Dáil Eireann

Tá
Ahern, Bertie.	Ahern, Dermot.
Ahern, Michael.	Ahern, Noel.
Andrews, Barry.	Andrews, Chris.
Ardagh, Seán.	Aylward, Bobby.
Blaney, Niall.	Brady, Áine.
Brady, Cyprian.	Brady, Johnny.
Browne, John.	Byrne, Thomas.
Calleary, Dara.	Carey, Pat.
Collins, Niall.	Conlon, Margaret.
Connick, Seán.	Coughlan, Mary.
Cowen, Brian.	Cregan, John.
Cuffe, Ciarán.	Cullen, Martin.
Curran, John.	Dempsey, Noel.
Devins, Jimmy.	Dooley, Timmy.
Fahey, Frank.	Finneran, Michael.
Fitzpatrick, Michael.	Fleming, Seán.
Flynn, Beverley.	Gogarty, Paul.
Gormley, John.	Grealish, Noel.
Hanafin, Mary.	Harney, Mary.
Haughey, Seán.	Healy-Rae, Jackie.
Hoctor, Máire.	Kelleher, Billy.
Kelly, Peter.	Kenneally, Brendan.
Kennedy, Michael.	Killeen, Tony.
Kirk, Seamus.	Kitt, Michael P.
Kitt, Tom.	Lenihan, Brian.
Lenihan, Conor.	Lowry, Michael.
McDaid, James.	McEllistrim, Thomas.
McGrath, Mattie.	McGrath, Michael.
McGuinness, John.	Mansergh, Martin.
Martin, Micheál.	Moloney, John.
Moynihan, Michael.	Mulcahy, Michael.
Nolan, M. J.	Ó Cuív, Éamon.
Ó Fearghaíl, Seán.	O’Brien, Darragh.
O’Connor, Charlie.	O’Dea, Willie.
O’Flynn, Noel.	O’Hanlon, Rory.
O’Keeffe, Batt.	O’Keeffe, Edward.
O’Rourke, Mary.	O’Sullivan, Christy.
Power, Peter.	Power, Seán.
Roche, Dick.	Ryan, Eamon.
Sargent, Trevor.	Scanlon, Eamon.
Smith, Brendan.	Treacy, Noel.
Wallace, Mary.	White, Mary Alexandra.
Woods, Michael.

Níl
Allen, Bernard.	Bannon, James.
Barrett, Seán.	Behan, Joe.
Breen, Pat.	Broughan, Thomas P.
Bruton, Richard.	Burke, Ulick.
Burton, Joan.	Byrne, Catherine.
Carey, Joe.	Clune, Deirdre.
Connaughton, Paul.	Coonan, Noel J.
Costello, Joe.	Coveney, Simon.
Crawford, Seymour.	Creed, Michael.
Creighton, Lucinda.	D’Arcy, Michael.
Deasy, John.	Deenihan, Jimmy.
Doyle, Andrew.	Durkan, Bernard J.
English, Damien.	Enright, Olwyn.
Feighan, Frank.	Ferris, Martin.
Flanagan, Charles.	Flanagan, Terence.
Gilmore, Eamon.	Hayes, Brian.
Hayes, Tom.	Higgins, Michael D.
Hogan, Phil.	Howlin, Brendan.
Kehoe, Paul.	Kenny, Enda.
Lee, George	Lynch, Ciarán.
Lynch, Kathleen.	McCormack, Pádraic.
McEntee, Shane.	McGinley, Dinny.
McGrath, Finian.	McHugh, Joe.
McManus, Liz.	Mitchell, Olivia.
Morgan, Arthur.	Naughten, Denis.
Neville, Dan.	Noonan, Michael.
Ó Caoláin, Caoimhghín.	Ó Snodaigh, Aengus .
O’Donnell, Kieran.	O’Dowd, Fergus.
O’Keeffe, Jim.	O’Mahony, John.
O’Shea, Brian.	O’Sullivan, Jan.
O’Sullivan, Maureen.	Penrose, Willie.
Perry, John.	Quinn, Ruairí.
Rabbitte, Pat.	Reilly, James.
Ring, Michael.	Shatter, Alan.
Sheahan, Tom.	Sheehan, P. J.
Sherlock, Seán.	Shortall, Róisín.
Stagg, Emmet.	Stanton, David.
Timmins, Billy.	Tuffy, Joanna.
Upton, Mary.	Varadkar, Leo.
Wall, Jack.

Tellers: Tá, Deputies Pat Carey and John Cregan; Níl, Deputies Paul Kehoe and Emmet Stagg.

Question declared carried.

Deputy Leo Varadkar: I move: “That the Bill be now read a Second Time.”

I wish to share time with Deputies D’Arcy, Creighton, Reilly, Neville, Breen and Crawford. It gives me great pleasure to introduce the Small Claims (Protection of Small Businesses) Bill 2009. I welcome the Government motion, which Fine Gael will be accepting this evening, that the Bill be given a Second Reading within six months. Although I would prefer if the Minister of State could accept the Bill today, I appreciate that the Government accepts the Bill in principle. I expect the Government will introduce its own legislation within six months and that if not we will proceed to Committee Stage with this Bill.

The Bill is made up of two parts. Members will be aware that the small claims court procedure, introduced approximately ten years ago, allows consumers to seek redress in respect of disputes in regard to the sale of products or money owed up to a limit of £1,000 or €1,270, which is a low limit given that a family holiday, a wide screen television or a suite of furniture would cost more than €1,270. The first part of the Bill seeks to increase that threshold to €3,000.

The second part of the Bill, which is in many ways is the most important part, allows businesses, in particular small businesses, to use the small claims court procedure to pursue debtors, including companies and Government agencies who fail to pay their bills. This is a particularly important provision for small business which, as the Minister of State will be aware, employs approximately 800,000 people in 250,000 different businesses. Small business is the largest single employer in the State. It is a sector that is hurting in this time of recession owing to the reduction in the supply of credit due to the banking crisis, rising costs in doing business imposed in the most part by the Government and its agencies and from reduced consumer confidence, [485]which relates to the downturn in the economy and the fact that take-home pay has fallen as a result of increased taxes and levies.

Overall, this proposal forms part of 18 proposals put forward by Fine Gael to support small businesses. It is a valuable proposal. As the Minister of State will be aware, the Taoiseach has given a commitment that Departments will pay their bills to businesses, in particular small businesses, within 15 days. A late payment survey has yet to be carried out. I understand that the Department of Enterprise, Trade and Employment has reneged on its offer to carry out such survey. However, from the information available to me so far, Departments are by and large honouring that commitment to pay within 15 or 30 days. Unfortunately, this commitment has not been extended to cover Government agencies or State-owned companies. A person in business will know that his or her client is much more likely to be a Government agency such as the Health Service Executive, HSE, or a State owned company such as Iarnród Éireann or the ESB rather than the Department of Finance or the Department of the Taoiseach. We believe that commitment, that bills be paid within 15, or even 30, days, should be extended beyond Departments to all Government agencies, including the Houses of the Oireachtas and all State-owned companies. This procedure will allow businesses to pursue unpaid debts of a small value, less than €3,000, where it is currently not feasible for them to go to law because of the costs associated with hiring a solicitor and utilising the District Court procedure. It will allow them to pursue small claims without having to incur significant legal costs which will, in turn, help to reduce the cost of doing business.

I would like now to draw the attention of the House to some of the other proposals being put forward by the Opposition in respect of support for small business. In many ways, our economic strategy is based on four main pillars, the first of which is a fiscal and banking strategy that involves balancing the budget over a number of years but in such a way that keeps taxes low by concentrating on reductions in current spending rather than increasing taxes or availing of higher borrowing as proposed by other parties. The second pillar relates to the banking sector and proposes to immediately establish a national recovery bank capitalised with State funds but funded by the European Central Bank. Crucially, this proposal does what no other proposal will do, namely, it will allow the immediate flow of credit to businesses, consumers and home buyers. Irrespective of whether we go for NAMA or nationalisation, everyone accepts it will take a number of years to clean up the balance sheets and that, therefore, credit, the life blood of the economy, will not flow freely for a number of years under either of those models.

6 o’clock

Those who continue to advocate the nationalisation policy need only look to Anglo Irish Bank to see how successful it has been. It has cost us €7 billion already and that bank has not loaned money to anyone in the past six months. Another example is Iceland which has nationalised all its banks and has had to raise interest to 17% just to keep them funded. In many ways, NAMA is in my view nationalisation by stealth in that the money one gives to the banks by way of buying loans from them will have to be given back to them by way of recapitalisation. As stated, this will involve the purchase of ordinary shares and, therefore, will result in the de facto nationalisation of at least Allied Irish Banks if not Bank of Ireland. While we may end up there one way or the other, nationalisation should happen as a last option and not as a solution. It will not do what we need it to do, namely, extend money to business, which is what is needed now.

The Bill also includes a proposal for a PRSI exemption or wage subsidy. We understand that the biggest problem facing people is unemployment. Some 400,000 people are currently signing on the live register. It appears that number will continue to rise even though the economy will return to growth, and I accept it will return to growth.

[486]While the Taoiseach is correct that the recession will end in the next six to nine months, the growth that ensues will be jobless and will not fix the problems in the public finances. The recession of the 1980s ended in 1983 yet it was 1991 before we saw real job creation or repaired the public finances. Ending a statistical recession will not on its own solve our problems. We need to improve competitiveness and support businesses in creating jobs.

We have put forward proposals on reducing VAT and abolishing the travel tax. I understand the Labour Party is preparing a Private Members’ Bill which will provide for a prohibition on upward only rent reviews. Retailers in particular have been locked into leases which prevent them from negotiating reductions in their rents. As someone who managed to negotiate a 20% reduction in rent for my constituency office, I have great sympathy for retailers and other businesses who are locked into clauses which prevent such reductions.

My party’s proposals for greater flexibility in wage costs and conditions are particularly relevant to the hotel, catering and security sectors, in respect of which current employment regulations mitigate against employment. We have sought a reverse of the cutbacks in SkillNets and the Government has partially acceded to this. We have also asked for proposals on reducing red tape and forced a commitment out of the Government on reducing by 25% the cost of red tape to businesses. However, little real progress has been made in that regard and the Government has not yet shown us how it plans to calculate the baseline cost of regulation.

We want to see proposals on making it easier for small businesses to win Government tenders. I hope that the commission appointed by the Tánaiste to consider this issue will report quickly. An obvious measure would be to break large tenders into lots which could be bid on by small businesses. I am surprised at how many printing contracts, for example, go to other countries, as well as by the limited number of Irish companies tendering for them. I learned from the response to a parliamentary question that every element of Garda uniforms, from hats to jackets, is made in other countries. In many cases, these are Asian and other low cost economies but parts are also made in places such as Scotland and Belgium where costs are not dramatically lower than here. It seems our systems do not give Irish companies a fair crack of the whip on tenders.

We have also made proposals on reducing energy costs, which are 30% higher than in Northern Ireland, the UK and elsewhere in Europe. If the Government set a target for reducing energy costs to the EU average within two years, it could thereby make a significant impact on the costs for small businesses and increase the likelihood of investment in Ireland by businesses which use large amounts of energy. As Deputy Coveney has noted on many occasions, the current regulatory system drives up the cost of gas and electricity to encourage competition but, particularly in electricity, we now have such competition. Tens of thousands of people have transferred their accounts to Bord Gáis and Airtricity and it is time we reviewed the system and gave the regulator a role in setting the price ceiling rather than the floor.

We have also raised the issue of local authority rates. Considerable efforts have been made by councillors, including some from Fianna Fáil, to keep rates low. Given that Fianna Fáil has lost control over virtually every county council and that the Green Party has only three councillors, I am concerned that the Government might further reduce funding for local governments in order to force councils to increase rates or to vote for their own abolition.

We have proposed a redrafting of the Employment Law Compliance Bill 2008, which establishes the national employment rights authority on a statutory footing and gives it extreme powers to raid businesses and seize documents. I am pleased the Department of Enterprise, Trade and Employment has decided to defer Committee Stage of that Bill until September or [487]October. That is a recognition by the Government that the Bill as originally introduced by the Tánaiste in March 2008 was highly deficient and needs to be redrafted.

Small and medium enterprises deserve proper recognition within the social partnership structure, which for too long excluded important interests such as taxpayers, elected Members of this House, small businesses and consumers. If we intend to continue with this process, it must be modified to include proper and full representation for the small business sector and for the self-employed. The Minister for the Environment, Heritage and Local Government, Deputy Gormley, who seems to have some influence on the Government, has managed to include an environmental pillar in the social partnership structure so that environmental NGOs will have a place at the table. However, there is no place at the table for the self-employed, the unemployed or ISME, which represents independent small and medium enterprises. If we are to retain social partnership, its structure will have to be very different from the one which contributed to our present mess.

I am happy to move this Bill, which represents a small but important victory for consumers and small businesses. I thank the Government for accepting it in principle and look forward to either seeing new legislation within the next six months or proceeding with it to Committee Stage.

Deputy Michael D’Arcy: Like Deputy Varadkar, I welcome the Government’s support in principle for this Bill. Too many Private Members’ Bills have been voted down for the sake of politics. This legislation will greatly benefit businesses. I have long noted that the Cabinet is lacking people with backgrounds in business. It has been decades since Ministers have pulled a pint, sold a newspaper, milked a cow, ran an office or traded in any form. They do not understand what it means to be a sole trader or to go for weeks without receiving payment while having to pay wages and rates.

Deputy Varadkar spoke about the Government’s commitment to paying bills within 15 days. This is the first opportunity I have had in the House to raise an issue involving a State contract for a school building project on which payment remains outstanding. The company which won the tender gave part of the work to a subcontractor that subsequently went out of business. When a State contract is awarded, people should be paid. As the service has been provided, the State is liable for payment. It is unfair of the State to claim it is a matter for another Department or the subcontractor. I have put down several parliamentary questions on this matter. If the State asks somebody to construct a building, it should pay for the work.

It is important that businesses are paid because the banks are closed to them in terms of cashflow and overdrafts. I have been approached by a number of good businesses which have found that their overdraft facilities have been reduced to 10% of their original limits of €15,000 or €20,000. That is destroying businesses and putting people out of work. Not only are they out of work but they are seeking social welfare benefits and not contributing to taxation. They are dominos being removed from the chain and when removed, it is very difficult to get them back into employment when they will be of benefit to the State rather than costing it moneys in unemployment benefits.

Small and medium enterprises are a huge cog in employment provision in the State. I agree that ISME should be considered a pillar of partnership. IBEC no longer represents small businesses; it represents enormous State companies such as the ESB and private companies such as Google. It does not represent small employers such as small book shops and newsagents who provide hundreds of thousands of jobs that are vital to the economy. We must get them involved in partnership.

[488]We must stop enacting legislation that impacts on jobs. This time last year we wrapped up the debate on the Intoxicating Liquor Act. When it was being discussed, nightclub owners said that if it was passed, they would close. In recent days we heard that Reynard’s — not a place I frequent — would close. They told Members of the House that if we passed the Bill, they would go out of business. The Bill was passed and while it has made no difference to the impact of excessive drinking, we have put people out of business. For too long I have been stating we cannot ignore what businesses say to us. Yes, they are vested interests but on this occasion they have been proved correct. We cannot continue to ignore the likes of nightclub owners who stated that if we acted in a certain way, they would go out of business. There are more people unemployed and more families being impacted upon.

Deputy Lucinda Creighton: I am delighted to have an opportunity to speak to this important Bill, the importance of which should not be understated. I congratulate Deputy Varadkar on introducing it and the work he has done in highlighting the plight of businesses over the course of recent months, in particular.

A significant problem faces us; SMEs are the lifeblood of the economy, yet they are struggling to cope, stay alive and afloat. Those who are staying afloat are struggling to keep the one, two or three people they may have in employment. This is a major challenge which I am sure everybody in the House has had to deal with in terms of businesses in their constituencies. In my constituency for the past eight or ten months as one drives through what was a particularly vibrant urban village, Ranelagh, one sees “To let” signs on at least ten or 12 premises in the heart of the village. This is indicative and symptomatic of the fundamental problem facing us; the small businesses which are the lifeblood of our communities are going to the wall and the main problems facing them are cash flow and credit flow.

The Bill proposes to deal with this problem to an extent by enabling SMEs to use the Small Claims Court to pursue debtors, an avenue not open to them until now. The proposal to increase the threshold to €3,000 is also significant. What has become a feature for small companies and businesses is that when they are owed money, they are not in a position to pursue their debtors because the sums may be too small to merit or warrant litigation because of the costs involved. They are caught between a rock and a hard place and there is nothing they can do. This legislation will enable them an avenue of pursuit without the high costs, legal bills and overheads that apply to ordinary court procedures. This is very welcome. I am absolutely delighted that the Government has seen the light on this issue and agreed to support this tenet of the Bill. It will benefit small businesses and make life a little easier for them.

ISME is a wonderful organisation which does a huge amount of work in highlighting the plight of businesses throughout the country and the difficulties facing them. It has conducted interesting surveys and research in recent months which bring home how difficult the situation is for small businesses. The survey it conducted at the end of May shows that 70,000 SME jobs are in immediate danger. We know this is due to high labour and other costs associated with running small businesses and the real and pressing factor of credit flow. It is alarming, yet many people, particularly on the Government benches, do not seem to be fully cognisant or aware of how serious the problem is.

ISME also conducted an important survey at the start of May which showed that 58% of companies had been refused credit by banks. This is a significant increase on the figures indicated in previous surveys. Despite all of the measures adopted by the Government on the banks — the guarantee, recapitalisation and so on — credit is still not flowing to SMEs. The Government must address this as a matter of priority and I urge it to do so.

[489]I agree with Deputy Varadkar on the urgent need to have the voice of consumers and small businesses heard around the social partnership table. Social partnership in its current form has failed and is redundant. It needs to be abolished and reconfigured with a fully representative voice because as it is constituted at present it is essentially a sham.

Deputy James Reilly: I ask the Acting Chairman to let me know when I have one minute remaining.

Acting Chairman (Deputy Charlie O'Connor): I certainly will.

Deputy James Reilly: Go raibh míle maith agat.

Acting Chairman: The Deputy’s time is running.

Deputy James Reilly: I thank Deputy Varadkar for bringing the Bill before the House. This issue is a matter of concern up and down the country and everybody one meets or speaks to, whether involved in trade or trying to run factories or small businesses which are holding on by their fingernails, is looking to the Government and asking what is it doing to help him or her but he or she is not seeing that help coming through. Consider the amount of money going into Anglo Irish Bank, none of which is being made available to those who need overdraft facilities for their business. I will cite one particular instance of an electrician who has a small number of men working for him. Two years ago it was not an issue for him to obtain an overdraft of €90,000; today he has been waiting three months for an answer to his request for an overdraft of €10,000. He cannot do business. A number of opportunities are coming his way but he cannot afford to take them because he cannot take the risk without an overdraft.

Small businesses are suffering. The car trade, to mention but one, is on its knees. In Stephenstown Industrial Estate in Balbriggan in north County Dublin there were 360 jobs, of which 80 are gone. Of the 280 jobs remaining, 80 are under threat. I met the business people concerned a couple of weeks ago and they are completely frustrated. They pointed to Northern Ireland which is only 40 miles from them. They wonder why people would want to set up in Fingal in the South when they could travel to the North where set-up costs are much lower.

The rateable valuation here is far too high. It was calculated at the height of the boom when property values and economic activity levels were significantly higher. That is not the situation now, as we all know. Fine Gael asked that all rates be frozen, but that has not happened in all areas. We need to examine that issue again. Landlords are being asked to review rents downward to reflect the reality for business, but how many landlords have cut rents? Many tenants have been able to renegotiate. I ask county councils to also reconsider and reset their rates, particularly for businesses which are trying to sustain themselves through these tough times. They might consider a discount of, say, 20% for two years and then review the position again. Half a cake is better than none. If the 80 jobs mentioned are lost, it will cost the Exchequer €20,000 each in lost revenue, tax payments and welfare payouts. Everybody will lose in that case.

Another issue is that development levies were set when the economy was at an all-time high and property was three or four times the price. The levies have not changed. They must be reviewed downward. If one sets up a factory in the North, the nominal charges for connection to services are of the order of €2,000. In the South they are more than €100,000. That is unrealistic. We must cut our cloth to suit our measure.

Deputy Varadkar mentioned other issues, including the need to reduce the VAT rate downward and a PRSI holiday for those who take on new employees, but I wish to raise an issue I mentioned yesterday. We are trying to create a green economy, yet there is a connection charge [490]to the grid of an outrageous sum such as €1.2 million to €1.7 million. That kills business before it gets off the ground.

I would like to see the Government take on board the recommendations made in Deputy Varadkar’s Bill which I commend to the House.

Deputy Dan Neville: I welcome the opportunity to support the Bill. Small and medium enterprises are the backbone of the economy and my constituency. The economy of County Limerick is dependent on them. Even though we have big towns, we do not have large industries in towns such as Rathkeale, Newcastle West and Kilmallock. The economy is totally dependent on small businesses. Nationally, more than 800,000 people are employed in small small and medium-sized enterprises which contribute substantially to the economy. The increase in costs, including fuel and other business inputs, has significantly impacted on such enterprises and caused a level of job losses which is unacceptable.

Prompt payment by the Government and creditors is crucial. I spoke to a small businessman recently who told me that this was one of his difficulties. He told me also that organisations and companies which could afford to pay small businesses for services were not doing so and were using current circumstances to imply they were in difficulty. It is obvious that many of them are not in difficulty. There must be a mechanism, similar to the one outlined in the Bill, to ensure those who can should pay and not misuse current difficulties to delay payment and exert extra pressure on small and medium-sized businesses.

In recent months the Government has made the position worse with the increase in taxes and the absence of political leadership. On the issue of confidence, leadership is required from the Government. There is money in the economy. There are people working; some have increased wages and salaries, yet they are afraid to spend. They are worried about their future and that of their children. They are frightened of losing their jobs. The majority will not lose their jobs, but the failure of the Government to instill confidence in them to spend is one of the crucial issues affecting the current state of the economy and inhibiting an upturn.

There have been job losses in high profile industries. Dell in Limerick is located outside my constituency but a large number of people living in my constituency work there. The position at the company has severely affected us. There has also been a silent haemorrhaging of jobs from small and medium-sized enterprises across the country. This week we saw a considerable increase in unemployment in my constituency, most of which occurred in May in small and medium-sized industries.

Deputy Pat Breen: I commend Deputy Varadkar on bringing forward the Bill. I am delighted he has a keen interest in small and medium-sized enterprises because, as Deputy Neville said, they are the backbone of the economy. There are approximately 250,000 small and medium-sized enterprises in Ireland employing approximately 800,000 people. Unfortunately, the latest live register figures show there has been a 94% increase in the number of people signing on. Many of the 400,000 people signing on were employed in small and medium-sized enterprises. The closure of many small industries has gone unnoticed by the media and often is not reported. Only large company closures are reported. Some 35% of small and medium-sized enterprises expect redundancies at a level of 20% in the next three months. Many of the workers in the companies involved have already taken pay cuts and the companies are barely ticking over. More of them will go to the wall because they cannot get access to credit.

In my constituency of Clare 25 to 30 small retail units in Ennis have closed in the past 12 months. Following the figures announced yesterday, I note there are 9,688 people employed in the county. Some are employed in the construction sector and service industries, but many [491]are employed in small and medium-sized enterprises. Many architects, engineers, auctioneers, solicitors and those involved in retail shopping units are already working short-time hours and have taken pay cuts. How often have we seen retail units lying idle, many of which have never been occupied? An employee in an auctioneer’s office told me the other day that there were two in her house working, that she worked for an auctioneer and that her husband was employed in the public sector, but since last October their disposable income has been reduced by €700 a month, which effectively means they are paying a second mortgage every month to bail out the bankers who created this crisis.

We must get the banks to start lending again. Businesses are starved of credit. That is the reason Fine Gael has proposed the establishment of a national recovery bank which would buy good debts from the guaranteed banks, thereby providing them with the capital they need to cover their losses and bad loans and free up their resources to enable them to lend again. Many small businesses are already finding it difficult to access capital and face further financial difficulties in trying to recover small debts. Deputy Varadkar’s Bill is important because he has inserted a provision to provide that any debts not exceeding €3,000 could be dealt with by the Small Claims Court. That is an important measure. Currently, only consumers can use this court. This measure would alleviate some of the problems many small businesses are experiencing in trying to recover debts.

Other issues were raised, including those related to VAT and a freezing of local authority rates. They must be taken on board. I hope many of the new local authority members will do so before the end of the year.

I urge the Minister to examine the cutback of funding for Skillnet companies. Many companies testify to the value of that network model which delivers relevant training but which also provides crucial support for companies, their owners and employees. Many Skillnet participants may lose their jobs as the recession deepens, but rather than segregating the unemployed, they should be integrated through enterprise-led training and allowed to participate alongside people already in employment.

I welcome Deputy Varadkar’s Bill and I am delighted the Government has indicated it will accept it.

Deputy Seymour Crawford: I thank Deputy Varadkar for introducing the Bill and welcome the fact that the Government has decided to accept it in principle. As someone who has been a Member of the Dáil longer than many others who have spoken, I am concerned at the Government’s commitment to leave it for six months, which can often be elastic. Small businesses simply do not have the time. They require these issues to be dealt with as a matter of urgency. They require not only the passage of this Bill, but also to get cash circulating as quickly as possible and to be guaranteed that bills for services provided to Government, whether to Departments or agencies, are paid on time. One still hears of cases of agencies which are very slow to make payments.

There is not a scarcity of money as some people have made out. Credit unions and post offices have never had as much money as at present. The real problem is that while the Government has poured €7 billion into Allied Irish Banks, AIB, and Bank of Ireland, customers cannot get money out today. Before going to the Dáil for a vote I heard from a young man who is in business. He had a sizable loan with a small overdraft, but he was told today by AIB that the facility would be no longer available. I make no apology for mentioning the name of the bank concerned in the House because the Government and taxpayers are bailing out and supporting that bank. The Government must get agreement from the banks, whether AIB, Bank of Ireland, Anglo Irish Bank or whichever, that if taxpayers’ money is being poured into them, they must provide a service and relieve small industry such that it can continue to work.

[492]There is also a problem with costs generally. Deputy Reilly referred to businesses in Finglas competing with those over the Border, but let us consider the position for those in Cavan-Monaghan competing with businesses across the Border. People there have a choice and they need only travel a short distance. They can still live at home and start up a new business in Northern Ireland. Change must be made. The VAT issue was brought to the attention of the Minister for Finance between the budget and the supplementary budget. He admitted he made a mistake initially but when he introduced the supplementary budget he did nothing about it. I welcome the leeway the Government has given towards this Bill, but I refer again to the six month period in question. Small businesses cannot wait six months for the Bill to make progress or for more red tape. This should be sorted out as a matter of urgency.

Minister of State at the Department of Enterprise, Trade and Employment (Deputy John Moloney): I move amendment No. 1:

To delete all words after “That” and substitute the following:

“Dáil Éireann:

welcoming the extensive measures already taken by the Government to ensure access to credit and support for small business generally;

noting that the Department of Justice, Equality and Law Reform in consultation with the Department of Enterprise, Trade and Employment is engaged in a review of the limits and scope of the current small claims procedure;

accepting the Government’s intention to bring forward a measure, as soon as possible, to widen the scope of the current procedure;

resolves that the Small Claims (Protection of Small Businesses) Bill 2009 be read a Second Time this day six months.”.

I wish to share time with the Minister of State at the Department of Enterprise, Trade and Employment, Deputy Calleary.

At the outset, I genuinely welcome the Bill. As someone involved in a small business for years I wish to put on record my appreciation for the efforts involved in introducing the Bill. For the purpose of clarification, the issue of six months is not an attempt to reduce the importance of the Bill or to sideline it. It is simply to allow the working out of the detail and I trust Deputy Varadkar accepts this explanation. I refer to the issue raised concerning the reduction of council seats on local authorities. This is not an attempt to reduce grants and that suggestion is somewhat impossible to accept.

I appreciate the efforts made to introduce this proposal and I am pleased to respond to Deputy Varadkar’s proposed Private Members’ Bill on behalf of the Government. I have no doubt his motivation and objectives are sincere in terms of what he seeks to achieve and the Government is in broad agreement with his proposal. The Government has made clear that it is open to ideas and it will not vote against this Bill this evening. However, there are several concerns with the detail of the Bill and, therefore, the Government proposes that the Second Reading be postponed for six months to reconsider the issue in detail and to ensure the issues do not have any adverse effect on the operation of the current small claims procedure.

Before turning to the specific proposals contained in the Bill, I take this opportunity to remind the House that the Government fully appreciates that all businesses, especially small businesses, have been significantly affected by the very difficult economic situation the country [493]is experiencing. Many Deputies have spoken during the course of the debate about the difficulties facing the banks and small businesses, especially legitimate small businesses, which have always operated within the constraints of their overdraft agreements. It now appears these businesses are being penalised. I understand the thinking behind the Bill and the comments made in support of it.

The Government is very aware that small and medium sized businesses are key to maintaining employment in the immediate future and to improving employment and the economy as we move through the current difficult international economic crisis. It is obvious that consumers and businesses have been severely impacted by the economic circumstances. This has manifested itself in difficulties on the part of both consumers and businesses in terms of making payment for goods and services, mortgages, rent on premises or fulfilling other contractual obligations. The point has been made by many Deputies also about small businesses being owed money by State organisations and companies. It is very important that the Government takes on board the proposals made in the Bill.

Recently, I heard an accountant on the radio discuss the fact that he was having difficulty obtaining payment from several long-standing small business clients. What the accountant had to say is very important in the context of what the Bill seeks to achieve. The accountant’s clients were viable businesses but were, in the main, having difficulties trading due to cash flow and credit payments. I realise from my own experience that businesses require credit to allow them to continue to trade. I support the notion of this Bill. It is timely and I have no difficulty welcoming its contents and the thinking behind it.

Unfortunately, the very quick financial downturn, which could not reasonably have been anticipated by consumers and business, has resulted in cash flow and credit difficulties with a consequent debt problem. The Government is acutely aware of this problem and has very specific measures to address the serious issues that have arisen for small businesses as a result of the economic and banking crises. Our focus is very much on the needs of the wider economy and especially on the enterprise sector, including the small business element of that sector. We are very aware of the fact that one of the key drivers of our economic recovery is the provision of appropriate credit facilities to small businesses and enterprises.

There is a great deal of anecdotal material to suggest that banks are unwilling to lend in many cases, even to apparently viable businesses. Recently, I heard an interview on RTE Radio 1 with people working in a small family printing business comprising a husband, wife and their daughter-in-law. Traditionally, the company always traded within an overdraft agreement. However, it could not renew its overdraft and those involved made the point that they had to modernise the computer back-up facilities. Unfortunately, the business was going to the wall because it could not secure the necessary ongoing finance.

All the main banks have said they remain open for business, are willing to lend where appropriate, and continue to approve a high percentage of credit applications. It is widely believed that demand for credit has fallen and that many businesses are unwilling to approach banks at present. I am pleased the Government has decided that an independent review of bank lending is required. As part of the bank recapitalisation programme, the banks agreed to fund this review. It is very important that people are aware of this and it is currently underway. The report of the review is expected by the end of June or early July.

It must be made very clear to the House that the Government is taking the necessary steps to address the problems faced by small businesses and that we will continue to take whatever action is required to overcome the current situation. The measures we have taken will go a significant way towards addressing the cash flow and credit facility problems facing small businesses.

[494]In this context it is important to understand what the small claims procedure is all about. It was put in place to facilitate consumers with an inexpensive method to resolve small claims without the need to employ legal representation. It operates very much as a consumer-friendly procedure in respect of issues such as faulty goods or bad workmanship in the main and all the evidence is that it operates very effectively at present. The procedure was originally introduced on a pilot basis in 1991 by the then Fianna Fáil-led Government and was extended nationwide some two years later. The procedure is provided for under the District Court rules.

From its inception the procedure was designed to handle consumer claims cheaply without involving a solicitor. The District Court clerk, who is called the small claims registrar, processes the claims. Where possible, the registrar will negotiate a settlement without the need for a court hearing. Nearly half of all current claims are settled in this way. If the matter cannot be settled, the registrar will bring the claim before the District Court.

Currently classes of claims are limited to a claim for goods or services bought for private use from someone selling them in the course of a business — consumer claims; claims for minor damage to property but excluding personal injuries; and claims for non-return of a rent deposit for certain kinds of rented properties, for example, holiday homes. Other matters relating to rented accommodation are dealt with by the Private Residential Tenancies Board. The current procedure excludes claims arising from a hire purchase agreement, a breach of a leasing agreement or debt. With the exception of the European small claims procedure which commenced on 1 January 2009, the procedure is not currently available for use by a business against a consumer or another business.

The procedure is designed to be simple and user-friendly without recourse to legal advice. Once the claim is lodged, the registrar will negotiate with the claimant and respondent to try to reach an agreement without the need for a court hearing. Where necessary, the registrar may arrange a meeting with the parties. However, the process is kept as informal as possible and is held in private. There is no need to engage the services of a solicitor or other legal representative, although the parties are free to do so should they wish. Such costs are not recoverable from the other party. If the registrar cannot settle the dispute, a time and date will be fixed for a District Court hearing.

The court hearing will be heard in public as part of the normal sitting of the District Court. Evidence will be given under oath or affirmation, witnesses may be called and cross-examination is allowed. Costs incurred by either party, whether through the engagement of legal representation or expert witnesses must be borne by the party calling them, regardless of in whose favour the court determines the dispute. If the matter is determined in the claimant’s favour, the respondent will be given approximately four weeks to pay the amount awarded by the court. Both parties have the right to appeal the order of the District Court to the Circuit Court.

In recent years, in order to improve the delivery of electronic services to the public in accordance with Government policy on e-Government, an on-line small claims service has been introduced. Initially it was run on a pilot basis in 2004 in the Dublin Metropolitan District Court and in Cavan District Court. Over the intervening period the on-line system has been rolled out throughout the remaining District Court areas and, since May last year, the system is live in all District Court offices throughout the country. It facilitates the public in lodging claims over the Internet, in cases where this is convenient. Claimants can pay the court fee of €15 on-line and follow the application through the various stages of the process using a unique pin number. Some 45% of all small claims in 2008 were received on-line and this is a measure of its success.

[495]I will give the House an idea of the volume involved. In 2008 there were just over 4,000 applications, an increase of 11% from 2007. The largest increase related to claims about dry cleaners, which more than doubled. Claims about minor building issues, such as painting and decorating, increased from 109 in 2007 to 213, while applications relating to cars, usually servicing and maintenance issues, increased by 48%. Claims about holidays accounted for 10% of the total. It should be noted that there was a considerable decrease in applications that could not be dealt with under the small claims procedure, from 589 in 2007 to 426.

In 2008, a total of 44% of all claims finalised were settled by the small claims registrar with only 26% referred to court. There was an 18% increase, from 294 in 2007 to 349, in decrees by default, where the person against whom the claim was made did not respond or take any part in the case. Last year there were 1,030 cases referred to court, an increase of 20% on the 2007 figure of 857. Of those cases, 587 were dismissed, struck out or withdrawn with decrees granted in the remaining 443. A European small claims procedure commenced operation on 1 January 2009. It provides an alternative method of commencing and dealing with civil and commercial matters in respect of a small claim in cross-border cases only. It is provided for in an EU regulation and in new District Court rules. A cross-border case is one where at least one of the parties lives in a member state of the European Union, excluding Denmark, other than the member state of the court dealing with the claim.

As with the national small claims procedure, the service is provided in Ireland through the District Court offices. The service is not available on-line. The procedure will be mainly dealt with by correspondence although a hearing before a court can be held if the court thinks it is necessary. The service is available for civil and commercial disputes up to a value of €2,000. Where possible, the registrar will negotiate a settlement without the need for a court hearing. The parties do not need to involve a solicitor and the same application fee of €15 applies. The process operates in a similar manner to the national procedure and a judgment given under the European small claims procedure is recognised and can be enforced in another EU member state. Enforcement procedures are governed by the law of the member state where the judgment is being enforced.

The small claims procedure currently allows for claims up to a maximum of €2,000 rather than the €1,269 mentioned in this Bill. The current limit was introduced in 2006 in response to the report of the consumer strategy group which had recommended a move towards a maximum level of €3,000. The matter is kept under review and as the Minister informed the House last November, a review is being undertaken this year. The review being carried out by the Department is considering the resource impact of any increase as well as inflation.

I do not doubt the Deputy’s motivation and objectives in putting forward this Bill. However, the Government has a duty to ensure that any legislative proposals are well founded and drafted. The Bill, as drafted, has a number of potentially negative consequences for consumers and small businesses alike which the Deputy may not have taken into account. For example, in the first instance, it may not be necessary to bring forward primary legislation. The current procedure was introduced by statutory instrument amending the District Court rules. It may be possible to achieve considerable widening of the scope of the procedure through an amendment of the District Court rules rather than an Act of the Oireachtas. However, a legal precedent prevents limited companies from being represented in domestic court proceedings by their directors or officials, in the absence of a statutory exception, and it may be necessary to make provision for this in primary legislation. The advice of the Attorney General will be necessary on this point as it would be desirable that the process can be conducted in so far as possible without recourse to expensive representation.

[496]There is a danger that one of Deputy Varadkar’s proposals could fundamentally alter the whole ethos of the small claims procedure. Rather than expanding it to act as an aid to business, as currently drafted, it has the potential to transform the focus of the process from an aid and assistance to the individual consumer to that of an anti-consumer measure. Such a move could have negative implications for the whole ethos of the small claims procedure. The measure as proposed, while promoted as one facilitating small business, has far wider implications, in that it would enable any business, irrespective of size, to prosecute claims against consumers and other businesses, large or small, with minimal formality. The measure could prove an advantage for large businesses, especially those with in-house law agents, collecting relatively small debts from large groups of consumers and small businesses. It could be argued that it would make consumers and small businesses more vulnerable. For that reason, this aspect requires very careful consideration and consultation and hence the six-month delay in the Second Reading of the Bill. The financial limit applying to the procedure was increased to €2,000 in 2006. The Minister already indicated to the House, in the context of the Arbitration Bill, that he has an open mind in respect of this limit. It is the subject of an ongoing review which will be brought to a conclusion in consultation with the Department of Enterprise, Trade and Employment as well as with the other stakeholders. The Minister will present proposals as soon as possible.

The majority of citizens will only ever have a short-term or once-off relationship with the courts, as victim, witness, juror, defendant, litigator or seeker of redress, etc. Since its establishment, the Courts Service has been extremely progressive in adapting to new methods and approaches and part of this is to try to ensure the experience is as positive as it can be in the circumstances by providing the necessary and appropriate information. Their dedicated information officer has implemented a wide-ranging and comprehensive strategy. The award-winning courts website has been developed continuously to ensure it meets the needs of its users.

As part of the customer service action plan, a number of user groups have been established to assist in developing a consumer-centred approach to service delivery. These groups help ensure that the views and suggestions of those involved in the courts system are taken into consideration in the development and operation of policy initiatives. Such groups assist greatly in improving the efficiency and effectiveness of the system. They include representatives from professional and representative bodies and provide a useful forum for the exchange of ideas and help to make users aware of each other’s needs and concerns. There are also a number of tailored outreach programmes to provide information to groups interested in specific aspects of the work of the courts. This initiative gives the service an opportunity to provide information in a targeted way tailored to meet the needs of a variety of interest groups. I know the service would be happy to provide any assistance or information regarding access to the courts to groups representing business.

In the past 12 months, the Government has greatly increased the resources available to the courts, not least in the number of additional judges appointed. The Courts and Court Officers (Amendment) Act 2007 provided for an additional 14 judges, comprising six judges of the District Court, four of the Circuit Court and four judges of the High Court. The proposals have the potential to provide an inexpensive and speedy mechanism for small businesses to pursue small debts.

I hope the Deputy will appreciate the genuine concerns which give rise to the need for further consideration. The Government does not wish to put at risk the current system which is working well. Detailed analysis is required to identify a means to extend the scope and range of the system without disadvantaging individual consumers who are making good use of the [497]current efficient model. This work will be done quickly and without delay, building upon the review already underway in my Department.

Minister of State at the Department of Enterprise, Trade and Employment (Deputy Dara Calleary): I, too, appreciate the efforts made by Deputy Varadkar in introducing the proposal. Within the House, we all acknowledge that small and medium enterprises are the backbone of the economy, representing 97% of all businesses, and employing 800,000 people. We share a pro-business policy environment which has been in place for many years. Our enterprise development agencies and our tax system offer strong support to enterprise, especially to SMEs, and that system is shared and supported by all parties in this House.

Despite the constraints on public finances this year, our Department’s Vote provides more than €500 million for the support of enterprise, innovation and research and development. We are also investing more than €1 billion of the budget to support a range of labour force measures which will assist those who have lost their jobs. We have launched the enterprise stabilisation fund with additional funding of €100 million to support enterprises through their current severe difficulties and SMEs will benefit from much of this funding.

The Government’s focus in dealing with the crisis in our banking system has been to introduce measures to maintain a properly functioning and well-regulated banking infrastructure to support the wider economy and to restore confidence and credibility in this country. The importance of SMEs has been acknowledged and supported in these measures. The banks’ recapitalisation package contains a range of initiatives to assist the enterprise sector directly. The recapitalised banks have committed to increasing their lending capacity to SMEs by 10% over 2008 and I reiterate previous calls on them to make that funding available as soon as possible. I heard the Minister of State, Deputy Moloney, refer to the case of the small printing company. We all have those cases and those stories. I ask the banks to start assisting those companies. In addition, a €100 million environmental and clean energy innovation fund is being established by each bank as well as a further €15 million from each to new or existing seed capital funds.

Irish SMEs are covered by the code of conduct on business lending to SMEs. This code was published by the Financial Regulator and came into effect from 13 March 2009. Lenders covered by the code are required to offer their customers an option for an annual review meeting, to include all credit facilities and security, including collateral. Banks are also required to treat all credit applications on their merits, to inform customers of the basis for decisions made and to have written procedures for the proper handling of complaints.

As previously mentioned by the Minister of State, Deputy Moloney, the main Irish banks have also agreed to pay for and co-operate with the carrying out of an independent review of bank lending to SMEs. The purpose of the review is to ascertain the position on credit availability to Irish SMEs and to recommend appropriate action to improve credit availability. The report will be available by the end of the month. SME representative bodies, including the Small Firms Association, SFA, Irish Small and Medium Enterprises, ISME, and Chambers Ireland are actively participating in this project. Three banks, Allied Irish Banks, Bank of Ireland and Ulster Bank, are providing funding for SMEs on foot of €300 million facilities provided by the European Investment Bank to assist developing SMEs.

The Tánaiste and the Minister for Finance have also established a credit supply clearing group with bank, business and State representation. Formal terms of reference and membership were announced for this group on 19 May. The SFA, ISME, Chambers Ireland, Fáilte Ireland and the IFA are the business representatives on the group which held its first meeting on 28 May. The credit supply clearing group will identify patterns of events where the flow of credit to viable businesses appears to be blocked and will seek to identify credit supply solutions [498]relating to these patterns. However, the group will not be an appeals mechanism for cases where credit has been refused by the banks.

As a further measure to assist SMEs, the Government approved formal arrangements on 19 May to reduce, from 30 to 15 days, the payment period by central Departments to their business suppliers. This is an issue that Deputies Varadkar and Penrose have been pursuing for some time. This commitment will have effect from 15 June 2009. Reducing payment periods to 15 days for Departments should help ease cash flow difficulties for small businesses operating in the current economic climate and should set an example for businesses in the private sector to improve their payment records and pay each other more promptly. As part of the new arrangements, Departments will be required to report quarterly to my Department on the manner in which they have complied with the Government commitment. They will also include information on the implementation of the measures in subsequent annual reports.

Late payment in commercial transactions is addressed by the European Communities (Late Payment in Commercial Transactions) Regulations 2002. The 2002 regulations transposed EU Directive 2000/3 5/EC on late payment in commercial transactions into Irish law. Under these regulations, it is an implied term of every commercial transaction that where a purchaser does not pay for goods or services by the relevant payment date, the supplier shall be entitled to interest, namely, late payment interest, on the amount outstanding. Interest shall apply until such time as payment is made by the purchaser. The current interest rate applicable since 1 January 2009 is 9.50% per annum or 0.026% per day. This rate is set as of 1 January and 1 July each year at a rate of 7 percentage points above the European Central Bank interest rate on its most recent main re-financing operation. In the absence of any agreed payment date between the parties, late payment interest falls due after 30 days. Departments automatically include late payment interest where late payments are being made after the 30 day period. The European Commission has launched a review of the Late Payments Directive 2000/35/35/EC. This proposal was launched by the Commission on 8 April 2009, and will be discussed in detail in the Competitiveness and Growth Council Working Group in the coming months.

Public procurement represents a key opportunity for our SMEs. Within the past few weeks, the Tánaiste and my colleagues in the Department commenced work on a project aimed at improving access for small and medium enterprises to public procurement opportunities. I wish to acknowledge the work done by Deputies Varadkar, Penrose and Morgan, my former colleagues on the Joint Committee on Enterprise, Trade and Employment. We had an eye-opening meeting at this time last year with the print forum with regard to the difficulties its members were experiencing. However, the project now under way will implement a number of actions aimed at breaking down barriers to access by SMEs to public contracts. These will include measures to ensure minimisation of the transaction costs of preparing and submitting tenders, including for example, maximising the application of the national public procurement website and electronic procurement opportunities. They will include breaking down contracts into lots, encouraging partnering among SMEs and encouraging larger companies to sub-contract. Small enterprises are in a position to provide more innovative and flexible solutions in response to Government needs than many of their larger corporate competitors. As a result of the initiative now under way, small enterprises should not find the requirements to enter that competitive process too high or too complicated.

At EU level, the annual SME performance review was launched by the Commission in 2008. This review represents a comprehensive source of information on the performance of SMEs across Europe. It also serves as a useful tool in the context of the Lisbon agenda process and the follow-up implementation of the Commission’s Small Business Act for Europe, published in June 2008. The SME performance review is complemented by the Small Business Act fact [499]sheets, with more precise information on each member state and a set of studies providing more in-depth information on specific issues particularly important for SMEs in Europe.

The Commission’s so-called SBA policy radar for Ireland yields a remarkably positive picture in comparison with other countries, according to the 2008 report. Particular strengths in 2008 were the Irish public’s attitude towards entrepreneurs. Some 85% of our citizens agree that persons growing a successful and new business receive high status, while the EU average is only 69%. In the areas of skills and innovation, Ireland, once again, out-performed the EU average by a considerable margin.

It is clear from the range of issues outlined that the Government has been proactive and positive, and continues to be so, in addressing the concerns of business, in dealing with access to bank credit and assisting SMEs at this very difficult time. We will continue to consult with the SME representative bodies to include them in the relevant groups and to respond to their concerns. My colleague, the Minister of State, Deputy Moloney, has proposed formally that the Second Reading of the Bill be postponed for six months in order to consider the issues in detail and to ensure it does not have any adverse effect on the operation of the current small claims procedure. We and the Department will work actively with members of the Joint Oireachtas Committee on Enterprise, Trade and Employment and with Deputy Varadkar and his colleagues in our endeavours to pursue this issue. We will also involve the SME representative bodies.

Deputy Willie Penrose: I wish to share my time with Deputies Liz McManus and Arthur Morgan.

An Leas-Cheann Comhairle: Is that agreed? Agreed.

Deputy Willie Penrose: We in the Labour Party are delighted to be in a position to support this Bill which has been introduced by Deputy Leo Varadkar on behalf of Fine Gael. We compliment him and his colleagues on the Bill.

7 o’clock

The aim of the small claims court procedure is to provide an inexpensive, fast and easy method for consumers to resolve disputes, without the need to go into significant legal complexities. The small claims court also avoids the jargon-laden atmosphere involved in having legal people as part of the process. It is a lawyer-free zone and is a mediation service that avoids the adversarial aspects of matters and enables parties to reach a compromise without resort to litigation. It also avoids the significant costs associated with that. Therefore, the small claims court system is very important, particularly for small businesses that wish to recover small amounts. The extension of jurisdiction of the court to cover amounts up to €3,000 is sensible. The previous limit was set some time ago.

I agree the amount should be examined. We do not want to throw out the baby with the bathwater. When something works well, we should try to ensure it is refined and does not expand into something that will overrun the current system that works so efficiently and effectively. If this Bill is enacted, the system will need additional resources, because it is difficult to see how a District Court clerk would be in a position to facilitate all of the likely or potential claims that might be encompassed by the legislation.

Small businesses are very important in the context of our economy. Therefore, we must pay them particular attention and focus on their needs in order to ensure their survival. The Labour Party has put forward a number of proposals in this regard, particularly on the issue of prompt payments. I am glad the Minister of State, Deputy Calleary, has focused on that and has suggested reducing the time period for payments to within 15 days.

[500]Another area of importance is access to public contracts for SMEs. They have lost out in this area. Deputy Calleary was right to refer to the Irish Print & Packaging Forum. It was a scandal the people in the situation in question were deprived of participation. A significant number of jobs were lost as a result.

Many small businesses that employ between six and eight people find the going very difficult. Some of their difficulties may be caused not just as a result of the current situation but because they may have got into arrears with the Revenue Commissioners. Contact should be made with the chairperson of the Revenue Commissioners in this regard. I know the Revenue Commissioners have always extended the hand of friendship and empathy, as long as people do not deny they owe moneys such as PAYE, PRSI and VAT. However, where a sum such as €25,000 is owed, the Revenue Commissioners should set in place an arrangement or scheme for the discharge of that payment. The heavy hand should not come down and force businesses to close.

I know of a business that owes such a sum and believes it should be given the opportunity to pay a certain sum a month rather than close it down. If such a business is closed down, we will have a further six people out of work, draining €20,000 a year, the equivalent of €120,000 net from the Exchequer. It would be better to allow such businesses continue in operation. The man who owns that business told me that at one time he was receiving between 16 and 18 inquiries a week, but now he is lucky if he gets ten a month and he is competing with a far bigger pool. However, he is trying to keep the business operating.

The Revenue is lenient when people come forward and I am aware it is independent in its function. However, it is important the Minister ensures that small businesses are given the opportunity to survive and are not closed down. Closing them down just passes the problem further down the line with the result that the Exchequer and, ultimately, the people must pay more. It is important that this is considered. As they say in my part of the country, a bit of a loaf is better than no bread. It is better for Revenue to keep getting small payments to discharge the bill and to keep a business up and running. This is very important.

The Minister of State is well aware that we did a tour of the commuter belts where we found that small businesses are very important. There are approximately 250,000 small businesses throughout the State creating 750,000 jobs. However, people seem to have forgotten that we are losing 4,000 retail jobs a month. One of the reasons for this is the increase in VAT. I, along with Deputies Morgan and Varadkar, did a tour to the North where we saw the impact of this. The extent of the differential is 6.5%, which makes it virtually impossible for our businesses to compete. I acknowledge VAT here increased by only 0.5%, but this had a psychological impact, particularly when Britain reduced its VAT rate by 2%. Therefore, there is a difference of 2.5% in net terms on 6.5%.

The VAT increase was a foolish move. I know money was needed. I am not a fool and am aware the Government is trying to improve the situation and get money into the Exchequer. However, the impact of the change is that we have had an outflow of money from the Exchequer. Jobs are being lost as a result. Between 4,000 to 4,500 retail jobs are being lost every month. These are not the highest paying jobs in the country, but they are jobs that sustain rural communities and enable people to live in these areas. It is important that whatever the Government does, it considers the situation in a business-friendly way. It must business-proof the impact of every decision it makes from now on.

Many businesses that are members of the Small Firms Association or ISME have had varied experiences in their dealings with the banks. I want to lay the situation on the line for the banks. They have been bailed out with billions of euro of taxpayers’ money that has gone to recapitalise them. Ordinary people wonder where this money has gone. They wonder whether [501]the banks are looking after the interests of their shareholders first or trying to make up for their irresponsible lending. At a time when they should be lending support to existing and new businesses, they are not willing to do so. All the signs are, notwithstanding their assurances to the contrary, that they are unwilling to lend to businesses. It seems they are hoarding the capital in order to deal with the crisis caused by their irresponsible lending.

The money given to the banks is not filtering down to small businesses that are crucial to the economic well-being of the country, particularly businesses in rural Ireland. Many entrepreneurs and innovators throughout the country have been stymied and cannot get businesses up an running. The Labour Party suggests that the Anglo Irish Bank should be used for this purpose. It is a national bank and we own it. Let it invest some of the money in small businesses and let it start to do something. We must ensure the money filters down to the people in need. There was a €30 billion fund, but the Minister of State mentioned that approximately €300 million was available. We need more than that to get small businesses off the ground. Appropriate and worthwhile start-up grants should be made available to unemployed people who wish to start up new businesses. The county enterprise boards do not meet this need. I acknowledge the Minister of State’s expertise in the area of grants.

We need to go back to the old system of trying to help people. What is wrong with diverting social welfare money into this area? A person with an idea for a business should have his or her grant topped up with a social welfare payment. That payment would then subsidise a job. No one wants to be unemployed. It is soul destroying. We no longer have the safety valve of emigration. People used emigrate to England or Australia and, sadly, never come back. Now we do not even have that safety valve.

Approximately €700 million is allocated to the national development plan. Some 40,000 children are languishing in prefabricated classrooms. The Department of Education and Science takes years to even approve a new school, much less build one. Why not prioritise school buildings? Thousands of workers could be employed on these projects. Contractors are vying to compete and would submit cheaper tenders. Schools could be built cheaply in the current climate. The Government can put billions of euro into banks. Why not put one billion into prioritising projects which are essential to the well-being of the country? I have no doubt the economy will recover and the sooner it does the better. It is in the national interest that it does. It is important that educational infrastructure be put in place to promote a quicker economic recovery.

Deputy Liz McManus: I welcome the Bill and the Government’s response to it. I congratulate Deputy Varadkar for progressing this issue. The proposal to increase to €3,000 the amount which can be claimed in the small claims court is eminently sensible.

The proposal to extend the court’s remit to include business debts may seem a small matter but, from a business point of view, it is significant. Earlier today, I spoke about this proposal to a local man who runs a medium sized business. It is a modest proposal to provide a simple mechanism for the recovery of small debts. Like the owner of many small and medium enterprises, this man is having difficulty getting payment from customers. I was surprised by the enthusiasm of his response when I explained what I would be talking about this evening. He said this change would transform his debt collection. He said the big stuff is not a problem. It goes to his solicitor and proceeds to the courts. However, defaulting by customers or other small businesses is having a serious impact on the viability of firms and a measure like this would make a practical and real difference.

The current position of small and medium sized enterprises is perilous. When a cheque bounces, as it does these days all too frequently, it is often the result of a chain reaction as debtors default or cheques bounce further up the line and a series of businesses can be affected.

[502]Bouncing cheques is only one of a number of negative factors which seriously impact on these companies. There is an onus to respond politically to this crisis which is affecting small businesses. When banks are in trouble the Government responds and billions of taxpayers’ euro are spent to shore them up. Yet simple inexpensive measures like this one relating to the small claims court can and should be taken speedily. I hope the Minister, in seeking time, will not delay this unduly.

There are approximately 250,000 small enterprises, employing up to 800,000 people. If even half of those companies employed one extra person we would not have the current unemployment problem. Instead, we see profits shrinking, people losing confidence, businesses closing and jobs being lost in manufacturing and service industries across the board as well as in construction.

Extending the remit of the small claims court will help but the Government needs to do much more. Last week, the Labour Party launched a policy document arguing the case for getting credit flowing to business. We have already proposed that European Investment Bank funds could be drawn down through a straight vehicle for engaging lending to businesses. Similarly, consideration should be given to a working capital guarantee scheme for viable businesses.

The contrast between the experience of small and medium enterprises and Anglo Irish Bank is startling. Some €4 billion of taxpayers’ money is being injected into a bank which has not given out a loan since September 2008, and more billions are sought. Meanwhile, small companies desperate for capital are being refused credit. This morning, Deputy Eamon Gilmore sought information from the Taoiseach about loans which had been taken out by senior staff in Anglo Irish Bank. His were simple questions. Who had been given the loans and how much were they for? The questions were not answered. The Taoiseach either did not know or was not telling. Anglo Irish is a State-owned bank. The public have a right to these answers. It is another indication that the Government, despite the recent elections, is not only incompetent but is in denial. Meanwhile, businesses in the private sector struggle to keep their doors open.

The long-standing issue of late payments has been mentioned many times this evening. The Irish Small and Medium Enterprises Association, ISME, did an impressive piece of research in April showing that businesses wait 69 days, on average, for payment. Only one in five companies are paid within 30 days, 33% experience delays of 90 days and 10% wait more than 120 days for payment. I appreciate that there has been a response from the Government, particularly because the State is by far the worst offender. I cite the example of the HSE as a particularly bad offender. While Government commitments are very welcome, we need hard analysis to see if the practice is living up to the promise.

This raises the issue of the State’s approach to small and medium enterprises at national and local level. The crass heavy-handed approach of local authorities in relation to commercial rates and water charges cannot continue. In my own county of Wicklow, 446 businesses are under threat of disconnection of their water supply. Their supplies are threatened because they have not paid their water charges. County Wicklow Chamber of Commerce, the umbrella organisation of all chambers of commerce in the county, has advised its members not to pay, “until such time as the Council has furnished full particulars about the charges and the charge basis has been reviewed in detail”. Every day, 550 million litres of water are taken for free from County Wicklow to Dublin, where Dublin City Council charges businesses €1.50 per unit. This leads to a loss of income to Wicklow of €250 million per year. This is a long-standing problem to which I do not expect the Minister to find a resolution. However, it is an issue.

[503]There is also a lack of transparency with regard to water charges. At the very least, people are entitled to know what they are paying for. The request by businesses in Wicklow for transparency is perfectly reasonable. I am not the only one who thinks this. In response to a question about water charges in the past few days, the Minister of State at the Department of Foreign Affairs, Deputy Dick Roche, said Wicklow County Council, “...cannot say where levies are being used and cannot say how much is being collected. Specifically relating to water charges, there is no excuse for haphazard operation. There is also no excuse for attempting to ladle additional costs onto businesses for water charges. The charges should be neutral, just cover cost and not be a profit centre”. The Minister of State has a point. Local authorities are levying businesses because their funding tap has been turned off by the Government. That will place an onerous burden on struggling businesses. I hope the acceptance by the Government of these issues, specifically the proposal in the Bill, indicates that it is getting the message that we cannot continue with a business as usual approach because business is not as usual.

Deputy Arthur Morgan: I thank Deputies Penrose and McManus and the Labour Party for sharing time and welcome the opportunity to discuss the Bill.

While I have many policy differences with the Fine Gael Party and Deputy Varadkar, I am pleased to note we do not differ on the legislation before us. My father used to say business was a great vehicle for binding people together and so it has transpired this evening, for the purpose of this Bill in any event.

I also welcome what appears to be a change of heart on the part of the Government insofar as it appears to have accepted the general intent of the Bill. While I do not wish to pour water on that or continue with the debate of the past two days, I wonder if the Government will be in office in six months and, therefore, in a position to take the Bill. I hope whichever Government is in place at that time will allow the House an opportunity to debate the legislation and address the issues it raises.

I also hope it will not adopt the attitude the current Government takes to amendments tabled by Opposition Deputies. On many occasions, Fine Gael, the Labour Party and Sinn Féin have offered commendable amendments which the Government has refused to accept, perhaps because it believes a Deputy from this side will suddenly appear at a Cabinet meeting. Although I do not believe that is the case, I cannot explain the reason Opposition amendments are automatically rejected. This is bad practice and a fundamental flaw in Government policy. I do not have sufficient experience to know whether this mistaken policy was adopted by previous Governments. Notwithstanding these reservations, the Government position on this Bill marks a welcome change to practice.

Bad debts cause a significant chain reaction. If business A is not being paid by business B, other companies supplying the former will have their systems clogged up by the failure of the latter to pay its debt. As noted earlier, if business A is a large company, recovering the debt is a relatively task because the matter will be placed in the hands of the company’s legal department or team of solicitors which will sort out the matter in the time the courts require to do so. Small businesses and entrepreneurs, however, do not have the luxury of engaging large legal teams at significant cost to deal with these matters. The Bill is, therefore, particularly welcome in that regard.

A further consequence of not having the goods or services one provides paid for on time is that one incurs expensive overdraft charges. In the current climate, many businesses would welcome access to overdraft facilities, even with high charges, because they are being strangled. I have no doubt the telephones in every Deputy’s constituency office are hopping as people facing this problem seek to contact them. I hope the legislation, when finally enacted, will help to resolve this problem. The Bill offers the prospect that a cost-effective measure will be intro[504]duced providing companies with a speedy process of accessing the courts and having debts dealt with quickly and efficiently.

Many contributors acknowledged that small and medium size businesses have always been at the heart of the economy. That is not to say that foreign direct investors are not welcome. While I acknowledge the significant role played by that sector in building the economy over decades, most of these companies have either moved or are in the process of moving to the Far East or Middle East where labour and other costs are significantly lower. Ireland will never be able to match costs in those regions and for this reason must concentrate on assisting small and medium size enterprises. This legislation marks a significant step in that direction.

I am disappointed the Government did not use more of the revenue from the boom years to further assist small and medium size enterprises, specifically in helping them upskill management and enhance export capacity. Our small and medium size sector does not have a culture of research and development. This must change and we must find mechanisms of bringing entrepreneurs and managers on board to ensure they engage in research and development practices and recognise the necessity of patenting and working closely with third level institutions.

Credit terms are a key area for small and medium size enterprises. A business supplying one of the major retail chains may experience problems because the retailer resorts to any excuse not to pay the supplier. In such circumstances, the period in which moneys are owed increases from 30 days to 60 days to 120 days and so forth. Deputies will be aware of many such cases. If the supplier complains or brings the matter to a point the retailer regards as unacceptable, the latter will simply stop taking the supplier’s goods or services. The businesses of such suppliers invariably becomes dependent on large customers within a short period.

An independent office needs to be established to address this issue. The legislation addresses a slightly different problem. We should establish an independent office with a small staff of perhaps a couple of accountants and solicitors with some clerical back-up. A business facing the circumstances I have described could bring the case to the office and have it stood up in a short period of perhaps one hour. At that point, the independent office could examine the books of the large supermarket chain or other purchaser. By examining the files pertaining to the complainant and other suppliers, it could ensure the complainant is not readily identifiable and a level of anonymity is maintained. This is necessary because the more dominant the large supermarkets become, the more small businesses depend on them and the greater their vulnerability is to being abused by them. We need to be mindful of this problem. I do not advocate establishing another large agency with all sorts of bells and whistles. A small, tight and imaginative structure could be built to provide genuine protection to businesses which are being ripped off — that is not too strong a term — by large companies.

While I acknowledge the inefficiencies of the job creation agencies, I do not wish to be hard on them because circumstances have changed and they, too, will have to change. Deputy Penrose referred to the county enterprise boards, the agencies charged with dealing with businesses with fewer than ten employees. The maximum grants these bodies can provide are irrelevant in business terms and the criteria for approving such grants need to be overhauled, as the Minister will be acutely aware from debate and discussions she has had in the Joint Committee on Enterprise, Trade and Employment. Politics have never entered into the deliberation of the joint committee. While it has good and lively debates and frank and open discussions, they have always been focused on trying to achieve what is best for enterprise and business and long may that practice continue.

[505]Reform measures are also required in FÁS, which I do not propose to attack for the failings highlighted all too often recently. The agency requires a significant overhaul. As with nurses in the health service, the recruitment ban has caught frontline FÁS staff who may not be recruited without the approval of the Department of Finance. FÁS is unable to quickly replace some of its trainers, including those who take maternity leave or retire, and this has created a backlog in some FÁS offices. That is not a criticism of the Minister of State, Deputy Calleary, because I appreciate that he is not long in the job but I raise the issue with him in the hope that it can be resolved because the knock-on effect, the bottleneck which that creates in the FÁS offices when we are trying to get people in to be trained and upskilled, is very significant. I hope that a mechanism can be found to alleviate that bottleneck and to resolve that issue as quickly as possible.

Credit is an integral part of businesses. There is a practice developing that I have noticed in some sectors. Perhaps I will explain it to the Minister of State best by using the example of the food service sector, wherein a struggling business moves from its vegetable supplier to a new vegetable supplier and leaves the old one carrying the can of €3,000 to €10,000 or whatever the sum might be. The business runs up a new debt with its new supplier and after a relatively short period of time, moves to yet another supplier. This legislation, were it in place, would eliminate such carry on because there would be a chain reaction of businesses folding, of significant bad debt, and of some businesses not being able to simply write it off and being in mortal trouble.

I accept that there are some issues with the Bill. There are certainly some amendments I would like to see appended to it. That is by the by and we can deal with them on Committee Stage as they are not significant. I hope that the court rules can be amended, as was stated earlier, to save a major piece of legislation having to be brought in to facilitate the implementation of this legislation. I welcome the opportunity to discuss the Bill here this evening and I look forward to it being discussed in six months, whether by this or another Government.

Deputy M. J. Nolan: I wish to share my time.

An Leas-Cheann Comhairle: I gather the Deputy is sharing time with Deputies Collins, Conlon, Scanlon, Mattie McGrath and perhaps Kirk.

Deputy M. J. Nolan: I welcome this legislation and commend the Government on agreeing to it. I would hope that it can be fine tuned by the time we get agreement and I commend Deputy Varadkar on bringing it forward.

We all are well aware that in this difficult economic climate all businesses are suffering, and the small indigenous companies in Ireland are suffering more than others. The large foreign direct investment companies which come here have large resources and facilities which smaller Irish companies do not have. In the past year, in particular, Irish companies have been caught by the twin effects of the downturn in business and the compounding shortfall of available credit from the banks.

I am well aware of companies in my constituency which are stretched to the limit to keep going and to keep their workers employed. In that regard, it is good that where the Revenue Commissioners — which I will not state have adopted a less hard line attitude on the collection of revenue — see a genuine effort being made by companies to fulfil their obligations on VAT, PAYE, PRSI, etc., they are making an effort to accommodate such companies in ensuring that their business and employment continues.

Banks and financial institutions are being more careful in assessing companies when they apply for credit and this is creating a knock-on effect where suppliers, in effect, are being used [506]as bankers by some of their customers. Clearly, this cannot continue. Some well established Irish companies which have a track record of successful business and which have been profitable for a number of years have built up reserves. I have been speaking to a number of medium-sized businesses which find they are taking on the role of bankers and have more credit extended than ever before. An extension of the small claims court would be welcome for companies which have a large number of outstanding debts, the pursuit of which in the Circuit Courts would not be worth their while due to the costs involved and the impossibility of securing anything like what is due to them. Such companies would look to what is proposed in this piece of legislation and avail of that. It would ensure that companies about which previous speakers have spoken who strive to get the longest possible credit terms would think twice about going down that particular road and that we would have a stronger, leaner and, I suppose, meaner business sector, particularly in the small and medium enterprise sector.

The problem is not unique to Ireland. The UK and France, in particular, have experienced this problem over the years. By bringing in legislation those countries ensured the protection of their small and medium enterprises.

I wish the Minister of State, Deputy Calleary, and Deputy Varadkar every success in pushing this piece of legislation through. I would not like to see it delayed too long because there are companies which will not survive if this is extended too far into the future.

Deputy Niall Collins: At the outset, I congratulate the new Members, Deputies O’Sullivan and Lee, on their election to Dáil Éireann and wish them all the best in the time they serve their people here.

Like the previous speakers, I welcome the publication of this Bill. Certainly, I am glad that there seems to be cross-party consensus in advancing the intent of expanding the remit of the Small Claims Court to the area of debt collection. I suppose I would have a minor concern at the outset that the existing system would not become overly complex. It is my firm view that the existing small claims procedure is user-friendly and quite simple, where any citizen can complete a simple one-page form, lodge €15 and be into the system where his or her complaint can be dealt with in a simple and efficient manner. While we are discussing small and medium business here tonight, we all are obviously aware of the many onerous regulations and much red tape that has been inflicted on small and medium business and we should at all times strive to minimise the effects of such regulation. Indeed, as long as I have been a public representative, I have actively advised people to avail of the good offices of the small claims registrar in the Limerick courts and I thank the staff who have dealt with those issues in an effective manner.

On small and medium enterprise in general, as in other areas of the country small businesses form the backbone of employment in many communities right across my constituency in County Limerick, in towns such as Newcastlewest, Kilmallock, Bruff, Rathkeale, Cappamore and Murroe. Many such enterprises derive much of their business from the agri-related sectors. Small and medium enterprise goes hand in hand with the agricultural sector and we must continue to promote, foster and protect it as much as possible.

In saying that, I am also conscious of the recently published live register figures. This is a worry to all of us in my constituency and, indeed, is a human tragedy for the many people who are losing their jobs. I look forward to the imminent publication of the interim report of the task force, which is chaired by Mr. Denis Brosnan, where we will look at the area of job promotion and job protection in the mid-west. There are many people who, in the fall-out from the recent Dell redundancies, are certainly awaiting that report with the expectation that something positive will come out of it. I ask that the State agencies in the mid-west redouble [507]their efforts to try to attract more foreign direct investment to the area. Askeaton in County Limerick has a fine, fully serviced business park of approximately 100 acres. It is waiting for a start-up enterprise that will provide many badly needed jobs.

Regarding small and medium-sized enterprises, SMEs, we have tackled other issues. For example, we dealt with the problematic cost of insurance effectively through the Personal Injuries Assessment Board, PIAB. However, we must consider the many other issues surrounding credit. We all know that the Government is pursuing the establishment of NAMA, but I am concerned that NAMA is being kicked around like a political football. Business needs confidence, but it sees the Dáil bickering over NAMA. We must move beyond that and realise that NAMA is the only show in town. This side of the House is being accused of bailing out the bankers and developers, but I could say that the other side, which opposes NAMA, comprises the big developers, namely, the Labour and Fine Gael parties. Since bickering gets us nowhere, we need to move beyond it.

The greatest issue is competitiveness. There are a number of strategies, including the smart and green economies to reduce energy costs. Thankfully, those costs have reduced and I hope the fall will continue. I was heartened by the Fianna Fáil Party’s local election manifesto in which we sought to freeze local authority rates for the next three years to assist small businesses. This aim is important, as are development levies. As we all know from our time serving on local authorities, the rate struck was the balancing figure in our budgets at the end of the year.

I acknowledge the recent statement by the Chairperson of the Revenue Commissioners to the effect that they are taking a pragmatic, reasonable and proactive approach to the collection of taxes. Doing so is right and necessary. While people and businesses must pay their fiduciary taxes, VAT, PAYE and corporation taxes, the Revenue Commissioners have responded responsibly and reasonably and have allowed businesses to adapt to their straitened cash flows.

Deputy Margaret Conlon: As this is my first opportunity to speak since the recent by-elections, I join my colleague, Deputy Collins, in welcoming Deputies Maureen O’Sullivan and Lee to the House. I wish them well as they represent and serve their constituents.

I welcome the opportunity to contribute this evening and thank Deputy Varadkar for tabling the Bill. In the past year, the country has witnessed the worst economic recession since 1929 and every business has felt its effects. As this is a difficult time for all businesses, they must be supported. Small and medium-sized businesses are indigenous industries and have been the lifeblood of the economy, providing much needed employment and boosting their local economies. My constituency is renowned for its indigenous industries.

However, such businesses have suffered many difficulties in recent times, including a decrease in sales and reduced incomes. Every day, they struggle to keep employees working. I salute their attempts to keep people in work. Many are still making a contribution to the economy. It is important that we, as a Government, continue to support them as they play their important role and face challenges. It is important that we do everything to ensure that they grow and maintain employment.

The economy will only turn the corner because of growth in the national economy, but it will not happen if we do not support our SMEs. They are facing challenges. As a Border Deputy, I must mention our exporters’ cross-Border problem posed by sterling. It is a considerable challenge for our small and medium-sized businesses.

Entrepreneurs face problems receiving payment for goods and services and other problems resulting from lack of credit and the availability of cash flow. Another serious problem is the loss of our competitive edge. During the good times, we became uncompetitive and will only [508]regain international competitiveness through cost reductions. Businesses must be proactive in this regard. They must get more for less. I agree with Deputy Nolan, who stated that businesses need to be leaner, meaner and keener. Some cost reductions are already occurring. I welcome the reduction in energy costs in particular.

The Government is happy to accept the Bill in principle and I would support the proposal of the Minister for Justice, Equality and Law Reform, Deputy Dermot Ahern, that it be deferred for a six-month period so as that it could be reviewed. In my role as a public representative, I have recommended the small claims procedure when constituents have come to my clinics looking for advice on redress. The procedure is consumer friendly and easy to use and consumers are happy to know that they do not need to engage the services of a solicitor. For many, this is a distinct advantage, as they might not otherwise be able to proceed with their claims. The other great advantage is that the claims are resolved in a speedy and efficient manner. It is important that we maintain this element.

I would not like to see a situation whereby businesses would use the procedure to pursue claims against individual consumers. In the current economic climate, I share the view of the Minister that it could make consumers more vulnerable. I would urge caution regarding large businesses creating a situation whereby they could use the procedure to pursue consumers or small businesses for relatively small debts. It is imperative that any widening of the procedure be targeted in an appropriate manner. Many small businesses are limited companies and have limited liabilities. Since they may be required to engage legal representation, the Minister is right to take advice in this regard.

We know that economic recovery will not occur if we do not stabilise and revitalise the banking system. The steps introduced and the actions that we will continue to take are necessary to repair and revitalise our financial system, which will aid economic recovery. Our banks must continue to lend money to assist our SMEs, but they cannot lend if they are not in a position to attract funds and they cannot survive if they do not have access to funds. Our economy is flexible and resilient and is adjusting to the new economic circumstances. We must continue to work hard and redouble our efforts to assist the small and medium-sized businesses so that they continue to play an important role in the future. They need credit to continue trading. The events of recent months have resulted in cash flow problems. Banks must continue to provide credit and I urge businesses that have been afraid to approach them to do so now.

I accept the Bill in principle. The Government is in broad agreement with Deputy Varadkar’s proposal and I thank him for tabling it before the House. I ask that he appreciate the Government’s genuine concerns when it proposes that the reading be deferred for a six-month period to provide an opportunity to consider the issue in detail. The current system is working well and we need to ensure that we do not put it at risk. I am sure that the Minister will conduct the necessary analysis and review quickly to ensure a Second Reading in six months' time.

Deputy Eamon Scanlon: I welcome the opportunity to speak on this Bill. There is no doubt that it is a tough time to be in business. I am acutely aware that the current economic difficulties are having a profound effect on businesses, particularly small businesses. The importance of these companies to the economy ought not to be underestimated. They are key to maintaining jobs and improving growth as we emerge from the global financial crisis. By supporting small and medium-sized businesses, we are supporting the country’s economic recovery.

One of the most pressing issues facing small businesses is a lack of access to credit and cash flow. This has made it very difficult to engage in the most basic of trading procedures, namely, paying bills and receiving payment for goods and services. The Government is well aware of the range of difficulties being faced by SMEs. In matters relating to payment, it has led by [509]example with the introduction of measures to ensure prompt payments. The Tánaiste and Minister for Enterprise, Trade and Employment, Deputy Mary Coughlan, recently announced a measure that will see Departments paying business suppliers within 15 days instead of 30 days. In addition, the enterprise stabilisation fund will provide €100 million over the next two years for SMEs.

I welcome any move that highlights the value of small and medium-sized businesses to the economy.

While I accept the spirit of the Bill, I nonetheless support the proposal by the Department of Justice, Equality and Law Reform to defer the reading for six months. This will allow the Department, in consultation with the Department of Enterprise, Trade and Employment, to complete a review of the situation. It will provide a detailed impact assessment of the proposed expansion and it is envisaged that suitable proposals will be brought forward in the autumn.

Although I accept the objectives of the Bill in principle, I have a number of concerns relating to the details. First and foremost, it must be remembered that the raison d’être of the small claims procedure is to provide a pro-consumer mechanism to resolve minor claims, in a relatively speedy and efficient way, without the need for legal representation. The way in which the Bill is currently drafted could have a negative impact on individual and small businesses. Essentially, I am concerned that businesses would use this procedure to pursue small claims against individual consumers. The last thing we need in these economic circumstances is to exacerbate the vulnerable position of consumers.

While I understand the benefits of businesses taking certain small claims, for example when difficulties arise in securing payment for good and services on credit terms, the procedure ought to be restricted to small businesses. I would not like to see a situation arising whereby a large scale business such as a bank could use the small claims procedure to pursue consumers or small businesses for relatively small debts.

The legalities of expanding the small claims procedure to include small businesses remain to be clarified. The existing mechanism was introduced by amending the rules of the District Court. It is not yet clear whether the small claims mechanism can be changed simply by amending the rules of the District Court or whether primary legislation will be required.

Furthermore, the majority of small businesses are limited liability companies and it appears Irish case law may require companies such as these to engage legal representation. It would be highly undesirable to overly complicate the small claims procedure. Therefore, I welcome the fact that the Minister for Justice, Equality and Law Reform, Deputy Ahern, will seek legal advice on the matter from the Attorney General.

Regarding the threshold of claims, the current limit is €2,000. These limits are kept under review by the Department of Justice, Equality and Law Reform. It should be noted that it, in consultation with the Department of Enterprise, Trade and Employment, is currently reviewing this threshold.

Before I came into the Chamber this evening, I spoke to a constituent who runs a small business and employs four people. His business is not currently making money, but he is surviving. His biggest worries at the moment are rates. He was able to pay half his rates in 2008, but finds he is now unable to pay the other half. His rate bill is some €9,000 per year. A number of Deputies mentioned this issue and I ask the Minister to request that local authorities take a pragmatic approach to small business employing people because they are finding it difficult to make such payments. Everybody likes to pay their bills. The people to whom I refer want to pay their bills but unfortunately, they have to decide whether to keep people working or pay rates or water charges, which is another serious issue.

[510]I am very conscious of the importance of small and medium sized businesses to the economy. I recognise the need to support them in their efforts to maintain jobs. Given the absolute necessity for businesses to access credit and cash flow, I accept the objectives of the Bill in principle, but propose the reading of it be deferred for a number of months.

Deputy Mattie McGrath: The Government is very conscious that businesses in Ireland and, in particular, small businesses have been significantly affected by the very difficult economic situation the country is currently experiencing. Equally, this Government is very much aware that small and medium sized businesses are key to maintaining employment in the immediate future and to growing the national economy as we move through the current global financial crisis.

It is clear small businesses have faced difficulties in terms of the availability of credit and cash flow, and this has manifested itself in terms of problems being faced in making and receiving payment for goods and services. As a result, the Government has taken specific measures to assist small businesses and the enterprise sector to ensure access to credit. The Minister for Justice, Equality and Law Reform, Deputy Ahern, therefore accepts the objectives of the Bill in principle, but proposes the reading be deferred for a period of six months to ensure his Department, in consultation with the Department of Enterprise, Trade and Employment, can complete a review, including a detailed impact assessment of the proposed expansion, with a view to bringing forward suitable proposals in the autumn.

There are a number of concerns about the details of the Bill, as drafted. It could have a number of negative consequences for individual consumers and small businesses alike. The intent of the small claims procedure has always been one of a pro-consumer mechanism to resolve minor claims in a relatively speedy and efficient way, without the need for legal representation. This is very important and we must maintain it at all times.

The Government is anxious to maintain the pro-consumer aspects of the procedure and would not wish to see it being used by businesses to pursue small claims against individual consumers. Such a development could make consumers even more vulnerable in the current economic circumstances.

There is merit in allowing for certain small claims by one business against another business. This is particularly the case when many small businesses have encountered difficulty in securing payment for goods and services provided on credit terms. However, it might be appropriate to restrict the measure to small businesses. It would, for example, be totally inappropriate to create a situation whereby large-scale businesses, such as utility companies or banks, could use the small claims procedure to pursue consumers or small businesses for relatively small debts.

The Minister for Justice, Equality and Law Reform, Deputy Ahern, will consult the Tánaiste and Attorney General in regard to the appropriate mechanisms to ensure that widening the scope of the small claims procedure can be targeted appropriately. I compliment the staff of the small claims section in south Tipperary for the work they have done in resolving many disputes.

Subject to legal advices, primary legislation may not be necessary. The existing small claims procedure was introduced by amending the rules of the District Court. It remains to be clarified whether an amendment to the rules will be sufficient to allow for the inclusion of small businesses within the small claims procedure. The majority of small businesses are limited liability companies. It appears Irish case law may require limited liability companies to engage legal representation in domestic proceedings. Detailed legal advice is required on this matter.

Failure to attend to this consideration could overly complicate the small claims procedure and we must avoid that at all costs, and could result in negligible savings to the small companies [511]concerned. The Minister for Justice, Equality and Law Reform, Deputy Ahern, will seek the advice of the Attorney General to ensure legal representation will not be required for small firms using any extended small claims procedures.

As we all know, small businesses in Ireland are the backbone of our business community. In these very challenging times, we have seen many large companies pull out of Ireland, blaming a lack of competitiveness. We know small businesses are providing jobs and need our support. I hope the Minister and his officials do not delay the difficult examination of the proposed Bill which they must do, so it can come before the House in early autumn.

Many small business will disappear if we do not give them the support they need and ensure our banking system provides them with the lifeblood of their business and livelihoods, which is credit. I condemn the banks, because they are not doing that and are not meeting the needs of small businesses in rural Ireland. By not doing so, they are not allowing businesses to expand or continue at their current level. In many cases, businesses are being forced to shed staff, which is bad for all areas, be they rural towns, villages or wherever. The sooner the Minister can comply with the different measures and introduce the Bill the House, the better. I commend it.

Deputy Damien English: I wish to share time with Deputies Connaughton, Feighan, Perry, McCormack, McEntee and Bannon.

An Leas-Cheann Comhairle: Is that agreed? Agreed.

Deputy Damien English: I welcome this Bill. It is very simple, but could be very useful. I am disappointed the Government does not seem to get it. The issue is that businesses, especially small businesses, are under pressure this year. We have spoken about this issue numerous times and I am happy the Minister of State, Deputy Kelleher, gets it, but I am not convinced those around him do so.

Deputy after Deputy on the other side of the House has come in here tonight and congratulated us on the Bill, said it is great and that it is needed, but six months are needed to fix it. It will not take six months to re-write the Bill or make changes to the parts the Government is not happy with. It should be agreed on tonight. The changes could be made, a telephone call could be made to one of my colleagues — as often happens — and we could fix and adjust it. We have seen legislation written in a day. The Minister of State should let small businesses know he wants to help them. They have serious cash problems. For some companies, €2,000 or €3,000 could pay this week’s wage bill. That is the way it is. From week to week businesses are trying to scrape together a few euro to pay bills and their employees and to keep the show on the road. That is how tight things are, but there does not seem to be any acknowledgement of that from the Government side. The enactment of the Bill is one small development that could make a difference to a few businesses.

8 o’clock

On the night the budget was introduced I spoke at length about the National Asset Management Agency, NAMA. I said that night, irrespective of whether one agrees with NAMA, it would take too long to be of benefit to businesses this year. The banks are not giving out money. Overdrafts, credit facilities and short-term loans are all tools of business, without which they will fail. There will be many more failed businesses. I am afraid that in six months’ time we will have 500,000, not 400,000, unemployed. If the Government does not take serious action it will not take until next year to reach that figure, as some have predicted. We will reach 500,000 unemployed this year. The situation cannot continue. Money must be freed up. Businesses that have been 20 or 30 years in operation are being told by their banks that they cannot have an overdraft, that it is not worth them having an overdraft or they are charged a significant amount for a short-term loan. That cannot continue. It is not on. We are bailing out the banks and giving them what they need. We have [512]accepted that something has to be done but we should demand that they look after small businesses. It is as simple as that.

The Bill is a small attempt by this side of the House to do something constructive, to send a message to businesses that we appreciate what they do for us and the number of people they employ and that we are willing to help them. The Bill is being put to one side just because it came from Fine Gael. The Bill must be examined and tweaked and turned and it might not come back to the House for a year, like all the other Bills that we have been promised in six months' time.

The Government is guilty of not paying its debts. I tabled parliamentary questions last year and the previous year to find out the number of days it takes each Department to pay its bills. I was impressed with the replies, if they can be believed. I found out that in theory each Department tries to pay its bills in ten days, 12 days or 18 days but that does not happen in reality because State agencies and other bodies in particular consistently find reasons for not paying. They introduce bits of red tape and find reasons to ask for more information and delay making payments, even when it comes to paying sports grants. Payments are delayed as much as possible rather than simply handing over the cash.

People have come to my office in the past year who are owed money by Iarnród Éireann for work carried out more than two and a half years ago, some of them even longer. When I tried to raise the matter in the House the Minister would not take the question. The Ceann Comhairle or somebody else blocked it. I got no response when I wrote to Iarnród Éireann. It is not good enough for the State to owe people hundreds of thousands of euro for work they have done, just because one or two people got mixed up or moved to a different Department, or because a question mark was put over something. That cannot continue. Those businesses employ people and they have bills to pay. It is not good enough for Ministers to reply to the effect that Departments pay everything in ten or 11 days when they know that is not the case. It is also not good enough for Ministers not to answer questions. If I were a Minister and I thought anybody under my watch was not paying his or her bills I would have serious questions to ask and I would not stand for it. It should not be allowed. It is not fair to delay payment, especially given the current situation.

That is bad enough but then there are the significant delays incurred by the Department of Enterprise, Trade and Employment in refunding redundancies. That should not be tolerated. It is not fair. That approach is crippling businesses. It will lead to more businesses closing and more job losses, yet we have inaction. We heard Members speak about how brilliant the Government was to introduce a plan last July and then to have the budget. Those problems started in January and February 2008, a year and a half ago, yet we still have not taken action.

The Minister of State, Deputy Kelleher, was present when I spoke in debates about the need for labour activation schemes and to help businesses with cashflow. We need to change the way we do our business when it comes to funding enterprise. The problems emerged as early as last February yet nothing has changed. We still have problem after problem. Businesses have told me they cannot pay their wages for one of three reasons. The first is because they are owed money by a State body. The second is because they have not received back the redundancy money they have paid out already to their staff. The third is because they cannot get credit.

There are many areas in Fine Gael’s plan for business on which we could work together with the Government to bring about change. People who have money do not have confidence in the system. We have one of the highest level of personal savings in Europe, yet people are afraid to spend their money because they do not have confidence in where we are going. They [513]do not believe the Government has a two-year or three-year plan because it has nothing to show them. We must restore confidence and get that money moving. If we do not, we will have more businesses failing and more unemployment. That is preventable but we must devise a plan and take action, not just talk about doing things in six months’ time. That is not good enough any more.

Deputy Paul Connaughton: I congratulate Deputy Varadkar on bringing the Bill to the House. It is a pity we do not have more time to discuss it, because any one of the 18 points Fine Gael has outlined to ensure the small business fraternity gets a fair crack of the whip is worthwhile and together they make a great package. It will be clear to people that Fine Gael is the only pro-enterprise party from whom they will get any help.

The Minister of State, Deputy Kelleher, knows better than most that the business environment, especially for small businesses, is a jungle. There was never anything like it for the past 50 years. One employer who has 15 people working for him told me that Fridays come very often in his case. He was referring to the fact that he has to pay his staff every week. He said one of the things he noticed is that, while heretofore the strategy of the company was to sell product and get salesmen out into the field, the most important employee in his company now is the person who collects the debts. No other person on the payroll is more important than that individual.

I am disappointed with the Government that it has postponed further discussion of the Bill. That is a stalling exercise. Why would it take the Attorney General and whoever else is involved six months to sort out legal anomalies for something that is so important to both employers and employees of small businesses at a time when we have 400,000 people out of work? Why would one want to postpone a measure for six months that might have a positive effect on keeping even five people in a job? I cannot understand why the Government is doing that.

In the context of balanced regional development, small industry is the only way in which industry will get a hold in the regions. We must get vibrant companies back up and running again. That will be difficult to achieve because the IDA’s approach is to focus on large firms. We know there is a critical mass and that certain companies must be located in large cities. Whatever hope places like Ballinasloe, Tuam, Loughrea, Gort and Mountbellew have, it will not be based on a reliance on large firms. We must ensure we allow small businesses every chance to thrive and beat all the bureaucratic traps that are put in their way.

I beg the Minister of State to ask the Revenue Commissioners, sheriffs and everybody else that is involved to show compassion. I accept they are not doing too badly. I am aware of a firm in the west that employs 26 people. It ran into trouble only because of the recession. It is possible to retain those 26 jobs this year and next year. It is important that some of the moneys due to the Revenue Commissioners could be paid in instalments to allow the company to work its way out of trouble. If the company is wound up the 26 workers will be finished and the Revenue Commissioners will get next to nothing. Why should the two parties not work out a detailed plan of action to allow the company to work its way out of its difficulties? I urge the Minister of State to bring back that suggestion to the Revenue Commissioners.

Deputy Frank Feighan: The situation is in crisis and the Government is not doing enough to resolve it. I commend Deputy Varadkar on bringing this important Bill to the House.

I come from a business background. My business is 100 years old this year. My mother ran that business for 65 years and I ran it before getting involved in politics. It is a successful business, a newsagents with lottery facilities, employing at one stage approximately 15 people. It now employs three full-time and four or five part-time staff. Two of the full-time employees have worked for me, one for 37 years and the other for 27 years. They have been loyal and have worked extremely hard. I am trying my best to repay that loyalty by keeping the shop open. I keep it open not just to make money, but because if it folds three people will have to [514]join the dole queues. The business, which has been in operation for 100 years and, to which I have a loyalty, will not survive.

I do not believe the Government knows what is happening. It is proposing to stall this major initiative for six months. This is a crisis that requires immediate action. I have had to pay off newspaper companies and to plead with cigarette companies to maintain the flow of cigarettes into the shop. I had to do a deal with the Revenue Commissioners to ensure the shop remained open. I am fortunate in that I am well paid as a Member of this House. Not too many businesses are in that position. This crisis must be addressed immediately or small and medium-sized enterprises will go to the wall.

Businesses have been good for this country. They have paid their taxes and kept small towns open. The Government is showing scant regard for the loyalty they have given. This proposal must be accepted immediately if we are not to lose more businesses, resulting in 100,000 more people joining the dole queues. The Government has bailed out the banks and the banks have put the boot into businesses. I am trying to obtain credit for a business that has been open for 100 years. I am in a better position than most.

The banks are not open for business with existing businesses. They are using the mantra that they will lend to new businesses. New businesses will not come on stream at this time. We need to protect existing businesses. There are many entrepreneurs out there eagerly awaiting what will happen here tonight. The Government, in not accepting this Bill, is giving the two fingers to businesses, the staff of those businesses and to small towns in our community. I am asking the Minister of State to ensure that action is taken to address this issue before the summer. I know the Minister of State is working extremely hard. He must ensure something is done immediately if businesses are not to go to the wall.

Deputy John Perry: I thank my colleague, Deputy Leo Varadkar, for bringing forward this important legislation, which is short and to the point. There has been much talk from Government about national strategies and grand plans for the smart economy as a way of restoring competitiveness and creating jobs. These grand ideas should not blind us to the importance of also finding urgent micro-steps that can have a significant and immediate impact on job protection.

In my opinion, this Bill is one such urgent micro-step. The life blood of any business is cash flow. The Bill fits into the bigger picture of improving competitiveness and of bringing about real reform in the way business is conducted. There is an old business saying that cash is king. This is never truer than when cash is in short supply. I agree with Deputy Feighan that businesses, including small service companies and the retail sector, are in turmoil. This Bill is about the survival of small companies, small family businesses. It is about trying to support the business person seeking to protect his or her business and the staff employed therein.

There has been much discussion about the banks not providing credit to small and medium-sized companies to ensure that they can remain open as they struggle in the worst economic downturn in decades. I agree that the banks can and should do more to help the small business sector. They have received billions of euro from the State for which they are doing nothing in return. They are micro-managing their accounts and providing no new credit whatsoever. This week, the Government injected €4 billion into a bankrupt bank, which raises many questions. Billions of euro of taxpayers’ money has been put into the banks’ coffers and they must use that money to help small businesses. What small businesses really need is a restoration of consumer confidence to ensure consumers generate the cash flow that small businesses need to keep them going. There is a saying that “turnover is vanity and profit is sanity”. Sanity and vanity are currently in turmoil. For the small business, the most difficult task is ensuring that payment is received for goods and services supplied on credit. This problem can be difficult [515]enough in good times. In this crushing economic downturn, payment of money owed to small and medium-sized enterprises, SMEs, is absolutely critical.

The Bill is designed to support small businesses through the provision of a quick and simple low cost legal remedy when an SME encounters serious difficulty in obtaining payment from a creditor. Fundamentally, this Bill is about the preservation of jobs. We must remember that firms in the retail sector, which is the biggest employer in the State, often employ fewer than ten people. The backbone of this economy is retail trade and services, a sector which has not to date received a State grant. In the current climate, our top priority must be the preservation of jobs and the restoration and maintenance of small companies. We must take all possible steps to protect existing jobs. In addition, we must reduce the cost on the SME sector when it must look to legal remedy to obtain money owed to it. Legal costs can be a significant element of business costs when a small business is forced to take legal action. Reducing such costs is another key step in assisting local businesses to protect jobs.

This Bill strikes the right balance in facilitating a small business to quickly recover what is owed at a low cost. I thank Deputy Varadkar for bringing forward this Bill. I appeal to the Minister of State to take action to address what is going on. It is appalling. The people have no confidence in the Government, as evidenced in the recent elections. Billions of euro has been given, through the State guarantee scheme, to Allied Irish Banks and Bank of Ireland, and to Anglo Irish Bank to allow it to remain open. Little or none of the money received from Europe has filtered through to small companies. This Government has lost the plot entirely when it comes to the restoration and maintenance of small companies. It has missed out on an opportunity to create confidence and, as Deputy Paul Connaughton said, to encourage people to retain jobs. Instead, all we have heard about is job losses and redundancies, the payments for which are costing the State a fortune.

Deputy Pádraic McCormack: I, too, thank Deputy Leo Varadkar for bringing forward this important Bill at this time. I appeal to the Government — the benches opposite are unfortunately bare at the moment — not to stall this Bill for six months. The next six months could be vital. Many small businesses will go to the wall if this measure is not introduced quickly. Stalling this legislation for six months at this particular point does not make any sense.

Many small businesses are currently put to the pin of their collar to survive the economic crisis for which this Government is responsible in terms of its over-reliance on the building sector. Earlier, the Government, supported by members of the former Progressive Democrats Party, Independents and the Green Party, won the vote of confidence. It will now claim it has a mandate for all it is doing, including stalling this important legislation for six months. As pointed out earlier, whatever mandate the Government has, the Green Party has no mandate. While they were elected on the basis of their opposition to Government and everything it did previously they later, for convenience of numbers, joined up with Fianna Fáil following the election. Calling that a mandate does not impress me or the many small businesses that are being forced to close.

The banks are refusing to make cash available to small businesses. The Government is not helping businesses to survive, many of whom are awaiting payment for services to, perhaps, State agencies, government or local authorities.

This money is sometimes expected as payment for services provided to State agencies and local authorities. Many small businesses are owed thousands of euro and this money is vital for their survival. The grants for adaptations for disabled persons and essential repairs for the elderly have not yet been paid for work done in County Galway since September 2008. The small builders who completed these projects are still waiting for the householders to pay them from the grants. Similar issues arise in respect of the farmyard pollution grants. The Government decided that projects under this scheme had to be completed before the end of September [516]2008 and that only 40% will be paid in 2009 and 2010, respectively, and 20% in 2011. How can any small business wait that long for payment?

We have encountered these kinds of problems on our canvass. Small business people took out their anger with all politicians even though the blame lies with the Government, which is now stalling this Bill for six months instead of accepting it and getting on with the job of releasing money to small businesses.

Deputy Shane McEntee: I thank Deputy Varadkar for acknowledging in this Bill the plight of farmers. It is high time that the farming and food processing industry were treated the same as other sectors. Agribusiness employs 200,000 people but over the past 12 months, farmers have gone to the wall on a daily basis. In the parish of my wife’s family, the number of dairy farmers has decreased from 40 to three over the past 20 years. I was shocked to learn over the past three weeks how bad circumstances have become for farmers. I visited a farmer with whom I am acquainted through our mutual involvement in an organisation and who paid six employees out of a milk cheque that was one third less this April than last year. We have developed the American way of farming due to high energy costs and poor cashflow. Farmers are culling the lower ends of their herds to generate the cash they need to continue.

Members on this side of the House are sometimes accused of being dramatic but everything that Deputy Bruton predicted 12 months ago has come to pass. Last November, when I met a correspondent to outline what I thought would happen in January and February he told me I was too dour. However, I was vindicated by events. If we go on holidays for two months, further problems will arise in September or October. It is unacceptable to reject a Bill such as the one before us. Two weeks’ holidays this summer are enough for this House. We need to keep our eyes on the ball because when the middle of July comes we will be treated with contempt by the people, and rightly so. We cannot walk away because this is the House in which work can be done and people helped. To walk away in the first week of July and not return until the end of September is a disgrace. We will be forced to return in September because mortgage holders and business people will not survive until then. Their credit cards are full and their savings are gone. My county’s club championships will be decimated because our young people are flying to Boston and all over the world in the hope of finding work. If we close in July and ignore our legislative responsibilities, we will deserve what we get in September.

We have looked after the people who control the banks while failing an industry. At the count centre in Trim, I saw milk from another country being put in our tea. That was a disgrace and an insult to the industry. Where are the boards that are supposed to sell our products?

We should sit every day this summer except for two weeks in August because we will be forced to return in September. Our small industries, and our farmers in particular, are the life and soul of the country. I ask the journalists in this House to visit the farms in counties Meath and Cork from which good cows are being sent to the factory for slaughter so that farmers can pay the ESB bills that the Minister for Communications, Energy and Natural Resources said would be reduced.

Deputy James Bannon: I thank my colleague, Deputy Leo Varadkar, for proposing this important Bill. I have seen too many small businesses go to the wall due to cashflow difficulties not only in the midlands but throughout the country. That is a shame and an indictment of the Government. I fully support the Bill’s intention of putting in place mechanisms to assist local small businesses to survive in the interest of regional and national economic recovery.

According to a recent survey by ISME, 96% of small and medium enterprises have introduced pay cuts or pay freezes since the start of the year. Firms planning lay-offs have increased to 35% from 25% two months ago. Smaller businesses are continuing to struggle and the [517]situation will deteriorate. The survey found that 35% of firms plan to make 20% of their workforce redundant within the next three months. As the sector employs approximately one million people, this equates to approximately 70,000 jobs.

ISME has called on the Government to address the failure of the banks to lend money to small and medium enterprises and the costs imposed by government on businesses, and to introduce business incentives aimed at stimulating the economy. It has also stated that late payments are having a disastrous effect on small and medium businesses, which are now waiting an average of 69 days from invoice date. That is the highest waiting period in Europe. A massive 42% of companies are waiting in excess of three months for payment. It is imperative that the Government introduces a mandatory payment period whereby all companies regardless of size will be guaranteed payment within 30 days from the end of the month of invoice or delivery. It must also put in place a mechanism similar to the existing small claims court structure to settle payment disputes as they arise in order to protect the small businesses sector. This would be a step towards ending the dominance of large businesses at the expense of small and medium enterprises and creating a level playing pitch for all credit transactions. However, if the Government continues to sit on the fence, the ensuing closure of many small businesses will push more workers onto the dole.

ISME has claimed that State agencies are blackmailing Irish businesses over their contracts with the Government. The association states that agencies are writing to smaller suppliers demanding reductions of 8% and more on their existing contracts. These communications imply that any firm which refuses to comply will be blacklisted and not permitted to supply State agencies. The current procurement process for public work contracts favours larger firms at the expense of the survival of smaller companies. I am particularly concerned that some local authorities employ consultants who in some cases are putting contractors out of business and this is happening in the midlands. This must change because it is unfair to small and medium sized contractors and businesses.

My colleague from Meath dealt with the issue of how farmers are being penalised by the Government. I want to see fair play across the board for all sectors of the community. I will support my colleague on the issue of longer sittings of Parliament. We should sit during the entire month of July, go on holidays in August and return on 1 September and deal with the crucial issues that face the economy and the people of the country.

Minister of State at the Department of Enterprise, Trade and Employment (Deputy Billy Kelleher): Many people waited with bated breath to ensure the Government won the motion of confidence today. I can assure the House that many people in the Opposition will wait with bated breath to ensure we win the vote to adjourn in early July and return in September.

Deputy Frank Feighan: We have not booked our holidays yet.

Deputy Pádraic McCormack: Try us.

Deputy Billy Kelleher: However, I understand and appreciate the views opposite.

Deputy Frank Feighan: We know Billy has the villa booked.

Deputy Billy Kelleher: I congratulate Deputy Varadkar on bringing the Private Members’ Bill to the floor of the Dáil. It may be an indication of the usefulness of Private Members’ time and of the Parliament in getting involved in constructive work as opposed to some of the more facile debates we have from time to time on the serious issues affecting small businesses.

As has been expressed by my colleagues, the Government is in broad agreement with the general objectives underlying this proposal. We are acutely aware of the concerns of small businesses in Ireland, in particular those businesses that are adversely impacted by the current [518]economic and banking crisis. I have already stated, as has every Deputy, that there is an onus on the banks. There is a new relationship with the Irish banks under the recapitalisation programme and the bank guarantee programme to ensure there is a flow of credit to small and medium sized businesses.

Deputy Ulick Burke: It is not happening.

Deputy Billy Kelleher: We will continue to pursue that credit being opened up to flow to businesses to protect the economy and jobs; Deputy Feighan mentioned a 100 year old shop in County Roscommon.

The Government is conscious of the problems being encountered by businesses in terms of cash flow and credit availability and the consequential debt problem. The availability of credit to business is essential if we are to work our way through the current economic difficulties, maintain employment and ensure economic growth in the future. The Government is committed to and focused on ensuring that the necessary actions are taken to underpin the economy in general and the enterprise sector in particular. The enterprise sector, including the small business element of that sector, is vital to Ireland’s economy which is why we have taken the necessary steps to address the credit facility difficulties being encountered. My colleagues have outlined what is being done on the recapitalisation of banks and how initiatives are being structured to provide a number of supports for small and medium sized businesses in particular.

This House need be in no doubt about our commitment. We will continue to make the necessary decisions and take the necessary actions to support enterprise, maintain employment and return the country to a more stable economic environment. It is for that precise reason that we do not oppose the Bill. It has considerable merit though not in its current form. We need to consider the measures to ensure there are no negative impacts, not only on the operation of the small claims procedure but also on consumers and those small businesses that we seek to help and protect. We have a number of concerns about the details, particularly on the possibility that the proposal will fundamentally alter the ethos of the procedure from a pro-consumer to an anti-consumer measure. Equally, we do not want to introduce any measure that has the potential to provide an advantage to large businesses to pursue small claims debt against individual consumers and small businesses with ease and minimum formality. This is especially the case against the background of the significant investment and modernisation that has taken place over recent years in the court services where a dedicated Commercial Court has been established to specifically determine business disputes.

While the Bill proposes increased access, it does not provide the necessary safeguards for consumers and small businesses. I do not wish to see any measure introduced which will make them even more vulnerable, especially in the current economic circumstances. That aspect needs to be thought through and carefully analysed to ensure that whatever further mechanism and procedure is put in place is targeted appropriately.

As I already stated, there is merit in the proposal, in particular in introducing a procedure to facilitate certain types of small claims by one business against another. This is particularly the case where many small businesses encounter difficulty in getting paid for goods or services they have provided on credit. I would not be in favour of allowing big businesses to avail of such a procedure. Introducing such a procedure will require appropriate and legally robust definitions to distinguish between business types and sizes and in particular definitions appropriate to the small enterprise and business sector in Ireland. This is an issue the Department can examine in more detail in conjunction with the Department of Enterprise, Trade and Employment and the Attorney General.

The Minister has indicated his willingness to consider the €2,000 limit applying to the small claims procedure and the matter is the subject of an ongoing review. The procedure is provided [519]for under the District Court rules which are promulgated by way of statutory instrument; no primary legislation is involved. The very successful Commercial Court was also established by means of the rules of court. All increases in the maximum amount to date have been implemented by statutory instrument and establishing changes by primary legislation may have an effect of removing the type of flexibility that operates so effectively with secondary legislation.

The Government is on record as recognising that the extension of the small claims procedure similar to that operating for consumers has the potential to aid the small businesses and enterprises struggling for survival at present. However, in introducing such a measure we need to ensure that it does nothing to undermine the ethos of the existing procedure and that it is targeted only at small businesses and is not open to use by large firms. For this reason, the Government requests the postponement of the Second Reading for six months. This is not because we do not see an urgency in dealing with this but because we would like to take on board what has been said and proposed by Deputy Varadkar and take into account the views of Members.

Deputy Ulick Burke: In the meantime jobs will be lost.

Deputy Billy Kelleher: If we postpone this we could have further discussions with the Attorney General and the Department of Enterprise, Trade and Employment. That is why we request a postponement for six months. I want to express my appreciation and that of the Government to Deputy Varadkar.

Deputy Andrew Doyle: I will share time with Deputies Burke, Clune and Varadkar.

I congratulate Deputy Varadkar on tabling the Bill. I welcome the thought that the Government has given it a broad welcome but I do not see the need to take six months to study the Bill to propose amendments — there are shades here of the Cluster Munitions Bill tabled by Deputy Timmins which was praised and subsequently introduced in Government clothes.

Deputy Billy Kelleher: I am quite sure Deputy Varadkar will not allow us to forget that.

Deputy Andrew Doyle: Previously, we have discussed the code of conduct for retailers and suppliers, the joint labour committees, the NERA regulations and the need to tighten up on this issue. There is no sense in having a primary producer product such as milk leaving farm gates at €0.20 per litre and turning up on the shelf for consumers at €1.40 or €1.39 per litre with no accountability or code of conduct on how that price was reached. Who gets the margins and where is the profit margin soaked up? We agree that the energy costs of production and minimum wage costs are causing us problems, particularly given the exchange rate. However, we have to have a code of conduct.

We need a fair trade agency, which would see the merger of the National Consumer Agency and the Competition Authority, with extra teeth. It is simple science. In the grocer super-multiples, which are worth approximately €14 billion to the industry, we have all types of unethical conduct taking place that we cannot see through, examine, monitor or regulate. An industry worth €14 billion that is not regulated or monitored properly is open to misuse and manipulation. If that is the case, and it appears it is because we are not challenging it, I ask that this Bill be passed by the House and adopted into law after the summer recess. The Minister of State cannot disagree with that.

Deputy Ulick Burke: I commend Deputy Leo Varadkar on bringing this Bill before the House this evening. Small and medium-sized businesses are key to maintaining employment. Businesses require credit to allow them continue to trade. Most businesses, particularly small [520]and medium-sized businesses, are finding it difficult to collect the funds for their goods and services.

The Minister of State’s colleague said earlier that he was very aware of the fact that one of the key drivers in our economic recovery is the provision of appropriate credit facilities to small businesses and enterprises. He went on to say that it is clear to most Members in the House that the Government is taking the necessary steps to address the particular problems facing small businesses and that it will continue to take whatever action is necessary to overcome the current situation.

That statement, in addition to what the Minister of State said earlier, is contrary to a recent bank watch survey by ISME, which confirms that the banks are continuing to restrict lending to small and medium-sized industries, with the majority of the companies being refused credit facilities even in the past three months. The results indicate that the position is deteriorating on an ongoing basis. It indicates also that the blame lies firmly with the banks’ selfish lending policies.

The Government must stop pussyfooting around with the banks and force them into freeing up credit. That is not happening, despite the fact that the Minister of State and the Ministers of State who spoke earlier said there is a flow of credit. The reality is that the people who are contacting elected public representatives know that credit is not being made available to them.

Contrary to all public statements issued by the banks, there is clear evidence that they are making it as difficult as possible for business customers to access badly needed credit facilities, with the serious consequences of job losses as a result. If left unchallenged, that will lead to a major increase in company closures, with thousands more jobs lost. It is important that the Minister of State, or somebody else in his Department, makes a decision with regard to the banks.

On 22 January last I wrote to the Tánaiste and Minister for Enterprise, Trade and Employment regarding the many people who had approached me about this particular issue. They said they were in a position where they could tide themselves over for a number of weeks or perhaps months at a stretch, but they would not be able to continue to employ people and pay them if the banks do not provide credit facilities. The banks are not doing that and it is incumbent on the Minister of State to make them do it.

Enterprise Ireland is charged with responsibility for helping indigenous industries. It must be proactive rather than reactive to the many cases they originally helped and are not getting back to now to determine if they can be rescued.

I got information under the freedom of information legislation which indicated that Enterprise Ireland, in parallel to what was going on in FÁS, undertook trips on the following project titles: TV boot camp, which involved four or five days in New York city; a week’s conference on digestive diseases in San Diego; and exploring sustainable furniture production in Las Vegas, among many others on which I have been given details. It is incumbent on the Minister of State to give Enterprise Ireland direct responsibility for indigenous industries such as those mentioned by my colleagues with regard to home industries, food production and other industries. Something must be done with regard to Enterprise Ireland and the many agencies that are duplicating the responsibilities for job creation and support.

Deputy Deirdre Clune: I was glad to hear the Minister of State say he has adopted the spirit of this legislation. It is important that something is done to help small and medium-sized enterprises because they are the backbone of this economy, employing an estimated 800,000 people. Unfortunately, that number is dropping on a daily basis.

All of us are aware of the difficulties small businesses are facing. The Minister of State must have many deputations to his office in that regard. ISME circulated all Members with a survey [521]it did of its members recently. Cork Chamber of Commerce circulated me, and I am sure the Minister, on the difficulties its members are having in surviving in these times but, most importantly, accessing credit from the banks. That credit is not forthcoming and it is resulting in job losses.

I was speaking to somebody yesterday who could not get €10,000 from the bank to facilitate him with a lease payment. This was a profitable retail business in the city centre that has been operating for at least 30 years. The alternative for businesses that cannot get relatively small sums such as that is to let someone go, which adds to the unemployment figures in the area.

Those stories are repeated up and down the country, and I am sure the Minister of State is aware of many of them. We must ensure that credit flows to small businesses. The banks are telling us one thing, the Minister will tell us another here but the reality on the ground is that it is not happening, and small businesses will go to the wall. If that does not happen we will lose the energy and commitment of those risk takers. Many of the owners of those small businesses are risk takers. It is not easy to go into a small town or a city centre and decide to set up a business, pay rent, commit oneself to local authority charges, pay water charges and take on new employees. That is a major risk people take. They want to do it and they will work hard, but they are not being facilitated in this climate. This country has recapitalised the banks. The State has invested a great deal of money with a view to ensuring that credit would flow to small business but it is not happening.

There are many areas where we could help small businesses. The issue of an upward only rent review must be addressed. Legislation must be examined to ensure that is taken out of lease clauses. Rents are falling dramatically, yet many lease takers are tied in to a position where there is only upward rent reviews. When the Minister of State is talking to the Attorney General in the next six months, he might discuss with him the possibility of introducing some form of legislation to ensure that rents can be reviewed downwards and follow the economic trends.

Small businesses must be protected. If we do not protect them now we will not have them when the country comes out of this economic crisis.

Deputy Leo Varadkar: I thank my colleagues in Fine Gael for the strong support they have given to this Bill. I thank the Labour Party Members for their support also.

The purpose of the Bill is twofold: first, to raise the threshold for the Small Claims Court procedure to €3,000; and, second, to allow small businesses to use the procedure. The particular beneficiaries in that regard would be professional sole traders, tradesmen and people who are not getting paid for the services they provide and the goods they sell. The Bill is further evidence of Fine Gael’s strength as a pro-enterprise party and one that recognises that jobs will not be created by some Government scheme. Jobs are created by business and by enterprise.

We have heard many statements and had many publications from the Government in recent years about the green economy, the smart economy and the knowledge economy. There is much merit in the documents put forward but we must not forget the real economy and the businesses already in existence, operating and in trouble. If we help these, make them competitive again and reduce their costs it is the best way to sustain jobs and promote future jobs growth. Not everyone can have a PhD or work on a wind farm. We must not forget the sizable economy already in existence which must be supported.

The Government proposes that we postpone the Second Reading for six months. Often the House is accused of engaging in a Punch and Judy show, but I respect that on this occasion the Government has attempted to meet us part of the way. Among the reasons given for the delay, I find one difficult to accept, that is, the matter of raising the threshold. This can be done immediately, but I accept that it can also be done by statutory instrument and I encourage the Government to do so.

[522]Following advice from the Attorney General, the Government will find that it will require primary legislation, that it will not simply be able to change the rules of the court by statutory instrument, that if it is to give a limited company the power to use this procedure, primary legislation will be required. I trust the Government will receive the appropriate advice from the Attorney General as soon as possible.

In terms of changing the ethos of the Small Claims Court I understand the Minister of State’s position, but this is not necessarily about consumers versus small business versus big business. This concerns on the one hand people, businesses and sole traders who pay their bills, and on the other, consumers, small businesses, large businesses and Government agencies which do not. That is the dichotomy which must be examined. We wish to support consumers who have been ripped off or discommoded, companies to which money is owed and professionals and sole traders to whom money is owed. The fact that it is a case of a business versus a consumer or a small business against a large business is not really relevant. This is about allowing people and companies which are owed money to receive what they are due for work done and services provided without having to go through an expensive court process.

In many ways I would have preferred to bring the matter to a vote tonight but inevitably, given the breakdown of the House, it would have been defeated. I am prepared to take the Government at its word and to accept the proposed Government amendment. I fully expect, having taken the Government at its word, that we will see the Bill on Committee Stage in six months’ time or, alternatively, to vote on corresponding Government legislation should it be introduced in the mean time.

Amendment put and declared carried.

Motion, as amended, agreed to.

Acting Chairman (Deputy Brian O’Shea): The Select Committee on the Environment, Heritage and Local Government has concluded its consideration of the Housing (Miscellaneous Provisions) Bill 2008 and has made amendments thereto.

Acting Chairman: The Select Committee on Arts, Sport, Tourism, Community, Rural and Gaeltacht Affairs has completed its consideration of Votes 33 and 35 for the year ending 31 December 2009; the Select Committee on Agriculture, Fisheries and Food has completed its consideration of Vote 31 for the year ending 31 December 2009; the Select Committee on Finance and the Public Service has completed its consideration of Votes 2, 3, 4, 13 and 14 for the year ending 31 December 2009; and the Select Committee on Justice, Equality, Defence and Women’s Rights has completed its consideration of Votes 36 and 37 for the year ending 31 December 2009.

The Dáil adjourned at 8.55 p.m. until 10.30 a.m. on Thursday, 11 June 2009.

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The following are questions tabled by Members for written response and the ministerial replies as received on the day from the Departments [unrevised].

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1. Deputy Olwyn Enright asked the Tánaiste and Minister for Enterprise, Trade and Employment the training, education and programmes offered by FÁS in co-operation with her Department; the type of programmes offered; the duration of programmes; the take up of programmes; and if she will make a statement on the matter. [23204/09]

Tánaiste and Minister for Enterprise, Trade and Employment (Deputy Mary Coughlan): FÁS offers a wide range of training courses and delivery methods to suit individual client needs in the development of their skill-sets. In 2009 I have almost doubled the number of activation training and work experience places through FÁS to 128,000. This is a substantial increase on the 66,000 places, which were available at the end of last year. Of these 92,000 training places on short courses are available to the unemployed and people on short-time work and will be delivered through three core-training initiatives, Short Courses, Night Courses and Online Courses. These courses are designed to develop new skills and competencies for the unemployed to assist them in securing employment. FÁS are providing such courses for a broad range of different sectors including the retail, IT, construction, manufacturing and services sectors.

Other training programmes provided by FÁS across the Training Services, Community Services and Services to Business categories include Traineeships, Bridging / Foundation courses, Return to Work Training Courses, Community Employment Schemes as well as more recent initiatives such as the Redundant Apprenticeship Rotation Scheme. Information on the range of training programmes offered by FÁS Training Services Division by programme type, duration and up-take are provided in tabular format. Information in respect of Community Services Division and Services to Business Division by programme type and duration are also appended. Take-up across these different course categories varies depending on the course type, duration and location of the course.

My Department, the Department of Social and Family Affairs and FÁS are co-operating in relation to the Work Placement Programme and the Short Time Working Programme aimed at assisting the unemployed and those on a reduced working week. These Programmes were [524]jointly launched by the Minister for Social and Family Affairs, Ms. Mary Hanafin T.D., and I on 27 May last.

The Work Placement Programme is a six-month work experience programme for an initial 2,000 individuals who are currently unemployed. Under this programme there are two streams each consisting of an initial 1,000 places of 6 months duration. The first stream is for graduates who before this year have attained a full award at level 7 or above on the National Framework of Qualifications and who have been receiving Job Seeker’s Allowance for the last six months.

The second stream is open to all other individuals who have been receiving Job Seeker’s Allowance for the last six months. Under this stream 250 places are being ring-fenced for those under 25 years of age. Participants on both streams of the Work Placement Programme will continue to receive their existing social welfare entitlements from the Department of Social and Family Affairs for their duration on the programme.

The Short Time Working Training Programmewill provide two days training a week for 277 workers over a 52-week period. Under this scheme, workers who are on systematic short time working for 3-days a week and receiving social welfare payments for the two days they are not working will receive training for these two days. Participants on this programme will also continue to receive their existing social welfare entitlements from the Department of Social and Family Affairs. Both Programmes are being administered by FÁS and it is too early in the process to provide specific information on take-up at this time.

As outlined above in response to the challenge of rising unemployment my Department has significantly expanded its provision of supports in training and education places offered by FÁS to the unemployed. I am determined that both my Department and I will continue in this regard as we examine new initiatives and new methods to allow us to continue to respond to the needs of the unemployed.

[525]FÁS Training Services Division and Services to Business Division

Programme	Programme Type	Typical Duration	Take-up as at end April 09
Bridging Foundation Training	Aimed at disadvantaged clients	8 to 20 weeks duration	3,278
Return to Work Programme	Bridging Programme specifically for persons wishing to return to employment	10 weeks	439
Specific Skills Training	Wide range of skills training with an appropriate vocational qualification	Vary in length the typical duration is 20-26 weeks but it can be up to a maximum of 48 weeks	5,695
Short Course Programme	Short Courses targeted at redundant persons with high employability	8 weeks	Newly commenced
Traineeship	Occupational specific and industry endorsed training	20 to 40 weeks	2,450
Phase 2 Apprenticeship Training	Skills and knowledge training and assessment for apprentices	20 weeks	3,083
Sponsored Training	Fee paying training provided by FÁS to companies for people in employment	Determined by the requirements of each skill set	561
Evening Courses	Provided for unemployed persons and fee paying employed clients to upskill and obtain accreditation	10 weeks	7,000
On-line learning	Training in a wide range of skills and knowledge for persons with access to PC	10 weeks	Newly commenced
Blended Learning	On-line learning with tutor support and workshops	10 weeks	Newly commenced

FÁS Community Services Division

Programme	Programme Type	Typical Duration
Community Employment	Employment programme	3 years max under 55.6 years max for 55+1 extra year for persons with a disability
Job Initiative(closed to new recruitment November 2004)	Employment programme	n/a
Community Training Centres	Training programme	Varies depending on individual learning needs
Local Training Initiatives	Training programme	1 year
Specialist Training Providers	Training/Employment programme for persons with disabilities	2 years average
Employability Services (formerly Supported Employment)	Training/Employment programme for persons with disabilities	18 months average
Job Clubs	Training programme	Drop-in service, typically for 3 weeks average
Special Initiative for Travellers	Training programme	18 months average

2. Deputy Richard Bruton asked the Minister for Finance if his attention has been drawn to the length of time it takes a limited company or a partnership company to acquire its tax registration number to allow it to start trading and employ people; his plans to upgrade the system to enable a quicker turnaround from initial application; and if he will make a statement on the matter. [23183/09]

Minister for Finance (Deputy Brian Lenihan): I am informed by the Revenue Commissioners that over 95% of applications for registration across all areas of taxation are completed within 5 to 10 working days. In a small number of cases the timescales for processing a registration application will be longer due to the requirement to protect against possible tax loss. Delays can occur when the standard checks give cause for concern in relation to such matters as the compliance history of the principals involved and, for VAT, the existence of a genuine taxable business. The Revenue Commissioners recognise the importance of providing a first-class service to their customers and continually re-assess all registration procedures to ensure that the quickest and most efficient services are available at all times.

3. Deputy Richard Bruton asked the Minister for Finance if he will explain the valuation methodology that will be used for the purchase of assets by the National Asset Management Agency from the banks; and if he will provide assurances that concepts such as underlying longer term economic value will not result in payment in excess of the market price for any of the assets purchased. [23182/09]

Minister for Finance (Deputy Brian Lenihan): Loans will be transferred to NAMA at an appropriate written down value in order to ensure value for money for the taxpayer. The NTMA is in the process of engaging experts to assist the interim Managing Director of NAMA and, on their appointment, those experts will contribute to the development of an appropriate valuation methodology, which will ensure fairness and the independence of the valuation process.

The valuation methodology to be adopted by NAMA will have to be agreed with the European Commission, which published guidance on the treatment of impaired assets last February. The Commission has indicated that in the absence of a market value, a transfer value reflecting the underlying longer-term economic value of the assets would be an acceptable benchmark as a basis of valuation methodology. Furthermore, the Commission intends to establish a panel of international experts to advise it on its approach to valuation methodology, which will have to be applied consistently across institutions. At this stage, it is not possible to determine what discount will be applied to the impaired loans of the relevant financial institutions. This is dependent on a wide range of factors.

4. Deputy Paul Gogarty asked the Minister for Finance his views in relation to the rationale behind the establishment of the National Asset Management Agency as opposed to nationalising the Irish banks; the way he will ensure that the valuations carried out by NAMA will be independent and accurate in a falling market and will not benefit developers in any way; and if he will make a statement on the matter. [23198/09]

Minister for Finance (Deputy Brian Lenihan): The Government examined all of the potential approaches available to it in dealing with risky assets on the balance sheets of Irish banks, which were preventing banks from lending into the economy and thereby supporting economic recovery. Taking account of Dr Peter Bacon’s report on options for resolving property loan [527]impairments, and the consensus amongst the Government’s advisors including the Central Bank, the Financial Regulator and the NTMA, the Government concluded that the establishment of an asset management agency was the best means of ensuring that the banks were freed up to lend to the real economy.

The Government believes that it is important, where possible, that the banking sector has a market presence and that it operates within market disciplines and constraints and this is facilitated by adopting the asset management approach. A commercially focused banking system is best equipped to ensure that the lending needs of the real economy are met. The Deputy will be aware that no country is currently adopting a policy of wholesale bank nationalisation; there is no immediate reason for Ireland to adopt such a policy. If Ireland was to uniquely proceed down that route it could, from an international perspective, be very damaging to Ireland’s reputation and to our attractiveness to international investors. Moreover, a policy of nationalisation does not in itself deal with the risky assets on the balance sheets of relevant institutions, or funding issues for banks.

The valuation methodology to be adopted by NAMA will have to be agreed with the European Commission, which published guidance on the treatment of impaired assets last February. The NTMA is in the process of engaging experts to assist the interim Managing Director of NAMA and, on their appointment, those experts will contribute to the development of an appropriate valuation methodology, which will ensure fairness and the independence of the valuation process. Legislation on NAMA is being prepared and will be published as soon as possible.

5. Deputy Paul Gogarty asked the Minister for Finance if his attention has been drawn to any service available to fixed rate mortgage holders whereby they are able to switch without paying the breakage fee; if there have been further deliberations regarding the hardships caused to fixed rate mortgage holders in the current economic situation; if, notwithstanding the reality that a fixed rate mortgage was a decision made by persons who could still benefit from this relative to variable rate holders, there is scope to provide some limited assistance in view of the unprecedented situation with job losses, income levies and pension levies; and if he will make a statement on the matter. [23199/09]

Minister for Finance (Deputy Brian Lenihan): The Consumer Credit Act, 1995 (“the Act”), is the principal piece of legislation protecting the consumer in the context of mortgage credit agreements with a lender. The Act requires that the credit agreement governing the relationship between the lender and the consumer for the duration of the agreement, to be in writing. Agreements may include a provision allowing a consumer to switch from a fixed rate mortgage to a variable rate mortgage upon the payment of a fee in respect of funding costs. Where there is no specific contractual term empowering the consumer to move from a fixed rate mortgage to a variable rate mortgage in the credit agreement, the consumer has no contractual right to do so. A lender may, of course, exercise its discretion in allowing a consumer to move from a fixed rate to a variable rate mortgage.

However, when a borrower signs a fixed-rate mortgage contract with a mortgage provider, the lender in turn enters into an agreement where they borrow the money at an agreed rate. The mortgage lender must repay the money at this agreed rate, so there is a cost to the institution if the fixed rate agreement is terminated before the agreed term which gives rise to the redemption fee charged in these cases. On 26 March 2009, I undertook, in this House, to raise concerns regarding the level of redemption fees with the Consumer Director of the Financial Regulator who has a statutory mandate to safeguard the interests of consumers. The Financial [528]Regulator has confirmed to my Department, that all mortgage lenders have provided it with the formula used by that lender when calculating the early redemption fee applying to fixed rate mortgages.

The Financial Regulator has also sought independent verification by an actuary that the fee charged by a number of lenders recouped only the loss in funding costs incurred by the lenders due to the early redemption of a fixed rate mortgage. The Financial Regulator has received the majority of the actuarial independent verifications from lenders and is currently reviewing the information received. The verifications received to date indicate that the formulae applied by lenders seek to recoup the loss to the lender arising from the early redemption of the fixed rate mortgage and do not apply a penalty charge on the borrower. The Financial Regulator is also examining whether any additional costs are being charged. The Financial Regulator has advised that further analysis may be necessary once all of the information is received and reviewed. Should the remaining analysis by the Financial Regulator indicate that further consideration of this issue is required, it will be carried out.

6. Deputy Paul Gogarty asked the Minister for Finance if he will review the new emissions based car tax system as it applies to disabled drivers, with a view to raising the cap in view of the problems caused by increased costs to disabled drivers as a result of the new scheme and the fact that they would have less choice available in choosing a more environmentally friendly car (details supplied); and if he will make a statement on the matter. [23212/09]

Minister for Finance (Deputy Brian Lenihan): The Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and Vehicle Registration Tax (up to a certain limit), and exemption from motor tax, on the purchase of an adapted car for transport of a person with specific severe and permanent physical disabilities. The disability criteria for these concessions are set out in the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994. To get a Primary Medical Certificate, an applicant must be permanently and severely disabled within the terms of these Regulations.

Some 13,000 people benefited under the scheme in 2008 at an overall estimated cost of €76 million. Any changes would have to be considered in the context of the annual Budget. Motor Tax is a matter for my colleague the Minister for Environment, Heritage and Local Government.

7. Deputy Joanna Tuffy asked the Minister for Health and Children the position regarding a nationwide study on the fluoride intake of the population here; and if she will make a statement on the matter. [23195/09]

Minister for Health and Children (Deputy Mary Harney): Ireland is a party to an EU bio monitoring programme which is a tool to assess human exposure to environmental stressors and potential health effects. It is proposed to include monitoring background levels of fluoride and longitudinal studies of the general population within this bio monitoring programme. The programme, which will concentrate on measurement and sampling, is due to commence in mid July 2010 and baseline data on the level of fluoride in the general population is expected early in 2012.

8. Deputy Joe McHugh asked the Minister for Health and Children if she will clarify if plans are in place for County Donegal cancer patients to be treated at Altnagelvin Hospital in County Derry; if she will discuss these plans; when the plans will be in place; and if she will make a statement on the matter. [23157/09]

Minister for Health and Children (Deputy Mary Harney): In April 2008, Minister Michael McGimpsey of the Department of Health, Social Services and Public Safety (DHSS&PS), Northern Ireland announced the provision of a satellite centre (linked to Belfast City Hospital) to be located in Altnagelvin in Derry. It will provide the additional radiotherapy capacity needed to meet an anticipated increase in cancer in Northern Ireland. It also recognises the potential for cross border co-operation in the development of this resource.

I welcomed the announcement by Minister McGimpsey. Officials from my Department and their counterparts in Northern Ireland continue to hold discussions in this regard. The HSE has provided information on cancer patients and projected needs for radiotherapy to 2025 to assess the number of people living in Donegal and surrounding areas who would be likely to avail of the new services in Altnagelvin.

The relevant authorities are developing a business case for the satellite radiotherapy centre at Altnagelvin. I understand that the facility is expected to be operational by 2015 and I anticipate that patients from the Donegal area will be among those using it. Patients from Donegal with breast cancer or prostate cancer continue to be referred, if they so wish, to Belfast City Hospital for radiotherapy. In the 12 months ending 1 April, 2009, 30 patients availed of this option.

9. Deputy Liz McManus asked the Minister for Health and Children the status regarding the bilateral agreement relating to inter-country adoption between Ireland and Russia; if a copy of the agreement will be provided to parents in order that all parties are fully aware of their rights and duties under this agreement; the nature and legal status of the agreement between the Health Service Executive, the Russian Embassy and the Adoption Board; and if she will make a statement on the matter. [23158/09]

Minister of State at the Department of Health and Children (Deputy Barry Andrews): As the Deputy is aware, the Adoption Bill, 2009, which will give force of law to the Hague Convention on the Protection of Children and Co-operation in Respect of Inter-country Adoption, was published on 23 January, 2009. Under the proposed new legislative regime, prospective adoptive parents will be able to adopt from countries that have ratified the Hague Convention as well as from those countries with which Ireland has a bi-lateral agreement based on Hague standards. As part of the preparations for the likely passage and entry into force of these new legislative arrangements, my Office has been liaising with the Department of Foreign Affairs to identify and negotiate with countries who continue to seek homes abroad for children in need of alternative care that cannot be provided domestically. We are working actively to assess the possibilities of entering into bi-lateral agreements with a small number of countries, including with the Russian Federation.

Ireland presently has no bilateral agreement on intercountry adoption in place with the Russian Federation. Preparatory work on a draft bilateral agreement on intercountry adoption with the Russian Federation is currently being undertaken. Officials from my Office and from the Department of Foreign Affairs have been taking soundings in relation to inter-country adoption in the Russian Federation since April, 2008. This has included contacts with the Irish [530]Embassy in Moscow and legal and other preparatory work on the possibility of a draft agreement between the two countries. A first formal meeting between the two sides, arranged with the assistance of the Department of Foreign Affairs, took place in early May. I will continue to advance this matter in the coming months with the assistance of officials from both the Department of Foreign Affairs and the Irish Embassy in Moscow.

While every effort will be made to conclude a bilateral agreement in advance of any of the proposed changes in Irish law taking effect, it must be acknowledged that these matters will be determined to a considerable degree by the Government of the Russian Federation.

10. Deputy Liz McManus asked the Minister for Health and Children the position regarding the bilateral adoption agreement between Ireland and Vietnam; if she will renew the bilateral adoption agreement between Ireland and Vietnam before the Adoption Bill 2009 is passed; the position regarding inter-country adoption, in particular such adoptions between Ireland and Vietnam; the status of the agreement between the two countries; the status of persons who had been on the list of adoption before the initial agreement was terminated; the position in this matter; and if she will make a statement on the matter. [23159/09]

Minister of State at the Department of Health and Children (Deputy Barry Andrews): My Office is continuing to work towards securing a strengthened inter-country adoption agreement with the Vietnamese authorities. In light of several concerns raised by other countries during the last year, the Government decided that it was necessary to reinforce the initial bilateral agreement with the Socialist Republic of Vietnam. Also, with the publication of the Adoption Bill, 2009, on 23 January last, it was considered necessary to ensure that both the content of a new agreement and its implementation would meet the minimum standards set out in that Bill and stipulated in the Hague Convention on the Protection of Children and Co-operation in Respect of Intercountry Adoption.

This process has been on-going for fifteen months now and dialogue with the Vietnamese authorities continues. As ever, the primary focus in securing any new inter-country adoption agreement between Ireland and the Socialist Republic of Vietnam is on reinforcing the requisite procedures that support and protect the children for whom adoption services are devised and provided. At this juncture, all options, including an interim agreement, are actively being pursued by the Government to allow for the conclusion of discussions on a strengthened bi-lateral agreement and to facilitate continuity of the strong and positive relationship between both jurisdictions.

I am anxious to conclude discussions on the text of the inter-country adoption agreement already under consideration. However, I must point out that no guarantee, despite the efforts of the Government, can be provided in relation to the outcome of that process. In addition, it must be noted that the wider policy agenda priority is the enactment of the Adoption Bill and the subsequent ratification of the Hague Convention. Any follow-up intercountry adoption agreement with the Socialist Republic of Vietnam must have regard to these forthcoming changes in our national adoption legislation.

It is not possible for me to either give a timetable or anticipate when discussions on the agreement will be finalised. While outstanding matters that require attention may be prioritised by the Government, it is not possible to predict what matters will demand the attention of the Vietnamese authorities or where a follow-up intercountry adoption agreement may fall in their list of priorities. However, there has been a high level of engagement on both sides and it is clear from progress so far that there is a genuine willingness on both sides to bring the negotiations to a successful conclusion.

[531]With regard to the status of persons who had been on the list of adoption before the initial bilateral agreement with the Socialist Republic of Vietnam was terminated, the Adoption Board has advised that:

all adoptions from Vietnam, which have been registered on the Register of Foreign Adoptions, are safe and secure;

all applicants who have adopted children from Vietnam and returned to Ireland but as yet, have no entry in the Register of Foreign Adoptions will be registered subject to the usual statutory requirements;

applicants who have referrals in respect of children from Vietnam will be allowed to complete their adoption;

there will be no new referrals from May 1st, 2009, and

the process of granting Declarations (which are not country specific) is not affected by the ending of the Bilateral Agreement with Vietnam.

11. Deputy Seán Power asked the Minister for Health and Children when the remaining part of a grant aid will be awarded to an organisation (details supplied) in County Kildare; and if she will make a statement on the matter. [23167/09]

Minister for Health and Children (Deputy Mary Harney): As the Deputy’s question relates to a service matter it has been referred to the HSE for direct reply.

12. Deputy Edward O’Keeffe asked the Minister for Health and Children if she will investigate the provision of orthodontic treatment in respect of a child (details supplied) in County Cork. [23176/09]

Minister for Health and Children (Deputy Mary Harney): As this is a service matter it has been referred to the HSE for direct reply.

13. Deputy Seán Sherlock asked the Minister for Health and Children if she will expedite an outpatient appointment in respect of a person (details supplied) in County Cork; and if she will make a statement on the matter. [23184/09]

Minister for Health and Children (Deputy Mary Harney): As this is a service matter, it has been referred to the HSE for direct reply.

14. Deputy Denis Naughten asked the Minister for Health and Children when a person (details supplied) in County Roscommon will receive a decision on the review of the over 70s medical card; the reason for the delay in responding to the applicant; and if she will make a statement on the matter. [23188/09]

Minister for Health and Children (Deputy Mary Harney): As this is a service matter it has been referred to the Health Service Executive for direct reply to the Deputy.

15. Deputy Richard Bruton asked the Minister for Health and Children her views on the recent independent report examining the Government’s A Vision for Change plan; the reason the Health Service Executive has not issued a detailed implementation proposal for the plan; her views on whether a national mental health services directive should be established; the timeframe for the establishment of this body; and if she will make a statement on the matter. [23192/09]

Minister of State at the Department of Health and Children (Deputy John Moloney): Following the launch of ’A Vision for Change’ in January 2006, an independent Monitoring Group was established to monitor and assess progress by the Health Service Executive, government departments and other agencies in implementing the recommendations set out in the Report. The Monitoring Group’s third annual report was published on 20 April 2009. The Group reported progress with the implementation of certain recommendations of the Report including child and adolescent services, engagement with service users and mental health information systems. However, the Group had concerns in relation to the absence of clearly identifiable dedicated leadership within the HSE to implement ‘A Vision for Change’ and that a more detailed implementation plan had not yet been made available.

I am pleased to inform the Deputy that, in April, the HSE adopted an implementation plan for ‘A Vision for Change’for the five year period 2009-2013. Although a recommendation in ‘A Vision for Change’ is to establish a National Directorate for Mental Health, this recommendation has not been implemented by the HSE. However, the HSE recently confirmed that a national lead dedicated to mental health will be appointed shortly and will work closely with the National Clinical Director to drive the modernisation of mental health services.

16. Deputy Denis Naughten asked the Minister for Health and Children if a community child care facility can charge parents for two week summer camps under the new early childhood care and education programme, which it is prohibited from charging for under the subvention scheme; if such a facility can charge for ECCE type programmes and child care for additional weeks beyond the 38 week proposed scheme; the position regarding private facilities; and if she will make a statement on the matter. [23197/09]

Minister of State at the Department of Health and Children (Deputy Barry Andrews): As the Deputy will be aware I have responsibility for the implementation of the free Pre-School year in Early Childhood Care and Education (ECCE) scheme, which will come into operation in January next, and for the Community Childcare Subvention Scheme (CCSS) which was introduced in January 2008. Under the ECCE children will be able to avail of a free Pre-School Year in Early Childhood Care and Education (ECCE) in the year before they commence primary school. Participating children must, normally be aged between 3 years 3 months and 4 years 6 months on 1st September of each year. Over 4,800 private and voluntary pre-school services which are notified to the Health Service Executive (HSE) or registered with the Irish Montessori Educational Board (IMEB) have been invited to participate in the ECCE and provide Pre-School Year places to qualifying children from January 2010.

Services can choose to deliver the Pre-School Year from a range of options. A full or part-time daycare service will normally provide the place for 2 hours 15 minutes a day, five days a week over 50 weeks, in return for a weekly capitation fee of €48.50. A playschool sessional service will normally be required to provide a pre-school service for 3 hours a day, five days a week over 38 weeks, in return for a weekly capitation fee of €64.50. However, where for good [533]reason a sessional service is unable to operate over 5 days, it may participate in the scheme by providing a place for 3 hours 30 minutes a day, 4 days a week over 41 weeks.

Further flexibility is provided for in that, a full or part-time service may choose to provide a sessional service over 38 weeks of a year (or 2 sessional services each day) while a sessional service may choose to provide 2 hours 15 minutes per day over 50 weeks. Also in cases where children attend a full or part-time daycare service for 3 days a week only, consideration will be given to allowing the service to participate in the scheme on the basis of providing the pre-school year to those children for 3 hours 45 mins a day for 3 days a week. In such cases, a service will be required to provide the pre-school year over 50 weeks.

In all cases, participating services must operate the relevant pre-school provision free to parents in return for the applicable capitation grant. It is open to services participating in the ECCE to provide additional services to parents which can be charged for, including additional hours or summer camps as referred to by the Deputy, provided these are clearly optional.

Funding is also available to community not for profit pre-school services, under the Community Childcare Subvention Scheme (CCSS), and a community service can participate in both the CCSS and the ECCE. Services participating in the CCSS are grant aided to enable them to charge reduced childcare fees to disadvantaged and low income families. Services funded under the CCSS may operate and charge fees for summer camps in the same way that they operate and charge fees for their general service, that is that any funding they have received to subvent the fees of disadvantaged and low income parents is used for that purpose.

17. Deputy Frank Feighan asked the Minister for Health and Children if she will put a plan in place to deal with a rat infestation in a house (details supplied) in County Leitrim. [23214/09]

Minister for Health and Children (Deputy Mary Harney): The Deputy’s question relates to the management and delivery of health and personal social services which are the responsibility of the Health Service Executive under the Health Act, 2004. Accordingly, my Department has requested the Parliamentary Affairs Division of the Executive to have the matter investigated and to reply directly to the Deputy.

18. Deputy Finian McGrath asked the Minister for Health and Children if she will support the case of a person (details supplied) in Dublin 5. [23219/09]

Minister for Health and Children (Deputy Mary Harney): As this is a service matter it has been referred to the Health Service Executive for direct reply to the Deputy.

19. Deputy Paul Gogarty asked the Minister for Health and Children the response she received regarding the public outcry following the closure of wards and cutbacks at Our Lady’s Hospital for Sick Children in Crumlin, Dublin; if action is being taken to ensure that this situation does not occur on an ongoing basis; and if she will make a statement on the matter. [23240/09]

Minister for Health and Children (Deputy Mary Harney): In common with all hospitals, Our Lady’s Children’s Hospital, Crumlin is addressing the challenge of delivering a high quality service to its patients, while remaining within budget. The Hospital is committed to providing the full level of services that it promised in its service plan for 2009. The top priority will be to protect patient care. So far this year, Crumlin Hospital has delivered more treatments to [534]patients than for the same period last year. In the first four months of 2009 there were 3,704 treatments for children as in-patients and 5,095 as day cases– up by 234 over 2008. Crumlin also had 28,040 attendances at the out-patient department for the first four months.

The allocation to Crumlin for 2009 is €139.6m, an increase of some 39% over the last five years. This includes a reduction of 3% this year over 2008, in line with the budgetary constraints facing the entire public sector and the wider economy. A particular challenge for the Hospital is that it is currently operating at some 91 posts above its employment ceiling — it employed 1,641 people (wholetime equivalents) at the end of April compared with its ceiling of 1,550. This is contributing to its current financial difficulties. The HSE is working closely with Crumlin Hospital to achieve an agreed programme of savings, totalling €6.5m this year. The focus of these savings will be on non-pay areas of expenditure and on protecting front-line services. On this basis, the HSE believes that the Hospital will achieve a break-even position this year.

I believe that we need to look more strategically at the way in which we provide paediatric services in Dublin. In 2009 the Government will provide over €250m for the running of three paediatric hospitals in Dublin — Crumlin, Temple Street and Tallaght. We can achieve significant cost savings if services and practices are more closely integrated across the three hospital sites, even before the new National Paediatric Hospital has been completed. With this in mind, the HSE is pursuing ways in which services across the three hospitals can best be co-ordinated, to avoid unnecessary duplication and to achieve savings that can be put back. On the issue of specific operational actions being taken, my Department has asked the HSE to reply directly to the Deputy in that regard.

20. Deputy Jack Wall asked the Minister for Health and Children the plans the Health Service Executive has to improve a health centre (details supplied) in County Kildare; and if she will make a statement on the matter. [23356/09]

Minister for Health and Children (Deputy Mary Harney): As the Deputy’s question relates to a service matter it has been referred to the Health Service Executive for direct reply.

21. Deputy Michael Ring asked the Minister for Health and Children if a person (details supplied) in County Mayo has been assessed for schemes. [23358/09]

Minister of State at the Department of Health and Children (Deputy John Moloney): As the Deputy’s question relates to service matters I have arranged for the question to be referred to the Health Service Executive for direct reply.

22. Deputy Bernard J. Durkan asked the Minister for Transport his plans to enhance the rural transport option with particular reference to areas not covered by public transport; and if he will make a statement on the matter. [23222/09]

Minister for Transport (Deputy Noel Dempsey): Thirty-seven community transport groups around the country are being funded under my Department’s Rural Transport Programme (RTP) to address social exclusion in their rural areas arising from unmet public transport needs. The Programme is now operational in every county and the groups are working towards maximising coverage in their operational areas having regard to local public transport service needs and the availability of resources. One of the key strengths of the RTP is that local communities know best where the transport needs are in their rural areas and how best to [535]address those needs. The RTP groups are, therefore, responsible for deciding on the specific services to be provided and the methods of provision.

23. Deputy Bernard J. Durkan asked the Minister for Transport the waiting time for the national car test in the Dublin area; and if he will make a statement on the matter. [23190/09]

Minister for Transport (Deputy Noel Dempsey): Under the Road Safety Authority Act 2006 (Conferral of Functions) Order 2006 (S.I. No. 477 of 2006) this is a matter for the Road Safety Authority.

24. Deputy Joanna Tuffy asked the Minister for Transport if there are restrictions for flight training aircraft flying over housing estates; and if he will make a statement on the matter. [23211/09]

Minister for Transport (Deputy Noel Dempsey): The Irish Aviation Authority (IAA) has statutory responsibility for safety regulation of civil aviation under the 1993 Irish Aviation Authority Act. I am advised by the IAA that any aircraft, including an aircraft involved in flight training within the State has to comply with the regulations as set out in the Irish Aviation Authority, (Rules of the Air) Order Statutory Instrument (SI) 72 of 2004. The IAA has further advised of the specific provisions of Rule 2 of SI 72 which states that “an aircraft shall not be operated in a negligent or reckless manner so as to endanger life or property”. In addition, such aircraft must comply with all of the provisions set out in Rule 3 with regard to minimum heights. Statutory Instrument 72 of 2004 can be accessed on the IAA website at www.iaa.ie.

25. Deputy Phil Hogan asked the Minister for Justice, Equality and Law Reform when an application will be decided on in respect of a person (details supplied); and if he will make a statement on the matter. [23165/09]

28. Deputy Bobby Aylward asked the Minister for Justice, Equality and Law Reform if he will expedite the application for a partnership visa in respect of a person (details supplied) in County Carlow; and the status of this application. [23196/09]

Minister for Justice, Equality and Law Reform (Deputy Dermot Ahern): I propose to take Questions Nos. 25 and 28 together.

The application for a visa referred to was made on 28/04/2009. It was received in the Visa Section, Burgh Quay, Dublin on 03/06/2009 and is currently being processed. The decision in relation to this application will issue in due course.

26. Deputy Aengus Ó Snodaigh asked the Minister for Justice, Equality and Law Reform if he will provide the data available on the labour market penetration of the 16,693 people granted residency under the IBC05 scheme; and the steps he is taking to facilitate access to the labour market for those granted residency under this scheme. [23169/09]

Minister for Justice, Equality and Law Reform (Deputy Dermot Ahern): I wish to inform the Deputy that those persons granted temporary leave to remain in the State under the IBC/05 Scheme were given permission under Stamp 4 conditions. This gives an entitlement to work in [536]the State without the need for a work permit and to set up a business without seeking the permission of the Minister. As such, all holders of Stamp 4 status, including those who were granted under the IBC/05 Scheme, and whose permission to remain in the State is currently valid, have full and unfettered access to the labour market.

I am aware that the Business in the Community Ireland EPIC programme (Employment for People from Immigrant Communities) targeted the parents of Irish born children with a view to securing employment, training and education during 2006-07. I should add that there are a range of services provided by State and other agencies in the area of education and training for those seeking to enter the labour force, and the persons in question have full access to such services. With regard to the labour market penetration of the 16,693 individuals granted residency, isolating and aggregating the data sought by the Deputy would involve a disproportionate use of resources.

27. Deputy Paul Kehoe asked the Minister for Justice, Equality and Law Reform the changes to the format of the new gun licence when issued; and if he will make a statement on the matter. [23174/09]

Minister for Justice, Equality and Law Reform (Deputy Dermot Ahern): I am informed by the Garda Authorities that the exact format of the new firearm certificate has not yet been finalised but it is envisaged that it will be a durable, credit card sized document.

Question No. 28 answered with Question No. 25.

29. Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform the position in regard to an application for residency in the case of a person (details supplied) in County Limerick; and if he will make a statement on the matter. [23235/09]

Minister for Justice, Equality and Law Reform (Deputy Dermot Ahern): I refer the Deputy to Parliamentary Questions No. 317 of Tuesday, 16 December, 2008 and No. 112 of Thursday, 4 December, 2008 and the written Replies to those Questions. The person concerned applied for asylum on 9 November 2006. His application was refused following consideration of his case by the Office of the Refugee Applications Commissioner and, on appeal, the Refugee Appeals Tribunal.

Subsequently, in accordance with Section 3 of the Immigration Act 1999 (as amended), the person concerned was informed, by letter dated 29 January, 2008, re-issued on 5 December, 2008, that the Minister proposed to make a Deportation Order in respect of him. He was given the options, to be exercised within 15 working days, of leaving the State voluntarily, of consenting to the making of a Deportation Order or of making representations to the Minister setting out the reasons why he should be allowed to remain temporarily in the State. In addition, he was notified of his entitlement to apply for Subsidiary Protection in the State in accordance with the European Communities (Eligibility for Protection) Regulations 2006 (S.I. No. 518 of 2006).

The person concerned submitted an application for Subsidiary Protection in the State in accordance with these Regulations and this application is under consideration at present. When consideration of this application has been completed, the person concerned will be notified in writing of the outcome. In the event that the Subsidiary Protection application is refused, the [537]case file of the person concerned, including all representations submitted, will then be considered under Section 3 (6) of the Immigration Act 1999 (as amended) and Section 5 of the Refugee Act 1996 (as amended) on the prohibition of refoulement. When this latter consideration has been completed, the case file is passed to me for decision.

30. Deputy Bernard J. Durkan asked the Minister for Community, Rural and Gaeltacht Affairs the number and location of community and rural transport schemes currently supported by his Department; his proposals to further development in this area; and if he will make a statement on the matter. [23220/09]

Minister for Community, Rural and Gaeltacht Affairs (Deputy Éamon Ó Cuív): My Department has provided funding under the Rural Development Fund for a pilot night-time rural transport scheme in seven areas of operation around the country. The scheme is being implemented by local development companies and community groups, namely West Cork Rural Transport, Avondhu Development Group (East Cork), Meath Accessible/Kilnaleck Community (Cavan), County Sligo Leader Partnership, Tumna Shannon Development Company (Roscommon), Síob Teoranta (Donegal) and Laois Trip. While current funding arrangements for the pilot scheme will shortly conclude I am open to considering whether alternative funding sources may be viable and in this regard I propose to meet with the relevant groups next week.

Under the Community Services Programme, my Department provides a contribution to the wages of employees engaged in the provision of rural transport services throughout the country. Funding is currently provided to projects in counties Cavan, Clare, Cork, Dublin, Galway, Kerry, Kildare, Kilkenny, Limerick, Mayo and Meath. It is my intention to continue to support these projects until the expiry of their current individual contracts, at which stage all contracts will be reviewed. As with all expenditure, applications for funding are considered in the light of available resources.

31. Deputy Bernard J. Durkan asked the Minister for Community, Rural and Gaeltacht Affairs his proposals to assist rural or urban groups here who may be involved in urban regeneration; and if he will make a statement on the matter. [23221/09]

37. Deputy Bernard J. Durkan asked the Minister for Community, Rural and Gaeltacht Affairs the full extent of the community based programmes currently run or funded by his Department; his plans to expand or extend such activity in 2009; and if he will make a statement on the matter. [23228/09]

38. Deputy Bernard J. Durkan asked the Minister for Community, Rural and Gaeltacht Affairs the number and nature of applications from various groups in County Kildare for grant aid under the RAPID or CLÁR programmes currently on hand; the degree to which it is intended to meet these requirements in full in 2009; and if he will make a statement on the matter. [23229/09]

39. Deputy Bernard J. Durkan asked the Minister for Community, Rural and Gaeltacht Affairs the extent to which urban or rural community groups in County Kildare are expected to qualify for grant aid under the various schemes run by his Department in 2009; and if he will make a statement on the matter. [23230/09]

[538]

41. Deputy Bernard J. Durkan asked the Minister for Community, Rural and Gaeltacht Affairs the extent to which he proposes to address issues such as anti-social behaviour by way of funding through the various schemes operated by his Department; and if he will make a statement on the matter. [23232/09]

42. Deputy Bernard J. Durkan asked the Minister for Community, Rural and Gaeltacht Affairs the extent to which he has addressed social or economic deprivation in urban or rural areas in County Kildare in 2009; his plans in this regard in the coming year; and if he will make a statement on the matter. [23233/09]

Minister for Community, Rural and Gaeltacht Affairs (Deputy Éamon Ó Cuív): I propose to take Questions Nos. 31, 37, 38, 39, 41 and 42 together.

As the Deputy will be aware, my Department implements and funds a wide range of measures, programmes and schemes covering the areas addressed by the Deputy in his questions. Details of all of the programmes and schemes operated by my Department, including guidelines and criteria and recipients of grant support, are available on my Department’s website at www.pobail.ie. All applications for funding received by my Department are assessed in line with the eligibility criteria of the relevant schemes and decisions made accordingly.

In relation to applications under the RAPID and CLÁR programmes, both generally and from applicants in Co. Kildare, in many cases funding is channelled through the Votes or allocations of other Departments, State bodies or local authorities, sometimes on a top-up basis. In many cases, the funding is in respect of programmes and projects for which those other organisations have responsibility and accountability, with the relevant data on applications and beneficiaries held by those public bodies. Given the large number of applications involved, and the other factors mentioned, the cost of assembling the information would be unjustifiably high and unrealistic. If the Deputy has a specific question about an application or project, I will be happy to deal with that or to refer him to the relevant organisation.

Against the background of the current economic reality and of the pressure on the public finances, my priority is to make every effort that front-line services provided through my Department, including urban regeneration, community-based programmes, anti-social behaviour etc, are prioritised. Although funding for some programmes operated by my Department has been reduced, I still expect a strong spend on such areas through programmes such as CLÁR and RAPID, which should ensure continued impact in these areas.

32. Deputy Bernard J. Durkan asked the Minister for Community, Rural and Gaeltacht Affairs the degree to which he will offer additional financial or other assistance to community based voluntary groups involved in combating drugs throughout County Kildare in 2009; and if he will make a statement on the matter. [23223/09]

33. Deputy Bernard J. Durkan asked the Minister for Community, Rural and Gaeltacht Affairs the degree to which he will offer additional financial or other assistance to community based voluntary groups involved in combating drugs in 2009; and if he will make a statement on the matter. [23224/09]

Minister of State at the Department of Community, Rural and Gaeltacht Affairs (Deputy John Curran): I propose to take Questions Nos. 32 and 33 together.

[539]As the Deputy is aware, funding applications for community and voluntary groups for drugs initiatives are made through the Local or Regional Drugs Task Forces. The allocation for the Drugs Task Forces for this year is of the order of €32m. Projects have been approved funding for the first six months of 2009 and this expenditure is currently under review before allocating the remaining funding for the second half of the year. My Department is working with the Task Forces to ensure that this funding is targeted in the most appropriate manner. Capital funding of around €4.5m will be available in 2009. This allocation will fund existing and some new initiatives under the Premises Initiative Fund and it will also complete the outstanding commitments under the once-off 2008 Regional Youth Initiative Fund.

Overall, I am satisfied that the funding being provided in 2009 by my Department will continue to facilitate the delivery of valuable community-based initiatives to help address problem drug use. Across Government, we are taking a number of difficult decisions, but our approach is to do this in as balanced a way as possible. There is a critical need to ensure that resources are directed in a targeted and effective manner and that the maximum benefit is achieved. I would like to assure the Deputy that my primary concern has been — and continues to be — the protection of front-line community-based services delivering vital programmes and initiatives in areas worst affected by problem drug use.

The Deputy will be aware that the Drugs Strategy is based on a co-ordinated approach across many Government Departments and Agencies and my Department’s allocation is part of a much bigger investment programme in drugs services by these other bodies. In 2008, it was estimated that total expenditure on drugs programmes was over €260m and initial indications are that this level will be broadly maintained in 2009.As outlined to you previously, the following allocations have been made to Co Kildare, which is part of the South West RDTF area:

Abbey Project— funding of €150,000 has been provisionally allocated in 2009 to provide a number of services such as drop-in, family support, referral, counselling, holistic therapies and advice and information on housing to drug users and their families from Celbridge and the surrounding areas;

Community Drug Team for Kildare and West Wicklow— for 2009, funding of €350,000 has been provisionally approved for this service which will expand and complement existing treatment services along with family support and early responses to young people at the early stage of drug misuse; and

Newbridge Family Resource Centre— an amount of €22,354 was approved in 2007 in respect of the purchase and installation of a semi-permanent structure for the Centre to provide a dedicated drop-in facility for “at risk” youth.

34. Deputy Bernard J. Durkan asked the Minister for Community, Rural and Gaeltacht Affairs the extent to which he expects to meet the challenge of rural depopulation; and if he will make a statement on the matter. [23225/09]

Minister for Community, Rural and Gaeltacht Affairs (Deputy Éamon Ó Cuív): The Government remains firm in its commitment to rural development. Strong, vibrant rural communities are essential to the well-being of the entire country and the mission of my Department — which is aimed at promoting and supporting the sustainable, inclusive development of such communities — is very relevant in this regard. In pursuit of my Department’s mission, we operate a wide range of schemes designed to tackle issues such as depopulation, deprivation [540]and social isolation. Details of all these schemes can be found on my Department’s website www.pobail.ie. If the Deputy has any specific questions about these schemes, I will be happy to answer them.

In addition, the Deputy will be aware that Ireland’s Rural Development Programme 2007-13 represents substantial investment in our rural areas and the agriculture sector. This Programme includes investment of €425m, which is 55% co-funded by the EU, towards improving the quality of life in rural areas and diversifying the rural economy. This investment is being rolled out through the network of local development companies who are implementing the various measures under the Programme.

35. Deputy Bernard J. Durkan asked the Minister for Community, Rural and Gaeltacht Affairs if he has had discussions with An Taisce or other Departments in the matter of rural housing and the need to meet the housing needs of the indigenous rural population along the lines of his previously expressed wishes; and if he will make a statement on the matter. [23226/09]

Minister for Community, Rural and Gaeltacht Affairs (Deputy Éamon Ó Cuív): As I indicated to the Deputy in my response to his question no. 181 of 29th April last, I have no statutory responsibility for rural housing. As stated in my previous reply, the National Spatial Strategy (NSS) addresses many of my concerns on issues such as rural housing. The rural settlement policy framework contained in the NSS, which represents overall Government policy on rural housing, aims to sustain and renew established rural communities while strengthening the structure of villages and smaller settlements to support local economies. In this way it seeks to ensure key assets in rural areas are protected to support quality of life and that rural settlement policies are responsive to the local circumstances of different areas.

In the course of my day-to-day business, I regularly have contact with Ministers of other Departments, Local Authorities and as the need arises, other bodies and organisations regarding rural development issues. I have had a discussion with an Taisce in this regard.

36. Deputy Bernard J. Durkan asked the Minister for Community, Rural and Gaeltacht Affairs the extent to which he will allocate funding from the proceeds of the dormant accounts fund in 2009 to County Kildare; and if he will make a statement on the matter. [23227/09]

Minister for Community, Rural and Gaeltacht Affairs (Deputy Éamon Ó Cuív): Disbursements from the Dormant Accounts Fund are designed to assist three broad categories of persons:

those affected by economic and social disadvantage;

those affected by educational disadvantage; and

persons with a disability.

Under the Dormant Accounts Acts, the Government is required to consider and approve proposals for disbursals from the Dormant Accounts Fund. In line with these statutory requirements, the Government will be asked to consider measures to be supported from the Fund in the coming months. Given the statutory requirements for the allocation of funds, it is not possible to indicate the number or value of successful applications that may be received or [541]approved to the benefit to County Kildare. Details of the 2009 Programme will be published when approved by Government.

Questions Nos. 37 to 39, inclusive, answered with Question No. 31.

40. Deputy Bernard J. Durkan asked the Minister for Community, Rural and Gaeltacht Affairs the areas within his Department most likely to be affected by recently announced financial constraints due to the downturn in the economy; and if he will make a statement on the matter. [23231/09]

Minister for Community, Rural and Gaeltacht Affairs (Deputy Éamon Ó Cuív): As the Deputy is aware, in the current economic circumstances, the Government was faced with difficult decisions in the recent Budget. Accordingly, it considered a range of measures to maintain a prudent fiscal outturn for 2009 and to provide the basis for a sustainable approach to the current financial situation. Across Government, our approach has been to do this in as balanced a way as possible. The revised 2009 allocation for my Department shows a gross reduction of €47.4m on the initial estimated allocation announced in October 2008. Full details of the reductions at an individual programme level are available in the recently published Revised Estimates Volume 2009, which is available on line via the following website address: http://www.finance.gov.ie/ViewDoc.asp?DocId=-1&CatID=13&m=f

€11.8m of my Department’s reduction relates to capital expenditure. This includes a transfer of some €2.5m to the Office of the Minister for Children and Youth Affairs relating to the Young People’s Facilities and Services Fund. The balance reflects adjustments in capital expenditure made in the package of measures announced by the Minister of Finance at end-January 2009. The priorities for capital expenditure in 2009 are reflected in the table, which summarises the position for my Department’s capital programme areas.

Capital Programme Area	2009 Budget Allocation	2009 REV Allocations	Reduction
	€000	€000	€000
Administration	680	610	-70
Developing Communities	14,000	13,340	-660
Tackling Problem Drug Use	8,100	4,591	-3,509
Rural Development	51,000	47,976	-3,024
Gaeltacht & Islands Development	59,070	55,332	-3,738
Promotion and Maintenance of the Irish Language	650	600	-50
North/South Co-operation	11,500	10,726	-774
Total	145,000	133,175	-11,825

In relation to current expenditure, there is a reduction of €35.6m, which includes a transfer of €17.4m to the Office of the Minister for Children and Youth Affairs for the Young People’s Facilities and Services Fund and a transfer of €2m to the Department of Arts, Sports and Tourism from Ciste na Gaeilge in relation to the Comhaltas CeoltóiríÉireann Regional Development Programme. The balance is made up of savings achieved mainly by the reduction of administration costs for my Department, the State agencies within its ambit, and community and voluntary organisations. The priorities for current expenditure in 2009 are reflected in the table, which summarises the position for my Department’s current programme areas:

Current Programme Area	2009 Budget Allocation	2009 REV Allocations	Reduction
	€000	€000	€000
Administration	18,778	18,347	-431
Developing Communities	161,650	149,976	-11,674
Tackling Problem Drug Use	53,000	36,020	-16,980
Rural Development	56,760	55,446	-1,314
Gaeltacht & Islands Development	31,630	30,586	-1,044
Promotion and Maintenance of the Irish Language	9,972	7,774	-2,198
North/South Co-operation	46,295	44,376	-1,919
Total	378,085	342,525	-35,560

In relation to the various programme areas of my Department, efforts have been made to minimise the effects on frontline services, where possible. This approach will continue in the context of the ongoing financial management of my Department’s Vote for the remainder of the year.

Questions Nos. 41 and 42 answered with Question No. 31.

43. Deputy David Stanton asked the Minister for Social and Family Affairs the procedures in place for the processing of appeals for jobseeker’s allowance and jobseeker’s benefit claims; the possibility of appeals decisions being processed initially in local offices to avoid unnecessary delay; and if she will make a statement on the matter. [23152/09]

Minister for Social and Family Affairs (Deputy Mary Hanafin): Procedures for the processing of all appeals, including appeals for Jobseekers Allowance and Jobseekers Benefit claims are laid down in legislation (Part 10, Chapter 2 of the Social Welfare Consolidation Act, 2005and the Social Welfare (Appeals) Regulations (SI 108/98)). These provisions require that an appeal against a formal statutory decision by a Deciding Officer of the Department may be made within 21 days of receipt of such a decision, but the Chief Appeals Officer has discretion to extend such period.

I am informed by the Social Welfare Appeals Office that on receipt of an appeal the Department, in accordance with the statutory requirements, is requested to supply the document in the case and the Deciding Officer’s comments on the grounds of the appeal. On receipt of these, the case is considered by an Appeals Officer who may decide a case by way of a summary decision based on the documentary evidence or may decide to hold an oral hearing. Oral hearings are granted at the discretion of the Appeals Officer, usually in circumstances where there is a conflict in evidence presented by the parties to the appeal or where an oral hearing is requested by the appellant in order to present his or her case.

An integral feature of the social welfare appeals system is that Appeal’s Officers’ determinations are made independently of the decisions being appealed. In that context, the question of appeals against jobseeker’s benefit and allowance decisions being processed initially in local offices of the Department which are responsible for the decisions in the first place does not arise. However, the legislation offers applicants who are dissatisfied with a decision by a Deciding Officer a right of review of that decision if they can provide new facts or fresh evidence [543]after the original decision on their claim and all applicants who receive an adverse decision are advised of their right to have their claim reviewed.

If revised decisions, deemed satisfactory by the applicant, are made by Deciding Officers in these circumstances, an Appeals Officer’s decision is not necessary. If still dissatisfied with the outcome of such a review, an appeal may be made to the Social Welfare Appeals Office which then proceeds in the normal way.

44. Deputy Olwyn Enright asked the Minister for Social and Family Affairs, further to Parliamentary Question No. 316 of 26 May 2009, the percentage of appeals to the social welfare appeals office upheld divided into all categories from 2007 to date in 2009; and if she will make a statement on the matter. [23173/09]

Minister for Social and Family Affairs (Deputy Mary Hanafin): The statistics required by the Deputy are attached in tabular form. I am advised by the Social Welfare Appeals Office that the table comprises cases which have been allowed either in full or partially and includes cases which have been determined by Appeals Officers and cases which have been revised by Deciding Officers of the Department (following receipt of an appeal). The very high (100%) or low (0%) percentages for some of the schemes are influenced by the very low numbers of appeals determined for those particular schemes. In fact, in the case of some of the cases with 0%, there may not have been any determinations at all.

Percentage of Appeals Allowed and Partially Allowed (by Scheme)

	2007	2008	2009 (to 31/5/2009)
	%	%	%
Adoptive Benefit	50.00	100.00	0
Blind Pension	26.70	33.30	33.40
Carers Allowance	52.70	52.00	44.80
Carers Benefit	34.60	38.40	47.00
Child Benefit	41.00	44.20	52.50
Disability Allowance	53.40	53.80	56.00
Illness Benefit	61.40	61.30	64.80
Deserted Wives Allowance	50.00	50.00	0
Deserted Wives Benefit	10.00	38.50	50.00
Farm Assist	44.70	47.50	39.30
Bereavement Grant	15.00	30.30	21.10
Family Income Supplement	47.50	46.60	48.10
Invalidity Pension	69.76	61.29	59.62
Liable Relatives	55.50	33.30	27.30
One Parent Family Payment	45.89	41.45	40.30
Maternity Benefit	26.70	41.20	33.30
State Pension (Contributory)	20.70	27.50	33.30
State Pension (Non-Contributory)	45.30	45.10	37.60
State Pension (Transition)	21.90	13.00	16.70
Occupational Injury Benefit	51.00	28.60	30.80
Occupational Injury Benefit (Medical)	40.60	48.20	75.00
Disablement Pension	68.00	62.40	56.30
Incapacity Supplement	53.90	53.40	0
Guardian’s Payment (Contributory)	80.00	60.00	33.30
Guardian’s Payment (Non-Contributory)	42.90	0	50.00
Pre-Retirement Allowance	35.70	72.80	0
Jobseeker’s Allowance (Means)	32.00	40.60	50.10
Jobseeker’s Allowance	28.10	27.90	32.20
Jobseeker’s Benefit	37.50	38.60	43.90
JA/JB Fraud Control	40.80	21.20	0
Rent Allowance	0	100.00	0
Respite Care Grant	51.10	49.80	33.70
Insurability of Employment	25.60	15.40	19.50
Supplementary Welfare Allowance	27.60	34.00	24.50
Treatment Benefits	28.60	23.10	0
Survivor’s Pension (Contributory)	19.10	11.80	44.40
Survivor’s Pension (Non-Contributory)	27.80	53.30	12.50

45. Deputy Bernard J. Durkan asked the Minister for Social and Family Affairs when jobseeker’s benefit will be awarded in the case of a person (details supplied) in Dublin 22; and if she will make a statement on the matter. [23189/09]

Minister for Social and Family Affairs (Deputy Mary Hanafin): The person concerned made an application for jobseeker’s allowance on 11 February 2009. Under a pilot scheme for new claimants aged between 18 and 19 years she was referred directly to FÁS for a 6 week training programme. The Department was subsequently advised by FÁS that the person concerned was unable to attend the course. Outstanding issues regarding her availability for employment and her means assessment have now been finalised and a decision will be made on her claim shortly.

46. Deputy Olwyn Enright asked the Minister for Social and Family Affairs the level of co-operation that exists between her Department and FÁS; the role of the facilitator; and if she will make a statement on the matter. [23201/09]

Minister for Social and Family Affairs (Deputy Mary Hanafin): A high degree of cooperation and coordination exists at both policy and operational level between the Department of Social and Family Affairs and FÁS. Both sides operate under a memorandum of understanding which is updated periodically. Senior officials of the department hold regular joint meetings with FÁS and the Department of Enterprise Trade and Employment. There are also regular meetings between officials of the Department and FÁS at regional and local level. The Department works closely with FÁS in providing opportunities for people on social welfare to access the range of training and employment services afforded by that organisation. An important area of this cooperation is in relation to the joint National Employment Action Plan whereby people are referred to FÁS when they reach 3 months on the live register.

The Department’s facilitators work with social welfare recipients of working age, including people in receipt of jobseekers payments, people parenting alone, people in receipt of disability welfare payments and people providing care, to promote participation and social inclusion. The current economic climate has determined that a large part of a facilitator’s work at present is with people on the live register.

[545]Facilitators work with customers to identify appropriate training or development programmes which will enhance the skills that the individual has and ultimately improve their employment chances, as well as help them continue to develop personally. Facilitators develop individual progression plans with the customer. Facilitators are located throughout the country and are assigned to cover a geographical area. Facilitators work closely with FÁS and other agencies at a local level to identify and target appropriate education, training and development opportunities.

A facilitator also deals with referrals from local offices, the department’s inspectorate and people in receipt of social welfare payments who may themselves decide to seek the service of a facilitator. The facilitator service may also be sought by someone who has a business idea, who wishes to avail of the back to work enterprise allowance or by someone who intends to return to education under the back to education programme. In addition, one of the roles of the departments facilitator’s is to engage with other agencies to enhance local working relationships and to ensure that agencies work together to provide services to customers in receipt of welfare payments. Facilitators are also engaged in extensive information provision to individuals, organisations and communities, about the services of the department.

As a complement to the local referral system, a formal targeted programme of activation was introduced under the National Development Plan (NDP). Under this programme, the Department actively selects cases for referral to facilitators. Facilitators work in co-operation with other relevant service providers such as FÁS, VECs, the Adult Education Guidance Initiative, the HSE and other local agencies. The number of facilitators in place, their workload, and the effectiveness of the service will continue to be monitored under the National Development Plan (NDP).

47. Deputy Olwyn Enright asked the Minister for Social and Family Affairs the number and percentage of people referred to FÁS in 2008; the number and percentage of people referred to FÁS who have left the live register; the number and percentage of people referred to FÁS who remain on the live register; and if she will make a statement on the matter. [23202/09]

Minister for Social and Family Affairs (Deputy Mary Hanafin): The National Employment Action Plan, operated jointly with FÁS, is the main activation measure for jobseekers. It has been in operation since 1998 and has proven successful in that period in assisting people on the live register back into employment. It provides for a systematic engagement of the employment services with unemployed people.

In the period January to end of December, 2008 a total of 60,260 persons were referred to FÁS — this is an increase of 17% (8,808) over the same period in 2007.

33,919 (56%) of the total referred had left the Live Register by the end of January 2009.

26,341 (44%) of the total referred were still on the Live Register at the end of January 2009.

The Employment Action plan process is a key element in addressing the progression needs of those on the Live Register. It provides a stimulus to job search and affords an opportunity to explore, under professional guidance, the full range of employment and training services offered by FÁS.

48. Deputy Olwyn Enright asked the Minister for Social and Family Affairs the details on the job search programme, which is being undertaken by FÁS in co-operation with her Department; the way it operates; the number of referrals; the number of people placed in employment; and if she will make a statement on the matter. [23203/09]

[546]Minister for Social and Family Affairs (Deputy Mary Hanafin): The National Employment Action Plan/Job Search, operated jointly with Fás, is the main activation measure for jobseekers. This strategy provides for systematic engagement by the FÁS employment services with unemployed people and is a key element of the Government’s labour market policy. Under the Plan, all persons between the ages of 18 and 65 years who is approaching 3 months on the Live Register, are identified by the Department of Social and Family Affairs and referred to FÁS for interview with the aim of assisting them to enter/re-enter the labour market. Fás also provides a range of certified, short, flexible, modular programmes designed to upskill redundant workers so that they can enhance their prospects of securing employment.

The Employment Action plan process is fundamental in addressing the progression needs of those on the Live Register. It provides a stimulus to job search and affords an opportunity to explore, under professional guidance, the full range of employment and training services offered by FÁS. In the period January to end of December, 2008 a total of 60,260 persons were referred to FÁS. 40,933 (68%) were interviewed by FÁS and 7,846 were placed in jobs, training or education. In the period January to end of March, 2009 (the latest date for which figures are available), 16,740 approx. persons were referred to FÁS. Some 12,580 (75%) of those referred were interviewed by FÁS and 1074 (6.4%) were placed in jobs, training or education.

In response to the increase in the unemployment, Job Search/National Employment Action Plan has now nearly doubled for 2009 from 6,500 to 12,250 cases per month. This represents an unprecedented increase in capacity for this programme.

49. Deputy Olwyn Enright asked the Minister for Social and Family Affairs the amount of money spent on and the number of people in receipt of the back to education allowance, back to work enterprise allowance, back to work allowance in April 2009; the community employment scheme payment, training allowances and other FÁS training payments; and if she will make a statement on the matter. [23205/09]

Minister for Social and Family Affairs (Deputy Mary Hanafin): There is a range of education and employment supports available to people in receipt of social welfare payments. These initiatives are designed to assist them in returning to the active labour force. Included in these measures are the back to work allowance and back to education allowance schemes. In April 2009 there were 11,646 people in receipt of the back to education allowance for the 2008/2009 academic year. The provisional expenditure on the scheme for April 2009 was €9.97 million.

At week ended 24th April 2009 the total number of participants in the Back to Work Allowance scheme was 7,248. This included two strands, the Back to Work Enterprise Allowance with 4,225 and the Back to Work Allowance (Employee) with 3,023. The provisional expenditure is not broken down between the two strands but the total for the scheme for April 2009 was €5.07 million. FÁS offers a range of training courses suited to the needs of both jobseekers looking for employment and employees wishing to improve their skills. Data for April 2009 in respect of the number of people and expenditure on the community employment scheme, training allowances and other FÁS training payments is not available to this Department.

50. Deputy Olwyn Enright asked the Minister for Social and Family Affairs the percentage of the number of people referred to FÁS in 2008 and to date 2009; the percentage who attended for interview; the percentage who were placed in FÁS employment, training or education; the percentage who were interviewed and for whom no further action was taken; the follow-up or intervention taken on those who do not avail of FÁS services; if there is an obligation on [547]referrals to take up education or training; and if she will make a statement on the matter. [23206/09]

a total of 60,260 persons were referred to FÁS

40,933 (68%) of the total referred were interviewed by FÁS

7,846 (13%) of the total referred were placed in jobs, training or education

21,089(35%) of the total referred were interviewed but not placed in jobs, training or education.

In the period January to end of March, 2009 (the latest date for which figures are available):

a total of 16,739 persons were referred to FÁS

12,582 (75%) were interviewed by FÁS

1074 (7% of the total referred) were placed in jobs, training or education.

9,514 ( 76%) were interviewed were not placed in jobs/training/education (57% of the total referred )

By the end of January, 2009 33,919 ( 56%) of the total referred in 2008 had left the Live Register. By the end of April, 2009 4,961 (30%) of the total referred in the period January to March 2009 had left the Live Register. These figures reflect both the effectiveness of the NEAP and current trends in the labour market.

People remain on the live register while engaged with FÁS under the NEAP until they take up offers of employment or training. If they do not attend for interview with FÁS, or having engaged with FÁS decline offers of employment or training, their cases are referred back to the social welfare local office for review to determine if they continue to satisfy the conditions for receipt of jobseekers payments. There is a statutory obligation on recipients of Jobseekers payments to be available for and genuinely seeking full time employment.

People, who, for valid reasons, are unable to avail of the opportunities for placement in employment, training or education provided by FÁS, continue to receive payment. In such cases, the Department’s facilitator service is available to assist them in identifying barriers to participation and exploring alternative progression routes. I consider that National Employment Action Plan plays an important role in assisting unemployed persons enter or return to the labour force.

51. Deputy Olwyn Enright asked the Minister for Social and Family Affairs the locations at which job facilitators are based; the social welfare offices that do not have a job facilitator; the average waiting time to access a job facilitator; and if she will make a statement on the matter. [23207/09]

Minister for Social and Family Affairs (Deputy Mary Hanafin): Facilitators work closely with Fás and other agencies at national and local level, to identify appropriate training and developmental programmes social welfare recipients of working age to enhance the skills those [548]individuals have and ultimately improve their employment chances as well as help them continue to develop personally. The facilitator service is available locally to all social welfare recipients via the local office network. When a person wishes to see a facilitator, the relevant facilitator is notified, and an appointment is scheduled for the person. The locations where facilitators are based are set out in the attached table.

In the current economic climate the demand for the facilitator service is elevated and waiting times to see a facilitator may vary nationwide. Actual waiting times for individual facilitators are not available. Facilitators make every effort to contact all interested recipients as quickly as possible. Additional resources provided to the facilitator network under the NDP are helping to ensure that the facilitator service is more responsive to the needs of customers.

Locations of Facilitators

Region

Dublin North — Ballymun; Blanchardstown; Coolock; Finglas; Kilbarrack; Navan Road; North Cumberland Street; Swords.

Dublin South — Ballyfermot; Bishop’s Square; Clondalkin; Dunlaoghaire; Maynooth; Nutgrove; Tallaght; Thomas Street.

North East — Cavan; Drogheda; Dundalk; Longford; Monaghan; Mullingar; Navan.

North West — Buncrana; Donegal Town; Dungloe; Letterkenny; Sligo.

Mid West — Clonmel; Ennis; Limerick; Portlaoise; Tullamore.

South East — Bray; Carlow; Kilkenny; Newbridge; Waterford; Wexford.

Southern — Cork City; Killarney; Mallow; Tralee.

Western — Athlone; Ballina; Castlebar; Galway; Tuam.

52. Deputy Olwyn Enright asked the Minister for Social and Family Affairs the number of staff deployed to social welfare offices to deal with the increase in social welfare applications; the total number in situ; the location of these staff; the length of time it takes to train staff; and if she will make a statement on the matter. [23208/09]

Minister for Social and Family Affairs (Deputy Mary Hanafin): During the period May to December 2008 an additional 158 staff were assigned to local offices to deal with the increased volume of claims. With the exception of Cork local office all but two of these staff are now in place and arrangements are in train to assign the outstanding 2 staff. In the case of Cork local office, some of the additional posts are been covered by way of temporary staff, until permanent staff are assigned. A number of offices have a particularly high volume of claims awaiting a decision. In order to deal with this, 32 additional temporary staff were recruited with effect from 2 March 2009 to support these offices. Details of the locations of the additional local office staff are set out in Table 1 attached.

At the beginning of June it was decided to recruit a further 55 temporary staff for various local offices around the country, pending the reassignment of permanent staff from other departments. As many local offices are very close to capacity as regards accommodating further staff, the Department has established a number of central decision units around the country. [549] Five such units have been set up in Dublin, Sligo, Finglas, Carrick-on-Shannon and Roscommon, which will comprise of a total of 57 staff. Currently 49 of these staff are in place.Work has recently commenced on setting up further units in Tallaght and Wexford.

There is a significant training overhead associated with staff coming into local offices due to the complex nature of the jobseekers schemes. This is particularly so when a person is coming from another department and may not have any Social Welfare background whatsoever. While a certain amount of formal training is provided, the bulk of the training is “on-the-job”. It takes many months for a deciding officer to get up to speed with all the various aspects of the schemes administered in local offices. In the meantime they rely on assistance from their more experienced colleagues to guide them in the learning process. Consequently, there is a certain amount of lost productivity while new staff acquire the necessary expertise of experienced deciding officers.

In addition, 16 Social Welfare Inspectors were allocated and 15 of these staff have been assigned to various locations throughout the country to undertake means testing and other work associated with processing claims for the jobseekers allowance. Details of the locations of the additional inspectors are set out in Table 2 attached. The outstanding assignment will be made in the coming weeks. Also, arrangements are now in train to assign a further 24 inspectors throughout the country.

Table 1

Local Office	Additional staff assigned	Temporary staff assigned	Total
Cork	12		12
Limerick	9	2	11
Newbridge	8	2	10
Waterford	9		9
Galway	9	2	11
Bishops Square	4	2	6
Clondalkin	5		5
Dun Laoghaire	4	2	6
Tallaght	5		5
Navan	4	2	6
Blanchardstown	5	2	7
Bray	3	2	5
Coolock	3		3
Drogheda	4	2	6
Cumberland St	3		3
Nutgrove	3		3
Tralee	3		3
Wexford	6		6
Kilkenny	3	2	5
Ennis	4		4
Carlow	3	2	5
Finglas	3		3
Letterkenny	3		3
Tullamore	3	2	5
Newcastlewest	3		3
Sligo	3		3
Cavan	2	2	4
Longford	2	2	4
Ballyfermot,	2	2	4
Clonmel	2		2
Kilbarrack	2		2
Navan Rd	2		2
Swords	2		2
Athlone	2		2
Buncrana	2		2
Dundalk	2		2
Mullingar	2		2
Arklow	2		2
Apollo	1		1
Ballymun,	1		1
Loughrea,	1	2	3
Thomas St	1		1
Ballina	1		1
Carrick-on-Shannon	1		1
Castlebar	1		1
Dungloe	1		1
Listowel	1		1
Thurles	1		1
Total	158	32	190

Table 2

Additional Inspectors Assigned	Number
Finglas	2
Tallaght	1
Clondalkin	1
Mullingar	1
Drogheda	1
Buncrana	1
Letterkenny	1
Galway	1
Castlebar	1
Tullamore	1
Limerick	1
Cork	1
Tralee	1
Carlow	1
Enniscorthy	1
Total	16

53. Deputy Ciarán Lynch asked the Minister for the Environment, Heritage and Local [551]Government the progress to date on the development by each local authority of an incident management plan; if all risks to life, property, heritage and the environment have been assessed; if appropriate control measures have been put in place to deal with all identifiable risks; if he will confirm that sufficient resources are provided to deal with identifiable risks and that equipment and safe systems of work are risk assessed by competent persons; if he will further confirm that review committees have been established in all local authorities and that best practice systems are being established; and if he will make a statement on the matter. [23149/09]

Minister for the Environment, Heritage and Local Government (Deputy John Gormley): The Framework for Major Emergency Management, which was approved by the Government in 2006, introduced an integrated emergency management process comprised of five stages: hazard analysis, mitigation, planning and preparedness, response and recovery. Under the Framework, each of the county and city councils has had, since September 2008, a new format Major Emergency Plan. In this context, each local authority has undertaken a risk assessment based both locally for their functional area and regionally with the other principal response agencies, An Garda Síochána and the Health Service Executive. This risk assessment process is based on the guidance in the Framework document and the additional guidance in ‘A Guide to Risk Assessment in Major Emergency Management’. Mitigation measures have also been considered in this context.

The purpose of the Framework is to take a realistic approach to the level of preparedness of the principal response agencies. Each principal response agency’s preparedness should enable it to respond effectively to the scenarios that it is most likely to encounter. The emphasis of the Framework is on bringing the full capacity of the principal response agencies to bear effectively on a major emergency situation and extending where necessary rather than creating extra capacity for very unlikely scenarios. The scenarios identified in the risk assessment are used to guide the required level of response preparedness. Each local authority has undertaken a self-assessment appraisal of its level of preparedness in accordance with the requirements of the Framework. The appraisals have been validated by my Department and feedback has been provided to each local authority.

54. Deputy Richard Bruton asked the Minister for the Environment, Heritage and Local Government the status of Dublin Bay’s plan to infill 52 acres of Dublin Bay; the result of Dublin Port’s appeal against the implementation of a special protection order on Dublin Bay; and if he will make a statement on the matter. [23191/09]

Minister for the Environment, Heritage and Local Government (Deputy John Gormley): Dublin Port Company has lodged an appeal against the inclusion of an area of Dublin Bay within the proposed South Dublin Bay and Tolka River Estuary Special Protection Area. I understand that this area corresponds to an area of Dublin bay that the Port Company has proposed to infill as part of an application currently before An Bord Pleanála. I am informed that the Port Company has been contacted recently by the Secretary of the Designated Areas Appeals Advisory Board with a view to scheduling the appeal hearing. I expect that the Board will be in a position to conduct the hearing and make its recommendations to me shortly.

55. Deputy John Deasy asked the Minister for the Environment, Heritage and Local Government his plans to extend the terms of the incentivised career break scheme for civil servants to employees of local authorities; and if he will make a statement on the matter. [23200/09]

[552]Minister for the Environment, Heritage and Local Government (Deputy John Gormley): The incentivised career break scheme for civil servants has been extended via Circular 08/2009: Special Local Authority Incentive Career Break Scheme 2009 to the local authority sector.

56. Deputy Paul Gogarty asked the Minister for the Environment, Heritage and Local Government if he will review the new emissions based car tax system as it applies to disabled drivers, with a view to raising the cap in view of the problems caused by increased costs to disabled drivers as a result of the new scheme and the fact that they would have less choice available in choosing a more environmentally friendly car (details supplied); and if he will make a statement on the matter. [23213/09]

Minister for the Environment, Heritage and Local Government (Deputy John Gormley): The cap referred to in the question relates to the maximum relief in respect of VRT and VAT for a driver under the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations, 1994 administered by the Revenue Commissioners on behalf of the Minister for Finance. The Regulations also provide for exemption for motor tax and this facility has not been affected by the move to the CO2 based motor tax system.

57. Deputy Michael Ring asked the Minister for Agriculture, Fisheries and Food when a herd number will be transferred to a person (details supplied) in County Mayo. [23178/09]

Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): The person concerned submitted documents regarding the transfer of Entitlement under the Single Payment Scheme to my Department’s office in Portlaoise. On 5 May, my Department advised the person to contact her local District Veterinary Office with regard to the transfer of the herd number. In order for this herd number to be transferred, a completed application for registration as a keeper of animals under the Disease Eradication Schemes must be submitted to the District Veterinary Office. No such application has been received from the person concerned. The relevant form (Form ER1) is available from the DVO at Michael Davitt House, Castlebar. Following receipt of a completed Form ER 1, the herd number can then be transferred, provided that my Department is satisfied that all the relevant criteria have been complied with.

58. Deputy Brian O’Shea asked the Minister for Agriculture, Fisheries and Food the number of foreshore licences outstanding in regard to the Waterford grouped towns and village sewerage schemes; when it is proposed to issue these licences (details supplied); and if he will make a statement on the matter. [23185/09]

Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): The current position regarding foreshore applications in respect of waste water treatment schemes received from Waterford County council is set out below.

Dunmore East — Outfall from SW/SW and WWTP

Draft specific conditions were issued to the Council in respect of these two applications. The Council proposed amendments to the specific conditions included in the draft licences. Following examination of the Council’s request by my Department’s technical advisors, revised draft specific conditions in respect of the Stormwater/Surfacewater outfall were issued on 17 [553]November 2008. Revised draft specific conditions in respect of the Wastewater Treatment Plant were issued to the Council on 4 December 2008. A response is awaited from the Council.

Dungarvan Sewerage Scheme

Draft specific conditions in respect of this application were issued to the Council in August 2008. A response is awaited. Outfall from SW/SW Collection system and WWTP at Ardmore, Cappoquin and Stradbally.

Additional information has been provided by the Council in respect of their WWTP proposals at Ardmore, Cappoquin and Stradbally. The information supplied is being assessed by my Department and a communication will issue to the Council shortly regarding the information supplied.

59. Deputy Paul Connaughton asked the Minister for Agriculture, Fisheries and Food if a person (details supplied) in County Galway is entitled to an award from the estate of a person; if so, if such entitlements will be made available for 2009; and if he will make a statement on the matter. [23193/09]

Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): An application was received on the 15 May 2009 requesting the transfer of 7.13 Single Payment entitlements from the second person named to the first person named by way of lease. The rightful beneficiaries of the estate must first inherit the entitlements and they may then lease them to a third party. The process of inheriting the entitlements has been initiated. Once complete, the first person named may amend his application under the 2009 scheme to lease these entitlements from the beneficiaries.

60. Deputy Seán Power asked the Minister for Education and Science the reason part-time tutors, programme co-ordinators and administration staff for the adult education service in the vocational education committees are being deducted pension levy even though they are not part of a superannuation scheme and are not facilitated under the public service superannuation Act. [23166/09]

Minister of State at the Department of Education and Science (Deputy Seán Haughey): Vocational Education Committees (VECs) employ staff on a full-time and part-time basis to deliver various adult education courses and programmes. Under Section 2 of the Financial Emergency Measures in the Public Interest Act 2009 a person is liable to pay the pensions-related deduction if he or she is a public servant on or after the 1 March 2009 and is a member of a public service pension scheme, is entitled to a benefit under the scheme or receives a payment in lieu of membership of such a scheme.

Individuals who are not entitled to a pension benefit from their employment may also be liable in certain circumstances for the levy if they are a member of another public service pension scheme, are entitled to a preserved benefit of another such scheme, are in receipt of a pension under such a scheme, are entitled to a non-pensionable gratuity under that scheme or are financially compensated in lieu of one of those benefits.The levy should also be applied where service is being accumulated for the purposes of a non-pensionable gratuity. As the employer, it is the VECs which are responsible for the terms and conditions and other pay related issues of the staff they employ.

61. Deputy Pat Breen asked the Minister for Education and Science if he will report on the cost of providing school transport for the re-sitting of the leaving certificate English paper; and if he will make a statement on the matter. [23242/09]

Minister of State at the Department of Education and Science (Deputy Seán Haughey): The actual cost of providing school transport services on Saturday the 6th June, 2009 is not yet available. However, Bus Éireann estimate that the cost will be in the region of €750,000.

62. Deputy Ciarán Cuffe asked the Minister for Education and Science the position in relation to correspondence regarding a school (details supplied) in County Dublin; and if he will make a statement on the matter. [23150/09]

Minister for Education and Science (Deputy Batt O’Keeffe): The correspondence to which the Deputy refers has been received in my Department and it will be responded to shortly. With regard to the subject matter of the correspondence, my Department procured the property in question initially to act as a temporary home for a special school pending the delivery of a building project for that school and then to accommodate, on a permanent basis, the school to which the Deputy refers. The building project for the special school is currently in the early stages of architectural planning. I have announced details of my Department’s capital programme for 2009. The project for the special school is not included in this programme. Therefore, it is unlikely that it will be progressed in 2009.

The progression of all large scale building projects, including this project, from initial design stage through to construction phase will be considered in the context of my Department’s multi-annual School Building and Modernisation Programme. However, in light of the current competing demands on my Department’s capital budget, it is not possible to give an indicative timeframe for the progression of the project at this time. In the circumstances, it is not possible, at this point, to say when the school to which the Deputy refers can move into the building

63. Deputy David Stanton asked the Minister for Education and Science, further to Parliamentary Question No. 309 of 24 June 2008, the progress he has made in relation to the provision of primary school places in Youghal, County Cork; if the forward planning section has completed its examination of schools and identified the locations at which significant accommodation is required at primary schools in Youghal; if decisions have been made as a result; and if he will make a statement on the matter. [23151/09]

Minister for Education and Science (Deputy Batt O’Keeffe): My Department provided devolved funding in 2008 for an extension project at a school in the Youghal area. The progression of other projects in this area will be considered in the context of my Department’s multi-annual School Building and Modernisation Programme.

Forward Planning Section of the Department is continuing the process of identifying the areas where significant additional accommodation will be required at primary and post-primary level for the coming years. Factors under consideration include population growth, demographic trends, current and projected enrolments, recent and planned housing developments and capacity of existing schools to meet demand for places. Having considered these factors decisions will be taken on the means by which emerging needs will be met within an area. [555] Educational accommodation requirements in the Youghal area will be fully considered in this context and it is expected that this examination will be completed in coming months.

64. Deputy Liz McManus asked the Minister for Education and Science the reason, in view of the report of the Commission to Inquire into Child Abuse, an institution (details supplied) in County Wicklow was not deemed a named institution under the redress board despite complaints that were made regarding abuse in this State-run institution; the steps he will take to ensure that those who suffered abuse in this institution are compensated by the State; the measures he will take to address this omission; and if he will make a statement on the matter. [23160/09]

Minister for Education and Science (Deputy Batt O’Keeffe): I wish to advise the Deputy that under the terms of Section 4 (1) of the Residential Institutions Redress Act, 2002, the Minister for Education & Science may, by order, provide for the insertion in the Schedule of any industrial school, reformatory school, orphanage, children’s home, special school which was established for the purpose of providing education services to children with a physical or intellectual disability or a hospital providing medical or psychiatric services to people with a physical or mental disability or mental illness in which children were placed and resident and in respect of which a public body had a regulatory or inspection function.

Consequently, and having regard to the prescribed legislation, there is no provision or mechanism for me to include this particular category of home on the Schedule to the Redress Act. I should, however, point out that a person’s ineligibility to be considered for an award under the terms of this scheme does not effect their statutory right to pursue other legal avenues which may be open to them.

65. Deputy Liz McManus asked the Minister for Education and Science the position regarding the provision of a new school in respect of a school (details supplied); if his attention has been drawn to the fact that the most recent reading of lead contamination in the water is 409 and that it should read 25 and that the local authority has stated that it is not responsible for the pipes from the meter from the school; the steps he will take to address this situation; his views on whether a new building is the best solution for the school; and if he will make a statement on the matter. [23161/09]

Minister for Education and Science (Deputy Batt O’Keeffe): The building project for the school referred to by the Deputy is at an advanced stage of architectural planning. The progression of all large scale building projects, including this project, from initial design stage through to construction phase will be considered in the context of my Department’s multi-annual School Building and Modernisation Programme. However, in light of current competing demands on the capital budget of my Department, it is not possible to give an indicative timeframe for the further progression of the project at this time.

Individual school authorities are responsible in the first instance for health and safety issues relating to schools. My Department has recently been contacted by the school regarding the water supply. The school authority has been advised that it may apply to the Planning and Building Unit of my Department for emergency works funding for capital works of an urgent nature. Grants from this fund are available for very urgent works, primarily of a health and safety nature, to schools that require them.

66. Deputy Aengus Ó Snodaigh asked the Minister for Education and Science if the siblings of Irish citizens are entitled to access third level education on the basis of fulfilling the three years residence requirement or if they are treated as international students subject to overseas rates. [23171/09]

Minister for Education and Science (Deputy Batt O’Keeffe): I presume the Deputy is referring to my Department’s Free Fees Initiative scheme in which there is a three year residency clause as part of the eligibility criterion. Currently, under the terms of the Free Fees Initiative the Exchequer meets the tuition fees of eligible students who are pursuing full-time undergraduate courses of study. The main conditions are that students must be first-time undergraduates and hold E.U. nationality, in their own right, and have been ordinarily resident in an E.U. Member State for at least three of the five years preceding their entry to an approved third level course.

The residency requirement applies to all E.U. nationals, including Irish nationals in accordance with the judgement of the European Court of Justice that access to vocational training must apply equally to all E.U. nationals. Where students do not meet the eligibility criteria of the Free Fees Initiative such students must pay the appropriate tuition fee as determined by the institution. Third level institutions are autonomous bodies and, as such, the level of fees to be charged are a matter for the institution in such cases. I have no role in this matter.

67. Deputy Frank Feighan asked the Minister for Education and Science if he will ensure persons (details supplied) in County Leitrim will not lose their special needs assistants in September 2009. [23215/09]

Minister for Education and Science (Deputy Batt O’Keeffe): As the Deputy will be aware, the National Council for Special Education (NCSE) is responsible, through its network of local Special Educational Needs Organisers (SENOs), for allocating resource teachers and Special Needs Assistants (SNAs) to primary and post primary schools to support children with special needs. The NCSE operates within my Department’s criteria in allocating such support. All schools have the names and contact details of their local SENO. Parents may also contact their local SENO directly to discuss their child’s special educational needs, using the contact details available on www.ncse.ie. I have arranged for the information provided by the Deputy to be forwarded to the NCSE for their direct reply.

68. Deputy Frank Feighan asked the Minister for Education and Science his views on making amendments to the annual financial turnover requirement from registered builders by his Department when tendering for school building projects in view of the downturn in the economy and to ensure equality among registered qualified builders. [23218/09]

Minister for Education and Science (Deputy Batt O’Keeffe): Economic and Financial Standing is one of the criteria laid down in the EU Procurement Directives for pre-selection of contractors tendering for building contracts. Contracting Authorities have an obligation to ensure that, as part of suitability assessment for placing on tender lists for projects, contractors have adequate economic and financial capacity. One of the key criteria for assessing financial and economic capacity is the average annual turnover of the contracting company over the previous three years. The purpose of this is to ensure that the firm has adequate capacity and [557]will not be overstretched if it is successful in winning the tender competition. Turnover is the measure of financial and economic standing consistently used across the public sector.

The turnover requirement for school building projects has been reduced from 2.5 times the estimated contract value in 2007 to twice the estimated contract value in 2009 and this is also reduced pro-rata for projects exceeding 12 months in duration (e.g. 1.5 times the estimated contract value for an 18 month contract). With pre-tender estimates (on which the turnover requirement is calculated) also reflecting the significantly reduced tender levels, this also serves to reduce, on an ongoing basis, the turnover threshold for contractors applying for projects.

69. Deputy Bernard J. Durkan asked the Minister for Education and Science when a school placement will be offered to a person (details supplied) in County Kildare; and if he will make a statement on the matter. [23234/09]

Minister for Education and Science (Deputy Batt O’Keeffe): I wish to advise the Deputy that the enrolment of a child in a school is a matter in the first instance for the parents of the child and the Board of Management of the school concerned. My Department has no role in relation to processing applications for enrolment in schools. Where a school refuses to enrol a pupil, the school is obliged to inform parents of their right under Section 29 of the Education Act 1998 to appeal that decision to the Secretary General of my Department. Where an appeal under Section 29 is upheld, the Secretary General of my Department may direct a school to enrol a pupil.

As the Deputy will be aware, the National Council for Special Education (NCSE), through the local special educational needs organisers (SENOs), is responsible for processing applications from primary and post primary schools for special educational needs supports. The NCSE operates within my Department’s criteria in allocating such support. The responsibility also includes identifying appropriate educational placements for individual children with special educational needs.

My Department encourages parents and school authorities to engage locally regarding pupils’ education. It is open to the parents concerned to raise any queries they may have relating to their child’s special educational needs directly with the school authorities or with the local SENO. The parent may contact the SENO using the contact details available on www.ncse.ie. Meanwhile, I understand that the child in question has been sanctioned 20 hours home tuition per week by my Department.

70. Deputy Pat Breen asked the Minister for Education and Science his views on the presentation to leaving certificate students of the incorrect English paper; the cost involved in re-organising the sitting of this paper; and if he will make a statement on the matter. [23241/09]

Minister for Education and Science (Deputy Batt O’Keeffe): The superintendent who distributed English Paper 2 instead of English Paper 1, did not carry out any of the following documented procedures correctly — the checking of the label on the exam packet, the checking of the exam paper, the checking of each exam paper in the packet, and the sign off by 2 students that this was the correct paper for the session. This is in spite of the fact that the superintendent has to formally sign a checklist that he has undertaken these procedures. Furthermore, he made no report on the matter to the Principal or the State Examinations Commission (SEC). A SEC inspector visited the centre on a random monitoring visit shortly after the start of the exam and was not advised of the error.

[558]The State Examinations Commission was notified of the problem at 3.50 pm on Wednesday 3rd June by the Principal of the school, took steps to determine whether security had been compromised, and it became clear that the examination paper would have to be replaced. As the Commission could not guarantee that the correct supply of contingency papers would be delivered to 100% of the over 2000 Leaving Certificate examination centres by 9.00am the next day, there was no option but to re-schedule the paper. The costs of re-scheduling the examination are estimated to be up to €1.7m, and arise from the extra cost of school transport, payment of superintendents, attendants and examination aides.

It is fully appreciated that the re-scheduling of the examination, although unavoidable, has given rise to distress and inconvenience for students, and this is sincerely regretted. Both the Commission and I have apologised to students and their families in media broadcasts for the inconvenience caused. I take this opportunity to apologise again for what has been a stressful disruption in the examination process. I have asked the Commission to investigate the matter fully, to report on the circumstances that required the rescheduling of the exam, and the measures needed to address any weaknesses identified and to minimise the risk of any future recurrence.

71. Deputy Pat Breen asked the Minister for Education and Science, further to Parliamentary Question No. 150 of 14 May 2009, the progress in finalising an agreement (details supplied); and if he will make a statement on the matter. [23359/09]

Minister for Education and Science (Deputy Batt O’Keeffe): As the Deputy will be aware, the National Council for Special Education (NCSE), through local special educational needs organisers (SENOs), is responsible for processing applications from primary and post primary schools for special educational needs supports including applications for the establishment of special classes in various geographical areas as required. Officials in my Department have been in contact with the NCSE regarding the matter referred to by the Deputy and I understand that the NCSE has received an application for the establishment of a special class in the school.

The NCSE has advised that the application will be considered as quickly as possible and a decision will be conveyed directly to the school by the NCSE as soon as this process has been completed. All schools have the names and contact details of their local SENO. Parents may also contact the SENO directly to discuss their child’s special educational needs, using the contact details available on www.ncse.ie.