged Version of the Estimates for the Public Service are based on the outturn in 1996, expected requirements in 1997 and available resources in the context of the Government's spending proposals for this year.

More detailed information on the allocations for Subheads E and F3 will be published in the 1997 Revised Estimates for the Public Service.

123. Mr. Hilliard asked the Minister for Finance the reason there is no provision for research and development projects under Vote 11 in the 1997 Estimates for the Public Service. [1459/97]

Minister For Finance (Mr. Quinn): The funds for research and development projects under the State Laboratory Vote are usually obtained from the EU for specific projects which must be approved in advance. The State Laboratory submitted two proposals for funding for projects in 1997, but unfortunately, these were unsuccessful.

124. Mr. S. Brennan asked the Minister for Finance the grades of civil servants who are obliged to adhere to the terms of Circular 21/32, entitled 'Civil Servants and Politics'; and if he will make a statement on the matter. [1460/97]

Minister for Finance (Mr. Quinn): The rules on civil servants and political activity fall into two categories; restrictions on standing for election to political office and rules regarding the maintenance of political impartiality. Restrictions on civil servants standing for election are set out in circulars of 1925, 1934 and 1974. The restrictions were relaxed somewhat by the Government in 1974 and the current arrangements are as follows: (a) Civil servants are not permitted to stand for [1117] election to either House of the Oireachtas or to the European Assembly. This restriction applies to all categories of staff; (b) Civil servants in the industrial and in the manipulative, sub-clerical and manual grades are free to engage in political activity, subject to the general restriction in relation to parliamentary elections. Civil servants in this category may, therefore, contest local elections; (c) Members of the clerical grades in the civil service and civil servants in non-manipulative grades with salary maxima equal to or below the clerical officer maximum may apply for permission to engage in politics on the same basis as the staff referred to at (b) but officers employed on particular types of work may have their applications refused; (d) All civil servants above clerical level are totally debarred from engaging in politics. However, personal assistants and special advisers in ministers' offices, whose terms of appointment are coterminous with those of the relevant appointing Minister, are exempt from the present arrangements covering State employees and politics.

The requirements in the area of official political impartiality are contained in circular 21 of 1932. That circular prohibits an official from making public statements on any matter of current political interest, or which concern the political action or position of the Government or of any member or group of members of the Oireachtas. The circular also contains a prohibition on officials being members of an association or committee which seeks to advance the interests of a political party or to promote or prevent the return of a particular candidate to the Dáil. The provisions of circular 21/32 are to be applied in the light of the relaxation of restrictions on engaging in political activity for certain grades announced by the Government in 1974 and referred to at (b) and (c) above. Civil servants are advised to consult the Head of their Department for any clarification of the rules required or where any doubt arises as to the propriety of their engaging in activities of a political nature.

125. Mr. S. Brennan asked the Minister for Finance the number of applications for tax relief on alarms for the elderly at the end of December 1996; the total number of approvals at the end of December 1996 in this respect; the geographic spread of such applications and approvals; the total tax foregone on these approvals; and if he will make a statement on the matter. [1461/97]

Minister for Finance (Mr. Quinn): I am informed by the Revenue Commissioners that statistics on the number of applications for this relief are currently available up to 11 June 1996 only. At the time some 300 applications had been received, with the only data on the geographic spread being that about 250 of the applications came from the Dublin area. All of those 300 applications have since been processed.

[1118] The latest data available on the number of applications approved is the position on 30 November 1996 at which time some 198 applications were recorded as being approved for individuals liable to tax under the PAYE system. The cost to the Exchequer of the tax relief associated with these approvals is estimated at £35,000. Corresponding figures for applications approved for non-PAYE taxpayers will not be available until after the 1996-97 income tax returns have been filed on or after 31 January 1998.

The main reasons why applications were not approved was failure to meet the age and living alone conditions. However, I have been assured by the Revenue Commissioners that they are applying this provision liberally, particularly with respect to borderline cases, and with a minimum of formality.

While the figures for take up of this relief are low so far, this tax measure is only part of the Government's broader strategy to assist the elderly. The Minister for Social Welfare established a task force in January 1996 to examine how the security needs of elderly persons who could not benefit from the tax relief might best be addressed. As a result, a number of initiatives were launched last February, one of which involved expenditure of £2.6 million in grant-aid being made available last year to voluntary groups for security initiatives for the elderly, including the installation of physical security equipment such as monitored alarm systems.

126. Mr. H. Byrne asked the Minister for Finance the progress to date, future plans and timetable in relation to providing buildings or office space for the expected transfer of his Department to Johnstown Castle, County Wexford; if financial provision has been made for these works; if not, when it will be provided; and if he will make a statement on the matter. [1661/97]

Minister of State at the Department of Finance (Mr. Coveney): I assume the Deputy is referring to the proposed transfer of Department of Agriculture, Food and Forestry staff to Wexford.

Work is expected to commence on site within three to our months and to be complete in the second half of next year.

127. Mr. H. Byrne asked the Minister for Finance in view of ongoing works at Johnstown Castle, County Wexford, such as the establishment of the Environmental Protection Agency and his Department, the progress, if any, which has been made on deciding on a future use of the main castle building; and if he will make a statement on the matter. [1662/97]

[1119]Minister of State at the Department of Finance (Mr. Coveney): Johnstown Castle, County Wexford, is owned by Teagasc whose staff occupy part of the main building as well as other accommodation on the site.

There are no other proposals before me in relation to the future of the main castle building.

128. Cecilia Keaveney asked the Minister for Finance the cost involved in reducing the writeoff period for capital allowances from seven years to three years for young farmers. [1671/97]

Minister for Finance (Mr. Quinn): I am advised by the Revenue Commissioners that because the available statistics on tax relief for capital allowances do not distinguish between the amounts allowed for young farmers and other farmers, there is no basis on which a reliable estimate of the impact of the change mentioned by the Deputy can be provided.

However, if it is assumed for illustration that 10 per cent of capital allowances claims from the farming sector would qualify for the change, it is estimated that the cost to the Exchequer would be of the order of £18 million to £20 million over three years.

129. Mr. Hilliard asked the Minister for Finance the reason for the expenditure increase under Vote 45, which is £110 million in 1997 and was £25 million in 1996 Estimates for the public services; and if there will be a similar increase for 1998. [1679/97]

Minister for Finance (Mr. Quinn): Under normal Estimates procedure, provision is included in the Votes concerned for, among other things, the costs of pay increases on which agreements have been reached. A separate contingency provision is normally included on a global basis in the Vote for Increases in Remuneration and Pensions (Vote 45) to meet the estimated cost of other pay increases which are still being negotiated under the terms of prevailing policy on pay in the public service. The total cost of pay increases for which provision is made in the Estimates in any particular year is, therefore, the sum of amounts for settlements on each Vote and the global contingency provision for claims which are still in procedures.

Funding is made available late in each year from this global provision to the Vote concerned to cover the costs, after account is taken of available savings which arise in respect of pay increases for which no provision had been made in these Votes.

Accordingly, the contingency amounts included in the Vote for Remuneration depend on the state of negotiations at the time of publication of the Estimates Volume. The subsequent draws on the global Vote depend on the total cost [1120] of pay increases arising and the availability of any offsetting savings on the Vote concerned. Thus, the amounts provided on a global basis vary enormously from year to year and are not comparable in any way on a year to year basis.

The total increase in the Exchequer pay and pensions bill in 1996 due to local bargaining settlements under the PCW was £27 million of which only £9.7 million came from the Vote for Increases in Remuneration and Pensions, the rest being provided in the individual Votes concerned. As a result, there was a saving of over £15 million on the Vote for Increases in Remuneration and Pensions in 1996. This was mainly because of the slow rate of settlement of local bargaining negotiations in 1996. The estimated cost in 1997 of these delayed negotiations together with the cost of other negotiations in 1997, is £110 million, which is included in the Estimate for Increases in Remuneration and Pensions for 1997.

At this early stage in the year, I am not prepared to speculate about the need for, or the possible size of, a Vote for Increases in Remuneration and Pensions in 1998.

130. Mr. Broughan asked the Minister for Finance the 1996 taxation to GDP ratio; and the way in which this figure compares with the same ratio for each of the years from 1990 to 1995 and with our EU partners for the latest available year. [1680/97]

Minister for Finance (Mr. Quinn): Taxation, in this context, includes all direct and indirect taxation including health and social insurance contributions. On this basis the GDP ratio for Ireland from 1990 to 1996 was as follows: 1990, 35.2 per cent; 1991, 35.7 per cent; 1992, 36.1 per cent; 1993, 36.2 per cent; 1994, 37.4 per cent; 1995, 35.2 per cent; 1996, 32.8 per cent.

According to Table 3 of “OECD Revenue Statistics 1965-1995”, the unweighted average taxation-GDP ratio for the EU 15 is 1994, the latest available year, was 42.5 per cent. The Deputy might note that all international data give rise to comparability problems.

In the Irish context moreover, owing to the significant difference between GDP and GNP, the latter is considered more appropriate for comparison purposes. The taxation to GNP ratio for Ireland from 1990 to 1996 was as follows: 1990, 39.4 per cent; 1991, 39.6 per cent; 1992, 40.4 per cent; 1993, 40.7 per cent; 1994, 41.7 per cent; 1995, 40.2 per cent; 1996, 39.3 per cent.

131. Mr. J. Walsh asked the Minister for Finance the cost for each £100 of raising the age tax allowance from its current level to £1,000. [1762/97]

Minister for Finance (Mr. Quinn): The age allowance is at present £200 for a single or [1121] widowed person and £400 for a married couple. I am informed by the Revenue Commissioners that increasing the age allowance by each £100 for a single or widowed person and by £200 for a married couple is estimated to cost £2.8 million in a full year. It is estimated that the cost of increasing the allowance to £1,000 for a single or widowed person and £2,000 for a married couple would be of the order of £22 million in a full year.

132. Mrs. O'Rourke asked the Minister for Health if he will review the case of a person (details supplied) in County Westmeath who cannot qualify for a disabled person's training allowance in spite of the fact that he is disabled because he is not in receipt of a disabled person's allowance but is in receipt of a social welfare payment; and if his attention has been drawn to the fact that the refusal of a training allowance has meant that this person has been unable to take up a job for which he had been interviewed and which he had secured. [1283/97]

Minister for Health (Mr. Noonan,: Limerick East): It is not normal for an individual to retain their disabled person's training allowance on taking up employment. However, as the payment of a disabled person's training allowance in any individual case is a matter for the health board concerned, I am referring the Deputy's question to the chief executive officer, Midland Health Board, with a request that he examine the matter and reply directly to the Deputy as a matter or urgency.

133. Mr. Killeen asked the Minister for Health the way in which he proposes to address problems relating to the registration of certain marriages arising from various provisions of the Family Law Act, 1995: and if he will make a statement on the matter. [1628/97]

134. Mr. Killeen asked the Minister for Health whether any marriages have not been registered due to administrative errors in public offices relating to the Family Law Act 1995; and if he will introduce amending legislation to retrospectively give recognition to such marriages. [1629/97]

135. Mr. Killeen asked the Minister for Health the number of marriages performed in the State which have not been registered due to the failure to comply with certain provisions of the Family Law Act, 1995; and the plans, if any, he has to regularise the situation. [1630/97]

Minister for Health (Mr. Noonan,: Limerick East): I propose to take Questions Nos. 133, 134 and 135 together.

The administration of the civil registration system is a matter for An tÁrd-Chláraitheoir [1122] (Registrar-General) of Births, Deaths and Marriages and for local registrars who act under his general direction.

I am aware that there are currently 31 cases receiving attention in the Office of An tÁrd-Chláraitheoir where there has not been compliance with the requirements for a valid marriage contained in the Family Law Act, 1995.

The requirements of a valid marriage set out at sections 31 and 32 of the Family Law Act, 1995 are each declared to be a substantive requirement of a valid marriage and where either section has not been complied with a marriage may not be registered.

The difficulties in the cases referred to arise primarily from the failure of the persons concerned to give three months written notification of their intention to marry to the appropriate Registrar of Marriages as required by section 32. Unfortunately, in a small number of cases these errors did not come to light in sufficient time to enable remedial action to be taken before the marriages took place.

I very much regret the inconvenience that may be caused to the couples affected and every effort is being made to find an early and satisfactory resolution to the problems involved. Officials from my Department and the Office of An tÁrd-Chláraitheoir are currently in consultations with officials from the Department of Equality and Law Reform. All avenues of approach, including amending legislation, are being considered and decisions in the matter will be announced as quickly as possible.

136. Mr. D. Ahern asked the Minister for Health the current position regarding the need to develop an outreach programme for the Dundalk area of County Louth, in order to protect young people at risk, particularly those who might be likely to be drawn into teenage prostitution; and if he will make a statement on the matter. [25200/96]

Minister of State at the Department of Health (Mr. Currie): A submission from the North-Eastern Health Board proposing a comprehensive inter-agency response to the problem of teenage prostitution in the Dundalk area is at present being evaluated in my Department.

137. Mr. B. O'Keeffe asked the Minister for Health if he is concerned at the fears that fluoride in toothpaste is causing discolouration of children's teeth; and the action, if any, he proposes to take in this regard. [25201/96]

Minister for Health (Mr. Noonan,: Limerick East): Recent evidence suggests that in western industrialised countries many children begin to use a flouride toothpaste regularly from a young age, in many instances before the age of one year, [1123] when there is a greater likelihood of their ingesting some of the toothpaste used at each brushing.

Studies have shown that use of fluoride toothpaste from an early age is associated with higher levels of very mild fluorosis or discolouration, and this tends to support the view that infants and young children inadvertently swallow a considerable proportion of the toothpaste that they use. The fluorisis recorded in these studies is of a very mild grade, not aesthetically compromising and could only be recorded by specially trained dentists using special lighting conditions. Such studies are carried out in this country on a regular basis and confirm the findings of studies in other countries.

Properly formulated toothpastes should continue to be used by the whole population. Parents and guardians should supervise young children up to six years of age when toothbrushing and only a pea-size amount of toothpaste should be used.

My Department, through the health promotion unit, continues to support dental health campaigns aimed at parents and young children which promote this message.

138. Mr. E. Byrne asked the Minister for Health the progress, if any, made to date in relation to the claim by chartered physiotherapists for a wage increase under the Programme for Competitiveness and Work; the current status of this pay claim; and if he will make a statement on the matter. [25225/96]

139. Mr. D. Ahern asked the Minister for Health if his attention has been drawn to the need to review the salary scale of physiotherapists; and if he will make a statement on the matter. [25269/96]

183. Mr. O'Donoghue asked the Minister for Health if he will ensure that physiotherapists are adequately remunerated; and if he will make a statement on the matter. [1598/97]

184. Mr. O'Donoghue asked the Minister for Health the current status of the physiotherapists pay negotiations; and if he will make a statement on the matter. [1601/97]

Minister for Health (Mr. Noonan,: Limerick East): I propose to take Questions Nos. 138, 139, 183 and 184 together.

Physiotherapists, similar to all other paramedical professions, have benefited in full from all standard and special pay awards under the various national pay programmes down through the years. The relative position of physiotherapists, in terms of remuneration, has been maintained with those of their colleagues in other paramedical disciplines.

IMPACT, on behalf of physiotherapists, is currently pursuing a pay claim under Clause 2 (iii) [1124]— Annex 1 of the Programme for Competitiveness and Work. These negotiations are complex and are ongoing under the auspices of Health Service Employers' Agency, with a view to arriving at a mutually satisfactory conclusion as soon as possible.

In these circumstances, I am sure that you will appreciate that any further comment on my part would not be appropriate or helpful.

140. Mr. Ring asked the Minister for Health when a person (details supplied) in County Mayo will be called to have a brace fitted by the Western Health Board in view of the fact that she has been on the waiting list for over two years. [25281/96]

Minister for Health (Mr. Noonan,: Limerick East): As the provision of orthodontic services to eligible persons in County Mayo is the statutory responsibility of the Western Health Board, I have asked the chief executive officer of the Western Health Board to investigate the position in relation to this case and to reply to the Deputy directly as a matter of urgency.

141. Mr. Ring asked the Minister for Health when a replacement dentist will be recruited for Belmullet, County Mayo, in view of the fact that no dentist has been servicing the people in this area for many months. [1014/97]

Minister for Health (Mr. Noonan,: Limerick East): I refer to Question No. 121 of 5 November 1996 which the Deputy asked on this issue in which I was advised by the Western Health Board that every effort is being made by the board to recruit a replacement dentist for the Belmullet area as soon as possible.

I have been further advised by the Western Health Board that despite the best efforts of the board through advertising and using every other available means, it has not been possible to recruit a full-time dentist for the Belmullet area. Cover is provided on two days per week by a dentist who travels from Ballina. In addition, two evening sessions are provided for the town area by a dentist who resides locally but, who is not available to provide any additional services to the board.

The Western Health Board has advised me that it is not possible to say when a full-time dentist will be available due to difficulties experienced by the board in recruiting in remote areas.

[1125]

142. Mr. Ring asked the Minister for Health if he will instruct the Western Health Board to increase the level of home help hours for a person (details supplied) in County Mayo in view of the fact that correspondence to the health board dated 10 December 1996 was not replied to and the level of dependency for this person is high. [1015/97]

Minister for Health (Mr. Noonan,: Limerick East): I am having the case raised by the Deputy investigated and I have asked the Western Health Board to respond directly to you with the findings.

143. Mr. Ring asked the Minister for Health if he will instruct the Western Health Board to provide a general anaesthetic for a person (details supplied) in County Mayo in order that she can receive the dental treatment urgently needed. [1016/97]

Minister for Health (Mr. Noonan,: Limerick East): As the provision of dental treatment to eligible persons in County Mayo is the statutory responsibility of the Western Health Board, I have asked the chief executive officer of the Western Health Board to investigate the position in relation to this case and to reply to the Deputy directly as a matter of urgency.

144. Mr. Davern asked the Minister for Health the number of children born at St. Joseph's Hospital, Clonmel, County Tipperary between I January 1996 and 31 December 1996. [1017/97]

Minister for Health (Mr. Noonan,: Limerick East): There were 1,003 children born at St. Joseph's Hospital during 1996.

145. Mr. Davern asked the Minister for Health if he received an application from the South-Eastern Health Board for a meeting with its members from Tipperary South Riding and Kilkenny regarding the appointment of a paediatrician to their respective areas; if he intends meeting with a deputation from these areas in this regard; and if so, when. [1018/97]

Minister for Health (Mr. Noonan,: Limerick East): Comhairle na nOspidéal was established on a statutory basis to regulate the number and type of consultant appointments in hospitals engaged in the provision of services under the Health Act, 1970. In the circumstances, it would not be appropriate for me to intervene in relation to the statutory functions of Comhairle na nOspidéal. Accordingly, I am of the view that meeting a health board deputation with that intent would not be of benefit.

[1126]

146. Mr. Davern asked the Minister for Health when the plans will proceed for the refurbishment of Our Lady's Hospital, Cashel and St. Joseph's Hospital, Clonmel, County Tipperary; the reason they have not gone to tender after a lapse of 12 months following his announcement in relation to the hospital services in south Tipperary; and if he will make a statement on the matter. [1019/97]

Minister for Health (Mr. Noonan,: Limerick East): Following the resolution of difficulties between the South-Eastern Health Board, the Cashel Hospital Action Committee Limited and Jack Crowe on hospital services for South Tipperary, I confirmed my commitment to the provision of the £12.5 million investment in health services for Clonmel, Cashel and Tipperary town.

In relation to St. Joseph's Hospital, Clonmel, surgical services are due to be transferred there from Our Lady's Hospital, Cashel. A planning brief is almost completed and it is expected that instructions can be issued to a design team in the next few weeks. I am prepared to commit £5 million for the building phase of this proposal.

Planning briefs relating to Cashel-based services are almost completed. It is expected that the selection and appointment of the design team will be completed soon.

147. Miss Coughlan asked the Minister for Health if he will provide additional funding in 1997 to alleviate the waiting list of 1,224 children who are awaiting orthodontic procedures in County Donegal. [1076/97]

Minister for Health (Mr. Noonan,: Limerick East): The provision of orthodontic services in Donegal is primarily a matter for the North-Western Health Board. Development of these services will be considered in the context of priorities determined by the board.

148. Mr. Bree asked the Minister for Health if his attention has been drawn to the complaints of a number of parents regarding the paediatric unit at Sligo General Hospital; if his attention has further been drawn to the condition of the unit; the upgrading and refurbishment works, if any, planned for this paediatric unit; and if he will make a statement on the matter. [1077/97]

Minister for Health (Mr. Noonan,: Limerick East): I have been advised by the North-Western Health Board that it has not received any complaints from parents regarding the paediatric unit at Sligo General Hospital. However, the board has further advised that it has received correspondence from the Deputy in which he referred to complaints received from his constituents. The board investigated these matters and a reply issued to the Deputy in this regard.

The board has identified the upgrading and refurbishing of the paediatric unit at Sligo General Hospital as a priority development need. The [1127] works proposed by the North-Western Health Board are in two stages and funding was provided by my Department to allow the first stage of the works to be undertaken and completed in 1996. Proposals for further works at the paediatric unit will be considered as sympathetically as possible in the context of identified health priorities and the resources available.

[1128]

149. Mr. Nealon asked the Minister for Health the number of deaths from tuberculosis over the past ten years in the North-Western Health Board area and in counties Sligo, Leitrim and Donegal; if he will give a breakdown of such tuberculosis deaths as between males and females; and if he will make a statement on the matter. [1109/97]

Minister for Health (Mr. Noonan,: Limerick East): The numbers of tuberculosis deaths over the past ten years, by sex and area of residence, for each county in the North-Western Health Board area are set out in the following table. The latest year for which such data is available is 1995.

Tuberculosis Deaths in the North-Western Health Board Area 1986 to 1995

	Sligo		Leitrim		Donegal		Total
	Male	Female	Male	Female	Male	Female	Male	Female
1986	0	0	2	0	0	1	2	1
1987	0	0	1	0	4	0	5	0
1988	1	2	0	0	2	0	3	2
1989	1	0	0	0	3	2	4	2
1990	0	0	0	0	3	1	3	1
1991	0	0	0	0	4	2	4	2
1992*	0	0	2	0	2	0	4	0
1993*	0	0	2	0	2	1	4	1
1994*	0	1	0	0	0	0	0	1
1995*	0	0	0	1	2	2	2	3

Source: Central Statistics Office.

*Provisional figures.

150. Mr. Sargent asked the Minister for Health the assistance, if any, which has been provided from the national lottery to treat and rehabilitate drug addicts; and the further allocations, if any, which can be made in this regard. [1147/97]

Minister for Health (Mr. Noonan,: Limerick East): The national lottery provides funding for a number of services in the health area including the treatment and rehabilitation of drug addicts. In 1996 for instance, a total of £561,000 was provided for these services through the health boards to complement funds from the Exchequer. It is hoped to maintain this level of lottery funding in the future. Grants paid directly by my Department from national lottery funds to voluntary organisations involved in treatment and rehabilitation are considered on the basis of individual applications. In 1996, a total of £112,500 was allocated to these organisations.

151. Mr. Sargent asked the Minister for Health the consideration, if any, he has given to using Harcourt Street Hospital as a residential detoxification facility. [1149/97]

152. Mr. Sargent asked the Minister for Health the consideration, if any, he has given to using the Meath Hospital as a residential detoxification facility. [1152/97]

153. Mr. Sargent asked the Minister for Health the consideration, if any, he has given to using the Adelaide Hospital as a residential detoxification facility. [1153/97]

Minister for Health (Mr. Noonan,: Limerick East): I propose to answer Questions Nos. 151, 152 and 153 together.

As the Deputy is aware the provision of drug treatment services in Dublin is a matter for the Eastern Health Board in the first instance.

In considering locations for drug treatment centres, the board has regard to the extent of drug misuse in a particular area, the existing drug treatment services and the availability of suitable premises. However, as the Deputy is aware, the intention is to sell all of the three existing hospitals on the opening of Tallaght Hospital and to apply the proceeds to the support of activities associated with the new hospital. If the Eastern Health Board decides that a detoxification facility is required in the area in which the hospitals are located, all options for the provision of such premises will be considered by the Board, in consultation with my Department.

[1129]

154. Mr. E. O'Keeffe asked the Minister for Health if he will have investigations made into a case (details supplied) in County Cork where home help has been withdrawn from an old age pensioner who is living alone and who is an extuberculosis patient; if his attention has been drawn to the fact that this pensioner is in need of the home help service; if he will have arrangements made to have the service restored; and his policy, if any, on home help. [1196/97]

Minister for Health (Mr. Noonan,: Limerick East): Section 61 of the Health Act, 1970 enables health boards to make arrangements to assist in the maintenance at home of persons who, but for the provisions of such a service would require to be maintained otherwise than at home. This section empowers, without obliging, health boards to provide support services such as home help, laundry and meals.

As the Deputy may be aware, I have decided to have an examination of all aspects of the home help service carried out by an independent body which will advise on measures to ensure the equity and high quality of service in respect of providers and recipients. I am pleased to say that my Department is examining tenders for this review and it is expected that the review should be completed within three to four months.

I am having the case raised by the Deputy investigated and I have asked the Southern Health Board to respond directly to him with the findings.

155. Mrs. Geoghegan-Quinn asked the Minister for Health when Deputy Maire GeogheganQuinn will receive a definitive response to her letters (details supplied) of 10 June 1996 and 9 October 1996. [1206/97]

Minister for Health (Mr. Noonan,: Limerick East): I am writing to the Deputy today in relation to the matter raised in her correspondence.

156. Mrs. Geoghegan-Quinn asked the Minister for Health if the Irish Foster Care Association was consulted in relation to the proposed Juvenile Justice/Children Bill; if so, when; the method of consultation involved; and if he will make a statement on the matter. [1207/97]

Minister of State at the Department of Health (Mr. Currie): Officials of the Departments of Justice and Health met representatives of the Irish Foster Care Association to discuss their concerns about aspects of the Children Bill on 17 January 1997.

157. Mrs. Geoghegan-Quinn asked the Minister for Health if he will respond in a positive way to the campaign by the Union of Students in Ireland regarding the right to a medical card for thirdlevel students; and if he will make a statement on the matter. [1208/97]

[1130]Minister for Health (Mr. Noonan,: Limerick East): Under the Health Act, 1970, determination of medical card entitlement is the responsibility of the chief executive officer of the appropriate health board.

Under arrangements currently in place persons aged 16 to 25, including students, who are dependants of a person who is not a medical card holder, are not normally entitled to a medical card except where they have an entitlement under EU regulations or where they are in receipt of a disabled person's maintenance allowance. Students who are financially independent are entitled to apply for a medical card in their own right and are assessed on the same income criteria as all other applicants. The decision on whether or not a person is regarded as a dependant or as being financially independent is made by the chief executive officer of the health board on the basis of the circumstances of each individual case.

It is open to all persons, be they parents or students, to apply to the chief executive officer of the appropriate health board for health services if they are unable to provide these services for themselves or their dependants without hardship. I am satisfied that health boards give sympathetic consideration to applications from, or on behalf of, students when the circumstances warrant it.

158. Mrs. Geoghegan-Quinn asked the Minister for Health the number of personal assistants employed in the country by people with physical disabilities. [1209/97]

159. Mrs. Geoghegan-Quinn asked the Minister for Health when he intends to set up an independent living fund to enable people with disabilities to employ personal assistants; and if he will make a statement on the matter. [1210/97]

160. Mrs. Geoghegan-Quinn asked the Minister for Health when he intends to commence the funding of all personal assistance services for people with physical disabilities; and if he will make a statement on the matter. [1211/97]

170. Ms Shortall asked the Minister for Health the plans, if any, he has to implement Towards an Independent Future; and the funding he has secured in order to do so. [1425/97]

198. Mr. M. Ahern asked the Minister for Health if he has acquired the necessary resources to implement the report of the Review Group on Health and Personal Social Services for people with physical and sensory disabilities; and if he will make a statement on the matter. [1806/97]

Minister for Health (Mr. Noonan,: Limerick East): I propose to take Questions Nos. 158, 159, 160, 170 and 198 together.

The report of the Review Group on Health and Personal Social Services for People with Physical and Sensory Disabilities, Towards an Independent [1131] Future, was published at the end of last year. The report highlights the need to develop a comprehensive range of flexible community services to meet the needs of people with disabilities, their family and carers. Recommendations include proposals for the development of day services, residential places, respite places and nursingparamedical-therapy services as well as the development of personal assistance services. The report recognises the important role played by voluntary organisations in providing services and proposes new structures at health board level to enhance the co-ordination and planning of service delivery between the statutory and voluntary sectors. It also recommends the establishment of a database on the health service needs of people with physical and sensory disabilities to provide a firm basis for planning services.

The report has now been circulated to health boards and officials from my Department are in discussion with them regarding the process of implementing the report. The report will also be considered, in conjunction with the health recommendations of the Commission on the Status of People with Disabilities, by the inter-departmental task force and monitoring committee approved by the Government recently.

The report makes recommendations about the development of personal assistance services. My Department currently funds a personal assistance service for people who participated in the Centre for Independent Living Horizon Pilot Project, INCARE and through which 43 people are currently employed as personal assistants. I am aware that the Centre for Independent Living is involved in the organisation of personal assistance services through the FAS community employment scheme in a number of locations around the country.

The report recommends that funding deficits for existing services be addressed in the first instance and identifies priority service developments including the personal assistance service. Additional funding will be provided in 1997 to help put the services on a more secure financial footing and to enable other priority services to be developed.

161. Mr. Ring asked the Minister for Health if he will instruct the Western Health Board to ensure that a person (details supplied) in County Mayo receives dental treatment immediately in view of the fact that the delay is causing hardship. [1221/97]

Minister for Health (Mr. Noonan,: Limerick East): The provision of dental treatment to persons in County Mayo is the responsibility of the Western Health Board.

I understand from the board that in the special circumstances of this case the board made arrangements for this person to receive dental [1132] treatment. However, in the meantime, the dental surgeon who would have carried out the treatment unfortunately resigned. The Western Health Board has undertaken to provide the necessary treatment when the replacement has been recruited.

I have been further advised by the board that despite the best efforts of the board, through advertising and using every other available means, it has so far not been possible to recruit a full time dentist for the Belmullet area. Cover is provided on two days per week by a dentist who travels from Ballina.

The Western Health Board is continuing in its efforts to appoint a replacement dentist in the Belmullet area.

162. Mr. Ring asked the Minister for Health if he will instruct the Western Health Board to ensure that a person (details supplied) in County Mayo receives dental treatment immediately in view of the fact that the delay is causing hardship. [1222/97]

Minister for Health (Mr. Noonan,: Limerick East): As the provision of dental treatment to eligible persons in County Mayo is the statutory responsibility of the Western Health Board I have asked the chief executive officer of the Western Health Board to investigate the position in relation to this case and to reply to the Deputy directly as a matter of urgency.

163. Mr. Ring asked the Minister for Health if he will instruct the Western Health Board to ensure that a person (details supplied) in County Mayo who has been waiting for over three years to have a dental brace fitted, is called immediately in view of the fact that the delay is causing hardship. [1223/97]

Minister for Health (Mr. Noonan,: Limerick East): As the provision of orthodontic treatment to eligible persons in County Mayo is the statutory responsibility of the Western Health Board I have asked the chief executive officer of the Western Health Board to investigate the position in relation to this case and to reply to the Deputy directly as a matter of urgency.

164. Mr. Davern asked the Minister for Health the total cost to his Department of the Presidency of the EU; and if he will give details of such costs. [1245/97]

Minister for Health (Mr. Noonan,: Limerick East): The cost to my Department of Ireland's Presidency of the EU is estimated at £400,000. This includes the support of a senior officer of the Department in the Permanent Representation in Brussels, the contribution to the cost of the Colloquium and the EU Presidential Meeting on Blood Safety and Self Sufficiency in September 1996 and the Conference on Alzheimer's Disease in [1133] November 1996. It also includes the cost of additional travel within and outside Europe to fulfil obligations deriving from the Presidency.

165. Mr. B. Smith asked the Minister for Health the stage of planning of the proposed health care unit for Cootehill, County Cavan; if funding will be provided for this project in the 1997 capital budget allocation to the North-Eastern Health Board; when tenders will be invited; when construction work will commence; and if he will make a statement on the matter. [1254/97]

Minister for Health (Mr. Noonan,: Limerick East): As the Deputy is aware, in 1996 the North-Eastern Health Board submitted a list of health centre priority projects for development to my Department, including a proposal for a health care unit in Cootehill, County Cavan. I understand from the board that the project in Cootehill is at design stage of planning and that a planning application will be lodged shortly with Cavan County Council. Progress on this project will be subject to planning permission being received and available capital funding.

The question of funding for health centre priorities in 1997 is currently under consideration in my Department and will be communicated to the health boards in the near future.

166. Mrs. O'Rourke asked the Minister for Health the approximate waiting time and the steps, if any, which must be taken by persons (details supplied) in Dublin 16 who applied some time ago for inter country adoption and who reside in the Eastern Health Board area. [1279/97]

Minister of State at the Department of Health (Mr. Currie): The Adoption Act, 1991 imposed a statutory duty on health boards to carry out, as soon as practicable, assessments for foreign adoptions. In carrying out this function, the boards must have regard to the competing demands in other areas of the child care services, particularly in relation to the protection of children from abuse and neglect, which takes priority over all other work. I understand that the procedure from first application to ultimate approval for a foreign adoption in the Eastern Health Board takes at least two years. The assessment process itself takes about nine months. However, due to the volume of applications received, the board is no longer able to estimate the waiting period before a social worker is allocated to a particular case. The board deals with applications in strict numerical order and it is open to applicants to ring the board at any time to inquire as to progress concerning the processing of cases.

Under the Act, it is also open to an applicant to request a registered adoption society to carry out an assessment. However, there is no obligation [1134] on a registered adoption society to carry out such an assessment.

167. Mr. Hilliard asked the Minister for Health his views on whether refunds of the cost of prescribed medicines should be paid by all health boards one month after receipt of claims in view of the fact that some health boards currently do not make refunds for at least three months. [1292/97]

Minister for Health (Mr. Noonan,: Limerick East): Under the drugs refund scheme which covers expenditure by the whole family, any expenditure on prescribed medication above £90 for use in a calendar quarter is refunded by the health board. Health boards endeavour to make refunds as quickly as possible. However, there has been a problem with delays in processing claims in the North-Eastern Health Board area where until recently a manual system of payment was in operation. A new computer system to cater for the drug refund scheme was installed in the Cavan-Monaghan and Louth community care areas with effect from 1 December 1996. This system is currently being installed in the Meath area and it is expected that this will provide claimants with a more efficient service and that claims will now be processed within a four to six weeks period.

I would point out to the Deputy that there is a scheme available for people who incur ongoing expenses on medicines whereby they do not have to await refund payments. The drug cost subsidisation scheme was introduced to cater specifically for people who have a long-term medical condition with a regular and ongoing requirement for prescribed drugs and medicines. Persons who qualify for inclusion in this scheme pay £32 per month to their pharmacist in respect of all prescribed medicine dispensed during that month. In order to qualify for this scheme persons must be certified by a medical practitioner on an individual basis.

I am satisfied that appropriate and comprehensive support is being provided by the State through the existing range of community drug schemes particularly to those who incur significant expenses on drugs and medicines.

168. Mr. Ring asked the Minister for Health when a person (details supplied) in County Mayo, currently in hospital in Cork, will be assessed in order that he can be moved home to County Mayo in view of the fact that his father is in hospital and cannot travel to see him. [1294/97]

Minister of State at the Department of Health (Mr. O'Shea): It would not be appropriate to provide the information sought by the Deputy in relation to the individual concerned by way of a [1135] reply to a parliamentary question. I will write to the Deputy with the information requested.

[1136]

169. Ms Keogh asked the Minister for Health the State and semi-State boards under the aegis of his Department; the appointments, if any, which have been made to these boards in the past year; the number of women who have been appointed; the percentage of women currently on each of these boards; and the end date of the current term of all of the boards. [1345/97]

Minister for Health (Mr. Noonan,: Limerick East): The information requested by the Deputy is set out as follows. The term of members of boards frequently do not finish on the same day. Individual members are appointed from time to time, as appropriate.

The appointments that have been made by the Minister for Health to boards under the aegis of the Department of Health from 1 January 1996 to 10 January 1997.

Board	Member	Date of Appointment
Blood Transfusion Service Board	Dr. Rosemary Boothman	4 September 1996
Valerie Mannix	4 September 1996
	Prof. Ian Temperley	4 September 1996
	Dr. Rosemary Hone	29 October 1996
	Prof. Shaun R. McCann	29 November 1996
Board of the Adelaide and Meath Hospital, Dublin, incorporating the National Children's Hospital	Jennifer Sowman	1 August 1996
Gay R.L. Hogan	1 August 1996
James V. Ruttle	1 August 1996
	Maurice J. Brooks	1 August 1996
	Dr. Kenneth Milne	1 August 1996
	Randall Plunkett	1 August 1996
	Prof. Davis Coakley	30 August 1996
	Cllr. Charles O'Connor	20 September 1996
Food Safety of Ireland	Dr. Daniel O'Hare	6 November 1996
Prof. Cecily Kelleher	6 November 1996
	James Kennedy	6 November 1996
	Caroline Gill	6 November 1996
	Prof. John Hannan	6 November 1996
	Darina Allen	6 November 1996
	Dr. Fergus Hill	6 November 1996
	William Fagan	6 November 1996
	Ann Scanlon	6 November 1996
Health Research Board	Jim O'Brien	31 May 1996
Health Service Employers Agency	John Cooney	12 December 1996
P.J. Fitzpatrick	12 December 1996
	Martin Cowley	12 December 1996
	Marina Cronin	12 December 1996
	Frank Ahern	12 December 1996
	Brendan Phelan	12 December 1996
	Michael Kelly	12 December 1996
Irish Medicines Board	Pat O'Mahony	3 January 1996
Rita Clancy	3 January 1996
	Albert J. Costello	3 January 1996
	Denis Cronin	3 January 1996
	Marie Hogan	3 January 1996
	Anne Nolan	3 January 1996
	Tom O'Mahony	3 January 1996
	Prof. Kevin O'Malley	3 January 1996
	Maura Waters	3 January 1996
Midland Health Board	Dr. Katherine Brown	2 September 1996
William Aird	20 December 1996
Mid-Western Health Board	Cllr. Mary Jackman	14 March 1996
National Cancer Registry Board	Prof. Bernadette Herity	18 October 1996
Prof. Áine Hyland	18 October 1996
	Prof. Niall O'Higgins	18 October 1996
	Dr. James J. Fennelly	18 October 1996
	Dr. Kieran Sheahan	18 October 1996
	Dr. Martin Rouse	18 October 1996
	Prof. Alun Evans	18 October 1996
	Dr. Elizabeth Keane	18 October 1996
	Dr. Niall Tierney	18 October 1996
	Fergal Lynch	18 October 1996
[1137][1138]National Council for the Elderly	Tim Leddin	20 December 1996
National Rehabilitation Board	Patrick Halley	31 July 1996
Carmel Caden	22 October 1996
	Laurence Kavanagh	22 October 1996
	Jacqui Browne	23 December 1996
	Cllr. John Flannery	23 December 1996
North-Eastern Health Board	Cllr. Tom Kelly	16 February 1996
St. James's Hospital Board	Seamus O'Brien	31 January 1996
St. Luke's and St. Anne's Hospital Board	Brian Slowey	10 January 1997
Frank Flannery	10 January 1997
	Donal O'Mahony	10 January 1997
	Paddy Shanley	10 January 1997
	Kay Conroy	10 January 1997
	Kevin O'Donnell	10 January 1997
	Sr. Catherine Mulligan	10 January 1997
	Dr. John Cooney	10 January 1997
	Sr. Bernadette McMahon	10 January 1997
	Sr. Antoinette Kelleher	10 January 1997
Tallaght Hospital Board	Prof. Richard Conroy	5 July 1996
Seamus O'Brien	5 July 1996
	Prof. D.J. McConnell	5 July 1996
	Mary McCarthy	5 July 1996
	Prof. Hilary Hoey	5 July 1996
	Catherine McDaid	5 July 1996
	Eamon Walsh T.D.	5 July 1996
	Vincent Barton	5 July 1996
	Anne Farrell	5 July 1996
	Chris Flood T.D.	5 July 1996
Voluntary Health Insurance Board	Sheila Brazil	27 May 1996
Paul Coulson	27 May 1996
	Ann Fitzgerald	27 May 1996
	Phil Flynn	27 May 1996
	John McMenamin	27 May 1996
	John O'Connor	27 May 1996
	Lucy Pugh	27 May 1996
	Clare O'Connor	11 June 1996

The total number of women appointed was 32.

Appendix B.

Boards under the aegis of the Minister for Health.

Refers to Appointments at 10 January 1997.

Board Name	Percentage of Women Members
	%
An Bord Altranais	52
An Bord Uchtala	66
Beaumont Hospital Board	40
Blood Transfusion Service Board	42
Board of the Adelaide and Meath Hospital	26
Bord na Radharmaistoiri	27
Comhairle na nOspideal	45
Comhairle na Nimheanna	28
Dental Council	16
Drug Treatment Centre Board	10
Dublin Dental Hospital Board	38
Food Safety Advisory Board	38
Food Safety Board of Ireland	44
General Medical Services Payments Board	0
Health Research Board	31
Health Service Employers Agency	14
Hospital Bodies Administrative Bureau	33
Irish Medicines Board	44
Leopardstown Park Hospital	33
Medical Council	25
National Council for the Elderly	57
National Cancer Registry Board	30
National Rehabilitation Board	40
St. James's Hospital Board	17
St. Luke's and St. Anne's Hospital Board	40
Tallaght Hospital Board	26
Voluntary Health Insurance Board	42
Eastern Health Board	24
Midland Health Board	13
Mid-Western Health Board	18
North-Eastern Health Board	10
North-Western Health Board	15
South-Eastern Health Board	10
Southern Health Board	15
Western Health Board	13

[1139][1140] Appendix C.

Expiry Dates of Boards Under the Aegis of the Minister for Health.

Name of Board	No. of Members	Term Expires
An Bord Altranais	29	All on 02-10-97
An Bord Uchtála	9	All on 29-01-98
Beaumont Hospital Board	15	14 on 03-12-98 1 on 13-01-97
Bord of the Adelaide and Meath	23	21 on 31-07-99 1 on 29-08-99 1 on 19-09-99
Blood Transfusion Service Board	12	Various dates from 13-01-97-28-11-99
Bord na Radharmaistoiri	11	All on 31-12-99
Comhairle na nOspideal	27	All on 15-12-00
Comhairle na Nimheanna	18	All on 20-12-00
Dental Council	19	All on 12-11-00
Drug Treatment Centre Board	10	All on 11-10-97
Dublin Dental Hospital Board	14	All on 30-07-98
Food Safety Advisory Board	16	All on 21-06-99
Food Safety Board of Ireland	9	No Specific Term
General Medical Services Payments Board	10 (at present)	No Specific Term
Health Research Board	16	All on 06-02-97
Health Service Employers Agency	7 (at present)	All on 11-12-99
Hospital Bodies Administrative Bureau	3 (at present)	No Specific Term
Irish Medicines Board	9	All on 03-01-01
Leopardstown Park Hospital	9	All on 11-01-00
Medical Council	25	6 on 15-06-99 19 on 12-05-99
National Cancer Registry Board	10	All on 17-01-01
National Council for the Elderly	29	Various dates between 01-09-96 — 19-12-00
National Rehabilitation Board	20	Various dates between 05-10-97 — 22-12-00
St. James's Hospital Board	18	All on 05-12-97
St. Luke's and St. Anne's Hospital Board	10	All on 30-06-98
Tallaght Hospital Board	23 (at present)	Various dates between 18-04-97 — 04-07-99
Voluntary Health Insurance Board	12	Various dates between 06-02-97 — 10-06-01
Eastern Health Board	38	16 on 30-06-97 22 on the day after successor appointed by relevant Local Authorities
Midland Health Board	30	14 on 30-06-97 16 on the day after successor appointed by relevant Local Authorities.
Mid-Western Health Board	28	13 on 30-06-97 15 on the day after successor appointed by relevant Local Authorities
North-Eastern Health Board	30	14 on 30-06-97 16 on the day after successor appointed by relevant Local Authorities
North-Western Health Board	27	13 on 30-06-97 14 on the day after successor appointed by relevant Local Authorities
South-Eastern Health Board	31	15 on 30-06-97 16 on the day after successor appointed by relevant Local Authorities
Southern Health Board	33	15 on 30-06-97 18 on the day after successor appointed by relevant Local Authorities
Western Health Board	31	14 on 30-06-97 17 on the day after successor appointed by relevant Local Authorities

171. Mr. Penrose asked the Minister for Health when the post of full time paediatrician will be advertised by the local appointments commission for Longford Westmeath General Hospital; and if he will make a statement on the matter. [1445/97]

Minister for Health (Mr. Noonan,: Limerick East): I have been informed by the Midland Health Board that the post referred to by the Deputy is currently filled on a temporary basis.

The Local Appointments Commission has indicated that it expects to advertise the competition to seek to fill this post on a permanent basis shortly.

172. Dr. Upton asked the Minister for Health the current position in relation to controls on the use of aspartamine as a sweetener. [1503/97]

Minister of State at the Department of Health (Mr. O'Shea): The use of sweeteners in foodstuffs is regulated in Ireland by the European Communities [1141] (General Provisions on the Control of Additives, and in Particular Colours and Sweeteners for Use in Foodstuffs) Regulations, 1995 (S.I. No. 344 of 1995), which transpose into Irish law the provisions of several EU directives on the use of such additives in food.

Under these Regulations, aspartame (EC No. E 951) may be used as an additive in food in accordance with the following table:

Foodstuffs	Maximum usable dose
Non Alcohol Drinks
Water-based flavoured drinks, energy reduced or with no added sugar	600 mg/1
Milk and milk-derivative-based or fruit-juice-based drinks, energy-reduced or with no added sugar	600 mg/1
Desserts and similar products
Water-based flavoured desserts, energy-reduced or with no added sugar	1,000 mg/kg
Milk and milk-derivative-based preparations, energy-reduced or with no added sugar	1,000 mg/kg
Fruit and vegetable-based desserts, energy-reduced or with no added sugar	1,000 mg/kg
Egg-based desserts, energy-reduced or with no added sugar	1,000 mg/kg
Cereal-based desserts, energy-reduced or with no added sugar	1,000 mg/kg
Fat-based desserts, energy-reduced or with no added sugar	1,000 mg/kg
‘snacks’: certain flavours of ready to eat, prepacked, dry, savoury starch products and coated nuts	500 mg/kg
Confectionery
Confectionery with no added sugar	1,000 mg/kg
Cocoa or dried-fruit-based confectionery, energy-reduced or with no added sugar	2,000 mg/kg
Starch-based confectionery, energy-reduced or with no added sugar	2,000 mg/kg
Cocoa-, milk-, dried-fruit or fat-based sandwich spreads, energy reduced or with no added sugar	1,000 mg/kg
Chewing gum with no added sugar	5,500 mg/kg
Cider and perry	600 mg/1
Alcohol-free or with an alcohol content not exceeding 1.2% vol	600 mg/1
‘Biere de table/Tafelbier Beer’ (original wort content less than 6%) except for ‘Obergariges Einfachbier’	600 mg/1
Beers with a minimum acidity of 30 milli-equivalents expressed as NaOH	600 mg/1
Brown Beers of the ‘oud bruin’ type	600 mg/1
Edible ices, energy-reduced or with no added sugar	800 mg/kg
Canned or bottled fruit, energy-reduced or with no added sugar	1,000 mg/kg
Energy-reduced jams, jellies and marmalades	1,000 mg/kg
Energy-reduced fruit and vegetable preparations	1,000 mg/kg
Sweet-sour preserves of fruit and vegetables	300 mg/kg
Sweet-sour preserves and semi-preserves of fish and marinades of fish, crustaceans and molluscs	300 mg/kg
Sauces	350 mg/kg
Mustard	350 mg/kg
Fine bakery products for special nutritional uses	1,700 mg/kg
[1142]Complete formulae for weight control intended to replace total daily food intake or an individual meal	800 mg/kg
Complete formulae and nutritional supplements for use under medical supervision	1,000 mg/kg
Liquid food supplements/dietary integrators	600 mg/kg
Solid food supplements/dietary integrators	2,000 mg/kg
Vitamins and dietary preparations	5,500 mg/kg

The regulations also specify the purity criteria for aspartame.

A new directive of the European Parliament and of the Council amending the existing provisions on sweeteners for use in foodstuffs was recently adopted but has not yet been published in the Official Journal of the European Communities. The effect of this amendment will be to extend the permitted use of aspartame in the following manner.

Foodstuffs	Maximum usable dose
breakfast cereals with a fibre content of more than 15%, and containing at least 20% bran, energy-reduced or with no added sugar	1,000 mg/kg
energy-reduced soups	110 mg/1
breath-freshening micro-sweets, with no added sugar	6,000 mg/kg
strongly flavoured freshening throat pastilles with no added sugar	2,000 mg/kg
energy-reduced beer	25 mg/1
drinks consisting of a mixture of a nonalcoholic drink and beer, cider, perry, spirits or wine	600 mg/1
spirit drinks containing less than 15% alcohol by volume	600 mg/kg
Feinkostsalat	350 mg/kg

In general, the labelling of foodstuffs is the responsibility of my colleague, the Minister for Enterprise and Employment. I understand that his Department is in the process of transposing into Irish law the provisions of Directive 96/21/EC which requires that the labelling of foodstuffs containing aspartame must include the statement “contains a source of phenylalanine”. This labelling requirement already applies, under S.I. No. 344 of 1995, to table-top sweeteners containing aspartame.

173. Ms F. Fitzgerald asked the Minister for Health the current waiting time for children requiring treatment by ophthalmologists in the hospital service in Dublin. [1504/97]

Minister for Health (Mr. Noonan,: Limerick East): In all cases, appointments for medical treatment are allocated on the basis of medical [1143] priority and emergencies are seen immediately. The average waiting time for children requiring routine treatment by ophthalmologists in the hospital service in Dublin varies from one to six months.

174. Mr. N. Treacy asked the Minister for Health the amount of moneys spent in each health board, including each individual hospital therein, on either free travel or subsidised transport for patients in each of these individual hospitals and/or their families; the number of patients/families who have received assistance under this scheme in 1980 and in each of the years from 1990 to 1996; and if he will make a statement on the matter. [1505/97]

Minister for Health (Mr. Noonan,: Limerick East): Statistics are not readily available in the form requested but I have sought this information from the eight health boards and I will forward it to the Deputy as soon as I receive it.

175. Mr. S. Brennan asked the Minister for Health whether a directive has issued to health boards to make up any shortfalls in subventions for elderly people on the maximum rate in private nursing homes who would otherwise require places in public nursing homes; whether additional funding has been, or is to be, made available to the health boards for this purpose; and if he will make a statement on the matter. [1506/97]

Minister for Health (Mr. Noonan,: Limerick East): The Health (Nursing Homes) Act, 1990 which came into effect on 1 September 1993 has two principal objectives. First, to ensure high standards of accommodation and care in all registered nursing homes registered by health boards under the Act, and second to provide a new system of nursing home subvention so that dependent persons most in need of nursing home care have access to such care.

A number of changes were made to the subvention scheme last year by amending regulations which came into effect on 31 July 1996. One of these changes permits health boards to contract beds in nursing homes above the number contracted on 1 September 1993 and to pay more than the maximum rates of subvention in such cases. This amendment is to facilitate health boards which do not have sufficient accommodation in their hospitals and homes to meet the needs of those requiring nursing care and which have traditionally relied on the nursing home sector to meet this need. Additional funding has been made available to health boards in 1996 and 1997 to meet the increased expenditure under the Act, including the cost of the amendment mentioned above.

[1144]

176. Mr. S. Brennan asked the Minister for Health if his attention has been drawn to the case of a person (details supplied) in Dublin 14 with terminal cancer, who was diagnosed following tests in early October 1996, but who was not advised of the results until 13 December 1996; if his attention has further been drawn to efforts over the past month to secure an urgent CAT scan examination for this person as a public patient, as requested by her consultant, in order to assess the cause of medical complications; his views on whether a delay of this magnitude is acceptable in the public health system; and if he will make a statement on the matter. [1508/97]

Minister for Health (Mr. Noonan,: Limerick East): I have had inquiries made with the hospital authorities in regard to the case outlined by the Deputy and I understand that they are awaiting a medical report from the consultant involved. I have asked the hospital to contact the Deputy directly regarding this case as soon as possible.

177. Miss Harney asked the Minister for Health the plans, if any, there are to reduce the long waiting times for patients attending the breast clinic at St. Vincent's Hospital, Dublin 4, in view of the fact that delays of more than four hours on occasions are adding to the stress of the patients; and if he will make a statement on the matter. [1509/97]

Minister for Health (Mr. Noonan,: Limerick East): I would refer the Deputy to my reply of 10 December 1996 to Questions Nos. 46 and 60 of 10 December 1996 which gave a detailed account of a series of measures put in place by the management at St. Vincent's Hospital aimed at reducing waiting times at the breast clinic.

The hospital management has assured me that, in preparing its service plan for 1997, it is actively looking at ways in which services at the breast clinic can be further improved. I understand that the Friday clinics are particularly busy but the efforts are continuing to be made to reduce waiting times at these clinics. For example, I am informed that all patients were seen within one hour at the clinic on Friday, 10 January.

178. Mr. Nolan asked the Minister for Health the capital expenditure on each acute hospital for 1996 with a breakdown between construction or reconstruction work and equipment; and the estimated expenditure for each hospital in 1997 in the same categories. [1546/97]

Minister for Health (Mr. Noonan,: Limerick East): I have set out on the following statement the capital funding for each hospital, which was made available by my Department in 1996 to finin [1145] ance expenditure on the major developments and the principal minor capital requirements included in the 1996 health capital programme. The health agencies' applications for capital grants do not contain an analysis by works cost, equipment, design team fees etc., so the expenditure breakdown requested by the Deputy is not available in the Department.

The estimated capital expenditure for each hospital in 1997 will depend on several factors that are difficult to quantify accurately in advance, and it is not possible at this stage to give precise figures for 1997. The expenditure figures for this year will be available early in 1998.

Capital grants, classified by hospital, paid by the Department of Health in 1996

Hospital
	£m
Beaumont	1.225
St. James's	2.174
Mater	1.132
Tallaght	31.089
Our Lady's, Crumlin	0.325
Rotunda	0.581
St. Vincent's, Elm Park	0.625
Coombe	0.323
Meath	0.231
Temple Street	0.331
Adelaide	0.225
National Maternity	0.527
St. Luke's-St. Anne's	4.421
Royal Victoria Eye & Ear	1.013
Clontarf Orthopaedic	1.018
Dublin Dental Hospital	2.577
St. Michael's, Dún Laoghaire	0.528
National Childrens Hospital	0.108
Hume Street	0.062
St. Mary's, Cappagh	0.211
St. Mary's, Baldoyle	0.138
James Connolly Memorial Hospital	0.521
Naas	0.060
Mullingar	2.482
Tullamore	1.170
Portlaoise	0.058
Longford	0.054
Limerick Regional	7.505
Limerick Regional Maternity	0.093
St. Nessan's, Croom	0.132
Nenagh	0.062
Ennis	0.139
St. John's, Limerick	0.406
Monaghan	0.089
Lourdes, Drogheda	0.404
Our Lady's, Navan	0.373
Louth County	0.611
Cavan	0.089
Sligo	0.130
Letterkenny	0.766
Ardkeen	2.347
Wexford	0.025
Kilkenny	0.394
Kilcreene	0.100
St. Joseph's, Clonmel	0.340
Cork University	0.908
St. Mary's, Gurranebraher	0.089
St. Finbarr's, Cork	0.039
Mercy	4.778
South Infirmary	0.316
Tralee	0.311
Mallow	0.163
Bantry	0.037
Erinville	0.173
Portiuncula	0.693
UCHG	0.758
Mayo	0.055

[1146]

179. Mr. N. Ahern asked the Minister for Health the number of doctors which were provided in the accident and emergency departments of the Mater and Beaumont Hospitals over the holiday break in view of the fact that Deputy Noel Ahern received numerous complaints of patients waiting up to seven hours to see a doctor for a few minutes and it appeared that doctors had to divide their time between ward duties and accident and emergency; and if he will make a statement on the matter. [1547/97]

Minister for Health (Mr. Noonan,: Limerick East): The hospital service has encountered problems in the provision of accident and emergency services, particularly during the winter, in the past number of years. The winter period brings its own set of problems, particularly for our elderly population. This is not a problem confined to Ireland but is a feature in other developed countries also. The causes of the problems which arise have been well documented.

The Mater and Beaumont Hospitals provide a 24-hour, 7-day-a-week, all-year-round accident and emergency service. A total of two accident and emergency consultants, six registrars and 19 house officers work in the two accident and emergency departments. These doctors are assigned exclusively to the accident and emergency service and do not work in other parts of either hospital. Account is taken of the needs of patients for efficient and effective accident and emergency cover when shifts are being drawn up. While activity winds down in some areas of a hospital over the Chrisrmas period, both the Mater and Beaumont Hospitals have assured me that this is not the case in the provision of the accident and emergency service.

The methods of operation in accident and emergency departments is to accord priority to those most in need. In the normal course, this means that those with less serious complaints have to wait, from time to time, while higher priority cases are being treated. Experience in the provision of accident and emergency services has shown that a significant number of those who attend could be treated as effectively and far quicker by their family doctor. This is why the current public education campaign on the appropriate use of accident and emergency departments was launched. The thrust behind the campaign is to keep accident and emergency departments clear for real emergencies.

[1147]

180. Mr. N. Ahern asked the Minister for Health the number of medical cards withdrawn in 1996 from elderly people over 65 years in each of the Eastern Health Board community care areas; if this number increased from previous years; and if he will make a statement regarding the situation with Area No. 6 where it appears medical cards have been withdrawn from a number of old age pensioners who had medical cards for years. [1548/97]

Minister for Health (Mr. Noonan,: Limerick East): The information requested by the Deputy is not readily available. I will arrange for my Department to write directly to him when the information has been compiled.

I have been assured by the Eastern Health Board that there has been no change in the board's policy regarding the medical card entitlement of persons aged over 65 years and that the entitlement of such persons continues to be considered in a sympathetic manner in all community care areas.

181. Mr. N. Ahern asked the Minister for Health the take-up of the scheme announced in the 1996 budget allowing long-term unemployed to retain their medical cards when they took up employment; the numbers involved; if the Eastern Health Board or other health boards were allocated an additional budget for this purpose or were they to operate the new scheme from within existing resources. [1549/97]

Minister for Health (Mr. Noonan,: Limerick East): The information the Deputy has requested regarding the numbers of persons who have benefited from the 1996 budget provision is not readily available. Some persons who qualified for retention of their medical card under the 1996 budget scheme could have been entitled to retain their card under previous arrangments.

With regard to the need for additional funding, it should be borne in mind that the overall number of persons eligible for medical cards at any time is influenced by a wide range of factors. The most significant of these would include the overall performance of the economic and demographic trends. In the period from December 1995 to September 1996, the percentage of the population eligible for medical cards declined in each of the eight health board areas while the total number of eligible persons fell by 16,805. In these circumstances it has not been considered necessary to provide additional resources to health boards to implement the scheme.

182. Mr. M. Kitt asked the Minister for Health the funding to be provided for the Galway Hospice in 1997; if this funding will be ongoing; if 12 beds will be commissioned for cancer care; and if any further information is required by his Department. [1569/97]

Minister for Health (Mr. Noonan,: Limerick East): My Department's letter of determination to the Western Health Board for 1997 included an additional revenue allocation of £500,000 in respect of the Galway Hospice Foundation. This figure is over and above the sum of £100,000 already allocated in 1996.

[1148] Payment of the extra funding is subject to my Department's approving whatever service agreement may be reached between the Western Health Board and the Hospice. I look forward to receiving the board's proposals in due course.

185. Mr. Leonard asked the Minister for Health the number of persons in each health board area awaiting cataract operations; and the average waiting period for such operations. [1603/97]

Minister for Health (Mr. Noonan,: Limerick East): The number of persons in each health board area awaiting cataract operations is set out in the following table.

	3-12 Months	Over 12 Months
Eastern Health Board	315	190
Mid-Western Health Board	248	173
Midland Health Board	0	0
North-Eastern Health Board	0	0
North-Western Health Board	145	0
South-Eastern Health Board	66	0
Southern Health Board	195	16
Western Health Board	154	45
Totals	1,123	424

My Department does not routinely collect information regarding average waiting times as these times vary from hospital to hospital depending on the workload of individual consultants. However, in all cases, appointments for medical treatment are allocated on the basis of medical priority and emergencies are treated immediately.

186. Éamon Ó Cuív asked the Minister for Health whether routine dental treatment is available to the children of medical card holders who are in second-level education and are between 14 and 16 years of age; and if he will make a statement on the matter. [1638/97]

187. Éamon Ó Cuív asked the Minister for Health the entitlements to dental health of second-level students between the ages of 14 and 16 whose parents do not have a medical card; and if he will make a statement on the matter. [1639/97]

Minister for Health (Mr. Noonan,: Limerick East): I propose to take Questions Nos. 186 and 187 together.

Under the Dental Health Action Plan dental treatment will be extended to all children up to 16 years of age who have attended national school. In the initial phase of the Plan, I have extended dental treatment to children up to 14 years of age. I will implement a further extension [1149] up to the sixteenth birthday according as additional resources are available to me.

Routine dental treatment is not currently available to children of medical card holders who are between 14 and 16 years of age. Routine dental treatment will be extended to this group as part of the general extension of dental treatment services to the 14-16 years age group.

188. Éamon Ó Cuív asked the Minister for Health the entitlements to dental treatment of medical card holders and their families; and if he will make a statement on the matter. [1640/97]

Minister for Health (Mr. Noonan,: Limerick East): Under the health Acts, medical card holders and their dependants are entitled to dental treatment services provided by the health boards.

The Dental Health Action Plan, which is being implemented on a phased basis, provides for the extension of a comprehensive range of treatments under the dental treatment services scheme to all adults with medical card entitlement. Under Phases I and II of the scheme, which are already in place, treatment is available as follows: emergency dental treatment for the relief of pain or ugent denture repairs is available to all adults; routine dental treatment is available to adults in the age groups 16-34 years of age inclusive and 65 years and over; full upper and or full lower dentures are available to all adults with no natural teeth.

I will extend routine treatment services to other age groups under the scheme as additional resources are available to me.

189. Mr. Killeen asked the Minister for Health the current position regarding the provision of orthodontic services in County Clare; and the plans, if any, there are to extend this service to each dental clinic in the county. [1641/97]

Minister for Health (Mr. Noonan,: Limerick East): The provision of orthodontic services in County Clare is the responsibility of the Mid-Western Health Board.

I understand there is an orthodontic clinic held in the County Clinic, Bindon St., Ennis, County Clare on Tuesdays, Thursdays and Fridays of each week. One orthodontist attends these clinics, which are carried out under the direction of the consultant orthodontist for the Mid-Western Health Board who visits Ennis as is necessary.

The board plans ultimately to have a three chair orthodontic unit in Ennis. It is not envisaged that an orthodontic clinic would be provided at each dental clinic in the Clare area. An orthodontic clinic was provided in Kilrush Dental Clinic for some time on a pilot basis. The board hopes to re-establish this clinic in the near future again on a pilot basis.

[1150]

190. Mrs. O'Rourke asked the Minister for Health if he will request the relevant health board to review the case of a person (details supplied) in County Westmeath who urgently requires an operation. [1642/97]

Minister for Health (Mr. Noonan,: Limerick East): As the provision of medical treatment to eligible persons in County Westmeath is the statutory responsibility of the Midland Health Board in the first instance, I have asked the chief executive officer of the Midland Health Board to investigate the position in relation to this case and to reply to the Deputy directly as a matter of urgency.

191. Mrs. O'Rourke asked the Minister for Health if he will request the relevant health board to review the case of a person (details supplied) in County Westmeath who seeks an application for funding. [1643/97]

Minister for State at the Department of Health (Mr. Currie): I understand that the Midland Health Board is currently reviewing the application for funding in this case.

192. Mr. Hilliard asked the Minister for Health the way in which the sum of £96.645 million was estimated in subhead I 1 of Vote 41 in the 1997 Estimates for the Public Services. [1644/97]

Minister for Health (Mr. Noonan,: Limerick East): The provision of £96.645 million in Subhead I.1 of the Health Vote for 1997 will be used to fund expenditure on approved capital projects during the year. The capital programme for 1997 has not yet been finalised, so I am not in a position at this stage to give a definitive list of the projects that will be funded by this provision.

193. Mr. Callely asked the Minister for Health the consideration, if any, he has given to the submission he received with regard to the Dublin accident and emergency hospitals; and if he will make a statement on the matter. [1645/97]

Minister for Health (Mr. Noonan,: Limerick East): The hospital service has encountered problems in the provision of accident and emergency services, particularly during the winter, over the past number of years. The shortage of sub-acute beds in Dublin has caused problems in that acute hospitals have not been able to discharge patients in sufficient numbers and quickly enough to cater for new patients seeking the services of the hospital.

In order to provide relief for the acute hospitals and enable them discharge patients no longer in need of acute hospital care but who require sub-acute [1151] care, my Department has agreed a plan of action with the Eastern Health Board for the winter of 1996-97. This involves tackling a number of areas including services for the elderly, services for the chronically disabled and the management of services provided by the acute hospitals themselves.

The plan will cost £2.75 million annually and I have now provided the funding for this major initiative.

Included in the plan are the following measures: an additional 30 beds in nursing homes, a new 25 bed community unit in Sir Patrick Dun's Hospital, 17 extra beds in Leopardstown Hospital, 25 extra beds for the elderly in Peamount Hospital, 25 beds for the young chronically disabled in Peamount Hospital. Six new community ward teams for the elderly, additional beds in acute hospitals, and a public education campaign on the appropriate use of accident and emergency departments.

I am glad to inform the Deputy that arrangements are well under way to put these initiatives in place and some of the facilities are already in operation.

This is the largest package of measures by any Minister for Health to deal with the relief of the winter problems of the acute hospitals and I am confident that it will provide much needed relief for the hospital service in Dublin.

194. Kathleen Lynch asked the Minister for Health the proposals, if any, he has to establish a comprehensive system of medical and psychological healthcare for asylum seekers and refugees which takes into account their distinct needs, together with the provision of appropriate services for victims of torture, imprisonment and warfare; and if he will make a statement on the matter. [1773/97]

Minister for Health (Mr. Noonan,: Limerick East): The Refugee Agency, which is under the aegis of the Minister for Foreign Affairs, is initially responsible for the co-ordination of services generally for “programme refugees”, or those permitted to remain in Ireland as a result of a Government decision. My Department is represented on the board of the agency. A range of medical services is being provided, through the relevant health boards, to both “programme refugees” and asylum seekers residing in this country. All “programme refugees” and asylum seekers are eligible for the range of health services available.

The Eastern Health Board has also been providing a counselling service to the Bosnian “programme refugees” since 1992. As a result of this activity, and in discussion with organisations concerned with the welfare of asylum seekers, it was acknowledged that there was a need to develop a more specialised service for persons living in this [1152] country who may be suffering from the effects of trauma, warfare or torture. For this reason, it is proposed to establish in the Southern Health Board area, during 1997, a new service for the victims of torture who are in this country as refugees. The service will cater for the needs of this client group on a national basis. Funding to establish the service has been allocated in the current year, and the Southern Health Board is involved in ongoing discussions with my Department to agree the Protocol and detailed operational arrangements to apply to this new service.

195. Mr. E. Byrne asked the Minister for Health the current waiting lists, and average waiting periods for orthodontic treatment, occupational therapy, and physiotherapy on a county by county basis in the most recent years for which figures are available. [1774/97]

Minister for Health (Mr. Noonan,: Limerick East): The provision of orthodontic, occupational therapy, and physiotherapy services is a matter for the health boards. I have asked the boards for the information sought by the Deputy and will forward it to him as soon as it is made available to me.

196. Mr. E. Byrne asked the Minister for Health the number of public health nurses per thousand population on a county by county basis in the most recent year for which figures are available. [1775/97]

Minister for Health (Mr. Noonan,: Limerick East): The Department of Health annual personnel census records the number of public health nurses (PHNs) employed by each health board. Since the work of PHNs often crosses county borders, it is not relevant to present these statistics on a county by county basis. Wholetime equivalent figures for 1995 for each health board per 1,000 population are set out in the following table.

Public Health Nurses: Wholetime Equivalent Numbers per 1,000 Population by Health Board, 1995

Health Board	Wholetime Equivalent Numbers per 1,000 Population
Eastern	0.34
Midland	0.51
Mid-Western	0.39
North-Eastern	0.43
North-Western	0.50
South-Eastern	0.40
Southern	0.32
Western	0.49
Total	0.39

Source: Department of Health Personnel Census. CSO, Census of Population, 1996 — preliminary figures.

[1153]

197. Mr. E. Byrne asked the Minister for Health the number of hospital beds per thousand population in each county for the most recent year for which figures are available. [1776/97]

Minister for Health (Mr. Noonan,: Limerick East): The information requested by the Deputy is set out in the following table. The figures provided refer to the number of in-patient beds designated as such in publicly funded acute hospitals. Day beds and beds in district, psychiatric, longstay and private hospitals are excluded from the calculations. It should be noted that the figures are high for counties where regional hospitals and/or national specialties are located. Conversely, for those counties without consultantstaffed acute hospitals the figures are zero.

Number of In-Patient Beds per 1,000 Population by County, 1996*

County	In-Patient Beds per 1,000 Population
Carlow	0.0
Cavan	3.3
Clare	0.9
Cork	3.4
Donegal	2.4
Dublin	4.7
Galway	4.8
Kerry	2.8
Kildare	0.7
Kilkenny	3.5
Laois	2.5
Leitrim	2.4
Limerick	4.0
Longford	0.0
Louth	5.4
Mayo	2.4
Meath	1.7
Monaghan	2.9
Offaly	2.8
Roscommon	2.3
Sligo	6.0
Tipperary	2.3
Waterford	4.1
Westmeath	2.9
Wexford	1.8
Wicklow	0.0
Total	3.4

*Based on CSO Census of Population, 1996 — preliminary figures.

199. Mr. Davern asked the Minister for Equality and Law Reform the total cost to his Department of the Presidency of the EU; and if he will give details of such costs. [1242/97]

Minister for Equality and Law Reform (Mr. Taylor): As indicated in my reply to Question No. 86 on 19 December 1996, I am unable to give the total cost to my Department of the Irish Presidency, as the outstanding accounts have not yet been finalised with the EU Commission.

[1154]

200. Mr. Dempsey asked the Minister for Equality and Law Reform the total amount of funds he will provide for the Council for the Status of People with Disabilities in 1997. [1271/97]

Minister for Equality and Law Reform (Mr. Taylor): I have made provision in my Department's Estimate for 1997 for payment of a grant of £100,000 in 1997 to fund the work of the Council for the Status of People with Disabilities.

201. Ms Keogh asked the Minister for Equality and Law Reform the State and semi-State boards under the aegis of his Department; the appointments, if any, which have been made to these boards in the past year; the number of women who have been appointed; the percentage of women currently on each of these boards; and the end date of the current term of all of the boards. [1346/97]

Minister for Equality and Law Reform (Mr. Taylor): Two State boards, the Legal Aid Board and the Employment Equality Agency, operate under the aegis of my Department. In the course of the past year I appointed a 13 member Legal Aid Board, which is comprised of the following 7 women and 6 men:

Ms Clare Teresa Connellan — Chairperson

Mr. Patrick C. Kennedy

Mr. Frank Murphy

Mr. Paddy Howard

Mr. Dan McCarthy

I made no appointments to the board of the Employment Equality Agency during that period.

Women constitute 54 per cent of the membership of the board of the Legal Aid Board and 82 per cent of the membership of the board of the Employment Equality Agency. The end dates of the current terms of office of the board of the Legal Aid Board and of the board of the Employment Equality Agency are 10 October, 2001 and 9 November 1997, respectively.

202. Mr. M. Kitt asked the Minister for Equality and Law Reform the places where family mediation services are available; if it is proposed to extend this service in view of the introduction of divorce; and if he will make a statement on the matter. [1424/97]

[1155]Minister for Equality and Law Reform (Mr. Taylor): Family mediation is available from two centres operated by the Family Mediation Services of my Department. One is located at the Irish Life Centre, Lower Abbey Street, Dublin 1, the other is located at Mill House, Henry Street, Limerick.

As part of a programme for development and expansion of the family mediation service, two new posts of area mediation co-ordinator have been created, one for the existing family mediation centre at the Irish Life Centre, Lower Abbey Street, Dublin and one for the new centre at Mill House, Henry Street, Limerick. Competitions to fill these posts have been held under the auspices of the Civil Service Commission and an appointment has been made to the Limerick post. I understand that an appointment to the second post in Dublin is imminent. The persons appointed will be responsible for delivery of a quality mediation service, with the assistance of a team of mediators, each for his or her own geographical areas of responsibility.

The appointment of area mediation co-ordinators will facilitate the establishment of a scheme for the use of mediators in private practice who have the necessary training and experience and otherwise meet the standards set by the family mediation service, to provide family mediation at locations distant from a family mediation centre or to relieve pressure on the centres at Dublin or Limerick. The allocation of cases to private mediators would be done through the family mediation service.

203. Kathleen Lynch asked the Minister for Equality and Law Reform the plans, if any, he has to extend the provision of legal aid to asylum seekers following implementation of the Refugee Act; and if he will make a statement on the matter. [1794/97]

Minister for Equality and Law Reform (Mr. Taylor): The implementation of the Refugee Act, 1996 and the extension of legal aid to asylum seekers are matters for my colleague, the Minister for Justice. I understand that during the passage of the Bill through the Oireachtas, my Cabinet colleague, the Minister for Justice, and Deputy Joan Burton, Minister of State at the Department of Justice with responsibility for asylum matters, gave commitments that a suitable State scheme of legal aid for asylum seekers would be set up. I understand that the Department of Justice, which is in the process of undertaking the implementation of the Refugee Act, is engaged in developing such a scheme as part of that process. In the circumstances, I do not propose to extend the scope of the Civil Legal Aid Act, 1995 to those seeking asylum in this State.

[1156]

204. Mr. Gregory asked the Minister for Arts, Culture and the Gaeltacht the new drainage works, diversions and others carried out by the Office of Public Works in the Phoenix Park, adjacent to Chapelizod, Dublin 20; if any culvert is used to carry water from the park in the vicinity of Martin's Row, or under Martin's Row, Chapelizod; and if any of these works have contributed to flooding at several locations in Chapelizod in recent months. [1426/97]

Minister for Arts, Culture and the Gaeltacht (Mr. M. Higgins): Over the past number of months works have been carried out to a number of culverts which outfall from the Phoenix Park through Martin's Row and Chapelizod to the Liffey in an endeavour to reduce the potential for flooding both inside and outside the park wall. While I understand that there has been no flooding in the location since these works have been carried out, investigative works are ongoing to see if further improvements could be achieved.

Any such works will continue to be carried out in consultation with the representatives of local residents groups.

205. Mr. Gregory asked the Minister for Arts, Culture and the Gaeltacht if mobile phone numbers of wildlife officers are available to local Garda stations, animal welfare groups and the public in order that they can be contacted when required in emergencies; and, if not, if they will be made available through local Garda stations and public libraries. [25202/96]

Minister for Arts, Culture and the Gaeltacht (Mr. M. Higgins): In the interests of their personal safety and protection mobile phones were supplied to rangers and their superiors for use particularly in potentially dangerous situations such as night-time anti-poaching patrols and patrols in remote areas. I would be concerned should these numbers get into the public domain as a call at a wrong moment could disrupt an investigation or even place a member of my staff in danger. The official telephone numbers for staff of the National Parks and Wildlife Service of my Department are published in the State Services section of the current telephone directories and in other relevant publications. In addition, a list of the staff concerned, together with their official addresses and telephone numbers, has been made available, on request, to certain nongovernmental organisations and others.

I am satisfied that close co-operation and communications exist between wildlife officers and the Garda Síochána.

[1157]

206. Mr. E. O'Keeffe asked the Minister for Arts, Culture and the Gaeltacht if his Department will financially compensate a person (details supplied) in County Cork who is unable to sell his land to Coillte Teo because it has been designated as a national heritage area. [25248/96]

Minister for Arts, Culture and the Gaeltacht (Mr. M. Higgins): Natural heritage areas (NHAs) are as yet only at the proposal stage: no designation will be made until the necessary amendment to the Wildlife Act, 1976, is passed by the Oireachtas. This amendment will be introduced in the Oireachtas as soon as possible.

Even after formal designation, NHAs will not involve any compulsory restrictions on the use to which land can be put. Consequently, compensation will not arise as a result of NHA designations.

207. Mr. Dempsey asked the Minister for Arts, Culture and the Gaeltacht if he intends to go ahead with the erection of a statue of St. Patrick on the Hill of Tara, County Meath, in view of the fact that most local residents disagree with the representation of St. Patrick as depicted by the favoured artist; and if he will reconsider the matter in consultation with local residents. [25255/96]

Minister for Arts, Culture and the Gaeltacht (Mr. M. Higgins): A competition for the commission was held among reputable Irish artists. The five entries received were displayed at Tara and the views of the public obtained.

A recommendation has been made by the selection committee, which comprised representatives of the local community, the Arts Council, the Association of Artists in Ireland, Office of Public Works and my Department. Based on this recommendation, proposals to progress the matter will shortly be conveyed to the local community.

208. Mr. Ellis asked the Minister for Arts, Culture and the Gaeltacht if his Department will pay compensation due to Leitrim County Council in respect of roads, numbers 379, 379A and 379B, in County Leitrim, which were damaged during works being carried out by the Office of Public Works in the area. [25285/96]

Minister for Arts, Culture and the Gaeltacht (Mr. M. Higgins): The waterways service of my Department does not accept that all the alleged damage to the local roads was caused solely by it while works were being carried out on the Lough Allen Canal. Agreement was reached with Leitrim County Council some months ago to repair a specific section of roadway. When the council confirms that the works have been carried out, payment will be made.

[1158]

209. Mr. Davern asked the Minister for Arts, Culture and the Gaeltacht the current position regarding the legal formalities of the transfer of Kilcash Castle to the National Monuments and Historic Properties Service; if finance is available to carry out conservation works when the legal transfer has been completed; if so, when conservation works will commence; and if he will make a statement on the matter. [1000/97]

Minister for Arts, Culture and the Gaeltacht (Mr. M. Higgins): Negotiations for the acquisition of Kilcash Castle are at an advanced stage and it is expected that they will be brought to an early conclusion. Thereafter it is intended to conserve the castle and to present it as an historic ruin.

210. D'fhiafraigh Éamon Ó Cuív den Aire Ealaíon, Cultúir agus Gaeltachta cén uair a dhéanfar cinneadh ar iarratas ó Choiste na Páirce, Ros a' Mhíl, Baile na hAbhann, Contae na Gaillimhe, ar dheontas le forbairt a dhéanamh ar pháirc péile i Ros a Mhíl; agus an ndéanfaidh sé ráiteas ina thaobh. [1183/97]

Minister for Arts, Culture and the Gaeltacht (Mr. M. Higgins): Tá iarratas ó Choiste na Páirce Ros a' Mhíl ar dheontas mar chabhair chun Páirc Imeartha Ros a' Mhíl a fhorbairt á mheas ag mo Roinnse. Le déanaí iarradh ar an gcoiste sonraí breise a chur ar fáil i dtaca leis an iarratas agus breithneofar an cás tuilleadh nuair a gheofar na sonraí sin uathu.

211. Ms Shortall asked the Minister for Arts, Culture and the Gaeltacht if he will supply the promised information further to his reply to Parliamentary Question No. 84 of 31 October 1996, regarding the number of deaths by drowning which have occurred in the Royal Canal, Dublin, between Cross Guns Bridge and Binns Bridge for each of the past three years; and if he will make a statement on the matter. [1230/97]

Minister for Arts, Culture and the Gaeltacht (Mr. M. Higgins): I deeply regret any death by drowning in our inland waterways and I again wish to state that the question of safety along our waterways is kept under constant review by the waterways service of my Department. The Garda authorities have informed the waterways service that the number of deaths by drowning which have occurred between Binns Bridge and Cross Guns Bridge during each of the last three years was as follows: 1994-2, 1995-1 and 1996-11.

I am deeply perturbed by the very high number of fatalities which occurred in 1996 and accordingly I have instructed the waterways service to [1159] meet with Dublin Corporation and the Garda Síochána in an attempt to identify the particular factors which have contributed to such an increase in fatalities on this stretch of canal.

I should also mention that following recommendations by the Task Force on the Canal Corridors, the waterways service has begun the process of installing chains in lock chambers in the city in an effort to enhance safety on the waterways.

212. Mr. Davern asked the Minister for Arts, Culture and the Gaeltacht the total cost to his Department of the Presidency of the EU; and if he will give details of such costs. [1237/97]

Minister for Arts, Culture and the Gaeltacht (Mr. M. Higgins): The gross cost incurred to date by my Department in respect of the Irish Presidency is of the order of £175,000. The total gross cost will not be established until demands for payment have been presented in respect of other items of expenditure. The net cost to my Department, however, will not be established until refunds have been received in full from the EU and other sources.

213. Mr. Dempsey asked the Minister for Arts, Culture and the Gaeltacht if funding has been provided by him to any animal welfare group during the course of the current Government; if so, the amount granted; when it was paid; and to whom it was paid. [1274/97]

Minister for Arts, Culture and the Gaeltacht (Mr. M. Higgins): No funding has been provided by my Department to any animal welfare groups during the period referred to by the Deputy.

[1160]

214. Mr. Hilliard asked the Minister for Arts, Culture and the Gaeltacht if his attention has been drawn to the fact that Meath County Council plans to provide a halting site in the heritage town of Trim, close to St. John's Castle and the fire station; if so, if his Department will immediately communicate with Meath County Council and the Department of the Environment regarding this site in order that he will be fully informed regarding the situation before final approval is given. [1298/97]

Minister for Arts, Culture and the Gaeltacht (Mr. M. Higgins): I have now received details of the proposed halting site at Trim from Meath County Council. The site is located on the outskirts of the town off the ring road and away from St. John's Castle. I am satisfied that there will be no adverse impact on either the castle or the architectural heritage of Trim and I do not propose to take any further action in the matter.

215. Ms Keogh asked the Minister for Arts, Culture and the Gaeltacht the State and semi-State boards under the aegis of his Department; the appointments, if any, which have been made to these boards in the past year; the number of women who have been appointed; the percentage of women currently on each of these boards; and the end date of the current term of all of the boards. [1347/97]

Minister for Arts, Culture and the Gaeltacht (Mr. M. Higgins): The following table sets out the details:— Column (1): the State boards, agencies, etc., under the aegis of my Department; Column (2): the number of ministerial or Government appointments made during the year ended 22 January 1997; Column (3): the number of women appointed during that year; Column (4): the percentage of women currently serving in terms of the overall membership in each case; and Column (5): the end date of the current term of office of ministerial or Government appointees.

(1)	(2)	(3)	(4)	[a] (5)
Bord Scannán na hÉireann	1	—	57%	(6) 4.4.1997(1) 16.1.2001
National Theatre Society Ltd [b]	—	—	44%	(2) 25.5.1999
An Chomhairle Ealaíon	—	—	47%	[c]
Bord na Gaeilge	5	2	45%	(6) 31.10.1998(5) 31.10.2000
Údarás na Gaeltachta [b]	6	3	31%	(6) 30.6.2001
Bord na Leabhar Gaeilge	7	3	43%	31.12.1998
Irish Museum of Modern Art	—	—	40%	20.2.2000
National Concert Hall	12	5	46%	(3) 28.1.1997(12) 22.4.2001
[1161]Chester Beatty Library [b]	—	—	22%	[d]
National Archives Advisory Council	—	—	17%	29.1.1997
Irish Manuscripts Commission	—	—	31%	(7) 9.11.1997
				(4) 4.12.1999
				(8) no limit specified
National Museum of Ireland and Botanic Gardens (Board of Visitors) [b]	—	—	40%	(4) 9.2.1997
Caretaker Board of the National Museum	10	4	40%	[e]
National Library of Ireland (Council of Trustees) [b]	—	—	25%	(2) 9.11.1997(2) 6.12.1998
National Gallery of Ireland (Board of Governors and Guardians) [b]	1	1	29%	(2) 2.2.1997
				(1) 12.4.1997
				(1) 19.10.1997
				(2) 2.6.1998
				(1) 27.2.1999
				(1) 11.4.1999
				(1) 13.12.1999
				(1) 18.7.2001
Heritage Council	—	—	47%	9.7.2000
Radio Telefís Éireann	1	1	45%	31.5.2000
Independent Radio and Television Commission	—	—	40%	16.10.1998
Broadcasting Complaints Commission	—	—	43%	2.6.1997

Notes:

[a]The details in the final column refer to Government or ministerial appointees only. The numbers in brackets in this column refer to the number of such appointees whose term of office ends on the corresponding date shown. Where no number in brackets is included, the date applies to all serving Government or ministerial appointees.

[b]In these cases ministerial or Government appointments account for only a percentage of the total membership in each case.

[c]The term will end on the appointment of a new council on a date to be decided during the year ending 30.8.1998.

[d]Trustees of the Chester Beatty Library are life members with the exception of the director of the National Library who is an ex-officio member.

[e]Membership of the caretaker board of the National Museum will be reviewed in the light of progress on the cultural Institutions Bill, 1996.

216. Mr. Creed asked the Minister for Arts, Culture and the Gaeltacht the reason for the delay by Údarás na Gaeltachta in having an existing industry (details supplied) accommodated in a larger premises in the Muskerry Gaeltacht. [1517/97]

Minister of State at the Department of Arts, Culture and the Gaeltacht (Mr. Carey): Is gnó inmheánach é seo a bhaineann le hÚdarás na Gaeltachta féin.

Tuigim uathu gurbh í an bhunchúis le moill ar spás monarchan eile a chur ar fáil don chomhlacht i gceist ná gur thóg sé i bhfad níos faide ná mar a bhíothas ag súil leis teastas slándála tine a fháil don fhoirgneamh atá á athchóiriú dó. Tá an tÚdarás ag súil leis anois go mbeidh an foirgnimh ar fáil don chomhlacht laistigh de dhá mhí.

[1162]

217. Mr. N. Treacy asked the Minister for Arts, Culture and the Gaeltacht the reason a project (details supplied) in County Galway has not been sanctioned; if he will sanction this project; if so, the date on which this will be done; and if he will make a statement on the matter. [1518/97]

Minister for Arts, Culture and the Gaeltacht (Mr. M. Higgins): It has not been possible to give sanction for an element of the project referred to by the Deputy, as it would interfere with archaeological features on the site of the proposed works. Should alternative proposals be submitted with the necessary detailed information I will be happy to ensure that those will be dealt with expeditiously by the National Monuments and Historic Properties Service of my Department.

[1163]

218. Mr. Lawlor asked the Minister for Arts, Culture and the Gaeltacht his response to allegations that more than 250 hectares of alpine vegetation and limestone surface of the Burren, County Clare, have been destroyed over the past two years. [1580/97]

Minister for Arts, Culture and the Gaeltacht (Mr. M. Higgins): I understand that a report commissioned by the Heritage Council in 1996 indicated that land reclamation in the Burren over the period 1994-95 had affected some 250 hectares. This area was spread over 59 individual sites.

I will shortly make regulations to transpose the EU Habitats Directive into Irish law. These will, for the first time, provide the powers necessary to prevent activities or developments which could significantly damage ecologically sensitive areas such as the Burren. The national parks and wildlife service of my Department is committed to preventing any further significant damage to such areas and, towards this end, will continue to monitor the situation very carefully.

219. Mr. Lawlor asked the Minister for Arts, Culture and the Gaeltacht the reason no action was taken by him or the Heritage Council to forestall the demolition of the country's first peat-fired ESB station at Portarlington pending a full review of the possibilities for preservation of the building in whole or in part. [1581/97]

Minister for Arts, Culture and the Gaeltacht (Mr. M. Higgins): I understand that as soon as the question of demolishing the peat-fired ESB station at Portarlington was brought to its attention, the Heritage Council raised the matter with the ESB, seeking further information in accordance with section 10 of the Heritage Act, 1995. The Heritage Council is awaiting a response from the ESB to its request for further information.

220. Mr. Lawlor asked the Minister for Arts, Culture and the Gaeltacht if he will publish his legislative proposals on the future of broadcasting, without delay, in order that the continual media speculation on the contents can be replaced by the considered deliberations of Dáil Éireann. [1582/97]

Minister for Arts, Culture and the Gaeltacht (Mr. M. Higgins): As I have indicated previously, it is my intention to publish my proposals for new broadcasting legislation after they have been agreed by Government.

[1164]

221. Mr. Lawlor asked the Minister for Arts, Culture and the Gaeltacht his involvement in facilitating the planting of trees in a designated special protection area of wetlands at Pettigo in County Donegal. [1583/97]

Minister for Arts, Culture and the Gaeltacht (Mr. M. Higgins): A portion of Pettigo Plateau was designated a special protection area on 15 October 1996. The afforestation referred to by the Deputy occurred prior to this designation and also before the area was proposed for designation as a natural heritage area. I understand that the application for grant aid was proccessed and approved by the forest service of the Department of Agriculture, Food and Forestry.

222. Miss Harney asked the Minister for Arts, Culture and the Gaeltacht the advice, if any, he received from the Heritage Council in relation to the proposed demolition of the Garda station in Doneraile, County Cork; and the steps, if any, he has taken to ensure that the heritage value of the building is protected. [1616/97]

Minister for Arts, Culture and the Gaeltacht (Mr. M. Higgins): I have been advised by the Heritage Council that, in its opinion, the correct decision has been made in this case and the consideration given by Cork County Council and An Bord Pleanála to the proposed redevelopment through the planning process has been very thorough and comprehensive. The Heritage Council has stated that is has no objections to the seven conditions attached to the grant of permission by Cork County Council or to the five conditions imposed by An Bord Pleanála.

The Heritage Council, together with the heritage service of my Department, also recommended that an additional five conditions, which would ensure the salvage and reuse of materials from the old Garda station and the incorporation of design features in keeping with the historical streetscape, be incorporated into the new building design. I am advised that these five additional conditions have been incorporated into the new building design.

223. Mr. Hilliard asked the Minister for Arts, Culture and the Gaeltacht the basis for the appropriations-in-aid figure of £71.182 million under subhead W of Vote 42 in the 1997 Estimates for the Public Services. [1618/97]

Minister for Arts, Culture and the Gaeltacht (Mr. M. Higgins): Following is a breakdown of the appropriations-in-aid of £71.182 million in my Department's Estimates for 1997.

	£'000
Receipts from Broadcasting Licence Fees	67,209
Recoupment of Salaries	40
[1165]Receipts — National Museum	433
Receipts — National Library	145
Receipts — National Archives	45
Rents	41
Miscellaneous Services at Visitor Centres	157
Sales of Property	30
Charges at Parks	555
Charges at Historic Properties	1,715
Inland Waterways	188
Miscellaneous	624
	71,182

224. Mr. Hilliard asked the Minister for Arts, Culture and the Gaeltacht the reason for the expenditure of £8.729 million under subhead C2 of Vote 42 in the 1997 Estimates for the Public Services. [1619/97]

Minister for Arts, Culture and the Gaeltacht (Mr. M. Higgins): The amount included for subhead C2 in the abridged version of the Book of Estimates is £8.729 million. In general, subhead C2 provides for the allocation of grants to a number of cultural institutions and projects other than the grants towards the running costs of the national cultural institutions which are paid from subhead C1. Subhead C2 also provides for part of the funds made available under the cultural development incentives scheme and other regional projects to be assisted from Structural Funds under the EU Operational Programme for Tourism. Moneys required for the preparation of major exhibitions in cultural institutions under the remit of this Department, including fit-out of the National Museum exhibitions at Collins Barracks and the Chester Beatty Library, are also comprehended by this subhead.

225. Mr. Broughan asked the Minister for Arts, Culture and the Gaeltacht the size of grant and the timing, conditions and likelihood of future support for a recent allocation to a group (details supplied) in County Dublin. [1620/97]

Minister for Arts, Culture and the Gaeltacht (Mr. M. Higgins): In general Exchequer funding available to my Department for institutions of the type referred to by the Deputy is intended for allocation to those institutions for which it has statutory responsibility and funds on an ongoing basis. In addition, the cultural development incentives scheme, administered by my Department and co-financed by Structural Funds available under the Operational Programme for Tourism, provides for once-off capital grants for a wide range of groups and bodies meeting the various criteria of the scheme, including the provision of matching domestic funds. I understand the group referred to by the Deputy was not in a position to apply for funding under this scheme.

I am pleased that I was in a position to make a sum of £15,000 available in December 1996 on [1166] the condition of it being a once-off grant towards capital costs in respect of works, undertaken by this voluntary group, for the further development of premises to house and preserve a collection of historical vehicles in its care. This payment was made on the basis of receipts and invoices produced by the group in respect of these capital works. The group was also required to produce in due course a certified statement from the group's accountant as to the final disbursement of the funds in question. In the light of the financial resources available to me, I do not envisage being in a position to provide financial support to this venture in 1997 or on an ongoing basis.

226. Mr. Broughan asked the Minister for Arts, Culture and the Gaeltacht the current position regarding the commitments from him and the Eastern Health Board, including the Minister's facilitatory role, to enable the Northside Arts and Cultural Centre to proceed as soon as possible at Woodville House, Coolock, Dublin 5. [1621/97]

Minister for Arts, Culture and the Gaeltacht (Mr. M. Higgins): The Deputy will be aware that I have made an offer of funding to the extent of £300,000 to the Northside Arts and Cultural Centre, payment of which is subject to compliance by the promoters with standard conditions relating to the operation of the cultural development incentives scheme (CDIS). A number of issues relating to the project still remain outstanding. Officials from my Department are meeting with representatives of all CDIS—assisted projects and I hope that the outstanding issues relating to the Northside Arts and Cultural Centre will be addressed in this context.

227. Mr. E. Byrne asked the Minister for Arts, Culture and the Gaeltacht the amount of funding allocated to arts projects in the most recent year for which figures are available on a county by county basis. [1772/97]

Minister for Arts, Culture and the Gaeltacht (Mr. M. Higgins): Under the cultural development incentives scheme (CDIS) which I am administering under the Operational Programme for Tourism 1994-99, I approved, in principle, grant assistance totalling £11.094 million in 1996 towards the cost of developing twenty one capital arts projects in 13 counties. Details of the 13 counties and the amounts allocated to each are as follows:

Clare	£90,000	(1 project)
Cork	£975,000	(4 projects)
Donegal	£1,500,000	(1 project)
Dublin	£4,000,000	(5 projects)
Galway	£340,000	(2 projects)
Laois	£1,300,000	(1 project)
Limerick	£687,500	(1 project)
Mayo	£140,000	(1 project)
[1167]Offaly	£250,000	(1 project)
Roscommon	£250,000	(1 project)
Waterford	£562,000	(1 project)
Westmeath	£750,000	(1 project)
Wexford	£250,000	(1 project)
	£11,094,500

In addition to the above allocations, I also made grants available in 1996 of £2,000 to the ATTIC community drama group in Galway city and £7,000 to the Feis Ceoil towards the cost of hosting the General Assembly of the European Union of Music Competitions for Youth.

The Deputy will be aware that the main source of public funding for the arts is An Chomhairle Ealaíon, an independent statutory body established under the Arts Act, 1951. Details of allocations made by An Chomhairle may be obtained in its annual reports, copies of which are laid before the Oireachtas.

229. Miss Quill asked the Minister for the Environment the number of fatal accidents on the roads in 1996; the average age of the victims; and the measures, if any, he will put in place to reduce the number of such accidents. [1507/97]

Minister for the Environment (Mr. Howlin): Provisional Garda figures show that there were 417 fatal accidents on Irish roads in 1996, in which 455 people were killed. Detailed analysis of the Garda accident reports to provide data in relation to road users, age of victims and other matters will be carried out by the National Roads Authority in the preparation of Road Accident Facts, 1996.

I launched a national road safety campaign in May 1996, with a focus on all responsible agencies working together with the road user to increase the effectiveness of enforcement, education, engineering and encouragement measures. A number of new measures have since been taken and others are in the development stage. Established measures, including constant media advertising, education of road users, especially children, improvements to our road network and the enforcement of road traffic law, are being maintained.

New measures introduced last year include the publication of a guide to road safety engineering; new radio and TV advertisements by the National Safety Council; an enhanced role for local authorities in promoting road safety at local level; the establishment of a voluntary register of driving instructors; the introduction of on-the-spot fines for speeding offences; and the publication of a comprehensive traffic signs manual for local authorities. Further measures to be introduced include a theory test for new drivers, new traffic regulations and compulsory car testing.

[1168]

232. Mr. Ring asked the Minister for the Environment whether a portion of ground at Ellison Street, Castlebar, County Mayo, will receive section 23 designation. [25198/96]

243. Mr. Davern asked the Minister for the Environment the provisions, if any, he has made for the inclusion of Carrick-on-Suir and Tipperary town, County Tipperary, in the urban renewal scheme for 1997; and if he will make a statement on the matter. [1008/97]

256. Mr. Ring asked the Minister for the Environment whether a portion of ground at Ellison Street, Castlebar, County Mayo will receive section 23 designation. [1322/97]

Minister of State at the Department of the Environment (Ms McManus): I propose to take Questions Nos. 232, 243 and 256 together.

“Section 23” tax relief is available only in areas designated for urban renewal. An overall review of the urban renewal schemes as they have operated to date is currently under way. As part of the review, a consultant's study on the impact of the schemes in economic, social and architectural terms has been completed. The study was published on 5 December and is now the subject of a process of public consultation under which submissions have been invited from interested persons and organisations in relation to its conclusions and recommendations. Copies of the study are available in the Oireachtas Library.

There are no proposals at this stage to extend the present urban renewal scheme to any additional areas. It would be inappropriate to consider what new areas, if any, might be suitable for designation as part of any future scheme until general policy in relation to the next phase of urban renewal is determined in the light of the review.

233. Mr. D. Ahern asked the Minister for the Environment if his attention has been drawn to the fact that a large proportion of housing applicants in the Dundalk Urban District Council area are in urgent need of rehousing; and if he will make a statement on the matter outlining his plans to address this situation. [25199/96]

Minister of State at the Department of the Environment (Ms McManus): The assessment of housing need carried out by Dundalk Urban District Council in March 1996 showed 268 approved applicants for local authority housing, compared with a figure of 296 under the previous assessment in March 1993. I will notify each local authority shortly of the number of houses which the authority is authorised to build or acquire under its 1997 housing programme. Overall, the funding available in 1997 for the local authority housing programme and the other social housing [1169] measures will enable the needs of some 10,000 households to be met this year.

234. Mr. E. O'Keeffe asked the Minister for the Environment if he will have arrangements made for a driving test for a person (details supplied) in County Cork. [25229/96]

Minister for the Environment (Mr. Howlin): A driving test arranged for this person on 3 January was cancelled by him due to illness. A test has been rearranged on 24 January.

235. Mr. Dempsey asked the Minister for the Environment the progress, if any, which has been made on the provision of a sewerage scheme in Crosmollina, County Mayo; and if he will make a statement on the matter. [25237/96]

250. Mr. Ring asked the Minister for the Environment the current position regarding a sewerage scheme (details supplied) in County Mayo. [1203/97]

Minister for the Environment (Mr. Howlin): I propose to take Questions Nos. 235 and 250 together. A preliminary report for the Crossmolina sewerage scheme is with my Department but, given the level of commitments under the water and sewerage scheme programme, I cannot say when it may be possible to advance this scheme.

236. Mr. O'Dea asked the Minister for the Environment if he has received representations to extend the Limerick city borough boundary to include Purteen, County Clare; if his attention has been drawn to the objections which the residents of Purteen have in respect of this proposal; the intentions, if any, he has in this regard; and when he proposes to make a decision on the matter. [25267/96]

Minister for the Environment (Mr. Howlin): The legal framework for local authority boundary alterations, as set out in Part V of the Local Government Act, 1991 and the associated regulations, enables all the issues in relation to such a boundary alteration to be thoroughly considered by the local authorities involved in the first instance. It includes provision for public advertisement and consultation with the other local authorities concerned which enables submissions to be made to the promoting local authority by members of the public and by those other authorities. Such submissions must be considered by the promoting local authority in deciding whether to make an application.

Under the Act, an application for a boundary alteration cannot be made to the Minister for the Environment until this local process is completed. [1170] The process is still under way in the case of the Limerick city boundary and, therefore, I have no role in the matter at this stage. The Act also includes provision which would allow for the establishment of an independent committee to report and make recommendations following receipt of such an application. Given this legal framework, it would clearly be inappropriate for me to comment further on the matter at this point.

237. Mr. M. Kitt asked the Minister for the Environment the proposed amount of funding under the Cohesion Funds for road spending for the western region, being the province of Connacht and Donegal and Clare, up to the year 1999; the percentage of the Cohesion Funds to be spent in the western region; if he will carry out a mid-term review to give a greater percentage of moneys from the Cohesion Funds to the western region; and if he will make a statement on the matter. [25278/96]

Minister for the Environment (Mr. Howlin): Responsibility for the selection of road projects for submission for Cohesion Fund assistance is a matter for the National Roads Authority, following consultation with my Department, the Department of Finance and the European Commission. The approval of projects and the commitment of Cohesion Fund assistance in respect of individual projects is a matter for the Commission. The Cohesion Fund Regulation does not provide for a mid-term review.

The actual level of EU Cohesion Fund assistance to be received for projects in any area will depend on the progress on approved projects and on future project approvals by the Commission. Accordingly, it is not possible to forecast likely Cohesion Fund assisted expenditure in any area up to the end of 1999. Road projects approved to date for Cohesion Fund assistance in the area in question are set out in the following table:

Approved Cohesion Fund Projects in the Connacht, Donegal and Clare area (as at 1 January 1997)

N4 Curlews By-Pass	Roscommon County Council
N4 Sligo/Collooney	Sligo County Council
N6 Galway Eastern Approach Road	Galway Corporation
N18 Newmarket-on-Fergus By-Pass (Design)	Clare County Council
Integrated Network Improvement (N6 and N18)	Clare and Galway County Councils

[1171]

238. Mr. Ring asked the Minister for the Environment if he will pay a first time buyer's grant to a person (details supplied) in County Mayo in view of the fact that she should not be held responsible for unscrupulous builders who have not got their tax affairs in order in spite of the fact that they continue trading. [25300/96]

Minister of State at the Department of the Environment (Ms McManus): As indicated already, a grant cannot be allowed in this case since, contrary to a condition of the scheme, tax clearance has not been provided in respect of the contractor involved in the construction of the house. This condition is clearly outlined in my Department's explanatory memorandum on the scheme which issues to all applicants for new house grants and I have no power to waive it in particular cases.

239. Mr. Dempsey asked the Minister for the Environment the number of planning decisions made by local authorities and subsequently overturned by An Bord Pleanála on a county by county basis in each of the years from 1993 to 1996. [1004/97]

Minister for the Environment (Mr. Howlin): Details of the number of planning decisions made and appeals received by area for each of the years 1993 to 1995 are set out in my Department's publication, Planning Statistics 1995, a copy of which is available in the Oireachtas Library. Figures for the country as a whole relating to the number of planning authorities' decisions reversed, varied and confirmed by An Bord Pleanála are set out in Table 8 of that publication; this information is not available on a county by county basis. Information relating to 1996 is not yet available.

240. Mrs. O'Rourke asked the Minister for the Environment when the appropriate house payment will be made to the Streetwise Housing Association in Athlone, County Westmeath. [1005/97]

Minister of State at the Department of the Environment (Ms McManus): A grant of £42,180 has been approved in this case. Payment to the housing association is a matter for Athlone Urban District Council which is responsible for administering the voluntary housing scheme in the area. The council has indicated that certain essential matters are being finalised and that payment will issue shortly.

241. Mr. Ring asked the Minister for the Environment the position regarding people who have spotlights on their cars; and the regulations governing this position. [1006/97]

[1172]

242. Mr. Ring asked the Minister for the Environment his views on people who have spotlights on their cars in view of concerns that high-powered spotlights are causing many accidents. [1007/97]

Minister for the Environment (Mr. Howlin): I propose to take Questions Nos. 241 and 242 together.

Spotlights which equa