Vol. 695 Wednesday, No. 1 18 November 2009 DI´OSPO´ IREACHTAI´ PARLAIMINTE PARLIAMENTARY DEBATES DA´ IL E´ IREANN TUAIRISC OIFIGIU´ IL—Neamhcheartaithe (OFFICIAL REPORT—Unrevised) Wednesday, 18 November 2009. Visit of US Delegation……………………………… 1 Leaders’ Questions ……………………………… 1 Ceisteanna—Questions Taoiseach ………………………………… 6 Order of Business ……………………………… 18 Courts and Court Officers Bill 2009: From the Seanad ………………… 30 Message from Da´il……………………………… 35 Adoption Bill 2009 [Seanad]: Second Stage ……………………… 35 Ceisteanna—Questions (resumed) Minister for Foreign Affairs Priority Questions …………………………… 49 Other Questions …………………………… 60 Adjournment Debate Matters …………………………… 70 Message from Seanad ……………………………… 70 Adoption Bill 2009 [Seanad]: Second Stage (resumed) ………………… 70 Message from Seanad ……………………………… 104 Private Members’ Business International Human Trafficking: Motion (resumed) ………………… 104 Adjournment Debate Schools Building Projects …………………………… 127 Mid-West Task Force Report ………………………… 129 Hospital Accommodation…………………………… 131 Irish Language Placenames ………………………… 134 Questions: Written Answers …………………………… 137 DÁIL ÉIREANN DÍOSPÓIREACHTAÍ PARLAIMINTE PARLIAMENTARY DEBATES TUAIRISC OIFIGIÚIL OFFICIAL REPORT Imleabhar 695 Volume 695 Dé Céadaoin, 18 Samhain 2009. Wednesday, 18 November 2009. ———— Chuaigh an Ceann Comhairle i gceannas ar 10.30 a.m. ———— Paidir. Prayer. ———— Visit of US Delegation. An Ceann Comhairle: Before proceeding with Business, I wish on my own behalf and on behalf of the Members of Dáil Éireann to offer a Cead Mile Fáilte, a most sincere welcome to Ms Christine Quinn, Speaker of the New York City Council. I hope that you will find your visit enjoyable, successful and to our mutual benefit. Leaders’ Questions. Deputy Enda Kenny: I welcome Ms Quinn to Ireland. Before putting my question to the Taoiseach, I wish to say that my thoughts this morning are with the families of the four young women who died last night and with all the victims of last nights horrific car crash on the Mayo- Galway border, go ndéana Dia trócaire orthu. I listened carefully to the debate yesterday evening on the pre-budget position. It is obvious there is a fundamental difference between Government and Opposition parties in the approach to the forthcoming budget. It appears, given the scale of the financial disaster facing us, that the Government is consumed with book-keeping and cutback measures. Having travelled the country extensively, the clear message from businesses who continue to pay wages and struggle to remain in existence in competitive circumstances is that they want a break and assistance, where possible, to allow them continue with their commitment to keep our economy moving. In the run-in to yesterday’s debate, Minister after Minister stated that they would listen constructively to and take on board suggestions from Opposition parties. My comments this 1 Leaders’ 18 November 2009. Questions [Deputy Enda Kenny.] morning are in that light. The Fine Gael Party, having met directly with more than 1,200 to 1,500 business people yesterday put forward, through its spokesperson on finance, Deputy Bruton, the proposition to introduce a tax cut on employment. This tax cut would be funded in the manner outlined, namely, \900 million by way of a 20% cut at the lower rate and a 50% cut at the higher rate, which would affect 175,000 businesses and 1.7 million employees. The Taoiseach has repeatedly stated, as is his right, that he will do things his way, an approach which, it has been confirmed by Ministers, will result in the loss of a further 72,000 jobs next year. Fine Gael’s constructive suggestion is made in the interests of easing the crush- ing burden on employers, of making it easier for employers to retain employees and of ensuring those on the minimum wage and in receipt of low income remain outside the PRSI net. The proposal has been costed. In the spirit of what Ministers have been saying for the past three weeks, will the Taoiseach accept this proposal and implement it in the budget on 9 December? The Taoiseach: As Deputy Kenny stated, this matter was debated yesterday. Obviously, we will assess constructive proposals from any party in the House in respect of these matters. I do not wish to dismiss or guarantee the Deputy that Fine Gael’s proposal will feature in the taxation proposals from the Minister for Finance who will make the decisions in this regard, bring them before Cabinet following which they will be outlined to the Dáil on 9 December. We all recognise, in the context of the debate in terms of protection of employment, the need to avoid increasing marginal rates of tax if we want to maintain employment and to create further employment for the future. The pre-budget outlook for 2010 outlines that while we hope for growth in the second half of next year the prospect of rising unemployment remains until growth returns to the economy. We must do all we can to assist employers and are doing so in a range of ways. From our point of view, this is not simply a book-keeping exercise. It is about repositioning the country to be more competitive for the future. It is recognised by all sides of the House that corrections of the order of \4 billion are necessary. I agree the economic debate is not simply about that but, in the context in which we can move forward if we are to effect economic recovery, part of the pillar of that recovery is to restore order to the public finances. Being more competitive is obviously another issue. The Minister for Finance will assess all that was said in the debate, which was in the main constructive, and see what emerges. Deputy Enda Kenny: I hope the Taoiseach can go beyond that and examine carefully what is a well thought-out, well costed serious proposition to ease the burden on employers and to allow the creation of up to 30,000 extra jobs in the coming years. I call this “tax-cut employ- ment”. As Deputy Bruton pointed out yesterday, it would be funded by the introduction of a carbon tax, a windfall tax on the rip-off charges levied by power generators, which are estimated at \200 million, and the PRSI ceiling, which would still leave the \352 weekly exemption available to those who are lower paid or on a minimum wage. This would still leave the Govern- ment with \200 million extra for deficit reduction or other employment expenditure. I cannot repeat this strongly enough. The members of Cabinet are focused entirely on reach- ing the demands set by the Minister for Finance in their Departments and they are coming under pressure in this regard on a daily basis. However, far removed from the Cabinet room, as we speak, there are employers looking at their books and people who are concerned that they might not have jobs after Christmas. This proposal, which equates to a permanent tax cut on employment, should show employers that money saved in this way could make a massive difference in protecting employment while allowing them to invest for future job creation. It affects 1.7 million workers and 175,000 businesses. Whether they are in Donegal, Cork, Dublin 2 Leaders’ 18 November 2009. Questions or Wexford, all employers that pay out cheques at the weekend, whatever the rate of PRSI, will find this of benefit. This is something the Government can do on 9 December. It can send out the message that not only is it listening to constructive suggestions from Opposition parties, but it is prepared to implement them. We made suggestions previously in respect of freezing of rates, reductions in Government charges and the creation of 100,000 jobs through the Coveney plan for an economic recovery authority, but they were all rejected by Government. This is a serious, costed proposal. We are prepared to make our people available to Govern- ment to spell out clearly how this can work. The message can go out in advance of the budget. We are to lose another 72,000 jobs next year; that is almost a full crowd at Croke Park. Is the Taoiseach prepared to accept the constructive suggestion put forward by Fine Gael in the interests of so many workers and 175,000 businesses? Deputy Pádraic McCormack: He might. The Taoiseach: This Government is committed not simply to a book-keeping exercise, as the Deputy suggests, but to making sure the economy returns to growth as quickly as possible. Part of this is a correction in the public finances. With regard to taxation policy, this Government has always been committed to ensuring that we maximise the prospects for employment and allowing people to retain the greatest possible level of disposable income consistent with the provision of public services in a cost-effective and efficient way. We have set out five action areas for this. We must meet the short-term challenge of securing the enterprise economy and restoring competitiveness, which is the con- text in which the Fine Gael proposal is being made; we must build the ideas economy, because education and innovation have been shown to be key drivers of the economy. It is not just a question of the products and services we produce but how we produce them; we must enhance the environment and secure energy supplies. Productivity is enhanced by lowering carbon inputs in production; we must invest in critical infrastructure to enhance productivity; and we must make public service governance and regulation more efficient and effective. Trying to increase productivity across all sectors of the economy is the best means by which we can restore growth, incomes and standards of living in due course. It would be wrong to suggest, given the scale of the problems we face, that it is possible to do so without making the immediate short-term correction we are talking about.