Vol. 686 Wednesday, No. 3 1 July 2009 DI´OSPO´ IREACHTAI´ PARLAIMINTE PARLIAMENTARY DEBATES DA´ IL E´ IREANN TUAIRISC OIFIGIU´ IL—Neamhcheartaithe (OFFICIAL REPORT—Unrevised) Wednesday, 1 July 2009. Leaders’ Questions ……………………………… 615 Ceisteanna — Questions Taoiseach ………………………………… 621 Visit of Australian Delegation…………………………… 637 Requests to move Adjournment of Da´il under Standing Order 32 ……………… 637 Order of Business ……………………………… 638 Message from Seanad ……………………………… 649 Health Insurance (Miscellaneous Provisions) Bill 2008: Report and Final Stages ………… 649 Ceisteanna — Questions (resumed) Minister for Health and Children Priority Questions …………………………… 658 Other Questions …………………………… 668 Adjournment Debate Matters …………………………… 679 Health Insurance (Miscellaneous Provisions) Bill 2008: Report and Final Stages (resumed) … … 680 Land and Conveyancing Law Reform Bill 2006 [Seanad]: Report Stage …………… 705 Private Members’ Business Commission of Inquiry: Motion (resumed) …………………… 730 Land and Conveyancing Law Reform Bil 2006 [Seanad]: Report Stage (resumed) and Final Stage … 752 Adjournment Debate Long-Term Illness Scheme ………………………… 772 Sports Funding ……………………………… 773 Register of Electors …………………………… 774 Schools Building Projects …………………………… 776 Questions: Written Answers …………………………… 779 DA´ IL E´ IREANN ———— De´ Ce´adaoin, 1 Iu´il 2009. Wednesday, 1 July 2009. ———— Chuaigh an Ceann Comhairle i gceannas ar 10:30 a.m. ———— Paidir. Prayer. ———— Leaders’ Questions. Deputy Enda Kenny: Yesterday we got confirmation of 120 job losses in Bausch and Lomb in Waterford, 80 job losses in ICT Eurotel Marketing Limited in Belmullet and 100 job losses in Meadow Meats in Rathdowney. The Taoiseach knows the figures that will be released by the CSO at 11 o’clock for the live register for June. Will he tell the House what the figures are? The Taoiseach: The figures are due out at 11 o’clock. When seasonal factors are taken into account, the live register for June is estimated at 413,500, a month on month increase of 11,400, up 2.8% since May 2009. It is the slowest rate of increase since January. Obviously it is still clear that the unemployment situation continues to be affected as we implement the three necessary aspects of recovery — bringing order to the public finances, improving competi- tiveness in the economy and reforming the banking system. Deputy Enda Kenny: The Civil Service-speak, that this is the slowest rate of increase, demon- strates just where we are. In January the rate of increase was 33,000, in February it was 26,000, in March it was 20,000, in April it was 15,000, in May it was 13,000 and in June it was 11,400. This economy is in crisis. It is a long time since one of the Taoiseach’s predecessors said that if unemployment went over 100,000 the Government should resign. Yesterday the CSO figures also showed that capital expenditure in the economy had declined by one third quarter on quarter. This morning the former Minister of State at the Department of Finance, Tom Parlon, said that the construction industry is in crisis. It seems the Department of Finance is in a state of paralysis. The Taoiseach is aware of the importance of the creation and protection of jobs. The former secretary at the Department of Finance and historical figure, Dr. T.K . Whitaker, speaking at the commemoration for Sea´n Lemass, said the protection of jobs is critical. It now appears \12 billion will be slashed from capital expenditure in the period 2009-13. Obviously, some projects must be cut because they all require funding but these involve men and women working all over the country, subcontractors, service providers to subcontractors and providers to main contracts. There is real crisis, exacerbated by the fact that many suppliers of service and con- tractors in the construction area are now in complete limbo in the pre-NAMA phase because the banks no longer care and there is no money forthcoming. The current forecast for capital expenditure projects in 2009 is \7.3 billion. Will the Taoiseach confirm that will be delivered? For 2010 the forecast for capital expenditure is \6.6 billion. We 615 Leaders’ 1 July 2009. Questions [Deputy Enda Kenny.] heard this morning from the Construction Industry Federation that all that appears to exist are promises. This is a firm commitment, reduced from \9.1 billion announced in the 2008 budget. Will the Taoiseach confirm that in respect of capital expenditure programmes, for this year the commitment of \7.3 billion will stand and that for 2010 the commitment of \6.6 billion will stand? This is about maintaining jobs, creating infrastructure and retaining some semblance of movement in an economy that is in crisis. I am sure it pains the Taoiseach as a politician and former Minister for Finance that when he delivered his budgets, he knew the trends were heading in this direction. Will the Taoiseach confirm those figures will stand for 2009 and 2010? The Taoiseach: On the public capital programme, it is our intention to spend about 5% of GNP, one of the largest ratios in the developed world for capital spending as a proportion of total goods and services being provided in the State in any given year. The \7.3 billion rep- resents the equivalent of 5% of GNP, one of the highest ratios in the world. It is important that we continue that programme over the course of this year and I expect that money to be spent. It is also important to point out that thankfully the prices in tenders have decreased by 15% to 20% and therefore the volume of output we can get is clearly available in the same measure for 15% to 20% less. Next year, as based on the present budgetary strategy which is outlined by the Minister in the supplementary budget, we expect a spend in the region of \6.6 billion. It is important to point out that not alone will the money that is allocated be spent this year, for next year the arrangements are in place that all Departments can arrange for committal of up to 70% of spend during the course of this year going into next year. Many of these works are multi-annual in nature, such as roads and hospital programmes. It is important to point out that arrangements are in place for Departments to pre-commit next year’s spend, during the course of this year, at up to 70% of the ceiling that has been allocated to them. Deputy Eamon Gilmore: I was interested to hear the Taoiseach say that unemployment was rising but rising more slowly. That is the equivalent of saying we are sinking but sinking more slowly. We are sinking nevertheless. A total of 413,000 people out of work is a record, and the number has risen by about 200,000 since this time last year. We hear a lot of talk these days about cuts in public spending and various budgetary measures; we have had two budgets already this year. The cost of the extra unemployment can be assumed to be about \20,000 per job if we consider lost taxes and social welfare payments. All the measures taken in the April budget and the previous October budget — the income levies, pension levies and cuts in spend- ing programmes — have been wiped out by the increase in unemployment. We are talking about an additional cost of around \4 billion to the public purse as a result of that increase in unemployment, not to speak of the personal loss suffered by each individual who has lost his or her job in terms of lost income, lost hope and so on. I now turn to what is being done about it. If the Taoiseach is saying unemployment is rising more slowly, does he have an estimate of what it will be at the end of this year? I recall that he made a speech prior to the local and European elections in which he told the country he expected that rapid growth would return in 2010—— Deputy Pa´draic McCormack: Election speak. Deputy Eamon Gilmore: ——so I presume he has some idea of when unemployment is likely to peak and at what level. Can he tell us this? What is his answer to the comments made by the head of the Construction Industry Federation this morning that an additional 100,000 build- ing workers were expected to lose their jobs as a result of the decline in the capital programme? 616 Leaders’ 1 July 2009. Questions The Taoiseach: As I said, I take no pleasure from the fact that unemployment is rising in our country at any time. People have asked what the trends are and I am telling them what they have been from January to May. I am stating that as a fact. Deputy Pa´draic McCormack: There is no one left now to lose his job. The Taoiseach: One takes no pleasure whatever in anyone’s losing his or her job, but it is important to point out the trend. It is clear from the strategies outlined and the models that have been projected for Ireland’s economy based on the current world situation that unemploy- ment will continue to rise, unfortunately, before things get better. We must do everything we can in terms of short-term measures to help people who find themselves unemployed, but we must also fix the economy, and this means dealing with the situation through NAMA, as we are doing, to fix the banking system so we can get credit flowing again. We need to strengthen the balance sheets of the banks, remove the stressed assets from those balance sheets, and make sure investment money flows into the country to get credit going.