Prelude
Requests to move Adjournment of Dáil under Standing Order 32.
Order of Business.
Audited Reference to Committee: Motion.
Labour Services (Amendment) Bill 2009: Second Stage (Resumed).
Labour Services (Amendment) Bill 2009: Referral to Select Committee.
Defence (Miscellaneous Provisions) Bill 2009: Order for Second Stage.
Defence (Miscellaneous Provisions) Bill 2009: Second Stage.
Priority Questions.
Rural Environment Protection Scheme.
Beef Exports.
Fishing Vessels.
Grocery Industry.
Other Questions.
Teagasc Issues.
Dairy Sector.
Common Agricultural Policy.
Adjournment Debate Matters.
Motor Trade.
Departmental Agencies.
Road Network.
Written Answers.
Farm Waste Management.
Domestic Abattoirs.
Sheep Production.
Departmental Bodies.
Rural Environment Protection Scheme.
Common Fisheries Policy.
Organic Farming.
Dairy Sector.
On-farm Investment Schemes.
Food Safety.
Departmental Offices.
Supports for Young Farmers.
European Council Meetings.
Farm Retirement Scheme.
Afforestation Programme.
Departmental Expenditure.
Transport of Animals.
Greenhouse Gas Emissions.
Aquaculture Development.
Farm Inspections.
Animal Identification Scheme.
Food Safety.
Common Agricultural Policy.
Proposed Legislation.
Departmental Reports.
On-farm Investment Schemes.
Horticultural Production.
Milk Quota.
Adventure Courses.
Greenhouse Gas Emissions.
Departmental Expenditure.
Grant Payments.
Sugar Beet Production.
Dairy Sector.
Aquaculture Development.
Equine Diseases.
Food Labelling.
Rural Environment Protection Scheme.
Dairy Sector.
EU Directives.
Sheep Production.
Fishing Industry Development.
Common Fisheries Policy.
Value for Money Reviews.
Infectious Diseases.
Bovine Diseases.
Agrifood Sector.
Sheep Production.
Farm Inspections.
Appointments to State Boards.
European Council Meetings.
Milk Quota.
Common Fisheries Policy.
Organic Farming.
Farm Retirement Scheme.
Sugar Industry.
EU Directives.
Departmental Reports.
Afforestation Programme.
Pigmeat Sector.
On-farm Investment Schemes.
Fur Farming.
Beef Exports.
Fallen Animal Collection Scheme.
Pigmeat Sector.
Rural Environment Protection Scheme.
Farm Inspections.
Beef Imports.
Cross Compliance Measures.
Departmental Expenditure.
Ministerial Travel.
Grant Payments.
Job Creation.
Grant Payments.
Job Creation.
Grant Payments.
Job Creation.
Employment Rights.
Departmental Staff.
FÁS Training Programmes.
Workplace Innovation Fund.
Departmental Staff.
Departmental Reports.
Departmental Payments.
Departmental Programmes.
Industrial Relations.
Business Regulation.
Employment Support Services.
Enterprise Stabilisation Fund.
FÁS Training Programmes.
Entrepreneurial Activity.
Industrial Development.
Ministerial Travel.
Redundancy Payments.
Public Procurement.
National Lottery Funding.
Departmental Expenditure.
Ministerial Travel.
Departmental Correspondence.
Public Sector Pay.
Tax Collection.
Proposed Legislation.
Tax Code.
Public Service Recruitment.
National Asset Management Agency.
Tax Code.
Departmental Reports.
Tax Code.
Flood Relief.
Ministerial Travel.
Tax Yield.
Child Care Services.
Health Service Staff.
Departmental Expenditure.
Ministerial Travel.
Hospital Services.
Nursing Homes Support Scheme.
Health Services.
Health Service Suppliers.
Patient Private Property Fund.
Health Services.
Health Service Staff.
Children in Care.
Vaccination Programme.
Nursing Homes Repayment Scheme.
Ministerial Travel.
Health Service Staff.
Care of the Elderly.
Health Service Allowances.
Services for People with Disabilities.
Departmental Expenditure.
Ministerial Travel.
Rail Services.
Air Services.
Public Transport.
Ministerial Travel.
Road Traffic Offences.
Departmental Expenditure.
Ministerial Travel.
Prison Medical Service.
Citizenship Applications.
Garda Operations.
Proposed Legislation.
Ministerial Travel.
Crime Levels.
Residency Permits.
Departmental Expenditure.
Ministerial Travel.
Debt Relief.
Kidnapped Aid Workers.
Ministerial Travel.
Foreign Conflicts.
Departmental Expenditure.
Ministerial Travel.
Departmental Expenditure.
Ministerial Travel.
Social Welfare Code.
Carers Strategy.
Departmental Expenditure.
Ministerial Travel.
Social Welfare Appeals.
Social Welfare Code.
Computerisation Programme.
Social Welfare Appeals.
Pension Provisions.
Social Welfare Benefits.
Pension Provisions.
Social Welfare Appeals.
Ministerial Travel.
Pension Provisions.
Social Welfare Benefits.
Special Educational Needs.
Departmental Expenditure.
Ministerial Travel.
Departmental Expenditure.
Ministerial Travel.
Tax Code.
Building Regulations.
Housing Grants.
Local Authority Staff.
Planning Issues.
Local Authority Staff.
Local Authority Housing.
Planning Issues.
Local Authority Housing.
Turbary Rights.
Local Authority Housing.
Ministerial Travel.
Water and Sewerage Schemes.
Proposed Legislation.
Energy Conservation.
Departmental Expenditure.
Ministerial Travel.
Grant Payments.
Departmental Expenditure.
Ministerial Travel.
Departmental Expenditure.
Compensation Schemes.
Departmental Expenditure.
Ministerial Travel.
Agrifood Sector.
Rural Environment Protection Scheme.
Agricultural Exports.
Agrifood Sector.
Common Agricultural Policy.
Sugar Beet Production.
Common Agricultural Policy.
Dairy Sector.
Departmental Staff.
School Transport.
Departmental Expenditure.
Ministerial Travel.
Schools Building Projects.
School Accommodation.
Departmental Expenditure.
School Transport.
Schools Refurbishment.
Schools Building Projects.
Education Schemes.
Proposed Legislation.
School Staffing.
Central Applications Office.
School Enrolments.
Site Acquisitions.
Mature Students.
Schools Building Projects.
Ministerial Meetings.
Schools Building Projects.
Ministerial Travel.
Departmental Reports.
Programme for Government.
Special Educational Needs.
Chuaigh an Ceann Comhairle i gceannas ar 10.30 a.m. Paidir. Prayer.An Ceann Comhairle: Before coming to the Order of Business, I propose to deal with a number of notices under Standing Order 32. I will call on the Deputies in the order in which they submitted their notices to my office.
Deputy Seymour Crawford: I seek the adjournment of the Dáil under Standing Order 32 to debate the following urgent matter: the serious income situation at farm family level and in respect of other self-employed people; the fact that social welfare inspectors are not taking into account the massive drop in income for beef and dairy farmers, due to, for instance, the fall of more than one third in milk prices or the fact that many self-employed builders no longer have work; that in both sectors, despite the denial by the Minister for Social and Family Affairs, personnel on the ground still insist on using previous years’ records with the result that, for instance, a number of young farmers with wives and children to support who have applied for farm assist have been granted nominal figures, such as €6.50 per week in one case, or in some cases nothing at all, even though they can prove beyond doubt that at present they have neither income nor resources.
Deputy Finian McGrath: I seek the adjournment of the Dáil under Standing Order 32 to debate the following urgent matter: the need to support the 130 sacked Coca-Cola HBC Ireland [2]workers, where some members have in excess of 30 years service; and to call on all Members of the Oireachtas to support them in their efforts to get fair play and justice.
An Ceann Comhairle: I now call on Deputy Bannon.
Deputy Peter Kelly: Welcome back, James.
Deputy Bernard J. Durkan: Are the Members on the Government side getting worried? I hear nervous laughter.
Deputy James Bannon: They were nervous last week and the week before and the budget has yet to come.
Deputy Bernard J. Durkan: Gallows humour.
An Ceann Comhairle: Deputy Bannon, without interruption.
Deputy James Bannon: I seek the adjournment of the Dáil under Standing Order 32 to debate the following urgent matter: the discontinuance from 1 October 2009 and without prior notification of the hardship scheme under which patients were supplied with essential medication, leaving those unable to pay without access to medicines which could be life saving; and the need for an alternative plan to be put in place immediately to cover hardship cases before lives are lost.
Deputy Aengus Ó Snodaigh: Ba mhaith liom cead a lorg an Dáil a chur ar athló faoi Bhuan Ordú 32 chun an gnó práinneach seo a leanas a phlé: the need for the Tánaiste to inform Coca-Cola Ireland that she will not tolerate its activities in ignoring the Labour Court recommendations regarding 130 of its distribution and warehousing staff at sites in Cork, Kerry, Waterford, Tipperary, Galway and Dublin that it has sought to have made redundant and whose jobs it has outsourced, despite being a highly profitable company with an excellent labour relations record until now; and the need to discuss whether this House should support the call for a boycott of Coca-Cola products until such time as it implements the recommendations.
Deputy Martin Ferris: I seek the adjournment of the Dáil under Standing Order 32 to debate the following urgent matter: the need to discuss the proposed lay-off of 130 workers, as well as cuts in wages and undermining of conditions of employment for those remaining, as part of the decision of Coca-Cola Ireland to outsource its distribution network to make savings even though the company still is making huge profits and its Irish operation remains extremely successful.
An Ceann Comhairle: Having considered the matters raised, they are not in order under Standing Order 32.
The Tánaiste: As this is my first opportunity to so do, I wish the Ceann Comhairle every success on his appointment.
An Ceann Comhairle: Thank you.
[3]The Tánaiste: It is proposed to take No. b12, motion re orders of reference of committee; No. 5, Labour Services (Amendment) Bill 2009 — Second Stage (resumed); and No. 6 — Defence (Miscellaneous Provisions) Bill 2009 — Order for Second Stage and Second Stage.
It is proposed, notwithstanding anything in Standing Orders, that No. b12 shall be decided without debate.
An Ceann Comhairle: There is one proposal to put to the House today. Is the proposal for dealing with No. b12, motion re orders of reference of committee on children, without debate agreed to? Agreed.
Deputy Enda Kenny: I compliment the Ceann Comhairle on his productivity. He is only in the job a day and he has already ruled out four matters under Standing Order 32. That is a record in its own way and perhaps he will allow one of those sometime during his tenure.
Deputy Bernard J. Durkan: Set a precedent.
Deputy Enda Kenny: Yesterday, Deputy O’Dowd, from the same constituency as the Ceann Comhairle, exposed another scandal within FÁS whereby course results were doctored and manipulated so that students in County Louth, County Meath and north County Dublin were able to pass exams that they had failed. This took place in 2007 when Deputy Martin was the Minister for Enterprise, Trade and Employment. The company involved continued to receive contracts worth tens of thousands of euro to run FÁS courses after a series of discrepancies were first discovered in 2007. This appears to be another example in a long litany of scandals that have afflicted the organisation.
Was the Tánaiste briefed on this when she was appointed? Did her predecessor call her aside and tell her that there was evidence of discrepancies in the way courses were examined, that material was altered and manipulated so that students could get certification? Was she aware of this when she defended the former director general of FÁS, who walked away from the organisation with an enhanced pension worth over €1 million? Was she aware that this latest scandal was seething within the ranks of FÁS? What does the Tánaiste propose to do about this situation? Is the tutor still employed by FÁS and is the company still contracted by FÁS? Does the Tánaiste intend to seek the return of the money from the company due to falsification of records? Will the Tánaiste ensure the company does not receive money from FÁS in any shape or form if that is what it was doing? Will the Tánaiste respond to the exposure by Deputy O’Dowd? May I also ask the Tánaiste——
An Ceann Comhairle: We do not have the Leaders’ Questions today and we may have to find some alternative way of addressing the matter.
Deputy Fergus O’Dowd: It concerns legislation before the House.
Deputy Enda Kenny: This concerns the Labour Services (Amendment) Bill. Yesterday I raised the question of the award to the former director general being outside the guidelines and the Taoiseach referred to the Labour Services Act 1987. I refer to the Labour Services (Amendment) Bill, which the Tánaiste brought before the House. This matter is central to the organisation for which she has responsibility. I am commenting on the exposure by Deputy O’Dowd of another scandal within FÁS that gives everyone associated with the organisation a bad name. There is evidence across the country of brilliant work carried out with the assistance of FÁS in every town.
This morning I listened to Deputy Fahey, who is not in the Chamber, a representative of the Government. I assume he was speaking on behalf of the Government. He made the comment [4]that Anglo Irish Bank will return to solvency and will be in a position to lend money again. I know this is mathematics week——
Deputy Michael D. Higgins: It is mushroom week.
Deputy Enda Kenny: —— but I would like to know what computer system, binary system or abacus is used when the spokesman for the Government says Anglo Irish Bank will return to solvency and will be in a position to lend money. When does the Government envisage this happening?
Regarding the appointment of the deputy chairman of the Labour Court, the Department of Finance stated that this should be subject to open competition. I have no knowledge of the qualifications of the person who has been mentioned but I am sure they are extensive. In the interests of that person, would it not be better that he be allowed to present his credentials at interview so that everyone could understand these appointments are made on merit?
The Tánaiste: I preface my remarks by noting that as there is no Leaders’ Questions today I will be outside the order of the House in the context of replying to these questions.
Deputy Emmet Stagg: Not at all, the Tánaiste will be all right.
The Tánaiste: With regard to the article in the Irish Independent concerning the retirement of a member of the Labour Court, it is actually and factually incorrect.
Deputy Enda Kenny: Will there be interviews?
The Tánaiste: No decision has been taken and I hope the newspaper will take the opportunity to correct this.
On the issue of NAMA, the legislation is before the House and a considerable number of amendments will be considered. Regarding Anglo Irish Bank I will not go into the idiosyncrasies of all that is happening in the NAMA legislation. The draft business plan has been put forward on the basis of the information available to the interim board——
Deputy Enda Kenny: What was Deputy Fahey saying?
The Tánaiste: ——and it is more appropriate that these issues are dealt with in the context of the legislation as it passes through the House.
Deputy Enda Kenny: He was not speaking for the Government.
The Tánaiste: On the issue raised in FÁS, my Minister of State will be addressing this matter in the context of the legislation in the concluding remarks of the debate on Second Stage. The internal audit unit of FÁS carried out an investigation. FÁS provides a considerable amount of training, in-house and through private training providers, and this is an important role. The internal audit was carried out following concerns raised at the time on the basis of the quality of the training provided. Arising from this, and from checks and balances within the FÁS audit unit, these matters were investigated and the situation has been rectified. The employee involved has been removed from office.
Deputy Enda Kenny: The company received thousands of euros.
Deputy Eamon Gilmore: I wish to raise two matters with the Tánaiste. Yesterday, the Minister for Health and Children said that the decision to grant the chief executive of the HSE a [5]bonus was a matter for the HSE board. This is not strictly correct because the Minister has the power under section 10 of the Health Act 2004 to give direction to the HSE in respect of any matter. Any such direction is then laid before the House. Does the Minister for Health and Children have plans to issue a direction to the HSE on whether the bonus should be paid to the chief executive and when will it be laid before the House?
On 11 June, the House agreed an all-party motion arising from the Ryan commission report into child abuse. Two matters arise from this motion that require legislation. The first concerns the establishment of an independent trust into which further substantial contributions can be made by the congregations concerned. These could be used to provide support, general education and welfare to the survivors of the abuse. The second matter that requires legislation is the examination of the terms of the Residential Institutions Redress Act in respect of the confidentiality attached to the awards and the application period. When will these two pieces of legislation, which were agreed unanimously by the House, be prepared?
The Tánaiste: On the first issue raised by the Deputy, as has been indicated by the Minister for Health and Children, this matter refers to a 2007 bonus. The Government stated clearly that no bonuses would be paid in 2008 and 2009 and it is a matter for the board.
On the issues arising from the Ryan report, the Minister of State, Deputy Barry Andrews, published the Government’s plans at the end of July. A number of people have been appointed to the panel and their work is ongoing. As the Government indicated, work is ongoing on legislation that may be necessary. I do not have a date for when those pieces of legislation will come to Government but I can get a further update for the Deputy.
Deputy Aengus Ó Snodaigh: I wish to raise two matters, the first of which relates to the issue raised by Deputy Gilmore. Are there any proposals to introduce amending legislation to end the practice of self-assessed performance-related bonuses not only for the CEO, but also for hospital managers given their abysmal failure in recent years?
The second matter also relates to promised legislation. Will the legislative programme published at the beginning of the session be revised in light of the revised programme for Government announced last weekend? In particular, will legislation promised in the revised programme for Government be brought forward? This includes legislation to reform residency rules to ensure that those who benefit from living in Ireland are subject to taxation in Ireland; legislation on a new system for financing local government; legislation on water charges; legislation to merge the Competition Authority and the National Consumer Agency; and the FÁS legislation to ensure greater accountability to the taxpayer.
The Tánaiste: The relevant Departments will be working on all of these items. With regard to my Department, legislation on FÁS is being discussed in the House and we are working to bring legislation on the amalgamation of the National Consumer Authority and the Competition Authority to the House as quickly as possibly. It is hoped to do so at the beginning of next year.
As I indicated in my previous response, all bonuses for 2008 and 2009 have been abolished.
Deputy Seymour Crawford: In light of the visit from the US Secretary of State, Mrs. Hillary Clinton, will we have movement on the amending legislation to the George Mitchell Scholarship Fund Act 1998? When will it come before the House? We need to try to encourage the peace process.
Many babies and children cannot get health care in Temple Street or Crumlin children’s hospital. When will the eligibility for health and personal social services Bill be brought before the House?
[6]Given that the front pages of today’s newspapers tell us that NAMA will bring in a profit of €5.5 billion in the coming years, is there any hope of a twin for NAMA?
The Tánaiste: The date for the legislation on the scholarship is this session and no date has been agreed on when the eligibility for health and personal social services Bill will be available.
Deputy Ruairí Quinn: I congratulate the Ceann Comhairle on being elected to the position.
No. 81 in section D of the legislative programme is the Civil Partnership Bill 2009. Its history began some time ago when prior to the 2007 general election a Bill was voted down by the former Minister for Justice, Equality and Law Reform, Mr. Michael McDowell. The Government gave an undertaking that it would bring forward legislation as a matter of urgency. There are many same-sex unions in the country and many of those in them are approaching an age in their life when they need to be able to put their affairs in order with regard to inheritance, property and visiting rights in hospitals. The Government has failed to accelerate the Bill, on which there is broad agreement. Why is it in section D? Does the Fianna Fáil and Green Party coalition see this as a matter of urgency?
Deputy Michael D. Higgins: Hear, hear.
The Tánaiste: The legislation is in section D because it has been published and it is hoped that it will be before the House in the coming weeks.
Deputy Ruairí Quinn: I thank the Tánaiste and I take it that she will reinforce that commitment with her colleague who has just left the House because he does not seem to have the same sense of urgency that she just articulated.
The Tánaiste: It is on the list and if we can get through the legislative programme, we will move it on.
Deputy Richard Bruton: We will shortly move on to Committee Stage of the NAMA Bill and the Government has stated that it will willingly listen to constructive suggestions from the Opposition. Is the Tánaiste agreeable to having the Comptroller and Auditor General assess the NAMA business plan on behalf of the Oireachtas so that we could have such a report when we are considering the issues concerned on Committee Stage? Rightly, there is much concern about the assumptions underpinning it. The Comptroller and Auditor General, as an independent constitutional officer, could advise us on the soundness of the business plan, help us in our assessment of the proposal and to develop appropriate amendments.
Deputy Joan Burton: On the same issue, we received the document immediately prior to the vote last night and we had no opportunity to assess it. If the document was issued in the private sector to the Stock Exchange it would carry, as an IPO document, very heavy legal and contractual obligations for its authors, who could be sued by disaffected shareholders if the information in the document was false.
An Ceann Comhairle: The Deputy will have ample opportunity to make the point during the debate on the legislation.
Deputy Joan Burton: There is no indication of who is the author of the document, what legal or professional responsibility he or she is taking for it, or whether it is the Minister’s personal document. I support what Deputy Bruton stated about the Comptroller and Auditor General [7]or another qualified person examining the document. However, it needs to be debated prior to Committee Stage because it is not a subject which will be directly debatable on Committee Stage because neither the amendments nor the Bill refer to the document or its status. If this was a public offering on the Stock Exchange in the Minister’s portfolio, it would be subject to the most detailed legal regulation.
An Ceann Comhairle: The debate on the NAMA Bill will take place soon and the Deputy will have ample opportunity to make those points then.
The Tánaiste: Some time ago, the Minister for Finance indicated to the House that he would publish the business plan——
Deputy Joan Burton: Yes, we asked for it.
The Tánaiste: ——and that plan has been published to ensure as much transparency as possible and that people would be as informed as possible during the debate.
Deputy Richard Bruton: I asked a specific question on whether the Government would allow the Comptroller and Auditor General to assess the report on behalf of the Oireachtas so that we could have an informed debate and develop appropriate amendments. Will the Tánaiste answer this question with a “Yes” or a “No”?
Deputy Joan Burton: I asked whether the Government will provide a mechanism to debate the document which does not feature in the Bill or in the amendments.
An Ceann Comhairle: Committee Stage will be held very soon and all of these points can be made then.
Deputy Richard Bruton: We should hear the Tánaiste’s reply. This is relevant and about business pending before the House. It is a reasonable request about a report that the Minister published last night. We need to have an independent assessment of it and the Tánaiste should reply one way or the other to my question.
An Ceann Comhairle: The Tánaiste can give a brief reply; I do not want to allow the debate to open up.
The Tánaiste: I am not aware of whether the Minister is of the view that this should happen.
Deputy Richard Bruton: The Tánaiste should inform him of it because big money is at stake. The future of the State is at stake.
Deputy Michael D. Higgins: I do not intend to delay the House but I am here a long time and the Tánaiste referred to the document as a business plan. She did not refer to it as a draft business plan and there is a crucial difference. With respect to the Ceann Comhairle and his comment, as ordinary Members of the House we need to know the status of the document. On its first page, it states——
An Ceann Comhairle: There will be ample opportunity to query——
Deputy Emmet Stagg: No, there will not be.
An Ceann Comhairle: ——the standing of the document on Committee Stage.
[8]Deputy Michael D. Higgins: I want to finish my point. I challenge the status of this document. In its first lines it states the Government will “not be in a position to verify the integrity of the data until it carries out its own due diligence on each of the loans”. Is this a reference or draft document for the information and assistance of all Deputies and to be placed in the Library? It is not a finished document that will go into the Committee Stage process of the legislation.
The concern about this legislation is not confined to spokespersons. The Committee Stage debate should be in this Chamber.
Deputy Bernard Allen: Hear, hear.
Deputy Michael D. Higgins: I would also like to have seen a declaration on conflicts of interest, particularly for the people who have put together the tentative valuations in this document. All of this is not something that can be raised——-
An Ceann Comhairle: Deputy Higgins, I have to tell you that——-
Deputy Michael D. Higgins: ——when we have waved the document on to the finance committee.
An Ceann Comhairle: Deputy Higgins will have ample opportunity to make these points on Committee Stage of the NAMA legislation.
Deputy Michael D. Higgins: We should not be waving the document on to the finance committee. It is just a speculative piece in which the people who have put it together have not declared their interests such as firms of solicitors, auditors, auctioneers, valuers and so on.
An Ceann Comhairle: Deputy Higgins, you have made your point. You will have ample opportunity to make these points on Committee Stage.
Deputy Michael D. Higgins: I would not accept this document from a first-year university student.
Deputy Enda Kenny: FÁS would not either.
Deputy Richard Bruton: FÁS would give it a doctorate.
Deputy Dinny McGinley: There is a continuing crisis in Letterkenny General Hospital, where elective surgery lists have been cancelled twice this week already and up to 15 patients are on trolleys while six beds lie empty in one of the wards. Will the Tánaiste inform us the position concerning two Bills that may have an influence in solving the problems in Letterkenny, the health information Bill and the eligibility for health and personal social services Bill? If they were enacted they might improve the situation at Letterkenny General Hospital where week after week——-
An Ceann Comhairle: Is this related to legislation?
Deputy Dinny McGinley: Yes, I am referring to proposed legislation.
The Tánaiste: The health information Bill will be introduced in the middle of next year. There is no date for the other legislation as of yet.
Deputy Emmet Stagg: I want to bring one matter to the attention of the Ceann Comhairle. The document from the Department of Finance referred to earlier is not listed among the [9]documents that have been laid before the House on the Order Paper. It has, therefore, no status at all. This needs to be clarified.
An Ceann Comhairle: It is a Department of Finance document that has been circulated.
Deputy Michael D. Higgins: No, it is not on the Order Paper.
An Ceann Comhairle: I must advise Deputy Stagg that any of these queries can be more than adequately dealt with on Committee Stage of the NAMA legislation.
Deputy Emmet Stagg: It is not appropriate at all for the finance committee. This document has no standing at the committee so that it can be raised at it.
An Ceann Comhairle: There will be an opportunity to make reference to it and ask the Minister about it on Committee Stage.
Deputy Emmet Stagg: Only the Bill and its contents can be raised on Committee Stage.
Deputy Lucinda Creighton: Every backbencher was led to believe Committee Stage of the NAMA legislation would be taken in the Chamber. It is only last night that the word trickled out that it is not to be taken here. This is an absolute travesty. This is the most important legislation in the history of the State with far-reaching consequences that none of us can quantify. We have a right to speak on Committee Stage. The reality is we will not fit in the committee rooms below in the bunker of Leinster House 2000. This is disgraceful. The Tánaiste should account to the House on this matter.
An Ceann Comhairle: We voted on this matter last night.
An Ceann Comhairle: Last night the House divided to refer the NAMA legislation to Committee Stage.
Deputy Lucinda Creighton: No, we did not vote on this matter last night. We voted on Second Stage but not on where Committee Stage would be taken.
An Ceann Comhairle: At the completion of Second Stage last night, the legislation was referred to committee.
Deputy Martin Cullen: The Deputy has the right to attend the Committee Stage proceedings.
Deputy Lucinda Creighton: There is no accountability. We should not hide in the bunker of Leinster House 2000 but deal with this matter in the Chamber.
An Ceann Comhairle: Yes, Deputy. I call on Deputy Gilmore.
Deputy Eamon Gilmore: On a point of order, when we completed Second Stage of the NAMA legislation yesterday evening, Deputy Burton raised the issue about the lack of time for the preparation of Committee Stage amendments. This Department of Finance document regarding the NAMA business plan has no author or status attached to it. It was circulated by the Minister for Finance at 6.55 p.m. last night, five minutes before the vote on Second Stage after 29 hours of debate in the House. The document has not been laid before the House and it is not listed on the Order Paper.
[10]The difficulty is there is a requirement that when amendments are proposed to a Bill, they may not impose a charge on the State. It is difficult for any of the Opposition spokespersons to craft amendments to the NAMA legislation and have them debated on Committee Stage when this document of uncertain origin and which has not been laid before the House may be used as a justification for ruling them out of order on the grounds they may impose a charge on the State. We need clarification on this matter before Members prepare their amendments. What is the status of this document? Who is its author? Has it been laid before the House? Will it be used as a basis for determining whether Opposition amendments are considered to be a charge on the State?
An Ceann Comhairle: Amendments are judged against the legislation debated. The document in question is a Department of Finance document that has been circulated.
Deputy Joan Burton: How does the Ceann Comhairle know that? Was he told that?
An Ceann Comhairle: That is what it is.
Deputy Joan Burton: While we all wish Deputy Kirk the best in his new role, the NAMA legislation is the most important financial decision in the history of the State with an obligation of €54 billion to be imposed on taxpayers. Opposition Members would be failing in their duty if we did not ask who the author of this business plan is and what is its provenance. If this document were issued by a private company and it turned out its information were incorrect, heavy fines would be imposed on its promoters and authors.
I agree with Deputy Bruton that an independent auditor, such as the Comptroller and Auditor General, should examine and evaluate the document’s data. Our banking system is in crisis because the regulatory system failed. The Tánaiste must respond on the status of this document. There is a squiggly looking harp symbol on its cover. Does that mean it is owned by the State? It is not the usual State harp. Is this to what €54 billion will be committed? It is not adequate.
Deputy Emmet Stagg: It is a draft.
An Ceann Comhairle: The document has been circulated as a Department of Finance document.
Deputy Emmet Stagg: It has not. It is a draft.
An Ceann Comhairle: On Committee Stage of the NAMA legislation, there will be more than adequate opportunity to ask the Minister for Finance the questions posed this morning.
Deputy Kathleen Lynch: Where is the Minister this morning? Is he meeting the Construction Industry Federation again?
An Ceann Comhairle: We need to move on as there are several other Deputies who wish to raise questions.
Deputy Charles Flanagan: In respect of the referral by this House of the NAMA legislation to the finance committee, certain Members are charged with the responsibility of being members of that committee. Other Members, on all sides, who do not have membership of the committee, have expressed an interest in the detailed consequences of the legislation. Will the Ceann Comhairle brief Members as to what precise provision has been made to facilitate non-members of the finance committee to put down amendments and engage in debate and questions on the NAMA legislation on Committee Stage? However, this will not happen if any [11]precedents are brought to bear. Will the Ceann Comhairle ensure the legislation is not dealt with in the finance committee but in this House so every Member has an opportunity to participate in full?
An Ceann Comhairle: Deputy Charles Flanagan will be aware we have a committee structure in the House. There is a chairperson and a secretariat in each committee and they will make the arrangements for the Committee Stage debate. There is clear provision for all Members of the House to attend.
Deputy Aengus Ó Snodaigh: There is no room.
An Ceann Comhairle: I am sure the Chairman and the Secretariat will consider the issue of accommodation when it arises.
Deputy Paul Kehoe: On a point of order, I requested at Whips meetings on numerous occasions, as did Deputy Stagg, that Committee Stage of the NAMA legislation would be taken in the Dáil Chamber. Our request was rejected. Members of my party, and my party leader, asked me to make this request because numerous members of the party who would have very good contributions to make wished to participate on Committee Stage. We warned the Chief Whip that there would be a space problem if Committee Stage was taken in the dungeons of LH2000. The committee room there holds only 15 or 20 Members. That is totally unsatisfactory. The Government should revisit this issue as soon as possible.
Deputy Emmet Stagg: Will the Ceann Comhairle clarify his statement that the Chairman of the committee can make arrangements for alternative accommodation? The Chairman of the committee cannot decide to use the Dáil Chamber. That is the job of the Ceann Comhairle. We are asking him to ensure that the Members have space and time to deal effectively with this legislation.
Deputy Noel J. Coonan: The Ceann Comhairle should not be taking sides.
An Ceann Comhairle: The Chairman of the Committee on Finance and the Public Service will have responsibility for making the arrangements for the debate.
Deputy Emmet Stagg: Not at all.
An Ceann Comhairle: The committee structure——
Deputy Emmet Stagg: The Government has decided to stick it in the dungeons so that no one can hear it.
Deputy John Perry: On a point of order, it is scandalous that there is a draft business plan for €54,000 million. For every action there will be a massive reaction to the debate but this will be debated in a small committee room. Every Member has an interest in the survival of small businesses around the country. One bank is getting €28 billion and will not give €1 back to the economy.
An Ceann Comhairle: That point has already been made.
Deputy John Perry: We want a debate here in this Chamber on this issue.
[12]Deputy Arthur Morgan: I agree with the previous speakers. What is the status of this document that was handed into the House yesterday afternoon? Notwithstanding that the figures in it could have been plucked out of the sky there is a symbol on the cover that looks more like a party political emblem for Fianna Fáil than anything to do with the Oireachtas. Is this a Fianna Fáil document? Is it a Department of Finance document? Is it a document from the Government?
Deputy Tom Hayes: It is a Fianna Fáil logo.
An Ceann Comhairle: I have already advised the House that the document is a Department of Finance document. The Department circulated it yesterday evening.
Deputy Arthur Morgan: We need proper accreditation on documents coming from the Department of Finance, which they normally have. This is a significant departure from what the Department would normally produce. Is the Department now adopting the Fianna Fáil logo?
An Ceann Comhairle: I am sure the Deputy is a member of the Committee on Finance and the Public Service, where all those queries can be raised.
Deputy Paul Kehoe: Was the logo designed at the Green Party conference?
Deputy Ciarán Lynch: There is a great deal of confusion about this document this morning. I understand that, ironically, the Minister for Finance is meeting the Construction Industry Federation at present. I suggest that he come into the House at some stage today to clarify the standing of this document.
Deputy Tom Hayes: I want to be helpful. I am watching the body language of the people in Government and I understand that they want to facilitate us. I propose that the Dáil adjourn for half an hour to try to solve this problem because it concerns everybody. We were all led to believe that we would be given the opportunity to discuss it so I propose that we adjourn the Dáil for half an hour.
The Tánaiste: This is a Department of Finance document as the Members know full well.
Deputy Joan Burton: It does not say that.
The Tánaiste: This is a draft business plan.
Deputy John Perry: It involves €54 billion.
The Tánaiste: It is based on information that has been returned to the interim board of NAMA, based on technical assumptions on the best information available.
A Deputy: Is it the NAMA logo?
The Tánaiste: Two weeks ago I advised this House that Committee Stage of the Bill would proceed in the normal way. We voted last night on a decision to send the Bill to the select committee. It will proceed to select committee. Deputy Charles Flanagan is a man of considerable experience in this House and he knows well that he or any Member can attend any of the committee meetings in this House.
Deputy Charles Flanagan: That can be done here.
[13]Deputy Emmet Stagg: We will not fit.
The Tánaiste: I am sure it is well within the realms of the Ceann Comhairle’s office to ensure that adequate accommodation is made available for whoever wishes to attend.
Deputy Aengus Ó Snodaigh: The committee room is not big enough.
Deputy Arthur Morgan: There is no space.
Deputy Paul Kehoe: It is not the responsibility of the Ceann Comhairle to make sure that there is adequate space. It is the Government’s problem. We have warned the Government that if every Deputy turns up on Committee Stage of NAMA next week——
The Tánaiste: It will be a miracle.
Deputy Bernard J. Durkan: The Government has been hoping for miracles for a long time.
Deputy Paul Kehoe: Where will they fit?
Deputy Michael D. Higgins: The committee will have to allow room for all the solicitors’ firms and accountancy firms and the banks who will want to squeeze in.
Deputy Paul Kehoe: The Minister and the officials from the Department will take up a lot of space. This problem must be sorted out today. We cannot sweep it under the carpet until next week. Will the Government reflect on what can be done about this today?
Deputy John Perry: Deputy Tom Hayes made a good recommendation that we adjourn the Dáil for 30 minutes to agree on this very serious issue.
An Ceann Comhairle: We have a Whips system and we will not resolve this matter on the floor of the Dáil today.
Deputy John Perry: It will not work.
Deputy Aengus Ó Snodaigh: The Whips are here.
An Ceann Comhairle: The Whips from each party can finalise the arrangement. We must move on.
Deputy Paul Kehoe: I am not accepting this. We will face a problem next week. Deputy Stagg and I have raised this on numerous occasions at the Whips’ meetings and we have warned the Government. There is no use saying that it should go back to the Whips to sort it out. I do not accept that. It must go further than the Whips because this has been rejected at Whips’ meetings. We have been told Committee Stage will be taken in a committee room, not in the Dáil Chamber. We want this sorted out now, today.
Deputy Arthur Morgan: The Dáil Chamber will be empty the week after next.
An Ceann Comhairle: We cannot finalise the matter here. The Whips will have to work it out among themselves with the Chairmen.
Deputy Tom Hayes: I insist that I get a chance to push my point. The only way to resolve this is to adjourn the Dáil for five or ten minutes because everybody on all sides of the House, including the backbenchers wants a chance to speak. This is the most serious legislation that has ever come before this House so we need a sos of ten minutes to try to come to a resolution. [14] There is huge anger among the public. People do not understand the legislation and they want to make their point. I am asking that we give democracy a chance and that we try to resolve this matter by adjourning the Dáil for ten minutes.
An Ceann Comhairle: I am saying that the party Whips must meet to address the issue.
Deputy Fergus O’Dowd: Committee Stage for less important legislation has been held in the House and there is every reason to do the same for this legislation.
An Ceann Comhairle: We have to move on from this issue. I have advised that the Whips meet to discuss the accommodation problem.
Deputy Fergus O’Dowd: On the Order of Business, in response to what the Tánaiste said about the course in Dundalk, that was a major scandal. For a full year one individual corrupted the results of a course but no reference was made to the real scandal. That company got further contracts and manipulated the material and the results and brought the course and external bodies such as City & Guilds into disrepute. Has the Tánaiste carried out, or will she carry out, an audit to ensure that this has not happened anywhere else in FÁS? Is she concerned enough to clarify this for the House next week?
An Ceann Comhairle: The Deputy can raise this matter on the Adjournment or put down a parliamentary question.
Deputy Fergus O’Dowd: I have put it down for the Adjournment debate but it is ridiculous that the Tánaiste——
An Ceann Comhairle: It will be considered for that.
Deputy Fergus O’Dowd: I will take that as a Louth answer meaning “Yes”.
An Ceann Comhairle: We must move on.
Deputy Liz McManus: I appreciate the Ceann Comhairle’s position is difficult but Deputy Jan O’Sullivan and I indicated at the beginning of the Order of Business that we wished to raise two points. I ask that there be acknowledgement when a Deputy notifies the Ceann Comhairle early on.
An Ceann Comhairle: The Deputy has the floor now.
Deputy Liz McManus: I thank the Ceann Comhairle, and I appreciate that. On 30 October 2009 Independent Network News, INN, staff will lose their jobs. Initially INN tried to consider that, because fewer than 20 people were employed, it did not have to notify the Tánaiste, as Minister for Enterprise, Trade and Employment. Of course, that was untrue. Under the Redundancy Acts it must notify the Minister. First, has she received that notification? Second, regarding promised legislation, in February, in a reply to a parliamentary question by me, the Tánaiste stated that this year she would introduce legislation to reform competition law, particularly in the area of media mergers. A report on media mergers and the risks in respect of ownership was slipped out by the Tánaiste’s Department. We need to have legislation now, arising from the concerns in that report. Third, will the Tánaiste work with INN to ensure the matters relating to the redundancies are referred to the Labour Relations Court?
Deputy Seán Barrett: On the same matter, before the Tánaiste replies, my understanding is that when legislation was passed setting up independent radio there was an obligation for [15]independent news to be part and parcel of the licence. Can the Tánaiste explain how this fits into the proposal by INN to close business? What steps are being taken to substitute for it?
The Tánaiste: Perhaps I will have an opportunity to speak to the Deputies in private about this issue. It was raised with me by the National Union of Journalists, it has been examined by my Department and a response is being forwarded to the union. I can speak to the Deputies individually on the issue.
Media mergers will be included in the new legislation. In normal circumstances we would have been in a position to have this legislation before the House as part of the review of the Competition Act but we are now adding on the mergers of both organisations. It is my intention to include the recommendations on media mergers in the new Bill, arising from the review that took place.
Deputy Liz McManus: Was the Tánaiste notified?
Deputy Liz McManus: Was the Tánaiste not notified as required?
The Tánaiste: That matter is being investigated within the Department.
Deputy Liz McManus: Can I urge the Tánaiste to pursue this matter, particularly with regard to the situation of the people who will be unemployed and their need to go to the Labour Relations Court?
Deputy Jan O’Sullivan: I appreciate the time the Ceann Comhairle gave for issues on NAMA raised by colleagues. I assure the Tánaiste that I, on behalf of the taxpayers in my constituency, will want to fit into whatever room is set aside——
An Ceann Comhairle: Does the Deputy have any other point?
Deputy Jan O’Sullivan: I am sure I speak for the entire 166 Members in this Chamber in that regard. I return to the issue raised by my party leader, Deputy Eamon Gilmore. Yesterday, speaking to the media, the Minister for Health and Children, Deputy Mary Harney, stated that the matter of Professor Brendan Drumm’s bonus was a matter for the board of the HSE. I was surprised to hear her say that because in a parliamentary reply to me on Tuesday this week——
An Ceann Comhairle: Are we talking about legislation?
Deputy Jan O’Sullivan: I am talking about parliamentary business. I asked whether bonuses had been paid to staff under the aegis of her Department. In her reply, the Minister said her Department wrote to the board of the HSE on 15 May 2009, stating that bonus payments should be suspended pending the issue of further guidelines from central Government. My understanding is that the bonus——
An Ceann Comhairle: There are several other ways for the Deputy to elicit the information she requires.
Deputy Jan O’Sullivan: This is a very important public matter because there is absolute outrage in regard to it. Some €1.2 billion is being taken out of the health services budget this year. My understanding is that the decision was made after that letter was written on 15 May 2009. I ask the Tánaiste, on behalf of the Government——
[16]An Ceann Comhairle: I ask the Deputy to table a parliamentary question to deal with the matter, please.
Deputy Jan O’Sullivan: Will the Government issue an order to the HSE board stating that the bonus should not be paid? It is against a decision of Government and a letter written by the Department of Health and Children.
An Ceann Comhairle: That should form part of a parliamentary question.
Deputy Emmet Stagg: The Government will not answer parliamentary questions.
Deputy Charles Flanagan: It should be referred to Professor Drumm’s office.
Deputy Jan O’Sullivan: It is a matter for Government because a letter was written. Will that letter be published and will the Government give an order to the board of the HSE?
An Ceann Comhairle: I ask the Deputy to table a parliamentary question. There are other ways of raising the matter and I ask her to try those avenues.
Deputy Jan O’Sullivan: I tabled a parliamentary question. This information was in an answer to a parliamentary question——
An Ceann Comhairle: The Adjournment debate is an option. I call Deputy Bernard Durkan.
Deputy Jan O’Sullivan: This matter will cause enormous public unrest when cuts are proposed.
Deputy Bernard J. Durkan: I do not wish to delay the proceedings of the House but the Ceann Comhairle stated that the Adjournment debate was an option. He knows, I know and we all know that when one tables a matter for the Adjournment, more often than not, the competent Minister does not attend in the House. More often than not, one Minister of State is there to answer four Adjournment debates.
An Ceann Comhairle: The Deputy must have a question.
Deputy Bernard J. Durkan: This relates to the business of the House.
An Ceann Comhairle: Let us get to the question.
Deputy Bernard J. Durkan: Yesterday I raised the issue of the competence and willingness of Ministers to answer questions in the House that are relevant to their Departments. What is going on at present is a disgrace. I expect the Ceann Comhairle, as a recent occupant of these benches, to defend the interests of the Members of the House. Nobody else can do so. I offer a classic example. In the past two days, I received three ridiculous answers to questions in which it is clear that individual Ministers are treating the House with contempt.
Deputy Bernard J. Durkan: I remind the Tánaiste, in the middle of her conversation, that if questions tabled by Members of the House that were relevant to her Department had been answered in the House, we would not have had the embarrassing situation we had in recent weeks.
[17]I will give the Ceann Comhairle the following example. It was a question to the Minister for the Environment, Heritage and Local Government, yesterday, asking about the number of home choice loans made to or through applications to the various local authorities in the past 12 months. It received the following answer, which sums up my point. The Minister of State at the Department of the Environment, Heritage and Local Government replied that more 1,400 prospective purchasers——
An Ceann Comhairle: Please, we are just——
Deputy Martin Cullen: For God’s sake.
Deputy Bernard J. Durkan: ——have formally expressed an interest on the dedicated home choice loan website, that to date 38 applications have been made and that of these——
Deputy Martin Cullen: Ah, come on.
An Ceann Comhairle: The Deputy is holding up proceedings with commentary. Let us have a question, please.
Deputy Bernard J. Durkan: ——three have been approved and three have been withdrawn.
An Ceann Comhairle: Does the Deputy have a question?
Deputy Bernard J. Durkan: This is my question. When will the Tánaiste, acting on this morning’s Order of Business, address her colleagues in Cabinet and ask them, for God’s sake, to give serious consideration to the legislation they are putting through the House now and to the legislation for which they are responsible, but for which they refuse to accept responsibility by way of normal parliamentary procedure in this House?
An Ceann Comhairle: Very briefly, Tánaiste. We must move on.
The Tánaiste: The Taoiseach indicated in a response yesterday that any organisation set up arising from legislation passed in this House should have due regard to the elected people of this House and respond to them.
Deputy Emmet Stagg: The Government set them up deliberately so they would not. It prevents them from doing so.
The Tánaiste: That should be the situation. If there is a parliamentary request for information from an organisation, the expectation is that the organisation will give a proper response to the person.
Deputy Emmet Stagg: It is the biggest attack on democracy.
An Ceann Comhairle: A number of Deputies wish to speak. I ask them to come back to me on Tuesday and I shall take their queries at that stage. We must move on to the motion on the audited reference of the Joint Committee on the Constitutional Amendment on Children. I call on——
Deputy Tom Sheahan: I asked to speak. I have been sitting here all morning.
An Ceann Comhairle: I ask the Deputy to wait until next Tuesday. We have spent an inordinate time——
[18]Deputy Tom Sheahan: I would not have had to wait before. This would not have happened if my colleague were still in the Chair.
An Ceann Comhairle: Yes, I understand that.
Minister of State at the Department of the Taoiseach (Deputy Pat Carey): I move:
Question again proposed: “That the Bill be now read a Second Time.”
An Ceann Comhairle: Deputy Charles O’Connor has four minutes remaining.
Deputy Charlie O’Connor: I notice that people have suddenly started calling me Charles. There was a time when only my parents did that, and that was when I was in trouble.
I was going to mention something while the journalists were present, as I noticed a sweet headline in the Irish Independent this morning about drama at Dáil Éireann as if it was unusual.
Deputy Bernard Allen: We have a few drama queens.
Deputy Charlie O’Connor: The drama was associated with yesterday’s meeting of the Joint Committee on Arts, Sport, Tourism, Community, Rural and Gaeltacht Affairs and the attendance at Leinster House by artists and film stars. There is drama everyday, certainly this morning. The arrival of my friend from Wexford reminds me that I wanted to congratulate his friend, Deputy Connick, who has enrolled in “Wex-Factor”. I am sure that the Leas-Cheann Comhairle will join me in wishing the Deputy well.
An Leas-Cheann Comhairle: It is a new film in New Ross.
Deputy Charlie O’Connor: Is that what it is?
It is like groundhog day for me, since I spoke on this Bill last night. I do not want to repeat everything I said, although I discussed Tallaght and the importance of the projects therein. I want to mention the Leas-Cheann Comhairle’s colleague, Deputy Penrose. Sometimes, people get confused when compliments cross the floor, but Deputy Penrose and I have been friends and colleagues since I entered the House and I compliment him on his work.
After reading the newspapers this morning, it is clear that FÁS is getting a great deal of bad press, perhaps much of which is deserved. FÁS was mentioned on the Order of Business again. However, it is important that its image be improved by the people within it. The Government has a clear role, but FÁS must do its own business. All of us have listened to the debate carefully and many colleagues have pointed to the importance and value of the services provided by FÁS in everyone’s community. In Tallaght in Dublin South-West, the case is no different. FÁS must continue to reach out to people who need employment services and training.
[19]I speak with local groups daily. Without being critical, as I do not want anyone in FÁS in Cookstown to telephone me, the Cookstown office and FÁS in the Dublin region generally must continue to reach out. I am a Dubliner, so I will confine my remarks to Dublin. I hope that FÁS will continue to play its role.
Recently, Dublin South-West’s Deputies attended a meeting in the Brookfield community enterprise centre regarding community employment schemes and the worth of the jobs initiative programme in particular. There is a sense that the latter may be under threat, but I believe strongly in the value of such programmes. There is no doubt that FÁS and the Government must consider in an innovative way how to change the direction of some of the schemes to ensure that they are employment driven and that people are trained.
I want to make a strong case for the jobs initiative scheme as it is found in Tallaght in Action Tallaght, the Killinarden and parish community enhancement scheme, the Tallaght development company in Killinarden, the council zone scheme, the Jobstown community enhancement scheme and the Tallaght Centre for the Unemployed. They do great work and look after——
Deputy Arthur Morgan: Some leaflet will go out this evening.
Deputy Charlie O’Connor: There will be a few leaflets. I want to be positive because these groups look after their clients and different projects.
Deputy Arthur Morgan: Of course they do.
Deputy Charlie O’Connor: Were the jobs initiative to be abolished or changed dramatically, what would happen to these groups and the communities they serve? I am making a strong case in that regard.
I look forward to the rest of the debate and I will listen to what everyone says. I thank the Leas-Cheann Comhairle for his courtesy.
Deputy Bernard Allen: I wish to refer to some of the issues raised by my colleague, Deputy O’Dowd, yesterday. What I have heard is a matter for the Committee of Public Accounts, which I chair, and we will deal with this matter further.
I want to make the House aware that, when my committee sought the report on Safe Pass courses in FÁS, FÁS provided us with a censored version of the Spollen report. Subsequently, it appeared unredacted in a Sunday newspaper. This reveals the anomaly posed by the Data Protection Act and the obstacles that the Committee of Public Accounts faces in getting to the truth of such matters. We were provided with reports that were censored because of alleged data protection provisions while the Freedom of Information Act rightly allowed the total disclosure of facts to everyone. The Spollen report is one example, but another report on safety issues does not seem to have seen the light of day, namely, the Claritas report, which was the subject of a question by my colleague, Deputy Stanton, in October 2008.
From what I have heard so far, I am amazed that the fraud squad has not been invited in to investigate this situation, given the seemingly serious anomalies in good governance and so on. My committee will consider this matter and deal with the limitations placed on us. Due to the Abbeylara Supreme Court case, we cannot pinpoint people who are at fault or issue reports that apportion blame. In our report on FÁS published in February 2009, we needed to couch our statements carefully and use phrases such as “the board should be reduced in number and reconstituted”.
The Bill is a belated attempt to deal with some of the report’s key recommendations. I will give it a reserved welcome because it implements one of my committee’s recommendations, [20]namely, to restructure and reconstitute the board to make it smaller. A new board to oversee the running of FÁS is needed, not only to restore confidence in an organisation that will play a vital role in helping to retrain approximately 400,000 unemployed people, but to change the culture of an organisation — it will have a major job in this regard — that has gone badly off the rails. The problems at FÁS date back many years and, thanks to the work of the Comptroller and Auditor General, a light has been shone on many practices that not only show a poor image of our senior public service, but also besmirch the good name of the 2,000 employees of FÁS who do a good job day in, day out in dealing with the issues confronting the organisation and our economy.
The Committee of Public Accounts will deal with many of the relevant issues that arise in the audit reports in the months ahead, such as weak controls, disregard for public procurement rules, wasteful expenditure on advertising and the allegation that the board was kept in the dark by an executive that had taken its eye off the ball and by poor oversight of FÁS, not only by the Departments of Enterprise, Trade and Employment and Finance, but by the board of FÁS itself. By its make-up, the board was not capable of doing its job, namely, running an organisation that was entrusted with more than €1 billion of taxpayers’ money every year, even in those years of full employment.
While the committee I chair will do its job, I am speaking today as a constituency and public representative. The committee will do its job in dealing with what happened in FÁS but what it cannot do is question Government policy and decisions and this goes to the root of what is wrong in FÁS. At a time of full employment in the State, FÁS was in receipt of money to do what it wanted and it had so much money it could spend its way out of any difficulty. It was advised to spend European Social Fund money to avoid losing it. That was the attitude.
The Science Challenge programme gave FÁS executives an excuse, along with a large crowd of hangers-on, including senior civil servants, Ministers and other friends including some journalists regarded as friendly, to enjoy the luxuries of first class travel to Florida. There was no value to the taxpayer from that programme. I have some regard for Science Foundation Ireland which pinpointed the uselessness of that project and in its evaluation said the programme did not have measurements to justify the expenditure. Much of the €8 million was spent on advertising. Having plenty of money also allowed FÁS to overspend by millions of euro on its advertising budget and much of the advertising was strategically placed and at times helped to mask the criticism and scrutiny that should have applied. The bottom line is that FÁS spent only what the Department allocated to it. The Department, whose Accounting Officer and Minister should have been keeping a close eye on the organisation, took their eye off the ball. Even in good times it is not appropriate to spend money for the sake of spending it and it is certainly not appropriate in these hard times.
Issues arise for public administration as a result of what was uncovered in FÁS. We need to examine the capability of all Departments and in particular the Department of Enterprise, Trade and Employment, to ensure they do not allow the mistakes made in organisations such as FÁS, to recur. Officials from the Department of Finance regularly appear before the committee of which I am Chairman. I refer to a meeting of the committee last week dealing with procurement practices in the Irish Prison Service. The officials were questioned by the committee. I will paraphrase their reply and I will not be unfair to them. They stated they were waiting on the Committee of Public Accounts to come to its conclusions. In my view they should be proactive in dealing with issues such as bad procurement practices. There is still a lot to be desired in this situation.
The Department of Enterprise, Trade and Employment cannot wash its hands of the FÁS debacle. It is responsible through its Vote for allocating funds to FÁS and it must ensure that [21]before one euro is spent on FÁS there are clear performance indicators and measurements in place to justify the allocation of moneys. These measurements must be specific and the Department must have the capability to carry out its oversight function. The Department must also enhance its policy-making role. It is clear that much of that role is now with the departmental agencies instead of resting with the Department.
While I welcome this Bill the Minister could have gone further. I hope the Bill will be amended on Committee Stage in order to strengthen its provisions. The Minister should follow the example shown by her colleague, the Minister for Communications, Energy and Natural Resources, Deputy Eamon Ryan and give an Oireachtas committee a role in the appointment of the board of FÁS.
The Committee of Public Accounts recommended a commitment to gender equality on the board. It should comprise of men and women with good business experience, who value their public duty and who are capable of running one of the most important bodies in the State. I suggest there is a role for a workers’ representative on the board rather than the token representatives of IBEC and the trade union movement. This person would represent the workers in FÁS who have an in-depth knowledge of the organisation and would be accessible to his or her colleagues in order to be alerted if the situation were going off the rails.
FÁS needs to move on while still being open to public scrutiny. Good leadership will enable the organisation to develop a plan to retrain the thousands of people who are unemployed as a result of the downturn in the economy. I wish the new director general well. School leavers and recent university graduates will also require further training to prepare them for entry into the workforce. The State will fail such people if this Bill is not right.
Recent reports of the Committee of Public Accounts and of the Comptroller and Auditor General describe a litany of waste in the HSE, in FÁS and in several other Departments and agencies. One report published earlier this year described public expenditure on the health services. I do not see much sign of any action being taken as a result of that report which pinpointed areas with potential for gross wastage of public moneys. I also have a concern about the new common contract for hospital consultants. The last common contract was a farce and a millstone around the neck of the taxpayer. There was widespread abuse of it by individuals and no monitoring of its provisions. I am concerned that there is inadequate monitoring of the new contract with regard to the ratio of public and private mix in public hospitals.
There is evidence that a two-tier system exists. Public hospitals operate a fast-track approach for those who can pay. This is one area that needs to be scrutinised. The Committee of Public Accounts will be doing so within the next few weeks and will be asking questions. The new contract has cost the taxpayer a fair amount and the committee will inquire whether its provisions are being strictly applied.
FÁS spent €620,000 on a television advertisement that was never seen on a single television set. Another €600,000 was lost on what was termed “nugatory expenditure”. The word “nugatory” is new to me. It means no services were supplied for the expenditure. This is the subject of Garda investigation and steps are being taken to deal with that issue. Another €140,000 was spent on an advertising campaign for which most of the slots had a zero target market audience. It seems many people were asleep at the wheel in a number of agencies and in the Departments of Enterprise, Trade and Employment and Finance in particular.
When it came to giving an example to State agencies, this Government showed them how to spend money. I refer to a total of €55 million for the failed e-voting system. The luxury travel in the US afforded to Ministers by FÁS was a factor in the light-touch supervision applied to the State employment and training agency. Why was the board of FÁS not fired following the publication of the report last February? We all but said the board should have been fired. [22] However, a culture in Government led to an over-spending which should not have been incurred by Ministers and Departments and this extended to those high up in some State bodies. Do Ministers and senior officials in State agencies realise how difficult it is for those who are losing their jobs or struggling to survive on social welfare payments to tolerate this appalling extravagance? It cannot be easy for those in employment to see their pay packets shrinking as the Ministers and their cohorts swan around like modern day princes, to paraphrase a Fianna Fáil backbencher.
This Bill is long overdue. I believed that action would have been taken by the Tánaiste before the summer recess once the recommendations of the Committee of Public Accounts were published last February and as a result of the serious nature of the report. I expected action on the implementation of some of the key recommendations. The Bill lacks a true reforming element. The responses to date have been inadequate in that they deal with the board and with some regulations regarding senior FÁS staff. We all know, however, that the problems of the agency go far beyond the board and that there are systematic failures in the organisation. These failures will be the subject of a further investigation by the Comptroller and Auditor General. This is serious in view of the fact that we have so many people unemployed.
Along with overhauling the FÁS organisation, the Government must now initiate public sector reform proposals where managers should be made accountable for the projects and budgets for which they are responsible. Success should be rewarded but failure in dealing with taxpayers’ money has to be dealt with too. The whole culture must change from the top in FÁS, out of respect for the thousands of people suffering at present.
I suspect the contents of this legislation will politicise the FÁS board more than ever before and I am not confident that it represents anything other than the continuation of the culture of cronyism that has been so evident in the past 12 years. The Government should introduce reforms by setting up a transparent public appointments system which would put ministerial appointees to appointed State boards before an Oireachtas committee to discuss the experience and qualifications that make them suitable for such responsible positions. There should also be legislation that would allow for the dismissal of senior managers who have not been vigilant in the protection of public finances. I recognise the Bill would allow the Minister to dismiss board members who are not adequately performing or where the removal of the board member is necessary for the effective performance by FÁS of its functions. However, there is no provision for the dismissal of FÁS executives who are most responsible for the FÁS scandals and who have, to date, mainly escaped and in some cases have even been rewarded.
At the most recent hearing of the Committee of Public Accounts, we demanded the documentation from the Department of Finance, the Department of Enterprise, Trade and Employment and FÁS related to the Molloy deal, which we have now received. This development has been referred to in the House and in some newspapers. Along with these papers, I am conscious of the review being carried out by the Tánaiste into the retirement package given to the former director general of FÁS and I have asked, on behalf of the committee, for the report of that review in advance of dealing further with issues related to the Molloy package. We have received an indication from the Secretary General of the Department of Enterprise, Trade and Employment that it could be some time before that report is available and finalised, because we have been told it must wait until the publication of the Comptroller and Auditor General’s report, which I find strange.
The Committee of Public Accounts has also decided that, in advance of future hearings, it will require further information and, therefore, has written to Mr. Saul regarding his recent comments that the board had not been informed by the executive of FÁS on issues. The committee has afforded Mr. Saul an opportunity to give a report to the committee on this [23]matter. We have been in contact with the former director of corporate services to afford him the opportunity to give evidence to the committee or submit a report. We have also asked FÁS for details of the internal audit investigation, comprising 23 modules, into procurement in the corporate affairs division.
The issues that have arisen in FÁS throw up two issues of broader concern and I have written to the Minister for Finance, on behalf of the committee, regarding these. I also wish to put them on the record of the House. The terms of the package available to outgoing chief executives of State bodies as set down in the Department of Finance guidelines, which allow generous top-ups to be given to those whose contracts are being terminated, are not specific enough. We have also written regarding the application of provisions regarding the disclosure of information by a board member to the relevant Minister. This is part of section 8 of this Bill, but that measure should apply to all State boards.
I refer to the package available to outgoing chief executives of State bodies. I am concerned that the former director general of FÁS was not the only person to benefit from a generous package and I question, for example, the retirement package given to the former Financial Regulator. Given the culture in place and the likelihood of future gilt-edged packages being made available, I call on the Minister for Finance to review these arrangements and issue new guidelines. This is the unanimous view of the Committee of Public Accounts. We are also of the view that ministerial representatives on State boards are either not performing or may be prevented from performing an effective role as the eyes and ears of the Minister and, therefore, the provision contained in section 8 of the new Bill on FÁS should have broader application to all State boards.
Deputy Chris Andrews: I wish to share time with Deputy Fitzpatrick.
I am delighted to have the opportunity to speak here today. The revelations which came about regarding FÁS have shocked and outraged every person on both sides of the House and in wider society. The measures included in this Bill are sensible and necessary given what has taken place. They will go a long way towards restoring people’s belief and confidence in the FÁS organisation. The Minister has been very active in ensuring that everything possible has been done. She has dealt with the various incidents and issues which have been thrown up through the revelations. She has dealt with them very efficiently and effectively, despite what some people wish to portray.
These measures will make a difference. Some of the main measures include a reduction in the size of the board of FÁS from 17 to 11 people. That is a very good thing. Section 5 provides for the accountability of the director general of FÁS to other committees of the Oireachtas. This section provides for the director general to attend any committee appointed by either or both Houses of the Oireachtas and give an account of the general administration of FÁS. It is a very good measure in the legislation but I wish to see it go a little further. I realise this has been mentioned before but I wish to see two or three members of the board appointed by the Joint Committee on Enterprise, Trade and Employment. The Minister for Communications, Energy and Natural Resources, Deputy Eamon Ryan, has introduced a similar facility to the Joint Committee on Communications, Energy and Natural Resources.
It would be a very positive thing and would give confidence to all Members. It would send out a clear signal to wider society that there is a connection between the committee structures, appointments and important legislation. It would also result in a greater involvement by the committee, of which I am a member, as are Deputies Michael Fitzpatrick and Arthur Morgan. The Minister of State, Deputy Dara Callery is a former member of the committee. It is one of the best committees around and I am sure people would agree with me on this point. The committee is very well chaired. Deputy Willie Penrose is a very proactive chairman and very [24]facilitating to the members. It is important to reward good committees and that good committees are involved more in terms of a greater role. I am in favour of the appointment of two or three members by the committee but I do not wish to be prescriptive. The Minister should take on board this suggestion which was made previously.
A worker director should also sit on the board. This would send out the right message to the staff in FÁS who must be reeling at present. All they read is negative comment about the board of FÁS and this comment is not about the ordinary scheme or the ordinary person working in FÁS. It is about a certain group or cabal of the FÁS hierarchy who have clearly abused their position. The presence of a worker director on the board would send out a very positive message to the staff. It is important that we do not throw out the baby with the bathwater. The introduction of a rolling system of appointments to the board of FÁS is a very good idea. It would cut out complacency, freshen things up and bring a new perspective to the board on an ongoing basis. It would be a good and positive initiative in that regard.
In my personal experience, most of the schemes are very positive. For example, the community employment scheme provides a valuable service. Deputy Creighton will also recognise the contribution that such schemes have made at Ringsend community centre and the St. Andrew’s resource centre. Over a period one can see an increase in the self-esteem of individuals who participate in community employment and job initiative courses. They transform people’s lives and makes them feel included in society. They are also of huge benefit to the wider community by reducing social isolation and thus have a positive impact. People are concerned that these schemes may be under threat but we cannot do without them, including the FÁS schemes. I am not saying they cannot be changed or evolve, which would not be a bad thing, but the principle of having people working in the community through FÁS schemes is a good one.
FÁS community training centres cater for early school leavers. Young people’s self-esteem benefits from these courses. Education and training is so important in this regard. Almost without exception, they become better citizens as a result of their participation in such schemes, being more involved in the community, which is a good thing for society as a whole.
Job clubs offer practical advice and assistance to individuals seeking employment, which is a challenging position now. The professional staff of the St. Andrew’s resource centre are passionate about their jobs and believe they are making a difference. They are having a positive impact on the community.
It is important to acknowledge that there were problems in FÁS, including the misappropriation of funds, which is unacceptable. Those responsible cannot be allowed to get away with it, but we cannot lose sight of the fact that FÁS is a good organisation which has made a positive difference within our communities.
I would like to see provisions in the Bill for the dismissal of staff who are found to have acted inappropriately prior to the enactment of this legislation. When the current investigations are concluded, those people should be fired from their jobs where they are found to be guilty. In the private sector, if anybody was found to have signed off on an expenditure of €600,000 with nothing to show for it, they would not only lose their job but would also be prosecuted. We must ensure that happens to people in FÁS where breaches are established.
As I have said, however, the vast majority of FÁS staff are honest, hard working and give their utmost to the organisation. Unfortunately, the public perception of FÁS has been destroyed by a small number of people. This Bill will go a long way towards restoring the reputation of a body whose sole purpose is to assist and support people in the employment arena. Over the years, FÁS has made a huge difference to communities, but that has not always [25]been highlighted. People may be sceptical about FÁS because of what they have read in the newspapers, but when they see how it functions they realise it does make a huge difference.
I commend the Bill to the House.
Deputy Michael Fitzpatrick: I welcome the opportunity to speak on this Bill, which was published on 6 October. I commend the Minister for bringing the legislation before the House so quickly. The Bill, which amends the legislation governing FÁS, provides for stronger governance and accountability.
FÁS has been doing tremendous work at national level, but I wish to speak mainly about its operations in my own constituency of Kildare North. Those participating in FÁS in Kildare and rural Ireland generally can hold their heads high, notwithstanding the unfavourable press coverage that FÁS is currently receiving. Those participants are all very decent and honourable people.
FÁS anticipates the needs of, and responds to, a constantly changing labour market, which employs approximately 2 million people. It comprises a regional network of 66 offices and 20 training centres. FÁS operates training and employment programmes, as well as providing a recruitment service to jobseekers and employers. In addition, it delivers an advisory service for industry and supports community-based enterprises.
As someone who has been in involved in a wide range of community activities for many years, I know about the organisation’s operations at local level. I have witnessed the transformation of people on FÁS training programmes and their successful progression into permanent employment.
I acknowledge the work of FÁS for people with special needs, including its work for people with disabilities in co-operation with vocational education committees. In County Kildare, FÁS works with other State agencies, the voluntary sector and communities to do a tremendous job in improving the lives of those with special needs.
The Bill will allow the Minister to restore public confidence in FÁS. It will clear the way for that organisation to continue to deliver its training and employment programmes. The recent details released by FÁS show that the live register and vacancy trends for the second quarter of 2009 indicate that the jobs decline is becoming less severe. Unfortunately, however, redundancies have continued apace. The slowdown in numbers signing on can be attributed somewhat to a significant drop in the number of accession-state nationals joining the live register. Part-time employment has increased and now accounts for one in five jobs in the labour market.
The country needs FÁS now more than ever before because tackling the jobs crisis remains a clear priority. In the April budget, the Government introduced 23,000 additional education, training and work experience places for the unemployed at an estimated cost of €128 million. A number of these measures involve an innovative approach to interventions of this kind, including the introduction of a work placement programme, a short-time-working training programme, and part-time third level schemes.
Since the beginning of the year, we have re-allocated substantial additional resources to boost job search, training, work experience and educational opportunities. These include doubling the job search referral capacity from 6,500 to 12,250 per month and bringing the total number of places for referrals by the Department of Social and Family Affairs to 147,000 per year. Similarly, the Government has increased the total number of training places provided by FÁS this year to a total of 128,000, compared to the 66,000 places taken up last year. Other concrete actions taken were the provisions for trainees to progress their apprenticeships, the provision of more than 6,000 additional places in further and higher education and significantly improving access to supports for individual enterprise through assistance under the back to work [26]enterprise allowance and the back to education allowance schemes of the Department of Social and Family Affairs.
The proposed changes in the legislation will improve the effectiveness and governance of FÁS and strengthen its accountability in a number of areas. It will make the board more manageable through reducing its size from 17 to 11 members — I would reduce the number further because smaller numbers can make boards more effective — changing its composition and including the director general as an ex officio member and introducing a provision relating to the disclosure of interest by board members and the staff of FÁS. These changes are a most welcome development.
In concentrating on what went wrong within the organisation, the good work of its employees should not be overlooked. Their role and valuable contribution to Irish life must be commended. FÁS management has a great deal of which to be proud, in particular, the way managers developed the agency to deliver successful training schemes to the unemployed and people with disabilities in our communities. I thank them for that and for the support and co-operation extended by their frontline staff while working for the betterment of our communities. They developed the agency into a significant organisation delivering appropriate programmes in these recessionary times.
The Minister for Enterprise, Trade and Employment announced earlier this year a number of new training programmes for those who had lost their jobs in the construction sector. The new courses are aimed at helping those in construction to upgrade their skills to take advantage of the new wave of green and clean technology opportunities coming on stream nationally. The Minister detailed seven courses, including gas safety and installation, sustainable energy, building energy rating, smart intelligence building systems and installation technology and techniques. Since 2007 FÁS services to business have also delivered a number of programmes in energy efficiency, renewable technology, carbon footprint calculation and reduction, waste prevention, waste protection and water treatment aimed at the general workforce, including construction workers. All these courses have created a substantial number of jobs since their introduction in May.
Accountability is important when it comes to all boards. The Bill provides for the director general of FÁS to be made accountable to the Committee of Public Accounts and to other committees of the Oireachtas and removes obstacles to the disclosure of information by a member of the board of FÁS to the Minister for Enterprise, Trade and Employment regarding an issue of concern.
I refer to governance and the code of conduct. With regard to supervision of the agency, it is important that the Department should be satisfied systems are in place to effectively manage public funds. However, this should not be interpreted as the Department having to take on the responsibilities that probably belong to the bodies concerned. This is why, in addition to the Department monitoring activities — the second mechanism to ensure the requirements of the code of practice for the governance of State bodies are adhered to — it is important that it provides an assurance in the FÁS annual report confirming steps have been taken to ensure the appropriate controls have been effected. This would be in line with Department of Finance guidelines, which require that Accounting Officers should be satisfied that the requirements of the code of practice are being implemented in State bodies under their aegis.
It is important to emphasise that board members of companies and State agencies have a role to play and they should be fully aware of their liabilities and responsibilities.
Deputy Lucinda Creighton: I am pleased to have an opportunity to contribute to this important debate. While I welcome aspects of the legislation, it requires significant improve[27]ment and I hope the Minister of State will take on board the proposals made by the Opposition and Government backbenchers to constructively improve the Bill and make it more effective for the long-term viability of the FÁS organisation. The revelations about incompetence, overspending, waste and so on relating to the agency over the past 15 months are unfortunate and extremely worrying but it is appropriate that they were brought to the fore in the public interest. We have an opportunity to address the systemic failures in this organisation and other public bodies.
What has emerged regarding FÁS represents a deep and endemic cultural problem within the State across the public sector, in particular, but also across government. An acceptance of gross overspending, profligacy and waste, particularly during the boom years of the Celtic tiger, emerged together with an absolute absence of accountability for these developments. I do not need to list the endless spending programmes undertaken by governments in the past 12 years or so, for which there has been no accountability. No heads have rolled and nobody in Government has stood up and accepted responsibility, taken the flak and come clean to the taxpayer by saying he or she was the responsible Minister or junior Minister or the director or chief executive officer in the case of a public body.
A culture of denial and tacit complicity held sway throughout the State sector and FÁS exemplified this. While much of its budget is diverted to training and upskilling programmes, employment schemes and so on, it is still a huge monolithic organisation, the largest in the State. The many revelations of the past 15 months have been well aired in the media but a number were particularly alarming, for example, €622,000 spent on nothing, €600,000 spent on a television advertisement that was never broadcast and €9,200 paid for a car that was never delivered. That is a small sample of the incredible waste. It is most alarming that, as these revelations emerge in a drip, drip fashion through Freedom of Information Act requests and so on, there is no sense of urgency at Government level, particularly on the part of the Minister.
There was no sense of urgency at Government level, particularly regarding the Office of the Tánaiste and Minister for Enterprise, Trade and Employment. There was no sense of accountability or a strong view from the Minister that this problem had to be sorted out, that she was going to get to the bottom of it and root out any waste or weak links within the organisation. That exemplifies the cosy culture that existed but the Minister, in essence, did not want to expose or disclose what was going on regarding the FÁS board and the level of incompetency among senior executives working in that organisation. It was much more comfortable for the Government, and particularly for the Minister, to try to sweep it under the carpet and pretend that nothing was happening but the persistence of the Opposition, particularly my colleague, Deputy Leo Varadkar, and a very small number of journalists including Shane Ross writing in the business section of the Sunday Independent, ensured that the truth emerged, despite the Tánaiste’s reluctance.
In a statement in this Chamber in May 2008, the Tánaiste said she was satisfied that the FÁS board had clarified its procedures and strengthened its internal controls. That was good enough for her. There was no intention on the part of the Tánaiste to introduce legislation of the nature we see before the House today. There was no interest in bringing forward any legislation to deal with the systemic problems within the FÁS organisation.
Similarly, the Taoiseach, Deputy Brian Cowen, in June 2008, a month later, spoke about Mr. Rody Molloy whom he said was a person of the highest integrity. It is extraordinary that even as the revelations about the waste and the mismanagement in FÁS were emerging both the Taoiseach and the Tánaiste, holders of two of the highest offices in the land, refused to delve into the problems within the FÁS organisation, refused to take on the senior executives in the FÁS organisation and turned a blind eye to what was going on at board level in terms of the [28]incompetence prevalent in it. That is extremely worrying. Only when the arm of the Taoiseach and the Tánaiste was twisted behind their backs did they take any action on this issue, and it was very slow in forthcoming. Throughout this entire saga there has been no sense of urgency at any point from the top level in Cabinet to address those problems. If we look at the history of the FÁS organisation and the way it is operated, the first recommendations for reform of FÁS emerged 17 years ago in 1992. Throughout the period from 1992 to 2009 nothing happened in terms of trying to reform the internal operations of FÁS.
We finally have legislation before the House. There are some meritorious elements to the legislation but it does not even begin to go far enough. The main proposal, which has been much vaunted by the Government, is the one to reduce the size of the FÁS board from 17 to 11. There is no doubt that a board of 17 is too big and unwieldy for any State or semi-State agency and it will be slimmed down in accordance with accepted standards across other State boards. I do not object to the removal of the sectoral interests on the board of FÁS. A type of cosy cartel has developed not just in FÁS, but across all State agencies. It is certainly a cosy arrangement between some of the unions and the representatives from organisations such as IBEC and so on who are all sown into the social partnership process which has played a significant role in bankrupting this country. It is right that this element is removed but I am not sure I am satisfied with what will replace it.
We must see an improvement in the way the board operates. I have serious reservations, and it has been raised by Fianna Fáil backbenchers in the past hour as I sat in the Chamber, about the lack of any parliamentary scrutiny or input into the appointment of individuals to the new board of FÁS. That presents an opportunity that is worrying. We have seen throughout the decades the cronyism that has been stitched in to ministerial appointments to State boards. My instinct and any sense of propriety has to suggest that we should be moving away from that kind of culture, but the procedure outlined in the legislation before the House will copperfasten it because we are entrusting in the Minister for Enterprise, Trade and Employment, Deputy Mary Coughlan, the exclusive power to appoint people of her choosing to this board without any scrutiny in the Oireachtas or accountability throughout the appointment process to the Houses of Parliament. That is a dangerous position in which we will find ourselves.
There is a perception, which the Minister might say is wrong but I believe is correct, that for the past 15 years State boards have been the preserve of the friends of Fianna Fáil. I find it amazing that the Government, given everything that has happened, particularly in the past year and a half in terms of public cynicism and scepticism about what has gone on and what has brought the country to its knees, that there is no meaningful attempt to try to address that or move in a new ethical direction for Irish politics. That is regrettable.
Fine Gael brought a Private Members’ Bill before the House three weeks ago which examined transparency in appointments to State boards. We recommended that, in the case of all future appointments, any proposed chairman of a board would come before the relevant Oireachtas committee to answer questions, put forward their credentials to members of the committee from all parties and there would be an opportunity for some robust debate. That would be a healthy and welcome development. In addition, we proposed that all members of State boards should have their credentials laid before the Oireachtas committee. They may not have to appear in person but at least the Oireachtas committee would be in a position to debate those people’s credentials. That is the way we must move forward.
Some of the Fianna Fáil backbenchers proposed a system whereby three members of the FÁS board should be proposed by an Oireachtas committee, but I am not sure that would solve the problem because eight members would still be appointed at the behest of the Minister. They may be friends of Fianna Fáil or personal friends of the Minister who would be appointed [29]to the board without any form of scrutiny. That is not a solution to the problem we face and it is not a way in which to ensure transparency in the appointment of members to State boards, particularly in regard to FÁS because FÁS has been damaged in the eyes of the public, and that is unfortunate. To restore public confidence in FÁS we need a more transparent formula, and I hope the Minister of State will communicate that point to the Minister as I am sure she will not read the transcript of this debate.
Public appointments should be made in public and they should be open to public scrutiny. Given what the people of this country are going through, with 430,000 people on the live register and a budget less than two months away which we are all aware will be swingeing, if we are to restore any sort of public confidence the public should have the right to see that the conduct of public policy and boards, as well as that of the Government, is transparent. I hope the Minister of State will take that on board.
There should be a workers’ representative, which my colleagues have already alluded to. The staff in FÁS are currently extremely demoralised. Every Member of this House knows people involved in training programmes, community employment schemes or who are involved in FÁS at some level. We know that the vast majority of such people are good and decent people who work hard to do their bit to try to assist people who find themselves in the unfortunate position of being unemployed.
They do wonderful work and we must restore some sense of integrity, self-confidence and self-belief in the ordinary and hard-working decent people who work in FÁS at all levels of the organisation. Not all of them have been engaged in the kind of profligacy we have seen at the very top level in FÁS and most are appalled by and disapprove of it. They are very demoralised by being associated with it. We owe it to them to give them a role in restructuring FÁS and restoring it as a body of good repute in the public mind. I hope the Minister will accept the Fine Gael amendment in that regard and we will have a workers’ representative on the board.
I will discuss a number of other aspects of the legislation. There is a proposal for the new director of FÁS to be accountable to the Oireachtas, which is welcome, and I support that element. It does not go far enough as the director will be accountable to the Oireachtas after the appointment of a board but we must see accountability throughout the process and not just afterwards. I hope this will be considered.
There is a protection for whistleblowing, which is welcome, and there is also a requirement for the disclosure of conflicts of interest. We should take this right across the public sector. With the Dublin Docklands Development Authority, we have seen enormous conflicts of interest between people serving on a variety of boards while sitting on the boards for banks, for example. That must be eliminated from the culture in public life in this country. This legislation is a small step in the right direction in that regard and we should see it right across the public sector.
There will be a mandatory disclosure of interests and, importantly, there will be a provision allowing for the dismissal of a director of FÁS. I am not aware of any provision for restriction of a director so perhaps the Minister will clarify that. If somebody fails to disclose a conflict of interest and is subsequently found out, leading the Minister to exercise his or her power to dismiss, will that person be entitled to be appointed to a variety of other State boards? There should be a provision for restriction, even if it is only for a specified period. If the process is to be consistent, we must consider the future as well as the immediate sanction.
There should also be some provision for a breach of fiduciary duty. By this I mean that if an executive in FÁS presides over the sort of waste that we have seen in that organisation or the type or level of abuse of taxpayers’ money we have witnessed, there should be a mechanism to facilitate the speedy dismissal of that person rather than a golden handshake. We must move [30]away from a culture where when the Government is embarrassed by an issue, it may dismiss people but give them a golden handshake of €1.1 million, for example. That is unacceptable and we need robust legislation to allow for the dismissal of such people without any perks or golden handshake.
FÁS plays an extremely important role in every community in this country, from Dublin to Donegal, but it must adapt and adjust. Some schemes, such as the community employment schemes, are wonderful. I know that most of the child care facilities in this city have been staffed by community employment workers so it has been very valuable. Many of the training programmes are out of date and we must adjust that. FÁS needs to raise its game enormously and must respond to the changing market and economic needs of this country. I have much confidence in the organisation for the future but it must adapt, and the Minister should put a framework in place for that adaptation.
Deputy John Browne: I will comment briefly on the Bill, which I welcome. The Labour Services Act 1987, which established FÁS, was enacted a long time ago and even if there had not been any difficulty with FÁS, it is important that the area be reviewed. I welcome the Minister’s commitment to a reduction in the size of the board of FÁS and the introduction of a rolling system of appointments. There will be a removal of the automatic right to nominate individuals for appointment to the board of FÁS from bodies not directly accountable to the taxpayer and the director general of the organisation will be made accountable to the Oireachtas. These are just some of the proposals.
We have all benefited as politicians from working with FÁS down through the years and the shenanigans of recent months, particularly at the high level in the organisation, in no way reflect on the personnel on the ground. Like all politicians, we deal on a daily basis with people working in the local FÁS office, and we find them very helpful, supportive and always looking to do what is best, particularly for the unemployed people up and down the country.
Deputy Ruairí Quinn is in the Chamber. Going back to when Deputy Howlin and I were members of Wexford County Council, we put forward the first proposal for community employment schemes.
Deputy Ruairí Quinn: What could the Deputies not start within the model county?
Deputy John Browne: The proposal was put forward by the late Rory Murphy. We all supported it and met with the then Minister, Deputy Quinn, and the first community employment schemes in Ireland were probably born in County Wexford. We have a close affinity with such schemes and we have benefited greatly in the county from schemes down through the years.
The schemes have been welcome and worthwhile, particularly in rural Ireland, and I would like to see the Minister involved in making more money available to allow more people to go on them. I wonder why people who may be 60, 61 or 62 on a community employment scheme may be asked to leave and go back on social welfare because they have been in the scheme for a number of years. There is a need for the Ministers for Social and Family Affairs, Enterprise, Trade and Employment and Education and Science to bring about far better co-operation between Departments to ensure that people who want to avail of an up-skilling scheme or want to be involved in retraining or in a back-to-education scheme would be allowed do so without all the bureaucratic nonsense we encounter on a daily basis in the political structures of this country.
It would be far better for people to get an allowance to help themselves secure a job rather than just drawing social welfare and sitting around at home all day. Many people do not want [31]to do this and would prefer to avail of schemes, retrain, up-skill and be involved in work. I welcome the Minister’s commitment to that and in the new programme for Government there is much stated about retraining, up-skilling and ensuring people have an opportunity to be involved.
The live register has 423,000 people on it and tells its own story about the need for a very co-ordinated FÁS approach. It is not good enough that the board of FÁS, which operated in a way none of us would deem acceptable, should tarnish the name of and great work done by that organisation. The figures for 2008 show that approximately 26,000 apprentices were trained to meet future craft skill needs, 32,000 employees were upskilled in priority skill areas, under training for the unemployed, 7,900 people received specific skills training and 24,000 people were on community employment or job initiative programme schemes. It is obvious that, at the coalface, FÁS is doing a great job. However, the Tánaiste must take action to deal with those at a higher level and I welcome the fact that she is doing so.
The Tánaiste must also give serious consideration to reviewing how the more than adequate funding made available to FÁS is spent. Is that money being spent on the right people and in the right way? Like many others, I support communities that want to put in place community employment schemes, training schemes or back to work schemes. However, it is sometimes difficult to obtain a response regarding such schemes from within the larger FÁS organisation. When a response is received, it is usually to the effect that money is scarce or that a new scheme cannot be brought on stream because FÁS is fully committed to those that are already in train. The Tánaiste should examine the possibility of redirecting funds to the areas where they are needed.
A huge number of young people left school at an early age as a result of the boom in the building industry. These individuals earned big money as labourers and as trainee carpenters, electricians, etc., but since the collapse of the building industry, many of them have lost their jobs. These young people want to access schemes in order that they might upskill or retrain. Some of them also want to return to VTOS or the education system in general. I am of the view that here should be a number of schemes which would come completely under the remit of the Departments of Enterprise, Trade and Employment, Education and Science and Social and Family Affairs. If such schemes were established, people could gain access to them quickly instead of being obliged to wait around for someone to make a decision.
The officials who work in the FÁS offices in Wexford, New Ross, Enniscorthy and Gorey know how the system works and are in a position to inform people about that to which they will be entitled when they are on schemes. These officials, and their counterparts throughout the country, should be consulted in order that we might discover what is in people’s best interests. Those who have been employed in FÁS offices for many years and who have vast experience in dealing with people are never asked for their views. These individuals are never asked about the changes that could be made or what type of new schemes could be introduced in order that the unemployed might benefit from them. That is completely wrong. There should be a system in place under which those to whom I refer would be consulted on a regular basis by their regional or general managers and given the opportunity to have a say with regard to what is best for the unemployed in a particular county.
I ask the Minister to reflect on the different types of schemes that are in place at present in order to discover whether they are relevant to the huge numbers of people who are unemployed and identify any changes that might be brought about. I also ask her to reflect on the make-up of the board in order to ensure that those who serve on it act in the best interests of taxpayers and the unemployed. I met a number of highly qualified individuals in recent times who informed me that they would be prepared to serve on the board of FÁS and that they [32]would not expect to be remunerated for so doing. Those to whom I refer are either retired or semi-retired and have plenty of time on their hands. The Tánaiste should consider appointing such people to the board.
I again welcome the Bill. It is 22 years since the legislation to establish FÁS was introduced. In that context, it is timely that we are reconsidering the position and reflecting on what we intend to do in the future in respect of this organisation.
Deputy Ruairí Quinn: I wish to share time with Deputy Morgan.
An Leas-Cheann Comhairle: Agreed.
Deputy Ruairí Quinn: I thank Deputy Browne, the new chairperson of the Fianna Fáil Parliamentary Party, for mentioning me during his contribution. I recall the occasion to which he referred.
It is important that the House should remember the history of FÁS and understand how we reached this point. A great deal of ill-informed comment has been made about the cosy cartel, a matter to which my constituency colleague, Deputy Creighton, also referred. FÁS succeeded AnCO, which was established in 1967 and which was a training organisation with responsibility for formulating apprenticeships. It was logical and essential that employers and the trade unions should be represented on the board of AnCO. It would, after all, be their representatives who would ensure that properly qualified apprentices would emerge into the workforce and lift its skills base. That is exactly what happened.
When I served as Minister for Labour in the early 1980s, a proposal came forward that three organisations, namely, the placement service of the Department of Labour, AnCO and the Youth Employment Agency — at one point a fourth agency, CERT, was included — should be merged. Legislation relating to the establishment of a national employment training agency was introduced at that time but it did not progress beyond Second Stage because, in the dying days of that Dáil, CERT mounted a wonderful rear-guard action and torpedoed it. My successor, Deputy Bertie Ahern, introduced the legislation that brought about the establishment of FÁS.
A famous American academic who spent a sabbatical here and who examined the work of FÁS and the way its community employment programmes — to which Deputy Browne referred and which, prior to the establishment of FÁS, were directly administered by the then Department of Labour — famously referred to the organisation’s flexibility and the fleet-footed way in which it operated. He also referred to it as the Government’s Swiss army knife — a tool that could be applied to any kind of task without the need for endless negotiations on devolution, consultation, displacement, replacement, etc. There is a grave danger that we might throw the baby out with the bathwater in this regard. I could say much more about that matter but I will not do so.
There has been a great deal of media comment regarding the social partners who are members of the board of FÁS and their apparent failure to take the necessary action following the revelations that emerged. It was the board, in its entirety, which established the internal audit that revealed all of the unacceptable practices that were prevalent in FÁS. In addition, the board made it known that it was not informed about certain matters by members of the senior management of the organisation. If one is not informed of something and one has no reason to believe one is being excluded from a particular process, then one is surely entitled to be treated with a certain degree of understanding.
[33]The one group of directors who have not been referred to — with the exception of a previous intervention I made in respect of them in the House — were the four senior civil servants who were appointed to the board by the Departments of Finance, Enterprise, Trade and Employment, Social and Family Affairs and Education and Science, respectively. These individuals are full-time public servants, not part-time board members. When they leave board meetings, they are obliged to return to their duties in their respective Departments. What were they doing in respect of the unacceptable practices that emerged? Did they have any suspicions with regard to such practices? Did they meet and consult each other on this matter? Did they bring to the attention of, for example, the excessive amounts of money that appeared to be available to FÁS at a time when an endless number of other priorities required attention? Were proper reporting mechanisms in place in order to allow these civil servants to report to their Ministers?
I do not know when the Second Stage debate on this legislation will be completed. In any event, the matters to which I refer should be dealt with on Committee Stage. Unless there is a proper mechanism in place to allow a civil servant to report to his or her parent Department or the Department of Finance, we will not improve the operational capacity of FÁS. My party will be tabling amendments in respect of this matter on Committee Stage.
One specific issue I wish to raise is the traditional turf warfare that has gone on for decades between what are now called the Departments of Education and Science and Enterprise, Trade and Employment. Formerly it was a war between the old Departments of Education and Labour. The basic point was that the Department of Education and Science is responsible for producing young adults who can read and write and that it is not the responsibility of a training agency to engage in picking up the failures of the education system by running literacy programmes in parallel with programmes in carpentry, electricity or child care.
I am pleased the Minister of State, Deputy Haughey, is present in the Chamber because he has responsibility for the area of literacy to which I refer. His cross-appointment in the two Departments is welcome. Nevertheless, I have it on direct account from people in the literacy field that the turf war continues and Members will be discussing amendments on this issue in my name and others when the Bill reaches Committee Stage. While I am conscious of time constraints, out of courtesy I wish to give notice to the Department and the Minister of State, Deputy Haughey, that they will be asked to examine the existing legislation from 1987 and 1999. They will be asked to consider the possibility of granting additional powers to the Minister of State or Minister to give policy directions to both the board and senior management of FÁS and to its local operations, which is where the problem exists vis-à-vis the issue of illiteracy.
If one is unable to read in this economy, one is unable to get a job. I refer to functional illiteracy. While I acknowledge there is a dispute about the figures, which hopefully have improved subsequently, the Minister of State reluctantly revealed to me on foot of a number of supplementary questions that the last time it was surveyed, it was of the order of half a million people. I repeat that the figure is half a million people out of a workforce of 2.2 million people. Moreover, even when virtually full employment obtained, the Governor of Mountjoy Prison, John Lonergan, the Irish National Organisation of the Unemployed and many others noted that the basic reason many people were not getting jobs or would not go for job interviews was that they lacked sufficient confidence in themselves to be able to read the instructions that came with the job specifications. This is the reason many people did not apply for jobs. While they were happy to work in the kind of social and community employment programmes to which Deputy Browne has referred and their work is a valid contribution to the stock of wealth within our community, these jobs were not self-sustaining. The social and community employment programmes that I had the honour of introducing were not designed as a permanent bed. They were intended as a spring from which many people could bounce back up into the sustainable labour market. The third sector was intended as a place to provide an outlet [34]for the energies and creativity of those who did not wish to be at home. No matter what was the rate of unemployment payment, such people would prefer to be out working.
If, on examining the amendments to be tabled by the Labour Party, the Minister of State is dissatisfied with their formulation, he should table better ones himself if he so wishes as I believe we share a similar objective. At present, our education system fails young people coming through the system for a variety of reasons. Members are familiar with both the drop-out rate and the profile of those who drop out. Manifestly and overwhelmingly, they are 15 year old and 16 year old working class male children. These are the individuals who at best drift into long-term unemployment or at worst, straight into Mountjoy Prison via the drugs trail, criminality and so on. It is much cheaper, more effective and more enabling for all concerned to use sections of the training programme of FÁS to pick up where the Department of Education and Science, an overcrowded classroom or an under-motivated family have left off. I consider families to have the primary responsibility to instil an understanding of reading in a child. A child who does not have a story read to him or her going to bed at the age of two or three is put at a disadvantage relative to those children who are lucky enough to have parents who will read. However, there are houses in my constituency that have half a dozen televisions, radios and DVD players but not a single book. No school can counteract this.
I welcome this new legislation. While there is much to be said in this regard, some of it already has been said. FÁS and AnCO have a glorious past and a very good record. In respect of what has happened recently, there will be another day and another place to deal with that issue and it should be dealt with justly. However, Members must ensure that the new FÁS under new direction has the capability to pick up, as a second chance, those young people our education system has failed.
Deputy Arthur Morgan: I thank the Labour Party and Deputy Quinn for sharing time with me. At the outset, I entirely agree with Deputy Quinn’s comments on the issue of literacy and numeracy. However, I believe one must go beyond Deputy Quinn’s comments on what one might call the establishment, in the form of FÁS, the education system or whatever, to deal with it. A national crusade to combat the problem is required, which would involve calling on people to volunteer. I believe many people would volunteer for a national crusade that was well planned and laid out to ensure proper instructions were in place to achieve results, which would be critical to the entire project.
On publishing the Bill, the Tánaiste heralded it as a root and branch culture change in accountability and transparency at FÁS. However, I am unsure. The Bill will not do this as it would take political leadership and honesty to achieve such a root and branch change. While I welcome the Bill, it can be significantly improved through amendments. In common with other Opposition parties, I intend to table amendments on behalf of Sinn Féin and the Minister should examine them with an open and generous mind. It should be accepted that the objective of such amendments is to improve the regime at FÁS. While the scandals at FÁS are symptoms of the problem, they are not a disease. The disease, in respect of the corruption and cronyism that obtains, permeates all public bodies. How can one expect the public to have confidence in public bodies when it does not have confidence in the Government? The public perceives that the Government is making no serious attempt to combat what is happening or to put in place measures that will ensure accountability and transparency in such bodies, which is the starting point.
As for expenditure, while Members are familiar with the FÁS budget, I refer to the wasteful expenditure by the Government over the past decade. At this stage it sounds like a poem or a ramble about the M50, the port tunnel and so on. However, the backdrop to this situation is [35]that 430,000 people are unemployed on the live register. Many of those affected are from families whose only income now comes from jobseeker’s benefit or jobseeker’s allowance. While such people try to meet all the other financial needs of their families in respect of feeding and clothing their children, public services are being cut back. For example, there have been cutbacks in respect of the book scheme and elsewhere within the education system that have imposed great costs on families, which is grossly unfair. It further impoverishes and puts into difficulties unemployed people, which will exacerbate the literacy and numeracy problems that have just been outlined by Deputy Quinn. Similarly, there have been proposals from an bord snip nua and there was an emergency budget last April. Members are discussing the NAMA legislation at present and a budget will be delivered in a few months’ time that will impose further difficulties for people, particularly the aforementioned low-income families.
Meanwhile, back at the ranch, I refer to the FÁS trips in which Ministers partook. How could they not have seen what was happening, given their presence on those trips? Far from not wishing to ascertain what was happening, they joined in. While I do not wish to single out a particular Minister as a number of them were involved, Members are aware of the €400 or €500 hair-do received by the then Minister, Deputy Harney. One should measures that against some of the issues Members have just been discussing. Moreover, it is clear that nothing in FÁS can be addressed without alluding to Mr. Rody Molloy’s departure from the organisation. I refer not only to his €1 million-plus bonus but to the provision of the car that was not even mentioned. There also was the issue of legal advice and whether it was taken. Of course it was not, but the reason it was not taken is the key question. I believe all Members know the reason.
Responsibility for what has gone on at FÁS lies with successive Ministers. Why did they not summon senior individuals from FÁS to ask what was going on, what measures and structures were in place to measure people’s acts and to measure how the massive expenditure of €1 billion was taking place? It is clear that those concerned were not even behaving in the responsible fashion that would be adopted by someone running a small enterprise in respect of simple structural accountability issues. It did not happen.
We all agree there must be a complete overhaul of FÁS and that we must turn it around so that planning and development is introduced to the agency. I accept that new courses have been designed but not enough have been designed over the past five years. There is still too much of the same. This must change and we need vision and upskilling. Will we upskill people to go back to what they were doing previously or will be aspire to go beyond that to achieve something ambitious? If so, we need to plan better courses, delivered more cleverly in the community. Some of this is happening but not enough. We must review expenditure but this has not happened.
I acknowledge a point made by an earlier speaker regarding the ability and honesty of many people in FÁS. Like many other Members, I worked with FÁS on occasions. In my public and private life I found those who worked there to be excellent people of the utmost probity. They are very hard-working and ambitious for the organisation, not for themselves. As when we talk about those who work for the HSE and the banks, it is important to acknowledge that frontline people sometimes carry the can of criticism from the public because of what has gone on at another level in the organisation. That is most unfortunate.
Community employment schemes are increasingly important. We must also be honest and say that some of the schemes are bordering on the ridiculous. Many accounts have been brought to my attention of workers huddling around the trees on the lawn of parochial houses. That is not very constructive and there is plenty of work to be done in the community. People on these schemes should be in the community and the schemes should be developed. I would like to see significantly more community employment schemes throughout the country.
[36]With regard to the provision in the Bill that reduces the number of board members from 17 to 11, I believe nine would have been better but we can live with 11, given the size of the organisation. Page 11 of the Bill deals with the qualifications of the board members and states that they should have some expertise in finance, trade, commerce, corporate governance or public administration. These are laudable qualities but we should look beyond this and require board members to have knowledge of training and unemployment. Perhaps there should be someone who came through the Irish National Organisation of the Unemployed, INOU.
I agree with the proposal of Deputy Richard Bruton to refer appointments to public bodies to Oireachtas committees for scrutiny. The proposal for the Minister for Enterprise, Trade and Employment to consult with the Minister of the Social and Family Affairs and the Minister for Education and Science is looking in the wrong direction. Proposals for board positions should be taken from the Joint Committee on Enterprise and Small Business in the future. Proposed appointees should appear before the committee for scrutiny. These moves reduce the potential for cronyism.
I am also concerned about the limited period within which whistleblowers can come forward. Cumulatively it comes to six months initially and then it is extended to 12 months, totalling 18 months. From recent scandals we know that sometimes whistleblowers do not come forward for a period considerably longer than that and I hope the Minister will examine this and consider a longer period.
I hope other Members are receiving as many representations on the back-to-education scheme as I am. I have been inundated for weeks on end about the difficulties people have in accessing back-to-education payments to enable people to improve themselves through the education system. I hope the Minister will examine this because it is at crisis point.
Deputy Paul Connaughton: I propose to share time with Deputies Andrew Doyle and Jimmy Deenihan. This Bill is before the House at a crucial time. It is crucial to the 500,000 people likely to be out of work at the end of this year. What a daunting task it is for a training organisation like FÁS to find a job for every one of these people. That must be the mission statement of the organisation and these people must be trained to find a job.
A nation like ours depends almost solely on the export of goods and services. We must have a viable, professional and dedicated training agency that will train and equip young people to enable them to compete with the very best across the world. That is very daunting. The national training agency must be able to retrain workers who lose their jobs and continually upskill the workforce in an ever-changing work environment. Such a training agency must have credibility and must subscribe to best practice standards.
I am long enough in this House to remember AnCO before FÁS came into being. I had a great association with it. What I knew nationally and locally of AnCO and FÁS was that both did tremendous work in the 60s and 70s. Despite the controversy at the moment, to which I will refer later, FÁS has done a very good job. The shenanigans of the recent past are not the fault of local staff. The people who were involved in that have besmirched the good name of a good training organisation.
Through the years, some of the best carpenters, electricians, builders and block layers came through the system in vast numbers. They could take their place in this country or in any country throughout the world with the certification they had. They called it the little brown envelope — I do not mean big brown envelopes.
Whatever we say about the well-documented carry-on of the FÁS executives, their luxurious lifestyles and their silliness in abusing their privilege, what is worse is the question of the [37]integrity of the certification of courses. I sincerely hope it is isolated and that the so-called internal audit unit will tell us over the next few weeks that it is not widespread. I have not been told by anyone in my part of the world that it happened there but the luxurious surroundings and expenses of the head people in FÁS are nothing compared to the question of the integrity of the certification of courses.
In fairness to all Governments and the Civil Service, the leaving certificate and junior certificate both have an outstanding reputation. We want the same for FÁS. It is against that background that I would like to develop my contribution but I am short on time. I hope the accreditations have credibility and that if somebody goes through a FÁS training course, no matter what it is, their expertise and educational attainment will stand up to what is on the certificate. One can put it in any language one likes but that is it.
As I have stated on many occasions, I am and always have been an advocate of the community employment schemes, particularly with regard to how they relate to rural Ireland. I sincerely hope this new board will not alone continue, but enhance those schemes because local authorities are moving away from them due to a lack of funding and outdoor staff. Anything of a community nature that happens in rural Ireland is community employment scheme centred. A major argument is taking place on whether it is training or institutionalised employment. I could not give a hoot what it is called; all I know is that very important work is being done by people who are very proud to be doing it. Unfortunately, there is nothing else for them to do if they did not do it.
I am sorry to state that those who will be appointed to the board will be political appointees. I would have thought the Tánaiste in particular would have learned enough over recent weeks to ensure a broader base and that at least the chief executive would have to come before the appropriate Oireachtas committee for all to see that he or she was the person that should be appointed, irrespective of the Minister in place.
Deputy Andrew Doyle: The purpose of the Bill is stated as being to effect amendments to improve the effectiveness in governance of the board of FÁS. This is taken against a background where, from 1999 to 2008, the budget for FÁS doubled from €527 million to just over €1 billion. It coincides with the time when we got as near to full employment as we were ever going to get. Supervision and oversight of the spending of this substantial amount of taxpayers’ money was given to 18 people appointed by the Minister for Enterprise, Trade and Employment representing unions, employers, the Minister and employees. Where did it go wrong? FÁS is in the headlines for all the wrong reasons and this has been going on for up to the past ten months. Rumours have been rife about misappropriation of funds, misconduct, wasting money and even fraud, and these matters have not yet reached their finale.
What the Bill proposes is not only worthy, but essential. However, it is the same old same old. The constitution of the new board will be in the gift of the Minister. In recent weeks, Fine Gael tabled a Bill on transparency of appointments to public office, which would not have cost the State anything. It would not have cost the Ministers involved anything to have yielded to what we were trying to do. It was all about openness, transparency and accountability. The Bill seeks to reduce membership of the board from 18 to 11 and states that people will be appointed on their merits, taking into account particular talents and experience. Previously, we have seen where this has not been the case. There is no due selection process for anyone other than the Minister and accountability is not satisfactory.
People are losing employment at a rate we have never experienced previously. When FÁS had a budget of €1 billion, why did it not prepare for a rainy day? We read about abuses, splurges and money being wasted. Be that as it may, why is there no evidence of a plan for the day when the bubble would burst? Perhaps it was not anticipated that it would have been to [38]the rate, extent and speed that it occurred, but it was inevitable, as night follows day, that this day was going to come. FÁS is not catching up and not only this but its agenda seems to be to firefight the allegations being made about it. I have spoken to people in Wicklow about this and they are somewhat demoralised because the focus is not on new initiatives and training programmes.
We hear the Minister discuss initiatives that are being taken. If a small business which employed five people was wound up, those five people would be entitled to jobseeker’s benefit and allowance. I have spoken to people who were self-employed owners of such a business. They and their families have cried down the telephone to me. Their assets may be in examinership. They are going to the Society of St. Vincent de Paul because they cannot access a bob. FÁS and the Department of Social and Family Affairs need to be able to co-ordinate a plan for such people. These are uncharted waters but we have to be able to accommodate them. People in this situation cannot qualify for retraining programmes because they are not entitled to jobseeker’s allowance.
I believe that if they have assets or money over the value of €40,000 it is counted against them. In time, some of these people will employ again if they get through this, obtain credit and re-establish themselves when the economy picks up. They are our innovators. The problem is that they are not allowed to put money into a seed capital account and this should be considered. They should be allowed to do so and have that money disregarded for the purposes of allowances and benefits. They should then be allowed retrain and reskill because they are the people who had initiative. We saw them on television and read about them when they were starting up their businesses and working 18 hours a day to get them off the ground. Many of these people are now in trouble. This is not of their own making; circumstances have caught up with them.
I know it is outside the ambit of the Bill but I appeal to the Minister of State to take this into account in establishing how the new FÁS board will be constituted and how its role and functions will be overseen. FÁS should also re-evaluate what it wants to do. Unfortunately, as has been stated, everything about FÁS in the media at present is negative. It is not about job creation or stimulating the economy and working with people with initiative. Enterprise Ireland, county enterprise boards and FÁS should work in harmony and there should be a consultative arrangement between the Department of Enterprise, Trade and Employment, FÁS and local social welfare offices.
Deputy Jimmy Deenihan: From reading the newspapers and listening to contributors on all sides of the House, it is obvious that the image of FÁS as an organisation has suffered immeasurable damage in recent times. Its credibility among the public is gone and its brand fatally flawed. This legislation is merely an interim measure that will not change that. Instead, the whole structure and purpose of FÁS as a training organisation will have to be reviewed. We will probably have to revert to the AnCO structure in place before FÁS which was geared towards training apprentices and the unemployed and upskilling low-skilled workers. Due to the bashing FÁS has taken, some people are reluctant to engage with the agency. The Minister of State, Deputy Calleary, is a pragmatist and should overhaul the agency’s operation as the brand is now fatally flawed.
My experience of FÁS has been positive. What it achieved across the country has nothing to do with the damage recently caused to the FÁS brand at its top level. That damage was synonymous with the Celtic tiger era when no one cared about anything because there was so much money around. The public servants entrusted to look after our interests must all share [39]the blame for the demise of what was a great organisation. Ministerial responsibility must be reintroduced into the agency.
If it were not for FÁS there would not be one tourism product in north Kerry. I have worked closely with FÁS on projects of scale and quality that are still in place as a testament to the agency. Unfortunately, because of a change FÁS can no longer get involved directly in community projects.
Phases 1, 3, 5 and 7 of an apprenticeship must be spent with an employer while phases 2, 4 and 6 must be completed in either FÁS or an institute of technology. This year, the Tralee FÁS centre only took on 60 apprentices when between 2004 and 2007 the annual figure was 300. The reason for this is simple. There are no employers to take on apprentices for their phase 1 placement, meaning they are being deprived of a career pathway in the meantime.
The Minister of State should consider reopening the community youth training programmes to allow apprentices to work on projects providing community services and amenities, thereby allowing them complete their apprenticeship phases. In Tralee, instructors, many of whom are doing other work, could supervise apprentices as they complete their phases through working on community services and projects. There is nothing wrong with local authorities starting people on apprenticeships, paying a fair but reasonable rate. It would ensure these apprentices will be qualified for the future, creating a base of craftworkers for when the building industry picks up again.
This debate is only but the beginning of a total review of what FÁS stands for and what can replace it because its brand is now fatally flawed.
Deputy Joanna Tuffy: I do not agree with Deputy Deenihan’s claim that the FÁS brand is fatally damaged. It may be damaged but not fatally. Most unemployed people look to FÁS as the main public employment service.
As Deputy Deenihan himself said, FÁS has provided many good initiatives. For example, last year electrician apprentices were facilitated by the agency to finish their training with the ESB. My brother went on a placement as an engineer through FÁS to Japan. I worked on a social employment scheme which helped me build up my CV and eventually secure a job as a clerical officer in the public sector. FÁS’s many social employment schemes enabled communities to provide community services. In Lucan, for example, the tidy towns committee had a worker provided by a FÁS employment scheme.
Deputy Jimmy Deenihan: I am not disputing the work the organisation has done. It is the brand that I am concerned about. People are not associating with the brand any more because of the recent damage done to the organisation. I have not criticised the courses provided by FÁS or those involved in them.
Deputy Joanna Tuffy: I accept that point but we should not think of the term “brand” in this context.
Deputy Jimmy Deenihan: It is image then.
Deputy Joanna Tuffy: I know it comes down to language. There is a tendency to talk about brands in this context. There is too much bringing in of free market concepts into the operation of the public sector.
I do not agree FÁS has been fatally damaged but accept Deputy Deenihan acknowledges the good work it has done. Many current public sector jobs were initially provided through FÁS schemes such as special needs assistants. Other schemes saw workers provided to the voluntary sector and involved in the restoration of heritage buildings and local community [40]amenities. When I left college, some graduates took a six-month course with FÁS and were able to get jobs afterwards.
The bulk of the budget for employment services in the public sector goes through FÁS. I agree with other speakers that we should not throw out the baby with the bathwater. While I agree the agency’s board needs to be reformed in light of what emerged recently, it is important the right board members are selected. They must be people who care about and have experience in employment. In this regard, trade unionists can provide the necessary experience to facilitate FÁS in pursuit of its programme. I made this point last week. As Deputy Browne said, we are amending a Bill that is 22 years old. The main part of the Bill in 1987 set out the functions of FÁS, but there is nothing in this Bill about reconsidering those functions and whether they need to be modernised. I do not agree with Deputy Deenihan that we need to replace FÁS, but how do we make it better? It is a shame that the Minister is not using this opportunity to consider whether the functions of FÁS should be amended to take account of existing needs. Maybe they are fine but I am surprised that the Bill does not deal with anything like that. FÁS is more than a board. The board is there to help FÁS operate and to oversee it, but the main purpose of FÁS is to provide services to the unemployed through training opportunities and job placements.
An OECD report based on social, employment and migration working papers, published earlier this year, analyses the services provided by FÁS, the Department of Social and Family Affairs, local employment services and other organisations and makes recommendations. They are not all correct but they raise interesting points. The report could form part of the review of the functions and purpose of FÁS to meet modern needs.
When talking about a knowledge-based or smart economy we should not lose sight of the fact that we will always need good, skilled tradespeople although our needs are different now. We need sustainable buildings and it is important that apprentices are familiar with how to mitigate climate change and conserve energy in our buildings.
The OECD report thought that the strong training focus in FÁS was good. We should make sure to keep that up and examine what courses are needed for today and whether FÁS provides enough of them or the right ones. Do the right people know about the courses and are they able to access them? The big complaint in the report is that FÁS does not focus enough on placing unemployed people in jobs.
The report was written when the recession was beginning so it is not up to date. Nevertheless, it states that even when there was high employment here there were more staff working on the unemployment benefit function than on the job placement function. It stated that job matching and placement were not to the forefront of FÁS functions. In the area I represent many people who have lost their jobs are left to their own devices to seek jobs. There is no local FÁS office. One has to go looking for it in Ballyfermot.
The people who live in Lucan and commuter towns have never before lost their jobs. They have had jobs since finishing their education. They are not as familiar with what is available as those who have been unemployed before. There are more local services in areas where there has been unemployment before. We need to consider the needs of communities where this is a new and big phenomenon.
Acting Chairman (Deputy Joe Costello): Does Deputy Tuffy intend to share time with Deputy Burton?
Deputy Joanna Tuffy: I was not sure. How much time do I have left if that is the case?
[41]Acting Chairman: The Deputy has just over ten minutes.
Deputy Joanna Tuffy: I will finish up. My main point is that the energies of FÁS need to refocus on job placement and matching people with jobs. That should not happen at the expense of training which is good. It suggests instead of greatly increasing the number of community employment schemes, we should consider dole to work schemes such as are used in Australia. I am open to any suggestion because it is important that people get opportunities to work.
When we discuss this, it is important not to concentrate on controversies and scandals. We need to consider what is positive in FÁS and how we can improve it. This is the time to do that because FÁS needs to get on and do the work that is needed to get more people working and restore high employment levels. We need to examine whether the functions of FÁS are fit for our current needs.
Deputy Joan Burton: I want to discuss corporate governance in State bodies and what we know about its successes and failures. There was an attempt from the early 1950s to create structures with the involvement of employers, trade unions and workers that would lead to the further development and education of workers. FÁS as we know it, for good or bad, developed in an extraordinary way during the period of the Celtic tiger when a great deal of money was available to the organisation but there was little unemployment and it farmed out a lot of the training of apprentices. Essentially it was an organisation that had a social partnership structure but that had in many respects lost its way. When one adds the statements of the former Taoiseach, Deputy Bertie Ahern, that he appointed people to boards because they were his friends, the stage was set for undermining public faith in the quality of the participants on the boards of practically every State body and organisation. That must be considered and is one of the principal dangers in this Bill.
I support the reduction in numbers of members of the board but I am not sure that it goes far enough. I do not know that FÁS needs 11 board members. If FÁS continues its involvement in education, training, back to work schemes and skills development, the people appointed to the board must have appropriate expertise. We do not want ideological warriors of the left or the right on the board. We want people who can do the job and who, most of all, are willing to ask questions and to persist with those questions until they get an appropriate answer. The Minister has made a grave error in holding to herself alone the power to appoint the members of the board.
No matter what merit these people have, whether they have any political party connection or none, the Minister will be seen to continue this principle of Fianna-Fáil dominated appointments with, at the moment, a nod to the odd Green. This is fatally undermining not just of the politics of Fianna Fáil which will become hateful to people, of which I am sure the Minister is aware, but of all politics. The Opposition parties afforded her an opportunity to set up for the first time a monitoring structure which would question the panel of appointees about their qualification for and approach to the job which is fundamental to democratic reforms and appointing a good, competent board.
A person with whom I used to work wrote to me recently. He was a long-serving member of a number of State boards under different Governments and in his time had affiliations to many different political parties. He described his association on a board during Mr. Haughey’s time when he asked some questions that were not to the taste of the management of the State body. These were deemed to be either inappropriate or annoying in some way, or, perhaps for pig-iron, the management simply did not wish to answer the questions of this board member who became, therefore, an annoyance. If there is a person on a board who becomes isolated [42]as a result of asking questions which are not answered reasonably, he or she then becomes what the Green Party calls the “squeaky wheel”, that annoying person who pops up at board meetings to ask the awkward question. Very quickly that person becomes isolated and the others on the board join ranks with the management of the enterprise to put him or her in a box. All of us who work in politics are very familiar with this.
Let us remember that what we want from a board is corporate governance. We had a recent example in the Houses that I deeply regret. The much esteemed and admirable Mr. Tom O’Higgins, an accountant with a national and international reputation, who was the chairman of the Dáil audit committee, clearly had a point of view and a communications issue with regard to the governance of Deputies and the expenses regime which was governed by the Houses of the Oireachtas Commission. A person who is put on a board has a legitimate right to ask questions. Clearly, in the case of Mr. O’Higgins, he became frustrated to the point of resignation. If that is happening within the purview of State institutions, boards or bodies, the State must sit up and take notice and try to change the structure of corporate governance.
Reading about the members of the FÁS board, I can say honestly that I suspect many members of the board were genuinely shocked and horrified by the material that has emerged. I have seen statements to this effect. One must take a step back and ask why there were not detailed board discussions to examine in a real way the nuts and bolts of what FÁS did. One then must ask, and it is a legitimate question, why it was, given the various audit personnel involved whether internal or from the Comptroller and Auditor General, that some of this material or these facts did not emerge. Why did they have to come as a result of whistleblowing? We have not had an answer to that. Are there mechanisms in the Comptroller and Auditor General’s office that need to be overhauled and reviewed? At present, we know there are 22 internal audit inquiries, of which I understand ten to 12 have been completed. Whatever the Minister does, it is really important that those inquiries are completed in full, using an effective mechanism, which I understand to be under way through the internal audit sub-committee board of FÁS. The Minister should give a very clear commitment to that.
Ultimately, this is about people being appointed to State boards in this country. If one tapped the average person on the street on the shoulder and told him or her to become a member of this or that board, he or she would have to have training and receive some upskilling. Even if one was a brain surgeon, a chartered accountant or an eminent banker, if one went into an organisation like FÁS, which is complex, has a very large budget and does a great variety of different things, one would have to get some training, refreshment or briefing to become a competent member of the board. There would have to be discussion on what one’s role as a board member was to be. One would have to approach it in a tough frame of mind, because one would be there to represent citizens and taxpayers and make the organisation achieve its duties to citizens, unemployed people and apprentices, and do so in a reasonably cost-effective manner from the point of view of the taxpayer. To be honest, after that everything else is frills.
What we are not getting from some of the people who served on boards in this country is public communication that the boards are operating to the required standard. We must be mindful also that the reputational damage to Ireland in this area, in banking and in a number of other areas is such that people are losing confidence in our institutions. I believe one of the reasons for this is the extraordinary regime of the former Taoiseach, Deputy Bertie Ahern. Nothing would kill FÁS stone dead sooner than the culture of crony appointments to a crony board. That would become what a FÁS or public board represented in people’s minds. We need a lot of thought as to how governance should be restored.
The Dublin Docklands Development Authority is another example. It was a fantastic idea to regenerate the docklands area but, again, this was another board on which, apparently, there [43]were high levels of cronyism during the height of the Celtic tiger era. At that time some very bad property investment decisions were taken by that board and by the bank with which it had a particularly close association through directors and other mechanisms.
These examples of failures of public governance are very important to every political party. Those who are in government and have been there for too long, and those on the Opposition side who hope to be in government——
Deputy Bernard J. Durkan: They have been hoping for too long.
Deputy Joan Burton: We expect to be in government. However, we must find a way of fixing a model that is broken. In reducing the numbers on the board, the Minister is on the right track. It might be asked whether even 11 people are needed on the board. I do not know too much about the internal affairs of FÁS and will not comment on them. What the Minister must not do is continue the notion of crony appointments and “Fianna Fáil only need apply” with the odd Green thrown in. That would be a disaster.
Given all that she has been through, the Tánaiste may have a tendency to find people who reflect her views and with whom she feels comfortable. In a way, I feel sorry for Deputy Mary Coughlan. Deputies Micheál Martin and Mary Harney presided as Ministers over FÁS, both for very considerable periods. Some of the worst things happened on their watch, not on the present Minister’s watch. However, because she was in the chair when the aeroplane crash-landed, in many ways she is taking the political responsibility. She has an opportunity to redeem her reputation by thinking about the appointment structure, not making it personal to herself and taking a risk. She could ask the appropriate Dáil committee to be involved in the vetting procedure. For Deputies and Senators on that committee there is also a risk. If they, collectively, were to rush to embrace people with whom they were comfortable and happy, “their” men or women, that would also be a mistake. People who raise questions about the fundamental core activities of FÁS are correct. I do not know whether, like Anglo Irish Bank, the brand is so damaged that a relaunch of FÁS is necessary. Saying this gives me no pleasure because, like every Deputy, I know people who work in FÁS, how committed they are to that work and how hard they work. Over the years, I have met a number of different FÁS directors from the industry and labour sides. When I worked in the Dublin Institute of Technology, the people I met, particularly those involved in apprentice education, always seemed to be dedicated. They came from all political parties and none and were interested in the betterment and education of apprentices in a fine way.
However, all of this is irrelevant. What is relevant is the public’s perception of the organisation and how we can change it. Issues such as the €600,000 wantonly spent on advertising that was never run shock people who are struggling to make ends meet, including small businesses and apprentices approaching the end of their training. For this reason, all politicians, including the Tánaiste and those who serve on the committee dealing with FÁS, must try to devise an appointments system that allows us to restore credibility in the governance and competence of State boards.
Many people would be qualified to do the job, but there is a difference between being qualified and being able to walk through the door in the morning and sit on the FÁS board. Were I or the Minister of State asked to sit on the board tomorrow, both of us would have the necessary technical qualifications, but it would be foolish in the extreme. We would need to be thoroughly briefed and prepared and given information and advice on our roles.
It is a pity that organisations like the Institute of Public Administration, IPA, which utilises a fair amount of State resources, do not seem to be acting in public, although they may be doing it privately. In many ways, we have a State sector that has become terrified of acknowl[44]edging where things have gone wrong and of explaining how those wrongs will be addressed and moved past. This may be because Fianna Fáil has been in government for 12 years and many public servants have been culturally colonised by it, in that they cannot imagine a different type of organisation. I have attended many FÁS ceremonies for awarding diplomas, degrees and certificates for, as an example, women returning to education, work and training. I represent Dublin West, but the culture at those occasions is of a Fianna Fáil gig to which I have been invited. They are charming, lovely people, some of whom pop up at different times canvassing for one famous politician in particular.
Deputy Bernard J. Durkan: Is that not nice? It is really moving.
Deputy Joan Burton: This is the general experience.
Deputy Bernard J. Durkan: I agree.
Deputy Joan Burton: They are none the less present for——
Deputy Dara Calleary: It is not. Deputy Burton cannot just throw that out there without any backup.
Deputy Joan Burton: Perhaps the Minister of State would just consider the matter. If we want a quality public service, we should either do as the Scandinavian countries did more than 100 years ago — allow public servants to declare their political affiliation — or maintain our old tradition of a non-political public service. We have the worst of both worlds. The upper echelons of the public service are, in theory, non-political. In practice, some people are close to the ruling party. It does not make any difference that they might not have party cards. This is a problem for Fianna Fáil and the Opposition. I do not have an immediate solution, but it is one of the greatest problems facing politicians and their credibility.
When there is a change of Administration in the United States of America, there is a change in the upper echelons. The US has a system in which public servants can declare a political commitment. We have a non-political public service. This tradition has been valuable, particularly after independence, but when the same party has been governing and closely controlling for a long period, one must ask whether our public service still serves the same function that it did during the change from British rule to independent Irish rule.
This matter has not been debated recently and, consequently, the boards overseeing areas of controversy or those with much discretion have been heavily dominated by political appointees. I was stunned to hear recently that Mr. Sean FitzPatrick was an appointee to the board of Aer Lingus and that he had free flights for the five years following his standing down from that position. Mr. FitzPatrick or, as the former Taoiseach used to call him, Seanie——
Deputy Bernard J. Durkan: How friendly.
Deputy Joan Burton: ——was perceived to have particular affiliations, but the problem is that they have done grave damage to the service of the public interest and the majority of employees in State and other public bodies who are themselves not politically partisan, except that they vote or do not vote in general elections in proportion with the rest of the population. The Tánaiste must take responsibility for the incredible damage done by the FÁS debacle to the morale of public servants.
Last week in the Sunday Independent, Mr. Nick Webb, the journalist who was the first to present the FÁS story in a major way and for which work he deservedly won a journalist of [45]the year award, and Senator Ross published a story about Iarnród Éireann, CIE and contracts that had gone wrong. Reading that important piece of journalism depressed me because here we were going again. I do not know who the directors of Iarnród Éireann and CIE are, although I know who the managing director and chairman of the board are. As far as I know, the Government has not responded.
The critical issue for the Government in its remaining life, be it four months or longer, is whether it will try to repair some of the damage. In reforming the FÁS board, the Tánaiste seeks to restore her reputation and to do the unpolitical, unFianna Fáil thing of trying to open the new board’s appointments procedure to have competent people with backgrounds in the labour, apprenticeship and business sides evaluated regardless of their political affiliations and to subject them to some level of appropriate questioning by the relevant Dáil committee.
Acting Chairman: The Deputy has exceeded her time.
Deputy Joan Burton: If she can do this, she will have salvaged some of her reputation.
Deputy Bernard J. Durkan: Deputy Burton’s comments about the malaise overtaking business were interesting and accurate. This is not a personal accusation against the Minister of State. The channel of accountability has been to the same people for far too long. Nobody had been accountable to this House and this is an appalling situation. This morning with the concession of the Ceann Comhairle I raised an issue which occurs regularly. Along with every other Member of this House I have tabled countless parliamentary questions about subsidiary bodies to various Ministers over the years. Fifteen or 20 years ago answers were given readily and there was no difficulty. However, it then became the practice with the passage of time to restrict the amount of information and slowly but surely and inexorably, we now have a situation in which the Minister has no responsibility to the House. There are one or two notable and honourable exceptions among Ministers but if the House is not deferred to and the information is not given to the Opposition, then there is no accountability. There can be all the paraphernalia of investigations afterwards and wall-to-wall meetings of the Committee of Public Accounts, 24 hours a day, seven days a week, 365 days a year but this means nothing because it is retrospective. Like other Members I have served on the Committee of Public Accounts for some considerable time. A retrospective examination of a situation does not do anything to alert the public to what has been going on.
This Bill will not change the situation. It proposes a reduction in the size of the board of FÁS from 17 members to 11. I do not see a problem with that proposal. It also proposes the introduction of a rolling system of appointments to the board so that the same people are not sitting on the board for a lengthy time. The only danger in that proposal is that there needs to be some recognition of the appearance of a new regime when new people are appointed. Such people may be unfamiliar with the practices of sitting on a board but they may also have questions to raise which should have been raised before. The Bill proposes the removal of the automatic right of the trade union movement to nominate individuals to the board. I think trade unions should have the right to nominate and to be represented as they represent a group with an interest in the activities of FÁS.
The Bill proposes that the director general of FÁS should be accountable to the Oireachtas. In my view this proposal is utter rubbish and nonsense. The same situation applies with regard to the HSE where the chief executive is theoretically accountable to the Oireachtas. It means nothing and the Acting Chairman knows this as well as I do. Unless the person who has ultimate responsibility for an organisation is accountable to this House in plenary session, then we are not doing our job. Unless and until a Minister accepts responsibility for every body, subsidiary and otherwise within the ambit of his or her Department, we are wasting our time [46]and this performance will be repeated time and again. This is being done solely to give Ministers a cosy and cushy time in case they might be associated with any whiff of what might be regarded as undesirable publicity. The further one stays away from these things, the better for all concerned. It is not in the interests of any Minister in any Government and indeed in any country, to distance themselves from expenditure in his or her Department. I find it difficult to understand the way we are going. We had no difficulty with these issues 20 years ago, everything was quite open. In those times a Minister would come to the House and apologise if something went wrong. It was open and above board and everybody knew what was going on from the beginning.
A simple question should be the means of finding out information. The Minister would be asked a simple question about the budget for his or her Department, the manner in which it is spent and the answer would be provided. There should be a penalty for failure to respond to this form of question. Members could paper the walls with the number of refusals to do so. I can give the House an example. I asked the Minister for Communications, Energy and Natural Resources about a flaw in the intruder alert systems being supplied to consumers. I asked a simple question as to whether the Minister or the regulator had made any overtures to the service providers or others who might have an interest in this flaw, with a view to identifying whether the public were being conned into believing the system was secure when it was not. The reply I received stated: “Neither I nor the regulator has any function in the matter.” This is an appalling admission from a Minister and an outrageous suggestion in a House of Parliament. This is crazy. A Minister is responsible, not only for the direct and indirect funding to the various agencies under his or her remit but also for policy and activity. Why do Ministers not take their responsibilities seriously? Why do Ministers not come into the House to reply to debates on the Adjournment of the House? They arrange for some unfortunate Minister of State to answer four issues raised on the Adjournment. There is no accountability. The only time Ministers show enthusiasm is when they are running up to the Phoenix Park to collect their seals of office in nice ornate boxes. They will walk over anyone who gets in their way. However, when we ask them a simple question as to what extent they are accountable to this House, they do not want to know about it. They will have other important business to attend to and send some Minister of State who has not learned the ropes and who has not achieved the high degree of seniority which they have to represent them. It is a case of to hell with the House of Parliament, to hell with the general public, to hell with accountability and to hell with the money and the poor unfortunate people who provided it in the first place. There is a serious issue which is not being dealt with in this legislation. This Bill is papering over the cracks. I have not dealt with the minutiae of the issue which has resulted in this Bill coming before the House nor do I wish to. If we do not get the big picture right, if the superstructure is not put in place, nothing will happen afterwards. Nothing can move in a positive fashion which will be beneficial to the country.
With regard to the so-called accountability of a chief executive to the Oireachtas, it is the Government not the Oireachtas which spends money. The Oireachtas does not provide the money. When I hear a report on radio that the Dáil passed the NAMA Bill, for instance, this is not a true report. The Government forces its legislation through the House; that is how it works. However, the general public are given the impression that the entire Dáil, the Oireachtas, all Deputies, the body politic, did it. Like hell they did. The Government did it. Once upon a time the report used to state that the Government won the vote, usually with reference to the budget. This is an accurate report of what happened and everything else is nonsense and rubbish and gives a false impression of what is taking place.
[47]The section in the Bill proposing that the director general of FÁS be accountable to the Oireachtas is the daftest thing I have ever heard and I predict in five or ten years that those who are here will be examining some matter or other and will ask why something was not done. The Minister must be responsible to the House. If the Minister were to accept his responsibility seriously, we would not have any reviews, there would be no need to go anywhere and there would be no need for tribunals. This goes right across the board in respect of all the issues that have occupied the public’s mind for the past ten years. We could have saved so much money if we had adopted that simple principle.
My last point on this issue is that for a body to be totally accountable to the Houses of the Oireachtas would be better for the public, better for the Administration and better for the Minister concerned. This is simply because such oversight would alert that Minister to what is going on in the various bodies within his or her Department or those outside of it. It is the only way to achieve the level of accountability required in today’s very busy and pressing world. I hope the Minister takes that on board and conveys to colleagues the fact that we would like some accountability in the House and we are not simply calling for this for the purposes of standing up to say it. This matter has come to our attention many times. Unless something is done about it, something far more serious than what has occurred heretofore will occur. Such events have happened already and they will occur again. Something of a serious nature will have to be done and Minister must once again become accountable to the House.
I refer to the requirement of directors and staff in FÁS to disclose conflicts of interest. That is normal, one would expect it and I agree with it. Members must register their interests at all times. Ministers must register their interests and this is something to which we are all entitled. However, Deputy Joan Burton made a very interesting comment. In many cases people are not necessarily card-carrying members of a political party. She made the point that especially when one Government is in operation for a long period, with the best will in the world, administrators may become overawed at the dominance of the great body that governs them, that is, the Government and its members. In such circumstances, members of administrations may feel obliged to respond favourably to the queries raised by their political party. I have no doubt about this and it is not a reflection on the membership, but a reflection of the fact that someone is in a position of power for too long and has become too familiar with the trappings. Such people likewise have become accustomed to deferring to their political masters.
I refer to the proposed ban of directors and staff of FÁS from any involvement in matters where they have a conflict. That is a natural progression of the previous point I made and it is a good thing. It is something that one would normally expect. However, the acid test to check this is if a Member tables a question related to the day-to-day functioning of any given body, he or she will either receive an answer accurately or not. If he or she does not receive an answer there is a problem and if there is an unwillingness on the part of a Minister to give the answer, there is also a problem. Let us not forget a Minister at any time has the right to say to the staff in the Ceann Comhairle’s office that strictly speaking the question is not in accordance with Standing Orders but he or she would like to answer the question. It is that simple and nothing else is required. One does not need Dáil reform or anything else. One does not have to go outside and lead a protest or consult with anyone. The Minister is the person with absolute authority and responsibility and can, if he or she wishes, be accountable to the House in a way that was originally intended. If that does not emerge from this process and as a result of all the other things that have taken place in recent years, we will have learned nothing.
Deputy Burton referred to falling confidence in the institutions of the State, including this House. We have seen evidence of this in recent times and it is not necessarily a good thing from anyone’s point of view. There are some who readily fuel the undermining of public confidence in the institutions they have come to recognise, and this is sad. It is not the first time it [48]has taken place and certainly not the first time it has taken place throughout Europe. We heard rumblings to this effect during the recent Lisbon treaty debate. There were some who suggested the institutions and elected representatives were no longer in touch with the people. Such people should try it themselves sometime. They might be surprised by what they would learn. There always will be people who will encourage distrust and a lack of confidence in the institutions around them. Such people have their own agenda. However, Members need to be alert to such developments, as do Governments. It is not a question of a debate or a contest between the Government and the Opposition. It is simply a contest between good governance and none and there are many examples along these lines.
Previously, I mentioned the question of committees of the House. It has been suggested that all our problems could be resolved by bringing a matter before a committee. Since this has always taken place in retrospect it has been of no benefit. The committees of the House should be used for a different purpose altogether, that is, for holding a discussion on policy before the event. By all means there should be occasional retrospection as well but if the Houses of Parliament are to work properly there must be some input from the Parliament at the formative stages. It should not take place afterwards by begging one’s pardon, tipping one’s cap, bowing or deferring to people. The members of a national parliament have an entitlement to an influence of a positive or negative nature, as they see fit, at the formative stages.
That does not, however, happen here because we have had the same people sitting in the same seats for the past 22 years with the exception of two and a half years. That does not make for good governance, accountability, clarity or outside evaluation of what takes place at any level. It is a bad thing and I believe our society and time have paid a great price for this unfortunate slow slide into a mushroom system. I need not explain to the House the merits of the mushroom system because Deputy Higgins made reference to it already this morning.
If I were asked for a view as to how effective this proposed legislation will be, it is that it will not be effective at all unless the other points I raised are addressed as a matter of urgency. If I were sitting where the Minister of State sits now and I held the same responsibility, I would very much like to be able to answer a question from the Opposition by asking the question from its perspective. I realise the occasional question is put for political purposes and that is simply a little fun. One must have a little fun to make things interesting from time to time but the most important element is that one would then be able to relax in the clear knowledge that the information provided was either successful, satisfactory or that it was not. If it was not satisfactory then the question of why it was not arises. What action, if any, was proposed to be taken to address the issues arising therefrom? Did anything happen? If nothing happened or if, say, I as a Minister of State decided to indicate that I did not believe I should answer the Member opposite in a given way because it is none of his or her business and that I am here and they are over there, then what can they do about it?
That is the matter to which I wish to refer now because we have seen in the past week the enactment both outside and behind closed doors of a review whereby the critical question at issue was if it will be now or later. Clearly the decision was made that it would be later at all costs because no one wants an election now, which I do not believe. It was stated sagely that the conclusion was that no one wanted it or, worse still, that the country could not afford an election, the greatest laugh of all time. Not only can the country afford an election but it cannot afford not to have one. Until such time as that takes place and a clear mandate is given by the people, it is no good for anybody to complain that all politicians are to blame, the system is wrong and somebody should have done something. Some people may say “If I had my way” or “What we need is a benign dictator to solve the country’s problems”. Others might say we need an astute businessman who knows about these things. It is all rubbish and nonsense, [49]however, and we have heard it all before. For those ensconced in the trappings of power there is a great reluctance to relinquish any of those trappings or to change anything by word or deed that would in any way undermine the positions they have achieved one way or another in recent years.
I know I am running short of time, but I trust that the Acting Chairman will tell me the precise amount left. How much time remains?
Acting Chairman: It has expired.
Deputy Bernard J. Durkan: Unfortunately life is like that. I thank you, Sir, for bringing that to my attention. I apologise for over-running my time. In conclusion, I ask the Minister of State, for God’s sake, to listen to what I have said. I am an auld lad here now and have been in the House a few years. I can assure the Minister of State that I believe every word I said about accountability. If it is not achieved now, it will never happen.
Deputy Róisín Shortall: I wish to make a number of points about this legislation, but principally I want to speak about what FÁS has become and the need for a decent training agency. I will spell out the kind of things that now need to happen in relation to FÁS. The numbers on the live register are approaching 500,000 and there is an urgent need for a properly functioning employment and training agency. It should be one that meets the needs of those who require training, upholds high standards, has a clear focus and is involved in providing support services throughout the regions. It should also ensure that people are sufficiently skilled and trained to avail of employment opportunities. Those requirements must be always uppermost in our minds when it comes to dealing with this legislation and in discussing the role of FÁS.
The difficulty, however, is that in its current shape FÁS is not fit for purpose. It is dogged by scandal, corruption, low standards and ineptitude, as well as a lack of corporate governance and accountability. All those elements make FÁS a dysfunctional organisation. There is no question but that, over the years, FÁS has been a sinecure of Fianna Fáil and there has been gross political interference in that organisation from top to bottom. That has been the dead hand on FÁS since it was established in 1987. People on the Government side of the House have a huge amount to answer for, given the state in which FÁS is now.
If we are frank in terms of how we should go about tackling these problems and putting in place the kind of root and branch reform required, there needs to be an acceptance of the nature of the problems that beset FÁS. In addition, there must be a recognition of the fact that the Minister with line responsibility for that agency is part and parcel of the problem. That is the reality. The Tánaiste and Minister for Enterprise, Trade and Employment, Deputy Mary Coughlan, is part and parcel of the problem at FÁS. She follows a number of Ministers who have failed to live up to their responsibilities, including Deputies Micheál Martin and Mary Harney. Those Ministers failed to ensure a healthy relationship between the Department and FÁS, including proper standards and accountability, or that it was fit for purpose. The current Minister has carried on that. It fell to her to deal with the problems as they exploded over the past 18 months, but she utterly failed to do so. That is not only in respect of this legislation but also in respect of how she failed to respond to the challenges that arose for her, as line Minister, over the past 18 months. While recognising the need to move and discuss what is required of a training agency in future, we must also learn lessons about what has happened in the past.
The issues now emerging in FÁS first came to the fore in May 2008 when the Comptroller and Auditor General issued his special report No. 10. That report identified huge lapses in corporate governance and breaches of the normal procurement rules that should apply in a State organisation or any company. Unfortunately, the Tánaiste failed to respond to those issues. FÁS was a major agency with an annual budget of more than €1 billion, which was [50]under her direct responsibility, yet she failed to take action on the major issues highlighted in last year’s report. Instead, she sat on her hands and hoped that somebody else would deal with them. In fact, she looked to the Comptroller and Auditor General to do a further report. She sat waiting and hoped the Committee of Public Accounts might do something or that we might have another report. In the meantime, however, there was a urgent need for a proper training agency, yet she allowed that situation to drift. She allowed many of the unacceptable practices to continue in FÁS, thus permitting that organisation to be dragged further into the mire. In the process, she failed to take any responsibility for what was going on there and failed to take action to rectify it.
Media attention was focused on the first-class foreign travel and lavish expenses of FÁS executives, which were highlighted at the Committee of Public Accounts and in the Sunday Independent. It was only when the then director general of FÁS, Mr. Rody Molloy, had a disastrous radio interview with Pat Kenny that people realised the game was up and that Mr. Molloy had to be moved fast. There was a determination to silence him and, clearly, the objective was to get him off the pitch, close down the FÁS story and hope there would be no collateral damage to the organisation’s political masters. That was the strategy, but in spite of what Ministers and Fianna Fáil backbenchers might think, one cannot take the law into one’s own hands. Ministers are not above the law. There are laws, regulations and guidelines——
Deputy Dara Calleary: That is a ridiculous allegation to make about any Member of this House.
Deputy Róisín Shortall: ——covering a situation where the issue of expenditure of public money arises. I contend that those regulations and guidelines were utterly ignored in the rush to gag Mr. Molloy. I am not alone in saying that because many others have made that claim.
I now wish to talk about the actual process that took place behind the scenes when it was decided that something had to be done about Mr. Molloy. We know he made demands. They were very high demands, given that this man had presided over an organisation about which there were serious questions of accountability. In spite of that, however, he was always a very spirited man and to the very end he demanded entitlements and payments. He sought two years’ salary as a “thank you” for walking away from an organisation on which he had inflicted serious damage.
Officials from the Department of Enterprise, Trade and Employment sat down with officials from the Department of Finance and decided what they were going to do about the situation, including the severance package. Perhaps the Taoiseach is denying it now, but everybody knew at that time that what they were doing was governed by a number of Acts and regulations, including the Principal Act establishing FÁS in 1997, under which the Minister for Enterprise, Trade and Employment, with the consent of the Minister for Finance, has discretion in setting superannuation. The Ministers are also governed by the Pensions Acts and, in particular, the guidelines issued by the Department of Finance in 1987 setting down explicitly in a three-page document the terms under which a severance package deal can be done with a departing chief executive officer of a public sector agency. We have finally received that document from the Government.
When this issue hit the headlines recently, the Taoiseach said the guidelines were adhered to and everything was above board. As soon as we read the guidelines, it was evident that the deal was certainly not above board and the guidelines had been breached. They run to ten paragraphs. Paragraph 3 refers to additional years and the top-up available if a contract is terminated and states:
This is important because the initiative in this case came from the chief executive officer concerned. We know this principally because the Taoiseach stated this in the House. He sang Mr. Molloy’s praises saying he knew him well, he had given good service and he had left of his own volition. Every reference made by the Taoiseach, the Minister for Finance and the Tánaiste subsequently was to this being a voluntary retirement and Mr. Molloy leaving of his own volition.
At the meeting between the two relevant Departments, officials decided sanction for this package was required from the Department of Finance. Officials from the Department of Enterprise, Trade and Employment wrote to the Department of Finance asking whether the letter they had drafted was appropriate for requesting the sanction. The draft letter was sent to three different officials in the Department of Finance for their opinion. There is a great deal of covering up going on and a great deal of smoke and mirrors on the part of Ministers and it is important that the officials at the centre of this are vindicated in the context of the advice they gave. In correspondence between the three officials, each of them drew attention to the fact that on the basis of media reports, they knew Mr. Molloy had resigned of his own volition and, therefore, the guidelines did not apply. The recommendation was that sanction should be refused because the guidelines did not apply. They also pointed out an exceptional case could be made only on foot of a Government decision because paragraph 9 of the Department of Finance guidelines explicitly precludes an exceptional case being made. The advice from three officials with expertise and experience in this area in the Department of Finance was that Government approval was required to sanction the €1.2 million package for Mr. Molloy.
The correspondence available in the public domain ends there and we need to know what happened after that. Was a request made for Government approval of the package? The indications are that there was no request because the Minister for the Environment, Heritage and Local Government denied any knowledge of it. One has to make the assumption that Government approval was not requested or granted. If that was the advice from three senior officials in the Department of Finance, why was such approval not sought? What was the motivation in not seeking approval and adhering to the law? The only conclusion I can draw for the failure to seek Government approval, which is in contravention of the guidelines, is that it was to keep this grubby deal secret from the Green Party members of Cabinet. The Green Party Ministers may have been caught napping on a number of occasions but alarm bells would have rung if a proposal had come before the Cabinet to do a sweetheart deal with an old friend of Fianna Fáil’s who was leaving under a serious cloud.
We still live in a democracy and that means Ministers who are required to adhere to the law should come into the House to answer these charges. The three most senior members of Government did not adhere to the guidelines, as required, in reaching agreement on a severance package for a chief executive officer of a State agency. I regret that the Minister is not present but there is a requirement for the Ministers involved to clarify the position and they need to come to the House to make a statement on this. Last week during the debate on the Labour Party motion on FÁS in Private Members’ time, I raised all the legal and technical questions that need to be answered. We were not given answers to those questions. If time permitted, I could quote all the advice given by the senior Department of Finance officials, all [52]of whom pointed in the same direction. A Government decision was required. It was not sought, ergo, this deal is not in compliance with the guidelines.
I refer to another aspect of the meeting between the officials of the two Departments. A letter was sent to the Department of Finance by a senior official in the Department of Enterprise, Trade and Employment, which outlined the terms of the package it was proposed to give to Mr. Molloy, including a full pension and a full lump, with four and a half years added on to each, and six months’ salary. The Taoiseach has been wriggling and ducking and diving on this issue over the past few weeks. He said the package was broadly in line with what Mr. Molloy would have been entitled to if he had been sacked. He was not sacked and that is the critical issue. Department of Finance officials pointed out that the proposal to give Mr. Molloy six months’ salary was in breach of the guidelines even if he had been sacked and his contract terminated because the guidelines only provide for a maximum of three months’ salary. Even if his contract had been terminated, Government approval would still have been required to sanction the payment of six months’ salary. The Government is, therefore, in breach of the guidelines on two counts.
The letter, dated November 2008, from the Department of Enterprise, Trade and Employment outlining the terms of the proposed package states, “Please note also that the board of FÁS has given the Director General ownership of the car which he has been using as Director General”. I cannot understand that sentence. How did this arise? The board did not meet after Mr. Molloy was interviewed on “Today with Pat Kenny” until the middle of December. The former chairman of the board, Mr. Peter McLoone, stated the package, including the car, was presented to the board as a fait accompli. The deal had been agreed and it was just a matter of the board rubber-stamping it. It had been done and dusted and the board, as a matter of course, was giving its approval to it. Where did that come from? This car was the property of FÁS. Nobody else other than the board had a right to make a decision about what should happen to that car. How is it that a senior official in the Department of Enterprise, Trade and Employment should put in writing to the Department of Finance: “Please note also that the Board of FÁS has given the Director General ownership of the car . . .” There are serious questions to be answered in that regard. I hope the Minister of State or the senior Minister, the Tánaiste, would clarify that point as well. Three questions of serious accountability arise in respect of the most senior people in Cabinet and their role in regard to this debacle and those questions demand early answers from those three Ministers.
The legislation falls a long way short of what the Committee of Public Accounts sought. The Committee of Public Accounts recommended that it ended the practice of alternating the chair between the social partners and nomination by the social partners of members of the board. What we wanted was a slimmed down, more focused and effective board but we did not want it to be packed with Fianna Fáil cumann members. That is precisely the power the Minister is now proposing to take on herself. The problem with FÁS is that it has been a sinecure of Fianna Fáil. It has been packed with Fianna Fáil supporters and in many ways the culture was created that one must dig with the right foot to get anywhere in FÁS. The proposals in this legislation will make FÁS less accountable, not more accountable. It is a step backwards.
Deputy Seymour Crawford: I welcome the opportunity to speak on this important legislation. It is sad that it had to be introduced and is once again a sign of failure. It reminds me of the culture in our current structure. We had the banks, the builders and all the cronies living in the one tent, so to speak. The banks’ representatives came into the Committee of Public Accounts and gave a full briefing to the effect that they were sound and that their position was beyond question. That view was backed up by the regulator, the Central Bank and others, yet [53]we all know what happened a few months later. We have not been given the full facts, and even the Committee of Public Accounts was unable to get that information out of them. They sat in the Committee of Public Accounts and told it what they wanted the people to believe.
We are now trying to deal with the FÁS situation but, sadly, that organisation, which has a right to be proud in many ways, is now on the front pages of our newspapers being shown in the worst possible light. We read that pass grades were given to failed FÁS students. It is a disgrace that a national organisation should allow that to happen. That story only came to light because people were willing to impose the necessary pressure, both in this House and outside it, to get that information and ensure that everybody is on an equal footing. I will come back to that matter later.
In her contribution yesterday the Minister stated that FÁS is a key agency, and we all agree with that when we have up to 450,000 people unemployed. I accept the Minister stated the number was somewhat less but, unfortunately, a number of factories have closed since then and major difficulties have arisen in my own Border region as far as the retail trade and so on is concerned. We must face the fact that we will be dealing with a population of some 450,000 who have no job and who are not likely to have a job in the near future unless we do something about it. FÁS is an important part of the fight against unemployment and ensuring that workers do not become distant from the labour market, as the Minister said.
The Minister also said that the Bill is part of her response to ensure that FÁS is fit for purpose and operates to the highest standards of corporate governance. One must ask how this situation came about. Would this Bill be before the House today if it had not been for senior personnel in my party and others bringing this issue to light and making sure that the wrongs were dealt with?
That is the reason I raised the issue of banks at the outset. It is wrong to have a structure in place where the only place we can deal with a problem is in the Committee of Public Accounts and not on the floor of this House. I have made that argument in terms of the National Roads Authority but especially the Health Service Executive and other organisations. We cannot allow this House to be side-lined, where there cannot be accountability on the floor of this Dáil, where the Minister who hands over the money of hard pressed taxpayers to an organisation such as FÁS is not answerable in this House. That is something we should not allow to continue indefinitely.
The Minister went on to say that wrongdoing can take place in large organisations in both the public and private sector. That is a simple fact in the current situation.
The Bill allows the Minister to dismiss board members. Those board members have already been chosen by her. As the previous speaker said, we have gone from a situation where in the past the board members were nominated by the relevant organisations working with FÁS to a situation where they will now be nominated by the Minister. They must have the relevant experience and competence, but is the only relevance that they are a cumann member or something like that?
The Bill states that the Minister can sack a board member who is not adequately performing but it does not state how she can deal with FÁS executives who are the people dealing with taxpayers’ money. When we already have a record of the scandal in FÁS it is important that [54]the Minister re-examine that situation and that we ensure that the Bill gives the Minister, whoever that is, the power to deal with a problem as it arises, be it to do with board members or senior executives.
I do not want anyone to get the idea that I or my colleagues in Fine Gael do not realise the great work done by FÁS. It has been a tremendous organisation. It has worked with community groups, the unemployed and older people to try to get them back into work and so on. All the people at local level who have done such good work must not be tainted or damaged by the serious incident involving the head of FÁS and the wrongful passing of people in their exams. The local schemes have not only helped people back to work and given people something to live for but they have also done tremendous work in the local community. I can only think of the graveyards and cemeteries they have cleaned and villages which they have reinvigorated. They have certainly done much great work with the sick and elderly and in other areas. We should recognise that.
The apprenticeship scheme has also been invaluable and in this downturn the organisation has done its best to ensure those apprentices in the system were given an opportunity to finish their schemes. I know there were some difficulties but a great effort was made by FÁS nonetheless. Many elderly people are now using computers because of FÁS training schemes and this must also be recognised.
I got a phone call earlier from somebody who was very worried about the information released here. I was told in no uncertain terms that this is not an isolated incident of certificates being given out or training being done in such a way. There must be proper supervision by independent people of how some of these training structures are maintained. I urge the Minister to ensure the issue is considered sympathetically so that in this extremely serious point in the State’s history, the people who get training and are awarded certificates are entitled to them only after proper training from qualified people. God knows there are enough qualified teachers out there to do this who cannot get jobs, and such people of the highest standard could be used to facilitate perfect training.
I will comment on the accountability of the Minister. The former Minister in this area, Deputy Harney, her husband and six others flew to Florida in the Government jet, spent money and had tickets reserved in case the Government jet was unavailable. It was only when the ruckus arose that the €35,000 paid out for unused tickets was reclaimed. It is not hard to understand how people who saw this going on at the highest level in our State thought that if the Minister could do it, why could they not do so. I listened to the Minister, Deputy Harney, speak on health issues and how strict she has been with services. To learn through the freedom of information system how she dealt with matters in her own way makes one absolutely sick.
That was followed by the ending of Mr. Molloy’s work in FÁS. At this stage we are not sure if he was pushed or went voluntarily. We are told the €1.1 billion and other money was a result of his voluntary departure. If that had happened in a commercial business such as those I have dealt with through the years, somebody who mishandled his position like he had would have gone out on his ear with nothing only his last week’s wages, and he would have been very lucky to get them.
We must look at how the public sector deals with personnel and how they are being paid. Why is Professor Drumm getting a €70,000 bonus and for what is it being awarded? Is it for the great work of closing Monaghan General Hospital? I do not want to speak on that issue or I will get sick again. This is not a case of people receiving unfair benefits — we saw in the banking sector that a man got off with €1 million when he left his post that was meant to be repaid but has never been given back.
[55]Decisions have been made at the highest level and my colleagues, including my party leader, have tried to get the full information on how they were decided but different stories come out each week. The benefits included €1.1 million, a car and more for a person who mismanaged one of the greatest organisations in this country.
The Minister and Tánaiste has a chance at this point to bring a Bill through this House — we are only on Second Stage — and amend it or accept amendments from the Opposition or anybody else. She must ensure the Bill will hold the pertinent people responsible and that the Minister of the day will be able to deal with questions across this floor and make an organisation of this size answerable to this House and the taxpayers who pay the bills.
The release of information relating to the luxury travel of FÁS executives came from board minutes. That is what led to the severance package. If there had not been any pressure, the issue may never have come about. We must ensure we have structures in place to hold FÁS personnel and the board responsible and can deal with a matter if the need arises.
The Minister indicated that wrongdoing can take place in large organisations in both the public and private sectors even where proper internal financial control structures are put in place. It is against this background that she also considers it important to include provisions in the Bill that would protect bona fide whistleblowers from reporting wrongdoing at any level. The person I spoke with earlier today is scared stiff that I would say anything that could link that person to some of the issues I would like to put on the record of this House. That person is afraid it might affect her opportunities to get work in future or in doing business. The whistleblowing issue is vital and there should be cover for whistleblowers so they will not finish as victims rather than the good guys who let us know that wrong reports have been given, money has been misspent or anything else.
I wish the Bill well for the rest of its journey through the House and I hope the Minister will listen to what has been said on Second Stage. I hope she will also table the amendments necessary to ensure it works better. I further hope she will ensure that when the new board is appointed, FÁS will be restored to its former glories and will again enjoy the level of respect in which it was previously held.
Minister of State at the Department of Enterprise, Trade and Employment (Deputy Dara Calleary): I want to begin by congratulating the Ceann Comhairle on his election and wishing him every success and happiness.
I thank all Members who contributed to the debate on the Bill. I thank them for their suggestions, which we will consider prior to Committee Stage, and in respect of FÁS itself, which we will review during the coming weeks. As the Tánaiste stated, this is an important Bill. Its main objectives are to improve the effectiveness and governance of the board of FÁS and strengthen the accountability of the director general of that organisation to the Oireachtas. The Bill also addresses the recommendations contained in the Committee of Public Accounts’ Fourth Interim Report on Special Report 10 of the Comptroller and Auditor General and FÁS 2007 Accounts and the work of the Comptroller and Auditor General.
In light of the remarks made by Deputy Shortall, it is important to state that the Bill is one of many actions taken by the Tánaiste, since assuming office in May 2008, to implement a fundamental cultural change in accountability and transparency in FÁS in order that it might, from now on, concentrate on addressing the key challenge of unemployment through its job search and various training and employment programmes. As Members are aware, the Bill specifically provides for a change in the structure and composition of the board of FÁS; making the director general of FÁS clearly accountable to the Oireachtas; requiring the disclosure of [56]conflicts of interests by directors and staff of FÁS; banning directors and staff of FÁS from any involvement on matters in respect of which they have a conflict of interest; and protection for whistleblower members of staff who report serious wrongdoing in the organisation. I will deal with Deputy Crawford’s remarks on that matter in a moment.
The board of FÁS has undergone major scrutiny in recent months and there have been many calls for changes to its composition. Following its meeting of 1 October 2009, the Tánaiste welcomed the fact that following the resignation of the chairman of FÁS, the remaining members of the board indicated their intention to stand down upon the appointment of a new board after the passing of this Bill. This will meet the Tánaiste’s stated goal of achieving an orderly transition to a new board structure for FÁS. Most importantly, it will also ensure that the work of the board’s audit committee — which is concluding a further set of internal audit reports on controls and procedures within the organisation — can be completed in the coming weeks.
The restructuring of the board of FÁS was one of the principal recommendations made by the Committee of Public Accounts in its Fourth Interim Report on Special Report 10 of the Comptroller and Auditor General and FÁS 2007 Accounts. The Bill proposes to reduce the size of the board from 17 members to 11, including the chair, which will make it less unwieldy. In addition, there will be changes to the composition of the board, the members of which will now be appointed on the basis of relevant experience and competencies in areas such as the functions of FÁS, finance, corporate governance and public administration. These are the correct competencies for the members of the next FÁS board. References to Fianna Fáil cronies, etc. — most of which were made by Labour Party Members — are completely unnecessary and irrelevant to this debate. In making appointments to boards, the Tánaiste has shown preference for people who possess the skills that are required. However, I will follow up on Deputy Burton’s point in respect of training for board members.
The Bill also provides for a system of rotating appointments in respect of board members. Experience has shown that this type of system has the advantage of preserving corporate knowledge while also bringing fresh ideas and fresh faces to the boardroom. The Tánaiste will appoint the members of the Board in consultation with the Minsters for Education and Science and Social and Family Affairs. It is also proposed to include the director general of FÁS as an ex officio member of the board. This will enhance communication between the executive and the board, something that was lacking in recent times.
Another recommendation made by the Committee of Public Accounts in its fourth interim report that is addressed in the Bill relates to the accountability of the director general of FÁS to the Oireachtas. In order to resolve this matter, provisions are included in sections 4 and 5 which set out clearly the accountability of the director general to the Committee of Public Accounts and other committees of the Oireachtas. It is through the committee system that the issue of accountability is best pursued. The various sectoral interests of members of the committees ensure that they are best placed to ensure this happens.
The Committee of Public Accounts also requested that the legislation should address the issues surrounding the fiduciary duties of a director of FÁS and his or her responsibility to report matters to the Minister for Enterprise, Trade and Employment. This concern is addressed in section 8, which provides, in certain circumstances, for the removal of the prohibition on the disclosure of information obtained by a member of the board in the course of his or her duties. This amendment will remove any doubt with regard to there being a legal barrier to a member of the board reporting issues of concern to the Minister.
[57]Since the publication of the Comptroller and Auditor General’s Special Report 10 in May 2008, the Tánaiste has worked tirelessly with the Chairman, two directors general and the board of FÁS to ensure that the mistakes of the past will not be repeated. I also wish to acknowledge the work done by the Chairman, members and staff of the Committee of Public Accounts and the Comptroller and Auditor General in this regard. In response to these actions, the financial control and governance structures across the organisation of FÁS have been improved. However, to strengthen transparency in this area, section 6 includes provisions that will prohibit staff and board members from engaging in procurement matters where a conflict of interest exists. These provisions also provide for appropriate penalties where these rules are broken, including dismissal for members of staff and removal from the board for board members.
As the Tánaiste indicated, misconduct can take place in any organisation — public or private, voluntary or professional — even where proper internal financial control structures are put in place. The protection for whistleblowers introduced in the Bill is a welcome strengthening of the position in this regard. Deputy Crawford or any other Member who harbours concerns regarding the operation of FÁS can discuss them with me confidentially and I will ensure that they are addressed without the need for compromising anyone’s wish to remain anonymous. If there are specific issues which need to be addressed, they should be brought to my attention or that of the Tánaiste. I guarantee Members that I will treat any information put forward in total confidence and in a completely secure manner.
The matter of training services in the north-east region, to which Deputy O’Dowd and many others referred, has been examined by the Department. I am in a position to provide some information in respect of it now and further information will be given later in reply to a matter raised on the Adjournment.
FÁS local management had concerns about aspects of the assessment process carried out by a firm which it had contracted to provide training. Based on those concerns, it asked FÁS’s internal audit division to report on the matter in May 2008. It should be noted that in the specific case to which Deputy O’ Dowd referred, which occurred in 2006 and 2007, it was the monitoring procedures in FÁS which enabled a member of staff to identify the non-compliance issues. FÁS then reported the matter to the contracted training provider and to the appropriate certifying bodies. In 2008 it ensured that a comprehensive audit was set in train. The latter was completed in February 2009. In order to maintain the integrity of the training provided, FÁS reassessed the trainees and the certifying bodies, which are independent of FÁS, were satisfied to issue the appropriate certification in each case. The Department is asking FÁS to report to it on the action it is taking in respect of the findings of the February 2009 internal audit report in order to ensure there can be no recurrence of events of this nature. I reiterate that if there are Members of the Oireachtas, either Deputies or Senators, who possess information regarding matters about which they are concerned, they should bring it to my attention or that of the Tánaiste.
The overall mission of FÁS has never been more important, particularly in view of that fact that there are 423,600 people on the live register. I reiterate that during this difficult period, the Government is committed to continuing to provide these individuals with the assistance necessary to ensure that they can return to work. The Department of Enterprise, Trade and Employment is investing €1 billion in the provision of a range of labour force measures that will provide training and work experience opportunities to assist those who have lost their jobs.
FÁS employment services, together with local employment services, have put in place measures to double the capacity to cater for the rise in referrals from the Department of Social [58]and Family Affairs. The implementation of these measures has increased the annual referral capacity to 147,000 persons in 2009. These measures and many others represent a significant step in meeting the huge challenge of supporting the unemployed.
The FÁS response, through those specific measures, demonstrates it is a key agency in the Government’s plan to fight unemployment. It has delivered and continues to deliver services, supports and programmes to individuals across the country to ensure they remain in, or have the qualifications to return to, a changing labour market.
I again acknowledge and endorse the fact, as have many Members who participated in this debate, that the problems FÁS has experienced in one area do not in any way reflect on the hard work that continues to be done by the majority of workers in FÁS nationwide, who are committed to helping those who avail of the job search, training and employment opportunities the agency has to offer. I wish to acknowledge their hard work and commitment, which is needed now more than ever in these difficult circumstances.
Minister of State at the Department of Enterprise, Trade and Employment (Deputy Dara Calleary): I move:
Minister for Defence (Deputy Willie O’Dea): I move: “That Second Stage be taken now.”
Minister for Defence (Deputy Willie O’Dea): I move: “That the Bill be now read a Second Time.”
As this is my first opportunity to do so since the Ceann Comhairle’s election, I wish him the best, as well as a long sojourn in that Chair, to which he is well suited. I am pleased to bring this Bill before the House and thank Members for agreeing to take it at short notice. However, before going into detail on the Bill, I wish to take this opportunity to extend my sincere condolences to the family, friends, Air Corps and Defence Forces colleagues of the two pilots who tragically lost their lives while on a training mission earlier this week. I was shocked and [59]saddened to learn of the untimely deaths of Captain Derek Furniss, an experienced instructor, and Cadet David Jevens who died when their two-seater light aircraft crashed on a remote mountain valley in Connemara. Our sympathies and prayers are with their families, friends and colleagues. Both men will be a major loss to the Air Corps and the Defence Forces.
This is a short Bill, which gives effect to the provisions of the national declaration on the Lisbon treaty relating to Ireland’s participation in certain activities of the European Defence Agency, EDA. It also puts in place approval procedures for any participation by Ireland in Permanent Structured Cooperation. The Bill introduces the requirement for prior approval of the Government and Dáil Éireann for participation by Ireland in certain projects run by the EDA and in Permanent Structured Cooperation.
In accordance with the terms of the national declaration, the Bill also provides that any participation must be for the purposes of enhancing capabilities for UN-mandated missions for peace-keeping, conflict prevention and strengthening international security, in accordance with the principles of the United Nations Charter. The Bill also introduces a triple-lock type mechanism in respect of any decisions regarding Ireland’s participation in these initiatives. This is similar to the triple lock we have for the deployment of Defence Forces personnel on peacekeeping operations overseas. As is the case regarding all defence issues within the European Union, any decision by Ireland to participate in the projects of the EDA or in Permanent Structured Cooperation remains fully and completely within Ireland’s control. Moreover, participation in either will not affect Ireland’s traditional policy of military neutrality. The Bill provides that participation in EDA projects and in Permanent Structured Cooperation can take place only where the Government is satisfied that such participation will enhance capabilities for United Nations-mandated missions. Under the Bill, any decision by the Government also must be endorsed by Dáil Éireann.
Before outlining the Bill’s provisions, as a useful background context, I will outline briefly the European Union’s role and that of the EDA in the development of capabilities and provide Members with an overview of Permanent Structured Cooperation. The European Union is developing a range of capabilities and capability standards to support its deployment of military capabilities in support of the Petersberg Tasks. As Members are aware, the Petersberg Tasks are an integral part of the European Union’s European security and defence policy, ESDP. They cover humanitarian and rescue tasks, peacekeeping tasks and tasks of combat forces in crisis management, including peacemaking. The European Defence Agency was established under a Joint Action of the Council of Ministers on 12 July 2004, during the Irish Presidency, “to support the Member States and the Council in their effort to improve European defence capabilities in the field of crisis management and to sustain the European Security and Defence Policy as it stands now and develops in the future”. The EDA affords EU member states the opportunity of keeping track of best practice in modern technology in the development of capabilities. This process is designed to address and overcome shortfalls in capabilities. Such shortfalls could impede the efforts of EU member states to achieve the capacity to undertake appropriate crisis management missions.
Ireland has participated in the framework of the agency since its establishment. It is important to note that participation in the framework of the EDA imposes no specific obligations or commitments by Ireland other than a contribution to the budget. This is used to fund the agency’s day-to-day operating expenses. Participation in the EDA means that Ireland has access to research and information on developing and maintaining professional capabilities. This is research we cannot self-generate. Ireland’s objectives in participating in the agency are to achieve economies of scale in defence procurement and to keep abreast of best practice and [60]new developments in the defence environment, particularly as it affects multinational crisis management operations. It is vitally important to the protection of our troops when they are deployed on UN-mandated peacekeeping operations that the Defence Forces have access to the latest developments in these fields. My primary concern as Minister for Defence is to be able to provide the best protection possible for our troops.
Since 2007, Ireland has participated in the joint investment programme on force protection run by the European Defence Agency. This project is an important enabler in the development of technologies to protect troops from threats such as snipers, booby traps and improvised explosive devices, IEDs. Body armour, sensors and systems to counter explosive devices are key elements of the programme. As part of the EDA’s annual work programme we also are involved in ongoing work on, among other things, defence against chemical, biological, radiological and nuclear explosives threats, improved communications systems for use on the ground in operations, health and medical support for EU military operations and the development of improved counter-IED measures, which is a capability that enables military forces to operate safely in an environment where such devices are present.
As for Permanent Structured Cooperation, this simply allows for a group of member states to come together, under the EU umbrella, to make available to the Union higher-end capabilities for the more demanding EU operations. It is not clear at this stage how Permanent Structured Cooperation might work, as no such arrangements currently exist. However, it could be the case that a number of member states may come together to provide the Union with, for example, large aircraft or helicopter transport capabilities. In addition, Permanent Structured Cooperation could facilitate the sharing or pooling of assets like helicopters. This would eliminate duplication and allow these capabilities to be made available more economically for ESDP operations. For Ireland, the important thing is that any participation in Permanent Structured Cooperation arrangements will be entirely voluntary and the legal guarantee puts this beyond any doubt. As I have already stated, it is not clear how Permanent Structured Cooperation might work in practice. However, this is an issue that will be discussed in greater detail at appropriate level in the EU, where Ireland can ensure that its values and principles are fully represented.
Member states recognise that they have an obligation to ensure their troops have the necessary capabilities when serving on ESDP crisis management operations. As such, member states’ participation in Permanent Structured Cooperation arrangements and EDA projects is a mechanism for ensuring that these capabilities are available. Member states working together within the EU can do this more effectively. The Bill recognises that Ireland already participates in the framework of the agency and notes the purposes for which it was established. Ireland’s participation in the framework of the agency is not subject to the provisions of the Bill.
The main provisions of the Bill are contained in sections 2 and 3. Section 2 deals with Ireland’s participation in projects or programmes established under Articles 20 and 21 of the joint action establishing the agency. Section 3 deals with Ireland’s participation in permanent structured cooperation, Article 42 of the Treaty of European Union as amended. Section 1 is a standard provision on the terms mentioned in the Bill. It sets out definitions for the Council joint action establishing the European Defence Agency, EDA, the Treaty on European Union, the Treaty of Lisbon and United Nations mandated missions that, as outlined in the guarantees, are authorised by the Security Council or the General Assembly of the United Nations. Section 2(1) provides that participation by Ireland in projects and programmes established under Articles 20 and 21 of the joint action will be subject to prior approval by the Government and Dáil Éireann.
[61]Article 20 of the joint action allows for the establishment of a project or programme that shall presume general participation by the participating member states, unless a member state specifically opts out. Article 21 of the joint action allows for the participation of a group of interested member states to come together to establish, finance and develop specific projects of mutual interest that are within the remit of the agency. Section 2(2) requires that the Government should only approve participation if it is satisfied that such participation will contribute to enhancing capabilities for UN-mandated missions for peacekeeping, conflict prevention and strengthening international security, in accordance with the principles of the United Nations Charter. The text of the provision is drawn directly from the national declaration by Ireland, annexed to the Lisbon guarantees.
Section 3(1) provides that any decision enabling Ireland to participate in permanent structured cooperation shall require the prior approval of the Government and the approval of Dáil Éireann. The national declaration by Ireland on permanent structured cooperation does not contain a similar UN qualification to that pertaining to the EDA. The arrangements for permanent structured cooperation should be consistent with the arrangements for participation in EDA projects. I have therefore included the qualification that participation in permanent structured cooperation will contribute to enhancing capabilities for UN-mandated missions for peacekeeping, conflict prevention and strengthening international security, in accordance with the principles of the United Nations Charter. This qualification is set out in section 3(2) of the Bill. Section 4 sets out the Short Title.
I remind the House that the European security and defence policy is an integral part of the Common Foreign and Security Policy. This encompasses the EU’s international obligations to the maintenance of international peace and security. Military capabilities are but one element among a wide range of instruments the EU can deploy in this regard, which include economic, political, administrative, rule of law etc. Ireland’s participation in UN-mandated peacekeeping operations is undertaken within the framework of the EU’s European security and defence policy. This is a continuation of our long and honourable tradition of support for multilateral arrangements in the maintenance of international peace and security.
While military capabilities are but one element among a wide range of instruments the EU can deploy in its international obligations to the maintenance of international peace and security, it is a very important element. As Minister for Defence, I am committed to ensuring that we can contribute effectively to UN mandated operations. Also, I am committed to ensuring the Defence Forces have the best protection and the best equipment possible for participation in UN-mandated operations. In this regard, where an EDA project or a permanent structured cooperation arrangement has the potential to assist in the enhancement of capabilities for UN-mandated operations I will consider the merit of such of project or arrangement in terms of Ireland’s participation. I commend the Bill to the House.
Deputy Jimmy Deenihan: I join with previous speakers in congratulating the Ceann Comhairle on his elevation to such an important office in this House. Having worked with Deputy Kirk in different positions in the past I am confident he will be a very fair Ceann Comhairle. He will bring to this House the same sense of fairness as his predecessor and my fellow countyman Deputy O’Donoghue.
I join the Minister in offering my condolences to the families of Captain Derek Furniss and Cadet David Jevens, two young men taken in the prime of their lives. I thank the Minister for including me and Deputy O’Shea in the service at Baldonnel last night. It was a poignant service and it was important that we were there to support the families. They deeply appreciated it.
On behalf of the Fine Gael Party I welcome this Bill. It is timely in the context of the recent Lisbon treaty referendum. The issue of Ireland’s relationship with Europe in all its aspects, [62]including military aspects, was debated in the two referendums on Lisbon. One of the most welcome aspects of the second Lisbon debate was that the public, as research shows, came to have a greater understanding of the treaty, including issues such as the military relationship with the EU if the treaty was passed. Members of this House must ensure we provide the electorate with the necessary information on all aspects of the European project. This includes issues such as the EDA and permanent structured cooperation.
A lack of information breeds suspicion with some people and paranoia with a vocal minority. This House and its Members must be in the business of giving information, not just rhetoric. This debate is a chance to offer information on the EDA, to reassure the electorate that Ireland’s membership of the EDA and permanent structured co-operation is no threat to our interests, but of benefit.
The issue of defence is tied up with the issue of neutrality in Ireland. Neutrality has become a key, yet divisive, issue in Ireland. People have concerns that our neutrality is being compromised and that we may end up in NATO or introducing conscription. Neither is on the agenda and I can assure the House that neither will happen whenever Fine Gael is in government.
Ireland’s neutrality was recently described as an odd creature. Nowhere in law or in the Constitution is neutrality defined. While it was mentioned in past centuries its modern version was the product of one man, Éamon de Valera. During the War of Independence, as President of the Republic, de Valera suggested in a US newspaper article that an independent Irish Republic would offer a guarantee to Britain of its neutrality. In other words, the Republic would not participate in a war against Britain and would not allow Britain to be attacked from Ireland. He modelled it on the then relationship between the United States and Cuba.
He resurrected the idea, or as they say now he recycled the idea, during the Second World War but, like much associated with de Valera, it was ambiguous. While we did not join the Allies, and certainly had no intention of joining the Axis, we backed the Allies in numerous ways, from spying on German diplomats in Ireland to tipping off the Allies about incoming weather patterns to allow them to plan the right day to launch D-Day. The reality is that in the Second World War we were allied to the Allies, even if not an actual member.
What neutrality means in Ireland is still ambiguous. While neutrality is officially defined under the Hague Convention, in reality many states do not follow that strict definition. Ireland certainly does not. Ireland does not practice the strict neutrality of some European states, where they have developed large expensive armies for self-defence. Instead our neutrality has been passive; it is reflected by what we do not do rather than what we actually do. Neutrality has been a matter of practical reality and not legal necessity.
1. Deputy Michael Creed asked the Minister for Agriculture, Fisheries and Food the number of farmers participating in the rural environment protection scheme on the date the scheme was suspended; the number of farmers whose REP scheme plans have since expired; the number expected to expire by the end of 2009 and 2010; if his attention has been drawn to the [63]impact that this decision is having on individual farm families at a time when farm incomes and commodity prices are in free-fall; if he will review this decision and honour the programme for Government commitments of 70,000 farmers in the REP scheme; and if he will make a statement on the matter. [36516/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): On 9 July 2009, when I announced the closure of REPS to new applications, there were 55,630 farmers in the scheme. These included 12,575 who had applied for REPS 4 in 2008. In addition, the Department had received a further 16,718 applications before the 2009 closing date of 15 May, and these are currently being processed for entry into the scheme.
Since 9 July, 4,639 farmers have completed their contracts in REPS. Another 5,704 will have finished by 31 December 2009. All of these would have had an opportunity to apply for REPS by this year’s closing date of 15 May to ensure that they could continue in the scheme. By 31 December 2010, a further 9,698 will have completed their contracts in REPS.
REPS 4 was closed to new applicants in July against the background of the situation in the public finances, the resources available to the Department and the substantial increase, over the past year, in the number of REPS participants. As indicated, almost 17,000 applications were received up to the closing date of 15 May for the 2009 scheme, and further applications which were received up to the time of closure will be processed as applications for 2010. Payments due to REPS farmers for 2009 will be the highest ever and all participants already in REPS will continue to receive annual payments until their current contracts run their course. The number of farmers in REPS is more than enough to ensure that all EU co-funding negotiated in the current rural development plan will be drawn down.
I plan to introduce a new agri-environment scheme in 2010 which will reduce compliance costs to participants and which will provide a menu of targeted actions from which farmers may choose. Funding for the new scheme will include the additional modulation funds which I ensured will be retained for the benefit of Irish farmers in the negotiations on what may be termed the CAP health check. It will also include additional Exchequer funding. In August 2009, I invited submissions on the proposed new scheme. The details of the scheme are in the process of being finalised. It will require the approval of the European Commission, which has already received an outline of our proposals.
I am acutely aware of the current difficult situation with regard to farm incomes and of the intense pressure on many farm families. Yesterday, I announced the commencement of advance payments of 70% of single farm payments amounting to in excess of €800 million which will begin in the coming days. This is the first time that an advance of this magnitude has been paid at this early stage of the year; the official opening date for release of single farm payments is 1 December in each year. Furthermore, the payment of €220 million under the disadvantaged area scheme commenced last month. The combination of these two schemes together with payments under REPS and the suckler cow scheme amounts to payments of more than €1.8 billion to Irish farmers during 2009 and represents substantial and necessary support for farm incomes. I have also been working closely with like-minded ministerial colleagues in other member states to ensure the deployment of the full range of the EU market support instruments to support the dairy sector which has been undergoing a particularly difficult time.
Additional information not given on the floor of the House.
In addition, more than €300 million in investment support will be paid in the agri-food and fisheries sectors and almost €120 million in supports for the forestry and bio-energy sectors [64]this year. My Department also supports investment in research and development in the agri-sector, the provision of investment support for the processing sectors, the protection of Irish farms from animal and plant diseases. I remain committed to providing the highest possible level of support for farm incomes and the agri-food sector.
Deputy Michael Creed: I thank the Minister for his reply and I implore him to step back, even at this late stage, from this madness and economic folly by the Government. What the Minister will save will be spent by the Minister for Social and Family Affairs on an increased number of farm assist payments.
Rounded up, the figures given by the Minister suggest that by the end of 2010, approximately 20,000 less than the current total of 62,000 will be in REPS. This will cause phenomenal hardship to farm families. The Minister is aware that the Teagasc farm survey for 2008 and the anticipated results of a survey for 2009 will show income reductions of the magnitude of 30% to 35%. No other sector in the economy is suffering this type of income collapse. REPS puts bread and butter on the table for many farmers and it is collateral for bank loans.
I remind the Minister of a commitment in the programme for Government — although I appreciate that it is a work of fiction — to have participation rates of 70,000. However, he stated that by the end of 2010 it will be reduced to 42,000. Will the Minister step back from this folly? It is not too late to change his mind, admit he made a mistake and reopen REPS 4 for those ending their participation in REPS 2 or REPS 3 to maintain the participation levels at 62,000.
Deputy Brendan Smith: I understand it is easy to take from the figures I gave that 10,000 will exit the scheme each year. That is not correct. There will be almost 63,000 participating in the scheme this year. The number of people who may potentially exit the scheme next year will be less than 10,000. I can provide the Deputy with the figures afterwards but I want to be clear about this to the House. In excess of 1,500 applications were received subsequent to 15 May and prior to 9 July and the REPS 4 plans of these people will begin in 2010.
We will have 63,000 participants this year and next year we will have somewhat less. However, we will introduce a new agri-environment measure and the priority category for this new scheme will be those who have exited REPS 3. The level of funding available for the scheme has not yet been determined. What has been determined is that all the modulation funds and the European economic recovery programme available to the Department has been ring-fenced in its entirety for this agri-environment measure. The supplementing and Exchequer funding that will be provided for the scheme will not be determined until the Estimates budgetary process for 2010 is complete. This year, we have almost 63,000 participants in REPS, last year it was 46,000 and 17,000 new applicants entered the scheme prior to the 15 May deadline. This is by far the highest ever level of new applicants.
Deputy Michael Creed: Does the Minister accept that a knock-on effect of his decision will be to force more farmers onto farm assist? On the basis that REPS is 45% co-financed by Europe this is a false economy as the State pays 100% of farm assist payments.
Did the Minister read the full McCarthy report prior to glancing at that initial recommendation of suspending access to REPS 4? It stated that a full value for money audit of the scheme should be conducted. The Minister of State, Deputy Sargent, who is sitting beside the Minister is a member of the Green Party, which is the great champion of the environment. There have been and continue to be huge benefits to the agri-environment as a result of REPS. The scheme [65]which is proposed to replace it is a Mickey Mouse scheme that will do nothing for the environment or for farm incomes. I implore the Minister even at this late stage to withdraw his revised rural development plan programme in Europe and return to full access to REPS 4.
Deputy Brendan Smith: Deputy Creed would rightly be complaining at Question Time if we did not send a revised rural development plan to Brussels by 15 July. That was to draw down modulated funds and unused funds that had become available to us for the first time. We do not leave one cent in Europe, we draw down every single cent. Our rural development plan consists more of Exchequer funding than European funding. Of course in the context of deciding what level of funding will be available for REPS from the Exchequer, analysis will be done on people’s income and on those who will exit the scheme and may have to rely on farm assist payments. We are conscious of this.
I want to be very clear on the following point. We had to make a decision to send a revised rural development plan to Brussels by 15 July. The McCarthy report had no bearing whatsoever on decisions we made on REPS. I did not see it until it was published.
Deputy Michael Creed: The Department had an input into it. It made recommendations.
Deputy Brendan Smith: That input was that we would rationalise a number of regional offices throughout the country, cut back on administration and create greater efficiencies to provide a better service for the farmers of the country. We are implementing that. It was one of the major recommendations.
Deputy Michael Creed: The best service for farmers is REPS 4.
Deputy Brendan Smith: I agree REPS 4 is a great scheme. It must be remembered it was implemented and is paid for by the Government.
Deputy Andrew Doyle: It is paid for by Europe.
An Leas-Cheann Comhairle: I have called the Minister on Question No. 2.
Deputy Brendan Smith: No, that is not the case. Over 50% of it is paid for by the Exchequer.
Deputy Michael Creed: It is 55:45.
2. Deputy Seán Sherlock asked the Minister for Agriculture, Fisheries and Food the status of the REP scheme; the date of payment for REP scheme 4 in 2009; if sufficient funding is available to meet REP scheme 3 and 4 payments in 2009; the breakdown of the number of farmers in the REP scheme; and the persons who applied for the REP scheme in 2009 by county. [36202/09]
Deputy Brendan Smith: REPS 4 was closed to new applicants in July against the background of the situation in the public finances, the resources available to the Department and the substantial increase in the past year in the number of REPS participants. Almost 17,000 applications were received up to the closing date of 15 May for 2009. Further applications which were received up to the time of closure will be processed as applications for 2010. Payments due to REPS farmers for 2009 will be the highest ever and all participants already in REPS will continue to receive annual payments until their current contracts run their course.
I plan to introduce a new agri-environment scheme in 2010 which will reduce compliance costs to participants and provide a menu of targeted actions from which farmers may choose. [66] Funding for the new scheme will include the additional modulation funds which I ensured would be retained for the benefit of Irish farmers in the negotiations on the Common Agricultural Policy health check. It will also include additional matching Exchequer funding. The scheme’s details are being finalised and will require the approval of the European Commission, which has already received an outline of our proposals.
Just under 51,000 farmers are in REPS. In addition, the Department is processing 16,718 applications received for REPS 4 in 2009 up to the closing date of 15 May. I will forward Deputy Sherlock a breakdown of these applications by county. A further 1,509 applications were received after this date and before the scheme closed to new applicants on 9 July. If they meet the scheme’s requirements, this group of applicants will start their contracts in 2010.
As a measure approved as part of the current rural development programme, REPS 4 is subject to EU regulations which require detailed administrative checks on all applications, including plan checks, to be completed before the first 2009 payments issue. My officials are working on the processing of applications with a view to facilitating the release of payments at the earliest possible date.
Deputy Seán Sherlock: If the original REPS plan was an agri-environment measure, why is it necessary to do away with the scheme and reintroduce an agri-environment measure which will have the same aims? Why did the Minister not refer to biodiversity? It will be argued the scheme was used as a supplementary income measure in some cases. The scheme’s closure will result in more applicants for farm assist, which is already happening in some areas. Considering the biodiversity measures already contained under the existing scheme and its success, it seems illogical that a new scheme needs to be introduced when the old scheme could be continued.
Deputy Brendan Smith: No one’s income from REPS has been affected by the decisions announced in July. This relates to 2010 and people exiting the scheme in 2009. The highest level of payment under the scheme will be this year.
All Members will have received representations from individual farmers about the thorough, detailed and demanding inspection process to ensure that the applicant meets the scheme’s criteria and standards. One benefit of the new scheme will be that farmers will not need to put in a whole-farm plan. Many farmers had to pay out €1,500 to put in a particular plan but this money can now be saved. The whole-farm undertaking has been a demanding process both for the farmer complying with every single criteria and the Department as the paying agency to ensure that it does not run foul of any Commission audits.
We want to introduce a good agri-environment measure to succeed REPS 3 for those who will exit it and be the priority category. People will be able to choose from a large number of measures.
Deputy Seán Sherlock: Will the new scheme — we can call it the agri-environment measure for the time being — be administered by the Department of Agriculture, Fisheries and Food? What was the average pay out to farmers under REPS?
Deputy Brendan Smith: The average pay out was €6,200. In the part of the province of Ulster which does not come under our jurisdiction, the average pay out was €1,390 per farmer. Our scheme has been beneficial and, as the Deputy rightly pointed out, it is not just an income support. There are costs to the individual farmer arising from participating in the scheme. There are also benefits for the public good as well as the individual farmer. As Deputies Creed [67]and Sherlock said, the scheme has brought good environmental benefits to the countryside. The farming community is the guardian of our countryside. Participation in REPS has offered a whole new approach to the protection, nurturing and cultivation of our environment. The new agri-environment measures that will be introduced will help that work considerably.
I appreciate the importance of REPS as an income to the farming community. It was not, however, a direct payment as substantial costs were incurred by every participant in the scheme to ensure that their farming practices were up to standard. The Department of Agriculture, Fisheries and Food will administer the new scheme.
3. Deputy Michael Creed asked the Minister for Agriculture, Fisheries and Food the initiatives he plans to introduce to deal with the income collapse of beef farmers in view of the collapse in the price of store and finished beef cattle; his plans to assist with live exports of cattle to the UK; and if he will make a statement on the matter. [36517/09]
Deputy Brendan Smith: The value of Irish beef exports in 2008 reached almost €1.7 billion and accounted for almost one fifth of total Irish agrifood exports. The beef industry remains very important in our international trade balance, but also to the rural economy as its contribution is widely dispersed.
Notwithstanding this, and in common with many other sectors of the economy, beef is experiencing difficult times. As consumers and economies have come under pressure, there has been a noticeable shift in spending patterns with a discernible move towards cheaper meats and lower value cuts. This is evident in all of our key markets and is consequently impacting on producer returns. In addition, the strengthening of the euro against sterling presents another challenge to beef exporters, given the importance of the British market.
In 2008, average prices in all beef categories increased significantly, in some cases by almost 20%, and reached record levels. Given that prices are a function of the returns available in the marketplace, the lower prices experienced during 2009, while unwelcome, are not entirely unexpected. The decline in prices to date in 2009 is around 12%. However, prices still remain significantly ahead of both medium and long-term averages for all categories. I am aware of the difficulties falling prices present to both producers and processors alike. The Department and relevant agencies are taking several appropriate steps to address these.
While conditions remain challenging in both our domestic and international markets, our beef exports have remained remarkably resilient. Shipments to both Britain and our main continental markets have held up very well with Bord Bia reporting only slight declines in the year to date. Producers and processors have responded to the changing marketplace and are maintaining their presence in the face of considerable difficulties.
The live export trade is also an important element of our meat and livestock industry and provides a complement to the beef trade. To date this year, this trade has been exceptionally strong with exports almost doubling compared to 2008. Bord Bia continues to work closely with the industry in monitoring and developing emerging opportunities for Irish livestock in the British, continental and international markets. This includes contacts with leading retailers in Britain to establish their interest in cattle born in Ireland and finished in Britain.
The Government, the Department and its support agencies, including Enterprise Ireland, Teagasc and Bord Bia, have developed a variety of non-price strategies to deal with evolving market challenges. Among these are the capital investment aid scheme for the beef and sheepmeat sectors, breed improvement programmes being progressed by the Irish Cattle Breeding [68]Federation and the animal welfare scheme for suckler herds. These schemes concentrate on using the best available scientific and genetic data to further improve the cattle herd and ultimately improve returns to the producer.
Additional information not given on the floor of the House.
The beef quality assurance scheme, administered by Bord Bia is crucial in reassuring consumers that the beef they purchase from Ireland meets the highest standards of quality, safety and traceability.
In tandem with these initiatives Bord Bia is implementing an enhanced Irish beef promotion strategy for the period 2008-13 in conjunction with key continental retail outlets. Previous efforts to differentiate and reposition Irish beef, concentrating as they have on the key characteristics of Irish beef — traditional grass-based production, full traceability and quality assurance — have proved extremely successful. It is crucial that we continue to target our marketing efforts and promotional strategies on consolidating our place in the valuable European market. Bord Bia is undertaking a 2009 autumn beef promotion campaign aimed at 40 million Europeans in ten major markets.
I am acutely aware of the importance of direct payments to farmers, particularly when market returns are at low levels. In 2008, these payments represented almost one third of total farm revenue, the most important being the single farm payment. I am pleased to remind Deputies that, following my request to the European Commission earlier in the summer, advance payment of some 70% of the single farm payment will commence tomorrow. This payment, in the region of €800 million, is unprecedented and will assist farmers greatly in dealing with cash flow difficulties. I also intend to maximise the balance of payments due before Christmas.
It is true that 2009 has been a difficult year for all sectors of farming with beef producers especially affected. A number of factors have combined to deliver a series of challenges which have had a significant impact on the livelihood of many in the sector. However, I am confident that, thanks to the undoubted quality and uniqueness of our product, together with the range of initiatives I have mentioned, the sector will be well positioned to take advantage of the evolving prospects that recovery will bring. Indeed, European Commission projections of a continued decline in beef production on the Continent over the medium term, thus widening the supply gap already in existence, may even serve to provide further opportunities for Irish producers to fill.
Deputy Michael Creed: Does the Minister support live exports?
Deputy Brendan Smith: Absolutely.
Deputy Michael Creed: The critical issue for returns to Irish beef farmers from live exports is that the live cattle exported to the United Kingdom can be slaughtered there. Over the years this State, through its various agencies, has delivered substantial grant aid to Irish meat processors and is delivering in the region of €50 million in grant aid under the meat investment fund to the main players who are active in the Irish meat processing market and in the UK. It is also giving work permits although there are 400,000 unemployed here. I do not understand the logic of that.
The Ministers for Agriculture, Fisheries and Food and Enterprise, Trade and Employment have leverage on this issue. This House was recalled in the late 1980s to bail out the Goodman group when it threatened to go under but it and others, Kepak, and Dawn, are active in the [69]UK and collude to prevent the slaughter of Irish exported live cattle in their plants in England. They are also putting pressure on other small abattoirs to refuse to slaughter cattle. That costs Irish beef producers in the region of €150 a head. Will the Ministers continue to sit on their hands and pay €50 million in grant aid to close down the beef industry here? Beef farmers will not continue to dip into their single farm payment to subsidise beef production. The consequences of that will be job losses in processing and in the food industry downstream. If the Minister supports live exports what will he do about the problem of slaughtering live exported animals in the UK?
Deputy Brendan Smith: I fully support the export of live cattle but we need a balance between the cattle for slaughter here and the competition from live exports. The number of cattle exported to Britain up to 4 October last represents an increase of 613% over the comparable period in 2008, and the number exported to Northern Ireland represents an increase of 286% a year on.
I am aware of the difficulties and was working on this prior to any media commentary. I met the farming groups and individual farmers.
Deputy Michael Creed: Did the Minister meet the Goodman group?
Deputy Brendan Smith: No, I meet representative groups.
Deputy Michael Creed: The Minister will go on paying the grants until he gets a bit of cop on.
Deputy Brendan Smith: I met farmers and people involved in all the farming organisations who told me that there are buyers in Britain anxious to purchase Irish cattle. We have taken up the various issues raised. Bord Bia and our veterinary services have been in contact with the Chief Veterinary Officer in Britain.
Irish exporters encounter two difficulties in Britain, the veterinary issues concerning the post-import conditions imposed by the Department of the Environment, Food and Rural Development, and technical beef labelling issues surrounding the finished beef product and other beef industry complications. Over the past few weeks and earlier I met ICOS in its capacity as the umbrella body for the marts organisations and outlined what we had been doing to remove the blockages from the system. My officials have worked actively with the representative groups here and with the veterinary people in Britain.
We have involved Bord Bia on the beef labelling scheme and I have asked it to offer advice and to find out how we can overcome the labelling difficulty for cattle born in Ireland but fattened and slaughtered in the UK. They will not get a British quality assurance mark. Bord Bia has worked with the industry and has put a proposal for a beef quality assurance scheme to include cattle for export. The scheme would draw on data from the beef quality assurance and the beef suckler welfare schemes and other requirements at export level and incorporate auditing of participants including unannounced audits to verify compliance. Such a scheme could enable Irish born animals to access higher value market channels in the destination country. Bord Bia has communicated this proposal to the industry. The initial feedback from the industry and from a live exporter has been positive. The scheme would have to meet with the approval of buyers in the British market. We need access to that market without confusion about the labelling of the product.
Deputy Michael Creed: Has the Minister met with the meat plants? They are the problem. His Department and the Department of Enterprise, Trade and Employment will pay them €50 [70]million in grant aid and give them work permits. This is nothing short of national sabotage by the meat plants that operate in Ireland and the UK. We have no problem exporting live bull beef to Italy, or calves to Holland but we have a problem getting our animals into the UK where the market is worth €1.7 billion. Is the Minister going to sit on his hands and talk to everybody but those responsible, the meat plants, the Goodman group, Dawn and Kepak, in particular? Will he meet the meat plants and tell them he will not pay the money they are getting under the meat investment——
An Leas-Cheann Comhairle: The Deputy has asked that question three times.
Deputy Michael Creed: I have not got an answer yet.
Deputy Brendan Smith: We conveyed to Meat Industry Ireland, MII, the representative organisation for the producers very clearly the concerns expressed to us by the exporters and farmers.
Deputy Michael Creed: What did they say?
Deputy Brendan Smith: We have put particular queries to the Chief Veterinary Officer in Britain and await a response. We have been told about the difficulties and have said that we want to work to eliminate them. We are waiting for the Chief Veterinary Officer to reply and tell us if there is anything we need to address.
4. Deputy Tom Sheahan asked the Minister for Agriculture, Fisheries and Food if he has received advice on the potential financial repercussions which may arise for his Department following contact from the Office of the Ombudsman relating to the lost at sea scheme; and if he will make a statement on the matter. [36518/09]
Minister of State at the Department of Agriculture, Fisheries and Food (Deputy Tony Killeen): The lost at sea scheme was a limited scheme introduced in June 2001, with a closing date of 31 December 2001. Its objective was to enable qualifying applicants, who were otherwise unable to do so for financial or related reasons, to continue a family tradition of sea-fishing.
The scheme provided replacement capacity, gross tons and kilowatts, that the applicant would otherwise have had to purchase on the tonnage market, for the purpose of introducing a replacement vessel in respect of fishing boats lost at sea between 1980 and the establishment of the fishing boat register in 1990. The terms of the scheme also specified further conditions pertaining to the use of the capacity once it was deemed eligible. The conditions of the scheme as published were:
Deputy Tom Sheahan: Will the Minister of State answer my question? His time will run out and I will not have received an answer.
An Leas-Cheann Comhairle: That is a matter for the Chair. Will the Minister of State continue the answer?
Deputy Tony Killeen: They further read:
Deputy Michael Creed: We had that in a written reply.
An Leas-Cheann Comhairle: Allow the Minister of State to speak. Questions are put and Deputies are given an opportunity to listen.
Deputy Michael Creed: Tactics.
An Leas-Cheann Comhairle: There is then an opportunity for questioning, Deputy Creed. That is the way the operation of the House will continue. The Minister of State, without interruption.
Deputy Tony Killeen: ——or any other sea fishing vessel which is subject to the replacement policy regime;
The capacity of a fishing vessel lost at sea will be accepted as replacement capacity for licensing purposes only if it is to be used for the purposes of sustaining or maintaining a family tradition of sea fishing. Any capacity accepted as replacement capacity must, therefore, be used for the purposes of introducing a replacement for the lost vessel which will be owned and skippered by the applicant or by an immediate relation of the applicant. Any capacity from a lost vessel so used may not be sold or otherwise disposed of.
[72]Additional information not given on the floor of the House.
Applications under the scheme must be received by 31 December 2001.
My Department has been corresponding with the Ombudsman about a complaint made to her by an unsuccessful applicant under this scheme. This correspondence is ongoing and the Deputy will appreciate that I am not in a position to speculate on possible financial or other outcomes until the matter has been concluded.
Deputy Michael Creed: On a point of order, Deputy Sheahan raised a material question, namely, whether the Minister has taken advice in his Department. This is outrageous.
An Leas-Cheann Comhairle: The Deputy knows these are Priority Questions and the only person who can ask a further question is Deputy Sheahan who tabled the original one. Please allow him speak. I am sure the Deputy will make a point and ask a question.
Deputy Tom Sheahan: I asked the Minister if he had received advice on the potential financial repercussions which may arise for his Department following contact from the Ombudsman’s office relating to the lost at sea scheme.
Deputy Michael Creed: There was no answer.
Deputy Tom Sheahan: I received no answer. I tabled a similar question last week to which I received a written reply yesterday which was what the Minister of State has just read out. The lost at sea scheme——
An Leas-Cheann Comhairle: The Deputy should put his question directly to the Minister of State.
Deputy Tom Sheahan: I thank the Leas-Cheann Comhairle. Concerning the lost at sea scheme, may I quote the Ombudsman?
An Leas-Cheann Comhairle: I am afraid the Deputy cannot quote during Question Time but he can refer to material.
Deputy Tom Sheahan: I shall refer to it. It points out that while acknowledging that the Department, under European Council Regulation No. 2371/2002, is of the opinion that the lost at sea scheme cannot be revisited, the Ombudsman’s office considers that it did not address the central issue which is that the scheme was seriously deficient and flawed as outlined in previous correspondence to the Department. Accordingly, the office has reverted to the Department requesting that it outline how it proposes to address this issue.
The lost at sea scheme was introduced, as the Minister of State noted, to get people back fishing who had lost their boats. It was abused and in the Ombudsman’s words, was “seriously deficient and flawed”. I am led to believe the Ombudsman’s report will be brought to the House next week with a recommendation that one family which was refused entry into the scheme would have to be compensated. The point is that 62 other applicants were refused. This is what I am trying to find out and that was why I posed the question as I did, to receive an answer from the Minister of State.
Has the Minister of State looked at the financial repercussions that may be present for the taxpayer and the State? Has he discussed this with his Departmental colleague, the Minister [73]of State, Deputy Trevor Sargent, who lodged a complaint with the Standards in Public Office Commission regarding the handling by former Ministers of the scheme? Does the Minister of State, Deputy Sargent, still consider that Deputy Fahey’s handling of the scheme is worthy of complaint?
Deputy Michael Creed: The silent Minister of State, Deputy Sargent.
Deputy Trevor Sargent: It was not my question.
An Leas-Cheann Comhairle: The Minister of State, Deputy Killeen.
Deputy Tony Killeen: The Department is corresponding with the Ombudsman’s office with regard to this scheme and the matter has not been concluded. Detailed legal advice was sought from the Attorney General’s office, was considered and acted upon. It would be virtually impossible to answer the Deputy’s question in detail, for a number of reasons. There are perhaps three considerations of some importance, two of which relate to the conditions of the scheme. First, if, finally, there were to be a recommendation for payment in this case, the applicant made the application considerably outside the application period. That would relate not only to the 62 vessels which were refused but to an unknown number of others.
Deputy Tom Sheahan: Others were approved before the scheme closed.
Deputy Tony Killeen: That might come into play. That is one element of the answer to the point made by Deputy Sheahan. Second, apart from the closing date that was not met by the applicant in question, it is difficult to speculate what judgments will be made regarding other applicants who might not have met other conditions of the scheme. It is impossible to know how many there were. It is also important to bear in mind that no money was paid to anybody, nor was any tradeable asset made available to anybody under the terms of the scheme. If money were to be paid arising from this it appears it would be in accordance with the decommissioning scheme which is entirely separate and has nothing whatsoever to do with this scheme. In the circumstances, while one would have enormous sympathy for the family concerned and would obviously wish to be in a position to provide some recompense, there would have to be no doubt that the motivation in setting up the scheme was along those lines. The fact is that unless one knew what conditions might be set aside in any judgment it would be impossible to predict what the cost might be.
An Leas-Cheann Comhairle: A brief supplementary, Deputy Sheahan.
Deputy Tom Sheahan: They got no money. That is correct. However, they got 200 tonnes of quota, with a value of €10,000 per tonne between two men. That is 75% of the whole tonnage available to the 68 applicants. Two men from County Galway got 75% of it. It was because of the way it was worked——
An Leas-Cheann Comhairle: A question, please.
Deputy Tom Sheahan: I have to lead up to it. It was the way it was worked. Four months before the scheme was launched the then Minister met with the two applicants and told them to apply. The closing date for the scheme was December 2001 yet the Minister wrote to the two applicants in October 2001 and congratulated them. Thereafter, the Attorney General’s advice was that they had to receive this settlement because of the Minister’s letter. This was a [74]con job and a set-up. I ask the Minister of State, Deputy Sargent, while he is present, if he still believes this con job is worthy of a complaint to the Standards in Public Office Commission.
An Leas-Cheann Comhairle: A final reply from the Minister of State.
Deputy Tony Killeen: It is a very common error. People assume in these cases that a quota was provided rather than financial recompense. What was provided was tonnage and kilowatt hours, which is considerably different in many respects. A condition was imposed on the scheme which I understand was included at the insistence of the Minister, namely, that it could not be tradeable or otherwise disposed of to the benefit of the people who got it. There were also conditions in respect of the ownership and skippering of the vessel which ensured that only the family who had the loss could benefit from it.
In the circumstances, only six vessels of the 68 that applied were successful. In the setting up of the scheme it would have been impossible for anybody to predict what kilowatts and tonnage might have been required to be made available to vessels that were successful. If 20 vessels had been successful, or indeed one other large vessel, there would have been implications for the percentage that was awarded. At this stage it is very easy to be wise and say that particular people benefited for particular reasons. As far as I am concerned, the Department has administered the scheme fairly and in accordance with the conditions of the scheme. If those conditions are to be changed at this stage, I cannot tell the Deputy what the implications are because it is impossible to know.
Deputy Michael Creed: It is easy to be wise afterwards.
Deputy Tom Sheahan: Does the Minister of State believe a good job was done?
Deputy Michael Creed: The Ombudsman does not agree with him.
5. Deputy Andrew Doyle asked the Minister for Agriculture, Fisheries and Food if he has made a submission to the Department of Enterprise, Trade and Employment’s public consultation process in relation to the introduction of a code of practice for grocery goods undertakings; if he has made a proposal to the EU Commissioner regarding the proposed code of conduct for grocery retailers in view of the plan to publish a report on anti-competitive practices before the end of 2009; and if he will make a statement on the matter. [36519/09]
Minister of State at the Department of Agriculture, Fisheries and Food (Deputy Trevor Sargent): The Department of Enterprise, Trade and Employment consulted closely with my Department in preparing the consultation paper for the public consultation process, which was launched last August. Her Department is currently assessing some 28 submissions received from a range of interests. It is my intention to work in close consultation with the Tánaiste in developing a code on the lines of our programme for government.
The proposed introduction of a code of practice for grocery goods undertakings follows public debate on grocery prices and price differentials. The consultation in August was undertaken to address concerns raised about the nature of the relationships between grocery goods businesses and, in particular, in the relationships between suppliers and retailers of grocery goods. The questions asked of stakeholders, including consumers included whether any such code of practice should be voluntary or statutory in nature; how it might best be enforced; [75]whether a separate Ombudsman’s office should be established; whether there should be a threshold to limit its application, and what impact application of such a code might have on consumer choice and prices.
Underlying the debate is the increasing concentration of retail power in the hands of a few large supermarket chains. This is an international phenomenon, which has fundamentally changed the balance of market negotiating power in the food chain. It is one factor, although not the only one, contributing to the declining share of the retail price received by producers. Although there is, of course, always potential for some tension in any market relationship, there has been a noticeable trend recently towards greater tension, and even allegations of sharp practice.
At the Council of Ministers I raised the issue of the need for balance in the food supply chain and colleagues in the Council also expressed strong views on this matter. In January there was a discussion on a road map to improve the functioning of the food supply chain. I said then that competition alone cannot act as a sole mechanism to maintain efficient markets. The careful and sensitive use of market management measures can help to maintain balance on the market when appropriate and the use of such mechanisms can assist in the provision of fair returns to producers.
At EU level there is a need to give urgent thought to ensuring that markets function well and that unfair practices are prevented. The agri-food industry is hugely important to Ireland and the EU. The EU needs to safeguard its production base so that it can meet the future demand of its population for food, feed and bio-energy. It is my firm view that retailers must strike a reasonable balance between granting value for consumers and giving to suppliers and producers. Balance between all stakeholders, including suppliers, producers, retailers and consumers may well be difficult to achieve but the Tánaiste and I are committed to working towards mechanisms at EU level.
Deputy Andrew Doyle: I thank the Leas-Cheann Comhairle and the Minister of State. It is a fact that three multiples control approximately 70% and five control 85%. It is also a fact that the price of dairy products at the farm gate dropped an average of 34% last year, but only 3% for the consumer. Against this background, the Minister of State claims that the Government will produce something along the lines agreed in the programme for Government, which seems to suggest a voluntary code as opposed to a statutory code.
Deputy Andrew Doyle: The UK tried a voluntary code of good behaviour, but that did not work and it is revisiting the matter and will make the code statutory. Ironically, the Tánaiste published her Bill a day after we published ours, which we intend to lay before the House soon. Our fair trade food information Bill lays out in black and white what is an offence, what penalties can be imposed, retailers’ obligations in terms of credit facilities and who is obliged to oversee the area. Commissioner Fischer Boel has indicated that, before she finishes her term, she intends to produce a report on the behaviour in question. It is obvious that, if this is a problem in Europe, it is definitely a problem in Ireland and Britain where supermarket chains seem to demand higher margins.
Why not start at the right place, that is, a statutory code? No compliant retailer would have anything to worry about with our Bill or a statutory code. The chief executive of one group stated that it would add costs, but this is not the case. For example, keeping the requisite [76]records would cost no more than an audit of the business operation. The claim is a red herring. We should put the code on a statutory basis from day one.
Deputy Trevor Sargent: I appreciate the contributions of Deputy Doyle and his party to the ongoing debate. Like him, I would like to act on this matter quickly. Likewise, the Tánaiste has stated that she would put something in place within 24 hours if she could. However, the reality is that there is a process——
Deputy Michael Creed: She said there would be no problem immediately after we published our Bill.
An Leas-Cheann Comhairle: This is a priority question in the name of Deputy Doyle.
Deputy Trevor Sargent: I will try not to be drawn. To be carried through effectively and successfully, the process must take into account the fact that the Tánaiste’s Department is assessing 27 submissions. We are actively engaging with her Department, given the critical nature of what is at stake for the agrifood sector.
It is not true to say that the code has been predetermined to be voluntary. It is too early to say whether it will be voluntary or statutory. As the Deputy may have read in the review of the programme for Government, there is a clear opening whereby, if necessary, the code will be put on a mandatory basis. However, due process must be followed and everyone with an interest must be heard.
Deputy Andrew Doyle: The Joint Committee on Agriculture, Fisheries and Food has received evidence from people who are not directly involved but are interested in this area, such as the economist Mr. Jim Power, Dr. Ciaran Fitzgerald and others. They have discovered that 100,000 jobs will be in jeopardy if we do not address this issue as soon as possible. The Commissioner has identified the matter as a European problem, but must we wait for EU guidelines? Can we not see that the Irish situation is more acute? The facts are there concerning the price differentials between what the consumer pays and what the supplier is paid. It is obvious what is occurring.
Deputy Seán Sherlock: There is too much consultation.
Deputy Trevor Sargent: As this is a priority question, I must turn a deaf ear to Deputy Sherlock at the moment, but I will talk with him afterwards.
Deputy Seán Sherlock: That is fine. I am used to that.
Deputy Michael Creed: The Minister of State does not need to turn a deaf ear to find——
Deputy Trevor Sargent: I will answer the question in as straightforward a manner as I can. Commissioner Fischer Boel’s opinion and work on the roadmap in respect of the communication on food prices will be implemented by the end of 2009. While having it sooner would be great, Deputy Doyle will understand the importance of the European market for us. While we need to proceed quickly, we cannot do so in isolation from the European Commission. In the meantime, other avenues are open to us.
[77]As the Deputy stated, the supermarket chains dominate the food sector, but this issue must be addressed in its own right. A code of practice, be it mandatory or voluntary, will not change it, but it may be helped by having other access routes to market. There are many ways to address the matter that would allow us to save jobs and create new ones.
An Leas-Cheann Comhairle: I am afraid we are running over time on every question in this session.
6. Deputy Liz McManus asked the Minister for Agriculture, Fisheries and Food the measures in the Report of the Special Group on Public Service Numbers and Expenditure Programme specifically targeting cuts at Teagasc which are to be implemented. [36215/09]
Deputy Tony Killeen: The Government has not made any decisions regarding implementation of the recommendations in the Report of the Special Group on Public Service Numbers and Expenditure Programme as they concern Teagasc. The 2010 Estimates process is under way and measures to secure savings in the public finances will be considered in that context. It is not possible at this stage to comment on the specific outcomes of the budgetary process.
It is the responsibility of the Teagasc authority to exercise full and effective control over the organisation. Ministerial responsibility is confined to matters of policy in accordance with the Act establishing Teagasc and is not concerned with day-to-day operations. The Teagasc authority agreed a major change programme earlier this year to reorganise and refocus the organisation to meet the significant challenges that lie ahead. The planned programme has a medium-term implementation timeframe and provides for rationalisation measures across the organisation, including the advisory office and educational networks, disposal of land resources and prioritisation of programme activities. As part of the programme, Teagasc also plans to increase support for science-based innovation in the bio-sector and increase emphasis on transferring knowledge to farmers, the food industry and other clients.
Deputy Seán Sherlock: I asked this question, given that Teagasc’s procedures and operations have already been reviewed. I do not doubt that the recommendations will be implemented. However, the McCarthy report states that there is scope for reducing Teagasc’s staff numbers by a minimum of 250 in the short term by rationalisation of agricultural colleges and locations, reducing lower priority advisory and research activities, reducing administration and advisory services, the latter by 50%, reducing education and training functions by 30% and 20%, respectively, by 2011 and reviewing the network of offices.
If the economy is to get back on its feet, the research, administrative and support services provided by Teagasc will be necessary to ensure people operating in the rural economy have the advantage they require. I strongly suggest that the Minister of State should defend the services operated by Teagasc, particularly scientific research where McCarthy proposes that all research should be codified in one body. This will not necessarily assist in agricultural or agribusiness-related research and this should be revised and reviewed.
With regard to those people who are employed by Teagasc in the agricultural colleges, a question arises about their future if this report is implemented. I agree there is a budgetary [78]process in train but I ask that this area be defended. If it is not defended, and we see post-budget in 2009 and 2010 a further reduction or diminution in the services operated by Teagasc, it will have untold consequences for the rural economy which we will not stand over.
Deputy Tony Killeen: The remit of Teagasc is very wide, as Deputy Sherlock rightly said. Considerable emphasis is being placed on co-operation with other third level colleges and universities with regard to research, but also co-operation on development with agrifood businesses both in this country and abroad. A substantial element of the programme of Teagasc in the revised programme will be directing some of its resources to that area. Considerable resources are also dedicated to training farmers and others with an involvement in the agrifood and bio sectors and this will continue — in many instances, in co-operation with some of the third level colleges, such as the institutes of technology in particular.
Deputy Michael Creed: The revised programme for Government contains a proposal to recruit in the region of 1,000 third level graduates across various Departments. Does the Minister of State not consider it somewhat contradictory that Teagasc staff who have accumulated great expertise and who are, by and large, third level graduates may well be made redundant, but others will be recruited? I ask the Minister of State to comment on this proposal in the revised programme for Government.
Deputy Tony Killeen: As I explained, the Minister’s role is a policy one; the board of Teagasc has a particular role. The document which sets out the remit and functions of Teagasc to 2030 considers issues and areas referred to by Deputy Creed and previously by Deputy Sherlock. It charts a course for Teagasc which clearly includes an input from recently qualified graduates and others who have a contribution to make. It also sets out a strong and inherent role for Teagasc at a new level which must be attained very quickly. I am satisfied the role of Teagasc as set out by its board has the capacity to achieve this.
Deputy Seán Sherlock: I tabled a question on the public service numbers and expenditure programme. This report was sanctioned by Government and makes specific recommendations. When I ask about these specific recommendations, with all due respect to those Ministers, I get blasé, bland answers about the wonderful role of Teagasc. My questions are pertinent to what is in the report. I want to know whether those services will be defended; I do not want an answer that hides behind the budgetary process which is still a long way off. We want definitive answers. I ask those questions on behalf of those people who live in rural Ireland, who live beyond the so-called Pale, and who depend on these services.
An Leas-Cheann Comhairle: A final reply from the Minister of State.
Deputy Tony Killeen: Members will be aware the report has been presented to Government but has not in any sense been sanctioned by it at this stage. The consideration of the report can only happen in any realistic sense in the context of the consideration of the budgets for 2010, 2011 and subsequent years. There is no other way it could be done. The governance of Teagasc is, in the first instance, the responsibility of the board and a particular direction has been taken which takes account of the implications of the agrifood sector both nationally and internationally. I commend Teagasc in that regard.
7. Deputy Niall Collins asked the Minister for Agriculture, Fisheries and Food the outcome [79]of recent meetings of EU Agriculture Ministers, including the special meeting in Brussels in early October 2009, in relation to the dairy market, both in Ireland and in the EU; and if he will make a statement on the matter. [36057/09]
Deputy Brendan Smith: The dairy market has been discussed at Council of Ministers meetings every month since March this year. At these meetings, my ministerial colleagues and I have continually pressed the Commission to take all appropriate measures to deal with the situation and this has helped to stabilise the market. The measures taken this year include the restoration of export refunds for dairy products and these were increased twice in June. Intervention for butter and skimmed milk powder has continued beyond the mandatory fixed limits. In July, it was agreed to implement a special measure to extend intervention beyond August to February 2010 and to 2011, if necessary. This provision will be formally adopted at the October Council meeting which will be held in Luxembourg next Monday and Tuesday.
At the last formal Council meeting in September, the Commissioner presented the dairy market report which set out some options for the sector. At that meeting, I joined Ministers from 15 other member states in seeking major improvements in support for hard-pressed dairy farmers. We signed a statement calling for a comprehensive EU approach that would combine immediate short-term measures along with a medium-term strategy to deal with volatility in the milk sector. I attended a special Council meeting last week to look at medium to long-term measures for the dairy sector. At that meeting it was agreed to set up a high level group of member states, chaired by the Commission’s agriculture director general, to examine the type of arrangements to be put in place.
The high level group will examine medium and long-term ways of stabilising dairy farmers’ incomes and improving market transparency. In its work towards delivering a comprehensive report by June 2010, the group will examine means through which contractual arrangements in the supply chain can contribute to the highest possible returns for producers, giving them more bargaining power in the process and providing a buffer against extremes of market volatility such as those being experienced at present. It will also examine existing market instruments and consider what other means, including a dairy futures market, could contribute to the objective of price stability in the longer term.
Last week, I announced the establishment of a consultative group to advise me on the issues emerging at the high level group. In particular, the ideas, knowledge and expert opinion of the Irish dairy sector will provide key perspectives on how the sector needs to be developed and supported into the future. The consultative group will be representative of all the stakeholders and I will be asking all the main organisations to nominate representatives and these arrangements are being put in place at present.
I also welcomed the commitment given by Commissioner Fischer Boel at last week’s special Council to manage the release of stocks from intervention in a prudent manner.
Deputy Michael Creed: I am glad the Minister had the opportunity to read the last sentence of his reply because I intended asking him, in view of the delicate recovery under way in global dairy prices, what assurances he has been given that products now in intervention arising from efforts at EU level to support the industry will not be prematurely released back onto the market, thereby bringing the recovery to a halt.
In light of that recovery, has the Minister and his Department any estimate of to what level milk prices per litre will return in 2010? Dairy farmers have taken a particular hammering and [80]are anxious to budget and plan for 2010. What price on average does the Minister expect for milk in 2010?
The Minister and his Department have frittered away the dairy investment fund with no strategic objectives achieved in terms of efficiencies in the dairy processing sector. How does the Department, either directly or by means of other State agencies such as Enterprise Ireland, propose to assist in the endeavours under way to bring greater efficiencies to the dairy processing sector?
Deputy Brendan Smith: With regard to Deputy Creed’s last point, I do not accept that the dairy investment fund was not worthwhile. It was exceptionally worthwhile and in many instances——
Deputy Michael Creed: It was frittered away.
Deputy Brendan Smith: It was not frittered away.
Deputy Michael Creed: There was no strategic objective at all.
An Leas-Cheann Comhairle: Allow the Minister to reply.
Deputy Brendan Smith: Perhaps Deputy Creed and his colleagues could identify——
Deputy Michael Creed: A bit around the Border maybe.
An Leas-Cheann Comhairle: Please allow the Minister. Deputy Creed stated his question without interruption and he should allow the Minister to state his reply without interruption.
Deputy Brendan Smith: In response to Deputy Creed’s last point, I do not think that any of colleagues up in my constituency would disagree with giving grant aid to Lakeland Dairies for a very substantial and worthwhile investment at their Bailieboro plant.
Deputy Michael Creed: The Minister should have a chat with the dairy farmers up there.
An Leas-Cheann Comhairle: Please, Deputy Creed.
Deputy Brendan Smith: Lakeland Dairies is not paying the worst price, unfortunately, as there are prices below what it is paying. The investment being put into the Bailieboro plant is very worthwhile and will create greater efficiencies. Greater production and efficiencies go back to the individual primary producer. I was in north Cork, Deputy Creed’s county, with Dairygold and I saw very worthwhile investment there. Very worthwhile investments have been made throughout the country. All applications were adjudicated upon and went through a thorough analysis on the benefits they would bring in regard to efficiency and value added new product. I was in Carbery, west Cork also——
Deputy Tom Sheahan: The Deputy received a warm welcome.
Deputy Brendan Smith: Yes I did and I do not mind that. I received a very warm welcome and I saw the great work going on in that plant as well as the supply from its four constituent dairy co-operatives. That investment has been very worthwhile. Naturally, we wish to see greater collaboration and co-operation. In early September, I travelled to Finland and Denmark with the major dairy companies and we met all the major dairy companies there. [81] They outlined to us the rationalisation process they went through, the scale of production issues and the research and development undertaken, to which the Minister of State, Deputy Killeen, referred earlier. There is co-operation between Teagasc in Moore Park and many of the leading research institutes in Scandinavia as well. I am keen for the whole area of collaboration to proceed. There is plenty of scope for efficiencies to be introduced and for new product development as well.
I spoke with the EU Commissioner early in the summer regarding the release of intervention stocks. We also raised the matter at the Council of Ministers meeting. I put it that when the recovery comes there must be a prudent release of intervention stocks in the future, not when the market is recovering because we do not wish to have downward pressure on prices again. That commitment has been given and it was written into a Council decision.
Deputy Michael Creed: What will the price of milk be next year?
Deputy Brendan Smith: I do not know who in the world could answer the question of what price milk will be next year.
Deputy Seán Sherlock: The Agriculture Council will meet next week. Will that meeting give rise to a new regulation regarding a CMO, common market organisation, for milk or dairy, or will the status quo remain for political intervention in the market, given that there is a slight increase in the price and a slight recovery at present? Is the strategy within the European Union to do nothing at present? It is possible a logical strategy would be to wait to see if there will be a further recovery, or will there be further intervention? I did not quite understand the Minister’s original reply.
Deputy Brendan Smith: The intervention by the European Commission since January has involved the activation of market support measures. That is the nature of the support the European Union can give to the dairy sector. The aids to public and private storage were brought forward to 1 January and the other market support measures were activated from March onwards. Normally, they end in August but at the July Council we reached agreement with the Commissioner to continue those measures beyond August. A mechanism is in place now such that should the need arise for the continuation of those measures, they can continue until March 2011. We all hope these measures will not be needed, that there will be buoyancy in the market, that the price will return to the proper level and that those market supports would not be needed. However, the very important decision that will be taken on Monday next is that the Commission will give a formal guarantee that it will release the intervention stocks in future in a prudent manner and that it will not create downward pressure on the market and bring us back to where we were.
Last Monday, I was in Vienna and I met representatives from 19 like-minded member states. We have worked together to put pressure on the Commission to ensure the market support measures would be used to the best possible effect. Some 21 countries including France, Germany, Belgium and many others have signed a declaration that will come before the Council of Ministers next Monday. This will put to bed once and for all the quota issue and it will not be revisited. Baseless arguments have been made in recent months to the effect that the quota increase we received through the Common Agriculture Policy health check one year ago was the cause of the fall in price this year. Nothing could be further from the truth. As a country we are more than 8% under quota.
[82]Another very important step for the medium term is that enhanced measures should be put in place to deal with volatility and we must prepare for the ending of quotas in 2015 as well. That was first decided in 2003 and it was confirmed in the health check of November last year. It was also confirmed in the Heads of Government meeting last June.
8. Deputy John Deasy asked the Minister for Agriculture, Fisheries and Food his priorities in the negotiations of the Common Agricultural Policy post-2013; the recent discussions he has had with his EU counterparts on future negotiations; and if he will make a statement on the matter. [36264/09]
Deputy Brendan Smith: A first policy debate on CAP post-2013 took place at the informal Agriculture and Fisheries Council in September last year under the French EU Presidency. The Czech Presidency continued the debate in the first months of 2009, focusing in particular on the issue of direct payments to farmers. The Swedish Presidency programme provides for further discussion later this year concentrating on rural development issues. In addition to these discussions at Council, both my officials and I have engaged with other member states and the Commission bilaterally on the future of the CAP.
Notwithstanding the discussions to date, concrete proposals have yet to emerge on the shape of EU agriculture policy beyond 2013. The Commission is expected to bring forward a formal communication in mid-2010 on the future of the CAP, followed by legal proposals in mid 2011. A first round of formal negotiations will commence on the communication, leading possibly to the agreement of Council conclusions, while the more intense phase of formal negotiations will commence once the legal proposals are tabled.
My view, expressed at meetings of the Council and bilaterally to my ministerial colleagues, is that we must maintain a strong agricultural production base in the European Union in the future to take account of the challenges ahead in meeting increased demands for food. Any reduction in food production in the EU would be taken up elsewhere, where less efficient production systems exist and would result in a heavier carbon footprint. We must also undertake food production and distribution in a manner that is sustainable in all its dimensions, including economically, socially and environmentally.
There will be major challenges ahead from climate change, increased competition on world and EU markets, the international economic crisis and other factors. We must ensure we have the capacity to cope with the challenges and fully exploit the opportunities as they emerge. To do so our whole sector, from farm to fork, must be highly efficient and competitive. It must also be innovative, producing the products that changing consumer tastes demand and it must be relentlessly focused on quality and safety.
To achieve these objectives, there is a continuing need for an active and appropriately resourced European agricultural policy. That policy must recognise the role that a cohesive agriculture and rural development policy can play in addressing future energy needs, addressing environmental concerns and providing a secure and sustainable food supply in Europe.
I launched a consultation process in July last with stakeholders to obtain their views on what EU agriculture policies would serve Ireland and the EU best in the years to come. I am very pleased with the response received to date and I call on those organisations which have not already made submissions to let me have their views as soon as possible. All submissions received will be carefully examined and will help to inform our position in the very important [83]negotiations that lie ahead. I thank Members of the Oireachtas who have made individual submissions as well.
Deputy Michael Creed: The Minister’s and Department’s publication on the reform of the Common Agriculture Policy seems to favour a move from the current system of support to a flat, area-based payment system. Does the Minister intend to pursue that objective at a European level in negotiations? Does the Minister believe he undermines his own case in that regard by current and proposed further cuts in the area-based payments inflicted on farmers?
Deputy Brendan Smith: No. I point out to Deputy Creed the document we issued was consultative. It was to generate debate and to put out the parameters of the issues to be discussed. We have clearly stated that we have no set views. The point we have outlined strongly, clearly and consistently in Europe is that we must have a well-funded CAP. We will not tolerate the weakening of the European Union’s food production base. We must meet the challenges.
Food production must be doubled by 2050 and there are climate change issues and those of the protection of the environment. I have reiterated the point consistently in Europe and I fervently believe that if we were to lessen or weaken the food production base in Europe which, by definition, is a very efficient system, it would shift the demand for more food production to less efficient systems in continents far away from us. Such a shift in demand would lead to deforestation, production of food in less efficient systems and the transport of food throughout the world. The end result of this would be an increase in the carbon footprint. We sent out the document during the summer and I appreciate Deputy Creed’s response, that of other Members and that of many organisations. The purpose of the document was to initiate discussion and debate. We have not given any indication that we want to move from the single payment supported scheme to a flat base system. We have not indicated that to any extent whatsoever. In the CAP health check, a consultative committee worked closely with my Department. We will again be establishing a consultative committee representative of all interest groups to work on devising proposals well in advance of the serious discussions that will commence.
Deputy Seán Sherlock: Environmental measures, such as water management, will become more prevalent under the CAP in future. The question concerns the administrative functions. There is a suggestion afoot that we will move from pillar one to pillar two and that, instead of direct payments to farmers for management of the economy, it will be administered through various local organisations. That danger is there, so the question needs to be addressed. It may not be a real fear, but it is something that needs to be addressed. I would like to hear the Minister’s view on that in the first instance.
Second, as regards carbon reduction, at some stage there will have to be an internal debate between the Minister, Deputy Smith, and the Minister of State, Deputy Sargent, as to whether methane reduction will become an issue if the process of carbon reduction becomes part of the CAP regime. The climate change agenda is also on the cards, given the forthcoming UN conference in Copenhagen in December. How will we get to a situation where we do not compromise production or market share, while meeting future demands for food, as well as other targets? There will be an internal battle within the Government on that issue. It is something that will arise in the context of the CAP. I would like to get an opinion from the Minister on these questions.
Deputy Brendan Smith: All the points raised by Deputy Sherlock are very important. I do not favour additional funding going to pillar two. Pillar one has been extremely beneficial not just for farmers, but also for protecting the environment and ensuring that Europe has security [84]of food supplies for its citizens. That was the second article of the Treaty of Rome in 1957 and it is as appropriate today as it was for the founding fathers of the EEC. All these issues are being discussed at the Cabinet sub-committee on climate change. The Deputy rightly mentioned the leading research and advisory role of Teagasc, which has done phenomenal research work for my Department. It works closely with the Department’s inspectorate on what is achievable. Together with New Zealand’s farmers, Ireland’s agricultural sector is regarded as having one of the most efficient food production systems in the world. Therefore we cannot reduce methane gas emissions that much. A lot of research has gone into the dietary requirements of animals, including grass breeding as well as animal breeding. There has been phenomenal progress in that regard.
Deputy Andrew Doyle: Going back to Deputy Sherlock’s first point, can we take that as a commitment and not a negotiable point — that the CAP will be based on pillar one on the basis that food production needs to double by 2020?
Deputy Brendan Smith: Yes, but it is by 2050.
Deputy Andrew Doyle: Otherwise the CAP will be about issuing food coupons to consumers. That is what will happen. Is the commitment non-negotiable?
Deputy Brendan Smith: I cannot give a commitment for the other 26 member states of the European Union.
Deputy Andrew Doyle: The Minister can do so for Ireland, however.
Deputy Brendan Smith: Absolutely. My commitment is to pillar one. I have outlined that very clearly at every opportunity we have had to discuss the future of the Common Agricultural Policy post-2013.
Written Answers follow Adjournment Debate.
An Leas-Cheann Comhairle: I wish to advise the House of the following matters in respect of which notice has been given under Standing Order 21 and the name of the Member in each case: (1) Deputy James Reilly — the need for remedial safety works to be undertaken at Ward Cross, County Dublin; (2) Deputy Michael D. Higgins — the ongoing industrial dispute at Coca Cola; (3) Deputy Joe Costello — the provision of a permanent school building for Gael Scoil Bharra, Cabra, Dublin 7; (4) Deputy Lucinda Creighton — the safe and secure custody of prisoners at Mountjoy Prison, Dublin; (5) Deputy Mary Upton — the maintaining of facilities and services at Our Lady’s Hospital for Sick Children in Crumlin, Dublin; (6) Deputy Alan Shatter — the implementation of the recommendations contained in the HSE Report on Services for People with Cystic Fibrosis; (7) Deputy John O’Mahony — the loss of jobs in the motor trade particularly in view of the closure of a car dealership in County Mayo; (8) Deputy Aengus Ó Snodaigh — the provision of funding to Creativity in the Classroom; and (9) Deputy Fergus O’Dowd — the recent internal report into the verification of results of FÁS test carried out by outside consultants.
The matters raised by Deputies John O’Mahony, Fergus O’Dowd, James Reilly and Joe Costello have been selected for discussion.
Deputy John O’Mahony: I thank the Ceann Comhairle for having selected this issue.
The difficulties in the motor trade have been signalled over the past 12 to 18 months in particular. The solution to them, however, has nothing to do with providing extra finance. If anything, money would come into the Exchequer if this issue was dealt with in a constructive and organised way.
My constituency of Mayo woke up last Tuesday morning to the loss of 70 jobs in Casey’s car dealerships in Ballina and Castlebar. Castlebar accounted for over 45 jobs, while Ballina had over 15. Casey’s was not a company that grew out of the Celtic tiger over the last ten years, but had operated in Mayo for the past 40 years. It has provided hundreds of jobs and sold thousands of cars to the people of Mayo.
I have been discussing the matter with the workforce this week. Over 10% of them have 30 to 40 years’ service with the company. One worker told me that on Tuesday, for the first time in 50 years, he had no work to go to. That says something about the quality of the company and its staff.
The annoying thing about these job losses is that something could have been done to prevent them, but Government inaction led us to this stage. The Government has contributed to the thousands of jobs lost in the motor industry over the last 12 months. Over 60,000 jobs are involved in the motor trade nationwide. Before the recession, in July 2007, the Government introduced an emissions-based tax on cars, which opened the floodgates for imported cars. The Government then increased the VAT rate from 15% to 21%, which further widened the gap. The result, in Mayo alone, cost the Exchequer millions of euro in lost vehicle registration tax or VRT.
In January 2007, some €12 million was paid in VRT by car dealerships in Mayo. At the beginning of this year, however, that sum had fallen to €1 million. For the country as a whole, the sum in 2007 was €2 billion, but it is projected to be €500 million this year. A report by Dr. Peter Bacon recommended that the Government should reduce VRT by 25% in the forthcoming budget. Those are the salient facts and figures.
My assertion is that 15% of a smaller VAT amount is better than 21% of no sales. In 2007, 150,000 cars were sold in Ireland, but this year fewer than 60,000 will be sold. Of the 150,000 cars sold in 2007, 80% were bought with finance released from banks and other financial institutions. Last year, only 10% of the 60,000 sales were based on sales from banks. In other words, buyers had to have the money up front. What is needed now is a package of measures to help protect the thousands of jobs in the motor industry in Ireland. Eleven major dealerships have already gone to the wall in the west this year. Other countries have introduced scrappage schemes that have proved successful, so that could be one element of a solution. The VAT rate needs to be looked at also and finance needs to be released. If the Government continues to sit on its hands on this issue, some other company will suffer the fate of Casey’s in Mayo next week. We need urgent action now.
Minister of State at the Department of Education and Science (Deputy Seán Haughey): I thank the Deputy for raising this matter. The Government is aware of the issues facing the motor industry, which are not just restricted to Ireland. The industry has suffered a serious [86]downturn worldwide, which has resulted in catastrophic impacts on some of the world’s largest automobile manufacturers and huge job losses in regions where the industry was a major source of employment in the past.
I was disappointed to learn of the job losses at the company. I am conscious of the effect that the job losses will have on the employees of Casey Garages in Castlebar and Ballina as well as the knock-on effect for their families and their communities. This is a distressing time for those who will lose what, up to the recent the past, had been very secure and rewarding employment. I assure the people concerned that the relevant State agencies will provide every support they can. The priority will be to find alternative employment or re-training for those involved at the earliest opportunity.
The role of FÁS, the State training agency, will be particularly important in assisting those who are to lose their jobs. All FÁS interventions and supports are aimed at assisting people to enhance their skills and enable them to secure employment in these difficult times. In this instance, the agency has been in contact with Casey Motors in Castlebar and Ballina. Seven apprentices are registered with this dealership with five based in Castlebar and two in Ballina. FÁS Services to Business has contacted the apprentices concerned and they have been advised of their position in the context of the continuation of their apprenticeships. Their on-the-job workplace assessment training records are being updated and every effort will be made by FÁS to progress their apprenticeships in the future. Assistance will also be offered by the agency to other employees of the company.
The Department of Enterprise, Trade and Employment has no specific role in the motor industry. Responsibility for the primary issues of concern to the industry at large fall within the remit of the Departments of Finance and the Environment, Heritage and Local Government, as the Deputy noted. The Minister for Finance confirmed on 14 September 2009 the replacement of the current special scheme governing the VAT treatment of second-hand cars with the new margin scheme on 1 January 2010. This was initially announced in the supplementary budget of April 2009. Under the margin scheme, dealers will account for VAT on their profit margin, that is, on the difference between the cost of acquiring a car and its selling price.
The introduction of the scheme, and changing over from the current special scheme, will bring Ireland into line with the other 25 EU member states that apply the scheme, which was introduced under the EU VAT Directive in 1994. The margin scheme, which will apply from 1 January 2010, is simple and straightforward in that a dealer accounts for VAT on his or her profit margin. If there is no margin, then no VAT liability arises; if there is a positive margin, VAT is charged based on that profit margin. The scheme will also apply in respect of second-hand agricultural machinery. Appropriate transitional arrangements will be introduced to take account of the fact that the move to the scheme will mean dealers will no longer be able to reclaim or deduct the amount of VAT that under the special scheme is taken to be included in the price of the second-hand car at the time of its acquisition by the dealer.
A number of other provisions designed to boost car sales have been introduced by the Department of Finance. These include the measure introduced in the Finance (No. 2) Act 2008 providing partial VAT deductibility — 20% — in respect of the purchase or leasing of business cars in the CO2 emission bands A, B and C registered for VRT purposes on or after 1 January 2009, should assist new car sales. In addition, under the engine size-based VRT system, the average VRT rate paid was 25% of the open market selling price, whereas under the CO2 emissions-related VRT system the average VRT rate paid is 20% to date. Under the new emissions-related VRT system, the average VRT rate being paid has fallen. The Finance (No. [87]2) Act 2008 provides for the pre-examination of vehicles, including used car imports, as a condition of registration with effect from 1 January 2010 and it also provides for the temporary registration, without the payment of VRT, of vehicles brought into the State for a period greater than 42 days.
There has been speculation about the introduction of a scrappage scheme. Taxation issues are considered in the context of the budget, which will be announced on 9 December. As evidenced by the publication of the renewed programme for Government this week, the issue of jobs is at the top of the Government’s agenda. The Government has two objectives for the next two years: to protect existing jobs in the economy of today and to build our capability for the economy of tomorrow. We will support viable but vulnerable businesses and employment in the difficult trading environment and international crisis. We will also assist those who lose their jobs during the downturn. I am confident the strategies being pursued by the Government will bring renewed growth and prosperity to the motor industry and all business sectors in Ireland.
Deputy Fergus O’Dowd: This is a difficult position for the taxpayer to be in because FÁS and its agents run many courses throughout the country and the credibility of the courses run by one company has been drawn into serious question. I work from a redacted document released under the Freedom of Information Act 1997. The most important information I need is the name of the company but I do not have that. However, the company involved provided seven courses at a cost of more than €1 million comprising company fees and trainees’ allowances. Four of the courses were corrupted because the material results were changed; they were fabricated. The credibility of the awarding of the results goes to the heart of the lack of integrity in FÁS and the rottenness in the system from top to bottom.
The fee paid to the company for the four corrupted courses was in excess of €200,000. The fees paid to the FÁS trainees amount to more than €256,000 and, therefore, the cost of these corrupted courses is almost €500,000. Taxpayers’ money was wasted on unfortunate trainees who were conned into thinking they were doing a course. They were not provided with proper materials and did not receive proper results. No audit of the company was conducted, notwithstanding that it had pleaded guilty to FÁS to previously corrupting a course by changing the results. The company said the individual involved had been sacked but it secured a contract for more courses and corrupted the results of those as well.
At the heart of this is an incredible, appalling, disgraceful shame in the running of FÁS. What did the Minister know about this and similar courses? What steps has she taken to recover the money from the company? What other courses was the company retained to provide elsewhere in the country? This case refers only to the north east. Perhaps this happened elsewhere. The integrity of the certification of City & Guilds courses, which are important nationally and internationally, and FETAC courses must be restored. Every FÁS course must be audited from now on. Has the Department conducted other internal audits to establish whether this is an issue throughout the State?
FÁS has a budget in excess of €1 billion per annum. How much more of taxpayers’ money has been wasted? What action has the Minister taken? What briefings has she been given about this issue? More than 440,000 people are unemployed, many of whom will participate in FÁS courses and receive certification. Independent audits need to carried out on the content of these courses, the results awarded and the computers. In the case to which I refer, the computers the trainees were using were clapped out. They had no printers or disks. The trainees were subject [88]to the biggest con in FÁS and probably one of the biggest cons in history resulting in the waste of taxpayers’ money.
Fundamental and total reform of FÁS is at the heart of this. Independent accreditation of all examinations is required in order that most of the 440,000 unemployed people who take up the agency’s courses can be certain they will get what it says on the tin and they will participate in the course they were supposed to with access to appropriate materials and computers that work. They should not get results that are designed to suit the company and not the taxpayer. Approximately €0.5 million of taxpayers’ money has been wasted on a course the results of which were fabricated and with the knowledge that this company was already doing it. FÁS knew it was doing this and yet it gave this company other courses. That is the crime at the heart of this issue.
Deputy Seán Haughey: I thank the Deputy for raising this matter. Even though FÁS will either provide itself or contract with private firms for the training of over 100,000 learners in 2009, it is the Tánaiste’s view and, I am sure, the view of all Members of the House that it is crucial we can have full confidence that each one of those learners has received appropriately certified training. We must ensure, therefore, that our system of training and its certification is robust and secure.
We must also ensure that we spend scarce public resources appropriately to ensure we get maximum value for every euro we spend on training, whether it is directly provided by FÁS or contracted out to private firms.
Deputy Fergus O’Dowd: They have more courses.
Deputy Seán Haughey: I would like to point out that in the specific events in 2006 and 2007 described in the internal audit report——
Deputy Fergus O’Dowd: This is a joke. They still have contracts.
Acting Chairman (Deputy Michael Kennedy): Deputy, please allow the Minister to continue.
Deputy Seán Haughey: I ask the Deputy to let me conclude my remarks and we can consider the matter further.
I would like to point out that in the specific events in 2006 and 2007 described in the internal audit report to which the Deputy has referred, it was FÁS itself that discovered there were issues regarding inappropriate certification of training provided in the north east by this private firm. FÁS ensured that a comprehensive audit was undertaken into these activities and this was completed in February 2009. This audit concluded that, in regard to four contracts in the north east and Dublin North, assessment material had been manipulated and that the certification process had been undermined. To maintain the integrity of the training provided and ensure that trainees were not prejudiced by the actions of this private firm, where necessary, FÁS had the relevant trainees retrained and re-assessed and the certifying bodies were satisfied to issue the appropriate certifications.
The Tánaiste understands from FÁS that in respect of one of the courses the private firm paid for the retraining but in respect of another of the courses, the cost of retraining has to date been borne by FÁS. The Tánaiste has instructed her Department to ask FÁS to consider to what extent it can recover from the private firm the cost of this retraining and recertifying the trainees.
[89]The Tánaiste also understands from FÁS that while the internal audit was under way and the report was being prepared, existing contracts between FÁS and this private firm were not terminated as FÁS believed it did not yet have a legal basis to do so. The last training course provided by this firm to FÁS finished on 10 April 2009. The firm does not currently have any training contracts with FÁS.
The Tánaiste believes it important to tell the House that FÁS has identified a number of other current potential certification issues in the north-east region in respect of other courses. Certificates have not issued pending a review of the relevant assessments, which is currently under way. FÁS has indicated that it will undertake a review of all current contracted training courses to ensure they are fully compliant. It will also implement a plan that it has developed to improve its capabilities in assessing, certifying and quality assuring our training interventions. In addition, FÁS is finalising a new form of contract which will be utilised for all future training contracts and will have strengthened clauses on specific performance and sanctions regarding any non-compliance which emerges.
The Tánaiste has instructed her Department to write to the director general of FÁS to seek clarification as to why, in the light of the private firm’s acceptance in April 2007 that assessment material had been manipulated on one contract, FÁS and the private firm did not ensure that the same thing did not occur on subsequent contracts; whether FÁS can recover from the private firm the cost of retraining and recertifying the trainees; whether FÁS intends to establish if there is a basis for seeking to have this firm removed from the FÁS-EI National Register of Trainers; and the other action FÁS is taking to ensure that events of this nature cannot recur. FÁS has advised that the integrity of FÁS training products, processes and quality will be a central element in the new corporate strategy and plan for the organisation.
Continued confidence in our system of training and its certification is paramount and it is essential that FÁS has robust procedures in place. In this case the internal audit procedure within the organisation worked well in identifying and addressing a problem case.
Deputy James Reilly: I am sure the Acting Chairman, Deputy Kennedy, will have an interest in this area. When I was canvassing for the Lisbon treaty I came across two ladies in Swords out for a walk. They informed me that their sister had sadly passed away as a result of an accident at Ward Cross. Ward Cross is a very busy intersection and they told me that 40 fatalities have occurred at that crossroads over the years and hundreds of others have been injured and maimed. As a result they have determined that this matter should no longer go unaddressed. They have been campaigning vigorously and bravely, given the circumstances they find themselves in having suffered such a loss. I commend them on that.
I am aware this matter has been raised at Fingal County Council and the council has addressed the issue in so far as it can do so. It has a plan in place for the introduction of anti-skid surfacing, a new roundabout, signage and road works to ensure better visual aspects to allow people see traffic coming towards them.
The bottom line is that the council needs the funding from central Government and it has not been forthcoming. The application has been made to the Department of Transport under the low cost safety improvement works on regional and local roads for 2010. I hope the Minister, in his reply, will be able to give us an undertaking that the money will be forthcoming and that no more lives will be lost needlessly and tragically at this intersection and that with the improved signage and a roundabout, these terrible tragedies will be a thing of the past.
[90]Deputy Seán Haughey: On behalf of the Minister for Transport, Deputy Dempsey, I wish to thank the Deputy for raising the matter of remedial safety works at Ward Cross, Finglas.
County councils and other major local authorities are responsible for managing and maintaining all regional and local roads in their area. Each year, the Department of Transport assesses the regional and local roads programmes of local authorities and makes grant allocations towards those programmes. The authorities must also commit an appropriate share from their own resources for this purpose, and the road grants we provide are a supplement to those resources.
Fingal County Council has been allocated a total of €5.8 million in regional and local road grants in 2009. While there are no further funds at our disposal from which we could make a special grant allocation to Fingal County Council for remedial safety works at Ward Cross, it is open to the council to fund eligible works at that location from the discretionary improvement grant provided by the Department of Transport or from its own resources. This year, a discretionary improvement grant of €0.215 million has been made to the council. The selection of works to be funded from this grant is a matter for the council.
In May this year, the Department of Transport invited applications from road authorities for funding in 2010 under the low cost safety improvement works scheme of grants. Among the applications submitted by Fingal County Council was a proposal for funding a project at Ward Cross. Fingal County Council may apply to carry out detailed design of their preferred full roundabout project as a low cost measure. It also has the option to apply for specific improvement grant funding in 2010 for the whole scheme at Ward Cross. Alternatively, if a suitable formal application could be submitted, the Department of Transport would be prepared to consider giving approval to the council to proceed with works this year on condition that the scheme would be submitted as a priority in the council’s 2010 specific improvements grant list of road grant applications.
All applications received for funding are considered, having regard to compliance with eligibility criteria, the need to prioritise projects, competing demands from other local authorities and the funds available for the scheme in 2010. Pending the undertaking of improvement works at Ward Cross, the Minister for Transport has been advised that the council has increased the amount of signage, implemented rumble strips, put in anti-skid surfacing, reduced the speed limit from 80 km/h to 60 km/h and provided new road markings. The 2010 grant allocations will be announced early in the new year.
The Dáil adjourned at 5.10 p.m. until 2.30 p.m. on Tuesday, 20 October 2009.
———————— The following are questions tabled by Members for written response and the ministerial replies as received on the day from the Departments [unrevised]. ————————Questions Nos. 1 to 8, inclusive, answered orally.
9. Deputy Kathleen Lynch asked the Minister for Agriculture, Fisheries and Food the cost of the farm waste management scheme in 2010; and if he will confirm that it will be awarded in January 2010 as promised. [36213/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): The arrangements for payment of grants under the Farm Waste Management Scheme on a phased basis have been confirmed with 40 per cent being paid this year as claims are approved. A further 40 per cent will be paid in 2010 and the remaining 20 per cent in 2011. I have also announced that a special ex-gratia payment not exceeding 3.5 per cent of the value of the deferred amount will be made to farmers whose Farm Waste Management grants have been partially deferred. This payment will be made in 2011 along with the final instalment. All inspections have now been completed and, to date this year, almost €242 million has been paid out to farmers under the Scheme. It is my intention to pay the second instalment of grant-aid to farmers under the Scheme as early as possible in the new year.
10. Deputy Enda Kenny asked the Minister for Agriculture, Fisheries and Food the action he has taken to promote the operation of the small scale local abattoir; if he has instructed the Food Safety Authority Ireland to support the development of the small abattoir; the further action he has taken to promote the sale and consumption of locally produced food in local shops other than supermarkets and in Government Departments and agencies; and if he will make a statement on the matter. [36284/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): My Department has awarded financial support to the small meat sector, which includes small slaughterhouses and low-throughput meat establishments. Following a call for applications in December 2007, and a detailed selection and evaluation process in 2008, a total of €7.8m has been awarded to 31 enterprises. This funding will assist food business operators in the sector to improve efficiency, add quality and value to products, produce new and innovative products and develop new [92]markets. Technical support for artisan meat businesses is also available through a dedicated meat technologist employed by Teagasc. The technologist works with food businesses and Teagasc and other institutes to ensure best knowledge, skills and technology is made available through training, advice and technical support.
As regards the Deputy’s enquiry about the FSAI, I should point out that the FSAI is an independent body (under the aegis of the Minister for Health and Children) whose remit is to ensure that food produced, distributed or marketed in the State meets the highest standards of food safety and hygiene. The FSAI Artisan Forum provides a platform for discussion between artisan food producers and the FSAI, which addresses food safety and hygiene issues for small artisan food producers without compromising legislative requirements and objectives.
Bord Bia, under the aegis of my Department, is the state agency responsible for market development of food, seafood, drink and horticulture at home and abroad. State Aid rules preclude the use of origin to promote products and Bord Bia has a comprehensive set of marketing and promotional programmes in place, which have been developed in consultation with key stakeholders in the food industry, at a local and national level which take account of the State aid restrictions. Bord Bia’s Quality Assurance schemes for products, such as beef, lamb and horticulture, are well known and provide information on origin.
This year Bord Bia has also introduced a “Best in Season” promotional campaign for locally grown produce promotes seasonal local produce. This highlights to consumers which fruit and vegetables are available in Ireland and when they are in season. The key messages include freshness, taste and health benefits. Press and digital media and a best in season website (bestinseason.ie) have focused on strawberries in June, new season potatoes in July and seasonally available vegetables and potatoes in a “back to school” theme for September on emphasising the important role play in a healthy balanced diet for children, particularly as the winter months approach.
The Good Practice Standard and Flag for Farmers’ Markets which was launched by Minister Sargent at the Bloom 2009 Festival encourages farmers markets to provide market access to locally produced in-season produce. Farmer’s Markets, which are active in the local community, promote the development of loyal customer base and are essential in guaranteeing regular cash flow for small businesses. Public Procurement must be in accordance with guidelines set out by the Department of Finance. Interest for local goods generally depends on the financial level of the contract.
11. Deputy Olivia Mitchell asked the Minister for Agriculture, Fisheries and Food his views on whether the average income for sheep farmers of €9,000 is an adequate wage; the action he is taking to ensure a viable sheep production industry; and if he will make a statement on the matter. [36293/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): The Deputy seems to be referring to the Teagasc National Farm Survey 2008, which shows the average Family Farm Income (FFI) for sheep enterprises was €9,593 last year. The Survey also indicates that sheep farms received an average of €15,816 in direct payments in 2008. In addition, account needs to be taken of off-farm income. More than half of all sheep farms in Ireland were shown to have some form of off-farm employment in 2008.
I have acknowledged previously the particular difficulties being experienced by the Irish sheep sector. The downward pressure on production and demand being experienced by this sector is not unique to Ireland. All of the main sheep-producing countries in Europe and indeed [93]worldwide are facing problems, with reducing flocks, pressure on income and producers leaving the sector. The sector benefits significantly from the main Schemes operated by my Department — the Single Farm Payment, the Disadvantaged Areas Scheme and REPS. I also allocated €7 million from this year’s Single Farm Payment National Reserve to hill sheep farmers, in the form of an Uplands Sheep Payment. It is estimated that some 12,500 hill sheep farmers will benefit from this once off payment. In addition, Bord Bia will spend up to €1 million this year on the promotion of sheep and lamb at home and abroad and Teagasc has allocated almost €1.5 million for sheep research.
The needs of the sector have also been taken into account in deciding how to use the unspent CAP funds for the next three years. Of the €25 million or so available annually, I have decided to allocate €18 million annually to sheep farmers, in the form of a Grassland Scheme. This Scheme will act as a significant support to incomes in the sheep sector. Also, under proposed amendments to the Rural Development Programme Ireland 2007-2013, which has been forwarded to the EU Commission, an indicative figure of €8 million has been allocated for sheep fencing and mobile handling facilities to assist sheep farmers in reducing labour input. A decision from the EU Commission on the amended Programme, including this measure, is expected later this year.
All of these additional supports will be of significant benefit to the sheep sector. In addition, I believe that the report of the Sheep Industry Development Strategy Group — the “Malone Report”— provides an excellent blueprint for the future development of the sector. While most of the group’s recommendations are the responsibility of the industry itself, a number are within the remit of my Department and its state agencies, who have made very good progress in advancing them. Areas of development include:
the establishment of ‘Sheep Ireland’ to take over the Department’s current breed improvement programme and develop a new one;
work on mechanical carcase classification for lamb, which should provide greater price transparency, a pre-requisite for efforts to improve quality and respond to the needs of the market;
the establishment of the Lamb Quality Assurance Scheme in 2007, which is operated by Bord Bia and now has over 7,000 participants; and
a programme developed by Teagasc, for Technology Evaluation and Transfer farms, which will provide an opportunity to engage with sheep farmers on the use of the latest management practices and to identify research and development needs.
While the sector is facing significant challenges at present, I am confident that it will benefit appreciably from the combination of financial support and the actions being taken by my Department, its agencies and the industry, on foot of the Malone report.
12. Deputy Willie Penrose asked the Minister for Agriculture, Fisheries and Food the process involved in establishing the newly proposed dairy consultative group, specifically as to the composition of the group. [36220/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): Last week I announced my intention to establish a consultative group to advise me on medium and long term measures for the dairy sector. I did this following the special Council of Ministers meeting on the 5th of October, where we had a thorough discussion on the need for measures to manage [94]the dairy market in the period up to and beyond quota abolition in 2015. At that meeting it was agreed to set up a High Level Group of Member States, chaired by the EU Commission’s Agriculture Director General, to examine the type of arrangements to be put in place.
In specific terms, the High level Group will examine medium term and long term ways of stabilising dairy farmers’ incomes and improving market transparency. In its work towards delivering a comprehensive report by June 2010, the Group will examine means through which contractual arrangements in the supply chain can contribute to the highest possible returns for producers, giving them more bargaining power in the process and providing a buffer against extremes of market volatility such as those that are being experienced at present. It will also examine existing market instruments and consider what other means, including a dairy futures market, could contribute to the objective of price stability in the longer term.
As the first meeting of the High Level group took place earlier this week I was anxious to establish a Consultative Group so that I could hear the views of the experts here on issues emerging at the High Level Group. In particular the ideas, knowledge and expert opinion of the Irish dairy sector will provide key perspectives on how the sector needs to be developed and supported into the future. The consultative group will be representative of all the stakeholders and I will be asking the IFA, ICMSA, ICSA, Macra Na Feirme, ICOS, IDIA and IDB to nominate representatives. In addition, Teagasc and academic interest will be invited to participate and these invitations are in the process of being issued.
13. Deputy Seán Barrett asked the Minister for Agriculture, Fisheries and Food if he will extend the REP scheme deadline for spreading slurry; and if he will make a statement on the matter. [36237/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): For participants in REPS 4, the prohibited period for spreading slurry begins on 15 October. The corresponding date laid down in REPS 3 is 31 August, but I announced on 24 August that in view of the exceptional weather conditions during the summer I was bringing this into line with REPS 4. This is the same as the date on which the prohibited period begins for all farmers under the European Communities (Good Agricultural Practice for Protection of Waters) Regulations. These Regulations are a matter in the first instance for my colleague the Minister for Environment, Heritage and Local Government.
14. Deputy Christy O’Sullivan asked the Minister for Agriculture, Fisheries and Food when he expects to submit to the EU Commission Ireland’s position in relation to the reform of the Common Fisheries Policy; and if he will make a statement on the matter. [36071/09]
15. Deputy John Cregan asked the Minister for Agriculture, Fisheries and Food if he is in a position to respond to the EU Commission Green Paper on the reform of the Common Fisheries Policy; and if he will make a statement on the matter. [36079/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): I propose to take Questions Nos. 14 and 15 together as they cover similar ground.
As you are all probably aware at this stage, the European Commission published a Green Paper last April on the reform of the Common Fisheries Policy. The launch of this paper was aimed at stimulating broad public debate on the future of the CFP ahead of the next review of the Policy, scheduled for 2012. The Policy, which was first put in place in 1983, has been subject [95]to reviews every 10 years. The most recent review was in 2002. The Commission hopes that the consultation process initiated by the Green Paper will provide feedback from Member States and stakeholders on the CFP that will guide the Commission’s work on the upcoming review of the Policy. All Member States, including Ireland, have been invited to submit written comments by 31 December 2009.
I, along with Minister of State Tony Killeen strongly believe that this review must be informed by the views of our stakeholders, so that a clear and robust Irish position can be developed. Following the publication of the Green Paper, Minister of State Killeen appointed Dr. Noel Cawley to oversee the consultation process with Irish stakeholders. Dr. Cawley is actively seeking the views of all stakeholders in order to ensure that the Irish submission on the reform of the CFP is as detailed and comprehensive as possible. Following advertisements in the National and Fishery Newspapers, a web portal was set up on the Fishing Net website for the public at large to electronically submit their observations on the CFP. I would urge those who wish to contribute to the debate to use this facility so their individual concerns and comments can be considered before our response to the Commission on the Green Paper is finalised.
To discuss the reform of the CFP directly with the fishermen themselves, Minister of State Killeen — along with Dr Cawley — attended a series of meetings around the country at the end of August. He talked with fishermen about what changes they would like to see made to the CFP, and he listened closely to their views as they are best placed to understand the current Policy’s problems and shortcomings. Further meetings involving stakeholders, including processors, environmental NGOs and the aquaculture sector are planned during the next couple of weeks. The outcome of these meetings will be compiled by Dr Cawley into a formal report and this will inform Ireland’s national position during the CFP review.
In addition to these efforts, the Federation of Irish Fishermen (FIF) has undertaken a process to develop its position on the matter. The result of its deliberations will feed into Dr Cawley’s work programme and the formation of Ireland’s position on the review. The FIF held a conference on the CFP review on Friday, 9 October, at the Radisson Hotel, Dublin Airport. At this seminar a large gathering of fishermen from all around the country listened to contributions from a broad range of experienced experts in the field of fisheries.
As I mentioned earlier, our written comments on the reform of the CFP must be submitted to the Commission by the end of the year. The Commission will then publish a summary of its consultations with Member States in 2010. This will be followed by a legislative proposal to the Council and the European Parliament to be adopted in 2011, with a view to its entering into force in 2012. It has been acknowledged across the EU Member States that the current CFP has not worked effectively and that a complete overhaul of the Policy is necessary. We are in full agreement with the view that fisheries management needs to be simplified. New measures are required that will involve fishermen more directly with the Policy while improving its ability to sustain and rebuild the fish stocks upon which our industry is dependant.
From an Irish perspective, our long-term priority is to have a strong, sustainable and profitable seafood industry that supports fishing and related economic activities in our coastal communities. These communities need to maintain jobs in the catching, supply and processing sectors. To do that, they need to maintain their access to the marine resources in our waters. Our coastal communities and family-owned fleet have traditionally been sustained by our available national quotas. Those quotas were granted under the CFP as public goods to the Member States, based on traditional levels of activity in Member States’ fleets and for the purpose of protecting those fleets and those communities. In Ireland these have, over the last quarter century, been distributed as public goods to meet seasonal, regional and local needs of our fleet.
[96]Without access to quotas, our fleet and local fishing ports would wither and die. Therefore, as part of the reform process, we need to ensure that our fishing fleet’s future access to resources is sustained. This access to resources also will need to grow substantially as stocks are rebuilt. It is vitally important that the reform of the CFP does not (as some would want and are actively pressing for) result in large European fishing companies being able to accumulate concentrations of fish quotas and fishing effort to the detriment of family-owned fleets and traditional coastal communities.
While not wanting to pre-empt the outcome of the consultations, our purpose must be to create and retain jobs and industrial opportunities in our Coastal areas. This imperative is doubly important given the current economic climate. I believe that to maintain the social and economic fabric of these communities, quotas and fishing effort should be retained at a national level and in public ownership. Suggestions that promote internationalisation, Individual Transferable Quotas, transferable effort and the concentration of activity amongst large European companies would, I feel, be counter productive and would ultimately result in the loss of jobs for our local coastal economies.
In Ireland, our fishing communities are dependant on all elements of the fleet, both large and small. Hence we do not accept the view put forward by some that only small inshore fleets are socio-economically important and that the larger fleets and the resources they access can be internationalised into a “European” fleet. Indeed, in Ireland a large proportion of onshore employment in the seafood sector is dependant on the largest vessels operating from, and landing into, Irish ports. This is critical in areas such as Donegal and the South West. If those vessels and those quotas were transferred away from the country, or into freezer vessels, Ireland would lose a large part of the economic benefit and jobs it derives from the seafood sector. We will endeavour to protect against this happening in the Reform Process.
Ireland shoulders a large burden in relation to the management and the policing of the CFP in our zone. This was recognised in the founding documents of the CFP, and was set out as a consideration in the unanimous Hague Declaration in 1976 which granted Ireland the Hague Preferences as part of the integral structure of the CFP. In return for this, Ireland gave its support for the extension of the Exclusive Economic Zone’s of the European States to 200 miles, thus enabling the birth of the CFP. In the intervening decades, Ireland has done its part in administering the CFP in our zone. As long as we retain a viable fishing industry, with access to the vital resources in our waters, we will to the best of our ability continue to fully protect and sustain the stocks in our area and administer a reformed CFP that ensures the future prosperity of our seafood sector at sea and on land.
The Reform of the CFP isa major issue for all of Europe and we in Ireland are committed to working closely with the FIF, other stakeholders, our Member State colleagues and the Commission to strengthen the Policy for the betterment of fisheries as a whole and the traditional coastal communities which are dependant on it. We will work to have a Common Fisheries Policy that takes account of the unique structure of the Irish fishing industry.
16. Deputy Mary Alexandra White asked the Minister for Agriculture, Fisheries and Food the role of and the functions to be carried out by an Forás Orgánach; and if he will make a statement on the matter. [36077/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): Forás Orgánach was established to drive forward the development of the organic sector in Ireland. It replaces the National Steering Group for the Organic Sector which completed its second three-year term [97]earlier in 2009. Forás Orgánach was established to build on the work of the National Steering Group and its predecessor, the Organic Development Committee. Forás Orgánach is made up of individuals with expertise in particular areas who can bring their talents and specialist knowledge to the efforts to develop the organic sector further. It is chaired by Mr Noel Groome, Managing Director of Groome’s, a major employer in the fresh food industry. The scope of the group is to provide a platform for progress and change within the organic sector.
The objectives of Forás Orgánach are:
To achieve a targeted increase in conversion to organic production.
To promote organic within the mainstream media.
To highlight the benefits of organic produce to the broader consumer base.
To replace imports with home organic produce.
To promote awareness of the potential export market.
To create business opportunities between the retail/produce sectors.
Forás Orgánach, which has already met twice, has set down a number of goals. These goals include using the current Organic Farming Action Plan to reach the objectives I have just mentioned, and revisiting the plan regularly to reassess its relevance. Expert sub-groups will be set up within Forás Orgánach to carry out specific tasks. There is also a plan to develop a comprehensive document on the business and financial aspects of organic farming.
17. Deputy Kathleen Lynch asked the Minister for Agriculture, Fisheries and Food his views on whether dairy farming here, as currently structured, can compete on the world market; and his further views on the price which will be returned from the world market based on current expert forecasts. [36212/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): As we all know, the international dairy industry is facing serious challenges at present. Markets for dairy products are extremely weak across the world, primarily due to a collapse in demand caused by the global economic downturn. Over the past couple of years we have witnessed extremes of volatility in dairy product prices on an unprecedented scale. During 2007 dairy prices reached record high levels during the international commodity price boom. In 2008 world dairy markets returned to far lower levels and has continued into this year. We have seen the effect of these international low level prices finding their way back through the milk chain to primary producers.
Dairy farmers incomes are comprised of the market price paid for milk and direct income support from the EU. Market forces have a major influence on the price paid to farmers for milk. World market prices determine the returns received by dairy processors and these in turn are reflected in the price paid to farmers. In essence, farm gate prices normally reflect the returns from international markets of dairy product sales. As the milk price is greatly influenced by supply and demand market support schemes can only have a limited effect on prices. For a dairy producing country like Ireland, where we export the vast majority of our product, this new framework is particularly relevant. Ultimately the market is the source of income and to maximise income the focus has to be on competitiveness, efficiency and innovation.
The Common Agricultural Policy contains support measures to help us manage the market. During the Health Check negotiations last year I fought hard to keep the important measures [98]in place. Since the start of the current crisis I have pressed the Commission to use the available market instruments. Most of these supports have now been activated since the beginning of the year and have helped to stabilise the situation. Over the past month there has been comprehensive discussion of the dairy sector at the Council of Ministers. Twenty countries have now signed a statement calling for an EU approach that would combine short term measures with a medium to long term strategy to deal with volatility in the milk sector. At a special Council meeting last week it was agreed to establish a High Level Group to examine the sort of measures that could be put in place. I have decided to set up a consultative group to advise me on the medium and long term measures that will best position the Irish dairy sector for the future.
It is important to remember that the medium term prospects for global dairy markets are good. Growth in wealth and population is forecast to stimulate strong levels of demand for dairy products and returns will improve to all parts of the sector. The Government is committed to ensuring that the Irish dairy sector reaches its full potential. One of the major challenges in the medium term will be to ensure that Irish farming and the agri-food sector is at the heart of an evolving high-value food market, which is focussed on quality and innovation. This is at the core of Government strategy which sets out a series of actions to develop a competitive, innovative and consumer focussed agri food sector.
18. Deputy Shane McEntee asked the Minister for Agriculture, Fisheries and Food his plans regarding the reinstatement of the young farmers’ installation aid and early retirement programmes; and if he will make a statement on the matter. [36287/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): The Young Farmers’ Installation Scheme was closed to new applicants on 14 October 2008. I have no immediate plans to reopen entry to this Scheme at this time. I have reopened the Early Retirement Scheme until 30 October 2009 with a view to accepting as many as possible of those applications that were completed or close to completion at the time entry to the scheme was suspended on 14 October 2008.
19. Deputy Paul Connaughton asked the Minister for Agriculture, Fisheries and Food the amount of money paid out by him to date to producers and food processors arising from the pork dioxin problem; and if he will make a statement on the matter. [36252/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): To date a total of €69m has been paid to pigmeat processors under the Pigmeat Recall Scheme, €30m to primary processors and €39m to secondary processors.
20. Deputy Ruairí Quinn asked the Minister for Agriculture, Fisheries and Food the various phases of the plans to reorganise his Department’s offices around the country. [36223/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): On 15th July, the Government approved my plan for a reorganisation of my Department’s Local Office Network. The plan involves reducing, from 57 to 16, the number of offices from which the Department will operate District Veterinary, Forestry and Agricultural Environment and Structures support services in the future. Improvements in business processes, information technology and [99]communications will allow the Department to provide a quality service to our clients from the 16 enhanced offices set out in the plan. The first phase of the re-organisation will involve the enhancement of four regional offices, Drumshanbo, Navan, Enniscorthy and Waterford, and consequential office closures in Sligo, Longford, Drogheda, Carlow, Kilkenny, Dundalk, Wicklow and Dungarvan. The schedule and details for the subsequent phases have yet to be finalised.
21. Deputy Niall Blaney asked the Minister for Agriculture, Fisheries and Food the measures he has put in place to support young farmers, both in terms of on-farm investment and the allocation of milk quota to new entrants; and if he will make a statement on the matter. [36066/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): I have made provision of €9.75 million in 2009 to meet existing commitments under the Young Farmers’ Installation Scheme and the preceding equivalent schemes. In addition, I have recently announced my intention to introduce a new range of aid measures in relation to on-farm investments, some of which will be particularly targeted at young farmers. These measures will be introduced as soon as EU approval is received for the measures in question and following agreement on the specific cash-limits available for each measure.
The allocation of milk quota to new entrants to dairying has been a key component of milk policy for some time, and I am glad to say that the long-standing arrangements for making quota available to new entrants under the Milk Quota Trading Scheme have been significantly enhanced recently with the allocation of 200,000 litres of milk quota to 70 new entrants to dairying. As the Deputy will be aware, the first of five annual one per cent increases in quota agreed under last November’s Health Check of the CAP reform became available on 1 April of this year. In addition to using three-quarters of this increase to boost the quotas of active milk producers, I decided that, at a time when the dairy sector is facing many serious challenges, it was more important than ever to make every effort to encourage new thinking and new methods.
All in the industry are agreed on the importance of attracting new blood, so I decided to introduce a new scheme, on a pilot basis, that would make a serious effort to identify people who have a future in dairying and can demonstrate not just their potential but also their commitment to the sector. While the amount of quota that was available was limited, I am satisfied that the 14 million litres that has been allocated under the scheme has gone to high quality applicants, and I look forward to learning of the positive impact they will have on the sector in the coming years. I have also stated my intention to consider, in the context of the availability of a further one per cent of additional quota in 2010, what further potential may be available to expand the eligibility for the scheme to new and recent entrants next year following a review of this scheme.
I should also take the opportunity to emphasise what I alluded to earlier, namely, that the allocation of milk quota to new entrants continues under the Milk Quota Trading Scheme, as it did previously under the Restructuring Scheme. Since the inception of the Trading Scheme in 2007 alone, more than 60 million litres of milk quota has made its way into the hands of young farmers, and they currently have an opportunity to further augment that figure under the latest phase of the Trading Scheme, which closes for applications on 23 October.
22. Deputy James Reilly asked the Minister for Agriculture, Fisheries and Food his main [100]areas of interest on the agenda for the Agriculture Council meeting in October 2009 in Luxembourg; and if he will make a statement on the matter. [36308/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): The next meeting of the Agriculture and Fisheries Council is scheduled to take place on 19th and 20th October. The provisional agenda indicates that it will deal with both agriculture and fisheries items. As regards agriculture, the main item to be discussed is the situation in the dairy market. The Commission proposals on short term measures to address the current crisis in the sector will be presented and discussed. The proposed measures include the extension of the existing emergency powers provision in the single Common Market Organisation Regulation to the milk sector and amending the current rules on quota buy-up schemes to provide for the ring fencing of super levy collected on bought-up quota, for national restructuring measures. The Commission will also present its quarterly report on the dairy market.
The other agriculture item relates to genetically modified organisms (GMOs). The Council will be asked to decide on three proposals on the placing on the market of products containing, consisting of or produced from genetically modified maize for food and feed and for the same use as any other maize with the exception of cultivation.
In so far as fisheries is concerned, political agreement will be sought on a proposal to establish a Community control system for ensuring compliance with the rules of the common fisheries policy (CFP). Political agreement will also be sought on a Regulation fixing fishing opportunities for fish stocks in the Baltic Sea for 2010 and there will an exchange of views on the EU/Norway annual consultations for 2010. A significant proportion of the Council will be taken up with trilateral meetings on the control Regulation.
All matters discussed at Council are of interest to Ireland and this Council is no exception. I am particularly interested to hear the Commission analysis of the dairy market and I look forward to participating actively in the discussions around the Commission report, the proposals and the situation in the sector in general. Discussions on the dairy sector are not however confined to Council and as well as the usual Council preparatory meetings including the Special Committee on Agriculture, the situation in the dairy sector is being considered at Ministerial level by a group of 21 Member States including Ireland with a view to establishing a common position. In addition a High Level Group mandated to examine the medium to long term future of the EU dairy sector has been established. This Group which had its first meeting on Tuesday of this week will meet monthly between now and next June when it will present its final report. It is also intended to hold consultations with stakeholders starting at the next months meeting.
Equally the fisheries items are of great significance to Ireland and again I will be participating fully in the discussions to ensure the best possible outcome from an Irish perspective. I will be abstaining on the proposals on GMOs.
23. Deputy Deirdre Clune asked the Minister for Agriculture, Fisheries and Food the funding which has been made available to fulfil obligations under the early retirement scheme; if farmers with legitimate expectations under the scheme will receive funding; and if he will make a statement on the matter. [36249/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): I have been conscious that a number of applications were completed or close to completion at the time entry to the Early Retirement Scheme was suspended on 14 October 2008. It became apparent recently that there would be a saving on the 2009 allocation for the Scheme. On this basis I took the [101]decision to reopen the Scheme until 30 October with the intention of accepting as many as possible of those applications that were completed or close to completion at the time entry to the scheme was suspended.
24. Deputy Jan O’Sullivan asked the Minister for Agriculture, Fisheries and Food his plans to review the afforestation programme. [36219/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): Under the new Programme for Government I am committed to reviewing state forestry policy to take account of its critical role in relation to climate change and its importance to construction, bio-energy, bio-diversity and its potential to deliver long-term employment in other downstream industries. I intend to begin this work as soon as possible.
25. Deputy Emmet Stagg asked the Minister for Agriculture, Fisheries and Food his views on the alternative cost cutting proposals put forward by an organisation (details supplied) in view of the Special Group on Public Service Numbers and Expenditure Programme report. [36231/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): My Department has received a submission from the organisation named setting out its response to the Report of the Special Group on Public Service Numbers and Expenditure Programmes. The submission will be examined, together with any other submissions that may be received, in determining the budgetary framework and in the preparation of the 2010 Estimate for the Department.
26. Deputy Liz McManus asked the Minister for Agriculture, Fisheries and Food the position regarding the animal transport regulation proposals at EU level; and the policy he has adopted regarding same. [36214/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): The transport of animals is governed by Council Regulation (EC) 1 of 2005 on the protection of animals during transport and related operations. The Commission is undertaking a review of this legislation but proposals have not yet been put forward by the Commission. In view of the importance of the export trade in live animals, I expressed my concerns to Commissioner Vassiliou regarding any proposals being put forward that would have an adverse affect on our live export trade. I wish to assure the Deputy that I will participate fully in the discussions on any proposals that may emerge to ensure that account is taken of Ireland’s interests.
27. Deputy Seán Sherlock asked the Minister for Agriculture, Fisheries and Food the discussions which are taking place with a view to carbon reduction within the agricultural sector. [36227/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): Ireland is currently facing two greenhouse gas emission targets. The first of these is the Kyoto Protocol to the United Nations Framework Convention on Climate Change (UNFCCC), which limits Ireland’s total national emissions to 13% above the baseline estimate in the Kyoto Period (2008-2012). [102]Ireland’s Agriculture sector will make a very significant contribution to achieving the Kyoto target with emissions from the sector projected to fall by 8.5% on 1990 levels by 2012.
The EU package on climate change and energy security agreed in December 2008 seeks to deliver a 20% reduction in total EU greenhouse gas emissions by 2020 (relative to 1990 levels), increasing to 30% in the event of an international agreement on global emissions reductions and at the same time to increase to 20% the share of renewable energy. As part of the package, the target for Ireland’s non-trading sector emissions, including agriculture, is to reduce emissions by 2020, by an amount equal to a reduction of 20%, relative to 2005 levels. The EPA estimate that emissions from the agriculture sector will fall by over 9% by 2020 on 2005 levels. An in-depth analysis of potential emissions reduction measures for the agriculture sector suggest that further cost effective abatement is limited to 4% of emissions.
To assist the Government in identifying the most appropriate means of achieving Ireland’s non-trading sector target, the cabinet committee on climate change and energy security is examining the emissions reduction potential of the non-trading sector and will report to Government on the optimum alternatives to achieve this goal.
28. Deputy John Cregan asked the Minister for Agriculture, Fisheries and Food his views on the EU Commission plans to promote the European aquaculture industry; and if he will make a statement on the matter. [36078/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): I welcome the EU Commission’s comprehensive and wide ranging strategy on the Sustainable Development of Community Aquaculture which incorporates the promotion of an environmentally sustainable industry, focused on safety and quality of EU aquaculture production. It is anticipated that the Aquaculture strategy will provide the framework to promote a competitive and diverse aquaculture industry, supported by the most advanced research and technology, covering the whole supply chain and meeting consumer demands in a sustainable manner.
29. Deputy Jimmy Deenihan asked the Minister for Agriculture, Fisheries and Food the position with regard to on-farm nitrates regulations inspections; if he has come to an agreement with the Department of the Environment, Heritage and Local Government to avoid duplication of inspections; and if he will make a statement on the matter. [36266/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): The Local Authorities are the designated competent authorities for the purposes of the European Communities (Good Agricultural Practice for the Protection of Water) Regulations (SI No. 101 of 2009). However, I have agreed that inspections to meet the requirements of the Nitrates Regulations will be undertaken by my Department. My objective is to ensure that the duplication of on-farm inspections is avoided for practical reasons, to minimise costs and to simplify the inspection arrangements from the farmer’s perspective.
It is envisaged that my Department will carry out inspections on behalf of the Local Authorities. Detailed arrangements, including criteria for farm selection, inspection protocol and cross reporting will be agreed between both Departments, in consultation with the Local Authorities and the Environmental Protection Agency. Inspections to be carried out as part of this new arrangement will be in addition to the existing inspections carried out by my Department.
[103]Discussions are ongoing between officials of my Department, the Department of the Environment, Heritage and Local Government and representatives of the Local Authorities to finalise arrangements in relation to these matters. It must be emphasised however that Local Authorities remain the designated competent authorities for the purposes of the Nitrates Regulations. As such, Local Authorities retain duties and powers to investigate pollution incidents and complaints under the Nitrates Regulations.
30. Deputy Pat Breen asked the Minister for Agriculture, Fisheries and Food the position regarding the proposal for electronic tagging of sheep; and if he will make a statement on the matter. [36240/09]
87. Deputy Tom Sheahan asked the Minister for Agriculture, Fisheries and Food if the programme for electronic tagging of sheep has been completed; and if he will make a statement on the matter. [36192/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): I propose to take Questions Nos. 30 and 87 together.
The introduction of electronic identification (EID) for sheep was agreed at EU level in late 2003. At that time, it was agreed to defer the implementation date until January 2008. The Council revisited this issue in December 2007 when it was agreed that the deadline for the compulsory introduction of EID should be definitively set for 31 December 2009. I have consistently opposed the mandatory introduction of EID and have sought its introduction across the Irish sheep industry on a voluntary basis. There has, however, been a lack of support from other EU Member States or from the European Commission for a voluntary scheme. In these circumstances, and notwithstanding my opposition to EID, I have had my Department engage with the European Commission and other Member States, in an effort to secure amendments so as to achieve the best implementation conditions for Irish sheep farmers.
I am glad to say that a number of significant concessions that should ease the burden on the sector in implementing EID were recently agreed with the Commission and other Member States. This is an important step in the right direction. I should say that for my part I am anxious that whatever system is finally implemented imposes the least burden possible on the sheep sector.
31. Deputy Andrew Doyle asked the Minister for Agriculture, Fisheries and Food if he has engaged in discussions with the Health Service Executive with regard to streamlining food safety monitoring and control; if he has advocated the establishment of the Food Safety Authority as the authority in charge of food safety with all other organisations accountable directly to the FSAI; and if he will make a statement on the matter. [36195/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): The F.S.A.I. was established by the FSAI Authority of Ireland Act, 1998 under the aegis of Department of Health and Children. Section 11 of that Act assigns overall responsibility for food safety in Ireland to the F.S.A.I. In accordance with the provisions of Section 46 and 48 of the Act, my Department carries out functions under service contract acting on behalf of and as an agent for the Authority. I am satisfied that the system of the F.S.A.I. carrying out its functions through service contracts has operated well.
32. Deputy Noel Treacy asked the Minister for Agriculture, Fisheries and Food the discussions which have taken place at the EU Council of Agriculture Ministers in relation to the Common Agricultural Policy post-2013; and if he will make a statement on the matter. [36069/09]
60. Deputy Noel Treacy asked the Minister for Agriculture, Fisheries and Food his views in relation to the need for a strong well funded Common Agricultural Policy post-2013; and if he will make a statement on the matter. [36068/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): I propose to take Questions Nos. 32 and 60 together.
A first policy debate on CAP post 2013 took place at the Informal Agriculture Council in September last year under the French Presidency. The Czech Presidency continued the debate in the first months of 2009, focusing, in particular, on the issue of direct payments to farmers. The Swedish Presidency Programme provides for further discussion later this year, concentrating on rural development issues. In addition to these discussions at Council, both I and my officials have engaged with other Member States and the Commission bilaterally on the future of the CAP.
Notwithstanding the discussions to date, concrete proposals have yet to emerge on the shape of EU agriculture policy beyond 2013. The Commission is expected to bring forward a formal communication in mid 2010 on the future of the CAP, followed by legal proposals in mid 2011. A first round of formal negotiations will commence on the Communication, leading possibly to the agreement of Council Conclusions, while the more intense phase of formal negotiations will commence once the legal proposals are tabled. My own view, which I have expressed at meetings of the Council and bilaterally to my Ministerial colleagues, is that we must maintain a strong agricultural production base in the European Union in the future to take account of the challenges ahead in meeting increased demands for food. Any reduction in food production in the EU would be taken up elsewhere, where less efficient production systems exist, and would result in a heavier carbon footprint. We must also undertake food production and distribution in a manner that is sustainable in all its dimensions — economically, socially and environmentally.
There will be major challenges ahead from climate change, increased competition on world and EU markets, the international economic crisis and other factors. We must ensure that we have the capacity to cope with the challenges and fully exploit the opportunities as they emerge. To do so, our whole sector, from farm to fork, must be highly efficient and competitive. It must also be innovative, producing the products that changing consumer tastes demand, and it must be relentlessly focused on quality and safety.
To achieve these objectives, there is a continuing need for an active and appropriately resourced European agricultural policy. That policy needs to recognise the role that a cohesive agriculture & rural development policy can play in addressing future energy needs, addressing environmental concerns and providing a secure and sustainable food supply in Europe. I launched a consultation process in July last with stakeholders to obtain their views on what EU agriculture policies would serve Ireland and the EU best in the years to come. I am very pleased with the response received to date and I would call on those organisations which have not already made submissions to let me have their views as soon as possible. All submissions received will be carefully examined and will help to inform our position in the very important negotiations that lie ahead.
33. Deputy P. J. Sheehan asked the Minister for Agriculture, Fisheries and Food the main provisions and aims of the proposed forestry Bill; and if he will make a statement on the matter. [36197/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): The purpose of the Forestry Bill is to reform and update the legislative framework relating to forestry in order to support the development of a modern forestry sector that enshrines the principles of sustainable forestry management and protection of the environment. The Bill will, among other provisions, introduce a more streamlined felling licensing system, allow for change of land use from forestry to other sustainable uses and provide a statutory basis for Forest Service Guidelines and Forest Management Plans. The Bill itself is currently being drafted by the Parliamentary Draftsman.
34. Deputy Seymour Crawford asked the Minister for Agriculture, Fisheries and Food when he will publish the report into the pork dioxin contamination issue; and if he will make a statement on the matter. [36258/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): The Review Group is considering the report and recommendations of the Joint Oireachtas committee which it received on 26th May 2009 as well as a range of submissions from interested parties. As I advised the Joint Oireachtas Committee I established a Review Group, chaired by Dr. Patrick Wall, to make recommendations on whatever adjustment of controls or other measures are necessary in the light of the experience gained during the dioxin contamination incident. The work of the Group is ongoing and I expect it to report by the end of the month to both the Minister for Health and Children and myself.
35. Deputy Joanna Tuffy asked the Minister for Agriculture, Fisheries and Food if the 5,000 farmers excluded from the farm improvement scheme in 2007 will be given priority in the recently announced new grant schemes. [36232/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): The Farm Improvement Scheme was introduced by my Department in July 2007 with funding of €79 million as agreed under the Partnership Agreement, Towards 2016, and was suspended on 31 October 2007 as applications received had reached this level of funding. 12,675 applications were received from farmers prior to the closing date of the Scheme and these applications have been processed within my Department up to the level of funding available.
The various on-farm investment schemes referred to in my recent announcement will be targeted, however, at specific groups of farmers and applications for grant-aid under these schemes will be subject to both eligibility and assessment criteria in order to determine those which will be approved for grant-aid. Applicants who did not receive approval under the Farm Improvement Scheme will, of course, be eligible to apply for the various aid schemes when they are introduced where they comply with the specific eligibility criteria laid down in the scheme concerned.
36. Deputy Tom Hayes asked the Minister for Agriculture, Fisheries and Food his views on [106]whether the horticultural producer groups are a fundamental part of the horticultural production supply chain; the action he has taken to support producers’ groups and prevent closure; and if he will make a statement on the matter. [36279/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): My Department consistently supports the Horticulture sector with its grant aid schemes. The EU Scheme of Aid for Producer Organisations (POs) in the Fruit and Vegetables Sector encourages producers to organise themselves into Producer Organisations (PO) in order to strengthen their position in the market. More flexible terms and conditions were introduced for the PO Scheme from 2008 under Regulations (EC) Nos. 1234/2007 and 1580/2007. My Department has secured nearly €35M in EU Aid for Irish POs for the operational programmes which they implemented between 1999 and 2008. These programmes allow fruit and vegetable growers to implement annually approved business plans to improve the quality and commercial value of their produce and promote the use of environmentally aware cultivation practices.
37. Deputy Niall Blaney asked the Minister for Agriculture, Fisheries and Food his views on whether there is further scope for the allocation of additional quota to young farmers as a result of the outcome of the Common Agricultural Policy health check; and if he will make a statement on the matter. [36067/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): When I announced recently the allocation of milk quota to 70 new entrants to dairying, which arose from the first of five annual increases of one per cent in milk quotas agreed under the CAP Health Check, I stated my intention to consider what further scope might be available to allocate quota to young farmers when the next one per cent falls due for allocation in 2010. This process will be informed by a full review of the operation of this year’s scheme, which will be conducted in the coming months.
38. Deputy John O’Mahony asked the Minister for Agriculture, Fisheries and Food the progress made on the plans to provide high rope adventure courses in forests here; and if he will make a statement on the matter. [36303/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): Following approaches from a number of potential aerial trail operators interested in operating such facilities on Coillte lands, the company examined the issue of locating aerial trail adventure systems in a small number of appropriate locations across the country. An operator was chosen as the preferred operator and planning permission was granted to operate such a facility at Lough Key Forest Park. However, the preferred operator has since indicated that, due to changed financial circumstances, it will not be taking up the option. I understand from Coillte that it will therefore re-advertise for expressions of interest from operators who may be interested in operating aerial trails on its lands.
39. Deputy Seán Connick asked the Minister for Agriculture, Fisheries and Food the role he envisages of a sustainable food and agricultural policy in addressing the inter-related global challenges of climate change, population growth and water scarcity; and if he will make a statement on the matter. [36075/09]
[107]75. Deputy Seán Connick asked the Minister for Agriculture, Fisheries and Food his views on the need to develop an overall EU strategy to address the twin challenge of achieving food security and dealing effectively with climate change; and if he will make a statement on the matter. [36074/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): I propose to take Questions Nos. 39 and 75 together.
The Conference of the Parties to the United Nations Framework Convention on Climate Change aims to finalise an international agreement on global greenhouse gas emissions reductions in Copenhagen in December. The Government supports the EU commitments to reduce overall greenhouse gas emissions to at least 20% below 1990 levels by 2020 and to scale up this reduction to as much as 30% as part of a new global climate change agreement.
At the same time the international community is committed to reducing by half the number of malnourished people in the world by 2015, but the latest estimates from the Food and Agriculture Organisation of the United Nations show that the number of hungry people could actually increase by a further 100 million in 2009 and pass the one billion mark. For this reason the World Summit on Food Security will be held in Rome in November to consider the actions that must be taken to reduce and eradicate hunger. Ireland strongly supports the international effort to eradicate hunger and believes that we must significantly intensify our efforts in this regard.
United Nations projections suggest that the world population will rise from the current 6.8 billion to 9.2 billion by 2050, with an associated 70% increase in demand for food. At the same time, more than ever, food production is facing competition for land and water resources due to the increasing demand for crops for the production of bioenergy and from urban development. I am concerned at the scale of these challenges, and I believe that there needs to be greater attention on how best to reconcile the twin objectives of reducing greenhouse gas emission while increasing food production and improving access to food. Reconciling these objectives is vital for our collective futures, but presents significant challenges that need to be addressed directly and jointly.
At the Council of Agriculture Ministers in September 2008 and again in July and September 2009, I raised the challenge of reconciling climate change targets with our regional and global food security objectives. We have also repeatedly highlighted this issue in EU and UN discussions leading up the Copenhagen conference. I believe that our efforts are having some impact that there is now growing awareness of this issue.
As well as contributing to the mitigation of greenhouse gas emissions and adapting to unavoidable changes to our climate, agriculture must also deliver other major environmental priorities. These include, maintaining a high level of biodiversity, helping to preserve natural habitats and the protection of endangered species. In my view, sustainable agricultural production, sustainable land use and land use management is the key to achieving these priorities. Coherent EU and UN policy on these matters is important in the context of any agreement at Copenhagen and in the long term beyond 2020.
40. Deputy Máire Hoctor asked the Minister for Agriculture, Fisheries and Food his spending proposals for the use of the unspent single payment scheme funds, announced in the context of a revised rural development programme; and if he will make a statement on the matter. [36065/09]
[108]Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): Under the agreement reached in November 2008 on the Health Check of the CAP, I secured approval to use previously inaccessible unspent Single Payment Scheme funds to address, among other things, specific disadvantages affecting certain sectors in economically vulnerable or environmentally sensitive areas. Member states may also provide support to farmers for specific agricultural activities providing agri-environmental benefits.
Resulting from this agreement Ireland gained access to in the region of €25 million in additional funding for each of the next three years 2010, 2011 and 2012 for these targeted measures. In considering how these moneys might be best spent my objective was to achieve the most effective and efficient outcome for Irish agriculture. With this in mind and having consulted widely with all relevant stakeholders including the farming organisations and having regard to the provisions of the regulations, I decided to allocate the available funds as follows: €18 million each year for the next three years on a grassland scheme to support incomes in the sheep sector, €6 million each year for the next three years on a grassland dairy efficiency programme aimed at encouraging a significant improvement in efficiencies on dairy farms, and €1 million for each of the three years 2010, 2011 and 2012 to support high environmental value farming, with tourism spin-off, in the Burren, County Clare, continuing and mainstreaming the pilot scheme operated by the Department of Environment, Heritage and Local Government.
In addition to this agreement I successfully negotiated for the use of the national reserve element of these funds from 2009. In this regard I have already announced that approximately €7 million will be paid to hill sheep farmers as a once off payment in the form of an uplands sheep payment, benefiting approximately 12,500 hill sheep farmers.
41. Deputy Seán Sherlock asked the Minister for Agriculture, Fisheries and Food the reason for the reported 15,000 queried applications in respect of single farm payment. [36226/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): Agreement was reached in the Council of Ministers in June to allow for an advance of the single payment scheme payments to begin issuing on 16 October, a full six weeks earlier than the 1 December commencement date provided for under the rules of the scheme. As well as earlier payments, the level set for the amount of the advance payable was set at an unprecedented 70%. While some member states are not in a position to make advance payments, this is not the case in Ireland and I can confirm that arrangements are in place for the commencement of these payments in accordance with this very welcome concession and payments will begin to issue to applicants’ accounts over the coming days. The 30% balancing payments will begin to issue with effect from 1 December.
Approximately 123,700 applications were submitted to my Department under the 2009 single payment scheme. At least 92% of these applications, worth over €800 million, are now fully clear for the first payment run on 16 October. My Department is continuing to process applications and I have made arrangements for further frequent payment runs to ensure that newly finalised applications are paid without delay.
In order to ensure that payments under the single payment scheme are maximised between now and the end of 2009, I would take this opportunity to urge all applicants who have received queries from my Department in connection with their application to respond as a matter of urgency with the necessary clarifications.
42. Deputy Michael Creed asked the Minister for Agriculture, Fisheries and Food if he will [109]investigate the possibility of re-establishing the sugar beet industry here; and if he will make a statement on the matter. [36185/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): As part of the reform of the EU sugar regime in 2006, a temporary restructuring scheme was introduced with the aim of reducing EU sugar production in order to comply with WTO and other international obligations. The scheme provided an incentive for sugar processors to renounce sugar quota and dismantle the associated sugar processing plant and it provided compensation for affected stakeholders. Greencore, the sole Irish sugar processor and holder of the entire Irish quota allocation, decided to avail of this scheme and accordingly the company renounced the quota and dismantled the last remaining Irish sugar factory at Mallow in compliance with the conditions of the scheme. This brought the Irish sugar industry to an end. The stakeholders concerned have now received their compensation payments in full.
As a result of the restructuring scheme the overall EU sugar quota was reduced by almost 6 million tonnes, of which the Irish quota contributed some 200,000 tonnes. Any proposal to review the EU sugar quota would be a matter for the EU Commission in the first instance and any proposal to re-establish a sugar factory in Ireland would, subject to the availability of quota, be a matter for commercial decision by interested parties.
43. Deputy Brian O’Shea asked the Minister for Agriculture, Fisheries and Food the steps he will take to assist dairy farmers here, in the grip of the worst cash flow and income crisis in a generation, bearing in mind that many of their European counterparts have been helped by their Governments, with low or no-cost loans, excise reductions on fuel, or lower social security contributions, financed using the permission by the EU Commission to use the higher de minimis state aids provision up to €15,000 per farmer over three years. [36217/09]
47. Deputy Charles Flanagan asked the Minister for Agriculture, Fisheries and Food the initiatives he will introduce to bring about greater efficiency in the dairy sector; and if he will make a statement on the matter. [36274/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): I propose to take Questions Nos. 42 and 47 together.
Dairy farmers incomes are comprised of the market price paid for milk and direct income support from the EU. Market forces have a major influence on the price paid to farmers for milk. World market prices determine the returns received by dairy processors and these in turn are reflected in the price paid to farmers. In essence, farm gate prices normally reflect the returns from international markets of dairy product sales. As the milk price is greatly influenced by supply and demand market support schemes can only have a limited effect on prices. For a dairy producing country like Ireland, where we export the vast majority of our product, this new framework is particularly relevant. Ultimately the market is the source of income and to maximise income the focus has to be on competitiveness, efficiency and innovation.
In July I announced proposals for the spending of more than €200 million on new investment measures in Irish agriculture as part of a revised rural development programme. These included the allocation, from unspent single payment scheme funds, of €6 million per annum for the next three years to a scheme to encourage a significant improvement in efficiency on dairy farms. In addition, €45 million has been earmarked for an investment support scheme aimed at helping young dairy farmers to adjust to expanding dairy opportunities and make their commercial operations more cost-effective. Details of both of these schemes are currently being drawn up by my Department.
[110]Over the past month there has been comprehensive discussion of the dairy sector at the Council of Ministers. Twenty ministers, including myself, have now signed a statement calling for an EU approach that would combine short term measures with a medium to long term strategy to deal with volatility in the milk sector. We met in Vienna earlier this week where we agreed on new measures to be implemented in the sector. Specifically, we will be asking the Commission to commit to an additional €300 million for the 2010 budget, without prejudice to other sectors.
44. Deputy Bernard Allen asked the Minister for Agriculture, Fisheries and Food if the operational programme for fisheries has been finalised; and if he will make a statement on the matter. [36193/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): The National Seafood Development Operational Programme 2007-2013, which provides for grant aid support to develop the aquaculture industry, was advertised for public consultation in October 2008. Following this consultation process issues were raised by the Department of the Environment, Heritage and Local Government and the Department of Communications, Energy and Natural Resources on behalf of Central Fisheries Board (CFB) regarding the grant-aiding of projects where environmental issues arise relating to compliance with the EU Birds and Habitats Directives and sea lice control on salmon farms.
This Department with its agencies working with the Department of the Environment, Heritage and Local Government (DEHLG) developed a plan to deliver compliance with the EU Birds and Habitat directives for wild fisheries and aquaculture over a determined timeframe. This plan was submitted to DG Environment for consideration. While substantial progress has been made in securing the agreement of DG Environment to the provisions of the plan which has been the subject of detailed discussions, DG Environment has not formally signed off on the plan. My officials will continue to work closely with the Department of the Environment, Heritage and Local Government with a view to giving them the assurances that will allow them to withdraw their objections to the Operational Programme.
A meeting at ministerial level was held in June between my Department and the Department of Communications, Energy and Natural Resources. I advised on the significant progress made in relation to managing sea lice levels on salmon farms and the concerns of the Fishery Boards were also set down. I am hopeful that there is a better understanding of the issues involved from both Departments’ perspectives and that on this basis we can find a satisfactory resolution to the concerns raised. However, at this time it has not yet been possible to satisfy the concerns of the CFB on sea lice.
I would hope to be able to approve the OP once all issues raised have been dealt with and that both the Department of the Environment, Heritage and Local Government and the Department of Communications, Energy and Natural Resources are satisfied with the progress made on the issues arising.
45. Deputy Michael Creed asked the Minister for Agriculture, Fisheries and Food the role played by Irish laboratories and UK laboratories in the recent outbreak of equine piorplasmosis; and if he will make a statement on the matter. [36190/09]
[111]62. Deputy Jan O’Sullivan asked the Minister for Agriculture, Fisheries and Food the situation regarding the status of equine piroplasmosis here in view of the outbreak of the disease in September 2009. [36218/09]
84. Deputy Seán Ó Fearghaíl asked the Minister for Agriculture, Fisheries and Food the steps taken by him following recent confirmation of occurrence of equine piroplamosis in a number of thoroughbred horses at an equine facility in County Meath; and if he will make a statement on the matter. [36072/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): I propose to take Questions Nos. 42, 62 and 84 together.
Equine Piroplasmosis is a tick-borne protozoal disease of horses and other equidae that is common in most parts of the world but not normally found in Ireland. Samples submitted by the private veterinary practitioner attached to a racing stable in County Meath to a UK reference laboratory indicated serological positives for piroplasmosis among some of the horses on the holding. My Department was notified of positive laboratory results on three of the horses on 2 of September 2009, following which a full epidemiological investigation was launched. Animals that moved to and from the affected holding were traced and all animals on the affected holding itself along with all traced animals were tested.
Arising from this, a second related holding in County Wicklow was found to be affected and this holding has also been restricted and subject to investigation. In addition to the initial UK testing, further testing and analysis has been carried out in Irish laboratories — either the Irish Equine Centre in Kill, County Kildare or the Central Veterinary Research Laboratory in Backweston. While investigations are ongoing I am hopeful that the incident of piroplasmosis has now abated on the facility in County Meath.
46. Deputy Kieran O’Donnell asked the Minister for Agriculture, Fisheries and Food the recent action taken on the traceability of pork products and the labelling of genuine Irish meat products to distinguish them from imported processed meat products; and if he will make a statement on the matter. [36299/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): The EU regulations on food law require that food business operators have systems in place to be able to identify any person from whom they have been supplied with a food. They must also have a system in place to identify the other businesses to which their product has been supplied. In other words a food business operator at each and every stage in the food chain must be able to identify the source of its inputs as well as having details of the first recipient of its output.
I am satisfied that the meat sector generally is meeting the traceability standards required under this legislation. Nevertheless and following the dioxin contamination incident, my Department, in conjunction with industry, is continuing to examine the potential to improve traceability at processing level. I also established a review group to carry out a comprehensive review of the dioxin contamination incident. This group will make recommendations on whatever adjustments of controls are necessary in the light of the experience gained in dealing with this incident. I expect that this group will cover the issue of traceability in its report.
I have pursued improvements to the labelling of meat and meat products. My Department notified the draft Health (Country of Origin of Poultrymeat, Pigmeat and Sheepmeat) Regulations 2007 to the European Commission in December 2007. These would have required the [112]country of origin of meat to be indicated on the labels of meat and products containing over 70% meat.
Following a series of communications between the European Commission and my Department, the Commission directed Ireland not to adopt the draft national regulations. The main reason for the Commission’s stance was that the proposed regulations did not fulfil the requirements of the EU labelling directive (2000/13/EC) concerning the permissibility of non-harmonised national legislation. It contended that the draft regulations would create a disproportionate obstacle to trade. The Commission view, which is supported by the majority of other member states, is that labelling matters should be dealt with on a harmonised EU basis rather than on an individual national basis.
Ireland is pursuing harmonised EU rules on origin labelling in the context of a proposed EU regulation on the provision of food information to consumers. The Department of Health and Children is the lead Department for that proposal and has been reflecting Ireland’s position at relevant meetings on the subject.
Question No. 47 answered with Question No. 43.
48. Deputy Joe Costello asked the Minister for Agriculture, Fisheries and Food the number of farmers penalised under the REP scheme in 2008; the breakdown of this figure; and the reason for the imposition of penalties. [36207/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): There were 3,381 penalties applied to farmers under the REP scheme in 2008. These are listed in the following table. The number of farmers affected is smaller, however, as multiple breaches of the scheme were detected in a number of instances.
49. Deputy Johnny Brady asked the Minister for Agriculture, Fisheries and Food if he is satisfied with the level of support provided by the EU Commission in relation to the difficult market situation being faced by dairy producers; and if he will make a statement on the matter. [36059/09]
53. Deputy Ciarán Lynch asked the Minister for Agriculture, Fisheries and Food the proposals he is putting at EU level to stabilise dairy markets; and the level to which he is proposing to increase the intervention price. [36211/09]
86. Deputy Niall Collins asked the Minister for Agriculture, Fisheries and Food the efforts he has made to secure EU supports for milk producers here; and if he will make a statement on the matter. [36056/09]
92. Deputy Brian O’Shea asked the Minister for Agriculture, Fisheries and Food the guarantees he has secured from the European Commission that intervention stocks of both butter and skimmed milk powder will be firmly held until milk prices have recovered well in excess of break even and only released very carefully and in a manner which ensures it will not disrupt markets. [36216/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): I propose to take Questions Nos. 49, 53, 86 and 92 together.
The Common Agricultural Policy contains support measures to help us manage the market. During the Health Check negotiations last year I fought hard to keep the important measures in place. Since the start of the current crisis I have pressed the Commission to use all appropriate market instruments. Most of these supports have now been activated since the beginning of the year and have helped to stabilise the situation. Indeed, there are now early signs that dairy product prices are starting to recover.
Since the start of 2009 the Commission has reactivated a range of measure provided for in the CAP Health Check, beginning with the early operation of the private storage scheme for butter. Then, in January export refunds were reintroduced to support the export of dairy products outside the EU and these have been increased several times, most recently in June. In March, public intervention schemes for butter and skimmed milk powder were opened which allowed the purchase of product up to set limits at a fixed price. When the mandatory limits of 30,000 tonnes and 109,000 tonnes respectively were purchased at the intervention price the schemes were continued under tendering arrangements at close to the intervention prices. To date some 83,000 tonnes of butter and 282,000 tonnes of skimmed milk powder have been funded under these schemes. Also, 135,000 tonnes of butter has been aided under the private storage scheme, which was extended beyond the August closing date.
In early July the Council of Agriculture Ministers agreed to the use by the Commission of emergency provisions to allow it to extend the intervention periods for butter and skimmed milk powder for 2009 beyond the normal end-August closing dates to 28 February 2010, and to replicate this mechanism in August 2010 if necessary. The Commission has also removed the so-called “free at frontier” threshold price governing the export of cheese from the EU, which I had been pressing the Commissioner to review for some time in bilateral contacts and at meetings of the Council.
Over the past month there has been comprehensive discussion of the dairy sector at the Council of Ministers. Twenty ministers, including myself, have now signed a statement calling for an EU approach that would combine short term measures with a medium to long term [115]strategy to deal with volatility in the milk sector. At a special Council meeting last week it was agreed to establish a High Level Group to examine the sort of measures that could be put in place. That group will report in June 2010, and I have decided to set up a consultative group to advise me on the medium and long term measures that will best position the Irish dairy sector for the future.
I also welcomed the commitment given by Commissioner Fischer Boel at last week’s special Council to manage the release of stocks from Intervention in a prudent manner. We are seeing some tentative signs of an improvement in dairy markets, though a solid recovery is still uncertain and it is crucial that the disposal of stocks from intervention is handled in a sensitive manner and in a way that does not undermine the market at this critical time.
50. Deputy Jim O’Keeffe asked the Minister for Agriculture, Fisheries and Food if he has consulted with the Department of the Environment, Heritage and Local Government in relation to the extension of the time for the spreading of slurry following the extension given to farmers in Northern Ireland; and if he will make a statement on the matter. [36082/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): I consulted with my colleague, the Minister for Environment Heritage and Local Government, Deputy John Gormley, and there is on-going regular contact between officials of both Departments on a number of issues related to the Nitrates Regulations (SI No. 101 of 2009). The prohibited period for the spreading of slurry commences on 15 October in all parts of the country as required by the Nitrates Regulations. These regulations are a matter in the first instance for my colleague the Minister for Environment, Heritage and Local Government.
The planned review of Ireland’s Nitrates Action Programme in 2010 will provide an opportunity for all stakeholders to put forward their views on the question of the most appropriate dates for the prohibited periods for spreading fertilisers that are a mandatory requirement under the EU Nitrates Directive. Any adjustment to Ireland’s Nitrates Action Programme will require the agreement of the EU Commission.
51. Deputy Seán Fleming asked the Minister for Agriculture, Fisheries and Food if additional funding will be provided in 2010 to assist the sheep sector; and if he will make a statement on the matter. [36073/09]
91. Deputy Denis Naughten asked the Minister for Agriculture, Fisheries and Food the steps he is taking to support the sheep industry; and if he will make a statement on the matter. [36080/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): I propose to take Questions Nos. 51 and 91 together.
The sheep sector is already a significant beneficiary from the main schemes operated by my Department, which include the single farm payment, the disadvantaged areas scheme and REPS. In recognition of the difficulties faced by this sector, I have also allocated €7 million from this year’s single farm payment national reserve to hill sheep farmers, in the form of an uplands sheep payment. Moreover, Bord Bia will spend up to €1 million this year on the promotion of sheep and lamb at home and abroad and Teagasc has allocated almost €1.5 million for sheep research.
[116]The Deputies will also be aware that under the final agreement on the CAP Health Check, Ireland will have access to additional funds of the order of €25 million annually from unspent CAP funds for three years from 2010 onwards. I decided to allocate €18 million of this funding annually, from 2010 to 2012 inclusive, to sheep farmers, in the form of a grassland scheme. In addition, under proposed amendments to the Rural Development Programme Ireland 2007-2013, which has been forwarded to the EU Commission, an indicative figure of €8 million has been allocated for sheep fencing and mobile handling facilities to assist sheep farmers in reducing labour input. A decision from the EU Commission on the amended Programme, including this measure, is expected later this year.
Further steps to support the industry, centre on the recommendations of the Sheep Industry Development Strategy Group, which I believe provides a clear framework for progress. While the responsibility for implementing most of the group’s recommendations fall on the industry itself, a number are within the remit of my Department and the state agencies under its aegis, who have made clear progress in implementing them.
‘Sheep Ireland’ has been established to take over the Department’s current breed improvement programme and develop a new one. An interim Sheep Board, comprising representatives of farming organisations and breeders will oversee this process, with the Irish Cattle Breeders Federation (ICBF) providing the technical and professional service required.
The results of a trial to examine the feasibility of mechanical carcase classification for lamb, which was conducted last year, are being examined. It is hoped that the system will allow for the accurate and objective mechanical classification of lamb carcases and will gain universal industry support. This would aid greatly in price transparency, which is a pre-requisite for efforts to improve quality and respond to the needs of the market.
The Lamb Quality Assurance Scheme was established in 2007. This Scheme is operated by Bord Bia and now has over 7,000 participants.
Teagasc has developed a comprehensive plan to restructure its sheep support services, including a programme for Technology Evaluation and Transfer farms, which include hill and lowland areas. This approach will provide an opportunity to engage with sheep farmers on the use of the latest management practices and to identify research and development needs.
All of these actions — on the part of my Department, its state agencies and the industry — coupled with the considerable financial support for the sector, provide significant assistance to the sector, at a time when many sectors are struggling. I am confident that these can greatly benefit the sector.
52. Deputy Tom Sheahan asked the Minister for Agriculture, Fisheries and Food if he is satisfied with the award of permits to mussel fishermen in Cromane, County Kerry, in 2009; his views on whether changes should be introduced to the procedures surrounding the award of such permits in 2010; and if he will make a statement on the matter. [36191/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): In agreement with the European Commission, a new regulatory regime was developed in relation to wild fisheries following a European Court of Justice finding that Ireland was not in compliance with its [117]obligations under the EU Birds and Habitats Directives. The new regime sets out a process involving the submission of a Fisheries Management Plan, usually by the local fishermen assisted by BIM, the appropriate assessment of that plan by the Marine Institute and public and statutory consultation. In addition, an Advisory Committee made up of the Department, BIM, Marine Institute, the Sea fisheries Protection Authority, fishing industry representatives and the Environment Pillar representing environmental interests advise me in relation to these matters.
The mussel seed fishery in Cromane, County Kerry was opened this year and permits granted in accordance with the new regulatory regime. A meeting to review the operation of the new regulatory regime is currently being planned by the Department and representatives of interested parties will be invited to attend. However it is not likely that the overall design of the new regulatory system will be changed for next year but changes may be made to the procedures if improvements can be identified.
Question No. 53 answered with Question No. 49.
54. Deputy Martin Ferris asked the Minister for Agriculture, Fisheries and Food if he will be seeking increased quota for Irish fishermen as part of the review of the Common Fisheries Policy. [36199/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): As the Deputy is aware, the European Commission published a Green Paper last April on the reform of the Common Fisheries Policy. The launch of this paper was aimed at stimulating broad public debate on the future of the CFP ahead of the next review of the Policy, scheduled for 2012. The Policy, which was first put in place in 1983, has been subject to reviews every ten years. The most recent review was in 2002.
I, along with Minister of State. Deputy Tony Killeen, strongly believe that this review must be informed by the views of our stakeholders, so that a clear and robust Irish position can be developed. Following the publication of the Green Paper, the Minister of State, Deputy Tony Killeen, appointed Dr. Noel Cawley to oversee the consultation process with Irish stakeholders. Dr. Cawley is actively seeking the views of all stakeholders in order to ensure that the Irish submission on the reform of the CFP is as detailed and comprehensive as possible.
The Minister of State, Deputy Killeen, is happy to hear proposals that will support a greater share of the fish stocks for Irish fishermen. We have benefited up to now from the application of the “Hague Preferences” whereby when the Total Allowable Catch (TAC) for traditional Irish stocks are at a reduced level, Ireland benefits with a higher share of the TAC. Under the current CFP, this benefit is not an automatic entitlement but must be secured each year at the December Fisheries Council. This has in recent times been a hard fought battle as other member states lose out when Ireland secures its additional quotas. Therefore, the first priority for Ireland must be to protect this entitlement and to seek to have it reflected as a permanent entitlement in the new CFP. I also see scope for increasing quotas for Irish fishermen as stocks are rebuilt across our area in a sustainable successfully managed and reformed CFP.
To discuss the reform of the CFP directly with the fishermen themselves, the Minister of State, Deputy Killeen, along with Dr Cawley, attended a series of meetings around the country at the end of August. He talked with fishermen about what changes they would like to see made to the CFP, and he listened closely to their views as they are best placed to understand the current Policy’s problems and shortcomings. In addition to these efforts, the Federation of Irish Fishermen (FIF) has undertaken a process to develop its position on the matter. The [118]result of its deliberations will feed into Dr Cawley’s work programme and the formation of Ireland’s position on the review.
The FIF held a conference on the CFP review on Friday, 9 October, at the Radisson Hotel, Dublin Airport. At this seminar a large gathering of fishermen from all around the country listened to contributions from a broad range of experienced experts in the field of fisheries. Further meetings involving stakeholders, including processors, environmental NGOs and the aquaculture sector are planned during the next couple of weeks. The outcome of these meetings will be compiled by Dr. Cawley into a formal report and this will inform Ireland’s national position during the CFP review. All member states, including Ireland, have been invited to submit written comments by 31 December 2009 and I am satisfied that the consultation process put in place will ensure that the views of all stakeholders are fully understood and we are in a position to meet this deadline.
55. Deputy Bernard Allen asked the Minister for Agriculture, Fisheries and Food if he has concluded consideration of a value for money review on the issue of temporary veterinary inspectors; the action he proposes to take arising from this review; and if he will make a statement on the matter. [36194/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): This Value for Money (VFM) review relates to the use of the services of TVIs in slaughter plants which are under the supervision of my Department. TVIs are engaged, as and when required, to assist the Department’s official veterinarians in the performance of ante mortem and post mortem tasks at approved plants. The Department expects to be in a position to publish this review in the near future. Its recommendations will be considered carefully, as is the case for all such VFM reviews, and decisions will be taken as appropriate to ensure the most efficient and effective service delivery.
56. Deputy Joanna Tuffy asked the Minister for Agriculture, Fisheries and Food the status of the swine influenza virus in pigs here in view of the recent reports of an outbreak at a farm in County Cork. [36233/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): On 29 September 2009 the first case of pandemic influenza A/H1N1 was confirmed in Ireland in a pig breeding herd in County Cork. A second case in a breeding/fattening unit in County Cavan was subsequently notified to the Department on 9 October. In both cases, the disease was mild, had low impact on production and has no significance as regards food safety. It is believed that the most likely source of transmission to the pig herds was from infected persons. In both cases the pigs are now fully recovered and showing no clinical signs.
These outbreaks are not unexpected events given the widespread occurrence of the pandemic virus in humans and the possibility for occasional transmission from humans to pigs. In recent months the A/H1N1/2009 virus has been detected in pigs in Canada, Australia, Argentina, and more recently in Norway and Northern Ireland. The Department has recommended that increased biosecurity measures on pig farms be implemented, and that the Code of Practice for Pandemic Influenza A/H1N1 in pigs, which had already been drawn up by the Department in consultation with the pig producing stakeholders be adhered to. This code, recently distributed to all pig keepers in the country, sets out the actions that pig keepers should take to [119]reduce the risk of introduction of influenza viruses to pig herds, how to manage the disease if it is confirmed in a herd and how to prevent its onward transmission.
Influenza in pigs is not a public health concern, nor should consumers be concerned about eating pork or pork products. The FAO, the WHO and the OIE, in a combined statement have advised that influenza viruses are not known to be transmissible to humans through eating processed pork or other food products derived pigs. In line with OIE standards, the guidelines agreed at EU level do not recommend to cull infected pig herds or to prohibit the normal movement of clinically healthy animals for slaughter.
57. Deputy Margaret Conlon asked the Minister for Agriculture, Fisheries and Food the benefits that arise from the approval, by the EU Commission, of Ireland’s application for official brucellosis-free status; and if he will make a statement on the matter. [36062/09]
67. Deputy Margaret Conlon asked the Minister for Agriculture, Fisheries and Food the value to farmers here arising from the relaxation of various controls following the approval, by the EU Commission, of Ireland’s application for official brucellosis-free status; and if he will make a statement on the matter. [36063/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): I propose to take Questions Nos. 57 and 67 together.
Following the recent EU Commission decision granting Ireland officially brucellosis-free status, I announced a series of significant changes to the Brucellosis Eradication Scheme on 8 September 2009 as follows:
an increase in the age threshold for annual round testing to 24 months;
an increase in the validity period of the pre-movement test from 30 days to 60 days;
an increase in the age-limit for the pre-movement test for female animals from 12 to 18 months and, in view of the lower risk attached to their movement, to 24 months for bulls;
an increase in the “one sale” rule for bulls from 12 to 24 months.
In addition with effect from 1 January 2010, dairy herds scheduled to be tested in 2010 and 2011 will now only be tested every second year. This will exclude some 550,000 animals each year from the round test and, when taken in conjunction with the increase in the age threshold to 24 months which is being introduced immediately, will remove some 1.35 million animals from the annual testing programme.
There are considerable benefits arising from these changes in relation to public health, the alleviation of distress to farmers whose herds are affected, the relaxation of restrictions on trade in live cattle and a significant reduction in the cost of testing to farmers. On the latter point, the revised arrangements will remove the need to test approximately a quarter of all eligible animals during the course of the annual herd test. In addition, the extension of the pre-movement test to 60 days combined with the increase in the age threshold to 18 months for female animals for this test will result in further significant savings for farmers. The total saving from these changes is estimated to be in the region of €5 million.
The attainment of official brucellosis-free status was a landmark in the history of disease eradication in Ireland and I would like to thank everybody involved in this successful outcome for their co-operation and sustained effort over many years. However, there is no room for [120]complacency with regard to this disease and we must continue to be vigilant and ensure that we retain our high animal health status which, as I have said, has significant benefits for all concerned, in terms of on-farm costs, public health and market access.
58. Deputy Bernard J. Durkan asked the Minister for Agriculture, Fisheries and Food his plans for the future development of the agricultural sector; if he is conscious of the need to ensure security of supply and a reliable price structure for producers; if his attention has been drawn to the concerns of the farming community in this area at the current time; the steps he will take to address these issues; and if he will make a statement on the matter. [36201/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): As Minister for Agriculture, Fisheries and Food, I fully acknowledge the difficulties facing the farming community this year and have been consistently working both within Government and at EU level, to alleviate the current problems being faced by the sector. I have initiated a series of measure to assist the sector, a key element is the bringing forward of the single farm payment and I have also negotiated and retained significant support measures which have been put in place by the EU Commission in relation to the dairy sector.
With regard to the future, work is being advanced on the introduction of a new development plan for the agrifood sector in the period up to 2020 to maintain the impetus gained from the successful 2010 and 2015 strategies. This plan will naturally address major issues such as food security, competitiveness and market focus.
59. Deputy Bernard J. Durkan asked the Minister for Agriculture, Fisheries and Food if he has calculated the full extent of the negative impact on individual producers of budgetary cutbacks imposed by his Department in 2009; if it is intended to introduce any amelioration measures; and if he will make a statement on the matter. [36200/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): The impact of the decisions taken in the 2009 budget and supplementary budget will vary from individual to individual depending on their participation in certain schemes or the extent to which they may benefit from the measures affected.
The Deputy will be aware that the 2009 budget and supplementary budget were framed against the background of a global recession and a serious deterioration in the public finances. As a small open economy Ireland is, of course, particularly exposed to the global downturn and the international credit crisis. In response to this situation, the Government embarked on a strategy to restore the credit system, get the public finances under control and to provide the necessary stimulus to restore confidence in the economy. It was against this background that the very difficult decisions taken in the context of determining the budgetary allocations for agriculture were made.
Notwithstanding the difficult economic and budgetary situation, funding of €1.9 billion gross is provided for my Department in the 2009 budget. When combined with EU funding of about €1.4 billion administered by my Department, this represents a very substantial commitment by Government to supporting and developing the agri-food sector.
Furthermore, in recognition of the difficult circumstances in which farmers find themselves, I have announced the commencement of advance payments of 70% of the single payments scheme payments amounting to €800 million which will commence in the next few days. This is the first time that an advance of this magnitude has been paid at this early stage of the year. [121] The payment of some €220 million under the Disadvantaged Area Scheme commenced last month. The combination of these two schemes with the REP scheme and the suckler cow scheme will result in payments by my Department of more than €1.8 billion to Irish farmers in 2009. This is in addition to more than €300 million in investment support available for the agri food and fisheries sectors, and almost €120 million in supports for the forestry and bio energy sectors.
Work is also continuing on a number of other fronts, including continuing investment in R&D in the agri sector, the provision of investment support for the processing sectors, the protection of Irish farms from animal and plant diseases. I am also continuing my efforts, along with ministerial colleagues in other like minded member states, to ensure the deployment of the full range of EU market support instruments to support the dairy sector through this very difficult time.
I am also proceeding with efforts to further develop the agriculture sector within the budgetary constraints. In that context, I recently announced my intention to introduce a new €179 million Agri Environment Scheme, a new targeted on farm investment scheme worth €113 million, and proposals to spend €75 million in unspent single payment scheme funds to support incomes in the sheep sector and efficiency improvements on dairy farms. I am acutely aware of the pressure on farm incomes and of the difficulties being faced by farm families and I am firmly committed to providing the highest possible levels of support for them and for the agri-food sector.
Question No. 60 answered with Question No. 32.
61. Deputy Joe Costello asked the Minister for Agriculture, Fisheries and Food if his Department is undertaking an investigation at meat factories in respect of lamb imports; and the details of such investigations and the names of the factories being investigated. [36206/09]
70. Deputy Joan Burton asked the Minister for Agriculture, Fisheries and Food the investigations his Department is currently conducting in respect of sheep movements and sheep imports; and if he will make a statement on the matter. [36205/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): I propose to take Questions Nos. 61 and 70 together.
I can confirm that, as part of an investigation into movements of sheep, officers from my Department have visited a number of farms and slaughtering establishments. The information that has been gathered as a result of these visits is being examined, and the investigation is continuing. In the circumstances it would be inappropriate to comment further pending the outcome of the investigation.
Question No. 62 answered with Question No. 45.
63. Deputy Michael D. Higgins asked the Minister for Agriculture, Fisheries and Food when unannounced inspections commenced in 2009; when they will be concluded. [36209/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): The position is that while, in general, all inspections should be unannounced, my Department can give up to 14 days notice for land eligibility and cross-compliance inspections involving Statutory Management [122]Requirements (SMRs) other than those related to cattle identification and registration, food, feed, and animal welfare. For checks involving cattle identification and registration the maximum, advance notice is 48 hours provided the purpose of the inspection is not jeopardised. For SMRs dealing with feed, food and animal welfare, no advance notice may be given. The cross-compliance inspections are integrated insofar as possible in order to minimise the number of farm visits. For 2009, cross compliance inspections commenced on 1st May and are ongoing. All those pre-selected will be inspected within the calendar year.
64. Deputy Pat Rabbitte asked the Minister for Agriculture, Fisheries and Food when the role on the Teagasc board vacated by a person (details supplied) will be filled. [36225/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): It is proposed to fill the vacant position on the Board of Teagasc in the near future.
65. Deputy Thomas P. Broughan asked the Minister for Agriculture, Fisheries and Food the outcome of the EU Agriculture Council meeting of 5 October 2009, particularly in relation to the dairy sector. [36203/09]
68. Deputy Willie Penrose asked the Minister for Agriculture, Fisheries and Food if the views and recommendations of the proposed dairy consultative group will be published and made available to the public. [36221/09]
71. Deputy Johnny Brady asked the Minister for Agriculture, Fisheries and Food the role of the high level group of member states, established in early October 2009 at the special meeting of EU Agriculture Ministers in Brussels held to discuss the dairy market; and if he will make a statement on the matter. [36058/09]
The Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): I propose to take Questions Nos. 65, 68 and 71 together.
At a special meeting of EU Agriculture Ministers on 5 of October there was a full discussion on the need for measures to manage the dairy market in the period up to quota abolition and beyond. I welcomed the proposal of the Commissioner to establish a High Level Group of representatives to consider a range of options for the future, now that it is accepted by Member States, that quotas will be phased out by 2015, a position that once and for all brings clarity around the issue of milk quotas. The position of the French Minister for agriculture and others in accepting that quotas would end and in calling for an alternative regulatory framework was significant in bringing about this clarity. The newly established High Level Group will address a range of issues in this context.
In specific terms, the High level Group will examine medium term and long term ways of stabilising dairy farmer’s incomes and improving market transparency. In its work towards delivering a comprehensive report by June 2010, the Group will examine means through which contractual arrangements in the supply chain can contribute to the highest possible returns for producers, giving them more bargaining power in the process and providing a buffer against extremes of market volatility such as those that are being experienced at present. It will also examine existing market instruments and consider what other means, including a dairy futures market, could contribute to the objective of price stability in the longer term.
[123]As the first meeting of the High Level group took place earlier this week I was anxious to establish a Consultative Group so that I could hear the views of the experts here on issues emerging at the High Level Group. In particular the ideas, knowledge and expert opinion of the Irish dairy sector will provide key perspectives on how the sector needs to be developed and supported into the future. The consultative group will be representative of all the stakeholders and I will be asking the IFA, ICMSA, ICSA, Macra Na Feirme, ICOS, IDIA and IDB to nominate representatives. In addition, Teagasc and academic interest will be invited to participate and these invitations are in the process of being issued.
66. Deputy Emmet Stagg asked the Minister for Agriculture, Fisheries and Food the training and support initiatives which have been afforded to the 70 new dairy farmers allocated milk quotas in October 2009. [36230/09]
The Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): When I announced recently the allocation of milk quota to 70 new entrants to dairying, I indicated that all of the recipients would have to attend training courses facilitated by Teagasc. That body is currently considering the structure and delivery of the required training, bearing in mind that all successful applicants have until 1 April 2011 to commence milk production.
Question No. 67 answered with Question No. 57.
Question No. 68 answered with Question No. 65.
69. Deputy Christy O’Sullivan asked the Minister for Agriculture, Fisheries and Food the progress made during the recent series of meetings with fishermen on the reform of the Common Fisheries Policy; and if he will make a statement on the matter. [36070/09]
The Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): As you are aware, the European Commission published a Green Paper last April on the reform of the Common Fisheries Policy. The launch of this paper was aimed at stimulating broad public debate on the future of the CFP ahead of the next review of the Policy, scheduled for 2012. The Policy, which was first put in place in 1983, has been subject to reviews every 10 years. The most recent review was in 2002.
I along with Minister of State Tony Killeen strongly believe, that this review must be informed by the views of our stakeholders, so that a clear and robust Irish position can be developed. Following the publication of the Green Paper, Minister of State Killeen appointed Dr. Noel Cawley to oversee the consultation process with Irish stakeholders. Dr. Cawley is actively seeking the views of all stakeholders in order to ensure that the Irish submission on the reform of the CFP is as detailed and comprehensive as possible.
To discuss the reform of the CFP directly with the fishermen themselves, Minister of State Killeen along with Dr Cawley, attended a series of meetings around the country at the end of August. Minister of State Killeen talked with fishermen about what changes they would like to see made to the CFP, and he listened closely to their views as they are best placed to understand the current Policy’s problems and shortcomings. In addition to these efforts, the Federation of Irish Fishermen (FIF) has undertaken a process to develop its position on the matter. The result of its deliberations will feed into Dr Cawley’s work programme and the formation of Ireland’s position on the review.
[124]The FIF held a conference on the CFP review on Friday, 9 October, at the Radisson Hotel, Dublin Airport. At this seminar a large gathering of fishermen from all around the country listened to contributions from a broad range of experienced experts in the field of fisheries. Further meetings involving stakeholders, including processors, environmental NGOs and the aquaculture sector are planned during the next couple of weeks. The outcome of these meetings will be compiled by Dr Cawley into a formal report and this will inform Ireland’s national position during the CFP review. All Member States, including Ireland, have been invited to submit written comments by 31 December 2009 and Minister of State Killeen is satisfied that the consultation process put in place will ensure that the views of all stakeholders are fully understood and we are in a position to meet this deadline.
Question No. 70 answered with Question No. 61.
Question No. 71 answered with Question No. 65.
72. Deputy Mary Alexandra White asked the Minister for Agriculture, Fisheries and Food the outcome of the recent review of the organic farming scheme; and if he will make a statement on the matter. [36076/09]
The Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): My colleague Minister of State Sargent recently announced the outcome of the review of the organic farming scheme under which support is paid to farmers in the sector.
It is my intention, subject to the outcome of the Estimates process and a review of the budgetary situation for 2010, to reopen the organic farming scheme from 1 January 2010. The scheme will be reopened with revised conditions and will include two main changes.
Firstly there will be a requirement for applicants to have completed an approved training course. The courses have been organised by Teagasc and will start in the week commencing 20 October. A farmer who has previously participated in the organic farming supplementary measure of the rural environment protection scheme will be exempted from the requirement to complete this training course. Secondly, as part of the application process, all applicants will have to submit a detailed five-year business plan. The submission of this plan will help my officials to assess the level of farming activity and sustainability of the business of each individual application and, if the scheme is over-subscribed, to identify those that are most likely to deliver increased organic output nationally.
73. Deputy Jim O’Keeffe asked the Minister for Agriculture, Fisheries and Food the number of additional applications for the farm retirement scheme that have been admitted or are being considered for admission to the scheme following his recent announcement; and if he will make a statement on the matter. [36132/09]
The Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): The closing date for receipt of applications is 30 October 2009 and no decisions on applications will be taken until after that date.
74. Deputy Joan Burton asked the Minister for Agriculture, Fisheries and Food the amount of money which was sanctioned by the European Union to upskill and retrain workers in the Mallow and Carlow areas in view of the overhaul of the EU sugar regime; the funding which made available; if that fund was drawn down from the EU; if so, the amount of that fund that has been spent; and if he will make a statement on the matter. [36204/09]
The Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): The temporary scheme for the restructuring of the sugar industry, introduced as part of the reform of the EU sugar regime in 2006, provided for payment of EU restructuring aid to three groups of stakeholders: sugar processors, beet growers and specialized beet machinery contractors. The overall amount of aid available was calculated at the rate of €730 per tonne of sugar quota renounced, which in Ireland’s case was approximately 200,000 tonnes.
To draw down the aid, the sugar processor was required to prepare and implement a restructuring plan, which had to include an environmental plan covering factory demolition and site remediation and a social plan detailing ‘the actions planned with respect to re-training, redeployment and early retirement’ of the factory workers concerned. The EU regulations did not specify how the aid was to be allocated amongst the various costs in the restructuring plan.
The restructuring plan submitted by Greencore duly incorporated a social plan in respect of the former Mallow factory workers. The plan did not apply to the former employees of the Carlow factory, which had already closed prior to the reform of the EU sugar regime. In addition to early retirement and redundancy packages, the social plan included support services for the departing Mallow workers such as career counselling, financial advice including pension advice, pre-retirement programmes for those aged over 50 years, job-seeking support and ‘Start your own business’ programmes. In accordance with the EU regulations, the restructuring aid for the Irish beneficiaries was drawn down in full and paid in two instalments in 2007 and 2008.
Question No. 75 answered with Question No. 39.
76. Deputy David Stanton asked the Minister for Agriculture, Fisheries and Food the representations he has received from farming organisations and groups with a view to having the slurry spreading deadline extended; and if he will make a statement on the matter. [36184/09]
93. Deputy David Stanton asked the Minister for Agriculture, Fisheries and Food the discussions he has had with the Department of the Environment, Heritage and Local Government with regard to extending the slurry spreading deadline in 2009; and if he will make a statement on the matter. [36183/09]
The Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): I propose to take Questions Nos. 76 and 93 together.
Officials from my Department and the Department of Environment Heritage and Local Government have had detailed discussions and I have also discussed this matter with my colleague Mr John Gormley T.D., Minister for Environment, Heritage and Local Government. I have had representations from farm bodies and a number of farmers requesting an extension to the spreading period for slurry.
[126]The prohibited period for the spreading of slurry commences on 15th October in all parts of the country as required by the Nitrates Regulations (SI No. 101 of 2009). These Regulations are a matter in the first instance for my colleague the Minister for Environment, Heritage and Local Government. The planned review of Ireland’s Nitrates Action Programme in 2010 will provide an opportunity for all stakeholders to put forward their views on the question of the most appropriate dates for the prohibited periods for spreading fertilisers that are a mandatory requirement under the EU Nitrates Directive. Any adjustment to Ireland’s Nitrates Action Programme will require the agreement of the EU Commission.
77. Deputy Andrew Doyle asked the Minister for Agriculture, Fisheries and Food his views on the impact the recommendations of the Special Group on Public Service Numbers and Expenditure Programme to abolish Bord Bia and Bord Iascaigh Mhara would have on the future of the agri-food and fisheries sector; and if he will make a statement on the matter. [36196/09]
The Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): The Report of the Special Group on Public Service Numbers and expenditure Programmes is being considered in the context of determining the budgetary framework and in the preparation of the 2010 Estimate for my Department. In that context my deliberations on the 2010 Estimates will, of course, take full account of the effect of the proposals in the report, including those relating to An Bord Bia and BIM, on the agri food and fisheries sector. I can assure the deputy that these deliberations will be informed by a continued commitment to the development of a strong, sustainable, export focused agri food and fisheries sector.
78. Deputy P. J. Sheehan asked the Minister for Agriculture, Fisheries and Food the number, nature and amount of planting area applications made to his Department for forestry grants at each stage in 2009; if he will compare this with the previous five years; and if he will make a statement on the matter. [36198/09]
The Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): The number of applications received in my Department for approval to plant forestry in each of the past 5 years is set out in Table 1.
| Forms | Hectares | |
|---|---|---|
| 2004 | 2,815 | 30,158 |
| 2005 | 2,361 | 23,300 |
| 2006 | 2,169 | 18,687 |
| 2007 | 1,251 | 13,718 |
| 2008 | 1,303 | 13,844 |
| 2009 to date | 1,630 | 13,193 |
The number of applications received in my Department for payment of establishment grants for planting forestry in each of the past 5 years is set out in Table 2.
| Forms | Hectares | |
|---|---|---|
| 2004 | 1,039 | 9,425 |
| 2005 | 1,413 | 11,808 |
| 2006 | 955 | 5,691 |
| 2007 | 871 | 6,237 |
| 2008 | 778 | 6,145 |
| 2009 to date | 654 | 5,498 |
79. Deputy Ciarán Lynch asked the Minister for Agriculture, Fisheries and Food the total cost to date of the pig dioxin scare in December 2008. [36210/09]
The Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): The payments to date as a result of the dioxin incident total €102.4 million. This comprises the following: Primary Processor: €30m, Secondary Processors: €39m Producers: €23.6m, Renderers and other costs: €9.8m
80. Deputy Máire Hoctor asked the Minister for Agriculture, Fisheries and Food the details of the new targeted scheme for on-farm investment, announced as part of a revised rural development programme; and if he will make a statement on the matter. [36064/09]
The Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): As part of proposals in relation to the use of unspent Single Payment Scheme and Modulation funds and the European Economic Recovery Programme, I have announced that, in the case of on-farm investment schemes, I intend to introduce support for a number of specific categories of farmers which shall be focused on supporting productive investment.
The measures shall include: a scheme for young dairy farmers to make the necessary investment to adjust to expanding dairy opportunities and promote the operation of cost-effective commercial operations by young farmers; aid for sheep fencing and handling facilities to assist sheep farmers in reducing labour input in a vulnerable sector; aid for young trained farmers for water harvesting and conservation equipment, which will reduce water costs on farms; animal welfare grants (a) for pig producers to assist in the conversion to loose housing for sows; and (b) for poultry producers to assist in the conversion to enriched cages, free range or barn systems. The measures will be strictly cash-limited and are currently being considered by the EU Commission. The measures will be introduced as soon as relevant EU approval has been obtained and following agreement on the specific cash-limits available for each measure.
81. Deputy Phil Hogan asked the Minister for Agriculture, Fisheries and Food his plans to publish legislation banning fur farming; and if he will make a statement on the matter. [35936/09]
The Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): The renewed Programme for Government includes a commitment to phase out fur farming over three years. [128] I have asked my officials to examine what legislative changes are necessary to give effect to that commitment.
82. Deputy Denis Naughten asked the Minister for Agriculture, Fisheries and Food the steps he is taking to support a live cattle trade to Britain; the numbers exported to date in 2009; the corresponding figure for 2008; and if he will make a statement on the matter. [36081/09]
The Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): The live export trade is an important element of Ireland’s meat and livestock industry providing a complement to the beef trade. The following table sets out the exports of live cattle in 2009 to the United Kingdom and the corresponding figures for 2008.
| Destination | 1 January – 4 October 2009 | 1 January – 4 October 2008 |
|---|---|---|
| Northern Ireland | 61,491 | 21,535 |
| Great Britain | 7,180 | 1,171 |
| United Kingdom | 68,671 | 22,706 |
Bord Bia continues to work closely with the industry in monitoring and developing emerging opportunities for Irish livestock in the United Kingdom, the Continent and international markets. This includes contact with leading retailers in Britain to establish their interest in cattle born in Ireland and finished in Britain.
83. Deputy Ruairí Quinn asked the Minister for Agriculture, Fisheries and Food the status of proceedings aimed at bringing down the costs of disposing of fallen animals. [36222/09]
The Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): The disposal of fallen animals is subject to EU Regulations, notably Regulation (EC) No 1774 of 2002. These regulations require that animals which die on-farm must generally be disposed of through approved knackeries and rendering plants. My Department’s contribution to the Fallen Animals Scheme ceased with effect from 14th April 2009. This was as a result of budgetary constraints and also reflects the greatly reduced incidence of BSE in this country. However I have continued to provide financial support for the collection of certain fallen animals, in particular bovines over 48 months of age, for sampling, as required under the ongoing national BSE surveillance programme.
With the ending of the Fallen Animals Scheme the cost of collection and rendering for animals not covered by the new scheme became a matter for negotiation between the individual collectors/rendering plants and their customers. My Department is continuing, within the boundaries of legal requirements, to make every effort to facilitate measures to maximise flexibility and enable reduction of costs in the rendering/collection system. This includes allowing cross border trade, permitting direct delivery by farmers to authorised plants, considering removal of some costs currently built into the rendering process and encouraging indigenous use of meat and bone meal (MBM) for energy purposes.
Approval conditions have been drawn up to facilitate the collection of fallen animals direct from farms by approved rendering plants, including arrangements to provide for TSE testing of these animals where required. Discussions are also ongoing between my Department and [129]farmer and hunt representatives, to consider the feasibility of extending the network of plants authorised to act as knackeries.
Question No. 84 answered with Question No. 45.
85. Deputy Pat Rabbitte asked the Minister for Agriculture, Fisheries and Food if he will respond to reports that the relevant authorities in Northern Ireland were not adequately informed of the actions taken by his Department following the crisis surrounding dioxin in pig meat in December 2008. [36224/09]
The Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): On 4 December my Department issued a Press Release to indicate that it was investigating in close collaboration with the F.S.A.I., the source of a contaminant in animal feed. This followed the disclosure of non dioxin like marker PCBs in pork fat. The F.S.A.I. contacted the Food Standards Agency in the U.K. about the matter that day. The first indication that Northern Ireland was implicated in receiving possibly contaminated feed was on the evening of Thursday 4th December 2008. On Friday 5th December my Department provided full details to the Department of Agriculture and Rural Development, Northern Ireland.
When dioxins were identified on 6 December and the F.S.A.I. required a full recall of all Irish pork and bacon products from pigs slaughtered in Ireland since 1st September 2008 the information was immediately put in the public domain by way of a press announcement. The FSAI arranged to issue an alert notification on the Rapid Alert System for Food and Feed (RASFF) to advise the EU Commission and all EU Member States. There was also direct contact between the FSAI and the Food Standards Agency in London and in Belfast that evening.
Question No. 86 answered with Question No. 49.
Question No. 87 answered with Question No. 30.
88. Deputy Mary Upton asked the Minister for Agriculture, Fisheries and Food if his attention has been drawn to the report by an organisation (details supplied) which states that the REP scheme contributes more to the Exchequer than it costs; and if this report will inform his approach to the REP scheme in future. [36234/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): I am aware of the statement by the organisation concerned. However, REPS 4 was closed to new applicants in July against the background of the situation in the public finances, the resources available to my Department and the substantial increase, over the past year, in the number of REPS participants. A record 16,718 applications were received up to the closing date of 15 May for 2009, and further applications which were received up to the time of closure will be processed as applications for 2010. Payments due to REPS farmers for 2009 will be the highest ever and all participants already in REPS will continue to receive annual payments until their current contracts run their course
I plan to introduce a new agri-environment scheme in 2010 which will reduce compliance costs to participants and which will provide a menu of targeted actions from which farmers may choose. In August 2009 I invited submissions on the proposed new scheme and the report referred to was included in a submission received for the named organisation. Funding for the [130]new scheme will include the additional modulation funds which I ensured will be retained for the benefit of Irish farmers in the negotiations on the CAP “Health Check”. It will also include additional matching Exchequer funding. The details of the scheme are in the process of being finalised and will require the approval of the European Commission, which has already received an outline of our proposals.
89. Deputy Michael D. Higgins asked the Minister for Agriculture, Fisheries and Food the number of inspections to be carried out under the single payment scheme in 2009; the number carried out to date in 2009; and the number of penalties imposed. [36208/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): In the context of delivering the Single Payment Scheme, my Department is required to carry out on-the-spot inspections on a number of farms covering such issues as eligibility under the Scheme, compliance with EU legislation in the areas of the environment, food safety, animal health and welfare and plant health and ensuring that the farm is maintained in good agricultural and environmental condition. A minimum of 5% of Single Payment Scheme applicants is required to be inspected under the eligibility rule. These checks are carried out to verify that the actual area claimed in the Single Payment Scheme application form corresponds to the area held by the farmer and to ensure there are no overlapping claims, or duplicate claims. Up to two thirds of these inspections are carried out without a farm visit and using the technique of remote sensing.
The rate of on-farm inspection required for cross-compliance is 1% of those farmers to whom the Statutory Management Requirements or GAEC apply. Under the relevant Regulations 5% of producers must be inspected under the Bovine Animal Identification and Registration requirements together with 3% of sheep producers covering 5% of the National flock. For the 2009 Scheme, there were a total of 11,391 farms selected for inspection out of some 130,000 who have applied for the Single Payment Scheme — over 100,000 of these are also applicants under the Disadvantaged Areas Scheme. The value of both schemes to Irish farmers is some €1.5bn. Over 3,000 of these inspections are carried out without a farm visit using the technique of remote sensing.
All inspections relating to land eligibility have been carried out and are being processed for payment. Currently, 1,063 applicants will be paid on a lesser amount than they claimed as a result of a minor area discrepancy while a further 233 have recorded penalties as the discrepancy was greater than 3% of the area found. Inspections relating to Cross Compliance are still ongoing but with 3,792 completed there are currently 404 penalties in place.
90. Deputy Róisín Shortall asked the Minister for Agriculture, Fisheries and Food the attempts he has made to convey Irish concerns on the importing of Brazilian beef to the European Commission. [36228/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): In December 2007 the Commission proposed more severe restrictions on Brazilian imports to the Community. This arose from the findings of EU Food and Veterinary Office (FVO) during its various missions to Brazil. These restrictions were recommended by the Standing Committee on the Food Chain & Animal Health (SCoFCAH) and proposed that imports be limited to a small [131]number of farms that could meet the criteria laid down by the FVO. Ireland could not support proposal and argued that a total ban on beef imports from Brazil was justified in view of the FVO’s findings. Other Member States however supported the Commission’s proposal which was duly adopted Commission Decision No. 2008/61/EC.
Following this there have been a number of FVO missions which continue to report shortcomings in the Brazilian system. When these reports were discussed at SCoFCAH meetings other Member States continued to support the Commission’s approach of restricting imports as opposed to applying a total ban.
Question No. 91 answered with Question No. 51.
Question No. 92 answered with Question No. 49.
Question No. 93 answered with Question No. 76.
94. Deputy Róisín Shortall asked the Minister for Agriculture, Fisheries and Food the specific irregularities relating to cross-compliance measures that led to his Department being fined €715,000. [36229/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): There are no specific irregularities relating to cross compliance measures that led to my Department being fined by the European Commission. The position is that, following a preventative audit by the European Commission in 2005 examining the introduction of the Cross Compliance system in Ireland, the auditors were not satisfied that all farmers selected for an on-the-spot check under the cross-compliance rules were examined for all Statutory Management Requirements (SMRs) applicable to them.
For 2005, my Department had selected farmers for cross-compliance inspection on the basis of risk pertaining to each individual SMR. We thus selected 1% of farmers for inspection under each individual SMR while the Commission contended that we should have selected 1% of farmers and inspected them for compliance with each individual SMR applicable to them. The Commission argued that this system was required under the Regulations in force at that time.
The Commission originally proposed a disallowance of €1.769m. My Department maintained that the system of risk analysis adopted by Ireland was at least as effective as the system proposed by the Commission. Following detailed bilateral discussions and a meeting with the Conciliation Body the Commission reduced the disallowance to €0.715m. It should be noted that the EU regulations governing selection of the control sample for cross-compliance were amended in 2007 so as to allow a risk selection similar to that adopted by Ireland in 2005.
95. Deputy Leo Varadkar asked the Tánaiste and Minister for Enterprise, Trade and Employment the costs incurred by her constituency office and the constituency offices of the Ministers of State at her Department in respect of leaflet design, production, delivery and other related costs in 2007, 2008 and to date in 2009; and if she will make a statement on the matter. [36379/09]
Tánaiste and Minister for Enterprise, Trade and Employment (Deputy Mary Coughlan): My Department has not incurred any costs associated with the design, production, delivery etc of [132]leaflets by my constituency office or by the constituency offices of the Ministers of State at my Department or by the constituency offices of any of our predecessors in 2007, 2008 or to date in 2009.
96. Deputy Leo Varadkar asked the Tánaiste and Minister for Enterprise, Trade and Employment the total cost of foreign travel, including flights, accommodation, food, subsistence, travel and other incidental costs, incurred by her and the Ministers of State at her Department in 2007, 2008 and to date in 2009; and if she will make a statement on the matter. [36393/09]
Tánaiste and Minister for Enterprise, Trade and Employment (Deputy Mary Coughlan): The total cost related to foreign travel undertaken by all Ministers and Ministers of State at my Department from January 2007 to the end of September 2009 was as follows:
| Year | € |
|---|---|
| 2007 | 146,980.61 |
| 2008 | 184,369.39 |
| 2009 (to end-Sept.) | 43,907.26 |
These figures include all identifiable costs related to flights, accommodation, subsistence, travel and other incidental costs which were paid for by my Department. They include costs related to accompanying staff of the relevant Minister or Minister of State’s office. Where Ministerial foreign travel was organised by an agency of the Department, certain costs related to the Ministerial delegation were borne directly by the relevant agency.
97. Deputy Brendan Kenneally asked the Tánaiste and Minister for Enterprise, Trade and Employment the grants provided to Industrial Development Authority related projects nationally per year over the past five years; and if she will make a statement on the matter. [36421/09]
Tánaiste and Minister for Enterprise, Trade and Employment (Deputy Mary Coughlan): Over the five-year period, 2004 to 2008, IDA Ireland paid out a total of €391,008,000 in grants to its client companies. Details of these payments are set out in the attached tabular statement:
| Year | 2004 | 2005 | 2006 | 2007 | 2008 |
|---|---|---|---|---|---|
| Amount | € | € | € | € | € |
| Total | 62,579,000 | 82,949,000 | 92,391,000 | 75,088,000 | 78,001,000 |
98. Deputy Brendan Kenneally asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of jobs created by Enterprise Ireland in Waterford per year over the past five years; and if she will make a statement on the matter. [36426/09]
[133]Tánaiste and Minister for Enterprise, Trade and Employment (Deputy Mary Coughlan): The Forfás Annual Employment Survey reports on job gains in companies that are supported by Enterprise Ireland. Data is compiled on an annualised basis and is aggregated at county level. Figures for 2009 will not be available until early 2010. The number of jobs created by Enterprise Ireland supported companies in Waterford in each of the 5 year period 2004-2008 are shown on the attached tabular statement:
| Waterford | 2004 | 2005 | 2006 | 2007 | 2008 |
|---|---|---|---|---|---|
| Number | 299 | 162 | 409 | 763 | 167 |
99. Deputy Brendan Kenneally asked the Tánaiste and Minister for Enterprise, Trade and Employment the grants provided to Enterprise Ireland related projects in Waterford per year over the past five years; and if she will make a statement on the matter. [36427/09]
Tánaiste and Minister for Enterprise, Trade and Employment (Deputy Mary Coughlan): Enterprise Ireland offers a comprehensive range of services, including both financial and non-financial supports, to companies with a business strategy that encompasses the elements required for business success. Enterprise Ireland provides a wide variety of supports and development programmes to client companies, including the Community Enterprise Centre scheme, Centres of Excellence, the Enterprise Platform Programme, Enterprise START Programme and Innovation Vouchers.
Enterprise Ireland assesses applications for financial assistance according to a number of criteria, including cost benefit modelling, commercial evaluation and technical assessment in order to ensure value for money to the exchequer. Enterprise Ireland has supported a variety of projects in Waterford over the last five years through both direct and indirect grant aid to companies, Community Enterprise Centres and Educational Institutes in Waterford. The value of grant payments to Enterprise Ireland supported companies in County Waterford in each year of the 5 year period 2005-2009 are shown on the attached tabular statement.
100. Deputy Brendan Kenneally asked the Tánaiste and Minister for Enterprise, Trade and Employment the grants provided to Industrial Development Authority related projects in Waterford per year over the past five years; and if she will make a statement on the matter. [36428/09]
Tánaiste and Minister for Enterprise, Trade and Employment (Deputy Mary Coughlan): Over the five-year period, 2004 to 2008, IDA Ireland paid out a total of €21.5m in grants to its client companies in Co. Waterford. Details of these payments, on a year-by-year basis, are set out in the attached tabular statement.
| Year | 2004 | 2005 | 2006 | 2007 | 2008 |
|---|---|---|---|---|---|
| Amount | €1,554,000 | €3,337,000 | €4,643,000 | €7,265,000 | €4,740,000 |
101. Deputy Brendan Kenneally asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of jobs created by Enterprise Ireland here per year over the past five years; and if she will make a statement on the matter. [36430/09]
Tánaiste and Minister for Enterprise, Trade and Employment (Deputy Mary Coughlan): The Forfás Annual Employment Survey reports on job gains in companies that are supported by Enterprise Ireland. Data is compiled on an annualised basis and is aggregated at county level. Figures for 2009 will not be available until early 2010. The numbers of jobs created by Enterprise Ireland supported companies in each year of the 5 year period 2004-2008 are shown in the tabular statement.
| 2004 | 2005 | 2006 | 2007 | 2008 |
|---|---|---|---|---|
| 12,564 | 14,316 | 15,052 | 15,776 | 10,522 |
102. Deputy Brendan Kenneally asked the Tánaiste and Minister for Enterprise, Trade and Employment the grants provided to Enterprise Ireland related projects nationally per year over the past five years; and if she will make a statement on the matter. [36431/09]
Tánaiste and Minister for Enterprise, Trade and Employment (Deputy Mary Coughlan): Enterprise Ireland offers a comprehensive range of services, including both financial and non-financial supports, to companies with a business strategy that encompasses the elements required for business success. Enterprise Ireland provides a wide variety of supports and development programmes to client companies, including the Community Enterprise Centre scheme, Centres of Excellence, the Enterprise Platform Programme, Enterprise START Programme and Innovation Vouchers.
Enterprise Ireland assesses applications for financial assistance according to a number of criteria, including cost benefit modelling, commercial evaluation and technical assessment in order to ensure value for money to the exchequer.
Direct to business support includes grant and equity payments to companies in areas including R & D, training and broad company development. Third level support involves grants to researchers in the third level sector, support for collaborative R & D and infrastructural investment. These figures do not include supports such as Venture Capital Funding; Infrastructural Payments e.g. Community Enterprise Centres and payments to other third parties e.g. City and County Enterprise Boards. The annual breakdown of payments by Enterprise Ireland in direct financial supports to industry and third level institutions in each year of the 5 year period 2004-2008 are shown in the tabular statement.
103. Deputy Brendan Kenneally asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of jobs created by the Industrial Development Authority here each year over the past five years; and if she will make a statement on the matter. [36456/09]
Tánaiste and Minister for Enterprise, Trade and Employment (Deputy Mary Coughlan): The Forfás Annual Employment Survey reports on job gains in companies that are supported by IDA Ireland. Data are compiled on an annualised basis and are aggregated at county level. Over the five-year period, 2004 to 2008, a total of 53,679 new jobs were created in IDA supported companies. The number of jobs created in each of those years is shown in the tabular statement.
| Year | 2004 | 2005 | 2006 | 2007 | 2008 |
|---|---|---|---|---|---|
| New Jobs Created | 10,959 | 12,041 | 11,866 | 9,976 | 8,837 |
104. Deputy Leo Varadkar asked the Tánaiste and Minister for Enterprise, Trade and Employment the status of the review process on employee representation as outlined in point 9.3 of the Transitional Agreement 2008 to 2009; and if she will make a statement on the matter. [36496/09]
106. Deputy Leo Varadkar asked the Tánaiste and Minister for Enterprise, Trade and Employment her proposals to outlaw the victimisation of employees for involvement in trade union activity with regard to item 9.4 of the Transitional Agreement for 2008 to 2009; and if she will make a statement on the matter. [36498/09]
Minister of State at the Department of Enterprise, Trade and Employment (Deputy Dara Calleary): I propose to take Questions Nos. 104 and 106 together.
The law and practice relating to the status of collective bargaining in this country, and the arrangements to support it and address issues of victimisation and discrimination against those who seek to promote it, were matters which were discussed at length during the social partnership discussions which led to the conclusion of the Towards 2016 Review and Transitional Agreement 2008-2009. The Towards 2016 Review and Transitional Agreement 2008-2009 (paras 9.1 — 9.3) provides for the establishment of a review process which would consider the legal and other steps necessary to enable the employee representation mechanisms that had [136]been established under previous agreements — and in legislation — to operate as they had been intended.
The Towards 2016 Review and Transitional Agreement 2008-2009 (para 9.4) also commits the Government to bringing forward legislative proposals to prohibit the victimisation of trade union members and to prohibit the incentivisation of persons not to be members of a trade union.
With a view to progressing work on both commitments, a Review Group on Employee Representation — chaired by the Secretary General of the Department of the Taoiseach and on which my Department; the Department of Finance; trade unions; and employers are represented — has been put in place to examine these issues. Informal engagement has taken place between the parties and position papers have been submitted by the employer and trade union representatives on the issues requiring the Group’s consideration.
105. Deputy Leo Varadkar asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of working days lost to her Department as a consequence of trade union leave for 2008; the trade union leave arrangements for staff; and if she will make a statement on the matter. [36497/09]
Tánaiste and Minister for Enterprise, Trade and Employment (Deputy Mary Coughlan): During 2008 staff of my Department availed of 17 days paid trade union leave. The trade union leave arrangements in place in my Department are in accordance with Department of Finance Circular 14/1980 —“Facilities for non full-time representatives of staff associations/unions”.
Question No. 106 answered with Question No. 104.
107. Deputy Leo Varadkar asked the Tánaiste and Minister for Enterprise, Trade and Employment the unions which have been contracted by FÁS with regard to the union-led learning network; the value and duration of each contract; and if she will make a statement on the matter. [36499/09]
Tánaiste and Minister for Enterprise, Trade and Employment (Deputy Mary Coughlan): FÁS has informed me that in September 2007 it awarded a number of contracts under the union learning networks programme. That support was provided under the Strategic Alliances Initiative for projects to train low-skilled workers and to promote life-long learning. This is in line with the provisions of Towards 2016.
These projects provide for the development of a regional infrastructure to recruit, train and support voluntary workplace learning advocates whose job is to then encourage the vocational development of their low skilled colleagues. In this regard, the voluntary workplace learning advocates must identify the training needs of the learner. The voluntary workplace learning advocates are identified mainly, though not exclusively, by local employee committees and in consultation with employers. The voluntary workplace learning advocate generally undertakes 5 days of training in advocacy skills and approaches that leads to a FETAC NFQ Level 5 qualification. Details of the union learning network programmes are set out in the Annex.
The ICTU contract to date has involved the recruitment of 8 Regional Co-ordinators to promote the programme and build relationships with unions and employers. In turn, the recruitment and training of the workplace learning advocates is now gathering momentum and is on [137]target for completion within the deadline. As a direct follow on from the ICTU training of workplace learning advocates, some 1,200 low-skilled learners have already undertaken learning courses to date.
As a result of the SIPTU training of 50 workplace learning advocates the training needs of over 800 low-skilled workers have been assessed to date. A separate contract between FÁS and SIPTU to the value of €1,321,583 provides for the delivery of courses by SIPTU’s IDEAS Training Institute to learners. 350 learners have received training to date.
108. Deputy Leo Varadkar asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of companies availing of the work place innovation fund for each of the past three years; the number of applications refused in each; the reason for refusal; and if she will make a statement on the matter. [36500/09]
Minister of State at the Department of Enterprise, Trade and Employment (Deputy Dara Calleary): The Workplace Innovation Fund (WIF) was introduced in April 2007 to operate over the period 2007-2009. The aim of the Workplace Innovation Fund (WIF) is to support small and medium sized enterprises that are committed to workplace innovation and developing the role of employee participation and involvement as enablers of change and productivity improvements. The fund is administered jointly by Enterprise Ireland and the National Centre for Partnership and Performance. Since April 2007 to date 36 companies have been approved for WIF funding.
| Applied | Approved | Refused | |
|---|---|---|---|
| 2007 | 23 | 22 | 1 |
| 2008 | 14 | 13 | |
| 2009 | 1* | ||
| Total | 37 | 36 | 1 |
The single rejected application was to be reconsidered at a future date pending receipt of additional information, which was not forthcoming.
109. Deputy Leo Varadkar asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of staff members who have been dismissed from her Department in [138]each of the past five years and their grade and reason for dismissal; and if she will make a statement on the matter. [36501/09]
Tánaiste and Minister for Enterprise, Trade and Employment (Deputy Mary Coughlan): Three Civil Servants were dismissed from my Department in the last five years for misconduct. All 3 were dismissed during 2009. Confidentiality concerns preclude me from giving details of the grades of the individuals involved.
110. Deputy Leo Varadkar asked the Tánaiste and Minister for Enterprise, Trade and Employment the reason only 3% of staff in her Department received an unacceptable or needs improvement rating; her views on whether this is an accurate reflection of her Department’s strengths and weakness in terms of personnel; and if she will make a statement on the matter. [36502/09]
111. Deputy Leo Varadkar asked the Tánaiste and Minister for Enterprise, Trade and Employment if she is satisfied with the operation of the performance management development system within her Department; her views on whether under-performance is being tackled and good performance is being acknowledged as stated in the report of the organisation review programme; and if she will make a statement on the matter. [36503/09]
Tánaiste and Minister for Enterprise, Trade and Employment (Deputy Mary Coughlan): I propose to take Questions Nos. 110 and 111 together.
The 3% figure quoted by the Deputy is the result of annual reviews undertaken by managers with almost 1,000 staff in the Department and its offices under the Performance Management Development System, PMDS. The PMDS system does not impose any ideal or targeted distribution of ratings. My Department’s priority is to ensure that PMDS is an effective mechanism for managing performance in the organisation. In that regard, my Department has always enthusiastically embraced the system as a vital tool for managing and developing the performance of staff to enable them to contribute fully to the work of the Department. The report of the Organisational Review Programme, ORP, found that the training and development aspects of PMDS in the Department were good and that staff found the PMDS dialogue a useful process of engagement with their managers. The ORP identified some room for improvement including the need to better address underperformance and poor performance.
New guidelines for managing underperformance have been prepared under the Department’s updated human resources strategy and are almost finalised. Included in the guidelines are objectives for recognising underperformance at an early stage and identifying the underlying causes of such performance; strategies for managing underperformance and supporting managers; and methods for invoking the disciplinary procedures available to managers. In conjunction with the development of these guidelines, the Department has initiated an internal training programme for managers at all levels in managing underperformance, which will begin later this month. The ORP also found that many managers do not sufficiently manage good performance. The Department acknowledges that the use of feedback is important in ensuring that good performance is recognised. It is reviewing the provision of training for all staff in how to make the most effective use of feedback in recognising good performance at all levels of the organisation.
The Department is always proactive in regard to the training and development of staff at every level. From induction training through grade-based development programmes and specific competency development training, the Department is vigilant in ensuring that its staff [139]members are constantly upskilled in order to fulfil their roles while achieving the strategic objectives of the Department.
112. Deputy Leo Varadkar asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on the report of the organisation review programme with respect to her Department; and if she will make a statement on the matter. [36504/09]
Tánaiste and Minister for Enterprise, Trade and Employment (Deputy Mary Coughlan): The Organisational Review Programme, ORP, process is essentially a review mechanism to allow the Government to assess how Departments and Offices of State are performing in terms of capacity to deliver Government policy and service delivery generally. The first phase of the ORP process was launched in 2007 with a review of three Departments, including my Department. Indeed, it was a sign of my Department’s commitment to regularly assessing its performance levels, as well as its keenness to identify areas for further improvement, that it volunteered as one of the first Departments to be reviewed under the ORP process.
The report of the first phase of the ORP, which was published in November 2008, outlined my Department’s strengths and weaknesses by reference to ten attributes, which were grouped under the three components of strategy, managing delivery and evaluation. An action plan was developed by my Department in response to the challenges for the Department outlined in the report. That plan was published with the ORP report. The plan contained 38 action points addressing the common areas of communications, policy analysis, development and evaluation capabilities and leadership, human resources policy, quality customer service, ICT resources, financial management and governance issues. Since the report and action plan were published, an implementation group in my Department has been established to monitor progress on delivering the plan’s individual action points. I am pleased to report that many of them have, at this juncture, been implemented or are well advanced.
As well as reporting to my Department’s management board by the end of the year to outline the overall progress that has been achieved, the group is considering the identification of further measures necessary to continue to meet our organisational challenges into the future, as well as prioritisation of remaining action points in light of the new economic environment in which my Department is operating. Overall, I was heartened by the positive messages contained in the report regarding the ability of my Department, and staff, to deliver on our strategic objectives. I welcomed its recommendations as a vehicle to drive further enhancements to help its to meet its current and future challenges.
113. Deputy Leo Varadkar asked the Tánaiste and Minister for Enterprise, Trade and Employment the outcome of the assessment carried out on extending the 15 day payment deadline to local authorities and the health and education sectors; and if she will make a statement on the matter. [36505/09]
Tánaiste and Minister for Enterprise, Trade and Employment (Deputy Mary Coughlan): The application of the 15-day payment period requirement to local authorities and the health and education sectors remains under review. Organisations within the sector are committed to meeting their current payment periods. Suppliers experiencing difficulties in securing timely payments should, in the first instance, contact the relevant section of the organisation with which the contract was agreed. My Department has made an arrangement through the auspices of the Credit Supply Clearing Group, whereby representative bodies of the SME sector can [140]bring to the attention of the Clearing Group individual cases of late payments in these sectors which are adversely impacting on the cash-flow or working capital of SMEs. Under this arrangement, my Department will have such late payment practices examined by the parent Department involved and reported back on them to my Department.
114. Deputy Leo Varadkar asked the Tánaiste and Minister for Enterprise, Trade and Employment the progress regarding the mainstreaming of the knowledge economy skills passport; and if she will make a statement on the matter. [36506/09]
Tánaiste and Minister for Enterprise, Trade and Employment (Deputy Mary Coughlan): The Knowledge Economy Skills Passport programme is an innovative initiative of the National College of Ireland. It is developed in collaboration with a consortium of software companies to deliver the core skills and competencies needed for the knowledge economy. The programme is funded by FÁS. It is a blended learning course in the areas of technology and business. It comprises an e-learning on-line component and face-to-face tutorial sessions. It leads to a HETAC award at Level 6. To date, some 400 students have participated in the pilot Knowledge Economy Skills Passport programme, which was subsequently evaluated and relevant software licensing issues resolved. FÁS intends to make the programme available through its training channels and to other training providers.
115. Deputy Leo Varadkar asked the Tánaiste and Minister for Enterprise, Trade and Employment the position regarding her reply to Question No. 69 of 10 December 2008, in view of the changed circumstances; and if she will make a statement on the matter. [36507/09]
Minister of State at the Department of Enterprise, Trade and Employment (Deputy Dara Calleary): Further to the notification my Department received in late 2008 from the company in question, notifying its intention to effect collective redundancies at the company, applications were subsequently submitted by the company seeking a 60% rebate of the statutory redundancy amounts paid out to employees. The applications have been examined to see if they meet the eligibility criteria set down in the Redundancy Payments Acts 1967 to 2007. Arising from this examination, additional information was sought from the company. My Department awaits a response from the company in relation to the issues raised. It is departmental policy not to comment publicly on any particular company’s applications for redundancy payments. No more recent notification of further collective redundancies at the company has been received in the Department.
116. Deputy Leo Varadkar asked the Tánaiste and Minister for Enterprise, Trade and Employment the position regarding her reply to Parliamentary Question No. 109 of 23 June 2009; and if she will make a statement on the matter. [36508/09]
Tánaiste and Minister for Enterprise, Trade and Employment (Deputy Mary Coughlan): My Department is charged with leading the cross-governmental drive to reduce administrative burdens on business. We are doing this in a prioritised way, drawing on the experiences of other Member States who are also involved in this international effort. Departments are currently identifying the “Information Obligations” contained in their legislation that are likely to be causing the biggest burdens for business. When the top Information Obligations have been [141]identified, these priorities will be measured. Following this, simplification plans will be developed, detailing how the reductions are to be carried out.
Work is well advanced in my Department in measuring information obligations in company law, employment law and health and safety law. My Department has identified 34 priority information obligations across these three areas, details of which follow this reply. The priorities were identified through consultation with business groups and experts and by comparison with the results of the UK measurement exercise. It is envisaged that measurement of the 34 Information Obligations will be completed by the end of 2009. Other Departments are listing and prioritising the Information Obligations contained in the legislation under their responsibility. Measurement of priorities identified across all sectors of government will be carried out during 2010. When these measurements have been concluded, simplification plans will be developed. Following this, simplification will be carried out during 2011 and 2012.
117. Deputy Leo Varadkar asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of companies which have applied for funding from the temporary job subsidy scheme; the number of jobs that will be subsidised; the number of applications accepted; the number rejected; the amount paid out to date; and if she will make a statement on the matter. [36523/09]
Tánaiste and Minister for Enterprise, Trade and Employment (Deputy Mary Coughlan): The temporary Employment Subsidy Scheme applies to vulnerable but viable companies in the manufacturing or internationally traded service sectors. It will involve the payment of a subsidy to firms to retain an agreed level of jobs. After the deadline of the 4 September last, Enterprise Ireland, which is managing the scheme, received 561 eligible applications seeking employment subsidies for 9,130 jobs. Enterprise Ireland is considering these applications. As the first payments to successful applicants are due to commence in December of this year, no payments have been made to date.
118. Deputy Leo Varadkar asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of companies which have applied for funding from the enterprise stabilisation fund; the number of applications accepted; the number rejected; the amount paid out to date; and if she will make a statement on the matter. [36524/09]
Tánaiste and Minister for Enterprise, Trade and Employment (Deputy Mary Coughlan): The Government has approved a total of €100 million for the Enterprise Stabilisation Fund for 2009 and 2010. Some €50 million has been included in the Estimate of my Department for this purpose in 2009. Under the scheme, Enterprise Ireland may provide up to €500,000 to viable companies with robust business models that are facing difficulties as a result of the current economic environment. The fund supplies direct financial support to internationally trading enterprises that are investing in cost reduction or other measures to gain sales in overseas markets. Enterprise Ireland has approved approximately €44.5 million for 101 projects, of which €26 million has been paid to applicants to date. Enquiries have also been received from a further 100 companies. However, these enquiries have not as yet progressed to formal applications.
To date, ten projects have not been successful and alternative options have been reviewed with the respective companies. Eligible applicants are assessed by Enterprise Ireland based on business plans that demonstrate the potential long-term viability of the company and itsexport growth potential. The level of funding is determined based on the specific needs of each company, taking into account the specifics of the business plan, the level of internal and external funding available to the company and the potential benefit to the Irish economy.
119. Deputy Leo Varadkar asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of people currently participating in the short-time training programme and the work placement programme; and if she will make a statement on the matter. [36525/09]
Tánaiste and Minister for Enterprise, Trade and Employment (Deputy Mary Coughlan): Following extensive discussions with interested companies and employees in each FÁS region [157]who wish to avail of the short-time training programme, training courses with FETAC certification are being developed and tailored by FÁS to meet local needs. It is not anticipated that individuals on systematic short-time working will take up a place on their training course until next month at the earliest. In relation to the work placement programme, 52 individuals have started their work experience, 38 in Stream 1 (graduates) and 14 in Stream 2. Some 1,684 people have expressed an interest in the programme to date — 937 graduates have expressed an interest in participating in Stream 1, while 747 people have expressed an interest in Stream 2. FÁS currently has 403 posts available under this programme, 283 for Stream 1 (graduates) and 120 for Stream 2. FÁS is continuing to promote and co-ordinate the programme at both provider and participant level.
120. Deputy Arthur Morgan asked the Tánaiste and Minister for Enterprise, Trade and Employment the entrepreneurial activity to date in 2009; the entrepreneurial activity for each of the past ten years; and if she will make a statement on the matter. [36537/09]
121. Deputy Arthur Morgan asked the Tánaiste and Minister for Enterprise, Trade and Employment the breakdown of entrepreneurial activity in each county to date in 2009; the breakdown of entrepreneurial activity in each county for each of the past ten years; and if she will make a statement on the matter. [36538/09]
122. Deputy Arthur Morgan asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of entrepreneurial programmes which are run here; the number of entrepreneurial programmes which have been run in each of the past ten years; and if she will make a statement on the matter. [36539/09]
123. Deputy Arthur Morgan asked the Tánaiste and Minister for Enterprise, Trade and Employment the agencies and bodies which run entrepreneurial programmes here; and if she will make a statement on the matter. [36540/09]
Tánaiste and Minister for Enterprise, Trade and Employment (Deputy Mary Coughlan): I propose to take Questions Nos. 120 to 123, inclusive, together.
The statistical information sought by the Deputy in relation to entrepreneurial programmes and entrepreneurial activity is not compiled or available in the format sought for the periods mentioned. Details in relation to the range of initiatives available in Ireland to support entrepreneurship were published by Forfás in October 2007. The report, “Mapping of Initiatives to Support Entrepreneurship in Ireland”, is available on the Forfás website at www.forfas.ie/media/forfas071023_ entrepreneurship_ initiatives.pdf. The report sets out an overview of entrepreneurship initiatives available in Ireland, many of which have been in operation for a number of years, including the Enterprise Education Initiatives in the primary, secondary and third level sectors; the Entrepreneurship Award Schemes supported by the education system and the business community; the initiatives for start-ups and training; as well as initiatives specifically for women and ethnic minorities administered by Government Departments and public sector bodies such as the Department of Social and Family Affairs; the Department of Justice, Equality and Law Reform; the 35 county and city enterprise boards; Enterprise Ireland; Shannon Development; FÁS; Údarás na Gaeltachta; the county enterprise funds; Teagasc; the business innovation centres; LEADER and the area partnerships. The majority of these initiatives continue to be provided.
[158]The Irish Global Entrepreneurship Monitor report provides details of entrepreneurial activity and sets these findings in an international setting. The report has been published
since 2001. The GEM report for 2008 is available on the Forfás website at www.forfas.ie/media/gem _report _2008.pdf. The report confirms that Ireland is an entrepreneurial nation and to the fore in Europe in its rate of early stage entrepreneurial activity
(7.6%) and its rate of established entrepreneurs (9%) among the adult population. With an average of 2,800 individuals setting up new businesses every month, entrepreneurial activity in Ireland remains high. A breakdown for the period 2001 to 2008 is set out in the Table 1 that follows this reply.
Section 2 and Tables 2.1 to 2.10 of the 2008 Irish Global Entrepreneurship Monitor report set out details on entrepreneurship in the regions of Ireland. Entrepreneurial activity can also be considered in the context of company formations and new VAT registrations for businesses. Table 2 that follows this reply provides details of new company registrations. These figures cannot give a comprehensive overview of all new entrepreneurial activity, as entrepreneurs who do not use a limited company structure would not be included. Table 3 that follows this reply provides details of new VAT registrations. These figures cannot give a comprehensive overview of all new entrepreneurial activity as registration for VAT applies to specific turnover thresholds and entrepreneurs below such thresholds would not be required to register. The activities and programmes of the various State development agencies in providing services to enterprises can also be seen as an indication of entrepreneurial activity. The significant allocations made through my Department to such agencies, to assist new and developing enterprises, is evidence of the strength of our entrepreneurial spirit in Ireland.
I wish to explain some of the terms used in Table 1 that follows this reply. “Nascent entrepreneurs” are those actively planning a new venture. Such entrepreneurs have done something during the previous 12 months to help start a new business that he or she will at least part own. Activities such as organising the start-up team, looking for equipment, saving money for the start-up or writing a business plan would be considered as active commitments to starting a business. The rate given in the table for nascent entrepreneurs is the rate for those in the adult population aged 18-64 years inclusive. “New firm entrepreneurs” are entrepreneurs who at least part own and manage a new business that is between four and 42 months old and have not paid salaries for longer than this period. These new ventures are in the first 42 months after the new venture has been set up. The rate given in the table for new firm entrepreneurs is the rate for those in the adult population aged 18-64 years inclusive. The figures for “early stage entrepreneurs” refers to the total rate of early stage entrepreneurial activity among the adult population aged 18-64 years inclusive.
In some instances, this rate is less than the combined percentages for nascent and new firm entrepreneurs. This is because, in circumstances where respondents qualify as both nascent and new firm entrepreneurs, they are counted only once. In addition to those who are currently involved in the early-stages of a business, there are many individuals who have set up businesses they have continued to own and manage for a longer time. These individuals are referred to in the tables as “established business owners”, using an index which captures the percentage of individuals in a population that have set up businesses that they have continued to own and manage and which has paid wages or salaries for more than 42 months. The rate given in the table for established business owners is the rate for those in the adult population aged 18-64 years inclusive.
| Year | New VAT Registrations |
|---|---|
| 2000 | 19,061 |
| 2001 | 25,472 |
| 2002 | 25,014 |
| 2003 | 28,501 |
| 2004 | 31,937 |
| 2005 | 35,842 |
| 2006 | 39,827 |
| 2007 | 33,757 |
| 2008 | 25,727 |
124. Deputy Phil Hogan asked the Tánaiste and Minister for Enterprise, Trade and Employment the financial and grant assistance paid from EU and national sources in respect of a [160]factory (details supplied) in County Kilkenny; and if she will make a statement on the matter. [36552/09]
Tánaiste and Minister for Enterprise, Trade and Employment (Deputy Mary Coughlan): The company in question has not been grant aided by Enterprise Ireland in respect of its operation in Freshford, County Kilkenny. The Department of Agriculture, Fisheries and Food has informed me that no other national or EU grant was paid to this company in respect of its plant at Freshford, County Kilkenny. I will set out the facilities operated by the company and the assistance received in respect of them. A company operation (sheep processing) in Camolin, County Wexford has been paid approximately €86,000 in grants by Enterprise Ireland since 2003. The company has a second lamb processing plant at Navan, County Meath. Since 2003, no grant moneys have been provided towards this facility. A beef processing facility in Bunclody, County Wexford has been paid grants of approximately €74,000 by Enterprise Ireland since 2003. The company’s operations at Bunclody and Camolin were approved grants of €4.507 million and €3.544 million respectively under the Beef and Sheepmeat Fund announced by the Minister for Agriculture, Fisheries and Food in May 2009.
125. Deputy Leo Varadkar asked the Tánaiste and Minister for Enterprise, Trade and Employment the cost of official domestic travel including all transport costs, accommodation, meals and other incidentals incurred by herself and the Ministers of State at her Department in 2007, 2008 and to date in 2009; and if she will make a statement on the matter. [36563/09]
Tánaiste and Minister for Enterprise, Trade and Employment (Deputy Mary Coughlan): The total cost of official domestic travel incurred by all Ministers and Ministers of State at my Department from January 2007 to the end of September 2009 was as follows: 2007, €86,607.41; 2008, €121,543.63; and 2009 (to the end of September), €76,016.33. These figures include all identifiable costs incurred by the Ministers and Ministers of State which were paid for by my Department in relation to official domestic travel. Certain other travel-related costs, such as the provision of a car by the State for the Minister, are not borne by my Department.
126. Deputy Finian McGrath asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will support a matter (detail supplied) in Dublin 9. [36583/09]
Minister of State at the Department of Enterprise, Trade and Employment (Deputy Dara Calleary): The Redundancy Payments Section of my Department received statutory lump sum applications for the company concerned in July 2009. I understand that the claims are being processed. Subject to the necessary information being provided in support of the claims, I expect payment to issue to the claimants within the next two or three weeks. Currently, the average time it takes to process rebate applications from employers filed on-line is seven months while claims submitted by post are taking eight months. The Redundancy Payments Section of my Department is processing applications filed on-line from March 2009 and those submitted by post from February 2009.
In respect of lump sum payments paid directly to employees in instances where employers are unable to pay the statutory redundancy entitlements, the redundancy payments section is, in general, processing claims dating from June 2009. Given the unprecedented increase in redundancy payment claims lodged with my Department since late 2008, it has proved impossible to maintain the customer service targets that previously obtained. The scale of the chal[161]lenge is evident from the statistics that show incoming redundancy claims with a cumulative figure for the first nine months of 2009 at 60,785 an increase of 122% on the same period last year (27,373). This figure of 60,785 exceeds the claims lodged for the full year 2008 (40,607). Indeed, 2008 itself was an exceptional year compared to earlier years, when claims received were of the order of 25,000.
Efforts continue to be made by the Tánaiste and I to deliver more acceptable turnaround processing times for redundancy payments given the difficulties that this gives rise to for both individual employees and the business community. Measures already taken include the reassignment of 26.7 additional staff (full-time equivalents) from other areas of the Department to the redundancy payments area since early 2009 with an ongoing review of trends and demands — the current number of staff serving in the redundancy payments section in terms of full-time equivalents is 53.8; the prioritisation of the Department’s overtime budget towards staff in the redundancy payments section to tackle the backlog outside normal hours; the establishment of a special call handling facility to deal with the huge volume of telephone calls from people and businesses who are naturally concerned about their payments, using the facilities and co-operation of the National Employment Rights Authority — this centre has received an average of 12,500 calls per month this year with an estimated 60% relating to redundancy payments; the provision of better quality information relating to current processing times on the Department’s website; and an engagement with the Revenue Commissioners to facilitate the offset of redundancy rebate payments by employers against outstanding tax liabilities with the Revenue Commissioners. The Tánaiste and I will continue to monitor closely the impact of these changes against the continuing influx of redundancy claims and will consider further measures to deal with the situation if current measures prove to be inadequate.
127. Deputy Leo Varadkar asked the Minister for Finance if he will amend the rules for construction tenders by public bodies and local authorities in order that small building contracts of less than €5.25 million can be awarded to any one of a short-list of approved contractors and in the case of civil engineering projects up to a limit of €15 million to apply an open tender process subject to firms meeting agreed minimum standards; and if he will make a statement on the matter. [36586/09]
Minister for Finance (Deputy Brian Lenihan): National guidelines dealing with the procurement of public works projects below the EU financial threshold can be found in the “Procurement Process for Works Contractors, GN 2.3” of the Capital Works Management Framework on my Department’s website, www.constructionprocurement.gov.ie. This document provides guidance on the short listing of approved contractors (i.e. the restricted procedure) which is permitted as a standard option for public works contracts valued at less than €5.15 million (EU threshold). The use of short listing can also be used as a standard option for projects above the EU thresholds under Irish and European law.
In relation to allowing all firms that meet the minimum suitability standards participate in tender competitions for public works contracts, including civil engineering contracts, the guidance also allows this approach to be used by contracting authorities as a standard option. Further information on the use of suitability assessment methods for the works contracts is available in the Capital Works Management Framework published on my Department’s website mentioned above. In addition, in light of pressures facing SMEs, my Department, in consultation with the Government contracts committee for construction, is finalising guidance to public authorities on the determination of appropriate levels of financial capacity of tenderers relevant to particular contracts.
128. Deputy Joe McHugh asked the Minister for Finance the amounts of money that have been spent annually by the national lottery in the years 2000 to 2006; the percentages of these annual amounts that have been spent annually by the national lottery on local projects in the same years in tabular form; and if he will make a statement on the matter. [36366/09]
Minister for Finance (Deputy Brian Lenihan): The surplus generated by the National Lottery is surrendered to the Exchequer and is allocated to a number of Departments in the context of the annual Estimates process. The attached copies of Appendix 1 of the Revised Estimates for Public Services for each of the years 2000 to 2004 show the allocation of National Lottery funding in each of these years, by Department. The annual amounts are 2000, €152 million; 2001, €167 million; 2002, €220 million; 2003, €201 million; and 2004, €236 million.
Since 2005, the total allocation for subheads which had formerly been funded entirely from the proceeds of the National Lottery has exceeded the funds available from the National Lottery. Therefore, the subheads in Appendix 1 for subsequent years include both National Lottery and Exchequer funding. In 2005, approximately 64% of total expenditure on these subheads, or €211 million, came from the National Lottery, while in 2006 the corresponding figure was 50% or €200 million. What might be regarded as local projects are mainly funded under the headings “Supports for Community and Voluntary Sector” and “Local and Community Development Programmes” under the Department of Community, Rural and Gaeltacht Affairs and the “Sports Capital Programme” under the Department of Arts, Sport and Tourism. On this basis, the percentage of National Lottery funding spent annually on local projects is as follows: 2000, 32%; 2001, 39%; 2002, 42%; 2003, 44%; 2004, 47%; 2005, 43%; and 2006, 35%.
129. Deputy Leo Varadkar asked the Minister for Finance the costs incurred by his constituency office and the constituency offices of the Ministers of State at his Department for leaflet design, production, delivery and other related costs in 2007, 2008 and to date in 2009; and if he will make a statement on the matter. [36381/09]
Minister for Finance (Deputy Brian Lenihan): My Department has not incurred any costs associated with leaflet, design production, delivery and other related costs in respect of my own constituency office in the period since I was appointed Minister for Finance in May 2008 to date in 2009. This is also the case in respect of my predecessor for the period 2007 to May 2008. I have been informed by the Office of Public Works that they have not incurred any costs associated with leaflet, design, production, delivery and other related costs in respect of the constituency office of the Minister of State, Deputy Mansergh, in the period since he was appointed. This is also the case in respect of his predecessors for the period 2007 to May 2008.
130. Deputy Leo Varadkar asked the Minister for Finance the total cost of foreign travel, including flights, accommodation, food, subsistence, travel and other incidental costs, incurred by the Minister and Ministers of State at his Department in 2007, 2008 and to date in 2009; and if he will make a statement on the matter. [36395/09]
Minister for Finance (Deputy Brian Lenihan): In the time available, it has not been possible to provide the information requested by the Deputy. Every effort is being made to collate the information and I will reply directly to the Deputy when this process is completed.
131. Deputy Michael McGrath asked the Minister for Finance if he will respond to correspondence (details supplied). [36407/09]
Minister of State at the Department of Finance (Deputy Martin Mansergh): The Commissioners of Public Works are progressing the matter and will issue a response shortly.
132. Deputy Richard Bruton asked the Minister for Finance the estimate of the annual savings in 2010 to 2013, over and above those secured through the suspension of the national pay agreement, of cuts in public sector pay (detail supplied). [36415/09]
Minister for Finance (Deputy Brian Lenihan): I take it that the Deputy’s question assumes that the pay cuts mentioned at the various thresholds would apply to the entire salary and not just to the part of salary which exceeds the relevant threshold. On this basis, it is estimated that the annual savings would be as follows: Option A, €800 million; Option B, €650 million; and Option C, €550 million. It should be noted that the numbers at different salary bands vary from time to time depending on matters such as incremental salary movement, retirements etc.
133. Deputy Róisín Shortall asked the Minister for Finance when an application for a tax refund by a person (details supplied) in Dublin 9 will be decided; and the reason for the delay in processing this application. [36439/09]
[176]Minister for Finance (Deputy Brian Lenihan): I am advised by the Revenue Commissioners that no application for a tax refund has been received to date from this person.
134. Deputy Mary Upton asked the Minister for Finance if he will ensure that the proposed National Asset Management Agency legislation provides for a whistleblowers’ charter to cover staff within NAMA, the covered institutions, debtors, advisers and service providers in order to ensure these parties all operate to highest professional and ethical standards; and if he will make a statement on the matter. [36469/09]
Minister for Finance (Deputy Brian Lenihan): There are substantial provisions in the NAMA Bill to facilitate the disclosure of information and protect those involved. Section 199 allows for the appropriate disclosure of confidential information, by a person acting in good faith, to law enforcement authorities. Section 200 requires NAMA to inform the enforcement authorities where NAMA suspects that a participating institution may have committed a criminal offence or contravened certain specified laws. The Bill also provides for the publication of Codes of Practice by NAMA within 3 months of its establishment governing various matters. The Codes will include a code on the conduct of officers in NAMA. Furthermore, section 43 of the Bill provides that NAMA should seek to ensure that its expert advisors and service providers shall operate to the highest standards of integrity, fairness and professionalism.
135. Deputy Leo Varadkar asked the Minister for Finance the cost of creating a new tax band for all income between €36,400 and €40,000 for a single person and the equivalent for a couple of 30%, of 33% and of 35%; and if he will make a statement on the matter. [36479/09]
Minister for Finance (Deputy Brian Lenihan): It is assumed that the threshold for the proposed new tax bands mentioned by the Deputy would not alter the existing standard rate band structure applying to single and widowed persons, to lone parents and married couples. I am advised by the Revenue Commissioners that the estimated full year cost to the Exchequer, estimated by reference to 2010 incomes, of the introduction of these new rates of 30%, 33% and 35% could be of the order of €175 million, €125 million and €95 million respectively, depending on how each band is structured. Given the current band structures, there would be major issues to be worked out as to how such a new rate could be integrated in practice into the current system and how this would affect the relative position of different types of income earners. The figures are estimates from the Revenue tax-forecasting model using actual data for the year 2007 adjusted as necessary for income and employment trends for the year 2010. They are therefore provisional and likely to be revised.
136. Deputy Leo Varadkar asked the Minister for Finance the cost of creating a new tax band for all income between €36,400 and €44,000 for a single person and the equivalent for a couple of 30%, of 33% and of 35%; and if he will make a statement on the matter. [36480/09]
Minister for Finance (Deputy Brian Lenihan): It is assumed that the threshold for the proposed new tax bands mentioned by the Deputy would not alter the existing standard rate band structure applying to single and widowed persons, to lone parents and married couples. I am advised by the Revenue Commissioners that the estimated full year cost to the Exchequer, estimated by reference to 2010 incomes, of the introduction of these new rates of 30%, 33% and 35% could be of the order of €335 million, €240 million and €180 million respectively, depending on how each band is structured. Given the current band structures, there would be [177]major issues to be worked out as to how such a new rate could be integrated in practice into the current system and how this would affect the relative position of different types of income earners. The figures are estimates from the Revenue tax-forecasting model using actual data for the year 2007 adjusted as necessary for income and employment trends for the year 2010. They are therefore provisional and likely to be revised.
137. Deputy Leo Varadkar asked the Minister for Finance his views on the common pool for recruitment to promotional positions in local authorities, the Health Service Executive and vocational educational committees amongst others; if he will provide more promotional positions to open competition; and if he will make a statement on the matter. [36481/09]
Minister for Finance (Deputy Brian Lenihan): The common recruitment system for Clerical/Administrative grades has been in place for over twenty years. The system provides for the filling of certain posts (at Grade IV to VII level) by competition confined to employees of Health Boards, Local Authorities, VECs, Institutes of Technology and certain other health and local government agencies (known as the “Common Recruitment Pool”). Issues in relation to the common recruitment pool were addressed in the Social Partnership Agreement “Sustaining Progress” when the social partners agreed to conduct a cross-sectoral review of recruitment issues pertinent to the grades concerned including the issue of greater accessibility and the introduction of a graduate entry level.
The recommendations of the Review Group established to review the issues were reflected in the discussions and agreement reached on the successor social partnership agreement “Towards 2016” concluded by the social partners. The “Towards 2016” Agreement provides for the implementation of arrangements whereby 20% of the posts at Grades V to VII would be filled by open competition, specialist posts would continue to be filled by open competition and to provide for recruitment and entry at graduate level. Under the “Towards 2016” Agreement the implementation of the provisions regarding the common recruitment pool is a matter for the relevant sectors where the pool operates.
138. Deputy Leo Varadkar asked the Minister for Finance the extent to which the National Asset Management Agency will take into account planning permissions attached to undeveloped sites in valuing assets that it will buy from the banks; and if he will make a statement on the matter. [36493/09]
Minister for Finance (Deputy Brian Lenihan): Section 74 of the NAMA Bill provides that in determining the long-term economic value of a bank asset, one of the factors NAMA will consider will be the market value of the property. Section 77 provides that in making valuation regulations the Minister may have regard to land and planning considerations that may exert an influence on the future value of the asset concerned. Clearly, if planning permission is attached to a site this will affect the determination of its value.
139. Deputy Leo Varadkar asked the Minister for Finance the cost of a wine, beer and spirit licence for retailers, publicans and restaurateurs for each year since 1997 to date in 2009; and if he will make a statement on the matter. [36494/09]
[178]Minister for Finance (Deputy Brian Lenihan): The rates of excise duty on liquor licences that were in force in 1997 are set out in column A of the table below. There has been no increase in the meantime in the rate of duty that applies to retailers’ on-licences for the sale of spirits (that is, the standard pub licences).
The rates of duty for retailers’ off-licences for the sale of spirits, beer and wine were increased by the Finance Act 2008 and the Finance (No. 2) Act 2008: the revised rates are detailed in columns B and C, respectively, of the table. The rates of duty for retailers’ on-licences for the sale of beer and wine were also increased by the Finance (No. 2) Act 2008, and the revised rates are shown in column C of the table. The rate of duty that applies in respect of the granting of a special restaurant licence is unchanged since 1997. The duty payable in respect of the renewal of such a licence was increased by the Finance (No. 2) Act 2008. The revised rate is shown in column C of the table.
140. Deputy Leo Varadkar asked the Minister for Finance when he expects to receive the report of the review body on higher remuneration in the public sector; when he will act on it; if he will carry out a similar exercise for other cohorts of public sector employees; and if he will make a statement on the matter. [36495/09]
Minister for Finance (Deputy Brian Lenihan): The report of the Review Body on Higher Remuneration in the Public Sector has been received by me and is under consideration at present. I have no plans to carry out a similar exercise for other public service groups.
141. Deputy Leo Varadkar asked the Minister for Finance the cost of creating a new tax band for all income between €36,400 and €50,000 for a single person and the equivalent for a couple of 30%, of 33% and of 35%; and if he will make a statement on the matter. [36529/09]
Minister for Finance (Deputy Brian Lenihan): It is assumed that the threshold for the proposed new tax bands mentioned by the Deputy would not alter the existing standard rate band structure applying to single and widowed persons, to lone parents and married couples. I am advised by the Revenue Commissioners that the estimated full year cost to the Exchequer, estimated by reference to 2010 incomes, of the introduction of these new rates of 30%, 33% and 35% could be of the order of €515 million, €375 million and €280 million respectively, depending on how each band is structured. Given the current band structures, there would be major issues to be worked out as to how such a new rate could be integrated in practice into the current system and how this would affect the relative position of different types of income earners. The figures are estimates from the Revenue tax-forecasting model using actual data for the year 2007 adjusted as necessary for income and employment trends for the year 2010. They are therefore provisional and likely to be revised.
142. Deputy Seán Sherlock asked the Minister for Finance the timeline for phase two of the flood alleviation plan on the Munster Blackwater at Fermoy, County Cork; and if he will make a statement on the matter. [36547/09]
Minister of State at the Department of Finance (Deputy Martin Mansergh): The Munster Blackwater (Fermoy South East and South West) Drainage Scheme Detailed Design phase is expected to start within the next month, and to be completed by mid-2010. The tender process for the procurement of the civil works contractor for the Scheme will take place shortly thereafter. It is anticipated that the construction phase will commence late next year or early in 2011.
143. Deputy Leo Varadkar asked the Minister for Finance the cost of official domestic travel including all transport costs, accommodation, meals and other incidentals incurred by himself and the Ministers of State at his Department in 2007, 2008 and to date in 2009; and if he will make a statement on the matter. [36565/09]
Minister for Finance (Deputy Brian Lenihan): There were no direct costs incurred by my Department for official domestic travel by me or my predecessor in 2007 and 2008. In 2009, the only cost to date for official domestic travel was €140.97 for air travel. As the Deputy is aware, a ministerial car is provided for my use, the cost of which is borne by the Department of Justice. The cost of the ministerial air transport service, which was used on two occasions for official domestic travel in the same period, is borne by the Department of Defence. Details of costs of official domestic travel undertaken by the Minister of State could not be compiled in the time available and will be forwarded directly to the Deputy.
144. Deputy Leo Varadkar asked the Minister for Finance if he will estimate the yield from taxing capital income on the same basis as earned income. [36587/09]
Minister for Finance (Deputy Brian Lenihan): It is assumed that the Deputy has in mind the replacement of the charge to capital gains tax on capital gains with income tax. I am informed [180]by the Revenue Commissioners that sufficient basic data are not available on which to base a precise estimate of the yield to the Exchequer from this proposal. However, on the basis of aggregated data and an assumed average marginal rate of income tax the estimated net full year yield is estimated to be in the region of €150 million, assuming no significant behavioural change on the part of the affected taxpayers. As CGT is very dependent on individual behaviour, any change in rate may not produce a corresponding increase or decrease in tax yield. In current economic conditions any estimate of additional yield must be treated with caution and, in such circumstances, increasing the rate could lead to a reduction in yield from the tax.
145. Deputy Leo Varadkar asked the Minister for Finance if he will estimate the yield from applying income tax to all off-course winnings, bets, prizes and the national lottery. [36588/09]
146. Deputy Leo Varadkar asked the Minister for Finance if he will estimate the yield from applying a tax of 20% on all off-course winnings, bets and prizes including the national lottery. [36589/09]
Minister for Finance (Deputy Brian Lenihan): I propose to take Questions Nos. 145 and 146 together.
Basic data on prizes is not available on which to base an accurate estimate of the yield to the Exchequer from these proposals. It is also difficult to understand how a tax of 20% or income tax could be applied to the value of bets placed; such bets are already subject to betting duty. However, in relation to the taxation of winnings from off-course betting, some rough estimates can be made.
The base to which betting duty applies is approximately €3 billion per annum and assuming a payout rate of 85% would lead to gross winnings of around €2.55 billion. A direct tax of 20% would produce a nominal full year gross yield of approximately €500 million. The application of income tax to such winnings, assuming an average marginal rate of tax, would produce a nominal full year gross yield of the order of €850 million. On a similar basis, the nominal full year gross yield from a direct tax of 20% on National Lottery prizes would be of the order of €90 million and from the application of income tax, assuming an average marginal rate of tax, would be approximately €150 million.
However, it must be stressed that these estimates assume no significant behavioural change on the part of the affected taxpayers and therefore may not be an accurate measure of the yield that would actually transpire in reality. Moreover, the application of income tax to these amounts could also lead to deductions for allowable losses, personal allowances and other relevant costs, thereby reducing the level of income that would actually be subject to tax. This would be a particular concern with respect to betting and gambling generally.
147. Deputy Leo Varadkar asked the Minister for Finance if he will estimate the yield from a 20% income levy applied to all earned income excluding social welfare; and the additional revenue from applying a 40% income levy on income above €80,000. [36590/09]
148. Deputy Leo Varadkar asked the Minister for Finance his estimate of the yield from a 3% income levy applied to all personal income including social welfare with no threshold or ceiling; and if he will make a statement on the matter. [36591/09]
Minister for Finance (Deputy Brian Lenihan): I propose to take Questions Nos. 147 and 148 together.
[181]I am advised by the Revenue Commissioners that the estimated full year yield to the Exchequer, estimated by reference to 2010 incomes, from applying a 20% income levy to all earned income, excluding social welfare income, is estimated to be of the order of €14 billion. On the same basis, the additional full year yield from applying a 40% income levy on income above €80,000 (i.e. an extra 20% on income above €80,000) would be approximately €1.6 billion. The full year yield, estimated by reference to 2010 incomes, from a 3% income levy applied to all personal income, excluding social welfare income and with no threshold or ceiling, is estimated to be of the order of €2.3billion.
Payments from the Department of Social and Family Affairs comprise means-tested payments and non-means tested payments. In accordance with the 2009 estimates, the total cost of these payments in 2009 would be in the region of €20 billion and 3% of this figure is €600 million. Apart from those related to Social Welfare payments, the figures are estimates from the Revenue tax-forecasting model using actual data for the year 2007 adjusted as necessary for income and employment trends for the year 2010. They are therefore provisional and likely to be revised.
149. Deputy James Bannon asked the Minister for Health and Children the funding which is available to assist a person (details supplied) in County Longford to meet the cost of the continued running of a Montessori school; and if she will make a statement on the matter. [36470/09]
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 National Childcare Investment Programme 2006-2010 (NCIP) as well as the new free Pre-School year of Early Childhood Care and Education (ECCE) scheme, which is being introduced from January next. The NCIP provides capital grant funding for the development and refurbishment of childcare services as well as support funding for community based childcare services, under the Community Childcare Subvention Scheme (CCSS), to enable them to charge reduced childcare fees to disadvantaged and low income working parents. Capital expenditure over the course of the NCIP is expected to amount to approximately €190 million and create over 25,000 additional childcare places. I regret to advise the Deputy that, due to the economic turndown, the capital programme closed to new applicants in April of this year.
The new ECCE scheme will allow qualifying children to avail of a free pre-school place in the year before they commence primary school. In January 2010, the scheme is open to private and community based pre-school services which are notified to the Health Service Executive (HSE) or registered with the Irish Montessori Educational Board (IMEB). Services which choose to participate in the scheme, will receive grant funding from my Office based on a capitation fee of €2,450 per annum for each qualifying child. In return, the service will be required to provide appropriate programme based activities as part of the free pre-school year. Full details of the scheme, including the terms and conditions which will apply, are available on my Office’s website at www.omcya.ie.
Following the announcement of the scheme in April of this year, my Office wrote to pre-school services operating in the State, inviting them to apply in respect of the period January to August 2010. Where a service did not apply to enter the scheme in January 2010, but wishes to do so from September 2010, it will have an opportunity to apply in early 2010.
150. Deputy Phil Hogan asked the Minister for Health and Children her plans to provide an [182]additional dermatologist for the south-east region, as was recommended in November 2003 by Comhairle na nOspidéal; and if she will make a statement on the matter. [36367/09]
Minister for Health and Children (Deputy Mary Harney): One of the guiding principles of the Comhairle na nOspidéal’s report of the Committee on Dermatology Services is that services should be equitable and patient centred with a strong emphasis on regional self-sufficiency and collaboration between primary and secondary care. This is in line with the Government commitment to ensuring quality health services, delivered efficiently and effectively. Ensuring patient safety is paramount, so that people can have confidence in the services and that the best possible patient outcomes are achieved.
The HSE recognises that dermatology services in the HSE South East require further development. At present there is one consultant dermatologist working in the South East region. The dermatology service includes in-patient care where required; day cases and out-patient consultations. Out-reach clinics are provided in Wexford, Kilkenny and Clonmel. In Waterford Regional Hospital, the dermatology services include a range of facilities including out-patient clinics, cryotherapy, minor surgery and nurse-led phototherapy services. The HSE has identified the provision of a second consultant dermatology post among its priorities for development. This year I allocated funding to the HSE for demographic service pressures, and the HSE decided to prioritise posts in vascular surgery and orthopaedics in the South East. I am pleased to say that these posts were approved and are now being progressed.
The HSE is faced with difficult choices in delivering its services within the resources available. It will continue to keep the scope for further developments in dermatology services under consideration bearing in mind the funds it has available. In line with the National Service Plan 2009 and its Transformation Programme, the HSE will be reviewing the current configuration of all hospitals in the South Eastern Hospital Group.
151. Deputy Leo Varadkar asked the Minister for Health and Children the costs incurred by her constituency office and the constituency offices of the Ministers of State at her Department in respect of leaflet design, production, delivery and other related costs in 2007, 2008 and to date in 2009; and if she will make a statement on the matter. [36383/09]
Minister for Health and Children (Deputy Mary Harney): During the years 2007, 2008 and to date in 2009 no costs have been incurred for leaflet design, production,delivery or otherwise in respect of my constituency office or the constituency offices of the Ministers of State at my Department.
152. Deputy Leo Varadkar asked the Minister for Health and Children the total cost of foreign travel, including flights, accommodation, food, subsistence, travel and other incidental costs, incurred by the Minister and Ministers of State at her Department in 2007, 2008 and to date in 2009; and if she will make a statement on the matter. [36397/09]
Minister for Health and Children (Deputy Mary Harney): The information requested is being collated in my Department and will be forwarded directly to the Deputy as soon as possible.
153. Deputy Seán Sherlock asked the Minister for Health and Children if she will ensure [183]that the consultation appointment for a person (details supplied) in County Cork will not be changed; and if she will make a statement on the matter. [36404/09]
Minister for Health and Children (Deputy Mary Harney): As this is a service matter, it has been referred to the HSE for direct reply.
154. Deputy Richard Bruton asked the Minister for Health and Children if applications submitted for the fair deal nursing home support scheme will be backdated to 27 October 2009 if they are eligible. [36413/09]
Minister of State at the Department of the Health and Children (Deputy Áine Brady): The legislation provides that anyone in an approved private nursing home immediately prior to the 27th October who applies for and receives State support under the Nursing Homes Support Scheme will have their support backdated to that date (27th October).
155. Deputy Richard Bruton asked the Minister for Health and Children if she has guidelines governing the fitness of a person to sign a consent which avoids a court procedure under the fair deal scheme. [36414/09]
Minister of State at the Department of the Health and Children (Deputy Áine Brady): I understand the Deputy’s question to refer to a person’s capacity to apply for the Nursing Homes Support Scheme. It is a well established common law principle that individuals must be presumed to have capacity until the contrary is proven. The new Nursing Homes Support Scheme Act 2009 provides, for the first time, for an explicit statutory statement of this common law presumption. In so doing, the Act is in keeping with the recommendations of the Law Reform Commission’s Report on Vulnerable Adults and the Law: it seeks to respect the dignity and autonomy of applicants to the maximum extent possible while also promoting legal certainty in relation to the common law principle of the presumption of capacity.
This principle of the presumption of capacity forms the basis for dealing with all applications under the scheme. It also constitutes the starting point for assessing capacity under section 21 of the Act in the context of applications for the appointment of care representatives. Finally, under the Act, the administration of the scheme, and preparation of any guidelines in respect of its administration, is the responsibility of the HSE. Guidelines may be prepared by the HSE and must be approved by the Minister for Health and Children.
156. Deputy Seán Sherlock asked the Minister for Health and Children the status of an application for optical benefit in respect of a person (details supplied) in County Cork; and if she will make a statement on the matter. [36436/09]
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.
157. Deputy Denis Naughten asked the Minister for Health and Children the meat suppliers in the Health Service Executive west; the duration and value of their contracts; the meat products involved; and if she will make a statement on the matter. [36452/09]
[184]Minister of State at the Department of Health and Children (Deputy Trevor Sargent): The information requested is being provided by the Health Service Executive and will be forwarded to the Deputy directly.
158. Deputy Denis Naughten asked the Minister for Health and Children, further to Parliamentary Question No. 487 of 16 September 2009, when repayments will be made in the western region; the timetable for the completion of this process and the reclaim procedure for the next of kin; the individuals dealing with the cases in each Health Service Executive region; and if she will make a statement on the matter. [36453/09]
Minister for Health and Children (Deputy Mary Harney): The first payments of interest retained on invested Patient Private Property funds by the HSE have now been made to clients. The task of calculating and processing retained interest payments will re-commence during November 2009, when payments for the remainder of HSE South will commence. Payments to clients resident in the western region will commence most probably in early 2010.
The HSE will where possible make payments of retained interest to the Patients’ Private Property accounts of clients. If such accounts are not currently being operated, the HSE will seek to identify the present whereabouts of these clients, or their representatives, so that these funds may be transferred directly. The task of distributing retained interest will be managed by the PPPA Central Unit in Tullamore, Co. Offaly in co-operation with relevant staff at each local Care Centre, where relevant client records are retained.
159. Deputy James Bannon asked the Minister for Health and Children the position regarding an appointment for orthodontic treatment in respect of a person (details supplied) in County Longford; and if she will make a statement on the matter. [36472/09]
Minister for Health and Children (Deputy Mary Harney): As this is a service matter it has been referred to the HSE for direct reply.
160. Deputy James Bannon asked the Minister for Health and Children the course of action a person (details supplied) in County Westmeath should take; and if she will make a statement on the matter. [36474/09]
Minister for Health and Children (Deputy Mary Harney): As this is a service matter it has been referred to the HSE for direct reply.
161. Deputy Leo Varadkar asked the Minister for Health and Children her views on the common pool for recruitment to promotional positions in the Health Service Executive among others; if she will provide more promotional positions to open competition; and if she will make a statement on the matter. [36477/09]
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.
162. Deputy Caoimhghín Ó Caoláin asked the Minister for Health and Children if the Health Service Executive has received written confirmation that all statutory requirements relating to [185]fire safety and building control have been complied with in homes for children within the care system; the details of homes which have not provided this confirmation; the number of children who have been admitted to these homes since the date the HSE requested confirmation; and if she will make a statement on the matter. [36514/09]
Minister of State at the Department of Health and Children (Deputy Barry Andrews): As this is a service matter it has been referred to the HSE for direct reply.
163. Deputy Paul Kehoe asked the Minister for Health and Children the plans for swine influenza vaccination of persons over 65 years of age; and if she will make a statement on the matter. [36527/09]
Minister for Health and Children (Deputy Mary Harney): The Health Service Executive is finalising its plans to offer everyone in the state pandemic vaccine. The vaccine is arriving in small quantities initially and total delivery will be spread over a 12 month period and therefore we need an ordered sequence of giving the vaccine to the people most in need first. The National Immunisation Advisory Committee and the Pandemic Influenza Advisory Committee have advised on the priority groups for vaccination based on the epidemiology of the disease and the availability of vaccine. The advice is that the vaccine should be given to the population in the following order:
Those with chronic illness aged between 6 months and 65 years and all pregnant women of more than 14 weeks gestation
Children between 6 months and 18 years
It is envisaged that Mass Vaccination Teams comprising of doctors, nurses and administration staff will vaccinate the over 65s in specially created clinics.
164. Deputy Michael Ring asked the Minister for Health and Children when a person (details supplied) will receive payment on a health repayment scheme claim in view of the fact that the acceptance form was returned to the Health Service Executive on 16 June 2009: the position regarding this case; and if she will make a statement on the matter. [36549/09]
Minister for Health and Children (Deputy Mary Harney): As this is a service matter it has been referred to the HSE for direct reply.
165. Deputy Leo Varadkar asked the Minister for Health and Children the cost of official domestic travel, including all transport costs, accommodation, meals and other incidentals incurred by herself and the Ministers of State at her Department in 2007, 2008 and to date in 2009; and if she will make a statement on the matter. [36567/09]
Minister for Health and Children (Deputy Mary Harney): The information requested is being collated in my Department and will be forwarded directly to the Deputy as soon as possible.
166. Deputy Ruairí Quinn asked the Minister for Health and Children if the 270 social work posts called for in the recent Ryan report are excluded from the current Health Service Executive recruitment moratorium; if these 270 positions will be filled by hiring new social workers or if existing staff will be redeployed into these positions; when a new recruitment panel for social workers in the HSE will be created; when these 270 posts will begin to be filled; and if she will make a statement on the matter. [36593/09]
Minister for Health and Children (Deputy Mary Harney): As part of the overall approved employment control ceiling for 2009, my Department has provided written confirmation to the HSE that the general moratorium on recruitment, promotion and the payment of acting up allowances does not apply to specific designated grades, including social worker grades. This moratorium exemption provides for vacancies in existing posts in these grades to continue to be filled. Newsocial workers posts may also be created, up to a specified limit of 270, provided that the HSE is satisfied in each case that there is no scope to redeploy an equivalent post from the hospital sector to the primary and community care sector. This moratorium exemption provides for an increase in the number of such posts, in line with Government policy, in order to meet the requirements of integrated care delivery and primary care needs particularly in respect of children at risk, the elderly and those with disabilities. The recruitment and retention of these key front line posts, including social workers, is vital to ensure continued progress in the development of community settings.
Subject to overall parameters set by Government, the Health Service Executive has the responsibility for determining the composition of its staffing complement. In that regard, it is a matter for the Executive to manage and deploy its human resources to best meet the requirements of its Annual Service Plan for the delivery of health and personal social services to the public. With regard to a national recruitment campaign for the appointment of social workers, as this is a service matter it has been referred to the HSE for direct reply.
167. Deputy Bernard J. Durkan asked the Minister for Health and Children when a placement will be arranged for a person (details supplied) in County Kildare; and if she will make a statement on the matter. [36611/09]
Minister of State at the Department of the Health and Children (Deputy Áine Brady): As this is a service matter it has been referred to the Health Service Executive for direct reply.
168. Deputy Bernard J. Durkan asked the Minister for Health and Children the number of domiciliary care allowance applications received in each of the past five years to date; the number granted, refused or pending; and if she will make a statement on the matter. [36618/09]
Minister of State at the Department of Health and Children (Deputy John Moloney): Since 1st April 2009 new applicants for Domiciliary Care Allowance apply to the Department of Social and Family Affairs. Prior to this date application was made to the Health Service Executive. Therefore I have arranged for the Deputy’s question to be referred to the Health Service Executive for direct reply.
169. Deputy Fergus O’Dowd asked the Minister for Health and Children if she will respond to correspondence (details supplied); and if she will make a statement on the matter. [36826/09]
[187]Minister of State at the Department of Health and Children (Deputy John Moloney): The National Disability Strategy is a priority for this Government. This is evidenced by the commitments in the renewed Programme for Government to prioritise the interests of people with a disability and advance the National Disability Strategy.
The Government has demonstrated its commitment to people with disabilities by providing additional funding of €10 million in 2009 for the provision of 125 additional therapy posts (speech and language therapists, occupational therapists, physiotherapists and social workers) in disability and mental health services targeted at children with disabilities of school-going age. These posts have now been allocated to priority areas of need identified by the Health Service Executive, in particular to address gaps in existing services for children with disabilities. A recruitment process is well underway and the majority of these posts will be filled this month with the remainder to be filled in December.
As part of the Government’s Value for Money and Policy Reviews for 2009-2011, a Review of the Efficiency and Effectiveness of Disability Services in Ireland is being undertaken. This in-depth review of Disability Services will assess how well current services for people with disabilities meet their objectives and support the future planning and development of services. The evaluation will focus on the current provision of disability services and explore the way forward for the development of services within a value for money and policy framework. The objectives of the Review are to
Examine disability services in Ireland funded by the HSE, including the statutory and non-statutory sectors.
Deliver a comprehensive analysis of data in relation to services and service providers.
Review current policy objectives and provide policy objectives for future service provision
I expect the review to develop proposals to achieve optimal effectiveness and efficiency with the existing substantial resources expended on health and personal services for people with a disability. A structured consultation process with both service users and service providers will be an integral part of the Review. I met with Inclusion Ireland yesterday following their press conference and encouraged them to start formulating their views and documenting any examples of best practice, efficiencies and effectiveness which should be brought to the attention of the review project team.
170. Deputy Leo Varadkar asked the Minister for Transport the costs incurred by his constituency office and the constituency offices of the Ministers of State at his Department for leaflet design, production, delivery and other related costs in 2007, 2008 and to date in 2009; and if he will make a statement on the matter. [36386/09]
Minister for Transport (Deputy Noel Dempsey): No such costs have been incurred by the Department of Transport.
171. Deputy Leo Varadkar asked the Minister for Transport the total cost of foreign travel, including flights, accommodation, food, subsistence, travel and other incidental costs, incurred by the Minister and Ministers of State at his Department in 2007, 2008 and to date in 2009; and if he will make a statement on the matter. [36400/09]
[188]Minister for Transport (Deputy Noel Dempsey): The information sought by the Deputy is being compiled and will be provided to him as soon as possible.
172. Deputy Finian McGrath asked the Minister for Transport if a matter (details supplied) will be supported. [36451/09]
Minister for Transport (Deputy Noel Dempsey): I refer the Deputy to the answer given yesterday to Dáil Questions Nos. 201 and 202. The position remains unchanged.
173. Deputy Fergus O’Dowd asked the Minister for Transport if has had discussions with Aer Lingus or Aer Lingus board members appointed by the Government regarding the recent job cuts announcements by Aer Lingus; if he was advised in advance of its proposals; if he expressed a view on such proposals either before or after the company announcement; and if he will make a statement on the matter. [36535/09]
Minister for Transport (Deputy Noel Dempsey): The cost-restructuring plan recently announced by Aer Lingus Group plc is entirely a matter for the Board and management of the company. I was not advised by the company of the details of the plan in advance of the announcement to the Stock Exchange. A representative of the company briefed officials from my Department on the details of the plan on 7th October following the company’s announcement to the Stock Exchange.
In an introductory meeting with the new CEO of the company on 17th September, the CEO indicated to me that the company expected to announce its cost-restructuring plan in October and that very hard decisions would have to be taken if the company was to survive in the long term. I outlined clearly to the CEO Government Aviation Policy on connectivity & competitiveness, Regional and Development policy. I would encourage Aer Lingus management and employees to engage constructively in the consultation process, which the company has now commenced, to get the airline through this difficult period and emerge stronger in the future.
174. Deputy Joan Burton asked the Minister for Transport the position with respect to the use of the Dublin Port tunnel by the 41X Dublin Bus service; the applications currently under consideration by him in this respect; and if he will make a statement on the matter. [36541/09]
Minister for Transport (Deputy Noel Dempsey): The initiation or alteration of a bus service by Dublin Bus is subject to compliance with a requirement to give advance notice to my Department and to compliance with the provisions of Section 25 of the Transport Act 1958 concerning competition with licensed private operators. Where proposed services by the Company are deemed to be in competition with services that are the subject of a licence held by a private bus operator issued under the Road Transport Act, 1932, Dublin Bus is required to obtain my consent under section 25 of the Transport Act 1958 before the Company can introduce such services. On 12th June 2008, approval was granted by my Department to Dublin Bus to operate its morning 41X services from Swords to Belfield via the Port Tunnel.
Dublin Bus notified my Department on 8th July 2008 of its proposal to operate the existing 41X services from the City Centre to Swords in the evening via the Port Tunnel. A decision on this proposal has been deferred until such time as prior applications in relation to this route are finalised. Applications are dealt with on a first come first served basis and Dublin Bus is aware of these procedures generally and have been advised of the position in respect of this particular application. Details of applications are treated as confidential until they are finalised.
[189]175. Deputy Joan Burton asked the Minister for Transport the position with respect to the re-location of the 37 bus terminus to the Blanchardstown Town Centre or elsewhere; the applications currently under consideration by him in this respect; and if he will make a statement on the matter. [36542/09]
Minister for Transport (Deputy Noel Dempsey): The initiation or alteration of a bus service by Dublin Bus is subject to compliance with a requirement to give advance notice to my Department and to compliance with the provisions of Section 25 of the Transport Act 1958 concerning competition with licensed private operators. Where proposed services by the Company are deemed to be in competition with services that are the subject of a licence held by a private bus operator issued under the Road Transport Act, 1932, Dublin Bus is required to obtain my consent under section 25 of the Transport Act 1958 before the Company can introduce such services.
My Department received a proposal from Dublin Bus on 1st May, 2008 to alter the terminus of Route 37. It was deemed that this proposal would give rise to competition with an existing licensed service and accordingly, Dublin Bus were advised on 9th June, 2008 that an application in accordance with Section 25 of the Transport Act, 1958 was required. Dublin Bus subsequently submitted a revised proposal for this route. This was considered by my Department and again it was determined that this amended proposal would also give rise to competition with an existing licensed service. The Company were again advised that an application in accordance with Section 25 of the Transport Act, 1958 was required should the Company wish to pursue the introduction of this revised service.
A revised proposal regarding this route was received from Dublin Bus on 3rd April 2009 and this alteration was approved by my Department on the same date. The Company submitted a further notification regarding this route on 12th August 2009, which is currently under consideration in my Department.
176. Deputy Leo Varadkar asked the Minister for Transport the cost of official domestic travel including all transport costs, accommodation, meals and other incidentals incurred by himself and the Ministers of State at his Department in 2007, 2008 and to date in 2009; and if he will make a statement on the matter. [36570/09]
Minister for Transport (Deputy Noel Dempsey): The information sought by the Deputy is being compiled and will be provided to him as soon as possible.
177. Deputy Joe McHugh asked the Minister for Justice, Equality and Law Reform the number of offices and civil servants involved in the administration of the penalty points system; and if he will make a statement on the matter. [36365/09]
Minister for Justice, Equality and Law Reform (Deputy Dermot Ahern): The Garda Síochána Fixed Charge Processing Office, located in Thurles, Co. Tipperary, is responsible for the administration of the Fixed Charge Processing System, which was developed by An Garda Síochána to enable computer aided processing of offences contrary to the Road Traffic Acts which incur fixed charges. I am informed by the Garda authorities that the number of civil servants involved in the administration of the Fixed Charge Processing Office, as at 30 September, 2009, is 62.8 whole-time equivalents. The administration of penalty points is a matter for the Department of Transport.
178. Deputy Leo Varadkar asked the Minister for Justice, Equality and Law Reform the costs incurred by his constituency office and the constituency offices of the Ministers of State at his Department for leaflet design, production, delivery and other related costs in 2007, 2008 and to date in 2009; and if he will make a statement on the matter. [36384/09]
Minister for Justice, Equality and Law Reform (Deputy Dermot Ahern): In the period in question no costs have been incurred by my Department associated with the design, production, delivery or otherwise of constituency related leaflets.
179. Deputy Leo Varadkar asked the Minister for Justice, Equality and Law Reform the total cost of foreign travel, including flights, accommodation, food, subsistence, travel and other incidental costs, incurred by the Minister and Ministers of State at his Department in 2007, 2008 and to date in 2009; and if he will make a statement on the matter. [36398/09]
Minister for Justice, Equality and Law Reform (Deputy Dermot Ahern): I refer the Deputy to my response to Parliamentary Question No. 132 of 8 October 2009. The position is as stated in that reply.
180. Deputy Jack Wall asked the Minister for Justice, Equality and Law Reform, further to Parliamentary Question No. 637 of 6 October 2009, if this matter will be re-examined; and if he will make a statement on the matter. [36440/09]
Minister for Justice, Equality and Law Reform (Deputy Dermot Ahern): I am advised by the Irish Prison Service that, having conducted a further examination of this case, it was found that a request for the release of the medical file of the person referred to by the Deputy was forwarded in error by his General Practitioner to Portlaoise Prison and not the Midlands Prison where he had been incarcerated. The request has now been redirected to the Midlands Prison and a copy of the prisoner’s medical records will be issued by registered post to his General Practitioner this week.
181. Deputy Finian McGrath asked the Minister for Justice, Equality and Law Reform if he will support the case of a person (details supplied) in Dublin 5. [36444/09]
182. Deputy Finian McGrath asked the Minister for Justice, Equality and Law Reform if he will support the case of a person (details supplied) in Dublin 5. [36445/09]
Minister for Justice, Equality and Law Reform (Deputy Dermot Ahern): I propose to take Questions Nos. 181 and 182 together.
I have been informed by the Irish Naturalisation and Immigration Service (INIS) that a letter regarding the status of the first named person referred to by the Deputy issued on 9 October, 2009 as requested by her on 7 October 2009. I have also been informed by the INIS that an application was received from the second named person on 8 October 2009 regarding changing their current status in the State. This application is currently under consideration and a decision will issue shortly. The INIS further informs me that a valid application for a certificate of naturalisation from the second named person referred to in the Deputy’s Question was received in the Citizenship Division of my Department in April 2009.
[191]All valid applications are dealt with in chronological order as this is deemed to be the fairest to all applicants. The average processing time from application to decision is now at 24 months. More complicated cases can at times take more than the current average, while an element of straight forward cases can be dealt with in less than that timescale.
183. Deputy Charlie O’Connor asked the Minister for Justice, Equality and Law Reform if he will confirm that adequate resources are available to gardaí at Tallaght Garda Station, Dublin, to allow them continue to support the endeavours of a forum (details supplied) to ensure that bus services in Tallaght are not threatened and curtailed by incidents of crime and anti-social behaviour, particularly in the lead up to Halloween; and if he will make a statement on the matter. [36446/09]
Minister for Justice, Equality and Law Reform (Deputy Dermot Ahern): I am informed by the Garda authorities that local Garda management will continue to participate in the group referred to by the Deputy. The Forum is considered to be successful by stakeholders, and its members, including An Garda Síochána, work to address immediately any difficulties identified. I am further informed that policing plans are being prepared to deal with any anti-social behaviour that may occur during the Halloween period.
184. Deputy Finian McGrath asked the Minister for Justice, Equality and Law Reform if a matter (details supplied) will be supported. [36450/09]
Minister for Justice, Equality and Law Reform (Deputy Dermot Ahern): I am informed by the Garda authorities that the location referred to is in the Clontarf Garda Sub-District. Local Garda management is aware of difficulties being experienced by residents in the area as a result of anti-social behaviour and several persons have been arrested as a result of such behaviour. A member of the local Community Policing Unit is allocated specifically to this area and liaises with the local community. An active Neighbourhood Watch Scheme is in place and holds regular meetings. These are attended by the community Garda and issues raised are attended to.
The area is subject to regular patrols by uniform and plain clothes personnel, including the Community Policing Unit, supplemented by the Garda Mountain Bike Unit and the District Detective and Drug Units, the Divisional Crime Task Force and Traffic Corps personnel. Persons and vehicles are regularly stopped and searched in the area. Local Garda management closely monitors such patrols and other operational strategies in place, in conjunction with crime trends and policing needs of the communities, to ensure optimum use is made of Garda resources and the best possible Garda service is provided to the public. The situation will be kept under review, with paramount consideration being given to the needs of residents.
Incidents of public disorder and anti-social behaviour reported to the Garda authorities are the subject of investigation and dealt with appropriately, including by juvenile or adult caution, fixed charge notices or initiating criminal proceedings. Any persons found engaging in such behaviour will continue to be dealt with appropriately in accordance with the law. Current policing plans in the area are designed to address issues of crime and public order offences, including the prevention of crimes of violence against persons and property and the maintenance of an environment conducive to the improvement of the quality of life of residents. This strategy is central to the delivery of the policing service to the area in question.
185. Deputy Leo Varadkar asked the Minister for Justice, Equality and Law Reform when [192]he will enact the ban on upward only rent reviews into law; if he is reconsidering this matter; and if he will make a statement on the matter. [36478/09]
Minister for Justice, Equality and Law Reform (Deputy Dermot Ahern): When Section 132 of the Land and Conveyancing Law Reform Act 2009 was brought forward in July, I made it clear that an appropriate period of time would be needed to allow the market to factor in the very significant changes which were being introduced. That remains the position. While I have taken no final decision on a commencement date, I would note that the section will not be commenced before 1 December at the earliest as that is the date which has been chosen for other sections in the Act.
186. Deputy Leo Varadkar asked the Minister for Justice, Equality and Law Reform the cost of official domestic travel including all transport costs, accommodation, meals and other incidentals incurred by himself and the Ministers of State at his Department in 2007, 2008 and to date in 2009; and if he will make a statement on the matter. [36568/09]
Minister for Justice, Equality and Law Reform (Deputy Dermot Ahern): The cost of domestic travel expenses paid directly to the Ministers and Ministers of State attached to this Department in 2007, 2008 and to date in 2009 is as follows:
The payments to Ministers of State relate for the most part to mileage expenses incurred for official travel made using their own vehicle. The conditions and rates of mileage payments are set centrally by the Department of Finance.
187. Deputy Charles Flanagan asked the Minister for Justice, Equality and Law Reform the number of offences in which a knife was involved to date in 2009; the number of murders in which a knife was involved; and if he will make a statement on the matter. [36597/09]
Minister for Justice, Equality and Law Reform (Deputy Dermot Ahern): In the time available it has not been possible for the Garda authorities to supply the details requested by the Deputy. I will be in contact with the Deputy when the information is to hand.
188. Deputy Charles Flanagan asked the Minister for Justice, Equality and Law Reform the number of offences to date in 2009 committed by suspected offenders on bail, broken down by offence; and if he will make a statement on the matter. [36598/09]
Minister for Justice, Equality and Law Reform (Deputy Dermot Ahern): The Garda Síochána Act 2005 makes provision for the compilation and publication of crime statistics by the [193]Central Statistics Office, as the national statistical agency, and the CSO has established a dedicated unit for this purpose. I have requested the CSO to provide the statistics sought by the Deputy directly to him.
189. Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform if consideration on compassionate grounds will be given in respect of residency in the case of a person (details supplied) in Dublin 8; and if he will make a statement on the matter. [36622/09]
Minister for Justice, Equality and Law Reform (Deputy Dermot Ahern): I refer the Deputy to Parliamentary Question No. 126 of Thursday, 26 February, 2009, and the written Reply to that Question. The person concerned, accompanied by her three minor children, applied for asylum on 11 October 2005. The three children were included on their mother’s asylum application. In accordance with Section 9 of the Refugee Act 1996 (as amended), the person concerned and her children were entitled to remain in the State until her application for asylum was decided. Her asylum application was refused following consideration of her case by the Office of the Refugee Applications Commissioner and, on appeal, the Refugee Appeals Tribunal.
Arising from the refusal of her asylum application, and in accordance with the provisions of Section 3 of the Immigration Act 1999 (as amended), the person concerned was notified, by letter dated 26 January 2009, that the Minister proposed to make Deportation Orders in respect of her and her children. She was given the options, to be exercised within 15 working days, of leaving the State voluntarily, of consenting to the making of Deportation Orders or of making representations to the Minister setting out the reasons why Deportation Orders should not be made against her and her children. In addition, she was notified of her 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 application for Subsidiary Protection is refused, the position in the State of the person concerned, and that of her children, will then be decided by reference to the provisions of 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. All representations submitted will be considered before the file is passed to me for decision. Once a decision has been made, this decision and the consequences of the decision will be conveyed in writing to the person concerned.
The Deputy might wish to note that following the initial refusal of the asylum application of the person concerned, she applied to be re-admitted to the asylum process in accordance with the provisions of Section 17(7) of the Refugee Act 1999 (as amended). This application was approved which gave rise to the fresh, and ultimately unsuccessful, consideration of her asylum claims. This is the primary reason for the delay in having her asylum claim finalised.
190. Deputy Leo Varadkar asked the Minister for Foreign Affairs the costs incurred by his constituency office and the constituency offices of the Ministers of State at his Department for [194]leaflet design, production, delivery and other related costs in 2007, 2008 and to date in 2009; and if he will make a statement on the matter. [36382/09]
Minister for Foreign Affairs (Deputy Micheál Martin): My Department has not provided any funding to my constituency office or the constituency offices of the Ministers of State at this Department for leaflet design, production, delivery or other related costs in 2007, 2008, or to date in 2009.
191. Deputy Leo Varadkar asked the Minister for Foreign Affairs the total cost of foreign travel, including flights, accommodation, food, subsistence, travel and other incidental costs, incurred by the Minister and Ministers of State at his Department in 2007, 2008 and to date in 2009; and if he will make a statement on the matter. [36396/09]
Minister for Foreign Affairs (Deputy Micheál Martin): As the Deputy will appreciate, Ministers serving at my Department, by the nature of its responsibilities, are obliged to undertake a significant amount of official travel overseas. In regard to official travel overseas, I have included below, in tabular form, the total costs incurred on accommodation, commercial flights and travel subsistence for 2007, 2008 and 2009 (January — August) in regard to each Minister and Minister of State who has served in my Department in this period. In addition to these Ministerial costs, there may be other incidental costs incurred at the destination, by the delegation as a whole; such costs are not collated centrally.
My Department is fully compliant with the Department of Finance guidelines on foreign travel. My Department also operates its own detailed internal travel guidelines and practises which ensure cost effective travel practises, both in Headquarters and throughout our network of 75 diplomatic missions abroad. The central aim of the Departmental travel policy, which applies to both Ministers and officials, is to minimise official travel costs and to achieve value for money for expenditure necessarily incurred, consistent with the effective discharge of official duties.
It should be noted that MoS Dick Roche is also a Minister of State at the Department of the Taoiseach and that other travel costs may be a charge on that Department.
It should also be noted that Ministers of State generally do not use the Government Jet and avail of scheduled flights in most instances.
192. Deputy Brendan Howlin asked the Minister for Foreign Affairs his views on the ongoing burden of international debt on poorer countries; the way he considers that this burden affects African countries in particular; if he will provide details of any policy initiatives currently being formulated by him for the purpose of addressing this issue at international level; and if he will make a statement on the matter. [36406/09]
Minister of State at the Department of Foreign Affairs (Deputy Peter Power): Ireland has played an important role internationally on the issue of alleviation of the debt burden on developing countries. The Government’s policy strategy, which was prepared jointly by the Department of Foreign Affairs and the Department of Finance, was published in 2002. It supports the total cancellation of the debts of the world’s poorest countries. A review of the strategy is now being undertaken by the two Departments and I expect it will be completed by the end of 2009.
Ireland’s bilateral assistance to the developing world is strongly focused on the poorest countries in sub-Saharan Africa, and has always been exclusively in the form of grants rather than loans. The Government has also provided significant resources for initiatives to ease or cancel [196]the debt burden on developing countries. The two main international instruments which have been established to address the issue are the Multilateral Debt Relief Initiative (MDRI) and the Heavily Indebted Poor Countries (HIPC) initiative. The MDRI came into effect on 1 July 2006, and provides for cancellation of eligible debt from the World Bank, the African Development bank and the International Monetary Fund for many of the world’s poorest and most indebted countries. To date, 25 countries have benefited from debt relief under the MDRI. Ireland’s share of the total cost of debt relief provided by the World Bank under the initiative is €58.64 million. The Government contributed this amount in full in 2006.
Ireland has also contributed over €20 million to the HIPC initiative, which is implemented by the World Bank and the IMF, with the objective of reducing the debt burden of qualifying countries to sustainable levels. Overall, some $70 billion in debt service relief has been approved under the HIPC initiative for 33 countries, 27 of which are in Africa.
I am concerned that progress achieved on the debt problem could be undermined by the impact of the economic crisis. Some of the Least Developed Countries, particularly in Africa, are now facing serious short term difficulties in financing basic services. The IMF estimated earlier this year that the 25 Least Developed Countries which have been most seriously affected by the economic crisis already face a $25 billion budgetary shortfall in 2009.
I welcome the work now underway in the World Bank to develop a Crisis Response Facility which would provide quick and effective assistance for the most vulnerable countries in the face of economic crisis. I also believe it is important to ensure that these international efforts, and the efforts of the developing countries themselves, are not undermined by further irresponsible lending or borrowing. The Government supports the development of an international consensus on responsible lending and borrowing procedures and I welcome the dialogue which the World Bank has opened with civil society groups on the complex issues involved.
Ireland will remain actively engaged on the debt issue internationally. In particularly, we want to ensure that the IMF and the World Bank continue to help low income countries meet their development financing needs without re- accumulating unsustainable levels of debt.
193. Deputy Charlie O’Connor asked the Minister for Foreign Affairs the actions being taken to achieve the release of persons (details supplied); if his attention has been drawn to the interest of people here in this issue; and if he will make a statement on the matter. [36553/09]
Minister for Foreign Affairs (Deputy Micheál Martin): I am extremely concerned for the welfare of Sharon Commins and her Ugandan colleague Ms.Hilda Kawuki, who have been in captivity for over 100 days now. Mr Al Gailani, the Sudanese Minister for Humanitarian Affairs, was appointed by the Sudanese Government as our official point of contact and has been in contact on almost a daily basis with our Ambassador to Sudan, Mr Gerry Corr, who remains with a strong interagency team in situ in Sudan. I am also in regular contact with Mr Al Gailani.
The Irish team in Sudan is continuing its work to secure the safe release of the two hostages. During my own visit to Sudan on the 6 and 7 September I impressed upon the Sudanese Government the need to persuade the kidnappers to free Sharon and Hilda and to bring this unacceptable situation to a swift and peaceful end. My visit was also useful in terms of emphasising that the release of the women is a priority at the highest political level for this Government, and in ensuring that the issue remains at the top of the Sudanese agenda, including at [197]Ministerial level. More recently, on the 23 September, during my visit to New York, I availed of the opportunity to meet with the Sudanese Government at a senior level and also asked for the assistance of the US Government to use whatever influence it can on the Khartoum authorities to secure the release of the two women.
I have been in ongoing contact with the Commins family and our Embassy in Kampala has kept the Kawuki family informed of developments. As the Deputy will appreciate, it would not be appropriate for me to go into the details of sensitive discussions which have taken place. I can, however, assure the Deputy that our efforts are continuing as intensely as ever.
194. Deputy Leo Varadkar asked the Minister for Foreign Affairs the cost of official domestic travel including all transport costs, accommodation, meals and other incidentals incurred by himself and the Ministers of State at his Department in 2007, 2008 and to date in 2009; and if he will make a statement on the matter. [36566/09]
Minister for Foreign Affairs (Deputy Micheál Martin): In regard to official domestic travel, I have included below, in tabular form, the total costs incurred on such travel for 2007, 2008 and 2009 (January-August) in regard to each Minister and Minister of State who has served in my Department in this period.
My Department is fully compliant with the Department of Finance guidelines on travel. My Department also operates its own detailed internal travel guidelines and practices which ensure cost effective travel practices, both in Headquarters and throughout our network of 75 diplomatic missions abroad. The central aim of the Departmental travel policy, which applies to both Ministers and officials, is to minimise official travel costs and to achieve value for money for expenditure necessarily incurred, consistent with the effective discharge of official duties.
195. Deputy Finian McGrath asked the Minister for Foreign Affairs if he will support a matter (details supplied). [36579/09]
Minister for Foreign Affairs (Deputy Micheál Martin): In reply to Priority Question No. 7 on 23 September 2009, Minister Roche on my behalf gave the Government’s initial views on the Goldstone Report and the findings it contains. As stated in that reply:
That consideration began at the Human Rights Council on 29 September, and Ireland, although not a member of the Council, intervened in support of the seriousness and credibility of the Report, and the need to respond to and act upon it. The letter received by the Deputy, which I myself also received, criticised the postponement of consideration of a draft Resolution on [199]the Report to the next HRC session in March, and called instead for the matter to be returned to the HRC. A Special Session of the Human Rights Council has now been called to discuss the Goldstone Report, and this is taking place in Geneva today and tomorrow.
It is for the HRC, which commissioned the Report, to consider in the first instance how to take it forward. In view of the length and detail of the Report, and the wide-ranging nature of its recommendations, this process will undoubtedly continue beyond the Special Session, and indeed could well involve other international fora as well, in the event of the very serious allegations documented not being properly and independently investigated by Israel and the authorities in Gaza.
196. Deputy Leo Varadkar asked the Minister for Arts, Sport and Tourism the costs incurred by his constituency office and the constituency offices of the Ministers of State at his Department for leaflet design, production, delivery and other related costs in 2007, 2008 and to date in 2009; and if he will make a statement on the matter. [36374/09]
Minister for Arts, Sport and Tourism (Deputy Martin Cullen): There were no costs incurred by the Department for leaflet design, production, delivery or other related costs for either my constituency office, since becoming Minister for Arts, Sport and Tourism in May 2008, or that of Minister of State Mansergh, since becoming Minister of State at the Department in May 2008.
197. Deputy Leo Varadkar asked the Minister for Arts, Sport and Tourism the total cost of foreign travel, including flights, accommodation, food, subsistence, travel and other incidental costs, incurred by the Minister and Ministers of State at his Department in 2007, 2008 and to date in 2009 [36388/09]
Minister for Arts, Sport and Tourism (Deputy Martin Cullen): The total cost of foreign travel, including flights, accommodation, food, subsistence, travel and other incidental costs, incurred by myself since becoming Minister for Arts, Sport and Tourism in May 2008, by my predecessors and former Ministers, the late Mr. Seamus Brennan, TD and Mr. John O’Donoghue TD, and by the Minister of State in my Department Mr. Martin Mansergh TD in 2007, 2008 and 2009 is €75,683.09.
198. Deputy Leo Varadkar asked the Minister for Arts, Sport and Tourism the cost of official domestic travel including all transport costs, accommodation, meals and other incidentals incurred by himself and the Ministers of State at his Department in 2007, 2008 and to date in 2009; and if he will make a statement on the matter. [36558/09]
Minister for Arts, Sport and Tourism (Deputy Martin Cullen): Since becoming Minister for Arts, Sport and Tourism in May 2008, the cost of official domestic travel including all transport costs, accommodation, meals and other incidentals incurred by myself and the Minister of State in my Department is €1,661.87.
199. Deputy Leo Varadkar asked the Minister for Community, Rural and Gaeltacht Affairs the costs incurred by his constituency office and the constituency offices of the Ministers of State at his Department for leaflet design, production, delivery and other related costs in 2007, 2008 and to date in 2009; and if he will make a statement on the matter. [36376/09]
[200]Minister for Community, Rural and Gaeltacht Affairs (Deputy Éamon Ó Cuív): My Department did not incur any costs in relation to leaflet design, production, delivery or other related costs in 2007, 2008 or to date in 2009, either in my own constituency office or the constituency office of the Minister of State at my Department. While a small number of handouts have been prepared, when required, by the constituency offices, these were prepared and copied in-house and therefore incurred no design, production or delivery costs.
200. Deputy Leo Varadkar asked the Minister for Community, Rural and Gaeltacht Affairs the total cost of foreign travel, including flights, accommodation, food, subsistence, travel and other incidental costs, incurred by the Minister and Ministers of State at his Department in 2007, 2008 and to date in 2009 [36390/09]
Minister for Community, Rural and Gaeltacht Affairs (Deputy Éamon Ó Cuív): The relevant expenditure, all of which was incurred in the course of carrying out necessary official business on behalf of my Department, is set out in the tables below.
| Year | Total Cost |
|---|---|
| € | |
| 2007 | 24,693 |
| 2008 | 41,739 |
| 2009 to date | 13,796 |
| Year | Total Cost |
|---|---|
| € | |
| 2007 | 8,566 |
| 2008 | 4,090 |
| 2009 to date | 910 |
201. Deputy Leo Varadkar asked the Minister for Community, Rural and Gaeltacht Affairs the cost of official domestic travel including all transport costs, accommodation, meals and other incidentals incurred by himself and the Ministers of State at his Department in 2007, 2008 and to date in 2009; and if he will make a statement on the matter. [36560/09]
Minister for Community, Rural and Gaeltacht Affairs (Deputy Éamon Ó Cuív): The relevant expenditure, which was incurred in the course of carrying out necessary official business on behalf of my Department, is set out in the tables below.
| Year | Total Cost |
|---|---|
| € | |
| 2007 | 1,246 |
| 2008 | 2,588 |
| 2009 to date | 704 |
| Year | Total Cost |
|---|---|
| € | |
| 2007 | 9,179 |
| 2008 | 22,708 |
| 2009 to date | 9,850 |
202. Deputy Billy Timmins asked the Minister for Social and Family Affairs the position in relation to rent allowance; the limits for a couple in receipt of social welfare with no children; the amount they can be allocated; the amount for a single person with no children in receipt of social welfare; the criteria for a single person to rent accommodation and for the Health Service Executive to pay the rent; and if she will make a statement on the matter. [36418/09]
Minister for Social and Family Affairs (Deputy Mary Hanafin): The purpose of the rent supplement scheme is to provide short-term support to eligible people living in private rented accommodation whose means are insufficient to meet their accommodation costs and who do not have accommodation available to them from any other source. Payment of rent supplement is normally calculated to ensure that a person, after the payment of rent, has an income equal to the rate of supplementary welfare allowance appropriate to their family circumstances, less a minimum weekly contribution of €24, which recipients are required to pay from their own resources. Many recipients pay more than €24 because they are also required, subject to income disregards, to contribute any additional assessable means that they have, over and above the appropriate rate of supplementary welfare allowance, towards their accommodation costs.
Rent supplement is also subject to a limit on the amount of rent that an applicant may incur. Rent limits are set at levels that enable different types of eligible households to secure and retain basic suitable rented accommodation, having regard to different rental market conditions that prevail in various parts of the State. The objective is to ensure that rent supplement is not paid in respect of overly expensive accommodation having regard to the size of the household.
The maximum rent which a person may incur and still qualify for rent supplement is prescribed in regulations. These regulations are time limited so that they can be adjusted in the light of rent levels generally and the wider economic climate. The most recent regulations cover the period to 31 May 2010. A copy of the current rent limits for all counties and household categories, including couples with no children and single people with no children, is appended.
In order to qualify for rent supplement, a person must be habitually resident in the State, be a bona fide tenant, satisfy a means test and be able to demonstrate that they are eligible for and in need of social housing. The qualifying criteria are the same for couples and single people with or without children. More detail is available on the Department’s website: http://www.welfare.ie/EN/Schemes/SupplementaryWelfareAllowance/Pages/RentSupplement. aspx
[203]The values refer to weekly values except for the values in Column 6, Column 7 and Column 8 for Dublin Kildare and Wicklow which are monthly values.
203. Deputy Leo Varadkar asked the Minister for Social and Family Affairs the reason the carer’s strategy has not yet been published; when she will do so; and if she will make a statement on the matter. [36476/09]
Minister for Social and Family Affairs (Deputy Mary Hanafin): The Government is acutely aware and appreciative of the contribution made by carers to people needing ongoing care and support. In recognition of this, considerable improvements have been made in recent years in services and supports for carers. Over the past decade, weekly payment rates to carers have greatly increased, qualifying conditions for carer’s allowance have significantly eased, coverage of the scheme has been extended and new schemes such as carer’s benefit, half-rate carer’s allowance and the respite care grant have been introduced and extended.
In Budget 2009, the rate of carer’s allowance for those aged 66 or over increased by €7 to €239 per week and for those aged under 66 by €6.50 to €220.50 per week. These increases took effect from January 2009. Recipients of carer’s allowance are also eligible for household benefits and free travel and the respite care grant. It is estimated that the combined expenditure on carer’s allowance, carer’s benefit, the respite care grant and half-rate carer’s allowance will be €650 million in 2009.
In addition, my colleague the Minister for Health and Children has over recent years, provided significant additional investment either to put in place, or expand, a range of community based services such as Home Helps, Home Care Packages, Day/Respite Care, and Meals-on-Wheels. All of these are designed to support recipients and their families, so that those requiring care can remain in their own homes and communities for as long as possible.
During 2008 an interdepartmental group, chaired by the Department of the Taoiseach, with secretariat support provided by my Department, undertook work, including a public consultation process to develop a National Carers’ Strategy. However, because of the prevailing economic situation, it was not possible to set targets or time lines which could be achieved. In that context, rather than publishing a document which did not include any significant plans for the future, the Government decided not to publish a strategy. This position remains unchanged. The work carried out by the interdepartmental group and the submissions made to it have been useful and will, of course, contribute to the development of carers policy in the future.
204. Deputy Leo Varadkar asked the Minister for Social and Family Affairs the costs incurred by her constituency office and the constituency offices of the Ministers of State at her Department in respect of leaflet design, production, delivery and other related costs in 2007, 2008 and to date in 2009; and if she will make a statement on the matter. [36385/09]
Minister for Social and Family Affairs (Deputy Mary Hanafin): All such costs were incurred through the one-stop-shop at the Houses of the Oireachtas and were vouched and verified.
205. Deputy Leo Varadkar asked the Minister for Social and Family Affairs the total cost of foreign travel, including flights, accommodation, food, subsistence, travel and other incidental [204]costs, incurred by the Minister and Ministers of State at her Department in 2007, 2008 and to date in 2009; and if she will make a statement on the matter. [36399/09]
Minister for Social and Family Affairs (Deputy Mary Hanafin): The total costs of foreign travel incurred by my predecessors and me for 2007, 2008 and to date in 2009 are set out in the following table:
The totals shown include the cost of flights paid directly to the relevant travel company and the cost of accommodation paid directly to hotels and the expenses which are incurred by our Embassies and reimbursed to them by the Department.
206. Deputy Phil Hogan asked the Minister for Social and Family Affairs when an appeal in respect of child benefit will be concluded in respect of a person (details supplied) in County Kilkenny; and if she will make a statement on the matter. [36402/09]
Minister for Social and Family Affairs (Deputy Mary Hanafin): The Social Welfare Appeals Office has advised me that the relevant Departmental papers and comments of the Department have been received and the case has been referred to an Appeals Officer for consideration. The Social Welfare Appeals Office is an office of the Department that is independently responsible for determining appeals against decisions on social welfare entitlements.
[205]207. Deputy Jimmy Deenihan asked the Minister for Social and Family Affairs when a decision will be made on the appeal by a person (details supplied) in County Kerry for jobseeker’s allowance; and if she will make a statement on the matter. [36411/09]
Minister for Social and Family Affairs (Deputy Mary Hanafin): The Social Welfare Appeals Office has advised me that the relevant Departmental papers and comments of the Department have been received and the case has been referred to an Appeals Officer for consideration. The Social Welfare Appeals Office is an office of the Department that is independently responsible for determining appeals against decisions on social welfare entitlements.
209. Deputy Fergus O’Dowd asked the Minister for Social and Family Affairs her views regarding the financial difficulties experienced by people who were formerly self-employed and who have no entitlement to jobseeker’s benefit and due to the current economic climate cannot obtain employment; her plans to introduce a scheme of self-employed social insurance to address this issue; and if she will make a statement on the matter. [36441/09]
Minister for Social and Family Affairs (Deputy Mary Hanafin): The range of benefits and pensions to which different groups of workers may establish entitlement reflects the risks associated with the nature of their work. This in turn reflects the rate of contribution payable. Self-employed people including Artists are liable for PRSI at the Class S rate of 3% and are consequently eligible for a narrower range of benefits than general employees who, together with their employers, pay a total social insurance contribution of 14.05%, excluding levies, under the full-rate PRSI Class A.
Self-employed workers are not insured against short-term benefits such as illness and jobseeker’s payments — these are only available to people covered by PRSI Classes A, E, H and P. This reflects the need for coverage for various contingencies, the rate of contributions that self-employed people pay, the practicalities of administering and controlling access to short-term payments and the annualised system of contributions that these same people enjoy. A system of separate arrangements for employed and self-employed workers within a social insurance context is common in other European social protection systems.
There are no immediate plans to extend cover for short-term benefits to this group of insured workers. Any such measure would have significant financial implications and would have to be considered within a budgetary context. Consideration would also have to be given to an appropriate increase in the rate of the PRSI Class S contribution.
Self-employed workers who do not qualify for an insurance-based benefit may establish entitlement to assistance-based payments such as Jobseekers Allowance. They can apply for the means-tested Jobseeker’s Allowance if their business ceases or if they are on low income as a result of a downturn in demand for their services. In general their means will take account of the level of earnings in the last twelve months in determining their expected income for the following year. In the current climate account is taken of the downward trend in the economy. It is accepted that future earnings may be lower than those of previous years and this is factored in projecting future earnings, with account being taken of the potential for significant upward or downward variations in income from one year to the next.
210. Deputy Bobby Aylward asked the Minister for Social and Family Affairs if she will [206]supply scanners to businesses (details supplied) to allow them access the swipe cards which recently issued to social welfare recipients in view of the fact that there is confusion with the old system at the present time between the businesses and the recipient; and if she will make a statement on the matter. [36442/09]
Minister for Social and Family Affairs (Deputy Mary Hanafin): The Department supports government policy which aims to facilitate the greater use of electronic payment systems in the economy in the interests of developing a world class payments environment in Ireland. Our payment strategy is designed to ensure that cost effective arrangements are in place for making payments to social welfare customers by using a range of payment options and to ensure that new payment facilities are made available to customers as they arise. Currently some 90% of customers receive their payment electronically direct to their post office or financial institution.
A range of measures were undertaken to inform customers of the change in payment methods and to address any concerns they may have regarding the use of the social services card to collect their payment at post offices. Each person is informed by personal letter of the change in their payment arrangement. A social services card, along with a covering letter explaining how to use the card, is also issued to them. Posters are displayed in all post offices, citizen’s information centres and throughout the Department’s local office network. An Post and the Irish Postmaster’s Union (IPU) are committed to assisting customers in the use of cards for collecting their payment
The Social Services Card is used as a key for accessing the An Post counter system and for identifying customers. Where the counter systems are not yet in place in non-automated post offices or PostBank offices, payment is made by way of a paper post draft. An Post are currently in the process of upgrading all post offices to facilitate electronic payment transfer. The upgrading of An Post counter systems, and the Post Office network, are a matter for the board of An Post which comes under the remit of the Department of Communications, Energy and Natural Resources. The PostPoint electronic transactions services infrastructure is a matter for Postbank Ireland Limited.
211. Deputy Paul Connaughton asked the Minister for Social and Family Affairs the position regarding a jobseeker’s assistance appeal in the case of a person (details supplied) in County Galway; and if she will make a statement on the matter. [36462/09]
Minister for Social and Family Affairs (Deputy Mary Hanafin): The Social Welfare Appeals Office has advised me that the relevant Departmental papers and comments of the Department have been received and the case has been referred to an Appeals Officer for consideration. The Social Welfare Appeals Office is an office of the Department that is independently responsible for determining appeals against decisions on social welfare entitlements.
212. Deputy Róisín Shortall asked the Minister for Social and Family Affairs the estimated savings to the Exchequer if the qualifying year for the contributory State pension and State contributory transition pension were increased by one year respectively. [36466/09]
Minister for Social and Family Affairs (Deputy Mary Hanafin): It is estimated that €260 million could be saved if the qualifying year for the State Pension (Contributory) and State Pension (Transition) was increased by one year. However, it is important to note that these [207]estimated savings do not take account of additional expenditure that may be incurred through knock-on effects on other areas if people of these age groups qualified for unemployment or illness-related payments. The Government is currently finalising the National Pensions Framework which will be published before the end of the year. Any decisions on amending state pension age will be considered in that context.
213. Deputy James Bannon asked the Minister for Social and Family Affairs the reason a person (details supplied) in County Longford has been refused child benefit; and if she will make a statement on the matter. [36471/09]
Minister for Social and Family Affairs (Deputy Mary Hanafin): In order to qualify for a range of Social Welfare payments, including Child Benefit, applicants are required to satisfy the Habitual Residence condition (HRC). This condition was introduced on 1st May 2004. The HRC requires the applicant to satisfy the Deciding Officer that they meet certain conditions, including that their centre of interest is in Ireland and that their future intentions, as demonstrated, are to remain in Ireland. The legal right to undertake employment and be self-supporting are considered by the Deciding Officer when the person’s centre of interest and future intentions are being examined. In order for Romanian nationals to be employed in Ireland, they are required to have a work permit. The person concerned does not have such a permit.
The Child Benefit application was refused on 18th May 2009 as the Deciding Officer, having considered all the circumstances, did not consider that the person concerned satisfied the HR condition as her centre of interest and future intentions have not been clearly established due to her inability to work legally in Ireland, or alternatively to support herself independently. The person concerned was notified of the decision in writing on 18th May 2009 and given the right of appeal.
214. Deputy James Bannon asked the Minister for Social and Family Affairs the reason a person (details supplied) in County Westmeath has been refused a State transition pension; and if she will make a statement on the matter. [36473/09]
Minister for Social and Family Affairs (Deputy Mary Hanafin): In order to qualify for a State Pension (Transition) at age 65, a person must have a yearly average of at least 24 reckonable social insurance contributions from their commencement of insurable employment up to the end of the tax year prior to their 65th birthday. The person concerned does not qualify for a State Pension (Transition) as she only has a yearly average of 2 reckonable contributions. PRSI contributions paid in respect of periods of self employment are not reckonable for State Pension (Transition). They are reckonable for State Pension (Contributory), which is payable from age 66.
215. Deputy Jack Wall asked the Minister for Social and Family Affairs the position of an appeal by a person (details supplied) in County Kildare against the decision to refuse their application for guardian’s payment; and if she will make a statement on the matter. [36520/09]
Minister for Social and Family Affairs (Deputy Mary Hanafin): The Social Welfare Appeals Office has advised me that the relevant Departmental papers and comments of the Department have been received and the case has been referred to an Appeals Officer for consideration. [208] The Social Welfare Appeals Office is an office of the Department that is independently responsible for determining appeals against decisions on Social Welfare entitlements.
216. Deputy Leo Varadkar asked the Minister for Social and Family Affairs the cost of official domestic travel including all transport costs, accommodation, meals and other incidentals incurred by herself and the Ministers of State at her Department in 2007, 2008 and to date in 2009; and if she will make a statement on the matter. [36569/09]
Minister for Social and Family Affairs (Deputy Mary Hanafin): The official domestic travel requirements of Ministers are met by using State cars with official Garda drivers, the costs of which are met from the Garda Síochána Vote. No other additional costs were incurred by me or by my predecessor in 2008 or in 2009 to date. The additional costs incurred in 2007 by the late Minister Brennan are set out in the following table:
Since my appointment as Minister I have incurred no Travel and Subsistence costs for Domestic Travel.
217. Deputy Willie Penrose asked the Minister for Social and Family Affairs the number of married women claiming the contributory State pension for each year from 1990 to 2007; and if she will make a statement on the matter. [36581/09]
Minister for Social and Family Affairs (Deputy Mary Hanafin): The Department of Social and Family Affairs does not maintain annual statistics on the marital status of people who are claiming State Pension (Contributory) or State Pension (Transition), as qualification is on an individual social insurance basis. However, the attached table shows the break-down between male and female SPT and SPC recipients from 1990 to date (Note, in 2007, provisions were made for individuals on SPT, on reaching the age of 66, to be automatically transferred to SPC, payable at the same rate).
218. Deputy Bernard J. Durkan asked the Minister for Social and Family Affairs when rent allowance will be awarded to a person (details supplied) in County Kildare; and if she will make a statement on the matter. [36612/09]
Minister for Social and Family Affairs (Deputy Mary Hanafin): The Health Service Executive has advised that according to its records, an application for mortgage interest supplement has not been received from the person concerned. It is open to the person concerned to contact his local community welfare officer with a view to making an application for mortgage interest supplement.
219. Deputy Bernard J. Durkan asked the Minister for Social and Family Affairs the number of domiciliary care allowance applications received in each of the past five years to date; the number granted, refused or pending; and if she will make a statement on the matter. [36617/09]
Minister for Social and Family Affairs (Deputy Mary Hanafin): The transfer of the Domiciliary Care Allowance scheme from the Health Service Executive to this Department arose from a Government decision on 28th February 2006 to reallocate certain functions between Departments and Agencies as part of the health service reform programme.
The transfer of the scheme in 2009 took place in two stages:
From 1st April 2009, all new claims for Domiciliary Care Allowance have been decided by the Department.
From September 2009, the Department took over responsibility for the payment of all Domiciliary Care Allowance claims from the Health Service Executive.
The Deputy will appreciate, therefore, that this Department does not have the information sought in relation to the scheme before 1 April 2009.
In the period 1st April 2009 to 9th October 2009 a total of 2430 applications were received in the required format, of which 1688 cases have been fully processed by the Department. Of these applications, 633 were awarded while 1055 were deemed not to be eligible for Domiciliary Care Allowance. 742 applications are currently pending. Where a person is not satisfied with the decision of a Deciding Officer they may seek to have the decision reviewed or they may [210]appeal the decision to the Social Welfare Appeals Office. Information on applications prior to 1 April 2009 is a matter for the Minister for Health and Children.
220. Deputy Bernard J. Durkan asked the Minister for Social and Family Affairs if mortgage support will be offered to a person (details supplied) in County Kildare. [36620/09]
Minister for Social and Family Affairs (Deputy Mary Hanafin): The Health Service Executive has advised that according to its records, an application for mortgage interest supplement has not been received from the person concerned. It is open to the person concerned to contact his local community welfare officer with a view to making an application for mortgage interest supplement.
221. Deputy Fergus O’Dowd asked the Minister for Social and Family Affairs if she will respond to correspondence (details supplied); and if she will make a statement on the matter. [36827/09]
Minister for Social and Family Affairs (Deputy Mary Hanafin): The issues raised in the correspondence referred to by the Deputy relate primarily to the provision of educational and other supports to young children with an intellectual disability and are, accordingly, matters which fall to be addressed by my colleagues, the Minister for Education and Science and the Minister for Health and Children. Insofar as issues of income support are concerned, I will be mindful of the issues raised in the correspondence, but the Deputy will understand that these issues will be considered in the context of the forthcoming Budget process and that it would not be appropriate for me to comment further at this stage.
222. Deputy Leo Varadkar asked the Minister for Defence the costs incurred by his constituency office and the constituency offices of the Ministers of State at his Department for leaflet design, production, delivery and other related costs in 2007, 2008 and to date in 2009; and if he will make a statement on the matter. [36377/09]
Minister for Defence (Deputy Willie O’Dea): No such costs for leaflet design, production, delivery or other related costs have been borne on the Vote for my Department for the years 2007, 2008 or to date in 2009.
223. Deputy Leo Varadkar asked the Minister for Defence the total cost of foreign travel, including flights, accommodation, food, subsistence, travel and other incidental costs, incurred by the Minister and Ministers of State at his Department in 2007, 2008 and to date in 2009 [36391/09]
Minister for Defence (Deputy Willie O’Dea): The information requested by the Deputy in relation to the total cost of foreign travel is as follows:
| Year | Minister | Minister of State |
|---|---|---|
| € | € | |
| 2007 | 4,344.48 | 2,671.70 |
| 2008 | 3,570.33 | NIL |
| 2009 (to date) | 523.00 | NIL |
[211]Both the Minister of State at my Department and I availed of the Ministerial Air Transport Service for foreign travel during the period in question. The amount of flying time involved was as follows:
| Aircraft | Flying Time in Minutes |
|---|---|
| Gulfstream | 4,260 |
| Learjet | 840 |
With regard to cost of travel, my Department follows the normal practice in the aviation business of costing aircraft by reference to the cost per flying hour under either of two headings:
(a) The direct cost, i.e. the costs which are additional to those associated with having the aircraft and which only arise when the aircraft is flown including maintenance, fuel and support services; and
(b) The total cost, i.e. the direct cost plus the costs associated with having the aircraft, i.e. depreciation and personnel costs.
The costs associated with Air Corps aircraft used in provision of Ministerial Air Transport Service are as follows:
| Aircraft | Average Direct Cost Per Hour | Average Total Cost Per Hour |
|---|---|---|
| € | € | |
| Gulfstream | 4,050 | 7,890 |
| Learjet | 1,270 | 2,950 |
224. Deputy Leo Varadkar asked the Minister for Defence the cost of official domestic travel including all transport costs, accommodation, meals and other incidentals incurred by himself and the Ministers of State at his Department in 2007, 2008 and to date in 2009; and if he will make a statement on the matter. [36561/09]
Minister for Defence (Deputy Willie O’Dea): With the exception of use of the Ministerial Air Transport Service there were no costs incurred by me or by Ministers of State at my Department in 2007, 2008 or to date in 2009. I availed of the Ministerial Air Transport Service for domestic travel during the period in question. The amount of flying time involved was as follows:
| Mode of Transport | Flying Time in Minutes |
|---|---|
| Helicopter EC135 | 570 |
| Helicopter AW139 | 415 |
The Department of Defence follows the normal practice in the aviation business of costing aircraft by reference to the cost per flying hour under either of two headings:
The direct cost, i.e. the costs which are additional to those associated with having the aircraft and which only arise when the aircraft is flown including maintenance, fuel and support services; and
[212]The total cost, i.e. the direct cost plus the costs associated with having the aircraft, i.e. depreciation and personnel costs
The costs associated with Air Corps aircraft used in provision of Ministerial Air Transport Service are as follows:
| Aircraft | Average Direct Cost Per Hour | Average Total Cost Per Hour |
|---|---|---|
| € | € | |
| Learjet | 1,270 | 2,950 |
| EC 135 | 430 | 1,590 |
| AW 139 | 1,470 | 3,130 |
225. Deputy Leo Varadkar asked the Minister for the Environment, Heritage and Local Government the costs incurred by his constituency office and the constituency offices of the Ministers of State at his Department for leaflet design, production, delivery and other related costs in 2007, 2008 and to date in 2009; and if he will make a statement on the matter. [36380/09]
Minister for the Environment, Heritage and Local Government (Deputy John Gormley): My Department has not provided any funding to my constituency office or the constituency offices of the Ministers of State at this Department for leaflet design, production, delivery and other related costs in 2007, 2008 and to date in 2009.
226. Deputy Leo Varadkar asked the Minister for the Environment, Heritage and Local Government the total cost of foreign travel, including flights, accommodation, food, subsistence, travel and other incidental costs, incurred by the Minister and Ministers of State at his Department in 2007, 2008 and to date in 2009. [36394/09]
Minister for the Environment, Heritage and Local Government (Deputy John Gormley): The total cost of foreign travel incurred by me and the Ministers of State at my Department during 2007, 2008 and to date in 2009 is as follows:
| Year | 2007 | 2008 | 01 Jan – 13 Oct 2009 |
|---|---|---|---|
| Total Expenses | €43,505.18 | €55,474.01 | €30,082.74 |
227. Deputy Billy Timmins asked the Minister for the Environment, Heritage and Local Government the position regarding the new local government charge for second homes in the case of a person who has been left the family home in which a family member has the right to live for his or her lifetime, so the person cannot enter the house or rent it to anyone in view of the fact that the family member is living in it; if, in view of this the person will be exempt from the new €200 charge; and if he will make a statement on the matter. [36454/09]
[213]Minister for the Environment, Heritage and Local Government (Deputy John Gormley): The Government has decided to broaden the revenue base of local authorities by introducing a charge on all non-principal private residences. The charge, which is set at €200, is payable by the owners of private rented accommodation, holiday homes and any other residential property that is not the owner’s sole or main residence. While detailed guidance has been provided to local authorities for the purpose of applying the Local Government (Charges) Act 2009, covering, inter alia, the terms and definitions used in the Act and their broad application, interpretation and implementation of the legislation is a matter for the local authorities in the first instance.
228. Deputy Thomas Byrne asked the Minister for the Environment, Heritage and Local Government the estimates for compliance with recent legislation requiring building energy rating certificates; the proposals he will introduce to increase the enforcement of this legislation; and if he will make a statement on the matter. [36459/09]
Minister for the Environment, Heritage and Local Government (Deputy John Gormley): The EU Directive on the Energy Performance of Buildings, which was transposed into Irish law by the European Communities (Energy Performance of Buildings) Regulations 2006 — 2008, introduced a requirement for a Building Energy Rating (BER) system. The Regulations clearly and unambiguously specify that any person who offers a building for sale or letting on or from 1 January 2009 or any agent acting on their behalf, is required to produce a copy of the BER certificate to any person expressing an interest in purchasing or taking a letting in the building. A person who contravenes these requirements commits an offence, unless the building in question is specifically exempted under Article 3 of the Regulations, and is liable, on prosecution by the Building Control Authority in whose functional area the building is situated, to a fine not exceeding €5,000. At present there are some 74,000 Building Energy Rating (BER) certificates in place in respect of dwellings and over 2,000 BER certificates in place for buildings other than dwellings.
In relation to improving compliance, Circular Letter BC 4/2009 — Enforcing Building Regulations Part L and Building Energy Ratings — issued to all Building Control Authorities on 17 February 2009. The Circular Letter, among other things, asked all local authorities to write to estate and letting agents within their functional area drawing their attention to the mandatory requirement for BER certificates in respect of buildings offered for sale or letting on or from 1 January 2009 and indicating that full compliance was expected from building owners and agents acting on behalf of owners.
With regard to continuing to improve compliance with and awareness of the BER system, my Department will continue to work closely with the Department of Communications, Energy and Natural Resources, SEI and the 37 local Building Control Authorities to promote awareness of the obligations which arise under the Regulations. SEI has already conducted a wide range of information and awareness campaigns and, later this Autumn, will engage in a further comprehensive advertising campaign to remind buyers of their rights and vendors of their obligations under the Regulations. In addition, the Renewed Programme for Government provides for the introduction of a mandatory requirement for the display of BER ratings where properties are advertised for sale or letting.
229. Deputy James Bannon asked the Minister for the Environment, Heritage and Local Government when he will publish his review in relation to the three types of grants that cur[214]rently exist under the one scheme for older persons and people with disabilities; if he will provide a simplified application form; and if he will make a statement on the matter. [36475/09]
Minister of State at the Department of the Environment, Heritage and Local Government (Deputy Michael Finneran): Earlier this year, my Department commissioned the Centre for Housing Research to undertake an evaluation of the revised suite of Housing Adaptation Grants for Older People and People with a Disability, which were introduced on 1 November 2007. The evaluation aims to determine the effectiveness of the revised schemes in providing a more accessible framework of grant assistance to applicants, identify issues influencing the effectiveness of the schemes in meeting the housing needs of older people and people with a disability and to make recommendations for the future operation of these schemes within available resources. I expect to receive the evaluation report in late November and to publish it as soon as possible after considering its recommendations.
230. Deputy Leo Varadkar asked the Minister for the Environment, Heritage and Local Government his views on the common pool for recruitment to promotional positions in local authorities amongst others; if he will provide more promotional positions to open competition; and if he will make a statement on the matter. [36482/09]
Minister for the Environment, Heritage and Local Government (Deputy John Gormley): The Common Recruitment Pool system, which has been in operation for more than 20 years, provides for the filling of posts at Grades V to VII in local authorities and other relevant agencies by competition confined to Local Authorities, Health Boards, Vocational Education Committees, Institutes of Technology and certain other health and local government agencies. Since 1 January 2007, arrangements are in place for 20% of posts at Grades V to VII to be filled by open competition.
A commitment under Towards 2016 to introduce a graduate entry level to local authorities is currently being progressed. Issues relating to the achievement of these commitments are currently being discussed with the relevant unions and staff interests. A significant Programme of Public Sector Reform is also now included in the Renewed Programme for Government including new initiatives in relation to hiring and promotion criteria, and increased open competition for senior Public Service appointments.
231. Deputy Leo Varadkar asked the Minister for the Environment, Heritage and Local Government if there is a statutory impediment that would prevent local authorities from informing councillors of scheduled pre-planning discussions before they take place and from allowing councillors from the relevant local area to attend these discussions either as observers or advocates for the public and community interest; and if he will make a statement on the matter. [36491/09]
Minister for the Environment, Heritage and Local Government (Deputy John Gormley): Section 247 of the Planning and Development Act 2000 provides that a person who has an interest in land and who intends to make a planning application may, with the agreement of the planning authority concerned (which shall not be unreasonably withheld), enter into consultations with the planning authority in order to discuss any proposed development in relation to the land and the planning authority may give advice to that person regarding the proposed application. The section also provides that, in any such consultation, the planning [215]authority must advise the person concerned of the procedures involved and the requirements of the permission regulations, and must also indicate the relevant objectives of the development plan which may have a bearing on the decision of the planning authority.
A planning authority must also keep a record in writing of any consultations under this section that relate to a proposed development, including the names of those who participated in the consultations, and that a copy of such record shall be placed and kept with the documents to which any planning application in respect of the proposed development relates. Section 247 makes no reference to the matter of informing elected members about scheduled pre-application consultations or to the attendance of members at such consultations.
232. Deputy Leo Varadkar asked the Minister for the Environment, Heritage and Local Government his views on the payment of bonuses to local authority officials; and if he will make a statement on the matter. [36492/09]
Minister for the Environment, Heritage and Local Government (Deputy John Gormley): Following the recommendation of the Review Body on Higher Remuneration in the Public Sector (Part 2 of Report No.38 of 25 September 2000)a scheme of Performance Related Awards was introduced in the local authority sector for Managers, Assistant Managers and Directors of Services commencing with the calendar year 2003. The purpose of the scheme was to encourage and reward excellence within the sector. Under the scheme, participants prepare a statement of objectives at the beginning of the year and a self-assessment of performance at the end of the year. Objectives and assessments are subject to approval by the Committee for Performance Awards (CPA), who also make the final determination of the amounts on awards. The pool for performance awards was set at 10% of the pay bill for the group concerned and with individual participants eligible to receive payments of up to 20% of pay.
Details of awards made under the scheme are contained in the annual reports of the CPA which are available in the Oireachtas Library. Awards were defined in terms of their distribution as a percentage of pay, the range of monetary values, and the number of recipients. Awards were made each year from 2003 to 2007. No performance awards have been made in respect of 2008. The scheme for the Local Government Sector is currently suspended.
233. Deputy Aengus Ó Snodaigh asked the Minister for the Environment, Heritage and Local Government the number of people who have been officially removed from local authority housing lists during each of the past five years for refusing accommodation offered by the local authority; and if he will make a statement on the matter. [36515/09]
Minister of State at the Department of the Environment, Heritage and Local Government (Deputy Michael Finneran): Under Section 11 of the Housing Act 1988, as amended, the management of the housing waiting list and allocation of tenancies in local authority dwellings is a matter for the local authority concerned. The number of households on a local authority’s waiting list continuously fluctuates as households on the list are allocated housing, others moved from the list, and new households apply for housing support. My Department does not hold information in relation to the numbers currently on waiting lists in local authorities or the numbers of people who have been removed from the lists.
234. Deputy Leo Varadkar asked the Minister for the Environment, Heritage and Local [216]Government his views on exempting public representatives from paying the fee to make an observation on a planning issue to the council and An Bord Pleanála; and if he will make a statement on the matter. [36522/09]
Minister for the Environment, Heritage and Local Government (Deputy John Gormley): The fee for making submissions or observations to a planning authority in respect of a planning application is €20. It was introduced in the Planning and Development Act 2000 and the Planning and Development Regulations 2001. Since the enactment of the 2000 Act, planning authorities are statutorily obliged to acknowledge submissions on planning applications and to consider those submissions before making decisions on planning applications. Persons who make submissions are also entitled to be notified of:
the decision of the planning authority;
an appeal against the decision of the planning authority.
As stated in my Department’s Development Management Guidelines, a public representative does not have to pay the fee when making an enquiry with a planning authority as to the position regarding an application or when supporting or objecting to the application in general terms without elaborating on the grounds of the application or on a submission by an observer. However, where a public representative makes a formal submission, i.e. elaborates on the grounds of an application or a submission or raises a substantive new issue, the submission cannot be considered by the planning authority unless it is accompanied by the appropriate fee. I consider this reasonable in view of the requirements on the planning authority as set out above.
The fee for making submissions or observations to An Bord Pleanála in respect of a planning appeal is €50. However, it should be noted that where a person has already made a submission to the planning authority on the application, there is no need for him/her to make a further submission as the Board will consider the entire planning authority file, including all submissions or observations received. There are no proposals to amend these provisions at the present time.
235. Deputy Jack Wall asked the Minister for the Environment, Heritage and Local Government if an Irish citizen who is married to a citizen of another country, can apply to their local authority, in which area they were born, for the tenancy of a local authority house; and if he will make a statement on the matter. [36530/09]
Minister of State at the Department of the Environment, Heritage and Local Government (Deputy Michael Finneran): The assessment and allocation of an individual household for social housing support is a matter for the local authority concerned. Under section 11 of the Housing Act 1988, I am precluded from being involved in a decision by a housing authority as to whether a particular household is eligible for support and indeed the allocation of that support. In relation to general guidance given by my Department to local authorities regarding eligibility for local authority housing, there is a general requirement that all members of an applicant’s household must have appropriate residency status, which entitles the individual members of that household to remain in the country. In the context of determining what [217]particular form of residency status is required, my Department is guided by the Department of Justice, Equality and Law reform.
236. Deputy Jack Wall asked the Minister for the Environment, Heritage and Local Government the guidelines to which families have to adhere under local authority legislation in relation to anti-social behaviour or actions (details supplied); and if he will make a statement on the matter. [36533/09]
Minister of State at the Department of the Environment, Heritage and Local Government (Deputy Michael Finneran): The tenancy agreement for dwellings let by housing authorities under the Housing Acts generally contains provisions in relation to anti-social behaviour. Under the Housing (Miscellaneous Provisions) Act 2009 (“the 2009 Act”) there is a requirement that specific terms and conditions be set out in the tenancy agreement prohibiting anti-social behaviour in, or in the vicinity of, the dwelling by the tenant or a household member or any other person residing at or lawfully in the dwelling. Tenancy agreements in respect of leased properties also contain provisions relating to anti-social behaviour.
Under the Housing (Miscellaneous Provisions) Act 1997, a local authority tenant, or the local authority itself in certain circumstances, may apply to the District Court for an excluding order against an individual member of the household who is believed to be engaging in anti-social behaviour. The 2009 Act provides for an amendment of the 1997 Act to broaden the definition of anti-social behaviour to include behaviour that causes alarm, impairs the use or enjoyment of a person’s home or results in damage to or defacement of property.
In line with the generality of tenancies of private rented accommodation, tenancies entered into under the Rental Accommodation Scheme [RAS] are subject to the Residential Tenancies Act 2004. This Act prohibits a tenant from engaging in anti-social behaviour in, or in the vicinity of, a dwelling to which the Act applies and allows a landlord to terminate any tenancy where the tenant is engaging in or allowing others to engage in such behaviour, subject to a notice period of only 7 days in the case of serious anti-social behaviour or 28 days in the case of less serious but persistent behaviour. The Residential Tenancies Act also provides that a third party affected by anti-social behaviour may, subject to certain conditions, take a case to the Private Residential Tenancies Board against a landlord who has failed to enforce tenant obligations. Under section 25(5) of the 2009 Act, a housing authority may notify a landlord where it becomes aware of anti-social behaviour by a RAS tenant in contravention of the 2004 Act and the landlord is thereupon required, if he or she has not already done so, to terminate the tenancy in accordance with the 2004 Act.
Housing authorities also have statutory powers to refuse to sell a house under tenant purchase and affordable arrangements to a person the authority has reason to believe is or has been engaged in anti-social behaviour or where a sale to that person would not be in the interest of good estate management. The 2009 Act makes provision to extend this to cover sales under the new schemes of incremental purchase and tenant purchase of apartments.
The Centre for Housing Research has also produced good practice guidelines on preventing and combating anti-social behaviour and has organised training courses for local authorities in this regard. Furthermore, I will commence shortly section 35 of the 2009 Act, which requires the elected members of each housing authority to adopt an anti-social behaviour strategy. This strategy must include procedures for making an anti-social behaviour complaint to a housing authority and details of initiatives for preventing and reducing anti-social behaviour in the housing authority’s own housing stock. Criminality associated with anti-social behaviour is addressed under the Criminal Justice Acts, responsibility for which rests with my colleague, the Minister for Justice, Equality and Law Reform.
237. Deputy Denis Naughten asked the Minister for the Environment, Heritage and Local Government the conclusions reached following a recent meeting (details supplied); the date and location of the meeting; and if he will make a statement on the matter. [36545/09]
Minister for the Environment, Heritage and Local Government (Deputy John Gormley): Minister Finneran and I have had several discussions in regard to turf-cutting in designated raised bogs. We recently considered the issue of ensuring that the views of all parties, including those directly affected by any restrictions on turf cutting, are reflected in deliberations on the matter. This will be considered further by the Inter Departmental Working Group that I have established to advise me on the cessation of turf cutting in these sites.
238. Deputy Denis Naughten asked the Minister for the Environment, Heritage and Local Government if he will furnish a reply to correspondence (details supplied); the reason for the three month delay in responding; and if he will make a statement on the matter. [36546/09]
Minister for the Environment, Heritage and Local Government (Deputy John Gormley): The correspondence referred to in the question was acknowledged but a full response has not yet issued. Aspects of the correspondence are relevant to the work of the Inter-Departmental Working Group on the Cessation of Turf Cutting in Designated Areas and these have been referred to it for its consideration, along with other submissions received. The detailed technical and scientific issues raised in the correspondence do not fall within the terms of reference of the Inter-Departmental Group. My Department has examined these issues and I expect to be in a position to provide a response in the near future.
239. Deputy Fergus O’Dowd asked the Minister for the Environment, Heritage and Local Government the fees charged by local authorities for each area in respect of Part V affordable housing; and if he will make a statement on the matter. [36548/09]
Minister of State at the Department of the Environment, Heritage and Local Government (Deputy Michael Finneran): The administration and processing of applications under the various affordable housing schemes is a matter for individual local authorities, and one in which my Department has no direct function. Accordingly, my Department does not have detailed information on the range of fees applied by individual authorities in providing access to prospective purchasers of affordable housing.
240. Deputy Leo Varadkar asked the Minister for the Environment, Heritage and Local Government the cost of official domestic travel including all transport costs, accommodation, meals and other incidentals incurred by himself and the Ministers of State at his Department in 2007, 2008 and to date in 2009; and if he will make a statement on the matter. [36564/09]
Minister for the Environment, Heritage and Local Government (Deputy John Gormley): The cost of official domestic travel incurred by me and the Ministers of State at my Department during 2007, 2008 and to date in 2009 is as follows:
| Year | 2007 | 2008 | 01 Jan – 13 Oct 2009 |
|---|---|---|---|
| Cost | €79,245.59 | €120,071.01 | €49,412.07 |
241. Deputy Bernard J. Durkan asked the Minister for the Environment, Heritage and Local Government if it is expected to allocate the necessary funding to Kildare County Council to enable the Ballyna group water scheme to proceed in the coming year; and if he will make a statement on the matter. [36571/09]
Minister for the Environment, Heritage and Local Government (Deputy John Gormley): The Ballyna Regional Water Supply Scheme is included for funding in my Department’s Water Services Investment Programme 2007 — 2009, at an estimated cost of €11.5 million. My Department awaits the submission of Kildare County Council’s brief for the appointment of consultants to prepare a Preliminary Report for the scheme.
Local authorities were asked in July 2009 to submit an assessment of needs for water and sewerage services to my Department by the end of next week. These assessments will form a key input to the development of the 2010 to 2012 Water Services Investment Programme, which it is anticipated will be published in early 2010. In conducting their assessments, local authorities have been asked to prioritise schemes and contracts for progression over the coming years based on key environmental and economic criteria. The Department is awaiting the finalisation of this process in order to determine the priority to be attached to schemes, including Kildare County Council’s proposals for the Ballyna scheme.
242. Deputy Ciarán Lynch asked the Minister for the Environment, Heritage and Local Government when legislation regarding dog breeding establishments will be brought before Dáil Éireann; and if he will make a statement on the matter. [36592/09]
Minister for the Environment, Heritage and Local Government (Deputy John Gormley): Work is underway in drafting an amendment to the Control of Dogs Acts and I hope to publish my proposals in the near future. The draft Bill proposes to give statutory effect to the recommendations of the Working Group that had been established to review the management of dog breeding establishments. The Working Group recommended that a dog breeding establishment be defined as ‘a premises containing more than 5 female dogs, aged over 4 months, with breeding potential’. The draft Bill proposes that dog breeding establishments be required to register with the relevant local authority, that they pay a registration fee and that they meet a minimum set of veterinary, welfare and other standards, together with some associated requirements. I intend to publish the proposed legislation as soon as possible.
243. Deputy Ciarán Lynch asked the Minister for Communications, Energy and Natural Resources the local authorities who have put in place an energy efficiency plan to date in 2009; the action he will take with regard to local authorities who do not have a plan in place; and if he will make a statement on the matter. [36594/09]
Minister for Communications, Energy and Natural Resources (Deputy Eamon Ryan): The Government has set a target of achieving 20% energy efficiency savings across the economy in 2020. Recognising the opportunity for the public sector to fulfil an exemplary role in this context, we have set a further, ambitious target of achieving 33% savings on energy use across this sector, also in 2020. On 8 May this year I published the National Energy Efficiency Action Plan (NEEAP) which sets out 90 actions that Government are either already taking or will [220]take in the period to 2020 to achieve our energy efficiency targets. Importantly, the NEEAP contains a list of specific actions designed to improve the energy efficiency of the public sector.
Sustainable Energy Ireland (SEI) is currently rolling out a programme which will assist the Public Sector, including local authorities, in achieving its targets, whilst demonstrating to the wider community the benefits of energy efficiency. This will be achieved through a mix of financial support, advice, assessments and training, best practice dissemination and group supports. SEI will support our public sector institutions in identifying possible energy efficient measures to be undertaken and provide guidance on drafting individual energy efficiency action plans. Central to this work will be the reporting by public sector bodies of actions taken to reduce energy usage. Given the inter-relation between the energy efficiency and climate change agendas, my Department will forge close links with the Department of the Environment, Heritage and Local Government in order to minimise the administrative burden on public sector bodies.
I will soon convene a high-level Public Sector Energy Efficiency Working Group, comprising representatives of all key public sector institutions, including of course, the local authorities. This Group will oversee the implementation of the public sector energy efficiency agenda.
244. Deputy Leo Varadkar asked the Minister for Communications, Energy and Natural Resources the costs incurred by his constituency office and the constituency offices of the Ministers of State at his Department for leaflet design, production, delivery and other related costs in 2007, 2008 and to date in 2009; and if he will make a statement on the matter. [36375/09]
Minister for Communications, Energy and Natural Resources (Deputy Eamon Ryan): There are no costs incurred by my Department in relation to leaflet design, production and delivery for my constituency office or constituency offices of the Ministers of State for the years 2007, 2008 and to date in 2009. Costs incurred in this regard are reimbursed from the One-Stop-Shop in the Houses of the Oireachtas. Full details are available from the Houses of the Oireachtas.
245. Deputy Leo Varadkar asked the Minister for Communications, Energy and Natural Resources the total cost of foreign travel, including flights, accommodation, food, subsistence, travel and other incidental costs, incurred by the Minister and Ministers of State at his Department in 2007, 2008 and to date in 2009. [36389/09]
Minister for Communications, Energy and Natural Resources (Deputy Eamon Ryan): The expenses related to overseas travel paid by my Department to my Ministers of State and I since the establishment of the Department in June 2007 are detailed in the following table. Please note that Minister of State Lenihan was assigned to my Department on 22nd April 2009 and has not incurred expenditure in respect of foreign travel to date.
| Minister | 2007 | 2008 | 2009 | Total |
|---|---|---|---|---|
| € | € | € | € | |
| Eamon Ryan | 11,020 | 29,454 | 13,901 | 54,375 |
| Tony Killeen | 1,685 | 17,386 | — | 19,071 |
| Sean Power | — | 3,444 | 747 | 4,191 |
246. Deputy Leo Varadkar asked the Minister for Communications, Energy and Natural Resources the cost of official domestic travel including all transport costs, accommodation, meals and other incidentals incurred by himself and the Ministers of State at his Department in 2007, 2008 and to date in 2009; and if he will make a statement on the matter. [36559/09]
Minister for Communications, Energy and Natural Resources (Deputy Eamon Ryan): In the time available it has not been possible to collate the information requested by the Deputy. The information will be provided to the Deputy as soon as possible.
247. Deputy Denis Naughten asked the Minister for Agriculture, Fisheries and Food when a person (details supplied) in County Roscommon will receive their REPS 4 payment; the reason for the delay; and if he will make a statement on the matter. [36372/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): REPS 4 is a measure under the current Rural Development Programme 2007–13 and is subject to EU Regulations which require detailed administrative checks on all applications, including plan checks, to be completed before the first 2009 payments issue. Processing of applications, including the application from the person named, has commenced to facilitate the release of payments at the earliest possible date.
248. Deputy Leo Varadkar asked the Minister for Agriculture, Fisheries and Food the costs incurred by his constituency office and the constituency offices of the Ministers of State at his Department for leaflet design, production, delivery and other related costs in 2007, 2008 and to date in 2009; and if he will make a statement on the matter. [36373/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): There are no costs to the Department of Agriculture, Fisheries and Food in relation to Constituency office costs for leaflet design, production and delivery.
249. Deputy Leo Varadkar asked the Minister for Agriculture, Fisheries and Food the total cost of foreign travel, including flights, accommodation, food, subsistence, travel and other incidental costs, incurred by the Minister and Ministers of State at his Department in 2007, 2008 and to date in 2009. [36387/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): The information requested is being compiled and will be made available as soon as possible.
250. Deputy Leo Varadkar asked the Minister for Agriculture, Fisheries and Food the cost incurred by his constituency office and the constituency offices of Ministers of State at his Department in relation to political websites in 2007, 2008 and to date in 2009; and if he will make a statement on the matter. [36528/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): There are no costs to the Department of Agriculture, Fisheries and Food in relation to Constituency office costs for political websites.
251. Deputy Fergus O’Dowd asked the Minister for Agriculture, Fisheries and Food the compensation package offered to qualifying applicants for the pork recall compensation scheme, including the deciding criteria for acceptance into the scheme; the amount paid to date in 2009; the persons to whom it was paid; and if he will make a statement on the matter. [36536/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): The agreement concluded with pig processors in December 2008 involved making available a facility of €180 million from the public finances to assist processors in funding the recall and destruction of certain pork products from the market and product in storage. The criteria for acceptance into the Scheme are set out in the Scheme document published by my Department on 24 December 2008, a copy of which has already been provided directly to the Deputy by my office.
To date, a total of €69m has been paid to qualifying applicants under the Scheme, €35m in 2008 and €34m to date in 2009. Of this, €30m has been paid to primary processors and €39m to secondary processors. Payments are still continuing and it is not possible to provide a final list of all beneficiaries, or the total sums involved. However, a list of the applicants who have received payment to date is being supplied separately to the Deputy.
252. Deputy Leo Varadkar asked the Minister for Agriculture, Fisheries and Food the costs incurred by his constituency office, and the constituency offices of Ministers of State in his Department, in relation to the advertising of clinics, public meetings and other events and services in 2007, 2008 and to date in 2009; and if he will make a statement on the matter. [36556/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): There are no costs to the Department of Agriculture, Fisheries and Food in relation to Constituency office costs for advertising of clinics, public meetings and other events.
253. Deputy Leo Varadkar asked the Minister for Agriculture, Fisheries and Food the cost of official domestic travel including all transport costs, accommodation, meals and other incidentals incurred by himself and the Ministers of State at his Department in 2007, 2008 and to date in 2009; and if he will make a statement on the matter. [36557/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): The various costs requested are being assembled and the information will issue directly to the Deputy as soon as possible.
254. Deputy Bernard J. Durkan asked the Minister for Agriculture, Fisheries and Food the steps he proposes to take to address the issue of collapsing prices in the agri sector with particular reference to the fact that costs remain disproportionately high; and if he will make a statement on the matter. [36599/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): There is no doubt that certain parts of the industry are facing significant challenges this year, although, some reduction in input prices should help to soften the impact of these difficulties. In the dairy [223]sector I have successfully pressed for action at EU level to support market prices. I continue to work with colleagues from other Member States to ensure the maximum possible support for the sector.
For the medium term outlook the European Commission forecast a gradual recovery aided by growth in global food demand due to population increase and also a longer-term decline in the growth of food-crop productivity. With this in mind work is being advanced on a new development plan for the agrifood sector for the period to 2020. It will focus on the critical issues of competitiveness, the challenges from the global economic downturn, currency fluctuations, climate change and how best to maximise the opportunities arising from a growing international food and energy crop markets.
255. Deputy Bernard J. Durkan asked the Minister for Agriculture, Fisheries and Food when he proposes to restore the REP scheme in full; and if he will make a statement on the matter. [36600/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): REPS 4 was closed to new applicants in July against the background of the situation in the public finances, the resources available to the Department and the substantial increase, over the past year, in the number of REPS participants. Almost 17,000 applications were received up to the closing date of 15 May for 2009, and further applications which were received up to the time of closure will be processed as applications for 2010. Payments due to REPS farmers for 2009 will be the highest ever and all participants already in REPS will continue to receive annual payments until their current contracts run their course.
I plan to introduce a new agri-environment scheme in 2010 which will reduce compliance costs to participants and which will provide a menu of targeted actions from which farmers may choose. Funding for the new scheme will include the additional modulation funds which I ensured will be retained for the benefit of Irish farmers in the negotiations on the CAP “Health Check”. It will also include additional matching Exchequer funding. The details of the scheme are in the process of being finalised and will require the approval of the European Commission, which has already received an outline of our proposals.
256. Deputy Bernard J. Durkan asked the Minister for Agriculture, Fisheries and Food the number of new markets identified for agricultural produce in the beef, lamb, pig meat and dairy sectors; the number of markets that have ceased; and if he will make a statement on the matter. [36601/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): Irish beef exports in recent years have been targeted at the high-value UK and Continental EU markets, with these destinations accounting for 99% of exports in 2007 and 98% in 2008. Efforts to secure alternative market outlets have continued in recent years and have seen agreements on market access reached with Vietnam, Saudi Arabia, Algeria, South Africa and Indonesia but exports have remained concentrated on the EU markets.
There has been a relatively stable pattern to the destination markets for Irish sheepmeat in recent years. In both 2007 and 2008, in excess of 99% of Irish sheepmeat exports was accounted for by nine countries, namely: France, United Kingdom, Sweden, Germany, Italy, Portugal, Belgium, Denmark and the Netherlands. Cultural differences regarding the consumption of sheepmeat mean that opportunities to increase sales to other European countries are limited [224]while sales outside the EU are negligible. Bord Bia continues its effort to maintain and build market share in existing markets and to be in a position to develop any new opportunities that may arise in the future.
With regard to pigmeat, in addition to the other EU Member States, Ireland also exports to approximately 21 international markets including Japan, China and the U.S. Initial communications have begun with New Zealand, Australia and Vietnam with a view to gaining market access to these countries. Russia and China are currently closed to Irish pigmeat due to last December’s dioxin problem. We are continuing our efforts to regain access to these countries through the provision of information and on-going contacts.
Irish dairy products are exported to other EU Member States and to over 100 countries worldwide. The amount of exports to any particular destination varies in accordance with changes in the supply/demand dynamics in particular regions of the world and in respect of the various dairy products involved. In overall terms, Ireland’s dairy exports amounted to €2.2 billion in 2008. The UK represented the largest single share of export sales with 32%. The rest of the EU accounted for 48%, while North America and Africa accounted for 6% and 7% respectively. As international demand changes there will be an increasing emphasis on consumer food markets, particularly in the EU, US and high growth emerging economies, together with strategically expanding marketing and distribution capability worldwide. My Department will continue to work with Bord Bia and the Department of Foreign Affairs and the industry to identify and develop other potential markets.
257. Deputy Bernard J. Durkan asked the Minister for Agriculture, Fisheries and Food his plans for the future development of the beef, sheep, pig, lamb, cereal and dairy sectors with a view to making the necessary provision for the future of the industry, bearing in mind the competition from third countries; and if he will make a statement on the matter. [36602/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): It is my job as Minister to plan to help the agri food sector to meet all challenges to all sectors in the coming decade. In order to do this the sector must improve competitiveness so that it can capitalise on the inevitable global recovery and meet the challenges in the coming decade. Addressing the agri food industry’s capacity to compete successfully at home and overseas has assumed a new urgency and my belief is that a new development plan for the period to 2020 is required to maintain the impetus gained from the very successful Agri-Vision 2015 strategy. Work is being advanced on this plan which is focusing on the critical issue of competitiveness, the challenges from the global economic downturn, currency fluctuations, climate change and how best to maximise the opportunities arising from a growing international food and energy crop markets. This plan will cover all of the sectors referred to by the Deputy.
258. Deputy Bernard J. Durkan asked the Minister for Agriculture, Fisheries and Food the discussions he has had or proposes to have with his EU colleagues with the objective of adopting a short, medium and long-term plan for the agricultural sector, bearing in mind the need to provide for security of supply, reasonable income for the producer and the need for the EU to be self-sufficient in so far as possible in the agriproduction sector; and if he will make a statement on the matter. [36603/09]
[225]Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): According to the European Commission’s latest statistics, the EU’s overall trade in agricultural produce is fairly close to balance with its total trade of almost €153 billion in 2007, split between imports of €77.4 billion and exports of €75.1 billion. Broadly speaking, the EU is a net importer of raw products such as tropical products, certain fruit and vegetables and oils/oilseeds while it is a net exporter of more processed products such as food preparations and beverages.
European food security and agricultural production issues are dealt with through the Common Agricultural Policy (CAP), which is constantly evolving to meet the demands of increased globalisation, including our responsibilities under the WTO, and the need to remain competitive on EU and world commodity markets. The CAP has responded to change through a series of reforms in recent decades. In the initial discussions on the shape of the CAP after 2013, I and other Ministers, have emphasised the crucial importance of ensuring the security of supply of safe, high quality food for European consumers
259. Deputy Bernard J. Durkan asked the Minister for Agriculture, Fisheries and Food if he has had discussions with his EU colleagues with a view to ensuring the future of the food production sector throughout the EU; and if he will make a statement on the matter. [36604/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): There have been a number of discussions at EU Council level on the future of European food production in the context of the CAP after 2013. This issue has also been to the forefront of bilateral contacts with other Member States. My own view on the future of EU food production, which I have expressed at meetings of the Council and bilaterally to my Ministerial colleagues, is that we must maintain a strong agricultural production base in the European Union to take account of the challenges ahead in meeting increased demands for food. Any reduction in food production in the EU would be taken up elsewhere where less efficient production systems exist and would result, inter alia, in a heavier carbon footprint. The EU must also undertake food production and distribution in a manner that is sustainable in all its dimensions — economically, socially and environmentally.
There will be major challenges ahead from climate change, increased competition on world and EU markets, the international recession and other factors. We must ensure that we have the capacity to cope with the challenges and fully exploit the opportunities as they emerge. To do so our whole sector, from farm to fork, must be highly efficient and competitive. It must also be innovative, producing the products that changing consumer tastes demand, and it must be relentlessly focused on quality and safety. To achieve these objectives, there is a continuing need for an active and appropriately resourced European agricultural policy. That policy needs to recognise the role that a cohesive agriculture and rural development policy can play in addressing future energy needs, addressing environmental concerns and providing a secure and sustainable food supply in Europe.
260. Deputy Bernard J. Durkan asked the Minister for Agriculture, Fisheries and Food the countries within the EU currently involved in sugar production from sugar beet; and if he will make a statement on the matter. [36605/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): The 2006-2009 scheme for the restructuring of the European sugar industry, which was implemented as part of the reform of the EU sugar regime, resulted in the EU sugar quota being reduced by 5.2 [226]million tonnes to 13.3 million tonnes. EU sugar production is now concentrated in 18 Member States (as opposed to 23 before the reform) which enjoy favourable agronomic conditions. They are Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Italy, Lithuania, Netherlands, Poland, Romania, Slovakia, Spain, Sweden and United Kingdom. Over 75% of production is accounted for by 7 of these Member States, namely (in order of size of quota) France, Germany, Poland, UK, Netherlands, Belgium and Italy.
261. Deputy Bernard J. Durkan asked the Minister for Agriculture, Fisheries and Food his plans to ensure a reasonable standard of income throughout the agricultural production sector with particular reference to the future needs in terms of food production here and throughout the EU; and if he will make a statement on the matter. [36606/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): Agricultural production in Ireland and the EU and farm income must be viewed in the context of a reformed and evolving Common Agricultural Policy (CAP), which has placed much more emphasis on market orientation and competitiveness. Following the decoupling of direct payments from production, farmers can now take advantage of the freedom to farm for the market, allowing them to focus on meeting the requirements of the consumer in a competitive manner.
In the context of discussions on the future of the CAP after 2013, I have repeatedly said that the EU must maintain a strong agricultural production base in the European Union to take account of the challenges ahead in meeting increased demands for food. The EU must also undertake food production and distribution in a manner that is sustainable in all its dimensions — economically, socially and environmentally. There will be major challenges ahead from climate change, increased competition on world and EU markets, the financial crunch and other factors. We must ensure that we have the capacity to cope with the challenges and fully exploit the opportunities as they emerge. To do so our whole sector, from farm to fork, must be highly efficient and competitive
262. Deputy Bernard J. Durkan asked the Minister for Agriculture, Fisheries and Food the extent to which the costs to the dairy producer here compare with those in the UK, France and other EU countries; and if he will make a statement on the matter. [36607/09]
264. Deputy Bernard J. Durkan asked the Minister for Agriculture, Fisheries and Food the extent to which milk prices to the dairy producer here compare with those in the UK, France and other EU countries; and if he will make a statement on the matter. [36609/09]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): I propose to take Questions Nos. 262 and 264 together.
Analysis of Irish dairy farming shows a wide variation in performance efficiencies between high and low cost producers. There is a difference of approximately 56% in the cost base between those with the lowest production cost and those with the highest, amounting to 9c/litre. Production costs vary across the EU, but Ireland has an advantage compared to other Member States through our largely grass based systems of production.
Dairy farmers incomes are comprised of the market price paid for milk and direct income support from the EU. Market forces have a major influence on the price paid to farmers for milk. World market prices determine the returns received by dairy processors and these in turn [227]are reflected in the price paid to farmers. In essence, farm gate prices normally reflect the returns from international markets of dairy product sales. Ireland’s peripheral geographic location and highly seasonal grass based production curve has resulted in a dairy production profile heavily based on storable product. Those commodity products, such as butter and milk powders, are low margin products and this is reflected in the milk price.
The following table below shows the milk prices per 100kg for the EU27 member states for August of 2009.