Dáil Éireann

Vol. 737 Wednesday, No. 1 29 June 2011

DÍOSPÓIREACHTAÍ PARLAIMINTE PARLIAMENTARY DEBATES

DÁIL ÉIREANN

TUAIRISC OIFIGIÚIL—Neamhcheartaithe (OFFICIAL REPORT—Unrevised)

Dé Céadaoin, 29 Meitheamh 2011.

Leaders’ Questions ……………………………… 1 Requests to move Adjournment of Dáil under Standing Order 32 ……………… 9 Order of Business ……………………………… 10 Ceisteanna — Questions Taoiseach ………………………………… 18 European Council Meetings: Statements ……………………… 30 Ceisteanna - Questions (Resumed) Minister for Agriculture, Fisheries and Food Priority Questions …………………………… 52 Other Questions …………………………… 60 Adjournment Debate Matters …………………………… 69 Central Bank and Credit Institutions (Resolution) (No. 2) Bill 2011: Second Stage (Resumed) … … 70 Private Members’ Business An Bille um an Naou´ Leasu´ is Fiche ar an mBunreacht (Uimh. 3) 2011: An Dara Ce´im (Ato´ga´il) … 106 Twenty-ninth Amendment of the Constitution (No. 3) Bill 2011: Second Stage (Resumed) … … 106 Adjournment Debate Arts Funding ……………………………… 128 Irish Red Cross ……………………………… 131 Ambulance Service …………………………… 134 Sports Capital Programme ………………………… 136 Questions: Written Answers …………………………… 139 DÁIL ÉIREANN

DÍOSPÓIREACHTAÍ PARLAIMINTE PARLIAMENTARY DEBATES

TUAIRISC OIFIGIÚIL OFFICIAL REPORT

Imleabhar 737 Volume 737

Dé Céadaoin, 29 Meitheamh 2011. Wednesday, 29 June 2011.

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Chuaigh an Ceann Comhairle i gceannas ar 10.30 a.m.

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Paidir.

Prayer.

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Leaders’ Questions Deputy Micheál Martin: Yesterday anyone who was paying attention to this Chamber could see there was a problem with Labour Party Ministers and backbenchers.

Deputy Jerry Buttimer: Deputy Martin spent long enough missing when Brian Cowen was his leader.

Deputy Dara Calleary: Deputy Buttimer was off yesterday.

Deputy Timmy Dooley: Is Deputy Buttimer back?

Deputy Jerry Buttimer: I was never gone.

Deputy Timmy Dooley: He must have been hiding so.

(Interruptions).

An Ceann Comhairle: Deputy Martin should not invite this antagonism. This is Leaders’ Questions, it is not about who is present in the Chamber.

Deputy Micheál Martin: This morning the reason for the decision to stay away from the Chamber during Leaders’ Questions has been revealed. According to all reports, the Govern- 1 Leaders’ 29 June 2011. Questions

[Deputy Micheál Martin.] ment yesterday argued and then failed to reach agreement on what the Taoiseach has called the Minister for Jobs, Enterprise and Innovation’s personal agenda to reduce the basic conditions guaranteed by joint labour committees. This is not a small issue; it affects 200,000 people working in businesses throughout the country. There has been no progress on the issue in the weeks since the Minister for Jobs, Enterprise and Innovation briefed the media on plans to go well beyond the recommendations in the independent report to Government. Now we have daily briefings and counter-briefings by competing Ministers.

Deputy Jerry Buttimer: At least we have Noel O’Flynn and John McGuinness on side.

An Ceann Comhairle: Could we have a question please?

Deputy Micheál Martin: The Minister for Social Protection has told the media the proposed changes will significantly increase welfare costs and was supported in this by the Tánaiste.

Deputy Emmet Stagg: This is the crowd that cut the minimum wage.

An Ceann Comhairle: Would Deputy Martin please put a question?

Deputy Micheál Martin: In reply, staff speaking on behalf of the Minister for Jobs, Enterprise and Innovation have replied that he is bravely facing down the Labour Party.

Deputy Emmet Stagg: This is the crowd that cut the minimum wage.

Deputy Micheál Martin: When will this end? Is the Taoiseach going to stand by while the Minister tries to present himself as the tough guy of the new Government by ignoring an independent report and briefing against his coalition partners? Is the Taoiseach happy that one Minister’s personal agenda is causing this confusion?

Deputy Ray Butler: Does Deputy Martin want to get a few tickets for Bon Jovi so they can sing his favourite song, “Cowboy”?

The Taoiseach: I must assume Deputy Martin is speaking about the joint labour committees because he did not ask any question, he only remarked that some people were absent from the Chamber.

Deputy Micheál Martin: I did actually.

The Taoiseach: I want Deputy Martin to understand that I have every confidence in every Minister in this Government.

Deputy Willie O’Dea: Even when they contradict each other.

The Taoiseach: Unlike the Deputy’s crowd of not long ago, we will not find them outside buildings saying the IMF are not here, we did not do anything about that. In respect of the responsibilities of the Minister for Jobs, Enterprise and Innovation, the programme for Government, the EU-IMF agreement and the recent jobs initiative contained commitments from the Government that we would proceed with urgency to substantially reform the system, particularly issues related to overtime and premium payments for Sunday working, the number of joint labour committees and the general functioning and supervision of the system. The Minister prepared a memo and there was a preliminary discussion at Government yesterday. There was no conclusion to the discussion because it was preliminary. 2 Leaders’ 29 June 2011. Questions

Instead of trying to score points, Deputy Martin should understand that we are concerned about creating jobs and employment for the maximum number of people in the country. For the Deputy’s information, the structures that need to be reformed are agreed in principle by the Labour Party and Fine Gael. The people we are talking about are those who are locked out of employment because of antiquated structures and the system that applies. For the Deputy’s information, the Duffy Walsh report stated there should be radical restructuring of this particular system. It requires a radical overhaul to make it fairer and more responsive to changing economic circumstances and labour market conditions. If the Deputy is interested, the most recent CSO statistics for the first quarter of 2011 confirm a continuing drop in employment in the sectors most affected by the JLC system, which is why that system must be reformed. The retail category saw 5,700 fewer people in employment between the end of last year and the first quarter of this year. The same period saw 9,000 fewer people employed in accommodation and food services.

Deputy Willie O’Dea: Because they were being paid too much, I suppose.

The Taoiseach: Of the 19,000 drop in employment in the last year, 15,600 — 82% — came from these two sectors that are directly affected by JLCs.

Deputy Willie O’Dea: Because they are being paid too much — €300 per week.

Deputy Brendan Howlin: Who cut the minimum wage?

The Taoiseach: That is the reason the Government is setting out to reform these structures, to give a fairer, more responsive situation and to prevent people from being locked out of employment. The Government sees the creation of jobs as a priority, not the taxation of jobs or employment; we want to see more people getting off the live register, where the figures are much too high. That is the reason for the proposition and the Minister set out in his memo areas where the JLCs can be reformed and the Government will continue its discussion on that and reach a conclusion on it. There is also a High Court case on Thursday that will deal with a particular element of the system dealing with employment in these sectors.

Deputy Micheál Martin: The Duffy-Walsh report says the opposite to what the Taoiseach said. It says that if one reduces the rates——

An Ceann Comhairle: I am sorry. We are not having a debate. The Deputy should ask a supplementary question.

Deputy Micheál Martin: ——it would lead to a 10,000 jobs reduction.

Deputy Willie O’Dea: Exactly.

Deputy Micheál Martin: The fundamental issue with hospitality and retail is the flat, domestic demand, the lack of consumer demand and spending.

Deputy Alan Shatter: That is over what Fianna Fáil presided.

Deputy Micheál Martin: Everyone, unions and employers included, have signed up——

(Interruptions). 3 Leaders’ 29 June 2011. Questions

An Ceann Comhairle: Excuse me. This is Question Time. Could I have a supplementary question please?

(Interruptions).

Deputy Alan Shatter: There are 450,000 people unemployed.

Deputy Willie O’Dea: It is amazing that you have time to come in at all.

An Ceann Comhairle: The Deputy should please resume his seat. The Government side should please allow people to speak and the Opposition should allow the Government side to reply. This is a supplementary question, not a speech, for which Deputy Martin has one minute.

Deputy Billy Kelleher: The Minister, Deputy Shatter, is provoking us.

An Ceann Comhairle: Deputy Martin should not make a speech.

Deputy Alan Shatter: The truth is always provocative.

Deputy Micheál Martin: This is Leaders’ Questions.

An Ceann Comhairle: Yes, it is entitled “Questions”.

Deputy Micheál Martin: It is a question on matters raised, a Cheann Comhairle. That is in Standing Orders. It is very clear.

An Ceann Comhairle: Deputy Martin is entitled to one minute for a supplementary question.

Deputy Micheál Martin: It is very clear, a Cheann Comhairle. It is questions on matters arising and I should be allowed the space and time to do so and not to be interrupted by Deputies opposite.

An Ceann Comhairle: I gave Deputy Martin space and time.

Deputy Micheál Martin: I have been interrupted consistently, a Cheann Comhairle.

An Ceann Comhairle: I will deal with the interruptions.

Deputy Micheál Martin: Now that I have an opportunity to put the supplementary question to the Taoiseach, the independent report has been delivered but it is being ignored in favour of what the Taoiseach himself has called the Minister, Deputy Bruton’s personal agenda to implement even more serious cuts. I put it to the Taoiseach that the Minister, Deputy Burton’s apparent claim that the proposals would increase FIS and other welfare claims is significant and it deserves to be treated seriously, not undermined by Fine Gael as something that needs to be faced down. Surely the Taoiseach can accept that the spectacle of daily briefings of Minister against Minister should stop? Will he simply agree to implement the recommendation of the independent report on JLCs, get on with it and end the growing uncertainty for more than 200,000 workers about their basic terms and conditions.

An Ceann Comhairle: Deputy Martin is over time.

Deputy Micheál Martin: They deserve that clarity and certainty, not the show that is going on at the moment between competing Ministers.

Deputy Alan Shatter: The previous Government destroyed the jobs. 4 Leaders’ 29 June 2011. Questions

The Taoiseach: Let me remind Deputy Martin about what the Duffy-Walsh report does say. The Deputy did not read his brief previously on a particular matter.

Deputy Willie O’Dea: The Taoiseach skipped a lot of the pages.

Deputy Timmy Dooley: The Taoiseach has a lot of reading to do too.

The Taoiseach: The overall findings of the report was that the basic framework of the JLC system requires radical overhaul so as to make it fairer and more responsive to changing economic circumstances and labour market conditions. That is what it says.

Deputy Willie O’Dea: The Government should implement it then.

The Taoiseach: The Minister, Deputy Bruton, is doing his job. He has prepared his memo. He wrote to IBEC, ICTU and CIF with copies of the report. He has had discussions with the social partners. In doing his job he will bring back to Government a series of recommendations and the Government will decide on that, on the principle that we have agreed that there should be reform of the JLC structure to make it fairer and more responsive to changing economic circumstances. It is obvious that people will have a range of views on any discussion that takes place on an issue as sensitive as that. That is normal. What we are concentrating on is making a situation fair, not locking out people from employment and ensuring the maximum number can be employed in these and others sectors. To do that, the structure must and will be reformed.

Deputy Willie O’Dea: Who disagrees with that?

The Taoiseach: On top of that, the Government wants to give every possible benefit to initiatives where jobs can be created, such as the job search scheme which I launched this morning with the Minister, Deputy Burton, which will give 5,000 internships to young, eligible people.

Deputy Billy Kelleher: The internship programme was announced last year.

The Taoiseach: I am sure the Deputies opposite support that.

Deputy Micheál Martin: We suggested it. The Government should implement the recommendations of the Duffy-Walsh report.

An Ceann Comhairle: We are over time.

The Taoiseach: Every job or internship that can be created is of benefit to the country and the economy. That is the situation. Before Deputy Martin makes another comment about the Duffy-Walsh report, he should read it.

Deputy Micheál Martin: I read it.

Deputy Gerry Adams: The Taoiseach will recall that some weeks ago I raised the issue of the impending crisis arising from the shortage of junior doctors. I named the hospitals which I believed would be affected and I asked the Taoiseach to intervene. I called on the Minister for Health to make a statement. He has not been accountable to the Dáil since 31 May. No statement has been made on the issue. Deputy Ó Caoláin also raised the issue of the plans to cut ambulance services for dialysis and heart patients in the west. Again, we have had no statement on that. 5 Leaders’ 29 June 2011. Questions

[Deputy Gerry Adams.]

Will the Taoiseach indicate how many accident and emergency services will be either shut down or downgraded by the end of July? Will he confirm that the Minister for Health will restore the ambulance services to those patients in the west?

The Taoiseach: The Minister for Health will answer questions in the House tomorrow.

Deputy Gerry Adams: I know that.

The Taoiseach: I expect the Deputy can pursue him in detail on any of the particular issues he wants to follow up. The Minister will give an up-to-date account of the exact situation, as of tomorrow, in respect of non-consultant hospital doctors being available. He has made it perfectly clear that he understands the medical situation, as he is a doctor, and he cannot stand over a situation where professional advice indicates that the——

Deputy Micheál Martin: Did he understand it before the election?

Deputy Timmy Dooley: Is he on a solo run? Does he have a personal agenda as well?

The Taoiseach: ——delivery of services would be unsafe because of lack of supervision for junior hospital doctors. As Deputy Adams is aware, the Minister has already reported to the House on the recruitment process abroad for junior doctors to be available after 11 July. It is true that a number of hospitals will find the situation very challenging in the sense of changes that will have to take place. The Minister will give an up-to-date report as of tomorrow when he answers questions.

Deputy Willie O’Dea: That will be for tomorrow but what about the day after?

The Taoiseach: As Deputy Adams is well aware the budget deficit within the health area this year for hospitals alone is €99 million over target. It is not possible to do everything one would wish. We are faced with reality and a requirement to have patient safety at the centre of what we do and changes will be made in order to meet that requirement. The Minister will report to the House tomorrow.

Deputy Gerry Adams: I want the Taoiseach to reflect on what he said. There is no recollec- tion on these benches that the Minister made a statement in the House. He made a statement to the media. He said some hospitals could not be safely manned, mar dheá. I asked him to name the hospitals but he has not done that. Once again, the Taoiseach has not answered the question about the ambulance service. I should have said for cancer patients not heart patients. There is a litany of commitments by people now in government. Deputy Naughten, the Chairman of the health committee said he would resign——

An Ceann Comhairle: The Deputy should ask a supplementary question please.

Deputy Gerry Adams: ——if services were not restored in Roscommon. John Perry promised——

An Ceann Comhairle: Deputy Perry, please.

Deputy Gerry Adams: Gabh mo leithscéal, the Minister of State, Deputy Perry, said that the cancer service would be restored to Sligo hospital within the first 100 days of government. We have litanies of promises. Many people are asking what is the difference between Fianna Fáil and Fine Gael, between—— 6 Leaders’ 29 June 2011. Questions

An Ceann Comhairle: Deputy Adams should ask a supplementary question.

Deputy Gerry Adams: ——the previous Minister for Health and Children, former Deputy Harney, and the Minister for Health, Deputy Reilly? Fianna Fáil closed emergency services in Dundalk, Monaghan, Nenagh, Ennis and Navan.

An Ceann Comhairle: Could I have a supplementary question?

Deputy Gerry Adams: Fine Gael and Labour, my friends, are closing them at Roscommon, Mallow, Bantry, Loughlinstown and how many other places. People need to know. The Taoiseach accused me of scaremongering. He should address what is scaring people.

Deputy Billy Kelleher: You closed the Europa Hotel a few times.

Deputy Gerry Adams: Tell them what is the story on the issue.

The Taoiseach: There is a world of difference between the parties. The first difference is that we have a Minister for Health who will change the system to one which will deliver adequate standards of proper health care for all patients. That cannot and will not happen overnight. I respect the work medical professionals do. I respect the pressure they are under, but the system that has been allowed to evolve over so many years has been wasteful and has not been up to the standard required in so many areas, as the evidence has shown over the years. That is the first difference between the parties. The Government has set out a plan and programme to change the structure of the delivery of health services where patient care is central and paramount. That will apply right across the country. Transport will continue to be provided for those who need it, be it for cancer treatment, dialysis or other need. On the question of naming hospitals in which the number of non-consultant hospital doctors is not up to standard or where there is no supervision for non-consultant hospital doctors, I cannot give that information today because the responses are not back from those who might take up positions as junior doctors. The Minister will report on that to the House tomorrow. I regret this is something that has happened for so many years without being attended to. It will be attended to now. It would be far easier for me to stand up here and say everything is hunky-dory in every hospital in the country. It is not. Because of the situation in which we now find ourselves, changes must take place, and those changes must be carried out with a focus on patient care and the delivery of the highest standard of care by professionals with supervision and adequate accountability to this House. This Minister for Health will ensure this happens.

Deputy Gerry Adams: There are 358 patients on trolleys.

The Taoiseach: We have set up a special delivery unit to deal with waiting lists.

Deputy Joe Higgins: A Swedish ship that is part of the humanitarian aid flotilla to Gaza lies crippled in Greece by saboteurs acting in the interests of the Israeli Government. An Irish ship, MV Saoirse, funded by thousands of contributions from people in Ireland, is currently delayed in a Mediterranean port waiting to join the flotilla. In an area half the size of Erris, or two thirds the size of the Dingle Peninsula, 1.6 million Palestinians have been blockaded — in reality, imprisoned — in the most horrific, inhumane and barbaric conditions that cry out for justice and for action. Half the population are unemployed and 300,000 survive on one dollar a day. Children are malnourished and there is a 7 Leaders’ 29 June 2011. Questions

[Deputy Joe Higgins.] desperate shortage of medicines and building materials, all because of a barbaric, illegal blockade by the Israeli State. The flotilla brings practical assistance, medicines and other supplies. It also represents a demand that the world stand up and seek an end to this crime.

An Ceann Comhairle: Does the Deputy have a question?

Deputy Joe Higgins: As the Taoiseach knows, last year an aid flotilla was attacked and several innocents were massacred. In Leaders’ Questions just one year ago, the current Tánaiste and Minister for Foreign Affairs and Trade bluntly demanded safe passage for the Rachel Corrie, which was at that time making its way to Gaza. Yesterday, however, when Deputy Boyd Barrett and I called on the Taoiseach to publicly demand unhindered passage for the flotilla, he failed to do so. Why is the Taoiseach so pathetically weak in demanding of the Israeli Government that it allow this critical aid to pass unhindered? Has the Government been lobbied in any way by the Israeli Government? Is he afraid to displease the American Government, whose Secretary of State, Hillary Clinton, made a disgusting statement alleging that the humanitarian mission was “merely to provoke Israel into using its right to defend itself”?

An Ceann Comhairle: The Deputy is over time.

Deputy Joe Higgins: Will the Taoiseach, in a supposedly sovereign Irish Parliament, publicly demand that the Irish citizens and all people attempting to assist the people of Gaza are unhindered in bringing their humanitarian aid to the suffering people in Gaza?

Deputy Richard Boyd Barrett: Hear, hear.

The Taoiseach: I have every sympathy with the citizens of Gaza. I have been there and met with group leaders and professional people who have been unable to do their best in providing services because they cannot travel outside Gaza. I had a good meeting with John Ging, when he was in charge, about the difficulties on both sides within Gaza. I am well aware of the difficulties and the pressure that people are under, particularly the many young people who are facing a future of unemployment. The Tánaiste has made it perfectly clear that while we have respect and sympathy for the motives of the participants in the flotilla, the Government would strongly advise people not to travel to Gaza. The Israeli authorities have said that the naval blockade is still in force. This matter was raised at the European Council meeting last Thursday and Friday and in that regard, we wish for no activities similar to those that took place on the last occasion, with people losing their lives when Israeli forces boarded a ship. While I respect the motives of the participants, I advise them not to travel to Gaza while this blockade is in force.

Deputy Richard Boyd Barrett: Is the Taoiseach trying to stop them?

The Taoiseach: The European Union, while understanding the situation, would like to see the talks about the future of Palestine and Israel begin again for the umpteenth time. There is a basis on which the talks can start, and I hope Europe will play its part in helping them to recommence.

Deputy Joe Higgins: What has changed since last year, when the now Tánaiste and Minister for Foreign Affairs demanded safe passage for an Irish ship that was bringing aid to the people of Gaza? What the Taoiseach has just said is a disgusting and cowardly capitulation—— 8 Requests to move Adjournment 29 June 2011. of Dáil under Standing Order 32

An Ceann Comhairle: Could we have a supplementary question?

Deputy Joe Higgins: ——to pressure from the Israeli Government. It is a disgrace that an Irish Taoiseach would stand up and discourage humanitarians from bringing critically needed supplies to a besieged people.

An Ceann Comhairle: I ask the Deputy again for a supplementary question.

Deputy Joe Higgins: I ask the Taoiseach again to stand and call for the Israeli Government not to hinder in any way this flotilla, which is bringing critical supplies, as it travels to Gaza. I also ask him to demand of his EU counterparts to get some spine in their bodies, in contrast to the lily-livered statement they issued at the end of the summit in which the Taoiseach participated, merely calling for restraint. Why does the Taoiseach not say, in the interests of suffering human beings, that they have an absolute right to the supplies that every other country will get unhindered? Would he accept it if Ireland were blockaded and our people were dying from lack of medicines, malnourishment and so on, because of this type of hostile action?

The Taoiseach: As Taoiseach, I call upon the Israeli Government not to take any action that would cause injury or harm to people who have particular motives. The boat involved last year contained no aid. The European Union, for its part, will continue to use its diplomatic and political connections and initiatives to see that the political discussions on the future of the Palestinian people recommence, together with the discussions that must take place about the Israeli-Palestinian problem, which has gone on for many years. It is also fair to mention the fact that the Glencree Centre in Ireland has done a great deal of useful work in attempting to reduce the pressure arising from this problem.

Requests to move Adjournment of Dáil under Standing Order 32 An Ceann Comhairle: We now move on to requests to move the adjournment of the Dáil under Standing Order 32, of which two have been submitted. The first is from Deputy Caoimhghín Ó Caoláin.

Deputy Caoimhghín Ó Caoláin: I seek the Adjournment of the Dáil to address the following matter of national importance: the threat to emergency departments in hospitals across the State, including Roscommon County Hospital, as a result of the continuation by the Fine Gael- Labour Party Government of the policies of the Fianna Fáil-Green Party Government; and the need for this policy to be reversed and for both parties in Government to fulfil their election commitments to the people of Roscommon and other communities whose hospital services are under threat.

An Ceann Comhairle: I now call on Deputy Joan Collins.

Deputy Joan Collins: I seek to adjourn the Dáil to discuss a matter of urgent public importance: the recent announcement by Vodafone Ireland of its plans to move 130 Irish jobs to offshore locations of the Vodafone group in Egypt and India, despite the fact that the company reported profits of €123 million to March 2011. Jobs are crucial to the Irish economy and every job should be maintained, particularly by a company that is making such large profits. Eighty percent of its Irish profits come from corporate accounts and a large proportion of these are State-owned or semi-state bodies, such as our local authorities, State hospitals and the Depart- ment of Education and Skills. These contracts should not be renewed if Vodafone Ireland persists in exporting these or any jobs from Ireland. 9 Order of 29 June 2011. Business

An Ceann Comhairle: Having considered the matters raised, I have concluded that unfortunately they are not in order under Standing Order 32.

Order of Business The Taoiseach: It is proposed to take No. 17, statements on European Council; No. 5, Central Bank and Credit Institutions (Resolution) (No. 2) Bill 2011 — Second Stage (resumed); and No. 1, Criminal Justice (Female Genital Mutilation) Bill 2011 [Seanad] — Second Stage. It is proposed, notwithstanding anything in Standing Orders, that the proceedings on No. 17 shall, if not previously concluded, be brought to a conclusion after 85 minutes and the following arrangements shall apply: the statements shall be confined to the Taoiseach and to the main spokespersons for Fianna Fáil, Sinn Féin and the Technical Group, who shall be called upon in that order, who may share their time, and which shall not exceed 15 minutes in each case; a Minister or Minister of State shall take questions for a period not exceeding 20 minutes; a Minister or Minister of State shall be called upon to make a statement in reply which shall not exceed five minutes; the suspension of sitting under Standing Order 23(1) shall take place at 1.30 p.m., or on the conclusion of No. 17, whichever is the later, until 2.30 p.m. Private Members’ business shall be No. 24 — Twenty-Ninth Amendment of the Constitution (No. 3) Bill 2011 — Second Stage (resumed), to conclude at 8.30 p.m. tonight, if not previously concluded.

An Ceann Comhairle: There are two proposals to be put to the House. Is the proposal for dealing with No. 17 agreed to? Agreed. Is the proposal relating to the suspension of the sitting agreed to? Agreed.

Deputy Micheál Martin: We heard reports this morning that the Minister for the Envir- onment, Community and Local Government decided to shut down an independent investigation into planning practices in certain local authorities which had been established by his predecessor, John Gormley. Is the Taoiseach aware of this decision and the reasons for it? Will he provide a briefing to Opposition spokespeople as to why the decision was taken?

An Ceann Comhairle: The question is not in order.

The Taoiseach: There will be an internal review instead.

Deputy Gerry Adams: Will the Taoiseach confirm that the electoral (amendment) Bill will be published tomorrow? If so, will it be debated before the summer recess? Will there be input from the Opposition in agreeing the terms of reference for the new constituency commission? Has the Government determined the number of Deputies that will be cut?

The Taoiseach: The Government approved the Bill yesterday but I cannot give the exact date when the Minister for the Environment, Community and Local Government will publish it. There is a process to be followed in the appointment of a constituency commission. The Minister will write to the Chief Justice, who will in turn ask the High Court to appoint a judge to chair the commission. It will be given terms of reference in respect of which it will make its findings independently. All Governments over the past 25 years have followed the recommendations of the various independent constituency commissions on the number of Deputies, constituency boundaries, etc.

Deputy Gerry Adams: Who sets the terms of reference for the commission? Will the Oppo- sition have an input into it? 10 Order of 29 June 2011. Business

The Taoiseach: Opposition Members will have an opportunity to voice their opinions on the Bill when it comes before the House.

Deputy Gerry Adams: That means “No” then.

Deputy Micheál Martin: Be careful of gerrymandering.

(Interruptions).

Deputies: We remember that.

Deputy Emmet Stagg: His master’s voice.

Deputy Sandra McLellan: The programme for Government commits the Government to sell €2 billion worth of what it describes as non-strategic State assets. Has the Government decided what constitutes such an asset? Will the Dáil have an opportunity to debate this issue?

An Ceann Comhairle: The question is not in order.

Deputy Sandra McLellan: When will the Government introduce the legislation it has promised to establish its NewERA body which will handle the planned sale of State assets?

An Ceann Comhairle: Now we are in order.

Deputy Sandra McLellan: Will this legislation be introduced before the summer recess? Is this another issue on which the EU, ECB and the IMF must be consulted before the Dáil has its say?

An Ceann Comhairle: There is no need for the Deputy to expand on the question.

The Taoiseach: Work on NewERA is proceeding. While much work has already been done, it will be some time before it will be published. The Government has agreed that over its lifetime, non-strategic State assets could be sold to the extent of €2 billion. In due course, the Government will make its decisions in that regard. The Deputy will know what they are when it happens.

Deputy Pádraig Mac Lochlainn: On promised changes, ahead of the last general election the Fine Gael Party education spokesperson, Ulick Burke, assured rural communities——

An Ceann Comhairle: Before the election does not matter now.

(Interruptions).

Deputy Billy Kelleher: I think the Ceann Comhairle speaks for everyone in the House.

Deputy Pádraig Mac Lochlainn: We know that. I think I figured that one out.

Deputy Dara Calleary: Deputy Mac Lochlainn should buy the t-shirt.

An Ceann Comhairle: We are dealing with promised legislation since the new Government came into power.

Deputy Timmy Dooley: Deputy James Bannon does not like that.

Deputy Pádraig Mac Lochlainn: Maybe I am a naı¨ve soul but—— 11 Order of 29 June 2011. Business

An Ceann Comhairle: Maybe the Deputy is but it is not for me to comment on that. The Deputy should proceed with his question.

Deputy Pádraig Mac Lochlainn: The Taoiseach will know of the strong views of rural communities regarding proposed cuts to school transport services. His party was committed to change the——

An Ceann Comhairle: Where are we heading here on legislation?

Deputy Pádraig Mac Lochlainn: When will the Taoiseach stop the cuts to the school transport service, as his party promised, which were introduced in the last Estimates?

An Ceann Comhairle: That does not concern promised legislation.

Deputy Pádraig Mac Lochlainn: So the promises made a long time ago do not count. These are promised changes. The Taoiseach’s party promised it could change these cuts.

An Ceann Comhairle: Yes, but it is not about promised legislation. The Deputy will be able to discuss the matter during the finance Bill and the budget.

Deputy Pádraig Mac Lochlainn: A Cheann Comhairle, with respect, it will take legislation to change these cuts. I want to know when the Government will introduce this legislation.

An Ceann Comhairle: No, it will not. The Taoiseach has indicated there is no promised legislation in this regard.

Deputy Pádraig Mac Lochlainn: So the promise does not matter. I can see the Taoiseach is eager to answer my question.

(Interruptions).

An Ceann Comhairle: No, he does not want to.

Deputy Pádraig Mac Lochlainn: The Taoiseach is desperate to answer this question.

Deputy Caoimhghín Ó Caoláin: The Taoiseach is desperate.

Deputy Jerry Buttimer: Unlike Deputy Ó Caoláin, of course.

An Ceann Comhairle: If Deputy Mac Lochlainn would not mind, can we get on with the Order of Business? The Deputy’s colleague, Deputy Michael Colreavy, wants to be in order.

Deputy Michael Colreavy: Today’s Order Paper lists, as a document laid before the House, SI No. 305 2011, regarding the student grant scheme. Will the House have an opportunity to discuss the changes to the non-adjacent rates to student grants which will halve the grant for tens of thousands of students?

An Ceann Comhairle: Is there a debate promised on this matter?

Deputy Paul Kehoe: The Deputy could put down a parliamentary question.

An Ceann Comhairle: No debate is promised. I call on Deputy James Bannon.

Deputy Timmy Dooley: He remembers before the election. 12 Order of 29 June 2011. Business

Deputy James Bannon: The Electoral (Amendment) Act 2006 put in place procedures enabling prisoners to vote by post in all elections. Forms are available in prisons to allow them the opportunity to vote.

Deputy Michael McGrath: Are a few of them on Deputy James Bannon’s side?

Deputy Timmy Dooley: He might need a few of them in the next election.

Deputy James Bannon: It is blatantly unfair, however, that no provision has been made for the huge number of Irish emigrants abroad.

An Ceann Comhairle: No, we do not need to discuss this matter.

Deputy James Bannon: Will legislation be brought in before the presidential election to enable Irish people abroad to vote in Irish elections?

Deputy Timmy Dooley: No, because they are not Fine Gael supporters.

Deputy Dara Calleary: This was another of those promises made before the election.

Deputy James Bannon: Legislation on this matter was promised in the programme for Government.

An Ceann Comhairle: Deputy James Bannon can take this matter up at a party meeting. It is not a matter for the Order of Business. I call on Deputy Timmy Dooley.

Deputy Timmy Dooley: In light of recent events, is it intended to amend the Broadcasting Acts with a view to providing RTE with voting machines? (Interruptions).

An Ceann Comhairle: I have called Deputy Mary Lou McDonald. Can we have some order for her?

Deputy Mary Lou McDonald: The legislation establishing a Department for public expenditure and reform came through the House last week and is now in the Seanad. I note from the rota for parliamentary questions that the Minister without Portfolio, Deputy Brenda Howlin, will not make himself available to the Dáil before the summer recess. Recently, I read with interest that the Minister is presiding over key policy decisions at Cabinet level and yet we have waited a long time for the establishment of this Department.

Deputy Robert Dowds: Sinn Féin delayed the legislation.

Deputy Mary Lou McDonald: The legislation will come into effect on 5 July but yet the Minister will not answer questions in the House.

An Ceann Comhairle: Sorry Deputy Mary Lou McDonald, but you are out of order.

Deputy Mary Lou McDonald: He will not even provide written replies to parliamentary questions in advance of the summer break. Will the Taoiseach please address and remedy this issue?

The Taoiseach: The Bill is due to be returned from the Seanad to the Dáil tomorrow. From a legal standpoint, the Minister cannot answer parliamentary questions in the House until it has been signed into law. Thereafter, the Questions Office is responsible for determining the 13 Order of 29 June 2011. Business

[The Taoiseach.] ministerial rota for parliamentary questions as approved by the Dáil. There is no reluctance on the part of the Minister, Deputy Howlin, to come before the House to answer parliamentary questions. He is very anxious for the opportunity to do so.

Deputy Robert Dowds: Those in opposition tried to delay the legislation.

The Taoiseach: That is correct.

Deputy Pádraig Mac Lochlainn: The only time the Deputy speaks is when——

Deputy Robert Dowds: The Deputy should speak for himself.

Deputy Caoimhghín Ó Caoláin: When will legislation to require the banks to make credit available to viable business be forthcoming? There are key elements contained in both the programme for Government and the jobs initiative which commit this Administration to ensuring that the banks will be compelled to provide credit to small to medium-sized business which are viable and which are providing essential employment. We have yet to see any action on the Government’s part in this area. When will the relevant legislation be introduced?

The Taoiseach: The Minister for Finance has made many comments on this matter, particularly in the context of the decisions taken in respect of the dysfunctional banks, the fact that two pillar banks are to be established and the requirement to deleverage non-core assets in order that, as a result, credit will be available. He has also pointed out that there is a requirement to stimulate demand for credit. The Government is proceeding to work on a Bill designed to facilitate the introduction of a partial loan guarantee scheme. It is hoped to publish this legislation in the autumn. There is a need to provide an initiative to stimulate the indigenous economy and the legislation is a central part of that. The Minister for Finance has made the legislation a priority and work is proceeding on it. I cannot——

Deputy Caoimhghín Ó Caoláin: A great deal could happen between now and the autumn if the banks are allowed to proceed in the manner in which they are operating at present, namely, acting against viable businesses.

An Ceann Comhairle: I am surprised at Deputy Ó Caoláin, who is normally in order.

The Taoiseach: I would like to be able to introduce the legislation today. However, this is a complex matter. It will be forthcoming before the end of the year. A great deal of work is being done on this matter.

Deputy Michael McGrath: It is widely expected that on Thursday, 6 July the European Central Bank will raise interest rates by 0.25%, which may serve to push many people who are struggling to pay their mortgages over the edge. When will promised legislation designed to increase mortgage interest relief for certain categories of homeowners and force the banks to absorb the 0.25% increase be introduced?

The Taoiseach: I cannot provide an exact date in that regard. The Government is pursuing a range of options in respect of this matter that will be additional to the mechanisms already in place to assist those who are experiencing serious difficulties repaying their mortgages and who are in distress. I understand the sentiments behind the Deputy’s query. Work is ongoing in respect of a range of additional options relating to how best we might assist the people in 14 Order of 29 June 2011. Business question. I do not have a date in respect of the introduction of what is envisaged. As soon as anything is forthcoming, however, I will inform the Deputy.

Deputy John O’Mahony: Will the Taoiseach indicate if a decision has been made with regard to the reconfiguration of the VECs? If such a decision has been made, when is an announcement likely to be made?

The Taoiseach: The Government approved the relevant Bill yesterday and it will come before the House in due course for debate. Copies of the legislation are available to Members.

Deputy Dessie Ellis: The Government is proceeding with its referendum on judges’ pay. It was recently announced that a cap on pay — from which well-paid consultants and NAMA officials will be excluded — is to be introduced. Legislation will be required in order to facilitate the introduction of the cap. Are there any plans to introduce legislation to stop bonuses being paid out?

An Ceann Comhairle: That is not——

Deputy Dessie Ellis: I am of the view that it is important.

An Ceann Comhairle: I know it is important. However, I am obliged to ascertain whether legislation is promised in respect of particular matters.

The Taoiseach: The Government has made its position clear in respect of bonuses. We want to get the message across that there is a requirement on everyone to play his or her part. The Minister with responsibility for public expenditure and reform, Deputy Brendan Howlin, is conducting a review of the situation. I do not have a date for the introduction of legislation.

Deputy Charlie McConalogue: As the Taoiseach is aware, the House is due to continue its debate on a Fianna Fáil Private Members’ Bill designed to facilitate the running of a referendum on adoption on the same day as the presidential election. The Government has indicated that it does not support the Bill and has put forward an amendment. Fianna Fáil is committed to working towards the holding of a full referendum on the rights of children as soon as possible. Part of the Government’s amendment to our Bill states that Dáil Éireann “Endorses the actions taken by the current Government to progress the introduction of the amendment to the Constitution on children”. How can the Taoiseach expect us to vote in favour of this amendment when the main action the Government has taken is to row back on the promise it made four months ago——

An Ceann Comhairle: I have been very lenient with the Deputy. He should ask a question.

Deputy Charlie McConalogue: ——to run the referendum on the same day as the presidential election?

An Ceann Comhairle: That matter can be discussed during Private Members’ time later.

Deputy Charlie McConalogue: Will the Taoiseach remove the clause from the amendment?

An Ceann Comhairle: No, that is not——

Deputy Charlie McConalogue: It is unfair to expect us to endorse the very little that has been done in respect of this matter. All that has happened is that the Taoiseach has rowed back on his promises. 15 Order of 29 June 2011. Business

An Ceann Comhairle: That matter can be dealt with during Private Members’ time later.

Deputy Bernard J. Durkan: On promised legislation——

Deputy Micheál Martin: This marks the formal end of the Order of Business.

Deputy Bernard J. Durkan: I will not be deflected from my course by that ribald comment from the Opposition benches.

Deputy Timmy Dooley: The Deputy is deflecting the rest of us.

(Interruptions).

Deputy Bernard J. Durkan: I will instead focus my attention on it later. I wish to inquire about two important items of promised legislation and I am interested in the extent to which they have been discussed by the Cabinet and whether the heads have been drawn up. I refer to the Children (Establishment of Child Welfare and Protection Agency) Bill — No. 68 on the list of Government legislation — and the Health Insurance (Miscellaneous Provisions) Bill, which is designed to provide for a new risk equalisation scheme for health insurance.

An Ceann Comhairle: About what is the Deputy inquiring?

Deputy Bernard J. Durkan: I apologise, I did not make my intentions clear at the outset.

An Ceann Comhairle: Exactly.

Deputy Timmy Dooley: The Deputy is checking the weather forecast.

Deputy Bernard J. Durkan: It may take a little time but what I am seeking is information on the extent to which——

An Ceann Comhairle: I do not want the Deputy to go through the entire list. The information is readily available.

Deputy Bernard J. Durkan: I thought the Ceann Comhairle wanted me to go through it all again.

An Ceann Comhairle: Is the Deputy seeking to elicit information?

Deputy Bernard J. Durkan: I wanted to ask whether the Bills had been discussed by the Cabinet.

An Ceann Comhairle: That is not a matter for the Order of Business.

Deputy Bernard J. Durkan: It is. I am inquiring about the heads of the two Bills in question.

An Ceann Comhairle: What does the Deputy wish to know?

Deputy Bernard J. Durkan: The heads of a Bill have always been an issue for raising——

An Ceann Comhairle: It is not the practice to announce what is discussed at Cabinet in this House.

Deputy Tom Hayes: The Deputy is not in Cabinet.

Deputy Dessie Ellis: He should ask his colleagues who are in Cabinet. 16 Order of 29 June 2011. Business

Deputy Micheál Martin: If the Deputy reads the newspapers he will have access to complete briefings.

Deputy Bernard J. Durkan: Have the heads of the Bill been drawn up and discussed? To what extent has the Cabinet discussed the principles relating to these two Bills? I am of the view that these two questions are permissible on the Order of Business and I hope such questions will remain permissible for a long time after I have left the House.

Deputy Timmy Dooley: It will be a dull and boring place without the Deputy.

The Taoiseach: I can be of assistance to Deputy Durkan by confirming that neither of these Bills has come before Cabinet as yet.

Deputy Bernard J. Durkan: Would it be possible to afford a degree of urgency to bringing them before the House, particularly in light of the important nature of their content?

An Ceann Comhairle: I am sure the Taoiseach will note the Deputy’s request.

Deputy Timmy Dooley: It must be fun at Fine Gael Parliamentary Party meetings.

Deputy Jerry Buttimer: At least we have a parliamentary party worthy of the name.

Deputy Timmy Dooley: It is not doing much business.

Deputy Bernard J. Durkan: Will the Taoiseach outline the position?

The Taoiseach: I recognise the importance of both Bills. However, I cannot provide a date in respect of when they will come before Cabinet.

Deputy Willie O’Dea: The Taoiseach will be aware that when the Government makes a decision in respect of joint labour committees, JLCs, legislation will be required. Will he indicate the earliest possible date on which such legislation will be forthcoming? If I might avail of the Ceann Comhairle’s unexpected leniency——

An Ceann Comhairle: I am not being lenient at all.

Deputy Willie O’Dea: In the event that the High Court rules against JLCs on Thursday next, would it be the Government’s intention to appeal?

An Ceann Comhairle: We do not anticipate court decisions.

Deputy Willie O’Dea: I am trying to discover the level of the Government’s commitment.

The Taoiseach: The Deputy cannot expect me to prejudge the outcome of a High Court case.

An Ceann Comhairle: No, he cannot.

Deputy Willie O’Dea: I am not asking the Taoiseach to do so. I am merely asking if an appeal will be lodged.

The Taoiseach: I am not in a position to provide a date in respect of any legislation which may or may not be necessary.

Deputy Willie O’Dea: I thought the Taoiseach stated that the matter is urgent. He indicated that the entire economy is depending on these changes. 17 Ceisteanna 29 June 2011. - Questions.

The Taoiseach: It is.

An Ceann Comhairle: We must proceed to questions to the Taoiseach.

Ceisteanna — Questions.

————

State Visits 1. Deputy Derek Keating asked the Taoiseach his views on the benefit, both economically and politically, of the recent visit by the President of the United States of America to Ireland; and if he will make a statement on the matter. [17162/11]

2. Deputy Derek Keating asked the Taoiseach his view on the benefits, both economically and politically, of the State visit to this country of Queen Elizabeth II; and if he will make a statement on the matter. [17163/11]

The Taoiseach: I propose to take Questions Nos. 1 and 2 together. The visits by Queen Elizabeth II, followed so shortly afterwards by that of the President of the United States, Barack Obama, were remarkable and memorable events for Ireland. The visit by Queen Elizabeth was a truly historic occasion which marked a further strengthening and maturing of the bilateral relationship between our two countries. As the first visit by a British monarch to this State, the visit by the Queen and the warm welcome she received illustrate just how far we have come as a country at peace in the past number of years. The visit was a major success and was a hugely significant and memorable occasion for all parties. The visit by the US President, Barack Obama, and the First Lady, Michelle Obama, was a very tangible expression of the warmth and strength of the relationship between our two countries. It allowed us to reaffirm these strong links and to commit ourselves to further strengthening that relationship. It was also a great opportunity to show a positive image of Ireland to the world, building on the images from the historic visit by Queen Elizabeth the previous week. While it is very hard to quantify in financial terms the full value of these visits, Fáilte Ireland found that the combined visits generated almost 38,000 print and broadcast pieces, worth nearly €300 million in terms of their advertising equivalent and generating positive global exposure for Ireland. the country will benefit long into the future from both visits. Britain continues to be our largest trading partner, our most important export market and the most important source of tourists to Ireland. There are significant flows of investments in both directions. The continued strength of our relationship is hugely important as we both seek to overcome challenging economic times and look for new opportunities for co-operation to support development and growth across our islands. The historic visit of the queen provided us with a significant opportunity to focus on economic, trade, investment and tourism opportunities with Britain. There was, of course, great international interest in the visit, which sent out very positive messages to the world that Ireland is dealing with its economic difficulties with determination and is open for business. The visit of the US President underlined the significance of Ireland’s ties with the United States, particularly the economic relationship, to our mutual benefit. That relationship supports tens of thousands of jobs, with some 95,000 Irish people employed by US companies in Ireland. Our consistent message to corporate America has been that we are open for further business and investment and working to our particular strengths. The president’s visit to Ireland greatly 18 Ceisteanna 29 June 2011. - Questions. enhanced that message. Ireland could not have received a better endorsement for its future well-being.

Deputy Derek Keating: I thank the Taoiseach for his comprehensive reply to my questions on what were historical, successful and quite remarkable events of the particular week when Queen Elizabeth and the President of America visited Ireland. The president’s visit reinforced the close bonds and historical links between our two countries now and into the future. More importantly, his visit, though short and not a state visit, gave us global exposure. It was a remarkable occasion in which the Taoiseach played a pivotal and vital role. He said then that Ireland punches above its weight, and he is right. Did the Taoiseach take the opportunity to raise what is for many the sensitive issue of the undocumented Irish in America? Many people and families have struggled for years because of the difficulty with regard to being undocumented and they find themselves trapped because of their circumstances. With regard to the visit of the queen, the Taoiseach has outlined the positive spin-offs of her visit in promoting our country. The abiding memory I have of her visit is one I did not attend, her visit to the English Market in Cork. That was a remarkable occasion. The Minister for Justice and Equality outlined in the House last week that it is anticipated the cost of the visit will be in the region of €20 million. That cost would not have been quite so high if not for the carry-on of some so-called democratic people who sit in this House.

An Ceann Comhairle: May we have a question?

Deputy Derek Keating: Some of these take the queen’s shilling when it suits them. The Mayor of Cashel, Councillor Michael Browne——

An Ceann Comhairle: Could the Deputy ask his question, please?

Deputy Derek Keating: May I just have ten more seconds? The mayor said that Tourism Ireland has embarked on a massive marketing campaign in Britain to entice more UK visitors to the Rock of Cashel, on the back of the massive success of the queen’s visit.

An Ceann Comhairle: May we have a question. We are on Question Time.

Deputy Derek Keating: The Taoiseach said that the visit symbolised a healing of the past and a recognition of the two countries having grown together.

An Ceann Comhairle: I have been very liberal Deputy. Please adhere to the rulings of the Chair.

Deputy Derek Keating: The Taoiseach has given a clear indication with regard to the reversal of the travel tax. Has he a timescale on that and when is it proposed to reverse it?

The Taoiseach: I thank the Deputy for his comments. I raised the question of the undocumented Irish with President Obama. This issue was discussed at Question Time previously. The president is still hopeful of comprehensive legislation on immigration to the United States. He made the point that it was not purely a Hispanic problem and by travelling to both Ireland and Poland he indicated his wish and desire that the matter of undocumented Irish and other persons would be dealt with. Obviously, there are political difficulties in respect of Capitol Hill and how the balance of political power has changed so much during his tenure of office. In so far as the Government is concerned, we will continue to engage with the American representatives on this sensitive matter which is a growing concern for those Irish directly affected. 19 Ceisteanna 29 June 2011. - Questions.

[The Taoiseach.]

The effective date for implementation of the change regarding the travel tax is 1 July. As the Deputy is aware, the Government has decided there will be a zero travel tax. There was much comment from airlines about the possibility of bringing in many extra tourists and visitors to Ireland if the tax was abolished. The tax is zero from 1 July and I hope the airlines and all the agencies will make every effort to get as many people as possible to travel to Ireland for a quality, enjoyable experience. This will be further evidence of the beneficial consequence of the visits of both the Queen of England and the American President. The real benefit will not accrue this year, but in years hence, because the message has gone out that Ireland is a land of 100,000 welcomes, a land where a quality and different experience can be had by tourists and where real value in respect of the hard earned money of taxpayers’ from other countries which brings them here to enjoy that experience.

Deputy Micheál Martin: There is no doubt that both visits were a success and will bring long- term benefits to the country. I am sure the Taoiseach will agree that his predecessor, Brian Cowen, was correct in his decision to move ahead with both visits. Deputy Keating commented on the English Market in Cork. That visit revealed, if revelation was necessary, the unique warmth, conviviality and hospitality of the Cork people. I suggest that any further state visits should include Cork on the itinerary.

Deputy Sandra McLellan: Agreed.

Deputy Micheál Martin: I was not slow when Minister for Foreign Affairs to point out the obvious success that would ensue on foot of Queen Elizabeth’s visit to the City of Cork. Deputy Keating is welcome to the English Market. It caters for all tastes.

Deputy Derek Keating: I go there regularly.

Deputy Micheál Martin: With regard to the political benefit of President Obama’s visit, will the Taoiseach or any member of his Government use some of the goodwill to ask the American Administration about lifting its apparent veto on burning bondholders? Perhaps the Taoiseach can explain the extraordinary reluctance among our political leaders to question anyone in the American Administration about this issue. The Taoiseach, the Minister for Finance, Deputy Michael Noonan, when in New York and the Tánaiste and Minister for Foreign Affairs and Trade, Deputy Eamon Gilmore, when he met Secretary of State Clinton, all refrained from asking what I would call the Geithner question. Did Timothy Geithner veto the decision to burn the bondholders?

An Ceann Comhairle: I am restrained a bit here.

Deputy Micheál Martin: It would be of great political and economic benefit to the country if that veto was lifted. The Taoiseach should at least ascertain whether the veto exists. I am amazed that no one asks the Geithner question when they meet their counterparts in the American Administration. Did the Taoiseach ask the US Administration about the apparent veto on burning bondholders?

The Taoiseach: We dealt with this before. The ECB is an independent organisation and is not subject to the veto of any country. As the Deputy is aware, it is made up of the governors of the central banks of the various countries, and many of these have very different views. The bank is not subject to a veto by the United States or any other country. It is not a matter of a view by Mr. Geithner or by anyone else. The ECB is completely independent in its role and Ireland will begin discussions with it in respect of the sharing of responsibility — I do not like 20 Ceisteanna 29 June 2011. - Questions. to use the term “burning”—with it in respect of bondholders in Anglo Irish Bank in the autumn, as clearly outlined by the Minister for Finance.

Deputy Micheál Martin: Why do we not ask the question?

The Taoiseach: I am telling the Deputy the answer.

Deputy Micheál Martin: Why do we not ask the American Administration?

An Ceann Comhairle: The Deputy should speak through the Chair.

Deputy Micheál Martin: I want an answer to the question.

An Ceann Comhairle: No. We are not going to spend all day on this question.

Deputy Richard Boyd Barrett: Deputy Martin should not worry.

An Ceann Comhairle: These are supplementary questions. Deputy Keating asked the questions. We are not to have a long debate on the economy again.

Deputy Richard Boyd Barrett: Mine is a supplementary question. Could the Taoiseach explain how we can seriously be expected to believe that the rather vague and ill-defined benefits arising from the visit of President Obama, as outlined by the Taoiseach, outweigh the cost of €20 billion to the Irish people, referred to in this connection, which cost the people are bearing through the closure of hospitals and cuts to special educational needs resources?

An Ceann Comhairle: The Deputy should ask a supplementary question.

Deputy Richard Boyd Barrett: I asked a question.

An Ceann Comhairle: The Deputy must not make a statement.

Deputy Richard Boyd Barrett: I am nearly finished.

An Ceann Comhairle: Others want to contribute and there are more questions.

Deputy Richard Boyd Barrett: I am asking the Taoiseach to explain how the ill-defined benefits of the visit outweigh the alleged cost of €20 billion to the Irish people on foot of US Treasury Secretary Timothy Geithner’s intervention on the question of the bondholders. In the Taoiseach’s response to Deputy Martin, he stated the ECB makes the relevant decisions and that the question regarding the intervention by Mr. Geithner is irrelevant. However, the Taoiseach knows——

An Ceann Comhairle: He does not know; I am going to ask him to reply.

Deputy Richard Boyd Barrett: ——that if Mr. Timothy Geithner lets his opinion be known on this matter, it carries weight. Is the House not interested in the answer?

The Taoiseach: First, the figure is not €20 billion but €20 million.

Deputy Richard Boyd Barrett: It is €20 billion.

The Taoiseach: It is €20 million.

Deputy Richard Boyd Barrett: No, no. The Geithner—— 21 Ceisteanna 29 June 2011. - Questions.

An Ceann Comhairle: The Deputy should speak through the Chair.

The Taoiseach: The cost of the visits of Queen Elizabeth and President Obama is approximately €20 million. When the precise figures become available, we will let the Deputy know what they are conclusively. As I pointed out in the reply to Deputy Keating, the extent of coverage would be in the order of €300 million were one to buy it. The point is that if one does not promote one’s country, it will not be to the fore in people’s minds. The evidence of the value of the visits of both global personalities will be seen in time to come. I share Deputy Martin’s view on the English Market in Cork. It is a place of vibrant energy. The picture from the market was outstanding and I am sure it is iconic in many ways in that it demonstrates the warmth, hospitality and vigour of the people who work there. They are not afraid to promote the English Market in the rebel county. I commend the Deputy on that.

Deputy Gerry Adams: I was in Cork myself at the weekend.

Deputy Micheál Martin: That beats answering the Geithner question.

An Ceann Comhairle: Does Deputy Adams know about the English Market?

Deputy Gerry Adams: I know a lot; I get my black and white pudding there, but sin scéal eile. Deputy Keating referred to the political benefits arising from the English Queen’s visit. I have a question on this because it concerns the job of the Government. I was in Cork at a united Ireland conference, which was very successful and at which we had a very good discussion. Has the Government raised or has it any plans to raise any of these issues with the British Govern- ment beyond the Good Friday Agreement? Particularly on the vexed question of legacy issues, could the Taoiseach report on the progress, if any, on the issue of the British Government’s failure thus far to allow access to files on the Dublin and Monaghan bombings?

The Taoiseach: As I told the Deputy privately and during Question Time in the House, there were a number of very good meetings recently. The North-South Ministerial Council, at which the Deputy’s party was represented, the British-Irish Parliamentary Assembly and the British- Irish Council all showed enthusiasm and willingness to continue to work in every way possible towards the development of the peace process and the implementation of the Good Friday Agreement and the St. Andrews Agreement. I do not have any update for the Deputy on access to files other than what we discussed on the last occasion. As I said to Deputy Martin, I will continue to pursue this matter on every occasion that I can.

An Ceann Comhairle: I asked Deputy Higgins to be brief in asking his supplementary question. We have spent 16 minutes on these questions.

Deputy Joe Higgins: I will be very brief but the lengthy statement that the Ceann Comhairle allowed Deputy Keating calls for supplementary questions.

An Ceann Comhairle: He had two questions tabled so I decided I had to allow him appropriate time.

Deputy Richard Boyd Barrett: I had six yesterday.

Deputy Joe Higgins: The Taoiseach said the 38,000 articles and other items of publicity concerning the recent visits equated with €300 million in advertising for this State. This amounts to €7,894 per item of publicity. Does the Taoiseach concur that the statement made by the 22 Ceisteanna 29 June 2011. - Questions.

Minister for Transport, Tourism and Sport, Deputy Varadkar, that caused panic among the sharks in the financial markets and was carried 2,500 times around the world would, on the Taoiseach’s figures, equate to €20 million in advertising damaging to his Government?

An Ceann Comhairle: I do not know how the Taoiseach can answer that.

The Taoiseach: I have no control over the headlines that are carried around the world. All I can say is that coverage of the equivalent of the estimated 30,000 articles covering both visits to this State would cost €300 million were one to acquire it by advertising.

Deputy Richard Boyd Barrett: The Taoiseach should have seen some of the articles.

The Taoiseach: I am not sure what the Deputy is driving at.

Cabinet Sub-committees 3. Deputy Gerry Adams asked the Taoiseach the number of times that the Cabinet sub- Committee on Health has met; the members of this sub committee; and the regularity with which it is envisaged that this sub committee will meet. [17198/11]

4. Deputy Micheál Martin asked the Taoiseach if he has formalised the Cabinet Sub-Commit- tee on Health as promised during last week’s Taoiseach questions. [17276/11]

The Taoiseach: I propose to take Questions Nos. 3 and 4 together. The Government has formally agreed to the establishment of a Cabinet committee on health. The members of the committee will be the Tánaiste and Minister for Foreign Affairs and Trade, the Minister and Minister of State at the Department of Health, the Minister for Children and Youth Affairs, the Minister for Public Expenditure and Reform and I. Other Ministers, Mini- sters of State and the Attorney General may attend as required. A group of senior officials drawn from the relevant Departments, co-ordinated and chaired by my Department, will support the work of the committee. The committee will determine its own work programme and working arrangements. I anticipate that it will hold its first meeting in the coming weeks.

Deputy Gerry Adams: Perhaps the information I was seeking was contained in the Taoiseach’s answer but I missed it. Could the Taoiseach clarify the remit of the sub-committee? There is frustration over the fact that we can only ask how often such committees are allowed to meet and the identity of the members. We cannot ask about their work because of Cabinet confidentiality. I note from looking through the records that when the Taoiseach was in opposition, bhíodh sé ag tabhairt amach faoi sin agus bhíodh an ceart aige. He was giving out about Deputies not being able to obtain clarity on work delegated to committees. Are there any plans to change this? Deputy Ó Caoláin and I have been raising pertinent issues concerning health but we cannot obtain clarity on the sub-committee on health because of the way the protocols work. Will the Taoiseach give us a notion of the committee’s remit? Does he have plans, as part of his plans to reform the Dáil, to change the way the system works?

The Taoiseach: It will not be discussing the football results anyway. The reason we established a sub-committee to deal with health is because the health area is so broad and complex that it would take up too much time to cover both social protection and health together so we established a separate sub-committee. 23 Ceisteanna 29 June 2011. - Questions.

[The Taoiseach.]

The remit of the sub-committee will be decided by it, but the Deputy can take it that by and large it will focus on the areas which, in so far as the programme for Government is concerned, refer to the health and well-being of the Irish people. At its first meeting, the sub-committee will determine an agenda of work in this regard. On many occasions, the Minister for Health has pointed out his desire to change the structure to one where the delivery of a universal health insurance scheme can be introduced to end the two-tier system and provide a better quality health service for everybody in the country. In this general area, the sub-committee on health will decide on its work programme and matters concluded at the sub-committee will be brought to the Government for decision by the Minister.

Deputy Micheál Martin: In recent weeks, Ministers have been quoted on the record giving briefings about proposals they are bringing to Cabinet sub-committees. For example, the Mini- ster, Deputy O’Dowd, did an interview at the weekend where he told the country about proposals he had with regard to the sub-committee dealing with infrastructure and its agenda. This is fair enough and I hope restrictions will not be imposed on us discussing issues with regard to the Cabinet sub-committee on health if others are doing so. The Taoiseach stated he would deal with this issue, but so far he has failed to do so. With regard to the sub-committee on health, the Taoiseach stated its first meeting will be in the coming weeks. I find it extraordinary that it has not met already given the very serious issues on the agenda, such as Roscommon, the junior doctor crisis, the fair deal issue, the row with the VHI and the firing of the board of the HSE. Has the sub-committee been presented with a detailed plan with regard to compulsory health insurance proposals? Has it been given an outline plan on this? Does such an outline plan exist with regard to this fundamental question that is in the programme for Government? It will fall due to be considered by the Cabinet sub-committee on health.

The Taoiseach: Deputy Martin is aware that the Government has established the Joint Oireachtas Committee on Health and Children which will also deal with a range of issues that are considered important and urgent. The sub-committee has not yet been given a detailed plan for health insurance. The sub-committee has not met. When it does meet, it will decide its agenda. As I pointed out to the Deputy, it will be serviced by senior officials, and named Ministers and others for whom it might be appropriate to attend will attend. On the first occasion the sub-committee meets, it will decide on a body of work and whatever relevant information is necessary to complete that body of work will be provided, including background information on health insurance schemes.

Deputy Micheál Martin: Does such a detailed plan exist to be put the sub-committee?

The Taoiseach: The Government has a plan and programme for the development of universal health insurance, and over the period ahead work on that plan and its implementation will be a central focus of the Government in so far as health and the well-being of the people are concerned.

Deputy Micheál Martin: Will the Government publish this plan?

The Taoiseach: We will announce the decisions as they are made in respect of the development of the plan.

24 Ceisteanna 29 June 2011. - Questions.

Deputy Micheál Martin: The Taoiseach stated a detailed plan exists for the implementation of compulsory health insurance. If it exists, will he publish it now?

The Taoiseach: It is published in so far as the programme for Government is concerned.

Deputy Micheál Martin: That is not a detailed plan.

The Taoiseach: As the Deputy is aware, one of the central issues in respect of health is to introduce a universal health scheme over a period of years to change the structure from what we have to one which we believe has far more potential for better delivery of service to a higher standard for everybody in the country. This is where the work of the Government will be. As decisions are made they will be announced as part of the structure, strategy and progress to implement the programme.

Deputy Richard Boyd Barrett: Will the Taoiseach discuss at the health committee as urgently as possible the plans to close accident and emergency services at Loughlinstown and other hospitals and to revisit, reconsider and reverse these decisions and remove the huge anxiety and distress that people are facing as a result?

An Ceann Comhairle: Sorry Deputy, put the question. We are moving on.

Deputy Richard Boyd Barrett: Will the Taoiseach consider how the——

An Ceann Comhairle: We are not having a debate.

Deputy Richard Boyd Barrett: ——-hospitals that will remain will be overrun——

An Ceann Comhairle: No, sit down please.

Deputy Richard Boyd Barrett: These hospitals, which are already overrun, will be even more overrun if these accident and emergency units are closed.

The Taoiseach: Deputy Boyd Barrett is here long enough to know that he can raise this matter by way of parliamentary question——

An Ceann Comhairle: Correct.

The Taoiseach: ——or in an Adjournment debate if the Ceann Comhairle gives authorisation.

An Ceann Comhairle: Which I have already done.

Deputy Richard Boyd Barrett: There are queues for both.

The Taoiseach: The agenda for the Joint Oireachtas Committee on Health and Children is determined by the Chairman of that committee. As the Deputy is also aware, any Deputy is entitled to attend at any committee he or she so wishes.

Deputy Micheál Martin: What is in the programme for Government is setting out the objective, agenda and ideas on certain issues. There is no plan in the programme for Government on compulsory health insurance. For the record, will the Taoiseach clarify his previous answer? Does a detailed plan exist on the introduction of compulsory health insurance? If it exists, will the Taoiseach publish it? 25 Ceisteanna 29 June 2011. - Questions.

The Taoiseach: If I recall correctly, the Deputy published approximately 900 documents in respect of the area of health.

Deputy Micheál Martin: I am asking you about this scheme.

The Taoiseach: The plan as published in the programme for Government is to introduce a universal health insurance system in the country to end the two-tier system. The Government in its work ahead will give effect to this strategy. The Minister for Health has already indicated the timescale he envisages to achieve this and this is where the focus of the Government will be. The background work and detail will be decided upon by the Government as we make progress.

Deputy Micheál Martin: There is no plan.

The Taoiseach: There is.

Deputy Micheál Martin: There is no plan.

Northern Ireland Issues 5. Deputy Gerry Adams asked the Taoiseach if he will report on his recent visit to the North; and the persons that he met there. [17256/11]

6. Deputy Gerry Adams asked the Taoiseach if he has been in contact with the First and Deputy First Minister in relation to recent violence in East Belfast. [17257/11]

7. Deputy Gerry Adams asked the Taoiseach when he next plans to travel to the North; and the persons that he will meet. [17258/11]

8. Deputy Joe Higgins asked the Taoiseach if he will report on his plans to visit Northern Ireland. [17273/11]

9. Deputy Joe Higgins asked the Taoiseach if he has received a report on the sectarian clashes in the Short Strand area of Belfast on the 21 and 22 June 2011. [17274/11]

10. Deputy Micheál Martin asked the Taoiseach the contacts he has had with the Northern Ireland First Minister and Deputy First Minister to discuss last week’s rioting by loyalist para- militaries in Belfast. [17277/11]

11. Deputy Micheál Martin asked the Taoiseach if he will detail his approach to the number and timings of North/South meetings at Cabinet level. [17284/11]

12. Deputy Micheál Martin asked the Taoiseach if he will outline in more detail the more proactive role he intends taking in relation to recent events in Northern Ireland. [17672/11]

13. Deputy Micheál Martin asked the Taoiseach if he will provide further details on his visit to Northern Ireland at the weekend; the persons whom he met and the discussions he held. [17673/11]

14. Deputy Micheál Martin asked the Taoiseach his priorities for his first official visit to Northern Ireland; and the arrangements that have been made. [17674/11]

The Taoiseach: I propose to take Questions Nos. 5 to 14, inclusive, together. 26 Ceisteanna 29 June 2011. - Questions.

I travelled to Derry on Saturday, 25 June, to participate at the official opening of the new peace bridge. Also in attendance at the bridge opening were the North’s First Minister, Peter Robinson, and Deputy First Minister, Martin McGuinness; European Commissioner for Regional Policy, Johannes Hahn; the Lord Mayor of Derry, Maurice Devenney, as well as representatives of ILEX and the special EU programmes body. The peace bridge in Derry is a modern and potent symbol of all that has been achieved in overcoming adversity and division and the potential of what can be achieved in the future. It is a hugely encouraging milestone to all those who are working to sustain peace and create a thriving economy in which to live. It also underlines in a tangible way what can be achieved when we all work together towards a vision of the future. While in attendance at this event I took the opportunity to have informal discussions with the First Minister and Deputy First Minister on recent developments in Northern Ireland. The events of last week were regrettable and serve to remind us that we can never afford to be complacent about peace in the North, a point I made in my speech at the opening of the peace bridge on Saturday. We must continue to work with communities to tackle the issues of sectarianism. The Garda will, of course, continue to provide every assistance and co-operation to the PSNI in tackling criminality on both sides of the Border. I have been receiving regular updates from officials in relation on the situation and will continue to be kept up to date. Reconciliation work with communities on the ground will continue to be supported by the Government through the reconciliation and anti-sectarianism fund which is administered by the Department of Foreign Affairs. After the opening of the peace bridge I paid a visit to Altnagelvin Hospital in Derry where the Government is collaborating with our Northern colleagues to provide a new radiotherapy unit which will provide services to patients from Donegal. I am personally committed to seeing further co-operation between North and South such as the Altnagelvin project and intend visiting Northern Ireland on a regular basis. As I reported in the House last week, at the last plenary meeting of the North South Minis- terial Council we approved a schedule of future North South Ministerial Council sectoral meetings which will take place before the end of this year.

Deputy Gerry Adams: Tá mé an-sásta go raibh an Taoiseach ann ag oscailt an droichid nua i nDoire. Bhí lá galánta ann sa chathair stairiúil sin. Bhí mé ag caint le Martin McGuinness faoi sin agus bhí seisean ag labhairt faoi “brand, bright new day”—níl a fhios agam an raibh sé ag labhairt nó ag canadh. Tááthas orm fosta go raibh an Taoiseach in ann dul chuig Otharlann Altnagelvin, tá obair iontach déanta ansin ag na húdaráis anseo agus ag daoine sa Tionól. Aontaím faoin méidabhí le rá faoi na rudaí dona a tharla i mBéal Feirste agus is cúis sásaimh é go raibh an Taoiseach ag caint leis an Phríomh Aire agus and Leas-Phríomh Aire faoi sin. Rinne an tArd-Mhéara, Níall Ó Donnghaile, an-obair fosta, chomh maith le daoine eile ar an taobh eile. Tá mé sásta fosta gur thug an t-Úachtarán cuairt ar an cheantar lena fear chéile, cuairt an-tábhachtach a bhí ann ar an Trá Gearr agus ar cheantar na ndílseoirí fosta. Obair mhaith í sin atá ina céim eile chun cinn sa phróiseas síochána. I will round off by referring to the Taoiseach’s comment that the Government continues to be committed to funding or assisting projects which are of benefit to people across the island. Does he agree that more such joint projects are needed to continue the peace process and help people? While the decisions on Altnagelvin Hospital and the bridge building, both figurative and literal, were good, it is ridiculous that we have two different education systems. Magee College and Letterkenny are a good example. These types of issues could be easily sorted out 27 Ceisteanna 29 June 2011. - Questions.

[Deputy Gerry Adams.] by Ministers working with their counterparts not only on health and education but also on the economy, energy and so forth. Will the Taoiseach give us some sense of the Government’s intentions on these matters?

The Taoiseach: I share the Deputy’s view. There are unique opportunities for continued development in an all-island, cross-Border sense. The area of tourism and trade has always been central to this. The peace bridge, with its iconic symbol, is symbolic of the distance people have travelled in Northern Ireland in general and Derry in particular. The opening of the bridge also symbolises the extent of co-operation and assistance provided by our European colleagues. It was great that Commissioner Hahn was present at the opening to see at first hand the enthusiasm of people and the distance Derry has travelled. The city is now a centre of energetic vibrancy and is looking forward to fulfilling its role as city of culture 2013. The arrangements being made in this regard are first class. Developments at Altnagelvin Hospital, where I met many cancer patients, have brought a conclusion to a very long saga. The Government intends to follow through on the commitment made by the previous Government on this matter. The statement from the Minister, Edwin Poots, confirming that Altnagelvin Hospital will have a radiotherapy unit has been sealed, as it were, by a commitment made by the Irish Government. The allocation provided for completion of the radiotherapy unit is of the order of €19 million. It is important to note that staff at Altnagelvin Hospital point out that the unit is not only for Derry but for the north west as a whole as up to 30% of those who will attend the unit will be from County Donegal, as is right and proper. I see huge scope for further interaction in a cross-Border sense. I hope Ministers here and from the Executive, both in their informal connections and in the sectoral areas they will pursue between this and the next formal meeting, will start to focus on areas where co-operation is possible and there will be cost savings and mutual benefits as a consequence. Education is clearly one such area, although there are different certification and qualification standards in place and these are always difficult to level out between professionals, as the Deputy will understand. There are myriad things that can happen in everybody’s interest and I support that.

Deputy Micheál Martin: I object again to the Taoiseach treating every Northern Ireland issue as related, as had been done by taking Questions Nos. 5 to 14, inclusive, together. This is a disappointing attitude which denies Deputies the opportunity to obtain real and specific information on the questions we have asked. I tabled five of the questions in the group. I welcome the progress made on the radiotherapy unit for Altnagelvin Hospital. The previous Government was committed to the unit and it is good to note that progress is continuing to be made in this regard. On the economic side, the north-west spatial strategy requires further development, engagement and agreement on all sides. There has been at times on the Northern side a reluctance on all sides to engage in what is a logical approach to economic and social development in the north west as a special economic zone. There are many significant complementarities. I ask the Taoiseach to pursue this matter in his contacts. On the Short Strand issue, I pay tribute, as I am sure will the Taoiseach, to President and Senator McAleese who visited the lower Newtownards Road and Short Strand yesterday. While the visit was arranged before the recent trouble, the timing was excellent and served as a reminder of the need for us to continue to take an active role and encourage community development and reconciliation. Will the Taoiseach give a commitment to ensure the supports provided by the Department of Foreign Affairs to the reconciliation and anti-sectarian funds 28 Ceisteanna 29 June 2011. - Questions. are ring-fenced and maintained? While the sums involved are not very large, they play a significant role in providing seed funding to many community groups and organisations which work to enhance reconciliation and community development in interface areas. Has the Taoiseach been given a briefing on what took place during the recent trouble, who the PSNI believes was responsible and what is being done to avoid a repeat of the attacks we saw on the Short Strand? Will he continue the spirit of cross-party co-operation on these issues and share these briefings with me and my party’s spokesperson on foreign affairs?

The Taoiseach: I share the Deputy’s view in this regard. We cannot call for others to provide funding if we are not prepared to provide some ourselves. Deputy Martin and I have discussed this matter previously. Sensitive areas and fragile communities need to have the agencies of both Governments constantly working with them. Funding of €3 million was allocated for 2011 for the reconciliation and anti-sectarianism funds. This figure matches the funding provided from 2008 to 2010. Two allocations of funding were made this year and a further round of funding allocations is expected to take place in the autumn. To date in 2011, a total of €2.194 million has been allocated to 80 groups and organisations. More than ten groups and organisations working in the Derry region received grant allocations in 2011 and many of these work with young people who are at risk of involvement in interface violence and anti-social activity. I support this funding which we will keep under review. Everybody has a valid part to play and from that perspective the Government and agencies it supports will continue to work with our colleagues politically and at community level in the interests of everybody so as to ensure the peace process continues. The PSNI made clear its view on who was responsible for the riots. They achieve nothing and give a bad name to the good work being done by many people in Northern Ireland on all sides of the community. It is this work that we want to continue. The focus of the Government will be on co-operation with the Executive and between the Garda and PSNI as well as providing support for communities both here and abroad. I will continue to work as we have always supported all Government activity in this area for the past 25 years.

Deputy Joe Higgins: While there is no question that the UVF was responsible for the recent attack on the Short Strand area, is the Taoiseach aware that the traffic is not all one-way, so to speak? Ongoing sectarian clashes are taking place in areas of the North with individuals and groups in both communities responsible for fomenting the trouble. Unfortunately, the individuals and groups in question are able to use mass unemployment and a sense of hopelessness among a cohort of youth who do not see much future for themselves against the economic background. That is a breeding ground for the sectarian clashes. Will the Taoiseach now review the Good Friday Agreement, 13 years after it was reached? When I spoke on it in the Dáil I said it was an institutionalisation of sectarian division and, unfortunately, that has proved to be the case politically. The political parties in the Executive, for example, are still largely 12 o’clock almost exclusively on one or other side of the sectarian divide. Real action, rather than symbolism, is needed to address the crises and issues that are a breeding ground for sectarianism. Does the Taoiseach agree that the horrific cuts being planned by the British Government for health and other areas, including community areas, will further complicate and add difficulty to the situation and that they should be resisted?

The Taoiseach: Symbolism is important. It is not just the symbolism of the new Peace Bridge in Derry but the fact that people and cyclists can now cross the Foyle over the Peace Bridge and visit Ebrington Barracks, which has been transformed into a public facility, speaks of the 29 European Council 29 June 2011. Meetings: Statements

[The Taoiseach.] journey the people of Derry, in particular, have made arising from this. That symbolism also gives young people a sense of hope that the future will be very different from the past. The discussions we had in respect of the North South Ministerial Council reflected, to some extent, the changes that are coming in Northern Ireland because of the budgetary situation and the views of the British Government. This Government is committed to a number of projects to continue to demonstrate that we believe economic activity on both sides of the Border helps the entire island. Obviously, I cannot speak for the British Government but the period ahead for Northern Ireland will not involve elections next year or the year after, so there is a clear space politically for the new Executive and the Members of the Assembly to do their work. I am aware from our conversations that they are discussing a range of objectives and problems with the British Government. It is a matter for them to decide. As far as this Government is concerned, we will continue to involve ourselves closely. As the Minister for Social Protection, Deputy Joan Burton, has often pointed out, in loyalist areas, in particular, young working class men have a sense of fragility and they must be shown that change and hope can lead to a better future and life for them. That requires involvement, agencies to work with people, communities to work with each other and it requires investment. We will continue to provide that assistance in so far as we can.

Deputy Micheál Martin: On the broader issue of contacts with the Northern Ireland Execu- tive, we need evidence of a more active engagement with the North from across the Govern- ment. It is surprising that four months into the term of the new Government there has been no formal series of meetings between the Taoiseach and Northern leaders. I would have expected that to have happened at this stage. It is important that an Irish Government step up its engagement, as opposed to stepping away from the North. There is a sense in some quarters that perhaps the issue is closed and that we should just let people get on with things. That is a wrong approach and I am concerned it might be the approach taken by members of the Government. I ask the Taoiseach to ensure that all levels of the Government undertake a proactive engagement with issues in the North. Will he agree to increase his direct contacts with Northern leaders? Does he envisage doing so? Will he ensure that we will not have to wait until the next North South Ministerial Council to progress the issues that were discussed at the last one in Farmleigh?

The Taoiseach: Deputy Adams got the mood right in this case. There has been a strong and positive reaction to my attendance at the opening of the Peace Bridge. I have encouraged every member of the Government to involve themselves informally with their counterparts in the Executive. I hope that by the time the next North South Ministerial Council takes place a range of sectoral meetings will have taken place with interests on either side. Beyond that, I hope there will be regular contact between our Ministers and those in the Executive. For my part, it is a case of structuring my time in a better way so I can make regular contact with the First Minister, Deputy First Minister and the leaders of the other parties. I will continue to do that and will be happy to report regularly to the House on what we are doing. I do not object to the House having an opportunity to discuss continuing issues in respect of co-operation between the Republic and Northern Ireland or issues as they arise. This is in everybody’s interest.

European Council Meetings: Statements The Taoiseach: Last week’s meeting of the European Council focused on a number of issues of vital interest for the future of the Union and its citizens. On Thursday evening, the Council discussed economic matters, with discussion falling into three broad areas — economic policy 30 European Council 29 June 2011. Meetings: Statements co-ordination under the European Semester and Euro Plus Pact; implementation of the package of measures that were agreed in March; and the ongoing crisis in the eurozone, including the situation in Greece. We brought the first European Semester to a close. This process began in January with publication of the Commission’s annual growth survey. Based on this, the spring meeting of the European Council in March agreed a set of priorities for fiscal consolidation and structural reform across the Union. Based on these priorities, in April, member states submitted national reform programmes and stability or convergence programmes. Having assessed these, the Com- mission then made a series of recommendations to each member state, and these were adopted by the European Council last week. These recommendations should now be reflected in member states’ national budgets and in their programmes of structural reform for 2012. In Ireland’s case, it was recommended that we continue to implement the EU/IMF programme as the best means of securing our economic recovery. I was happy to reiterate the Government’s commitment to this vital task. Recent events have demonstrated how interde- pendent we are within the European Union. An economic setback for one is an economic set back for all. The European Semester process is a significant step towards enhanced economic policy co-ordination and, as such, it is to be welcomed. Of course, individual member states remain responsible for their own budgetary choices, and that it as it should be. However, there is now a shared understanding of the steps each needs to take and a political commitment to implementing what has been agreed. President Van Rompuy welcomed the fact that the country-specific recommendations were adopted without having been watered down. I agree that this sends out a strong message that we are ready to do what needs to be done. It goes without saying that the case for closer co- ordination is even greater in the case of a shared currency. For that reason, in March it was agreed that countries in the eurozone, and any outside that chose to join, would aim to go further through the Euro Plus Pact in order to boost competitiveness and foster growth. A total of 23 member states are now part of this process and have submitted a range of commitments. In Ireland’s case, they are part of our EU/IMF programme or the national recovery plan. At the meeting we agreed that these commitments were a step in the right direction. However, there was also acceptance that in their next round of commitments member states need to ensure a broader scope, a more concrete approach with more specific and measurable commitments, and a higher degree of ambition. On the pragmatic co-ordination of tax policies under the pact — through which we will work on the exchange of best practices, the avoidance of harmful practices and proposals to fight fraud and tax evasion — we agreed to hear a progress report from Finance Ministers and the Commission at the next meeting in December. We also took stock of progress on the comprehensive package of measures adopted by the European Council in March. This package has been now almost fully implemented. Agreement has been reached on the European Stability Mechanism and on amendment of the European Financial Stability Facility. All member states will now take the steps necessary to ensure ratification on the Treaty by the end of 2012, to allow it to enter into force in 2013, and to provide for the rapid entry into force of the amended EFSF. As I have previously informed the House, now that the final details are known the Attorney General is examining what will be required in legal terms to allow Ireland to proceed to ratification. Without prejudice to the outcome of this examination, it is worth recalling that the previous Attorney General was satisfied that the proposed change to the Union’s Treaty, which will allow for the establishment of the ESM, had no constitutional implications and that, therefore, no referendum was required. 31 European Council 29 June 2011. Meetings: Statements

[The Taoiseach.]

We welcomed progress on the package of six legislative measures which will strengthen economic governance within the Union. These will strengthen the Stability and Growth Pact and reinforce macroeconomic surveillance. There was some disappointment that it has not yet been possible to secure final agreement with the Parliament to allow adoption of the measures on first reading. President Van Rompuy urged the Parliament not to let the better be the enemy of the good. This was good advice which I hope will be heeded. In considering how best to realise Europe’s potential for growth and job creation we agreed that the administrative burden on SMEs needs to be further reduced and that, where appropriate, micro-enterprises, which are the smallest of the SMEs, should be exempted from certain future regulations, or at least, be subject to a lighter regime. In this regard, we welcomed the Commission’s intention to assess the impact of future regulations on micro-enterprises and to screen existing laws to identify existing obligations from which they should be excluded. We agreed to come back to the matter in December. Given the critical importance to our recovery of the SME sector in Ireland, I very much support and welcome this work and I look forward to its being taken forward as a matter of urgency. Finally, our economic discussion looked at the situation of member states currently under an EU/IMF programme. Naturally, this part of our discussion focused on Greece, where events continue to unfold. We welcomed the progress that has been made, particularly in the area of fiscal consolidation. The extent of the effort of the Greek Government and people to get back on track is sometimes overlooked in the heat of debate, and this is not fair. Of course, a great deal more remains to be done. There was strong support for Prime Minister Papandreou’s efforts to secure the agreement of his Parliament for the programme of austerity measures which is necessary if the fifth tranche of funding under the Greek programme, amounting to some €12 billion, is to be released in time to meet the country’s funding needs in July. Adoption of these measures will also open the way for the elaboration of a new programme of funding for Greece, which the Greek Government has now requested. The Heads of State or Government of the euro area agreed that the required additional funding will be financed through both official and private sources. We endorsed the approach agreed at the eurogroup meeting on 20 June, under which voluntary private sector involvement would be pursued through informal roll-overs of existing Greek debt, avoiding a selective default. We asked finance Ministers to continue their work to allow the necessary decisions to be taken by early July. We also called on all parties in Greece to support the programme’s main objectives and key policy measures. It is difficult to see Greece emerging from its current predicament unless some form of political unity of purpose is achieved. There is a mountain to be climbed and all must play their part. In saying this, and in setting out what now needs to be done, the European Council made clear its appreciation of what the adjustment effort means for Greek citizens. Nowhere is this more keenly felt than here in Ireland. I extend my very best wishes to the Greek Govern- ment and people, who must make some exceptionally serious decisions about their future direction this week. We offer them our support and solidarity. There was no detailed discussion of the situation in Ireland, though in its conclusions the European Council welcomed the progress we have made in implementation of our reform programme and agreed it was on track. I stressed again to the Council the need to ensure that every element of a programme, including pricing, contributes to the prospects of early recovery and a positive outcome. Ireland wants to return to the markets as soon as possible. As the House is aware, in my conversations with President Sarkozy I again took the opportunity to explain the importance of the issues involved for Ireland, both the rate attaching to 32 European Council 29 June 2011. Meetings: Statements our loans and our rate of corporation tax. On the latter, he is fully aware of our situation and that we will not be moving. We agreed that our finance Ministers and officials should continue their work together with a view to reaching a mutually acceptable outcome. I hope this can be done as speedily as possible. The meeting also welcomed the new Portuguese Prime Minister, Pedro Passes Coelho, to his first European Council, and welcomed his Government’s strong commitment to implementing the Portuguese programme of reforms. The question of migration was central to our discussions on Friday. The free movement of people under the treaties is one of the most tangible achievements of European integration. It is most obviously given effect through the Schengen arrangements in which most member states participate. For the arrangements to work as they should, there must be mutual trust between member states, and external borders must be properly managed. At our meeting last week, decisions were taken on four key issues. First, we agreed that the best way to decrease migratory pressure from the south is by helping young people in north Africa and the Middle East to build a future in their own home countries. Therefore, the new partnerships we intend elaborating with the countries of the region will include migration, mobility and security dimensions. Second, on asylum we said we consider the recent Com- mission proposal on procedures and reception conditions as a basis for future negotiations. We confirmed the 2012 target date for the establishment of the common European asylum system. Third, on Schengen we agreed that, without undermining the fundamental principle of free movement, the system could be improved. We agreed that, as a last resort, there could be a safeguard mechanism to be invoked in response to exceptional circumstances which were putting at risk the overall functioning of Schengen. This would allow the reintroduction of internal border controls in a genuinely critical situation. Any decision in this regard would have to be taken on the basis of specified criteria, and would be limited both in time and scope. The Commission was asked to table a proposal for such a mechanism in September. Fourth, the European Council welcomed the recent agreement on strengthening Forex, the Union’s agency for external borders. We agreed that the European border surveillance system will be further developed as a matter of priority to be operational by 2013. We also agreed that work on, so called, smart borders should be pushed forward rapidly to ensure we fully realise the potential of technology to assist in this vital task. For reasons with which the House is familiar, Ireland does not participate in Schengen. However, our people do benefit whenever they travel in the area and we have a strong interest in ensuring the system operates as efficiently and effectively as possible. The decisions taken last week are an important step in that direction. Our discussion of international matters focused on recent events in the southern Mediter- ranean region, including Tunisia, Egypt and Morocco, where there are grounds for cautious optimism, as well as Libya, Yemen and Syria, where signs are more worrying. The High Rep- resentative, Cathy Ashton, briefed us on her recent visits to the region, including the current outlook. I raised concerns on the situation in Bahrain in particular, and proposed that a reference be included in the Declaration on the Southern Mediterranean to be adopted by the meeting. This was agreed, and the declaration now notes that the European Council expressed its concern about “the process surrounding the trials and sentencing of opposition members in Bahrain” and “encourages Bahrain to ensure full respect for human rights and fundamental freedoms”. The changes underway in the region highlight the need to break the current stalemate on the Middle East peace process. The European Council called for all parties urgently to engage in negotiations as the only realistic prospect of improving the situation on the ground and as a 33 European Council 29 June 2011. Meetings: Statements

[The Taoiseach.] means to secure a lasting and comprehensive solution. The meeting of the Quartet, now scheduled for 11 July, will be important in this regard. We also expressed support for the convening of a conference in Paris to provide economic support for the construction of the Palestinian state in the framework of a re-launched peace process. On Croatia, the European Council took stock of progress and agreed that accession negotiations should be brought to conclusion by the end of the month, with a view to signature of an accession treaty with Croatia before the end of the year. As someone who has strongly supported Croatia’s progress toward membership, I very much welcome this significant development. There is no doubt that the prospect of membership of the European Union is a strong anchor for peace and progress in the western Balkans, a region where stability cannot be taken for granted. With this in mind, the European Council agreed to return to the question of enlargement in December. We also expressed our welcome for the arrest of General Ratko Mladic as a positive step for international justice and for Serbia’s EU perspective. President Van Rompuy set out for the meeting his plans for our work in the six months ahead. At our meeting in October, he expects that we will prepare for the meeting of the G20 that will take place in Cannes on 3 and 4 November. We will consider the external aspects of our economic policy, building on the work of the European Council meeting in September 2010, and prepare for a number of summits with key partners, including China, India, Russia and the US. In December we will consider the question of enlargement, the results of the nuclear stress tests now under way and follow up to the energy summit earlier this year. We will also return to commitments made under the Euro Plus Pact, notably on employment, ahead of the launch of the next European semester. In conclusion, the leaders of the Council and other countries in European were very responsive to the decisions taken by Ireland and the progress made by this country and our people in meeting our commitments under the IMF-EU bailout deal.

Deputy Micheál Martin: Last week’s meeting of the European Council was the latest in an increasingly lengthy series of crisis meetings. Its primary objective was again to find a way of containing the threat of a significant sovereign debt default by showing how the leaders are committed to comprehensive and credible action. As even the most basic look at the events and commentary since Friday suggests, this objective was not met. No significant new measures were announced. The leaders failed to address any of the identified area of dispute and no sense of energy or determination resulted from the meeting. Between December and March there was a definite urgency with the communiqué drafted for the 11 March Eurogroup meeting drawing this together into concrete actions. That text addressed short, medium and long-term issues and it was designed to be swiftly implemented. This has not happened. The number of vital decisions that have been put off for another day is confirmation of what many are now calling the real European Union economic strategy — kick the can down the road and hope something turns up. The Taoiseach’s approach to the summit was once again surprising. He raised issues of specific importance to Ireland in a way which was designed more for media briefing than achieving anything. He agreed a text concerning Ireland’s interest rate which is a significant step backwards but claimed it as a victory. Unbelievably, it remains the case that, after more than 110 days, the Taoiseach has yet to seek or hold a substantive bilateral meeting with a eurozone leader. Following this summit, Europe is in a situation where its leaders have left in place funding conditions they agreed in March are unsustainable; have agreed a new ECB President without 34 European Council 29 June 2011. Meetings: Statements discussing any reform of the bank or challenging the new president about his views; have not given a sense of providing clarity on Greece’s situation; and have failed to consider issues relating to non-sovereign debt in the eurozone. The decision of the Council to circulate a glossy brochure about a new €250 million building for itself was, at best, foolish and, at worst, a signal of a complete lack of understanding of the current situation of Europe and the Union. For people who passionately believe in the European ideal, this is a depressing situation and there is no doubt that a significant intervention is required by leaders over the next two months to make sure we do not reach another moment of truth in September. The situation in Greece rightly received the bulk of attention prior to the summit but it is not clear that anything new was progressed beyond the agreements reached at ECOFIN the previous Monday. When communiqués from these meetings state, “It was agreed by the leaders...”, the matter has often not been raised and it was agreed before they turned up in Brussels. Irrespective of the nature of support programmes and the handling of debt, further major fiscal and economic reform is required in Greece, something which its government freely acknowledges. Prime Minister Papandreou is a highly knowledgeable, competent and sincere man. Both within Greece and internationally, he has worked tirelessly to help his country. Even though he is a socialist and he would like to take more politically popular steps, he clearly wants to do the right thing. In light of this, the leaders of Europe should show much more consideration in the language they use in talking about Greece and its leadership. It serves no useful purpose to question the sincerity of the Greek Government. Equally, the best approach to the opposition of many Greeks to economic reform is not to lecture but to engage. The revised proposal for the European Stability Mechanism is good and the proposal to remove preferential creditor status is important. It should be of considerable assistance to Greece. What is not yet fully clear is whether the issue of the sustainability of debt has been adequately addressed. As we witnessed last year, the threat of contagion from either a badly conceived or partly executed measure is real. The Vienna initiative style of debt roll-over is worth trying and the move yesterday by President Sarkozy and the French banks is welcome. A substantial lengthening of maturities and improvement of the terms of Greece’s debt is essential. The threat of the ratings agencies to deem this to be a de facto default is both wrong and a disgrace. The lack of even the merest hint of self-reflection about their role in the current crisis is amazing. They are supposed to provide guidance, not to be enforcers of an inflexible, damaging and self-fulfilling approach. If there is no legally forced restructuring, then threatening to call a milder initiative a default is simply wrong. While their lax policies provided a foundation for the financial crisis, their new more rigid policy could make it much worse. The reform and regulation of the ratings agencies should be returned to the top of the agenda for finance Ministers. As the Taoiseach confirmed last week, he did not seek the inclusion on the agenda of any item relating to Ireland. He chose not to undertake a substantive bilateral meeting with any Head of State or Government involved in deciding matters relating to support for Ireland. What he did do was commit his staff to another round of briefing journalists with exaggerated and self-serving details about every real or imagined development. A difficultly has developed regarding how the Taoiseach describes his international contacts. When he visited London in April, he claimed in an address to senior financial personnel that he had held meetings with Chancellor Merkel and President Sarkozy. When he was asked about this in the Dáil, he rowed back and admitted that the so-called meeting involved nothing more than briefly talking at the side of a busy Council chamber. On his way into the EPP 35 European Council 29 June 2011. Meetings: Statements

[Deputy Micheál Martin.] meeting he told Irish journalists that there might be a breakthrough on the interest rate because “a form of words is being worked on”. This was quickly corrected by an official who said, “there’s always a form of words being worked on”. Later that evening, we had the almost surreal situation of the Taoiseach praising himself for telling leaders about the many virtues of this year’s budget. He neglected to say that he voted and campaigned against the same budget. As is being revealed every day on issues from the local to the international, when the Taoiseach said repeatedly during the election, “my only concern is polling day”, he was telling the truth. The problem is that he has taking his campaign tactics into Government with him. The attempt to spin everything is being found out. This is why the Taoiseach chose to announce and give a title to his “Gallic Spat” with President Sarkozy, thereby exaggerating a far from unique encounter in order to polish his image as a tough new leader. The clear and damaging outcome of this public grandstanding is indisputable. In April the Taoiseach announced that he was holding the first bilateral meeting in a “major diplomatic initiative” which he was going to lead. That meeting has so far been the only one. Instead of undertaking a tour of capitals, or taking up President Sarkozy on either of his two invitations to visit Paris, the Taoiseach has preferred to stay in Dublin and deliver regular and false attacks on the diplomatic activities of recent years. Last week the Taoiseach had another brief encounter with President Sarkozy. Yesterday he refused to say how long it lasted. What is not in doubt is that all that emerged was an agreement to continue to leave matters to officials. Given the amount of time the Taoiseach has spent attacking the number of roles filled by Irish officials during past European negotiations, this confirms that he has had an irony bypass.

The Taoiseach: Who wrote that for the Deputy?

Deputy Micheál Martin: As the Taoiseach knows well, but refuses to admit because it would undermine one of his favourite attack lines, the interest rate on Ireland’s support package was a fixed figure and not open to negotiation. In subsequent discussions, our partners agreed to reopen the issue. This culminated in the February agreement, formally ratified on 11 March, that our interest rate should be reduced in order to ensure debt sustainability. The need for interest rate reduction was no longer for negotiation, just the timing. In order to avoid answering any direct questions about his handling of the matter, the Taoiseach keeps patting himself on the back for holding a line on corporation tax which has been maintained by every Taoiseach and every Minister over decades. It has now emerged that President Van Rompuy tabled a text on 11 March which our Taoiseach rejected, in spite of general agreement that it posed no real threat to our corporation tax rate. It is about time that this text was published so that people can make up their own minds about this matter.

The Taoiseach: I will publish it, and it also relates to the CCCTB, to which the Deputy objected.

Deputy Micheál Martin: So the Taoiseach will publish it.

Deputy Lucinda Creighton: The Deputy is speaking out of both sides of his mouth.

Deputy Micheál Martin: Will the Taoiseach publish it?

The Taoiseach: I will publish it if the Deputy has it. There is no secret about it at all.

Deputy Micheál Martin: Deputy Kenny is the Taoiseach. Will he publish it? 36 European Council 29 June 2011. Meetings: Statements

The Taoiseach: It relates to the CCCTB and other tax matters. The Deputy quite rightly objected to that.

Deputy Micheál Martin: I am asking whether the Taoiseach will publish the text.

The Taoiseach: The Deputy has the information there. He can get his writer to publish it.

Deputy Micheál Martin: So the Taoiseach is not going to publish it. The delay in the deal to take account of the stress tests was reasonable, but given the fact that the stress tests and subsequent Government banking announcement were indistinguishable from expectations and existing policy, the failure to conclude a deal in March is inexplicable. Beyond the fact that the Government has halved the value of what it is looking for from an interest rate deal, what is equally worrying is the weakened text to which the Taoiseach agreed on Thursday. In March, a reduction was recognised as a prerequisite for debt sustainability, yet on Thursday the Taoiseach agreed that debt sustainability would be achieved simply through the implementation of the current programme. The Taoiseach needs to explain this serious development. The process for appointing the President of the European Central Bank managed to completely ignore the crisis, of which the bank sits at the very centre. It has been Ireland’s position since November that burning bank bondholders is an essential step. It was vetoed in November and the ECB continues to veto it, while issuing implied threats and refusing to provide a secure medium-term commitment to funding. Mario Draghi’s attitude to this issue has been unhelpful and his casual dismissal of Ireland’s reaffirmed wish to burn certain bondholders was unacceptable. He should not have been nodded through over dinner. The failure to discuss any reform of the bank is incredible.Λ Just as importantly, the behaviour of France and Italy in effectively claiming proprietorial rights over seats on the executive council did much to confirm the idea of a bank which treats the periphery as a nuisance rather than as a core concern. I hope someone from the Government will communicate to the ECB that its policy of aggressive anonymous briefings against member states must be stopped.Λ The statement by the Minister for Finance on Sunday that the ECB would understand what he meant, “because a nod is as good as a wink to a blind horse”, perhaps suggests that it is time to arrange for a more direct system of communication. The agreement to move to final accession procedures for Croatia is welcome and overdue.Λ The Council failed to note its role in reaching out to an increasingly sceptical Croatian public, something I hope will be taken up by Foreign Ministers. I welcome the Council’s commitment to greater sanctions on the Syrian regime and the implication in its briefings that the Union stands ready to make significant steps to aid the people of Syria. I also want to acknowledge what appears to have been a positive intervention from the Taoiseach on the situation in Bahrain. In the context of the wider issue of support for the new or potential democracies in the Arab world, the summit was disappointing.Λ What we need is to show our deep and long-term commitment to the development of civic society, democracy and broad economic development in these countries.Λ This requires a significant new initiative, a dedicated staff and extra resources.Λ The Mediterranean and neighbourhood policies were designed for a different time and different challenges.Λ No one is as well placed as Europe to help people who have created unprecedented opportunity through their bravery in recent months. It is time to show more substance in supporting them. I remain a strong believer in the European Union and its ideals.Λ I am very proud to lead the party which brought Ireland into the Union, the party which led the final process of enlarg- 37 European Council 29 June 2011. Meetings: Statements

[Deputy Micheál Martin.] ing the Union to include millions of people who had suffered for decades under communist dictatorships, and the party in government which ran a number of Presidencies ranked among the most successful ever. However, I reserve the right to be critical of its leaders and to point to serious failings in its actions. I think the Minister of State, Deputy Lucinda Creighton, is wrong in the way she has sought to portray my comments and those of others as being negative or ignoring huge progress.Λ I think she should reflect again on her recent comment to the Institute of European Affairs that “joining the EC in 1973 was an act of nation-building with arguably more tangible positive benefits for Ireland’s independence than the 1916 Rising”.Λ It is not necessary to diminish the absolutely fundamental role of 1916 for this State in order to express support for the EU, and I hope we will not be hearing this line again. This is Europe’s moment of truth, but it remains unclear how it will emerge from it.Λ This summit has not provided the confidence-building momentum which was so badly needed.Λ The Greek issue is in hand but not finalised.Λ Ireland’s interest rate reduction is at best frozen and at worse a step backwards.Λ Contagion remains an issue. In this circumstance, the worst thing the leaders of Europe could do would be to continue to muddle through, hope something shows up, wait until the next summit and once again go through the motions.Λ Now is the time to stop prevaricating, seize the problem and demonstrate to the people of Europe that the ideals of this Union are alive, are relevant and are a match for the problems we now face.

Deputy Gerry Adams: Ba mhaith liom cúig nóiméad de mo chuid ama a roinnt leis an Teachta MacLochlainn.

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

Deputy Gerry Adams: An féidir leat rabhadh a thabhairt dom nuair atá mé beagnach críochnaithe?

An Leas-Cheann Comhairle: Déanfaidh méésin.

Deputy Gerry Adams: Go raibh míle maith agat. The substance of the Government’s approach to the EU summit seems to have been to convince our partners in Europe that we are not Greece. Nuair a bhí an pobal Gréigeach ag léirsiú tamall ó shin, dúirt siad “níÉireannaigh muidne”. Mar sin, tá dhá thaobh den scéal sin. The unfortunate reality is that if the Government continues to follow the failed the policy of austerity, including public service cuts and increased taxes, to pay a debt mountain that nobody believes is tenable, then this State will be where Greece now is in a very short time. The Taoiseach and his colleagues were elected on a completely different mandate, but since the election, they have been implementing a Fianna Fáil manifesto. Irish bond yields have surpassed 12% this week, which is a record high. Anybody with common sense will know this tells us the market does not believe that the policies pursued by the Government are working, or that Ireland will be able to repay its debt. The Government continues to bury its head in the sand on this issue, refusing to recognise that we cannot borrow our way out of a debt crisis, particularly one of this magnitude. The Government also seems to be oblivious to the social consequences of its policies on Irish citizens, particularly the most vulnerable. It is irresponsible to insist on taking on more debt at oppressive interest rates, while imposing even more austerity policies on citizens. This failure has been compounded by the flippant response of the Minister for Finance that all of these problems can be sorted out if 38 European Council 29 June 2011. Meetings: Statements only people would go shopping. This is the same Minister for Finance who recently defended the despicable universal social charge. Tá muintir an Stáit seo faoi bhrú. Tar éis trí mhí in oifig, níl aon dul chun cinn déanta ag an Rialtas, go háirithe leis an ráta úis a íslú. As far back as 11 March, the Heads of Government decided that the interest rate of the EFSF loan should be lowered to take account of debt sustainability, but apparently not when it comes to this State. At the conclusion of last week’s summit, the Government had nothing to show for months of negotiations on this issue. The Government was elected on a promise to reduce the interest on the total bailout loan by 1%. It was claimed that this would save the Irish taxpayer around €400 million. However, the Minister for Finance told Deputy Doherty a different story this month. According to the Mini- ster, this is not the Government’s goal. The Government now wants a 0.6% reduction, which is almost half of its promised reduction on any further draw down of EU money, and this would save taxpayers less than €200 million. That is, of course, important, but it is a drop in the ocean when one considers our economic difficulties. The real issue in all of this is not a small reduction, but the fact that our partners in Europe have imposed a 3% handling charge on the €45 billion in loans they are providing. This means that those who claim to be our friends are actually profiting from this calamity to the tune of €10 billion. This is what the Taoiseach should be negotiating, if he will not face up to the absurdity and obscenity of this significant debt. There can be no shying away from the reality that this State and the people cannot afford the bailout and its punitive interest terms. That is evident every single day and I am sure the Taoiseach sees it as he goes about the country. I see it in my constituency, with more cuts in our health and education systems, more closures of hospital accident and emergency departments, reductions in wages being paid to low and middle income earners and the introduction of stealth taxes. Yet the Taoiseach has agreed to another €3.6 billion of cuts in the next budget. The Taoiseach is committed to lowering tax bands and credits as part of this, to generate general tax increases amounting to €1.5 billion and reductions in spending that includes social expenditure reductions. That is what the Taoiseach has signed up to implement. Yet, the Taoiseach, as well as the Tánaiste, are saying to the citizens that he will not raise taxes or cut social welfare. One cannot have a deal in which the Taoiseach has agreed to generate €1.5 billion by increases in tax and cuts in social welfare and then tell people that he will not do it. What other cuts to public services will he introduce? How many more areas will have to be closed? How many more special needs assistants will lose their jobs? How many children with special needs will lose their lifeline to education, with parents and their children losing their entitlements as citizens? How many children will be walking to school next winter? How many more workers will have their wages sliced, while also having to pay the universal social charge, property tax and a water charge and any other stealth tax that the Government can concoct? The claim that Fine Gael is the party that will not raise taxes or that Labour is the party that will defend workers all ring hollow when set against the reality of the decisions that this Government is taking. I want to briefly comment on the European Council’s about the humanitarian situation in Gaza. I share that concern. I know the Taoiseach has been in Gaza and I welcome the conclusions of the Council which call for a resumption of direct negotiations in the Middle East to provide the only real and realistic chance of improving the situation on the ground and leading to a lasting and comprehensive solution in that part of the world. I have been there a number of times, including a few days in Gaza, and I warmly welcome the unity pact between the Palestinian groups. That needs to be responded to positively and built upon. I want to support the crew of the MV Saoirse, the Irish ship to Gaza which will travel with the international freedom flotilla. I know some of those on board, including members of Sinn Féin, and 39 European Council 29 June 2011. Meetings: Statements

[Deputy Gerry Adams.] I wish them all well. I commend all of them on their courage and on standing up for the rights of the people of Gaza to live free of oppression. This second flotilla should be allowed safe travel and the Government should be speaking to the Israeli authorities to ensure that they get it. I further urge the Government to do all in its power to end the siege of Gaza and the suffering of the Palestinian people. It is neither right nor fair that, in an area as close to the county of Louth as makes no difference, people should be kept in an open air prison. The Government should support the unity efforts of all of the Palestinian groups and their demand for the recognition of their statehood, when it comes up in the UN later this year.

Deputy Pádraig Mac Lochlainn: It is welcome that the Taoiseach raised the issue of Bahrain at the European Council but that does not go far enough. The situation in Bahrain has caused great alarm to many in the medical profession in Ireland. The Royal College of Surgeons in Ireland has refused to condemn the arrest and detention of doctors, who were not only trained and are fellows of the RCSI but served as interns in Irish hospitals. Those doctors in Bahrain have been arrested and detained for carrying out the duties of their profession in accordance with the hippocratic oath. It is an outrage and an insult to the medical profession across the world and yet — I can only assume this — because the RCSI and others do very serious business in Bahrain, with an investment of €60 million and hundreds of trainees and staff, the RCSI refuses to speak out against this outrage. It spreads further, because the Sunni minority in Bahrain who rule that state in cahoots with Sunni colleagues in nearby kingdoms, which are not democracies, put together militia to keep down the democratic rights and entitlements of the Shia majority. Not so long ago, the Shia majority in Bahrain was 70% of the population, but that has decreased to 60% because of the strategic migration of emigrants to close down that number. What is happening in Bahrain is a profound embarrassment to the Irish State. Our President together with a former Taoiseach opened the colleges in Bahrain and we have not done enough to make it clear that what is being done in the kingdom in an insult to democrats and an outrage to doctors across the world. I implore the Government to do much more than to ask the powers in Bahrain to do this. I will now address the issues in Palestine and Gaza. We have a statement from the European Council that refers to the situation in Gaza, which remains of concern. Humanitarian assistance delivered to the population in Gaza should be in accordance with the relevant framework and decisions of the UN and should take care not to endanger human lives, which is I presume a response to the flotilla which is on its way to break the naval blockade and the wider blockade. The international community and the UN should hang their heads in shame because there have been repeated UN resolutions on the wider issue of Palestine and demands that the Israeli state immediately cease its illegal blockade and imprisonment of the Palestinian people who have to live in Gaza and endure an existence in that place. Let me read some of the statistics, of which I know the Taoiseach is aware. I acknowledge that the Taoiseach visited the people and I am sure he must have been moved to hear the stories and see it at first hand. More than 70% of nine month old children in Gaza are anaemic, 13.2% of the children in Gaza suffer irreversible stunted growth, 66% of households in Gaza are food insecure and 75% of the Gaza population rely on humanitarian food assistance. That is a shocking statistic. There are dangerous shortages of medical supplies in Gaza’s hospitals and 1,500 were murdered, the vast majority of whom were innocent civilians, by the Israeli state. Where is the consistency? We have a UN resolution against Libya to protect the Libyan people, which is immediately enacted by NATO and the international military forces. We have 40 European Council 29 June 2011. Meetings: Statements the same put to the Israeli state, where they murder and imprison those people in the state, and nothing is done to enforce the resolution. They get away with murder. A call has been sent out to civic society internationally to assist Palestine. The Palestinian people are a proud people and what they need is freedom, to have their dignity respected, the ability to be able to export and to have a proper existence. Because the international community has refused to carry out its own resolutions, and has stood idly by, as tragically happened on this island at one time, we now have a situation where peace activists are imploring the international community to inspect its ships and to verify the cargo. Some ships are carrying passengers but the vast bulk of the cargo is humanitarian aid, thousands of tonnes of it. Our Government, the UN Secretary General and the EU, having failed to act to protect the interests of the people of Gaza, are now saying to those courageous peace activists that they cannot do anything either. Not only will they not act, those who decide to act and put their own lives at risk are told they will not be protected. These international bodies will not tell the Israeli state to clear the path and to permit the landing of this aid; they will not even verify the cargo on the ship to demonstrate that there are no weapons on board. What are the people of Gaza to do? Who will help them? Who will hold up international law against the Israeli state? Here is the difficulty. Ordinary people, NGOs and every human rights organisation worth its salt has said the blockade and the hijacking of boats on international waters are illegal acts. These actions are repugnant to international law and decency but that is ignored. Irish citizens are joining courageous citizens from other nations to do the right thing by the people of Gaza. If there is to be consistency and we are to retain international goodwill, we must ensure the resolution of this situation and ensure that the aid gets through. The Israeli state must be confronted on its illegality and its terror once and for all.

Deputy Richard Boyd Barrett: Next week, from 6 June until 16 July, the EU-IMF delegation will come to Dublin to implement further austerity, as agreed at the European Council meeting, austerity that the Taoiseach and other European leaders appear to commend as a good thing but which is resulting in tremendous suffering for the people of Greece in so far as it is being implemented there and tremendous suffering for people here. Notwithstanding the insistence that there is a difference between Greece and Ireland, while the EU-IMF are here, protests will commence and continue for those ten days. There will be protests over the closure of Loughlinstown Hospital accident and emergency services, a closure that is being replicated in hospital accident and emergency services all over the country and which I hope will lead to further protests. On 12 July students will protest over registration fee increases while on 13 July there will be a large protest outside the Dáil by parents of special needs children who, as a result of the cuts this Government is imposing on those resources for our most vulnerable citizens, do not know if their children will have an education come September. On 14 July communities all over Dublin will protest the axing of bus services, with hundreds of buses and dozens of routes, mostly serving the elderly, the vulnerable, the immo- bile and young, being taken out of service. On 16 July all of those groups, and many others affected by the austerity that the Taoiseach and the other EU leaders wish to impose on the people of the State, will mobilise in a final demonstration demanding jobs and an end to cuts and austerity as dictated by the EU-IMF. These people will protest because they are the victims of the austerity programme European Council leaders have once again signed off and are determined to continue to inflict on the people of this country to pay off the bankers and bond holders who caused the crisis. Most of those protestors, as is the case in Greece, will feel there is a bizarre disconnect between this Government and the European leaders and the concerns and needs of ordinary people. The 41 European Council 29 June 2011. Meetings: Statements

[Deputy Richard Boyd Barrett.] Greek people and the Irish people cannot understand how the Government or the other Euro- pean leaders believe that savaging the incomes of ordinary people, attacking the most vulnerable and imposing austerity that is increasing unemployment in this country daily, cutting hospital services, bus services and inflicting austerity on the most vulnerable who bear no responsibility for this crisis, will achieve anything. What planet is the Taoiseach living on if he believes this will help economic recovery? Austerity in recent years has done the opposite; it has made things worse and will continue to do so. Is there any understanding that if the Govern- ment takes money out of the pockets or ordinary people or if it attacks the education system, it does not aid economic recovery, it sabotages the prospects for it? I ask the Taoiseach to reconsider, to show a bit of spine and stand up to the economic madmen in the ECB, the IMF and the EU who are inflicting extreme suffering on people and shoving down their throats an economic strategy that is failing to a disastrous extent.

Deputy Mattie McGrath: The European Council meeting was an opportunity for the Govern- ment to stand up and be counted in the national interest. We have been good Europeans, as has been recognised over the years, with Ireland being held up as a role model for other countries. We benefited from EU membership but we also paid a great deal. Now we are paying dearly for the mistakes of a small minority. It is very disappointing because when the Taoiseach and his Labour Party colleagues were in Opposition, they voted against every provision in the budget. People are bewildered then, after so many promises, that the Government can come and steal the clothes of the last Government. They are sitting in different benches but they have exactly the same policies. I supported Deputy Kenny as Taoiseach and I wish him well but we must stand up to the ECB. The world is watching what is happening in Greece with trepidation because it could throw us all into chaos. I know the Minister for Finance is working hard to avoid that contagion and we hope the Greek situation will be stabilised but we all know Greece does not have a hope in hell of repaying the money. I feel in my bones that we cannot pay the money we are being asked to pay either. I have been a small businessman since 1982 and I understand a small bit about business. That is why I voted against my late colleague, Mr. Brian Lenihan. The interest rate is too punitive and the amount of money we must pay back is too much. We all agree the ECB must be independent from political interference and that is the case in terms of its day to day business. In a time of crisis, however, when the European system itself is at risk, there should be provisions for the Heads of State, through the European Council, to challenge the role of the ECB. We must have those provisions because if we do not we are going nowhere and the same will happen when the next crisis occurs. This country must secure a more sustainable rate of financial support. We are getting a reasonable rate from the IMF but we are being screwed — I do not like to use that word — and blackguarded by our so-called friends in Europe. They are making a healthy profit while we are sucking the lifeblood out of communities. I agree with what was said last week by the Minister for Finance, Deputy Michael Noonan, that we should try to lift the economy but how can we when we have health levies and social charges among others taxes in order to try to pay the interest, let alone the entire loan? The health service is being diminished. I too am concerned about the general hospital in south Tipperary in spite of commitments by the Minister, Deputy James Reilly. I am also concerned about the cuts in education services, rural transport, elderly care services, small two- classroom schools and school transport. Various schemes have been put in place through many years of hard work and now they are just being wiped away. I do not blame it all on the 42 European Council 29 June 2011. Meetings: Statements

Government but we must go back to Europe and renegotiate. We must see the bigger picture. They will have to see it too. We anticipate further increases in interest rates by the ECB. Where is the care evident in that? The banks will have to absorb some of the interest rate increases themselves instead of just passing them on. We get over one crisis and then we are hit by an increase in interest rates again. Mortgage holders and ordinary business people are bewildered. They 1o’clock cannot see any light at the end of the tunnel. Those in Europe will have to listen. We will have to show backbone, stand up and fight our cause. We will have to be proud of the tricolour and let people know we will be a good European nation only when we get fair play, not when we are blackguarded, downtrodden and put down. Our German and French partners are not being fair. Their banks were 50% culpable for the mess we are in. They should take at least 50% of the blame, not get away scot free.

Deputy Clare Daly: It is unsurprising that the European Council meeting focused so much on Greece. I note the Taoiseach’s comments earlier offering support and solidarity to Greece. The antics of the Government are a peculiar definition of solidarity given its repeated statements of support for the vicious and brutal austerity plan that is being put before the Greek Parliament. I reject the notion that has been put forward by the Government that it is somehow in this country’s interest for Greek people to have foisted upon them a vicious austerity programme. How could that possibly be in the interests of ordinary people in this country? Let us look at what is being proposed in order for Greece to get the second misnamed bailout: a 10% cut in public spending; a 33% reduction in public sector wages and the virtual sacking of 20% of the public sector workforce; and the Greek economy will have to pay back €100 billion over three years, a staggering 40% of GDP. How could such a programme possibly be in the interests of any ordinary person in this country, particularly when the fruits of such austerity which has already been imposed on the economy have resulted in unemployment ballooning in Greece, 50,000 businesses going to the wall and industrial production falling by 20% with another 12% drop expected? All of that is to deliver nothing except what everybody knows could be the best outcome, a certain delay in what is inevitably now going to be a default. What the Government has been reflecting is not that it is good for ordinary people in this country that Greek people are pauperised in this way, but rather its concern that a default by Greece would lead to huge losses for European banks, in particular German and French ones, and then a crisis in the eurozone and a consequential knock-on effect in terms of the strategy of the Government. The people who are worried about what is going in Greece are the banks and speculators who caused the problems in the first place. If ordinary people in this country really want to express support and solidarity, it is best expressed by offering support for the movements of mass opposition that is taking place in Greece and Spain, where the media has played a terrible role in keeping extremely quiet about the amazing developments that have taken place in Spain with millions of people taking to the streets, the occupations of squares and the huge demonstrations of enraged youth and workers inspired by the events in North Africa and the Middle East. That points a way forward out of this mess. It is welcome that the Greek trade union congress has for the first time in 20 years called a 48 hour general strike. It is clear that more such action needs to take place and that the way out of the crisis is for ordinary people in Greece at a local and national level, and similarly with people in Spain and this country, is for us to link up in a united way to develop opposition to the austerity that is being imposed and to build solidarity across national boundaries. As other Deputies have highlighted, it is uncanny how similar the attacks are and the measures that are being foisted on Irish people through the EU-IMF deal. In some cases what is being foisted on ordinary people in other European countries is even worse. 43 European Council 29 June 2011. Meetings: Statements

[Deputy Clare Daly.]

The way forward is to step up the action that is taking place on the streets, develop it and come up with a solution that does not make ordinary people pay for a crisis that was not of our creation but goes back to the bankers, speculators and big bondholders across Europe who benefited substantially in the good times and now expect ordinary people to put their hands in their pockets and pay with our lifestyles and those of our children into the future. It is important that those struggles link up and that we do not bow down to the dictatorship of the financial markets as the Government does but that we stand up and ensure society is run much more democratically and for resources to be controlled in the interests of all people throughout Europe rather than the hierarchy at the top of the EU.

Deputy Micheál Martin: Will the Taoiseach agree to publish and make available to Members the text tabled by President Van Rompuy on 11 March on which the Taoiseach intervened which contained issues relating to CCTB?

The Taoiseach: No, I will not publish that text because I disagreed with it. Surely Deputy Martin did not expect a Taoiseach to go to a Council of Europe meeting and agree to raise our corporate tax rate? Is that what he expected me to do? I have no intention of doing that. Deputy Martin, rightly, supports that position. The House has given a firm commitment in that regard. The reason we do not have the interest rate reduction applied to us, which was agreed in principle, is because there was a demand that we would increase our corporate tax rate as a condition of that reduction. The leader has agreed in principle that a reduction should be applied to the countries in the ESFS bailout situation. We were not in it then because the stress tests were not completed on our banks. That responsibility was given to the Ministers for Finance. We have made some progress on that. We are not shifting from our corporate tax rate. The European Commission published its paper in respect of a common, consolidated, corporate tax basis. I have no problem at all involving myself in a discussion on that but I do so from a position of having a healthy scepticism about it. It is a legal requirement of the Commission to produce its proposals for legislation. Governments in other countries have objected to that. I have made my position clear. The officials continue to talk. The Ministers for Finance continue to work on the matter and I hope they can bring it to a conclusion. When it is brought to a conclusion I hope Deputy Martin will welcome it and we will move on.

Deputy Micheál Martin: The Taoiseach has an awful habit of meandering away from the specific question I asked which was simply if he would publish the text——

The Taoiseach: I am not meandering.

Deputy Micheál Martin: ——of the document tabled by President Van Rompuy.

The Taoiseach: I will not.

Deputy Micheál Martin: He is conveniently using the corporation tax rate as a potential smokescreen. Every leader, Minister and Government previously objected to any move on corporation tax——

The Taoiseach: Yes, but there was not a conditionality put on that.

Deputy Micheál Martin: This is a very important issue.

The Taoiseach: It is.

Deputy Micheál Martin: It was agreed on 11 March by all the Heads of State. 44 European Council 29 June 2011. Meetings: Statements

The Taoiseach: In principle.

Deputy Micheál Martin: They all agreed there should be a change in the terms and a reduction of the interest rate. The only issue was timing. In the interests of transparency, the Taoiseach should share that text with every Member of the House and the general public so that people can objectively make up their own minds on whether corporation tax was threatened by the compromise text put forward by Van Rompuy. If the interest rate had been reduced——

The Taoiseach: I am quite sure——

Deputy Micheál Martin: The Taoiseach should allow me to ask the question. If the interest rate had been reduced without compromising the corporation tax rate, Ireland would benefit by hundreds of millions of euro. We cannot make up our minds if we have not seen the compromise text put forward by Van Rompuy to break the deadlock on 11 March. It is a simple request. The Taoiseach has lectured everyone on transparency.

The Taoiseach: I am quite sure Fianna Fáil has the text.

Deputy Micheál Martin: He said this would be a more open Government which would do the “divil and all” in terms of transparency. Yet, I made a simple request — would he publish that text tabled by Van Rompuy — and he flatly refused. Does that not make a mockery of his commitment to transparency?

The Taoiseach: The Deputy knows so much about the text, I am quite sure he has it.

Deputy Micheál Martin: Will the Taoiseach publish it?

The Taoiseach: I am quite sure he has it.

Deputy Micheál Martin: I would not ask if I had it. Will he publish it?

An Leas-Cheann Comhairle: I am moving on to Deputy Adams.

Deputy Micheál Martin: It is a serious issue in terms of the amount of money involved. It is not a laughing matter.

The Taoiseach: Yes, it is a serious issue.

Deputy Micheál Martin: All I am asking is whether he will publish it.

The Taoiseach: No leader before me had ever been in a situation in which an offer of support was conditional upon this country’s raising its corporate tax rate. I refused to do that, I still refuse to it, and I will not move on it.

Deputy Micheál Martin: Will he publish it?

The Taoiseach: It is about time the Deputy began to support this country——

Deputy Micheál Martin: The Taoiseach knows we support it.

The Taoiseach: ——and stopped trying to score points with meandering statements about publishing the text. I am quite sure he has the text.

Deputy Micheál Martin: Publish the text. 45 European Council 29 June 2011. Meetings: Statements

The Taoiseach: I am quite sure he has the text.

Deputy Gerry Adams: As the Taoiseach has heard me say before, I do not understand his negotiating strategy, although I have tried hard. I do not think Fianna Fáil has much credibility on this issue, but that is scéal eile. When Fine Gael was in Opposition, he was quite rightly against this deal. What are his objectives? He has set them in broad-stroke terms. Since he came into Government, every time he goes to a summit or mentions the EU-IMF deal he says he is for the deal. He says the Government is committed to it and that we are paying our way. How on earth does he intend to catch their attention? This focus on the interest rate, welcome though it may be if and when we get a reduction, is similar to the fable of the emperor’s new clothes. The fact is that our partners are imposing a hefty 3% surcharge on their lending to Ireland which, according to figures from the Minister for Finance, will cost the Irish taxpayer €3.4 billion for every percentage point. It does not add up. It is absolutely crazy. It does not work out in any economic or financial configuration. The social consequences of this deal are dreadful. Sometimes when one listens to the rí rá here as Deputies heckle and barrack, one would think they had lost sight of what is happening out there in communities, hospitals and schools.

Deputy Peter Mathews: We know what is happening out there.

Deputy Gerry Adams: Excuse me. Deputy Mathews is doing exactly what I accused all the Deputies of doing, and I am surprised at him. Would the Taoiseach not agree that the dreadful social consequences of this deal are too great for Irish taxpayers to have to pay? Would the Government not be better to do now, in a planned way, what it should have done when it came into Government — that is, to tell our partners in Europe that this is not sustainable? We cannot pay.

Deputy Peter Mathews: We are doing that.

The Taoiseach: The Deputy asked about our objectives. Our objective is to get back to a situation in which this country is in charge of its own economic destiny. That means we must pay our way, meet our conditions and get out of the IMF-EU bailout deal as quickly as we can. That is why the Government has taken decisions on the banks and to give some element of stimulation to our indigenous economy within the constraints of the IMF-EU deal. That is why the Government is now focused on the scale of what we have to do to close our budget deficit. The Deputy is aware that if one is spending €20 billion more than one is taking in, there is a problem. We will not get out of this unless we deal with these problems. There is no point in running away from it. Every time we make any kind of comment here, we are all agreed that our corporate tax rate stays at the level it is at. This country is not the one that said it would impose a condition over and above what we are already meeting in the IMF-EU bailout deal. I want the Deputy to know that the conversations I had with President Sarkozy last week were different in tone and content from those we had previously. We have made some progress on this. Every other leader with whom I spoke the other day — President Barroso, Prime Minister Van Rompuy, Mr. Trichet from the ECB — recognised what is happening here to the extent that this country is meeting the terms and conditions of the EU bailout deal, which neither the Deputy nor I asked to get into and which the Government denied we were getting into at the time. However, we are in there, so we must deal with it. I recognise the challenge our people face. People with distressed mortgages, those on low pay or those who are locked out of employment because of the structure of the joint labour 46 European Council 29 June 2011. Meetings: Statements committees are coming to me as they are to everyone else. Our job is to stimulate our own economy, increase our exports even further, improve our productivity and build on our flexibility so that foreign direct investment will continue. Our people will have credit available to them as a consequence of the Government’s decision to deleverage the banks’ assets. We must now make them prove that credit is available for small business. As the Minister for Finance pointed out, there was a lack of demand for credit, because in many of those cases, when seeking credit, people went the wrong way by buying property in Bulgaria and elsewhere, ruining businesses they were in themselves. It is a fact of life. Our objectives are to get out of this mess, put our country in a much firmer position, provide employment for our people, close our budget deficit and have a country we can be proud of. I know the Deputy has some constructive suggestions to make in that regard.

Deputy Richard Boyd Barrett: I am trying to get my head around the Taoiseach’s logic and that of the European leaders.

The Taoiseach: As I am trying to get my head around the Deputy’s logic.

Deputy Richard Boyd Barrett: Well, the Taoiseach should answer these questions. How can he justify and explain the economic logic behind cutting special needs assistants, with the dis- ruptive effect that will have on our education system and our young people, who are our economic future, the closure of accident and emergency wards in hospitals around the country, the savaging of the incomes of low-paid workers, despite the injustice of it and the clearly depressive effect it has on the economy, and the selling of State assets, many of them profitable, as is being demanded by the EU and IMF? How will that aid economic recovery? How is it fair? How will it improve the situation? The logic behind it is bizarre. Is it not a fact that, in so far as there is now some discussion about shifting the burden on to the bondholders who actually caused this crisis, it is arising from the fact that the Greek people are protesting, rightly and justly, against the same vicious austerity measures that are being imposed on them? Did the Taoiseach discuss with his European counterparts contingency plans for the event of the eurozone breaking up? Are we in this country preparing contingency plans, such as printing punts, in preparation for the possibility that we might have to pull out of the euro? Can we have a direct answer to that question?

The Taoiseach: The answer to the Deputy’s question is no, we are not. Ireland is meeting its requirements and conditions, challenging though they are, and when the interest rate reduction is applied that will be of extra help. This debate is about the report of the European Council meeting, but the Deputy wants to raise the question of special needs assistants. This is an important, sensitive and personal issue for those to whom it applies. I and the Minister for Education and Skills have dealt with the matter. The Deputy is aware of the cap of 10,000 that applies to the number of special needs assistants. The Deputy is aware that the Minister for Education and Skills approved the allocation of 90% of assistants while retaining more than 400 for cases in which they may be required. No child who needs the attention of a special needs assistant will be left without one.

Deputy Richard Boyd Barrett: Hundreds are being refused.

An Leas-Cheann Comhairle: Deputy Boyd Barrett, please.

Deputy Richard Boyd Barrett: I have dozens of refusals in my constituency.

The Taoiseach: If the Deputy bothered to read the value for money report in respect of special needs assistants—— 47 European Council 29 June 2011. Meetings: Statements

Deputy Richard Boyd Barrett: The families and parents are telling me about these refusals. I do not need to be reading reports.

The Taoiseach: ——he would have noted that in many instances it became the norm for a special needs assistant to be allocated not because of disability or the particular challenges a child faced. This could not continue. I know from visiting many schools the value of special needs assistants to children who need them. There will in fact be more special needs assistants in the system this year than ever before. Of course, Deputy Boyd Barrett will not recognise this. Neither does he want to understand the Minister’s logic in holding back more than 400 of these to ensure they are allocated to children who really need them.

Deputy Richard Boyd Barrett: They are being refused now.

The Taoiseach: Regarding the Deputy’s comments on accident and emergency wards, at the beginning of each year, hospital budgets are signed off. Some hospitals are already €100 million over budget. This cannot continue. Somebody must pay for this. We are in this situation not by virtue of choice but by virtue of circumstance. To make our way out of this, we are going to have to make adjustments. In the beginning, there was no talk of making subordinated bondholders take a share of the responsibility for the bailout.

Deputy Micheál Martin: The previous Government passed legislation to bring such an effect into play.

The Taoiseach: The Minister for Finance has pointed out how this has become the reality.

Deputy Micheál Martin: It was the reality before the Taoiseach came into office.

The Taoiseach: The Minister for Finance is in the courts to see the subordinated bondholders take their share of responsibility. He will also take up the matter of the senior bondholders in Anglo Irish Bank in the autumn with the European Central Bank. Deputy Boyd Barrett, along with some other Members, believes we can continue on as if nothing happened without any charges against us. Unfortunately, as the Greek Government has found out, one has to pay one’s way. It is not the case there is an endless stream of money pouring into the country. It is fine if Deputy Boyd Barrett does not want to accept that reality.

Deputy Richard Boyd Barrett: The bondholders have plenty of money.

Deputy Micheál Martin: The Taoiseach is just filibustering.

The Taoiseach: Peaceful protest is perfectly legitimate. Deputy Boyd Barrett has not made one single constructive suggestion so far, other than having protests about this, that and the other. Can the Deputy give me one constructive suggestion about job creation, how we can save on waste and cut out inefficiencies, or provide better standards by doing more with less in the public sector?

Deputy Richard Boyd Barrett: Yes, tax the superwealthy.

Deputy Micheál Martin: The Taoiseach is just filibustering. This has turned into a Second Stage debate rather than a question and answer session on the European Council meeting. 48 European Council 29 June 2011. Meetings: Statements

The Taoiseach: Deputy Boyd Barrett started the arguments about accident and emergency units and special needs assistants when this is about the recent European Council meeting.

An Leas-Cheann Comhairle: Yes, we have a short timeframe. I call on Deputy Pearse Doherty. Will Members make their questions brief because time is limited?

Deputy Pearse Doherty: The Taoiseach claims we must pay our way. Will he acknowledge that today the State will pay out €12 million on unguaranteed and unsecured bonds in Anglo Irish Bank? This is four times the amount needed to halt the cuts in the school transport scheme and would more than cover the deficits in some hospitals in the west. Last week, up to €14 million was paid out in such circumstances while over the next seven months up to €2 billion will be paid out because the Government has not yet moved against these unsecured bonds. There has been a monumental failure on the Government’s part to secure a reduction in the bailout interest rate. In fact, since the Government took office the cost of interest on the European Financial Stabilisation Mechanism, EFSM, portion of the European loan has increased by 1%. On 12 January 2001, the rate stood at 5.425% but by 31 May 2011 it stood at 6.425%. Has this been brought to the attention of our European partners who are profiting to the tune of €10 billion from the 3% surcharge? The Taoiseach claimed the issue of pricing was discussed at the European Council. Was the fact that the interest rate is becoming more unsustainable discussed too?

The Taoiseach: The Minister for Finance is in the courts concerning the unsubordinated bondholders sharing responsibility. He wants to begin discussions with the European Central Bank regarding a large payment due for senior bondholders in Anglo Irish Bank. Formally, he has pointed out the pricing of these loans is too high, which has been generally accepted by the Euro- pean Council. Some assume we are getting money for nothing. Obviously, we have to pay it back, albeit at too high a price. The lending countries have to give their agreement to any reduction in the interest rates payable on these loans. While the majority want a reduction, some do not. All countries recognise that Ireland can be held out as a demonstration of how this facility can actually work to get a country back in charge of its own economic affairs. We have not given up in getting an agreement on an interest rate reduction. It was agreed in principle. All the countries involved accepted that the truth of the scale of what one is dealing with should be known before any further measure could be made. That is why the bank stress tests were important. The point is that all the lending countries have not given their agreement. The condition requested——

Deputy Pearse Doherty: I did not ask a question on this. I asked if the Taoiseach was aware that the interest rate had actually increased.

An Leas-Cheann Comhairle: There will be only one voice, Deputy Pearse Doherty.

The Taoiseach: One condition being mooted is that of a rise in Ireland’s corporate tax rate. That is a move I will never contemplate. We are trying to get the interest rate reduction without affecting our corporate tax rate which I believe is possible.

Deputy Michea´l Martin: I was surprised at the Taoiseach’s touchy response to my simple request to publish the text of the van Rompuy compromise text from the 11 March meeting. Publishing it would allow people make up their minds objectively as to whether the Taoiseach skilfully handled the meeting or bungled it. He has decided not to publish it, however.

49 European Council 29 June 2011. Meetings: Statements

[Deputy Micheál Martin.]

Yesterday, I asked about his recent meeting with the French President, Mr. Sarkozy but, again, I got no reply. Was it a substantive or cursory meeting? Where did it take place and for how long did it last? Was anything specific agreed, other than to keep doing what has been done since March? What did the Taoiseach say to the Council about Mr. Draghi’s appointment as president of the European Central Bank? Did he agree to the Italian and French exchange of membership of the executive committee? Did he disagree with the ECB’s position on bank debt and decision to increase interest rates which will have a devastating impact on many in this country? Why did the Taoiseach agree to the text for the conclusions of the Council meeting which states Ireland’s debts will be sustainable without an interest rate cut, a direct reversal from the position adopted by the previous Government and this Government in March?

Deputy Mick Wallace: The Taoiseach claimed there is no demand for credit from small and medium-sized businesses, a point with which I disagree. Until we have a functioning banking system, it will be difficult to see any form of recovery in the small and medium-sized sector. I am aware of many businesses that have been refused credit. Despite all the State has done for them, the banks are still not open for business. The Government’s idea in respect of a strategic investment bank is extremely good. It would make such a difference if the Government manages to put such a bank into operation. I do not know whether it is going to happen. I would have thought that the institution in question would have been put in place before now. I agree that the changes in respect of PRSI and VAT will provide a major boost to the restaurant and hotel industries. It will definitely stop the haemorrhage of jobs from those industries. However, there is definitely a need for a bank that is open for business because there is a demand for credit.

The Taoiseach: I share Deputy Wallace’s view. Work is under way in the context of introducing a partial loan guarantee scheme that will make it easier for banks to be more flexible in advancing credit to businesses which should be in a position to access such credit under appropriate conditions. As the Deputy is aware, the demand for credit has in many instances been restricted because of the poor condition in which some businesses currently find themselves as a result of their dabbling in the property market or whatever. It is a case, therefore, of returning to a position where credit can be advanced. The decision made in respect of the main banks will ensure that there will be credit available. I am anxious that there be a system whereby we will be provided with regular reports which will demonstrate the new credit being made available to businesses rather than just being supplied with information relating to rolled-over or restructured loans. What we are seeking to do is critical in the context of expanding the indigenous economy and with regard to the creation of job opportunities. I will be obliged to purchase a stopwatch in order that I might account to Deputy Martin for the meetings I have with people and the length of time it takes to conduct them. I assure the Deputy that unlike many members of the Government of which he was part, I contributed to every aspect of the debate that took place at the European Council meeting on Thursday and Friday last. All of the background material relating to decisions is not published prior to such decisions being formalised. The conclusions of Council meetings are published, however, and these are the subject of the debate in which we are currently engaged. Ireland will make its repayments on time. It will be assisted in this regard by the advent of what was agreed in principle, namely, a reduction in the interest rate applied to our borrowings. The precise difficulty in this regard is being worked on. I hope the matter can be brought to a successful conclusion quickly. I am conscious of the fact that an interest rate reduction would be of extra 50 European Council 29 June 2011. Meetings: Statements benefit to us. We are adhering to the conditions — challenging though they are — attached to our deal.

An Leas-Cheann Comhairle: I thank the Taoiseach and I call on the Minister of State at the Department of the Taoiseach, Deputy Creighton, to make a statement in reply.

Deputy Michea´l Martin: I posed three specific questions in respect of the European Central Bank, the text——

An Leas-Cheann Comhairle: The time for questions is exhausted.

Deputy Michea´l Martin: Why did the Taoiseach agree to a text which is weaker than that issued on 11 March?

An Leas-Cheann Comhairle: I have called the Minister of State.

The Taoiseach: These things are not published. I am sure, however, the Deputy has a copy of that to which he is referring in front of him.

Deputy Michea´l Martin: The Taoiseach did not answer my three specific questions on the Euro- pean Central Bank and the conclusions reached at last week’s meeting, which were different from what was agreed on 11 March.

An Leas-Cheann Comhairle: The question and answer session is at an end. I call the Minister of State.

Minister of State at the Department of the Taoiseach (Deputy Lucinda Creighton): Are the full five minutes available to me?

An Leas-Cheann Comhairle: Yes.

Deputy Lucinda Creighton: I wish to close the debate by commenting on external relations issues. The Taoiseach touched upon a number of these issues but I wish to provide a more comprehensive overview. The Taoiseach referred to the Council’s agreement that negotiations on Croatia’s accession to the European Union should be concluded by the end of the month. I am pleased to report that these negotiations are on track and that an accession conference to formally close the final negotiation chapters will take place tomorrow, 30 June. It should then be possible for the accession treaty to be signed before the end of the year. It is likely that accession will be set for 1 July 2013. The Commission will continue to monitor Croatia’s progress up to accession. I take this opportunity to congratulate Croatia, the Presidency and the Commission on the considerable work that has gone into the accession negotiations. Croatia’s success reaffirms the European perspective of the western Balkans in a broader sense. On the European neighbourhood policy, the Council endorsed the new approach to relations with the countries of the EU’s neighbourhood. This new approach offers greater co-operation and economic integration to those countries that are making real progress on reforms. The Council also underlined the importance of the Eastern Partnership summit, which will take place in Warsaw at the end of September. That summit will provide an opportunity to provide strategic direction to the EU’s relationship with its eastern partners during the coming two years. I wish to expand on the Taoiseach’s remarks on the European Council’s discussion of the situation in the southern neighbourhood. In respect of Libya, the Council’s declaration reiterates the EU’s firm support for UN Security Council Resolutions 1970 and 1973. The European Union 51 Priority 29 June 2011. Questions

[Deputy Lucinda Creighton.] is united in its determination to increase the pressure on the Gadaffi regime to allow the beginning of a political transition. The Council also considered the situation in Syria and strongly condemned ongoing violence on the part of the Syrian regime against its own people. It welcomed the adoption of new sanctions and expressed full support for efforts by EU members of the UN Security Council to seek an adequate response by the latter to events in Syria. Ireland succeeded in raising the current unsatisfactory human rights situation in Bahrain at the European Council. I hope this will go some way towards addressing the concerns expressed by Deputy Mac Lochlainn. At the Taoiseach’s prompting, the European Council expressed its concern about the process surrounding the trials and sentencing of opposition members in Bahrain and encouraged Bahrain to ensure full respect for human rights and fundamental freedoms. On the Middle East peace process, EU leaders looked ahead to the issue of a possible UN resolution on Palestinian statehood in the autumn. Broad concern was expressed regarding the potential for this to complicate the efforts to achieve that state as a reality. However, there was also general recognition that the Palestinians have been pushed into contemplating this step by the lack of progress on negotiations and that their strong preference would be to engage in meaningful direct talks with Israel — aimed at establishing the state of Palestine — by agreement on the outstanding issues. The EU and its member states have taken two parallel initiatives to try to support and renew the peace process. High Representative Ashton has called for a political level meeting of the international Quartet and this will take place on 11 July. It is hoped that the Quartet can try to set out the parameters for renewed talks, building on the recent speech of President Obama, to provide clarity and reassurance for the participants about where renewed talks should lead. France has proposed an economic support conference on Palestine — also to be held in July — which would have a strong political element also aimed at preparing the parties for a renewal of talks. The Taoiseach spoke in favour of both these ideas. The European Council also considered the situation in Gaza, in the context of the second flotilla which is now imminent and the continuing captivity of the kidnapped Israeli soldier, Gilad Shalit, whose immediate release was demanded. This European Council was and one at which Ireland played a full, effective and vocal part. We look forward to the next meeting of the European Council, which is due to take place in October.

Sitting suspended at 1.40 p.m. and resumed at 2.30 p.m.

Ceisteanna — Questions (Resumed)

Priority Questions

Milk Quotas 24. Deputy Michael Moynihan asked the Minister for Agriculture; Fisheries and Food the progress made to date in building a coalition with countries such as the Netherlands and Denmark to bring about changes to the milk quota regime prior to 2015. [17802/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): As the Deputy will be aware, I and my officials have been making consistent and ongoing efforts in recent months to secure a soft landing for all member states in the lead-up to milk quota abolition in 2015. These efforts have included close contacts with colleagues from the Netherlands, Denmark and other member states, as well as consultations with the Commission. Possible options include the front-loading of the remaining quota increases, a reduction in the super levy, a further reduction in butterfat correction levels, or a kind of EU flexi-milk arrangement which would 52 Priority 29 June 2011. Questions operate provided EU production overall was within quota. I am aware this is the policy option the Deputy has been pursuing. However, I must emphasise that the Commission has consistently resisted attempts to reconsider this issue, as it has resisted attempts to revisit the outcome of the 2008 health check agreement in an overall sense. It is also the case that only a minority of member states is likely to be adversely affected by the current quota restrictions and, therefore, persuading a qualified majority to agree to an adjustment of the current regime represents a significant challenge. Irish dairy farmers must, therefore, continue to operate on the assumption that no further changes will be made to the milk quota arrangements agreed in the context of the CAP health check. This is extremely important, and I cannot emphasise the point strongly enough. Esti- mated milk deliveries in the 2010-11 milk quota year, which must still be confirmed, show that total butterfat-adjusted deliveries were just 0.43% under quota. Deliveries are also well ahead of quota in the first two months of this year, with the national position at the end of May nearly 5% over quota. I agree with what the Deputy wants to do and we are trying to pursue that option. I have had a lot of informal discussions with my counterparts in different member states, including most recently with officials from Lithuania. I have also raised the issue informally with the Italian ambassador. We will continue to do that, but it is going to be a long process. We all have a responsibility to warn dairy farmers who are pressing ahead and producing milk over quota, on the assumption there will be some kind of political solution to the issue by the end of the year, that they are behaving in a dangerous way and that if they continue to produce over quota, as they are doing currently, we are likely to see a super levy and fines imposed on Ireland next year.

Deputy Michael Moynihan: I thank the Minister for his reply. The statements the Minister has been making with regard to finding a political solution to the issue, particularly with regard to this year and the difficulties dairy farmers are experiencing, are quite correct. We on this side of the House have been making the same point at every opportunity. I have been raising this issue in our various discussions at Question Time and at Private Members’ time because I am quite concerned about a number of people, not just for the milk quota year 2011-12, but right up to the abolition of the quotas, who, because of trends or because of the fair wind blowing, have got themselves into a bind. This has been highlighted again in the Teagasc report. The Minister mentioned the European flexi-milk arrangement, but this is obviously not attainable in this milk quota year.

An Leas-Cheann Comhairle: Has the Deputy got a question?

Deputy Michael Moynihan: Discounting this year, what efforts will we see made in 2012, 2013 and the subsequent years before the abolition of the quota to attain a realistic solution? I understand a new European Presidency will start in January and it may be more favourable to our plight. Is the flexi-milk arrangement attainable?

Deputy Simon Coveney: I appreciate the Deputy’s approach on this. We all have a responsibility to speak to farmers and farming organisations in blunt terms. They are already aware of the reality and know that we are very unlikely to get a political solution to this issue this year. Therefore, farmers need to act accordingly, but many are not doing that. Many of them are just pressing ahead, on the assumption that there will be a resolution or they are trying to factor in the fact that they may have to accept some form of super levy fine, perhaps paying 28 cent per litre. On the basis that they are currently getting 33 cent a litre, they would be making 5 cent per litre by producing above quota. That is a hugely irresponsible choice on the 53 Priority 29 June 2011. Questions

[Deputy Simon Coveney.] part of farmers. They should not take that route, because we cannot guarantee prices of 32 cent or 33 cent per litre into the future. They are playing with fire in this regard, particularly if prices were to change and farmers had made their calculations on the basis of paying a super levy for producing over quota, making the country over quota. I do not want the kind of farmers we need to deliver the output increases we all seek after 2015 to be put out of business because of fines that must be imposed on them in the next few years. That said, we can and will pursue a political solution to this issue. It makes sense politically to look for a solution in the short term that does not involve a vote in Council or does not involve having to return to look for co-decisions. The Dutch, in particular, favour a further reduction in butterfat correction levels because the Commission could implement that without having to seek a vote on it. France and Germany, in particular, are very resistant to providing more flexibility on milk quota between now and 2015 because portions of the farming population in those countries are uncomfortable with the idea of abolition of quotas at all in 2015.

An Leas-Cheann Comhairle: The Minister has gone over time.

Deputy Simon Coveney: We will continue to pursue the issue proactively, as we have been doing over the past couple of months. However, this will take time. It is a marathon rather than a sprint.

Grant Payments 25. Deputy Michael Colreavy asked the Minister for Agriculture; Fisheries and Food if he will reverse the recently announced rowback in agri environmental options scheme Natura payments from an expected €150 to €75 per hectare [17912/11]

Deputy Simon Coveney: I will dispense with my notes on this as I know the issue backwards. The Deputy has asked whether I will reconsider a decision I made previously not to advocate an increase in payments for Natura qualifying land under the agri-environment options scheme, AEOS, from €75 to €150 per hectare. I have had much discussion with farmers and farming organisations on this issue and I understand their issues. When the previous AEOS was put in place, the sum of €75 per hectare was agreed with the European Commission, but a political promise was made that the Government would consider and advocate an increase in that payment from €75 to €150 per hectare. Therefore, there was an expectation among many farmers that would be achieved. Even if I wanted to grant that increase in the morning, I could not do it without approval from the European Commission. The Commission was not forthcoming when we sought the increase up to a number of weeks ago. Therefore, even if I decided politically that we want to prioritise expenditure in this area and to try and increase payments from €75 to €150 for qualifying applicants, which would involve a cost, I would need to go back to the European Commission and get approval to do it, which would take some time. People need to understand there is a process involved in this regard. Some 75% of the funding for the AEO schemes is from the European Union. The reason I wanted to stick with the sum of €75 per hectare, rather than €150, is that I wanted as many farmers as possible to qualify for AEOS 2, which I launched. Therefore, I had to make some choices. This is why I was prioritising the inclusion of the maximum number of farmers possible given the limited budget available to me. I recently met farm organisations and stated I will re-examine this issue in the context of the overall risk expenditure review in my Department. If we decide the best way to obtain value 54 Priority 29 June 2011. Questions for money is to seek from the European Commission an increase from €75 to €150, we will pursue that route. This could only happen in the context of the review.

Deputy Michael Colreavy: I am heartened to hear the Minister will review this matter. The promise of a certain sum of money, to which my question refers, is not the only one farmers were given that was subsequently withdrawn. Many farmers made their financial plans based on the promises made but now find themselves in a very bad place. It was not the hard-working small farmers who caused the economic problems in this country, yet they seem to be punished all the time for it. With regard to the commonage framework plans, there has been a fair amount of destocking of land already. Some might argue destocking contributed to the recent upland fires. Is it possible to consider the possibility of returning stock to the affected lands? There are questions asked over whether the land could be better managed by farmers if the destocking rule were relaxed. Are other payments promised to and expected by farmers to be reduced?

Deputy Simon Coveney: I agree with the Deputy on the stocking rate. Ireland has a problem with understocking in some commonages and mountainous areas. People need to realise that the sensitive biodiversity of the hillsides in question relies on stock keeping certain grasses and plants down by grazing. Understocking is often as dangerous to biodiversity and the protection of the landscape as we know it as overstocking. There is much evidence to suggest we need to increase stocking rates. My Department is pursuing this. In the not-too-distant future, we will see a relaxation of the stocking rates within certain areas. We want to encourage farmers to increase stocking rates to try to support the active farmer concept, and perhaps link this to some payments. The Deputy’s second question may touch upon the Estimates process and the expenditure review. I have tried to be as up-front with farmers as I can be in this regard. My Department is being asked to make significant savings next year and will have to do so. I will be prioritising the limited amount of money we have to spend for key areas, including supporting the strategy in Food Harvest 2020 and supporting farmers so as to keep them on the land in the first place. Many farm families could not stay farming if they did not have a certain amount of subsidy and support. The two key areas, therefore, concern increased productivity and efficiency, as referred to in the Food Harvest 2020 document, and the type of farmer who needs the financial support of the State and European Union. Even in the midst of making significant cutbacks and savings, we will be trying to support as best we can the agribusiness sector and rural communities that rely on farming.

Farm Safety 26. Deputy Catherine Murphy asked the Minister for Agriculture; Fisheries and Food his plans to tackle the high death rate on Irish farms, which hit a 10-year high in 2010; the reason, despite the work of organisations such as Teagasc and the Farm Safety Partnership, the problem has intensified over the past decade; his views on whether legislation is required to bolster the efforts of individual organisations to make farms safer; and if he will make a statement on the matter. [17638/11]

Deputy Simon Coveney: I thank Deputy Murphy for raising this issue. Just a week ago, I spoke at the national farm safety conference held in Roscommon. I prepared for the conference by looking at the tragic statistics that comprise the story of farm safety last year and this year. Last year 26 people died on farms. This year so far, ten people have died. Only 25 have died in the workplace this year. Therefore, approximately 40% of fatalities in the workplace occur 55 Priority 29 June 2011. Questions

[Deputy Simon Coveney.] in the farming sector, which makes up only 6% of the working population. This is a tragedy that must not be allowed to continue. In the fishing sector, five people tragically lost their lives this year. Therefore, of the 25 or 26 people involved in fatal accidents in the workplace this year, 15 were from the farming and fishing sectors, which account for 7.5% of the working population. These are totally unacceptable figures from the perspective of policymakers, who need to make an impact. There is a series of initiatives to address the problem. These focus on the 2006 Farm Safety Code of Practice and the work of the Farm Safety Partnership Advisory Committee, which involves a series of farming organisations, some of which are State bodies and farmer representative bodies and others of which are private bodies. We are supporting these initiatives. The Health and Safety Authority, which has legal responsibility for health and safety in the workplace, is to carry out 3,000 farm inspections this year, which is more than twice the number of inspections last year, to ensure the law is being respected. All this work is irrelevant, however, if we cannot change what is inside the heads of farmers and the views of farming families on farm safety. Farms are not normal workplaces. A farm is a playground, home and workplace and a range of other things. It is a matter of changing the mindset of farmers, in respect of which we all have great responsibility. I will allocate a certain amount of resources to effect this change. This is how we will solve the problem rather than through introducing new legislation. Additional information given on the floor of the House The number of farm fatalities in 2010 was 26, the highest number recorded in any year to date. Tragically, already this year ten more people have died on Irish farms. Two of these have been in the last week, both in County Limerick and both involving farm machinery, one a tractor, the other a quad. The statistics consistently indicate that the highest proportion of farm fatalities involve accidents with tractors and other farm machinery. Just one week ago, I delivered the opening address at the national farm safety conference held in Roscommon. There was a large attendance and there was recognition of the reality that many farm safety tragedies are preventable. There is legislation in place concerning safety in the workplace under the Safety, Health and Welfare at Work Act 2005. This Act places the same onus on farmers as on other self-employed people to provide a safe place and a safe system of work for their employees. The Act also requires farmers to complete a risk assessment and safety statement for their farm. In 2006, the Farm Safety Code of Practice was introduced for farms with three or fewer employees and requires the completion of a risk- assessment document only. The Health and Safety Authority is the national body in Ireland with the responsibility for securing safety and health at work and it intends to carry out 3,000 farm safety inspections in 2011, which is double last year’s number. There have been considerable efforts made by the Farm Safety Partnership Advisory Committee and the partnership member organisations on the farm safety issue with the development of the Farm Safety Action Plan 2009-2012. However, while these efforts in the context of the legislation are a necessary part of the farm safety strategy, ultimately farm safety is about self-regulation and about farmers imposing an attitudinal change on themselves. The strategy for improving farm safety has to be, therefore, fundamentally about changing attitudes through raising awareness. Teagasc has been very active to date in providing farm safety training to farmers nationwide and has also delivered farm safety training to more than 100 agricultural consultants. My Department is very strongly committed to promoting farm safety in tandem with the HSA. 56 Priority 29 June 2011. Questions

Health and safety guidelines are included in all building specifications drawn up by the Depart- ment. Farm safety is included in all REPS training courses. There is a farm safety element in the dairy efficiency programme for the period 2010 to 2012. This is especially relevant because the dairy sector consistently has the highest number of farm fatalities out of all the farming enterprises. Farm safety is also given a prominent place on my Department’s website, which outlines the requirements on farm safety and provides practical advice on safety on farms. My Department is represented on the Farm Safety Partnership Advisory Committee and will continue to support and work with the HSA and the other partners in achieving the goals of the farm safety action plan, to reduce fatalities and accidents on Irish farms.

Deputy Catherine Murphy: I was shocked when I read the report of the Health and Safety Authority. One assumes the risks are greatest in industrial environments or building sites. I was shocked to see the number of deaths on farms and the increase in that number. One of the senior inspectors predicted last week that a file could be sent to the Director of Public Prosecutions after every farm fatality. He also referred to enforcement notices. Does the Minister believe there is under-reporting of accidents on farms? I read somewhere that the number of farmers who speak of near misses with livestock is extraordinarily high. Livestock and machinery pose the greatest risks. Does the Minister believe legislation is required on quads, which are being used increasingly frequently on farms? There appears to be a difficulty in this regard also. I totally agree with the Minister that a change in culture is essential. I live in Leixlip just beside the Intel plant. The lengths to which such a company goes to ensure a culture of safety on-site are extraordinary. We need to change the mindset if we are to address the issue substantially.

Deputy Simon Coveney: I agree with everything the Deputy said with perhaps one exception. I do not believe we need to go down the route of sending files to the DPP. I should have stated at the outset that some people listening to this debate may have lost a brother, a father or a child this year or last year and these are scars that will last a lifetime. We need to be conscious of this when we speak about statistics; it is far too crude a way to speak about people’s lives and the tragic stories of so many of our farming families who have suffered fatalities. This is about trying to force a change in attitude rather than trying to impose legislation on families after something has occurred. However, the Deputy is correct that there is under-reporting of accidents in the fishing and farming communities. We know this and it needs to change. Often, people on farms, whether a 16-year-old driving a tractor pulling 30 tonnes of grain through a field or into a yard or someone feeding a suckler herd with a bull in the field, do not consider themselves to be in a workplace as such. Serious dangers are attached to a farming lifestyle and workplace. We are not making an adequate impression on changing attitudes towards this threat to people’s health and lives. We need to work much harder on this. The tools the Department is using include introducing a farm safety element to REPS training courses and to the dairy efficiency programme, which involves dairy farmers meeting in groups up to 8 times a year. Most fatalities happen in the dairy sector although there are only 17,000 dairy farms out of 130,000 farm families. We need to target this. We should not go down the route of trying to introduce more legislation and blunt enforcement through farm inspections. Although this is necessary, ultimately it will not change an attitude which needs to be changed in the farming and fishing communities.

An Leas-Cheann Comhairle: The time for the question has expired. 57 Priority 29 June 2011. Questions

Deputy Catherine Murphy: May I ask a further supplementary question?

An Leas-Cheann Comhairle: There is only six minutes for each question. I ask for co-operation through shorter questions and answers.

Deputy Simon Coveney: I will try to bear this in mind.

Departmental Schemes 27. Deputy Michael Moynihan asked the Minister for Agriculture; Fisheries and Food if he has considered the impact of the closure of the targeted agricultural modernisation schemes on pig and poultry producers who are under pressure to meet stringent EU animal welfare standards; and if he will make a statement on the matter. [17803/11]

Deputy Simon Coveney: The poultry welfare and sow welfare schemes were suspended for new applications on 8 June 2011 as part of my decision to temporarily close the targeted agricultural modernisation schemes, TAMS, until the position in relation to the availability of funds for next year is clarified. As I indicated at the time, I could not defend a situation in which the Department continued to accept applications under schemes when there was a question over the financing of those grants when they became due for payment. I do not want farmers to put time and money into applications and surveys unless I know I can give them some money. I also announced at that time that applications received prior to the date of suspension of TAMS would be processed and approved up to the level of the current tranches of funding. As the value, in grant terms, of the 35 applications under the poultry welfare scheme and the 22 applications under the sow welfare scheme which were received by my Department up to close of business on 8 June are within the financial ceilings of the current tranches, I am glad to be able to confirm that all eligible applications received up to that date under these schemes will be processed to approval stage.

Deputy Michael Moynihan: I thank the Minister for his reply. The pig and poultry sectors must comply with the looming EU directives and regulations. My information is that applications were made for only €24.7 million of the €90 million envelope available for TAMS. Will the Minister clarify this? Will he ensure the pig and poultry sectors receive priority because of the looming changes in EU legislation and the enforcement coming down the line?

Deputy Simon Coveney: The pig and poultry sectors will be and are being prioritised. Appli- cations opened for pigs and poultry last June, more than a year ago. I suspended applications a week less than a year into the scheme. People had almost a full year to submit their applications. There is an urgency with regard to poultry as by next January the necessary changes need to have been made in poultry units to comply with the new EU legislation on animal husbandry. I do not want to see businesses closing down because of being unable to make the necessary changes to a poultry house or a poultry unit because of not being able to get into TAMS. Under the poultry scheme, payments totalling €11.15 million will be approved shortly and people should make the necessary changes. With regard to the sow welfare scheme, 22 applications have been made to a total value of approximately €2.4 million. The work involved must be completed by the following January which gives a window of an extra 12 months. That is why poultry is of particular concern at present. The Deputy is correct to state the overall original estimate for TAMS, which was to run for the next three years, was approximately €90 million. However, this funding must be accounted 58 Priority 29 June 2011. Questions for by the Department under the expenditure ceilings. Regardless of from where the money comes, I am allowed to spend only a certain amount of money under the expenditure ceilings. This is very restrictive, which is why we must prioritise. TAMS is very good and I want to prioritise it. I aspire to reopening it for applications in the not too distant future.

Animal Welfare 28. Deputy Michael Colreavy asked the Minister for Agriculture; Fisheries and Food the legislation in place to promote, monitor and protect the health and welfare of horses involved in the racing industry here. [17913/11]

Deputy Simon Coveney: My Department’s responsibility, which is set down in legislation, extends to the welfare and protection of farm animals only, that is animals normally bred or kept for the production of food or for use in another farming practice. The relevant legislation in this area is the Protection of Animals Kept for Farming Purposes Act 1984 and the European Communities (Welfare of Farmed Animals) Regulations 2010, SI 311 of 2010. Animals “used in competitions/shows, cultural or sporting events or activities while so being used” are outside the scope of SI 311 of 2010. My Department must act at all times in accordance with legislation. The principal statutes governing cruelty to all animals, including horses, in this country are the Protection of Animals Acts 1911 and 1965. Responsibility for pursuing cases under this legislation rests with An Garda Síochána, which may on receipt of a complaint investigate and bring a prosecution against any person alleged to have committed an offence under these Acts. The Government is mindful of the importance to safeguard animals and their welfare. In this regard the programme for Government 2011 includes a commitment to amend and strengthen animal welfare legislation and a draft animal health and welfare Bill is in the course of preparation. The Bill will consolidate and update existing legislation in the area of animal health and welfare and include non-farmed animals. The Deputy may be aware that I recently announced funding of €10,000 to the Irish Equine Centre for a demographic study to determine the extent of the unwanted horse population in Ireland. The study, being undertaken by the Irish Equine Centre at the request of the Irish Thoroughbred Breeders Association will examine a number of factors including capacity of equine sanctuaries operated by welfare groups, the number of interventions by local authorities and usage of equine abattoirs. This study is timely in that there has been media coverage at home and overseas recently, much of it unsubstantiated, regarding the fate of unwanted horses and this is unhelpful to the image of Ireland as a country that cares for its horse population. The research 3o’clock undertaken will provide guidance for any further policy initiatives and-or legislative measures that may be needed to further advance horse welfare. In addition, my Department provides some €2 million per annum to local authorities in supporting their role in the implementation of the Control of Horses Act.

Deputy Michael Colreavy: I congratulate the Minister on providing a reply without using the words “current legislation on sporting and show horses is woefully inadequate”. Legislation in this area is almost non-existent and owners do not have any means of following up cases of alleged abuse by trainers with whom their horses are stabled. This is a major gap in the legislation.

An Leas-Cheann Comhairle: The Deputy should ask a question. 59 Other 29 June 2011. Questions

Deputy Michael Colreavy: When does the Minister expect the welfare of animals Bill to be introduced? Will it cover show horses, draft horses and racing horses?

Deputy Simon Coveney: I expect animal welfare legislation to be introduced before the end of the year, hopefully in the autumn. The Department is working on the Bill and I intend to have it published by the end of the year, although it will require considerable consultation. I understand it is intended to consolidate all animal welfare legislation in one Act. The Deputy is correct that it is not satisfactory to rely on legislation dating back to 1911. If individuals are concerned that their animals have been mistreated or have witnessed animals belonging to someone else being mistreated in a manner that is not consistent with the law, they should contact the Garda Síochána.

Other Questions

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Common Agricultural Policy 29. Deputy John Browne asked the Minister for Agriculture; Fisheries and Food the progress made to date in relation to reform of the Common Agricultural Policy. [17630/11]

Deputy Simon Coveney: I am pleased to have an opportunity to comment on the state of play regarding the Common Agricultural Policy review. Given the general nature of the question, I could respond for a long time, although the Leas-Cheann Comhairle would not allow me to do so. It is noteworthy that we will know by this evening what is the opening position vis-à-vis the Common Agricultural Policy budget. The Commission will hold what is probably its most important meeting in a long time this evening to decide and confirm the opening statement on the financial perspectives for the European Union. As part of this process, we will find out what proportion of EU funds it is proposed to allocate for the Common Agricultural Policy and in support of food production. The Agriculture Commissioner, Mr. Dacian Ciolos, will make a strong case for maintaining the current budget level following the end of the current CAP process as well as allocating an additional amount of money to take account of the accession of Croatia should it join the European Union in the next two or three years, as is likely. Rather than trying to secure agreement to maintain the agricultural budget as a percentage of the overall budget, the Com- missioner is seeking to have a specific figure maintained. I support his position which is more likely to be achieved. The proposed Common Agricultural Policy for 2013 will be €61.2 billion and we are seeking to have this amount carried over into 2014, 2015 and beyond. In addition, we are seeking further funding to take account of the possibility of new member states acceding to the Euro- pean Union. Croatia, as I noted, is first in line. While we will make a case for increasing the agriculture budget, if the starting position is that €61 billion will be provided for the CAP annually, we will be able to work with such an outcome. This is a positive story which we should welcome if it is achieved. While I am not saying this scenario will be the outcome, it is the result sought by the Commissioner. We will have the relevant information this evening. If this is the starting position, we will try to build on it in the 18 months or thereabouts during which negotiations will take place.

Deputy Michael Moynihan: This evening will be the starting point and we will then deal with the manner in which Common Agricultural Policy funding is distributed to farmers and farm families. Over the years, 20% of farmers have received 80% of the premiums from the Euro- 60 Other 29 June 2011. Questions pean Union. In the long and protracted negotiations over the next 18 months, the Government must ensure it obtains the greatest possible amount of funding to encourage Irish primary producers to continue producing top level product. I ask the Minister to be mindful that individuals, companies and organisations should not receive disproportionate funding while those at farm gate level are not given a fair deal. The possibility of changing the system whereby 20% of farmers receive 80% of funding should be seriously examined.

Deputy Simon Coveney: Six months ago, people inside and outside the House were talking about a reduction in the Common Agricultural Policy budget of between 15% and 30% in actual terms. We are now talking about maintaining the position as is and trying to build on it. We have, therefore, come a long way and this progress should be recognised. We have not yet achieved this outcome and it is possible we will be disappointed by the results of the Com- mission meeting this evening. Let us wait and see what will be the outcome. We have managed to gain some traction around issues such as food security and the need to protect food production and the farming base in the European Union in the years ahead. France and Germany have come on board in this effort. I pay tribute to officials in my Depart- ment who are working every week at European level to get the point across to people who have not shown a significant interest in the food industry and farming that food is a very important industry for the European Union from a food security point of view and must be protected. On the issue the Deputy raised, there will be a long debate on how the overall fund is distributed and redistributed among countries which have done well in the past from the Com- mon Agricultural Policy and countries which have not done so well. There will also be a debate on how Ireland spends the overall national envelope from CAP. I will continue to argue that we should have the flexibility to decide the most appropriate way to spend the funds we receive from the European Union to promote our priorities for farming, which are different from the priorities of many other countries.

Food Safety Standards 30. Deputy Catherine Murphy asked the Minister for Agriculture; Fisheries and Food the damage that was done to the agriculture sector in relation to the E.coli outbreak in Germany; if financial compensation has been applied for to the EU; if so, the amount of same; the reason for same; the lessons if any that can be learned from the way the issue was handled; and if he will make a statement on the matter. [17637/11]

[Deputy Simon Coveney.] targeted to attract unsold product on the market. In addition, an EU-wide co-efficient will apply to reduce the rates of aid payable if the budget is oversubscribed. To date more than 48 tonnes of unsold Irish cucumbers have been destroyed under supervision by the Department in line with the EU scheme. A significant proportion of this produce was destroyed in the immediate aftermath of the E. coli crisis when Irish demand for cucumbers fell significantly. As the scheme remains open until the end of June, a final figure for product withdrawal is not yet available. With the exception of cucumbers, the Irish market has now strengthened to the extent that most of the reduction in demand for salad products is more due to changeable weather than E. coli. Cucumber sales have been slowly recovering but the recovery will take some time.

Deputy Catherine Murphy: There has been a second outbreak, this time involving bean sprouts in France. There has been a blame game. Did the discussion with the Commissioners address the issue of how this was handled? I believe it contributed significantly to identifying something that was not ultimately the culprit. Did they address that issue and did they suggest a way of dealing with this type of situation in the future? If one does not learn from a mistake, one is likely to repeat it. That is the key issue. We will continue to be obliged to draw down funds for these occurrences if we do not learn from that mistake.

Deputy Simon Coveney: The Deputy is correct. The implications for Spain were that tens of thousands of seasonal workers lost their jobs and the industry has been decimated this summer. All that happened on the basis of a false accusation that the source of this problem was cucumbers from Spain. The food safety implications of the crisis were also discussed at yesterday’s meeting of EU Agriculture Ministers in Luxembourg, which I also attended. We heard a further report from Commissioner Dalli that there was a decreasing trend in new infections and that all batches of product from the German farm at the centre of the outbreak had now been traced. The Euro- pean Food Safety Authority, EFSA, together with the French authorities are in the process of investigating the outbreak in France and a special task force has been established. To date, investigations are focusing on seed grown outside the EU and imported during 2010. Com- missioner Dalli emphasised that there was no danger from the consumption of salad vegetables such as cucumbers, lettuce, courgettes and tomatoes. Consumers need to know that. The Commission acknowledged that there were lessons to be drawn from the outbreak in terms of co-ordination and the need for clear communication to the public. As is standard practice, the Commission will engage in a full review of early warning and response procedures over the coming months. It will also consider whether there is a need to strengthen EU hygiene rules on the production of seed for food for human consumption. The Commission also announced that the difficulties for EU exports of fruit and vegetables to Russia had been resolved following detailed discussions with the Russian authorities. A number of countries in the European Union are heavily reliant on the Russian market and its closure was causing huge commercial problems across the EU.

National Apiculture Programme 31. Deputy David Stanton asked the Minister for Agriculture; Fisheries and Food further to Parliamentary Question No. 321 of 21 June 2011 and 514 of 3 May 2011, the contact, if any, he has had in relation to the licensing of a new product to treat varroa destructor; the number of alternative products to control varroa destructor here which are being examined under the National Apiculture Programme; and if he will make a statement on the matter. [17639/11] 62 Other 29 June 2011. Questions

Deputy Simon Coveney: The Deputy has been raising this issue for some time and I hope I can now finally give him an answer that is satisfactory. I will send him a more comprehensive briefing note as well, as I will not have time to provide all the information. Bees play an essential role worldwide by pollinating many of our commercial food crops. They also maintain biodiversity in the wild by pollinating wild plants which then provide shelter and food for a wide range of insects and animals. The honey bee is by far the most important insect pollinator in the world. The varroa mite is the most devastating pest affecting honey bees in Europe. Since its introduction into Ireland in 1998 it has become endemic and is now a major problem for Irish beekeepers. Currently, two products are authorised to control varroa in Irish honeybees. My Department has identified two more products that should be suitable for treating varroa mites in Ireland. One of these is authorised in another EU member state. However, the other, which is considered the most suitable, is expected to be authorised shortly in another member state. If this is achieved it will allow my Department to consider issuing a special import licence permitting usage of that product in this jurisdiction in time for treatment against varroa later this year as recommended. The national apiculture programme on bee pathogen research is being carried out by the University of Limerick in conjunction with Teagasc. This three year research programme, running to August 2013, has a budget of €300,000 and is jointly funded by the Department of Agriculture, Fisheries and Food and the EU. The obstacle to getting the necessary treatment into Ireland is that it takes a long time to get approval within a country for the treatment to deal with this pest. However, there is an arrangement in the EU whereby if a country goes through the necessary processes and gets approval for its use, it can then be transferred to other European countries without having to go through the approval process again. As we are close to securing approval in another member state, the advice I have been given is to allow that process to be completed. When it is, and I understand that will be in the not too distant future, we will apply for a special import licence to import it into Ireland and make it available at the appropriate time of the year, which is the autumn. That is as much detail as I can give at this stage, but I will send a further note to the Deputy.

Deputy David Stanton: I appreciate the Minister’s acknowledgement that it is a very serious problem. Will the Irish Medicines Board be involved in this process? How long will it take to have a special import licence issued if the approval is granted in another member state? Does the Minister agree that it is quite late now given that early August is when this treatment should be administered? Is he satisfied that this new product will be available on time this year or should beekeepers make provision for next year? Does the second product the Minister mentioned contain oxalic acid?

Deputy Simon Coveney: I am not sure about the acid but I will forward all the information I have on the matter to the Deputy. I have asked for extensive information because the Deputy has raised the issue twice and has not received satisfactory answers to date. The special import licence can issue quite quickly once approval is granted in a member state. Obviously, I am anxious for Ireland to get the most effective treatment available globally for this problem. The advice I have received is that the most suitable product is expected to be authorised shortly within another member state. As soon as that happens we will act quickly. I am advised that the Department hopes to get sanction for the product for this year’s season. I accept that we are operating within a tight time constraint but I will try to push the matter within the Department given that the Deputy has been raising it for some time. 63 Other 29 June 2011. Questions

Deputy David Stanton: In the event that the second product mentioned by the Minister is not made available on time, can he give information on the other product he mentioned, as it might contain oxalic acid? I am told oxalic acid is very effective against this destructive mite, which has the potential to devastate hives throughout the country and cause terrible damage. What advice would the Minister give beekeepers who are waiting to import a product that will have an impact?

Deputy Simon Coveney: The two products that are currently authorised for the control of varroa in Ireland are Apiguard and Bayvarol. There are two alternative products which are oxalic acid based. One is Api-Bioxal, which is at its final stages of the authorisation process in Italy and is expected to be authorised shortly. That is the one we think is most suitable for Ireland and which we are anxious to get here as quickly as possible. I was listening to media coverage of the bee industry on RTE Radio One last night. It was mentioned that we spend €9 million each year on imported honey while food producers are willing to buy up all the honey produced in this country. Budding entrepreneurs should know that the honey industry is one to be in. The demand for honey is growing and there is not enough home-grown product.

Milk Quota 32. Deputy Seán Ó Fearghaíl asked the Minister for Agriculture; Fisheries and Food the progress made to date in bringing about an EU wide milk quota system instead of a national quota. [17625/11]

Deputy Simon Coveney: We return to the issue of the EU-wide milk quota system replacing the national quota. I have answered this question, to a certain extent, but I must reinforce the message. We are seeking a resolution that will allow flexibility for countries like Ireland exceeding their milk quota without having to pay superlevies. However, we are a long way from resolving the matter and we are unlikely to get a resolution for this milk quota year. I caution dairy farmers not to press ahead and produce milk above their allocated quota on the assumption that a Minister or politician somewhere will achieve a resolution to this problem by next March. The last thing we want to see are heavy superlevy fines being imposed on dairy farmers who are trying to expand their dairies in preparation for 2015. With other EU countries that have a similar agenda, we will continue to seek a soft landing. Denmark and the Netherlands are obvious examples, both of which had to pay a superlevy fine this year. There are other member states that would like to see expansion of their own dairy industries in advance of 2015 while, at the same time, Europe as a whole would still be under its overall quota. That is something we want to achieve, but we are a long way off it at present. The case for allowing Ireland to produce more milk is strong. It is nonsense that we are not allowed to produce more infant formula for the Chinese market because of dairy quotas that are intended to control the pricing of dairy product in the EU. However, that is what we are working with. There are countries in the EU that are uncomfortable with doing away with quotas at all after 2015, and they are slow to facilitate any flexibility in the existing agreement to allow a soft landing between now and 2015. That is the problem.

33. Deputy David Stanton asked the Minister for Agriculture; Fisheries and Food the amount of milk produced by dairy farmers here each year respectively from 2006; if the amount produced was over or under quota each of these years and the percentage by which it was over or 64 Other 29 June 2011. Questions under; if he will give details of any milk production estimates he has calculated for each year respectively up to 2015; and if he will make a statement on the matter. [17640/11]

Deputy Simon Coveney: This question deals with a similar issue. Deputy Stanton wants detailed figures, which is his style. I should explain that the quota year runs from March to March rather than from January to December. For the quota years 2005-06 to 2009-10, the breakdown of the amount of milk produced by Irish dairy farmers, and the subsequent quota position, was as follows:

Year Available Quota (Litres) Milk Deliveries (Litres) Quota Position

2005/2006 5,236,099,792 5,143,834,570 1.76% under quota 2006/2007 5,237,762,697 5,224,243,392 0.26% under quota 2007/2008 5,238,148,373 5,277,374,249 0.75% over quota 2008/2009 5,342,860,341 5,208,256,682 2.52% under quota 2009/2010 5,396,278,509 4,838,540,355 10.34% under quota

The figure has been increasing steadily but slightly year on year. Part of the health check agreement was that we would be allowed to increase our quota by approximately 1% each year in the build up to 2015, when quotas would be abolished. This was the supposed soft landing for quotas. We were to be allowed a slight increase in quota which would facilitate a reduction in the fiscal value of the quota as we moved towards phasing out quotas entirely. The soft landing is not working for Ireland. The value of quota is still high here, in Denmark and in the Netherlands. In fact, it is higher in Denmark this year than it has ever been. The soft landing might be working for some member states but it is not working for us. That is why questions like this continue to be asked, correctly, by Deputies on both sides of the House who want to make sure I am pushing this issue as hard as I can on behalf of farmers. I can assure Members that I am doing so. Moving to flexibility measures outside the existing health check agreement will be difficult. There will be an opportunity to raise this issue in the autumn. Following the collapse of milk prices in 2009, the EU Commission established a dairy group to look at ways to support prices and prevent a recurrence of the fluctuations we saw in that year. The Commission is now acting on a report produced by that group and will present proposals in the autumn in that regard. However, nothing in those proposals will suit Ireland.

Deputy David Stanton: I thank the Minister for his answer. This is a difficult and complicated subject. The Teagasc campus in Moorepark is holding an open day today on planning for 2015. What can be done to increase milk processing facilities in Ireland? What is the current situation? Are we close to capacity or are there plans to increase processing facilities so that we can cope with the increase in milk production?

Deputy Simon Coveney: That is a very good question. There is no point in producing milk unless it has somewhere to go. The processing sector in Ireland is at full capacity during the high season when cows are out on grass and producing milk at their highest levels. At those times we do not have any excess capacity. The processing sector is looking at investing substantial sums of money in increased processing capacity. Other exciting things are happening that will allow for an increased take of volume of milk. For example, outside Macroom a big plant is being built by Danone to produce infant formula. The Macroom plant currently produces 35,000 tonnes of infant formula, predominantly for 65 Other 29 June 2011. Questions

[Deputy Simon Coveney.] export. Ireland produces 16% of the entire globe’s infant formula consumption. By the end of next year Danone will be able to produce more than 100,000 tonnes of infant formula, which uses considerable milk volume, in Macroom. Things are happening. Given that we have had quota since 1984, the processing sector stagnated in terms of volume output. Processors did not have to invest because they knew there would be no increase in milk volumes for the foreseeable future. There has been no investment in output capacity, in terms of volume, since the mid-1980s. Processors have invested in other areas but not in terms of volume. Processors know they will have to spent tens of millions of euro, if not hundreds of millions, to prepare for 2015.

Deputy David Stanton: What is the current position regarding quota? The previous Minister advised us that we would be 8.67% over quota. What is the current position? Has the Minister figures for April and May of this year?

Deputy Simon Coveney: I do. For the current milk quota year, which is 2011-12, returns to the Department by milk purchasers for the period from 1 April to 31 May indicate that the country is currently an estimated 4.92% over quota, when account is taken of butter fat content and milk deliveries. We are already practically 5% over quota for this year. That is a huge problem. I do not know how to get this message across to farmers. People need to put the reins on producing volume over and above quota levels.

Direct Payment Schemes 34. Deputy Mick Wallace asked the Minister for Agriculture; Fisheries and Food in relation to payments, if he will give a guarantee that all inspections be completed, processed and cleared in order to deliver payments on schedule within the Charter of Rights and that disadvantage area payments will be paid in mid-September and single farm payments advanced on 16 October; in a year of significantly higher costs if he will guarantee that all payments due will be made to farmers by year end; and if he will make a statement on the matter. [17619/11]

Deputy Simon Coveney: The single farm payment forms a significant part of the annual income of the farming community in Ireland. It is clear that the timing of this payment is extremely important to farmers, particularly those farmers with low farm incomes. It is also important in the current difficult financial circumstances where farmers, like other sectors in the economy, are finding it difficult to access credit. The answer to the Deputy’s question is “Yes”. I issued a press release earlier stating we have been successful along with other member states in lobbying the Commission to facilitate the early payment of 50% of the moneys under the single farm scheme on 16 October. Farmers will receive 50% of their payments in mid-October rather than having to wait another few months for reasons the Deputy can outline. There have been many problems with drought in Europe this year and there are specific problems in Ireland relating to credit and cash flow. Ireland along with a number of other countries made the case to the Commission that it should facilitate early payments of the single farm payment this year and we have been successful. Only an hour ago, I issued a press statement to that effect.

Deputy Mick Wallace: I thank the Minister. Are the agri-environmental options scheme, AOS, payments included? Some are still due from last year. Is it true that the EU funds 50% of these payments and the Exchequer must make up the remainder? Farmers are wary because if all the payments are not made this year, there is a fear that the Exchequer may be under

66 Other 29 June 2011. Questions even more pressure next year. If farmers do not get the payments this year, they are worried they may not get them next year.

Deputy Simon Coveney: The single farm payment is in a different category. The money for this does not come under my expenditure ceiling. The scheme is 100% funded by the Union and it is paid every year. Normally we make a case for an early payment of a portion of the money. Sometimes we are successful and other times we are not. We were successful this year in securing early payment of 50% of the money, which is good. Farmers are right to be frustrated that they have not received their AOS payments for the final three months of last year because they should have had them by now. Since taking office, I have worked hard to find out what is the blockage. They are likely to get the outstanding payments from last year at the end of July or the beginning of August. That is not the first time I have said this. I have outlined this to the farming organisations, which are also frustrated about this. We are trying to put in place systems to ensure payments can be made as early as possible. The Deputy is correct that we will be under much more pressure next year in the context of expenditure and, therefore, we are trying to finalise as many payments as possible this year, not only under environmental schemes but also under other grant-aid schemes. For example, if we grant-aid developments on farms under the targeted agricultural modernisation scheme, TAMS, we will seek to get that money spent this year.

Deputy Mick Wallace: Does the Minister agree small farmers are the most reliant on these payments? The State has taken the least care of them over the years. We have been much better at looking after large milk farmers rather than small farmers who are more reliant on these payments.

Deputy Simon Coveney: We need to look after both. The big guy will deliver the targets we are setting for ourselves in providing the volumes of milk we need for infant formula, cheese, yoghurts, liquid milk and other products and that is just in the dairy sector. Small farmers are also important. They are the backbone of rural Ireland and, in many cases, they provide quality beef to factories because they deal with suckler herds. It is my job, therefore, to ensure small farmers can stay in business and large farmers, who have the capacity to expand and deliver growth, are encouraged to do so. It is about trying to do both.

Proposed Legislation 35. Deputy Brian Stanley asked the Minister for Agriculture; Fisheries and Food the recourse open to a horse owner whose animals were alleged to have been severely abused by a trainer with residential stable facilities; the legislation which governs such a series of events; the bodies responsible for monitoring and enforcing the legislation; the provision made for compensation in the event of income loss and proven abuse; his views that policy and legislation in this regard is inadequate; and if he will make a statement on the matter. [17617/11]

Deputy Simon Coveney: This question is similar to Priority Question No. 28, as it deals with the welfare of horses and my Department’s responsibility in this regard. If people have specific complaints and they think their horses or somebody else’s horses have been or are being abused, they should report that to the Garda, which has an obligation to act on the complaint if there is evidence to suggest animal welfare legislation is being breached. We are trying to consolidate legislation in this area and, hopefully, everybody will see this before the end of the year to address problems in this area. We will debate this issue again when the legislation is published and processed by the House.

67 Other 29 June 2011. Questions

[Deputy Simon Coveney.]

It is my intention to introduce comprehensive animal welfare legislation, which will address any ambiguity and lack of understanding that may exist because of the various Bills that are the responsibility of different Departments.

Deputy Michael Colreavy: I am familiar with the details of this case, as is the Department. The previous Minister was also familiar with them. The man affected has described an horrific series of events regarding how his horses were abused in training. It is not good enough to refer people to the Garda in cases such as this.

An Leas-Cheann Comhairle: Will the Deputy please put a question? We are running out of time.

Deputy Michael Colreavy: Will the Minister consider a meeting between his officials and this man as part of the review of the inadequacy of the existing legislation? We would end up with much tighter animal welfare legislation, particularly as it pertains to horses. The officials would see the gaps in the current legislation.

Deputy Simon Coveney: The person to whom we are referring is Mr. William Treacy. He has been in correspondence with my Department for some time, long before I came along. I have spoken to my officials in this regard and they have tried to be as comprehensive as they can in the context of what my Department can do but we are limited under the legislation available to us. My Department does not have legal responsibility for horses in racing stables and if there is a case to be made, it should be made to the Garda. We gave him that advice. Everybody, including Mr. Treacy, will have an opportunity to lobby and to express his or her opinion or concern when the animal welfare Bill is published. I look forward to hearing what he has to say. I am an approachable Minister, as I hope people have experienced, and I am willing to speak to him in the same way as anybody else who feels he or she has a significant contribution to make to the Bill.

Deputy Michael Colreavy: My problem is that because of the inadequacy of the current legislation, Mr. Treacy has no recourse for what happened to his animals. Owners such as him do not have direct sight of their horses and they cannot know whether they are being well trained. There is no monitoring, yet he is legally responsible for the welfare of his horses. Due to the lack of legislation, it is wrong that a person like Mr. Treacy should be left to his own devices and abandoned by the State, in the sense of going to the guards and hoping that everything will be all right.

Deputy Simon Coveney: This is not a case of going to the guards and hoping that everything will be all right. As recently as 27 May, senior officials from my Department met with Mr. Treacy to discuss his case and his concerns. There is no lax attitude towards animal welfare in my Department. Actually, it is full of animal lovers. In case anybody misunderstands the situation, we have tried to help Mr. Treacy, but we are limited under law in what we can do. When we put new legislation in place, we will publish it before it is introduced here and there will be an opportunity for consultation with people who have experience of animal welfare issues, such as Mr. Treacy, and we will try to take on board his concerns. I am not sure that meeting me or anyone else in the Department will progress the issue any further until we have a Bill on the table.

68 Adjournment 29 June 2011. Debate Matters

Fishing Industry Development 36. Deputy Michael Healy-Rae asked the Minister for Agriculture; Fisheries and Food the steps he will take to save the Dingle ice plant in view of the fact that it is a vital part of the infrastructure for the fishing industry in the greater Dingle area. [17602/11]

Deputy Simon Coveney: This issue has been raised by one of my own colleagues for some time. The contract for producing ice for fishermen at the ice plant in Dingle is held by BIM, and it ends at the end of this month. At the moment, there is no clear resolution on who will take over that ice plant to ensure that there is a consistency of supply of ice to the fishing industry. It is ultimately the responsibility of BIM, during the transition, to ensure that fishing interests in the town are safeguarded. We are looking to extend the current contract, whereby BIM would continue to operate the ice plant until we have a satisfactory alternative to take over that ice plant, which will be offered by tender to another operator. I hope that operator will be a consortium of fishing interests in the area to ensure that the ice plant remains intact. BIM has made a strategic decision to get out of ice provision for good reason, namely, its current limitations on staff. This is new to Dingle, but it is not new nationally. BIM has got out of ice production and put in place an alternative structure for providing ice to fishermen in other ports. I hope that we will be able to do the same with the co-operation of fishing interests and stakeholders in the Dingle area. It is in everybody’s interests that there is a consistent supply of ice there.

Deputy Brendan Griffin: I would like to acknowledge the great co-operation I have received from the Minister to date on this issue. The ice plant is a strategically important facility in the town of Dingle. Local councillor, Councillor Seamus Cosaí Fitzgerald has been very active on this issue as well. Can the Minister give a guarantee that the contracts for the two workers in the ice plant, which are due to expire tomorrow, will be extended for the two months required to allow for a smooth transition to an alternative operator of the ice plant?

Deputy Simon Coveney: I am not in a position to give that guarantee at the moment. My Department has applied to the Department of Finance, which is the body that can give sanction to extend a contract like that. My Department cannot do that. We made that application today. BIM requested that our Department do it and our request has gone to the Department of Finance. I am hopeful that we will get a quick response so that we can give BIM the breathing space to make the transition, as I have already outlined.

Written Answers follow Adjournment Debate.

Adjournment Debate Matters 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 Aodhán Ó Ríordáin — the review and funding of the Irish Red Cross; (2) Deputy Noel Grealish — the re-introduction of the sports capital programme grants; (3) Deputy Peter Fitzpatrick — the cost to the taxpayer of emergency environmental works carried out to clean up the toxic residue at illegal fuel laundering plants; (4) Deputy Gerry Adams — the need to appoint an additional level 2 methadone prescribing GP to Drogheda and to resource the appointment of an additional family support worker for the Louth community drug and alcohol team; (5) Deputy James Bannon — the need to provide adequate resources for St. Brigid’s School, Mullingar, County Westmeath; (6) Deputy John O’Mahony — the need

69 Central Bank and Credit Institutions (Resolution) 29 June 2011. (No. 2) Bill 2011: Second Stage (Resumed)

[An Leas-Cheann Comhairle.] to address the time for processing passport applications; (7) Deputy Dominic Hannigan — the need to clarify the position on the GMS contract and the provision of free blood tests for medical card patients and GP visit card holders; (8) Deputy Michael Healy-Rae — the cost of school books; (9) Deputy Marcella Corcoran Kennedy — the need to provide adequate funding for the arts to sustain our existing cultural infrastructure; (10) Deputy Caoimhghín Ó Caoláin — the need to maintain all hospital services at Roscommon and other hospitals; (11) Deputy Joe Costello — the introduction of a financial transactions tax across the European Union and ultimately worldwide; (12) Deputy Noel Harrington — the need to maintain the ambulance provision in west Cork and the services provided at Bantry Hospital; (13) Deputy Robert Dowds — the extension of the catchment area of the drug treatment court programme; (14) Deputy Brendan Smith — the need for the Minister for Health and the HSE to ensure that GP services are restored without delay at the Ballinagh Health Centre, Ballinagh, County Cavan; (15) Deputy Brendan Griffin — the benefits to the health service presented by organisations such as Acquired Brain Injury Ireland and the need to follow this model further. The matters raised by Deputies Marcella Corcoran Kennedy, Aodhán Ó Ríordáin, Noel Harrington and Noel Grealish have been selected for discussion.

Central Bank and Credit Institutions (Resolution) (No. 2) Bill 2011: Second Stage (Resumed)

Question again proposed: “That the Bill be now read a Second Time.” Deputy Sean Fleming: I was speaking here yesterday evening on this Bill, before we went on to Private Members’ business. The Bill is designed to have a legislative system in place to deal with banks in difficulty in any future banking crisis. We hope that we will not have to rely on this legislation, because we have had enough banking crises in the past, but we must pass this Bill because it could be necessary in dealing with some of the existing banks at the moment. Many of the points I made yesterday were in connection with the role of the European Central Bank. I finished up by questioning the continued existence of the Irish Central Bank and the other 26 central banks in the EU. Most banks in those jurisdictions are too big for the local central bank to regulate and oversee. If we have learned anything in the last two years, we now know that this banking problem is a European issue that needs European resolution, and not just piecemeal resolution in each state. It is unusual for someone in here to call for more powers for Europe, but everybody in Ireland lost confidence in the Irish Central Bank, the financial regulatory system and the banking system. Some of that confidence has been restored by the appointment of new people in those key positions, but those people will not always be there, and there is a strategic weakness in terms of the size of the Irish banks relative to the size of the Irish Central Bank. The banking crisis has been examined to the nth degree. We have had several reports, including the Honohan report, the Regling-Watson report and the recent Nyberg report. We have also had a number of stress tests of the assets and liabilities of the various banks. The most recent test was carried out by an American organisation known as BlackRock, which took a very pessimistic view, put perhaps it is right to get to the end of it. This is a heavy duty Bill, and I think there is general fatigue among the public when they hear about bank resolutions, financial crises, Greeks, bailouts, subordinated bonds, unsecured creditors and so on. Be that as it may, we have a responsibility to deal with these issues. In the Irish banking system and the worldwide banking system, there was no liquidity problem until the events of mid-September 2008, when Lehman Brothers collapsed. Access for banks around

70 Central Bank and Credit Institutions (Resolution) 29 June 2011. (No. 2) Bill 2011: Second Stage (Resumed) the world to short-term borrowing became very constrained due to the failure in confidence in the banking system and in the ability of banks to repay. One can speak of a bank being solvent, in the sense that in time when its assets mature it will provide more than enough money to repay those who have lent money to it, while at the same time a bank can be illiquid in the sense that the bank is unable to pay its borrowings immediately and cannot find other lenders who will tide it over. We have a situation where banks can be solvent in the long term but cannot access funds in the immediate or short term to pay their liabilities that are falling due in the short term. That is what we would call illiquid. Putting such a solvent bank, even though it might have a liquidity problem, into bankruptcy is unnecessary and will involve an unnecessary cost on the taxpayer. Emergency measures like that should only be taken as a last resort because if given time, the banks could work their way through the system. There are major costs involved in having a reconstruction system in place. The costs are of two types. The first involve the funds that are required from the taxpayer to fund or eliminate the losses of depositors and creditors while the second, which is far more important for the public, involves the costs that will have been incurred by the taxpayer and which will ensure there are fewer resources as a result of putting the money into an insolvent bank for the economy’s medium and long-term growth potential. The money that goes into a bank is not just the cost of the money but the many purposes that the money could be used for, which is very important. It is, however, necessary to have this new resolution scheme in place. The main reforms, including those in this legislation, will involve the strengthening of regulation, adopting internationally accepted accounting auditing and financial reporting standards and practices and toughening compliance and regulation. One may ask if this could not be done under existing company law. Company law deals with most situations but normally corporate insolvency procedures are inadequate for banks and other financial institutions and we must explain the reasons for that. The time to act to avoid a run on the bank is after a bank has lost market confidence but before it becomes insolvent. That can be a very narrow window. Insolvency practitioners do not take into account public policy objectives, so banking and banks have a major public policy objective in terms of the availability of credit and a payments system in the economy. A normal insolvency-liquidator process would not take that into account and that is why we need extra provisions to deal with a bank that needs reconstruction, as opposed to ordinary companies that do not have a wider impact on the economy. Also when a bank fails it has greater knock-on effects on the economy than a local business that fails. I am pleased that the legislation is beginning to recognise the issue of bank liquidation. For a long time I have opposed the view that a bank is too big to fail. A bank is a business like any other business and the consequences of a bank failing are far more serious, grave and important, but that does not mean that banks are what may be termed “sacred cows” and should not be allowed to fail. The circumstances in which it can happen have to be specific and an absolute last resort from the taxpayers’ point of view but that option must always be there. The resolution regime in terms of liquidation of banks means there must be specific reasons for placing the bank in liquidation and terminating its banking activities. It is also essential that under this legislation it is made very clear that this can only happen if in the opinion of the Central Bank, the winding up of the bank is in the public interest. People who owe money or are owed money by a bank cannot put a bank into liquidation like happens in cases of other normal commercial debts. A bank is different and it can only be put into liquidation with the say of the Central Bank. It is also possible that if credit unions are

71 Central Bank and Credit Institutions (Resolution) 29 June 2011. (No. 2) Bill 2011: Second Stage (Resumed)

[Deputy Sean Fleming.] unstable or, in the opinion of the Central Bank, may be unable to meet their obligations to creditors and have failed to comply with a direction of the Cental Bank, there are then reasons that they should be put into liquidation. It is important that we discuss that issue as we have shied away from doing so on several occasions. In the legislation before us, section 6 refers to the independence of the Governor of the Central Bank. I have a major problem with that. I cannot see how it can work in practice. The Governor of the Central Bank, Professor Patrick Honohan, has said on various occasions when he is Dublin he is Governor of the Central Bank in Dublin but when attends a meeting in Frankfurt he is not the Governor of the Central Bank in Dublin but a member of the board of the European Central Bank. These are two different roles with two different objectives but one cannot divide oneself into two halves. This is a flaw with all the legislation across the EU. l suspect that in years to come we will have legislation across the EU countries, and especially those in the eurozone, for one strengthened Central Bank to deal with these banking issues. We are tinkering at the seams of the problem at the moment. What we have to do is necessary in the short-term crises in which we find ourselves but in the calm light of day, when the banking crisis is behind us — it might be in five or ten years — we will have a stronger central bank at European level to deal with all the banks in Europe. We all know that if the Irish Central Bank wants to close a bank it will have to get permission from the European Central Bank on any major action in which it wishes to engage. By definition that proves that the Irish Central Bank does not have autonomy. Anyone who believes that the Irish Central Bank has autonomy in regard to currency, exchange rates or any major function one would normally associate with a central bank is mistaken because such functions have long been obsolete since we joined the euro. We have not yet managed in our national psyche to accept this reality. It is a nationalistic wish to hold as much authority as we can in these areas but I see the time coming when we will have a strengthened European Central Bank and these decisions would be made on a broader European basis for the good of all our citizens.

Deputy Anthony Lawlor: I very much welcome this Bill. It is part and parcel of an overhaul of the financial system in the country. We are following on from a part of an EU framework, which comprises of three parts, namely, preparatory and preventative, early supervision-intervention and also resolution tools and powers. We are now discussing the resolution tools and powers associated with it. Sadly, this legislation is at least five years too late. If this legislation had been in place in 2005, we would not be in the same financial crisis that we are now. I welcome the legislation as I can see what the Minister is trying to do in parts of it, particularly when the Governor of the Central Bank will be appointing someone who will be suitably qualified to take on the role of manager of a failed financial institution. However, I have some concerns. I compliment the late Deputy Brian Lenihan for his initiative in appointing Professor Honohan as Governor of the Central Bank. It was the first time in more than 60 years that a non-civil servant was appointed as Governor. That must be welcomed as the head of the Civil Service should not necessarily be appointed to the office of Governor of the Central Bank. There are a number of issues that are of concern to me in the legislation. The intervention conditions are very vague. The Minister has indicated that there will be a certain number of amendments but the whole problem with intervention is that the information must flow from the financial institution. We have had problems in the past where that type of information did not flow from the financial institution to the Central Bank. The problem was that banks refused

72 Central Bank and Credit Institutions (Resolution) 29 June 2011. (No. 2) Bill 2011: Second Stage (Resumed) to pass on the information that was crucial for decisions to be made up the lines. When the banks came to the Government in November 2008 they failed to correctly inform it of their overall debts. It was not until two years later that we got some sort of indication of how serious the problem was. The next link in the chain concerns the role of auditors. The auditors failed the Irish financial system and the Irish people. In the past 15 years, auditors have consolidated internationally and that has reflected badly on world economic affairs. There were at least eight auditors 15 years ago but now there are four internationally recognised auditors, with each of them directly or indirectly involved in auditing the four main banks. There were five auditors ten years ago but Arthur Andersen virtually collapsed as a result of the Enron affair, leaving only four globally recognised auditing firms. In the last ten years, there were only two changes in bank auditors in the Irish financial system. Ernst & Young were replaced by Deloitte & Touche in Anglo Irish Bank and KPMG replaced PricewaterhouseCoopers after the Rusnak affair, which cost AIB just €690 million. Auditors had a responsibility to report to the bank and to the Financial Regulator. There were two options if they had done their work properly. The soft option was to inform the credit institution and the audit committee, along with the Financial Regulator, of the serious problems associated with the bank’s balance sheet. If there was no response to that, the auditors could have resigned in the midst of doing an audit, which might have led to serious problems for the bank with a potential run on assets and cash. During the entire period of the financial crisis, however, no bank auditor resigned. The third step up the ladder before the information reaches the Governor of the Central Bank is the regulator. Many celebrity economists would recognise the maxim that regulatory bodies, like those who comprise them, have a marked life cycle: in youth, they are vigorous, aggressive, evangelistic and even intolerant; later they mellow and in old age, after ten or 15 years, they become, with some exceptions, either an arm of the industry they are regulating or senile. That was the problem with the regulators here, they became an arm of the industry or senile. This was written in 1954 about the crash in 1929 and it is as relevant today as it was then. While I welcome the Bill, I am interested in seeing the amendments on intervention. I hope the conditions put down for the Governor of the Central Bank intervening in financial institutions that are experiencing difficulties will be made clear and the reporting of this will give an indication to the Governor of the Central Bank that he can step in as necessary.

Deputy Peter Mathews: I welcome the Central Bank and Credit Institutions (Resolution) (No. 2) Bill 2011. It addresses the vacuum that faced the authorities when the blanket guarantee was introduced on 29 September 2008. Banks are a different type of corporate entity than non- banks and non-credit institutions. When they hit difficulties as a result of insolvency or illiquid- ity, the corrective regime, the rehabilitation regime or the resolution regime is going to be different. This Bill sets out under the relevant Parts the way to approach the situation when a credit institution gets into severe difficulties. The framework for dealing with the situation is spelled out. The important ingredients that must be addressed include clarity in the legality of a resolution regime, the operational trigger points, the legal mandate and the autonomy requirement, where the banking authorities should be endowed with operational autonomy adequate to the legal powers and the human and budgetary resources necessary to effectively perform their functions free from external pressure, and the Bill addresses all of those. The co-ordination aspect that is required is also met by the sections of the Bill.

73 Central Bank and Credit Institutions (Resolution) 29 June 2011. (No. 2) Bill 2011: Second Stage (Resumed)

[Deputy Peter Mathews.]

When we look back over our experience over the period from 2003 to the present, in retro- spect we saw the institutions going out of control. There are principles of banking that were completely abandoned, such as the basic prudential principle of fractional reserving, whereby high street banks reserve a proportion of their deposits before they will lend out the remainder. That was clearly abandoned when we see loan to customer deposit ratios in the banks averaging in the six Irish-owned institutions in excess of 165%; in one instance it stood at 300%. The failure at the time was that while there may have been a degree of supervision, it was very lax and there was no follow through. That was discovered by Patrick Honohan when he was compiling his report and Max Watson and Claus Regling also saw it while drawing up their report. No matter what legislation we put in place, it will be imperative that the follow through on the execution of the requirements of that legislation is conducted properly. In the case even of the very poor supervision in the past, there was no follow-up even to some of the findings that indicated things were amiss. It is important there is complete and effective follow-up to whatever is prescribed in legislation. We need to see the international context. Similar behaviour and a similar lack of effective legislation and supervision occurred elsewhere. That is why the crisis was pan-European and global. It is a pity this legislation, as previous speakers pointed out, is coming after the horse has bolted. It is important, however, to have this legislation in place in case we arrive at a time in future where institutions are in a weak or unviable situation. We must protect the stability of the financial system in the State and also the interests of savers and depositors. The Bill does that. Accordingly, I would recommend it to the House. There are amendments to follow. They will be important because the amendments come after people have read, digested and considered the Bill and when the proofing of the legislation is put in place. A systematic resolution framework is what is required for financial institutions. They are different from other types of business enterprise. The all-important safety of depositors and savers is paramount. Even in the past three years where there have been failures, not alone in this country but abroad, there were huge shortcomings in the resolution frameworks in other jurisdictions. Our legislators have put together a commendable initial framework for dealing with the situations. The particular sections that deal with the elements of the framework are clear. The trigger points for assessment for when intervention is needed and action must follow are also fair and clear. Previous speakers on the opposite side have mentioned that there could be an element of tension between our own Central Bank, which will be the overarching authority for this resolution regime, the European level and the European Central Bank. The forthcoming amendments will address that type of situation. Overall, I join my colleagues, Deputy Lawlor, the preceding speaker and the Minister in recommending the Bill to the House.

Deputy Joe Higgins: My first problem with the Bill — I have many — is the Title. The use of the word “Resolution” in this sense is gobbledygook. Why do we not call it “The Bill to Provide for the Bailout of the Private Banking Sector when it gets into Trouble, Potentially at the Taxpayers Expense”? Section 4, at paragraph (f), is much clearer on the purpose of the Bill. It states:

[T]o provide a mechanism to prevent the financial instability, or threat to the financial stability, of an authorised credit institution [May I say “bank” for simplicity] contributing to financial instability of any other...[bank], the financial system or the economy, and to avoid creating a risk of such financial instability.

74 Central Bank and Credit Institutions (Resolution) 29 June 2011. (No. 2) Bill 2011: Second Stage (Resumed)

That is my first major problem as we are suffering the current economic catastrophe because banks have wrecked the economy, created massive financial instability and then economic instability. The question is not asked at all in the legislation why that happened, how it happened and why it was allowed to happen. The first issue that should underlie any legislation in response to the present catastrophe is why private institutions, major banks, hedge funds, major insurance companies and assorted other speculative agencies are afforded such power as to be in a position to wreak havoc on an economy as a result of their activities, which means wreak havoc on society, on the liveli- hoods and lives of tens and hundreds of millions of people. Why should financial institutions such as banks be given such power that their actions can therefore result not just in national crisis but worldwide systemic crisis affecting the lives of countless millions? What are banks? What are the credit institutions? They are institutions run by unelected, self-perpetuating cliques, thoroughly undemocratic in how they operate. They are unaccount- able to the people whose lives they wreck, the vast majority of people in society. They are faceless and unelected in any democratic sense of the term. Their primary function is to make massive profits for their private, corporate owners. All one has to do is look at the major international banks that were up to their necks in speculation on the sub-prime mortgage situation in the United States, which laid the basis on the toxic debt that it built up, the bundling of that toxic debt and its sale all over the world for the massive economic crisis of 2008. Let us take one such bank that was intimately involved in the sub-prime mortgage crisis, Goldman Sachs. In the Rolling Stone magazine in 2010, Matt Taibbi, summed up brilliantly the role of Goldman Sachs, a major international bank, in the woes that have been created for working people throughout the world including in this country. He wrote:

The first thing you need to know about Goldman Sachs is that it’s everywhere. The world’s most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money. In fact, the history of the recent financial crisis, which doubles as a history of the rapid decline and fall of the suddenly swindled dry American empire, reads like a Who’s Who of Goldman Sachs graduates.

The Bill has nothing to say on the ethical question of why such institutions should continue to be afforded such power over the lives of hundreds of millions of people in the world. In fact, it accepts that private corporate ownership and the massive power that the institutions are afforded in society and then proceeds to legislate weakly and feebly on the situation. Mr Peter Sutherland is the chairman of Goldman Sachs International and by coincidence is a Fine Gael grandee as well. Last year Mr. Sutherland rather sternly warned the working people in this country that the cuts that were to be imposed in the following budget of December 2010 were not enough. He said the cuts should be far greater and he argued against a slower rate of budget cuts, saying:

This simply will not fly as an option. Any weakness in one budget will be punished by the market in a manner which we will be unable to take.

People such as Mr. Sutherland have some audacity in lecturing us, in view of the role of the institution of which he is a key linchpin in the crisis we face at present. He declares that any weakness will be punished by the market and never asks the question, as most of our media never ask, of who or what is the market. The market is spoken of as if it were a divine power, raised over society, whose every edict must be obeyed and in front of whom ordinary people

75 Central Bank and Credit Institutions (Resolution) 29 June 2011. (No. 2) Bill 2011: Second Stage (Resumed)

[Deputy Joe Higgins.] have to be sacrificed. Martyn Turner’s cartoon in last Friday’s The Irish Times brilliantly encompasses this idea. There is a high priest of the troika — ECB, EU and IMF — sacrificing the Greek people on an altar while declaring “O gods of the markets, banking & business behold our sacrifice....”. Ominously, the next unfortunate in the line, trussed up to be put on the fire, is Ireland, followed by Portugal. That sums up, in a simple cartoon, the truth about which the establishment in this country, from RTE right across the media, has not been prepared to be truthful. Who or what are these markets that Mr. Sutherland, the chairman of Goldman Sachs, warns us not to upset? Lo and behold, Mr. Sutherland is talking about himself, as a corporate entity. Some time ago, when the paramilitary campaigns were going on in Northern Ireland — they were reactionary, disgusting campaigns, but we cannot get into that now — there was a joke among the establishment media. When the leadership of Sinn Féin said seriously and with great deliberation that they would talk to the IRA, the response was that they would just have to go into a room and talk to themselves. We have had no such exposure of the reality with regard to the markets. These grandees, whether they are Fine Gael members or establishment figures from all over the world, whose words warn us that we must accept cuts in public expenditure, through privatisation and so on because otherwise the markets will create havoc in Spain, are talking about institutions in which they themselves are intimately involved. We have had a cover-up of that reality and this Bill simply carries on that cover-up. Goldman Sachs, again, made a fortune on the sub-prime market when it was on the up and then, with consummate cynicism, seeing that it was going to collapse, bet on its collapse and made a fortune when it was on the way down. These are the institutions in front of which a supposedly sovereign Irish Government, the Greek Government, and an EU whose leadership used to lecture me weekly, when I was in the European Parliament, on what a great democratic institution it was, fall on their faces. They demand that European workers accept these massive cuts to jobs, living standards and public services to satisfy the markets. It is incredible. We see the chaos that the market system is causing our fellow citizens in Greece at present. Happily, the Greek working class is fighting this vicious attack on them with a magnificent 48- hour strike. The media, of course, will home in on the few fellows with black masks who are burning things, most of whom are agents provocateurs from the police trying to discredit the movement, but not dwell on the millions of workers who are taking strike action and using their power in a very disciplined fashion. Our interest lies with them. Will this Bill solve or provide a basis for a solution to the disasters caused by private corporate ownership of the financial system — in other words, the markets? No. It is a recipe for more bailouts into the future. This system is subject to crisis after crisis as a result of how it is set up and as a result of the private ownership of these massive financial institutions and their lust for profit. Sections 9, 10 and 11 of the Bill deal with financial input into a fund to guard against losses in the future. It states, rather vaguely, that it should grow over time to try to meet contingencies that would arise. Does anybody think that, for example, such a fund in Anglo Irish Bank would rise to anything like the €30 billion or €35 billion that Irish sovereign Governments are forcing the taxpayer to put in to salvage the wreckage it created? Section 11 states that the Minister may contribute to the fund — with taxpayers’ money, of course — and that he or she “is entitled to be reimbursed from the Fund for all contributions”. The wording is not “shall be reimbursed” but “is entitled to be reimbursed”. This is simply a recipe for putting more taxpayers’ money in to bail out private institutions, which will find other subterfuges for sucking money out of ordinary people, as they have done on the subprime

76 Central Bank and Credit Institutions (Resolution) 29 June 2011. (No. 2) Bill 2011: Second Stage (Resumed) market and in other areas. The Nyberg report is very clear in this regard; I am surprised Deputy Mathews did not refer to it. Incidentally, when writing about the dictatorship of the markets, Nyberg states that in 2008, when it was thought that problems were coming down the line, one reason resolution legislation could not be considered was that if the news had got out that it was being drafted it could have had a serious destabilising effect on the markets. It is quite incredible. Nyberg also states: “However, the existence of a resolution regime in itself would not necessarily have been a panacea to avoid high fiscal costs to the State in the absence of burden sharing with creditors.” In other words, it would not have made a blind bit of difference in reality. I have no confidence whatsoever in the powers given to the Central Bank. The Central Bank and its leadership played a baleful role in the Irish banking crisis. It did not attempt to restrain the profiteering and racketeering that was going on and the outrageous exploitation of young working people when the prices of homes were being doubled, trebled and quadrupled and bankers and developers were raking it in in the most obscene fashion. It was then central to bouncing the Fianna Fáil-Green Party Government into bringing in the troika. It was obviously a tottering, rotten Government that had no moral authority whatsoever. Why did the Governor of the Central Bank facilitate those coming in to carry out the agenda of the ECB and the EU — that is, to save the massive German, British, French and other financial institutions on the backs of the Irish working class? We are now expected to have confidence in this institution to play a central role in resolving any further or future banking crisis. No way. The alternative is to get rid of this diseased system in which faceless and unelected corporations and individuals have so much power over society. It is time for democratic control and public ownership of the financial system so that its activities are geared towards the well-being and development of society and its people, as well as the creation of employment. This must be extended across Europe. If the Irish people were to adopt such a demand, millions of Europeans from Greece, Portugal and Spain would join them because they are also suffering from this diseased system and the parasites who run it. Níl an Bille seo, ar a ngairtear Acht do dhéanamh socrú maidir le córas réitigh éifeachtach dlúsúil d’fhorais creidmheasa áirithe ar an gcostas is lú don Stát, sásúil ar chor ar bith, mar nach dtéann sé go croí lár na faidhbe atá againn i láthair na huaire nó go croí láranfháth go bhfuil an fhadhb úafásach ins an gcóras airgeadais, agus dá bhrí sin ins an gcóras eacnamaí- ochta, i láthair na huaire. Bunús na faidhbe náúinéireacht príobháideach ar chorporáidí móra, ar institiúidí airgeadais, ar bainc agus a leithéid agus úsáid na hinstitiúidíúd mar thobair do bhrabús thar fóir dóibh féinig. Dá bhrí sin, tá an cumhacht ollmhór eacnamaíochta á ligint leis na hinstitiúidí seo agus ciallaíonn sé sin go n-éireoidh na fadhbanna ceanann céanna arís agus arís eile. Ní théann an Bille i ndeighleáil leis an bhfadhb úd. Dá bhrí sin, úinéireacht poiblí faoi stiúriú daonlathach atá ag teastáil maidir leis na hinstiti- úidí airgeadais agus leis an gcóras airgeadais. Go dtí go mbeidh córas den tsaghas sin againn beidh an saghas géarchéim atá againn i láthair na huaire arís agus arís eile go mbeidh na milliún de lucht oibre na tíre seo agus na hEorpa thíos leis sin. Dá bhrí sin, caithfimid gluas a chur leis an díospóireacht maidir le malairt ar an gcóras airgeadais, ó thaobh an tsochaí agus ó thaobh thromlach na ndaoine. I mo thuairim is í an mhalairt shóisialach ar cheart dúinn a chur chun cinn.

Deputy Joe O’Reilly: I wish to share time with Deputy Terence Flanagan.

An Ceann Comhairle: Is that agreed? Agreed.

77 Central Bank and Credit Institutions (Resolution) 29 June 2011. (No. 2) Bill 2011: Second Stage (Resumed)

Deputy Joe O’Reilly: Of the three major banking reports, the Honohan and Nyberg reports stated if a resolution mechanism had been in place at the time of the initial banking crisis, public losses would have been considerably reduced. Therein lies the rationale behind this overdue legislation. The Central Bank and Credit Institutions (Resolution) (No. 2) Bill 2011 will create a permanent and special resolution regime, involving a resolution fund managed by the Central Bank. Up to 40 banks and building societies, along with 400 credit unions, will pay into this fund. This welcome and meritorious development will, in contemporary jargon, constitute a form of burden sharing, albeit a tentative one. It will also have a regulatory effect in itself in that the banks will be contributing to the outcome of their own possible future mis- demeanours. The legislation also provides for a transfer order to move deposits from one institution to another, for special management orders to put in place special managers, for bridge-banking and a modified liquidation process. It covers the entire eventuality around the collapse of one or several banking institutions. In June 2008, there had been discussions on these types of proposals but at the time it was decided not to go ahead with them for a combination of reasons. In hindsight, this was a regrettable and regressive decision. This legislation does not preclude the need for a proper regulatory process in our banks. While considerable progress has been made in this area, vigilance needs to be maintained. Neither does the legislation preclude the need for the rationalisation of the banks. I welcome the Minister for Finance, Deputy Michael Noonan’s, initiatives in this area with the designation of the two pillar banks. All these exercises and measures, however, are needed to create a normal banking environment. The Honohan, Regling and Watson and Nyberg reports established several phenom- ena in the Irish banking sector including bad governance, poor management, overdependency on single assets, namely property, and insufficient regulation. While the banks’ management structures stand condemned, the then Government, as the custodian of the people’s interests, must do so also. It failed both to set the agenda and keep a watching brief. The banking system has still not returned to normal, in that there is insufficient credit available to small businesses. Credit availability is the great need in our economy to kick-start its recovery. Allied Irish Banks and Bank of Ireland are committed to lending €12 billion between 2010 and 2012. This injection of new credit into small businesses needs to be monitored on a monthly basis, a commitment made in the programme for Government. Will the Minister for Finance confirm this arrangement will be put in place? We need small businesses to thrive again and employment to be created. While today, at least we had the launch of the national internship scheme, we need small businesses to create the single job here and there which, in turn, will generate the economic recovery of our small towns and communities. In 2007, some 90% of small and medium-sized enterprise loan applications were granted. In 2010, this figure dropped to 50%. This, along with the overall drop in the number of loan applications, tells how incomplete the banking system has become and how limited credit availability has become for our small and medium-sized enterprise sector. These are not good developments and they illustrate the fact that we have moved from one extreme to another. In addition to dealing with the structural issues involved, the regulatory process, the dooms- day scenario the legislation is designed to tackle, the matter of lending, we must also consider the broader picture. The Minister, Deputy Michael Noonan, is to be congratulated on the statement he made in Washington to the effect that we will ask unsecured senior bondholders in Anglo Irish Bank to share losses. That is both a progressive and necessary step. It is correct that the Minister should go through the process with the ECB because a solution must be found. The position with regard to Greece underlines that fact. There is a risk of contagion

78 Central Bank and Credit Institutions (Resolution) 29 June 2011. (No. 2) Bill 2011: Second Stage (Resumed) and Spain, Portugal, Italy and Ireland are in a perilous position. The position of Greece is even more perilous. As a result, there will be a need for a pan-European or at least a broad-based European solution to this problem. Europe will be obliged to return to the drawing board. It is unreasonable that taxpayers in this country and those in other member states should be obliged to accept all of the losses involved. Those who hold bonds — senior unsecured bondholders and others — invest with a view to making a profit. When the wind is at their back, these people accept profit. When it blows against them, they should be asked to accept their losses. The losses must not be transferred on to taxpayers. If the situation regarding Greece brings anything into focus it is the fact that the EU, the ECB and the IMF — the so-called troika — must come together in order to resolve this issue. I am of the view that a pan-European solution will be required. In the context of interest rates, the terms of our loans will have to be changed and the length of time applying to repayments will have to be extended. In addition, bondholders are going to be obliged to accept significant losses. The same type of prudential financial management that has been imposed on countries such as Ireland should also be imposed on a broader European basis. The Minister, Deputy Noonan, both in terms of his stewardship of the domestic economy and in the context of the initiatives he has taken at international level, has moved us a fair distance into our journey. However, he must be joined by his partners in Europe. I commend the legislation, which is an important step in the process of rectifying what was a horrendous wrong, to the House. We can only learn from the terrible situation into which we have been placed in the context of building a better future for coming generations.

Deputy Terence Flanagan: Like most Members, I welcome the Bill. It will ensure speedy solutions in the context of the winding down of Irish banks and other credit institutions encoun- tering serious financial difficulties. As previous speakers indicated, it is under the terms of the EU-IMF deal that the special resolution regime is being introduced. I am delighted that the Minister has decided to introduce such a regime immediately. The current financial crisis has highlighted the shortcomings of both the current system and those of the previous Government, which continued to bail out reckless institutions, thereby bringing the country to the brink. As a result of the unique status of banks, particularly in the context of their taking deposits and lending and the fact that they are systemically important, it is essential that the special resolution regime be implemented as soon as possible. Certain countries such as Japan, America and Canada have had resolution regimes in place for many years. The Minister for Finance, Deputy Noonan, stated that the Bill represents an important step in ensuring that the Central Bank will have the necessary powers to promptly and effectively resolve distressed institutions when they pose a risk to the financial stability of the State. What we require are speedy resolutions which can be done at the lowest possible cost to the State. Billions of euro have been poured into the banks to date and this is turning out to be one of the most expensive resolution regimes ever. If the legislation before the House had been introduced previously, Ireland would be in a much better position. The purpose of the Bill is to manage the winding up of insolvent institutions and to reorganise institutions which are in difficulty. The Bill will apply to authorised credit institutions such as every bank that is licensed, every building society that is incorporated and every credit union that is registered in the State. Unlike the Credit Institutions Stabilisation Act 2010, the provisions of the Bill will apply to banks regardless of whether they have received financial support from the State. The latter Credit Institutions Stabilisation Act is due to expire on 31 December 2012 and, therefore, the Bill before the House will come into effect from 1 January 2013.

79 Central Bank and Credit Institutions (Resolution) 29 June 2011. (No. 2) Bill 2011: Second Stage (Resumed)

[Deputy Terence Flanagan.]

In the past the relevant authorities have been forced to deal with troubled banks through regular corporate insolvency procedures. It is not correct that ordinary banks are obliged to go down the same road as companies which are in examinership or administration and that the same rule of law applies to both. Normal insolvency procedures are inappropriate because they can only be implemented when an institution is already insolvent and when depositors have long since departed. At that point, it is already too late. At present, all the Minister can do is either apply traditional corporate bankruptcy laws or inject public money into the banks, thereby nationalising them. We have all witnessed the devastating effects to which the latter method can give rise. The previous Government took us down the wrong road in that regard. The Bill provides an alternative method for dealing with credit institutions in difficulty. Its provisions are detailed, lengthy and complex. Under those provisions, the credit institutions resolution fund is to be established. That is a welcome development because from now on the banking industry will be responsible for looking after its own affairs and dealing with its own mistakes. As a result, taxpayers will not be obliged to bear the burden. All authorised banks, financial institutions and credit unions will be obliged to contribute to the resolution fund. The Minister will also make a contribution to it. It is important that the resolution fund should not be used to recapitalise failing institutions but rather to ensure that there will be sufficient resources available to deal with the various resolution costs relating to the winding down of an institution. Under the Bill, the Central Bank will be in a position to establish a bridge bank. Such a bank will, on a temporary basis, hold the assets and liabilities of an institution that is in trouble. The benefit of a bridge bank is that it will allow a failed institution to continue to operate until a buyer can be found. This will allow for a swift and orderly resolution of such an institution while transfer negotiations take place. The powers of the Central Banks will be beefed up to a considerable degree under section 8 of the Bill. The power to order the transfer of specified assets and-or liabilities of an authorised credit institution to a bridge bank is contained in the Bill. Provision is also made for special management orders. Under these, the Central Bank will be in a position to appoint a special manager to an authorised credit institution that is in difficulty for a fixed period. The decisions made by a special manager will obviously supersede those taken by the members of the relevant institution. He or she will, therefore, have a great deal of power at his or her disposal. He or she will also have the power to make decisions regarding the remuneration of the directors and officers of the institution. That is an extremely important development, particularly in light of recent reports in the press. The Bill will empower the Central Bank to present a petition to the High Court for the winding up of a credit institution on specified grounds, for example, where the bank is of the opinion that this is in the public interest. Only the Central Bank will have the power to appoint a liquidator and it will be obliged to ensure that all of the depositors in an institutions will be repaid their moneys up to the required amount of €100,000. This money can be transferred into another authorised credit institution and held there on behalf of depositors while the first institution is being wound down. Under the provisions of the Bill, the Central Bank may direct an authorised credit institution to prepare and implement a recovery plan in order to try to turn business around and, if possible, haul the relevant bank back from the brink. The Central Bank itself may prepare a resolution plan and this plan will set out the bank’s preparations on a contingency basis for the exercise of its functions under the Bill with regard to a credit institution.

80 Central Bank and Credit Institutions (Resolution) 29 June 2011. (No. 2) Bill 2011: Second Stage (Resumed)

The Bill also introduces various miscellaneous provisions, one of which relates to the confidentiality of a proposed order that is to be made. It shall be an offence to publish information relating to the making of the proposed order and there must be adherence to confidentiality. This important power provided in the Bill is crucial to ensuring the confidence of depositors is maintained at all times. There will already be enough uncertainty and lack of confidence in the institution if it is about to fail and the resolution process to be adopted by the Central Bank must not add to that. The Bill also restricts rights of judicial review in respect of decisions made under the Bill. It is vital the right decisions are made and limitations on rights of appeal to the Supreme Court are justified. It is in the public interest that the Central Bank will take decisive action to prevent a run on deposits of any failing credit institution. Nobody wants to see that happen in the future. If this Bill had been enacted in the past, it would have saved the taxpayer billions of euro. If it had been enacted prior to 2008, the situation that occurred with Anglo Irish Bank would have been dealt with more efficiently and in a less costly manner and taxpayers would not face the bill they must now pay. It is crucial we plan now to ensure that the situation which happened with Anglo Irish Bank and our other banks does not happen again and that we provide confidence for any new bank and all deposit takers and lenders that privately owned banks of systemic importance will have an effective resolution process available. I support the Minister and this Bill. It is in the interest of taxpayers that the least amount is paid out in the future if we have another failed bank.

Deputy Timmy Dooley: I wish to share my time with Deputy Dara Calleary.

An Ceann Comhairle: Is that agreed? Agreed.

Deputy Timmy Dooley: I welcome the opportunity to contribute on this Bill. It is well known that this Bill was initiated in the Seanad by the previous Minister for Finance, the late Brian Lenihan. Therefore, it is effectively the same Fianna Fáil Bill and is almost word for word what was set out then. While I do not want to make a political issue of it, I welcome the fact that the Government continues to deal with the crisis in a similar manner, particularly with regard to the enactment of legislation along the lines set out by the previous Minister and Government. I welcome that the Bill is being put forward now to ensure the situation can be resolved in the event of a similar crisis occurring such as that which occurred in 2008. Prior to the election, the approach suggested by some was that it would be possible to force burden sharing on various bondholders. That has not been possible.

Deputy Peter Mathews: It has not been possible yet.

Deputy Timmy Dooley: Not yet. I wish the Government side well in that regard. Like all Members, I would like to see a situation develop where the exposure to the taxpayer is limited to the greatest extent possible. I know people on all sides of the House, and the previous Government, approached this crisis from the viewpoint of bringing about burden sharing, but that was not possible because of the way in which the ECB, in particular, sought to prevent a situation where senior bondholders would be required to share the burden at that time.

Deputy Peter Mathews: The losses were not known.

Deputy Timmy Dooley: I accept that. If the Deputy works with me I will try to tease out the issue for him. The ECB set its face against that, which was regrettable. I welcome the continued efforts by the current Government and the Minister for Finance to try to ensure that on the broader level, in terms of the resolution of the financial crisis, pressure will be brought to bear

81 Central Bank and Credit Institutions (Resolution) 29 June 2011. (No. 2) Bill 2011: Second Stage (Resumed)

[Deputy Timmy Dooley.] on the ECB to ensure burden sharing ultimately becomes a reality. However, it cannot be done in isolation. I do not want to harp back to the election debate, but some of the then Opposition Members, who are now in Government, sought to create the impression that it was only a matter of senior members of the Government taking themselves to Europe and facing down those who set their faces against burden sharing. The suggestion was that if the proper negotiators were in place, the issue could be resolved. They are now learning the lesson that it is not quite as easy as that. It is interesting that the Minister for Finance, recognising some of the commitments of his backbenchers and his banking expert, Deputy Mathews, and that he had not been able to achieve success in that regard, took himself to New York recently.

Deputy Terence Flanagan: It is early days yet.

Deputy Timmy Dooley: On the 99th day in Government he set about keeping the ball in the air by suggesting that burden sharing would be sought by the Government and it would take a strong and proactive approach in Europe. At the same time, he did not face the issue with those who most objected to it, namely, the ECB. It is interesting that although making that suggestion, unsecured and unguaranteed bondholders are still being paid off — even this week. Our spokesperson, Deputy Michael McGrath, already alluded to that in his contribution. The Minister continues to pay off unsecured and unguaranteed bondholders and still has not addressed the issue.

Deputy Peter Mathews: Some €8 billion was paid off before the former Minister——

An Ceann Comhairle: Allow the Deputy to continue.

Deputy Timmy Dooley: As Deputy Mathews knows, the ECB is still set against it. While the millions are relatively small in comparison with the requirement in November to settle €1 billion, I wish the Government well in its efforts. Hopefully it can find a resolution to the matter. To remind Deputy Mathews, the Minister, Deputy Leo Varadkar, indicated in the course of the election campaign that not another cent would be provided to the main banks here until such time as senior bondholders took a share of the burden associated with the debt. Sadly, the Government has had to continue to deal in the same way as we did with the issue, because of the situation with the ECB. The point I am trying to make is that while this legislation is helpful and important and while it continues with the train of legislation we started, of itself it does not set a new direction because we still have the difficulty in terms of the ECB’s position with regard to allowing the failure of a bank and, in particular, the sharing of the burden by senior bondholders.

Deputy Peter Mathews: I am taking the same direction.

An Ceann Comhairle: Deputy Mathews has had his say.

Deputy Timmy Dooley: I am happy to allow Deputy Mathews make his point.

An Ceann Comhairle: Is the Deputy giving way?

Deputy Timmy Dooley: Yes, I will hear his point.

82 Central Bank and Credit Institutions (Resolution) 29 June 2011. (No. 2) Bill 2011: Second Stage (Resumed)

Deputy Peter Mathews: I and others have consistently aimed in the same direction, with further energy and force developing as we speak, with a view to showing that the losses in our banking system need to be shared by those who financed them indirectly, including the ECB.

Deputy Timmy Dooley: Thank you. I have always recognised the Deputy’s consistency on this matter. The only question I raise in my contribution is that while the Deputy set out a clear pattern in advance of the election as to how this might be resolved, his party leadership and the Minister for Finance have not necessarily followed the path set out prior to the election.

Deputy Peter Mathews: It was mentioned——

Deputy Timmy Dooley: I have taken the Deputy’s point once and will try to answer it. It has been recognised that the problem is not as easy to solve as was first believed.

Deputy Peter Mathews: We are trying to unlock——

Deputy Timmy Dooley: The legislation clearly provides a permanent regime for credit institutions and banks that get into trouble. It is a technical but clearly vital framework to deal with future problems. While it places on a permanent footing a systematic approach to dealing with previously covered troubled financial institutions, it still leaves outstanding the issue of trying to achieve a much broader approach across Europe to the institutions. In this context, it is worth recognising the relative advances that have been made in Greece today. At least its Parliament has faced up to the crisis it faces and which we all face collectively. It is welcome that Greece has taken what we might consider the first step by passing the motion to ensure the commencement of privatisation and the very serious curtailment required. There are a number of other steps to be taken. Member states across the Union have indicated willingness to consider a further bailout, which I understand will be necessary in August. Not- withstanding that, there is a very serious crisis that has the capacity to overshadow the particularly good work that has been done on a cross-party basis, bearing in mind the process my party started. It must be recognised that there are further steps to be taken. It was interesting to note that President Sarkozy talked in recent days about French banks considering the roll-over of certain bonds, albeit voluntarily. This is interesting because it is the first step——

Deputy Peter Mathews: It is cynical.

Deputy Timmy Dooley: ——towards the concept of burden-sharing. Some might argue this would once have constituted default. The voluntary nature of the exercise may allow the language to change slightly so we do not enter the default process which is considered to be very negative from the market’s perspective. Over time, euphemisms will be found for “default” and “burden-sharing” that will become more palatable.

Deputy Peter Mathews: “Bankrupt”.

Deputy Timmy Dooley: I doubt the word “bankruptcy” will be the euphemism to deal with it. I am sure that, over time, there will be an accommodation. We discussed on a number of occasions the surmounting of the crisis created by the way in which the Taoiseach entered his first meeting with President Sarkozy as part of his first foray as Taoiseach. There was an interesting teˆte-à-teˆte that resulted in the stand-off over the interest rate. As soon as we can have clarity on this, the better. I would be very concerned if we rejected the notion of an increase to the corporate tax rate yet were somehow prepared to give way on

83 Central Bank and Credit Institutions (Resolution) 29 June 2011. (No. 2) Bill 2011: Second Stage (Resumed)

[Deputy Timmy Dooley.] the CCCTB issue, or allowed some linguistic accommodation that gave both sides to believe they had won. Most Members on this side of the House believe there can be no accommodation on this issue. We must be very clear that CCCTB is tax harmonisation by the back door and we must set our face totally against it.

Deputy Dara Calleary: This is the first occasion on which I have been in the Chamber in the presence of Deputy Ring in his capacity as Minister of State at the Department of Transport, Tourism and Sport. While I have congratulated him outside the Chamber, I want to do so on the record. In his first 120 days in office, Irish sportspeople have won medals at the 2011 European Amateur Boxing Championships and at the Special Olympics World Games and I am sure the all-Ireland is only a few months ahead of us.

Deputy Michael Ring: Very shortly.

Deputy Dara Calleary: I genuinely wish the Minister of State well. The Ceann Comhairle was one of the his predecessors in his Department. On a sad note, this is the first occasion on which I have been in the Chamber discussing economics since the death of our colleague and my good friend, Brian Lenihan. His fingerprints and design are all over this Bill. This is an appropriate occasion in which to remember him as a fantastic parliamentarian and as a man who did his best, in incredibly difficult circumstances, to address the issues this Bill deals with. There is no doubt that the Bill vastly improves the country’s ability to respond to crises that may erupt. While we say that in the full knowledge that the horse has bolted and the stable door is well and truly broken, we must ensure there is never a return to the banking and fiscal practices that led us to where we are today. We must ensure there are immediate-response mechanisms to deal with incidents such as those that have led us to where we are. As sure as night follows day, in 20 or 25 years, at which time all of us will probably be gone from this Chamber, with any luck, banking systems will revert to the practices that led us to where we are. The devastation caused across the world, including in Ireland, will be forgotten about and profit and the euro will again become the Mecca that guides the banking industry. I will not say we are showing humility at present but contend that any changes made now must be made to prevent this and to ensure there are sufficient protections in place for banking customers and countries. Deputies Dooley and Mathews implied this Bill forms part of the European Commission’s response. The Commission calls it a framework for crisis management. Now in 2011, three years since the beginning of the crisis, the Commission has finally decided to produce a framework for crisis management. The difficulty, as touched upon in the previous contribution, is that while the Commission produces a framework document and engages in its usual practice of consulting all around it, the ECB will in the meantime probably ride roughshod over what the Com- mission, which represents the elected people of Europe, proposes. The ECB will undoubtedly ride roughshod over what is proposed at the European Council and what is discussed in cham- bers such as this cross Europe. I am not as happy as my colleague Deputy Dooley about what is happening in Greece based on the images of what is happening there this afternoon. I refer to the protests, rioting and injury being caused by austerity programmes and debates that are happening on the back of similar proposals around the world. This is happening because an institution is blind to people. It is perfectly in tune and in sync with figures——

Deputy Peter Mathews: Not even those.

84 Central Bank and Credit Institutions (Resolution) 29 June 2011. (No. 2) Bill 2011: Second Stage (Resumed)

Deputy Dara Calleary: ——and economic models but consideration of the impact on the lives of people seems to be beyond it. It seems to be oblivious to this. Based on the fact that from next September or October there will be new management in the ECB, I can only hope that its having a president from a country that is economically weaker than that of the current president will bring a different perspective to bear on matters. An opportunity was lost to the Government regarding the overall debate on our interest rate and fiscal package in that it did not flex any muscles in the selection of the new president in the pursuit of a lower interest rate or better deal. Given that President Sarkozy attempted last Thursday night to block the appointment so there would not be a replacement Italian on the executive board, an opportunity might have been missed. There was a wide-open goal in terms of the need to have unanimity in the appointment of a new president of the ECB. If we are serious about flexing our muscles and getting the interest rate deal sorted once and for all, we must wonder whether we missed an opportunity. If we are serious about the reform of the ECB — many countries throughout the eurozone, not just those subject to ECB programmes, have views on this — we must conclude an opportunity was lost in this regard also. If the Commission is to produce a framework, it should work hand in glove, in a good way, with the ECB. There has been considerable disagreement between the Commission and the ECB in their approach to bondholders and subordinated debt. I cede to Deputy Mathews’ knowledge on this issue. There has been huge divergence between the Commission and the ECB on fiscal and monetary policy. There is no sense in producing a crisis response framework when these two institutions are pulling in different directions; it would be like sending out members of a tug-of-war team to pull against each other. Unfortunately, the rope they are pulling is made up of our people, the people of Europe and those affected by the various rescue plans. I am also concerned about the Government’s response to the situation in Greece. The first of the votes was passed this afternoon with further votes to follow. Last weekend, the Minister, Deputy Noonan, was quite blasé on RTE Radio One about the Greek programme. He stated it would be passed but he expressed the view of many that the actual implementation of what is being voted on in Athens today is quite a different matter, and that the relationship between Greek taxation policy and its implementation is not the same as it is here. Many commentators, approximately 99% of them at this stage, suggest the plan will not work and that we will be back to the drawing board in Greece. The default issue is a very live conversation. Other Ministers were also slightly blasé about this and its impact on Ireland. I accept that we are not Greece and if the Minister, Deputy Noonan, had supplied the t-shirts he promised we would all be wearing them today. However, we share a common currency zone with Greece and if there are issues with the payment of Greek loans or debts, it will impact on Ireland whether we like it or not. This is the world in which we live. The contention of the Minister at the weekend that the Greek crisis is a matter for the big economies and will not impact on Ireland is simply wrong. I hope he stated it merely to calm the troops and to keep everybody assured but I got the impression no plan is in place in the event of a Greek bad debt situation happening this week or in the coming months. On Sunday evening, I challenged the Minister, Deputy Varadkar, on this and he was relatively blasé about it, although given his history in speaking about Europe I would not blame him for being relatively shy. The Government needs to have a plan in place in the event of a Greek default because it will impact on us no matter how much work is done by the House or the Government or what burden the people of the country take. This needs to be considered in the context of the Bill.

85 Central Bank and Credit Institutions (Resolution) 29 June 2011. (No. 2) Bill 2011: Second Stage (Resumed)

[Deputy Dara Calleary.]

We cannot have debate about banking or banking resolutions without referring to banks lending to SMEs. I know the Minister of State, Deputy Perry, is doing much work on this issue. Every Deputy in the House knows about this. We can have all the credit review reports and banking reports in the world but I am sure all Deputies in the House have had a good business person with a solid idea speaking to them who has either had an overdraft pulled overnight, been forced to move that overdraft into a very overpriced loan or been refused good facilities. As we move towards an ECB meeting next Thursday, when interest rates will increase, I appeal to the Government to act urgently on the mortgage issue. Enough solid ideas are floating around from every side of the House and beyond to present a resolution mechanism. We cannot speak about credit institution resolution unless we deal with these two elephants in the room.

Deputy Joe Costello: I wish to share time with Deputies Martin Heydon and John Paul Phelan.

An Ceann Comhairle: Is that agreed? Agreed.

Deputy Joe Costello: I am delighted to have an opportunity to speak on the Central Bank and Credit Institutions (Resolution) (No. 2) Bill 2011. It is very important legislation. Listening to the previous Fianna Fáil speakers, one would imagine they are taking responsibility for the conception and delivery of the Bill and we are merely introducing it after they have done all the work. Our spokesperson on finance in the previous Dáil, Deputy Joan Burton, had sought the Bill for two years and it did not appear. Likewise, it is not true to say the European Commission did not produce a framework document for crisis management in the financial sector. In fact, the Bill is based on such a document which was produced approximately 18 months ago. The previous Government could have produced this long ago and it could have passed prior to the election. One must recognise that many mistakes were made and that the purpose of the Bill is to look to the future and ensure these mistakes are not made again. This has nothing to do with the ECB good, bad or indifferent. If each nation puts in place a regulatory reform system regarding how the banking sector will operate and if proposals are made for mechanisms that govern a resolution regime in a proper fashion, whether it involves an ailing bank, a failed bank or a bank that can be resuscitated, this issue will be able to be dealt with in the future. If a resolution fund is put in place, as is proposed in the Bill, the matter will be dealt with in advance. In this respect, it prepares for the rainy day. It is better not to introduce irrelevancies that have nothing to do with the legislation in itself. The Bill is particularly important because of what happened in the past. It is important to ensure the Irish financial institutions which almost ruined the country — and we are not out of the woods by any means — cannot do so again. The mantra was that every bank seemed to be a systemic bank and there was a perception that they could not be allowed to fail. This is what brought us to the present situation. The previous Government handled the economic crisis with this view and in this respect the Irish taxpayer was hung out to dry. We must remember that banks are like any other private business; they can fail and they must be allowed to do so rather than being propped up if they are not able to survive. When they do fail, they must be properly interred so they cannot spread contagion. The Central Bank and Credit Institutions (Resolution) (No. 2) Bill 2011 provides the statutory mechanism for an effective screening and a decent burial for those failed banks. Where the condition is one of

86 Central Bank and Credit Institutions (Resolution) 29 June 2011. (No. 2) Bill 2011: Second Stage (Resumed) an ailing bank which is not terminal, the Bill also provides for structures and mechanisms for its resuscitating and rehabilitation. Section 4 clearly states the purpose of the Bill is “(a) To provide an effective and efficient resolution regime for authorised credit institutions” and “(b) To provide for a resolution regime for such credit institutions that is effective in protecting the Exchequer, the stability of the financial system and the economy”. It is difficult to look back nearly three years to a time when the given wisdom was that the failure of a major bank like Anglo Irish Bank could not be contemplated even though it was rotten to the core with debt. The previous Government bought a pig in a poke with regard to the bank guarantee scheme and convinced the other political parties, with the exception of the Labour Party, to follow suit. It is difficult to look back and envisage an entire private banking system being given a State guarantee of protection by the taxpayer to the tune of €500 billion. If the Sinn Féin Members in particular, whom we hear loudest in the Chamber, knew then what they know now — or if they had thought about it properly — they would scarcely have voted for the taxpayer to bail out the private banks to the scale of €500 billion. That was the time to burn the bondholders and protect the taxpayers. Rather than doing so, Sinn Féin voted for a bailout by the citizens for a private banking system. The programme for Government makes it quite clear that the old ways are over forever. It states, “We will introduce a comprehensive special resolution regime for dealing with bank insolvencies”. Furthermore, the programme for Government makes it clear that the burden of dealing with impaired or failed banks will not be shouldered by the taxpayer. Rather the banking sector, which caused its own failure in the past, should in future contribute to a resolution regime in the coming years.

Thus the Government “accepts that enabling provisions in legislation may be necessary to extend the scope of bank liability restructuring to include unsecured, unguaranteed senior bonds”.

The full rigours of the marketplace must apply to the banking sector and private debt must never again be allowed to become sovereign debt. The first steps have been taken. The Credit Institutions (Stabilisation) Act 2010 provides for the reorganisation and restructuring of the domestic banking system in line with the recommendations of the EU-IMF programme of support for Ireland. Recapitalisation, restructuring and reorganising of assets and liabilities of the credit institutions are being implemented. Anglo Irish Bank and Irish Nationwide Building Society are being wound up or wound down, which ever the case may be. Five credit institutions are now State owned and two pillar banks are in the process of being built up to trade profit- ably. Most of the impaired loan portfolios have been purchased from the banks by the National Asset Management Agency at a significant haircut of 58%, although this reduction is probably on the generous side compared to the real value of the loans in question. Only €3 billion worth of loans remain to be reviewed and transferred to NAMA. It is expected that the restructuring will be largely completed by 2012, at which point the Credit Institutions (Stabilisation) Act will lapse and the legislation before us will be activated.

The purpose of the Bill is to take over once the banking system is stabilised and to provide a permanent resolution framework for the future should the evil day ever loom again. It is crucial that the events of 28 September 2008 are never repeated. There must not be another late night mugging of a Government and the taxpayer by those in the banking world who

87 Central Bank and Credit Institutions (Resolution) 29 June 2011. (No. 2) Bill 2011: Second Stage (Resumed) put private greed and self-preservation before the interests of their country or the welfare of citizens.

Under the provisions of the Bill, the Central Bank will be substantially in charge of the entire operation. It will, in the first instance, make the decision to intervene in the operation of a particular credit institution. It will have a toolkit for repairing an ailing institution or for transferring the assets of a failing or failed bank to a sustainable bank and closing down the failed institution. A credit institutions resolution fund will be built up by the banking sector for the eventuality of a rainy day in the life of a credit institution. A bridge bank may be established and capitalised from the resolution fund. The assets and liabilities of the impaired credit institution may be transferred to the fund with a view to continuing to transact business pending the ultimate transfer of its assets and liabilities to a sustainable bank or formulation of recovery or resolution plans. Special managers, special management orders and other resolution tools contained in the Bill will facilitate the management of the impaired institution to recovery or winding down the institution with a view to liquidation.

What is critical about the legislation is the acceptance that ailing financial institutions of any type or size and, crucially, systemically important institutions can be allowed to fail without risk to financial stability while avoiding costs to the taxpayer. This must be the nub of the solution. The European Commission document, An EU Framework for Crisis Management in the Financial Sector, produced in 2010 forms the backdrop to the legislation. The framework makes the following interesting and important assertion: “Banks must be allowed to fail, like any other business.” This is the key aspect of the solution and the purpose of the legislation is to establish rules, regulations, supports and mechanisms to ensure such failures can proceed in an orderly fashion, rather than having the burden transferred to taxpayers.

I do not have time to discuss in detail the good work being done by the European Com- mission on the issue of bank resolution. This work forms the background to the legislation and I expect each of the 27 member states to produce similar legislation. The Commission is also working on a final solution, if one likes, whereby a single EU fund would be established to support resolutions for banks which find themselves in difficult circumstances. I commend the Bill to the House.

Deputy Martin Heydon: In debating this important Bill on Second Stage I will concentrate on the credit union movement. It should be remembered that this legislation applies to authorised credit institutions, which include banks, building societies and credit unions registered under the Credit Union Act 1997. In discussing the wide range of powers being granted to the Central Bank under the Bill and the establishment of the resolution fund we should reflect on the impact these powers may have on local credit unions. We should also ask whether our national credit unions require the same regulatory regime as the large national banks, many of which are in State ownership. Credit unions are the life blood of communities in many of the local areas where they operate. Members of the public who may never enter a large banking institution can have all their financial requirements met by local credit unions. Services provided include savings plans, insurance services and loans for up to five years duration. The credit union movement was established in the 1950s in Dublin in response to the effects of high unemployment at the time. According to the movement’s promotional information, its founders “recognised the root of the problem as lying in the scarce availability and poor management of money and resolved to identify a system that would allow people to gain more control over their finances”. Sixty years later, we are in a similar position, one in which the credit union movement could play a signifi-

88 Central Bank and Credit Institutions (Resolution) 29 June 2011. (No. 2) Bill 2011: Second Stage (Resumed) cant part in the recovery of the country and return to financial independence for many individuals. While the credit union movement has not been unaffected by the financial difficulties of recent years, it is impossible to justify treating each small community-based credit union in exactly the same manner as a bank which brought the burden of billions of euro of debt on the country. My main concern is that we are moving from a position in which the Minister for Finance enjoys significant control to one in which the overwhelming control is handed over to the Central Bank and Financial Regulator. The lack of political oversight into this process is not a healthy change for the credit union movement. Section 8 deals with intervention conditions, an area in which we need to ensure some control or oversight is retained. For example, section 8 provides that the intervention conditions are fulfilled in relation to an authorised credit institution if either condition A or condition B is fulfilled and defines condition A as follows:

(2) Condition A is that the Bank has serious concerns relating to the financial stability of the authorised credit institution concerned

and—

(a) has directed that credit institution to take particular action to address the Bank’s concerns, and the Bank is satisfied that—

(i) the credit institution has failed to comply fully with the direction, or

(ii) the credit institution is incapable of taking the necessary action to so comply within the period specified by the Bank in the direction,

(b) is satisfied that, having regard to the urgency of the situation or for any other reason, its serious concerns cannot be adequately addressed by such a direction.

The words “for any other reason” leave the options to the absolute discretion of the Central Bank. What constitutes serious concerns for the Central Bank? If an institution such as a small credit union is unhappy with a decision of the regulator, what options are open to it to challenge the Central Bank’s view of an issue of serious concern? Its only recourse would be to challenge a decision through the courts. However, if a small credit union were to mount such a challenge, its members would likely lose confidence and withdraw their savings. Already, the Registrar of Credit Unions has gained substantial powers over all small credit unions to the extent that he can chose board members, block or cancel annual general meetings, set the size and scope of a credit union and set dividends and rebates. The rules being used to deal with credit unions are the same as those being used to deal with large banks which handle billions of euro. It is important to note that in 2010 only a small percentage of more than 400 credit unions applied for assistance in the form of loans. Credit unions are not the same as banks and should not be treated as such. With the inevitable consolidation in our financial institutions arising from mergers and other transactions, a growing need is emerging for a trusted community-based organisation which retains the confidence of many of its customers and can regenerate confidence in the economy. We should remember the central reason for founding credit unions, namely, that it is an organisation of people, for people which exists only to serve its members rather than to profit from their needs. In the 1950s, the founders of the credit union movement recognised the

89 Central Bank and Credit Institutions (Resolution) 29 June 2011. (No. 2) Bill 2011: Second Stage (Resumed)

[Deputy Martin Heydon.] serious difficulties and lack of confidence caused by mismanagement and a lack of money and resolved to establish a system that would allow people to gain more control over their finances. Credit unions have a promising future. We need to ensure the legislation and regulatory framework that is created to secure their viability is specifically suited to them and allows them to continue to function as was intended. If we do this, credit unions will be able to continue to grow and flourish and become one of the building blocks for economic recovery from a local level upwards.

Deputy John Paul Phelan: I concur with many of the sentiments expressed by Deputy Hey- don on the important role of credit unions. They have a role to play in economic recovery and the provision of small loans to individuals. It is important that whatever legislation is introduced would not have an adverse effect on the important role credit unions have played and can play in our economy in the future. I am glad to have the opportunity to speak in support of this Bill and to correct some of the points placed on the record by Members of the Opposition, who have left the Chamber, regarding the handling by the previous Government of our economic difficulties in the past few years, particularly the difficulties with the banks. Deputy Costello spoke correctly about the perception that existed that banks could not be allowed to fail. As a result of the decisions of the previous Government the taxpayer was exposed to huge losses. I commend the Minister, Deputy Noonan, on his first 100 days or so in office. He has done much more in that brief period to provide some certainty about the direction our financial institutions will take in the future than the previous Minister and previous Government managed to do in four or five years of trying to do the same. There has been a clear pronouncement from the Minister for Finance and the Government outlining the structure of the two pillar banks, a structure which has been widely accepted across Europe and elsewhere. We have seen the first attempts at burden sharing with subordinated debt holders and an indication from the Minister that he is prepared to take the fight, for want of a better term, to our colleagues in Europe to seek that the burden sharing regime might be extended to the holders of other Irish bank debt. He has done more in that regard than the previous Government. It is clear to the general public that the previous Government made no effort to take that battle to our colleagues in Europe and I commend the Minister on his recent actions and comments in that regard. Banks must be allowed to fail like other businesses. However, there are specific circumstances that relate to financial institutions so this legislation provides for the orderly winding down of such institutions. Previous speakers have said it is a case of closing the stable door after the horse has bolted, but we do not know if all the horses have yet bolted. Some have and some are still in the stable. This legislation provides a clear mechanism for how financial institutions in Ireland might be wound up in the future if difficulty arises. As has been mentioned, there is similar legislation in the US, Canada, Japan and other countries for the orderly winding down of financial institutions. I wish to mention a couple of items in the last minute available to me. The transfer orders allow for the transfer to another institution of some or all of the relevant institution’s assets and liabilities. That is carried on from the Credit Institutions (Stabilisation) Act, as are the special management orders. The bridge bank will allow the holding, on a temporary basis, of some or all assets of the financial institution in question. This legislation provides for the establishment of a resolution fund to minimise the exposure of taxpayers in the future. That is the single main reason I personally support this legislation. I commend it and the efforts of the Minister, Deputy Noonan, to the House.

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Deputy Finian McGrath: I am grateful for the opportunity to speak on this important legislation. I welcome the debate because this Bill goes to the heart of the economic crisis and deals with its causes. I strongly believe it will force Members of the Oireachtas to wake up and deal with the issue of banking and financial institutions and how they were run in the past. Let there be no mistake — these fat cats screwed the country, let the people down and should now pay the consequences. Blaming and penalising the sick, the disabled, the low paid and the unemployed should not be part of any strategy. Sadly, however, that is happening as I speak. Cuts to the number of special needs assistants, SNAs, for children with a mild learning disability are taking place while this Government and others look the other way. These cuts are happening on the Government’s watch and that reality should be highlighted as it is linked to the debate on this legislation. To say otherwise is misleading and dishonest. The purpose of the Bill is to make provision for an effective and expeditious resolution regime for certain credit institutions at the least cost to the State, to amend certain enactments and to provide for related matters. When the Irish financial crisis started in 2008 there was no suitable mechanism for dealing with distressed credit institutions or for winding up insolvent banks. When faced with an insolvent bank, options were limited to orchestrated market based solutions, examinership, bailout or nationalisation. However, to secure financial stability, minimise contagion and ensure the continuity of essential banking functions, an orderly winding down through the use of resolution tools would have been preferable. It is argued by many that had a resolution regime been in place when the crisis struck, most of the costs of the banking crisis that are now being borne by taxpayers could have been avoided. This is at the heart of the legislation before us today. Before I outline my ideas about this Bill, it is important to look closely at those who were responsible for the crisis and the wealthy people in this country who gained during the Celtic tiger economy years. The Minister should consider introducing a Robin Hood type of tax which would take money from the wealthy and look after the poor. Many legislators throughout the European Union are on that wavelength and are forming policies on a Robin Hood type of tax. It was people who caused this crisis. Legislation is about responding to the crisis. The big issue for me is that people such as regulators, people in the banking system, speculators, developers and bondholders caused the crisis. It is important that we identify them and deal with them. This reminds me of the recent debate on nursing homes. Where something goes badly wrong in a nursing home, the Health Information and Quality Authority, HIQA, moves in and closes down the nursing home instead of looking at other options such as getting rid of the people who are causing the problem in the first instance. That is preferable to laying off other staff and workers. We appear to have gone in the other direction when dealing with crises that emerge in our society, and this is another instance of it. Last year, the German Chancellor, Angela Merkel, proclaimed that the current financial crisis represented a beneficial crisis or a golden opportunity to move forward with the establishment of an effective EU government to complement monetary union. The EU Council of Ministers agreed in March 2011 to adopt a comprehensive package of measures to respond to the crisis and to preserve financial stability in the European Union. Following the Council meeting, the President of the Commission, Jose Manuel Barroso, boasted to an RTE news programme about how far the EU had travelled. He said, “We have reinforced our monetary union with an economic union. .... The economic and monetary union will finally walk on its two legs...”. The centrepieces of the March package are the Euro Plus Pact and the amendment to the European Union treaties to establish a permanent European stability mechanism. The Euro

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[Deputy Finian McGrath.] Plus Pact will subject the 17 countries of the eurozone, particularly smaller ones such as Ireland, to a regime of detailed intrusive surveillance of budgets, tax policy, wages policy, pensions policy and economic policy, to be enforced by fines and sanctions. It represents a drastic reduction in a state’s national democracy and independence. This is something to which we must face up in the current economic climate. The country was bailed out by the European Union and the ECB through the European Financial Stability Fund and the European Financial Stability Mechanism, by the IMF through its extensive funds facility and by Britain, Sweden and Denmark through bilateral loans. The dogs in the street now know the bailout was a stitch up. It was a forced loan that has turned the State into a vast debt servicing machine. Thousands and millions of euro in loans were provided on foot of the bailout to prevent insolvent Irish banks from going bust and thereby defaulting on their debts to the German, French, British and other banks, which were incurred during the property fuelled borrowing binge between 2002 and 2007. These are essential points that should be considered by everyone interested in this debate. These debts were shifted to the Irish State, and its citizens have been turned into 21st century financial serfs, bound to service a bankocracy every bit as grasping and oppressive as the aristocracy of feu- dal times. From June 2013, a European stability mechanism, ESM, will take over from the European Financial Stability Facility and the European Financial Stabilisation Mechanism in the provision of loans to eurozone members in difficulties, strictly conditional on the implementation of a range of adjusted measures. Described by the German Chancellor, Angela Merkel, as a solidarity measure, the ESM will not have retrospective effect and will not be of any benefit to this country in its present situation. To add insult to injury, the Tánaiste admitted, in response to a question in the Dáil on 30 April 2011, that Ireland will be required to pay approximately €9.87 billion towards the fund. The European Union authorities are anxious to avoid a referendum in any European state on the establishment of the ESM, even though it would entail an amendment to the European treaties. It is proposed to push this amendment using the self amending provision of the Lisbon Treaty, Article 48. The line from the Government and major Opposition parties, along with the usual supporting chorus in media, business and trade union circles, is that the changes do not increase the powers of the European Union. This is something I would like to highlight and bring to the attention of the Dáil. This line is based on the opinion of the previous Attorney General, Paul Gallagher. It was the same Mr. Gallagher who advised the previous Government, in September 2008, that a blanket State guarantee of all the debts of Ireland’s private banks was legal and that Irish law required that the creditors and bondholders of the Irish banks should not be touched, in view of such a guarantee. This opinion fitted neatly with the insistence of the European Central Bank on a guarantee that no Irish bank could be allowed to fail in case the German and French banks, from which the Irish banks had borrowed, would not be paid back. The refusal to hold a referendum clearly breaches the Supreme Court judgment in the Crotty case of 1987, simply so that the German and French Governments and Brussels will not be inconvenienced. This is a travesty of democracy. By denying the people a say on this fundamental matter, the Government and the major Opposition parties will be engaging in yet another stitch-up to add to the bank guarantee and last November’s bailout. It is one stitch-up too many. I ask people to consider this in the broader debate today. Let us look also at the reality for more than 455,000 people who are unemployed. This is not taken very seriously. While I welcome aspects of the jobs initiative, we should examine it

92 Central Bank and Credit Institutions (Resolution) 29 June 2011. (No. 2) Bill 2011: Second Stage (Resumed) in more detail and take a more radical approach to it. We could talk all day about the huge greed and mistakes of the banking industry, but we must first deal with the results of the banks’ actions. Since the summer, the number out of work has soared to more than 455,000, the highest live register figure since it began in 1967. At the same time, we are taking €3.6 billion out of the economy, which will lead to further job losses. I accept that we must deal with the banking crisis but part of the solution must be a jobs and growth plan to get out of the current crisis. I agree with the Minister for Finance’s call for consumer spending. His comments were dismissed in some circles, but I strongly disagree with those people. People who have a few extra euro must go out and spend an extra €10 or €20 to develop their local economy. It is not correct to say people do not have the money to spend. I am talking about targeting the people, particularly people over 55, who have a few bob in the bank. There is approximately €134 billion on deposit in Irish banks. I encourage older people to spend an extra €10 or €20. Economists and retailers reckon that 10,000 jobs could be created if everyone did that little bit for the country. This strategy must be adopted. In my own constituency there is massive support for it. For a business employing seven or eight people it could mean being able to hold onto two or three employees. Even the conservative forces in the Financial Times and Barclays Bank say we must be very careful about our banking plan because it places the whole burden on the taxpayer. There are those who say there is no alternative. The EU, the IMF, the ECB and the Irish establishment all want us to believe there is no alternative. There is an alternative. They claim there is no choice but to take pay cuts, slash social welfare benefits and give up hard won working conditions because there is not enough money to go round. This is a lie. Ireland is still a fairly affluent country. This has been highlighted by many independent economic observers. There is still a fair amount of wealth in this country. Between them, Ireland’s millionaires have a combined wealth of €121 billion. According to a rich list published recently in TheSunday Times, the wealth of the richest 300 people in Ireland increased by more than €6 billion in the past year. Let us go after them. Let us impose a Robin Hood tax on them instead of taking money from the lowest paid or cutting services. There is an alternative but it requires tough decisions. We should go after the fat cats and the big guys. The alternative involves using these massive resources to create jobs and to redevelop the economy. We are paying approximately €10 billion a year in interest on our debts. We should not be dismissive of our natural resources. We have huge natural resources with potential to develop the economy. Some people estimate the value of our natural resources at €850 billion. A wealth tax could also bring in money. I am presenting an alternative reaction to the current situation. Before the general election some, including the Labour Party, said a job creation strategy was required. This is something I have always supported. As an Independent Member of the Oireachtas, I will support any sensible solution. I supported the reduction in employer’s PRSI in order to support small businesses. We need a serious job creation project. Yesterday, I met members of the ESB group of unions. The ESB is an excellent organisation. They told public representatives we are taking our eye off the ball in dealing with the economic crisis. They said semi-state bodies should be developing the economy and assisting us. These bodies are profitable and keen to do the work and to take on employees. We should be allowed develop them and not slash them or sell them off. We need massive job creation projects. With regard to small businesses the debate concentrates on joint labour committees and the potential to cut low-paid workers, which is something I strongly oppose. When one talks to

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[Deputy Finian McGrath.] small shopkeepers, or to the people who own chippers, they mention three things. They talk about commercial rates, energy costs and insurance costs. These issues could be looked at, rather than take the easy option of slashing the wages of low-paid workers. In the past 40 months, the Irish retail industry has lost more than 40,000 jobs, as struggling shops close their doors for good. A further 40,000 retail jobs are currently at risk unless the Government intervenes. These jobs can be saved with a little creative thinking and a further 13,000 jobs could be created if strong action is taken. Rents in Ireland as a percentage of sales are twice the global average. NAMA was established to deliver liquidity to the banking system, thus allowing commerce to function better. The agency wants to maintain upward only rents. By doing so, it will cause jobs losses and business failures and, in the medium-term, it will undermine asset yields because more businesses will fail and more jobs will be lost. Everyone will pay then. I welcome the Minister to the House. I believe strongly in a competitive retail environment where market rents will result in lower prices for Irish consumers, significant job stability and creation and the retention of our national competitiveness. I accept the points made by previous competitors regarding these developments. Sensible ideas have been outlined in the debate, which I welcome. Section 9(2), which deals with the credit institutions resolution fund, states: “The purpose of the Fund is to provide a source of funding for the resolution of financial instability in, or an imminent serious threat to the financial stability of, an authorised credit institution...”. Section 9(3) also provides that the fund “shall be constituted by—

(a) the contributions made by authorised credit institutions pursuant to section 12,

(b) any sums paid into it by the Minister pursuant to section 11, and

Section 9(4) also provides that the Central Bank “shall not provide any funds to the Fund from its own resources”. Section 10 deals with the management and administration of the fund. It provides that the Central Bank, “shall manage and administer the Fund” and “shall determine the rate of interest payable from time to time on money standing to the credit of the Fund.” The IMF and the World Bank published a comprehensive report on banking insolvency in 2009 while many of the crises globally were still emerging. The report examined the legal, institutional and regulatory framework necessary for bank insolvency. The measures needed were divided into two parts — resolution mechanisms when there is economic stability and when there is financial turmoil. As the Bill will provide for a special resolution regime to address future bank failures, the guidelines for resolution mechanisms in times of financial stability appear to be the most applicable. During times of financial stability, the objective of a bank insolvency framework is to safeguard the stability of the financial system. Bank insolvency proceedings refer to all types of official action that can take place when a bank has crossed the threshold to the commencement of insolvency proceedings. Official action includes the removal of management, restrictions on, or the suspension of, the rights of shareholders and the assumption of direct control of the bank by the authorities and these are features of the legislation. While the law may distinguish between the two stages for the purposes of a special resolution regime, they are often combined into a single proceeding. There are official administration and liquidation processes. During the official administration phase, the authorities take direct con-

94 Central Bank and Credit Institutions (Resolution) 29 June 2011. (No. 2) Bill 2011: Second Stage (Resumed) trol of credit institutions in an effort to restructure. Where a restructuring is not possible, the authorities place the bank in liquidation resulting in the dissolution of a bank as a separate legal entity. The purpose of liquidation is an orderly winding down of the credit institution with the focus on maximising the value of assets and an equitable distribution of the proceeds to creditors. I welcome this important debate on this legislation. I acknowledge the views of colleagues from different parties. The Minister has a huge task ahead of him. He faces major problems and I accept he has inherited most of our economic problems from the previous Government but I urge when dealing with these issues to put his country first.

Deputy Heather Humphreys: On the occasion of my maiden speech, I wish to put on record not just formally but sincerely that I am deeply conscious of the honour that has been bestowed on me by the people of Cavan and Monaghan. I thank my family and all the people who helped me on a voluntary basis during my election campaign but, most of all, I thank the people who voted for me. I am especially conscious of the trust that has been placed in me and I pledge to work hard and honestly to represent my constituents. With this honour comes duties to the people who have sent me to the House as their representative. In carrying out those duties I look forward to working with my fellow Deputies from the constituency and with members of the Government. I pay tribute to former Deputy, Seymour Crawford, for his loyal service to the people of my constituency in the House for more than 18 years. In his maiden speech on 15 December 1992, he spoke of the various economic and infrastructural needs of the constituency. He referred to the needs of the agricultural community and the potential that its exports had for our economic regeneration, as well as the need for Ireland to maintain competitive advantage in international trade and to the necessity to provide funding for rural development initiatives, especially for roads, something that is still vital for our two counties. He spoke of the need for cross-Border interaction and for INTERREG funding for the Border region generally and of the severe economic hardships and deprivation the region was suffering. I acknowledge that, on a number of these fronts, much progress has been made. The peace process, in which Deputy Crawford played a significant role through the British-Irish Parliamentary Body, coupled with a period of economic gain, changed the dynamic in many ways. It enabled people to take up initiatives within the economic sphere, which were unthink- able previously. I would like to record the strong desire of my constituents for equality and fair play in our quest to rebuild our broken economy. As we strive to deal with the awful situation that faces us, to rebuild trust in politics and in the workings of this House and as we work to give people the hope they deserve, let us not forget the wider picture. We do not live in an economy where people are just economic tools; we live in a society, a community in which each of us has a responsibility to each other. I very much welcome the opportunity to contribute to the debate on this legislation, which is hugely significant in the context of the entire banking system. We are all well aware of the fact that our banking system and regulatory authorities failed us completely but we need to acknowledge the role of others in this catastrophe. What was the role of auditors in the banking collapse? After all, they signed off on the accounts presented to the public and some of the same auditing firms continue to provide services to the State. What was the role of commentators and analysts in the daily and Sunday newspapers who told people to buy property and invest in shares? Those who said “Stop” were made to feel like they were fools who were missing out on a great opportunity. This was the crock of gold that we were all told we would

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[Deputy Heather Humphreys.] have. We bought houses not only to live in but to retire on. We were all encouraged to buy into a greedy society that measured success on the accumulation of assets, which, in some cases, are now worthless. In respect of our banking system, some commentators may say this Bill can be seen as a classic case of locking the stable door after the horse has bolted. However, if one does not learn from one’s mistakes, one is destined to repeat them. In that respect, we are all fully aware of the mistakes that were made in the past by our credit institutions and the aim of this Bill is to ensure they are not repeated. There have been three comprehensive reports on the banking crisis. The general theme of all three reports was that while global factors played a part, Ireland’s banking crisis was essentially homemade. Our banks were over exposed, poorly governed and had inadequate risk management. Our regulatory controls did not work for us and these weaknesses subsequently proved disastrous for our banking sector and the wider economy. Essentially our banks were allowed to chase after market share in a reckless manner, while the necessary structures were not in place to withstand the enormous problems which came their way. As a result, it was the Irish taxpayer who had to come to the rescue when difficulties arose. If enacted, this Bill will establish a variety of means for protecting our credit institutions should we encounter institutions which are failing or likely to fail in the future. One of the key points is the establishment of a resolution fund which will provide funding for the resolution of credit institutions. Once the Credit Institutions (Stabilisation) Act 2010 expires, all banks and building societies, along with 409 registered credit unions, will be required to contribute to the fund, with non-payment amounting to an offence. In the case of credit unions, cognisance should be had to the fact that no State aid has been given to them and their contributions should be commensurate with the individual risk profile. This Bill gives the Central Bank very sharp teeth, with extensive powers that need to be used effectively and efficiently while working to clear objectives. There need to be clear lines of accountability and I urge the Minister to ensure that the Central Bank is held accountable and responsible for its actions, and where necessary it must justify why a certain course of action was taken or indeed not taken. The Central Bank’s officials must have a clear understanding of the outcomes of the decisions they make, and we do not want to find ourselves in the same situation as was the case in September 2009 when panic ensued. In view of the extensive powers being given to the Central Bank, the Minister should ensure objectives such as market confidence, public awareness, the protection of consumers and the reduction of financial crime are put in place. In discharging their functions, the Central Bank officials must be mindful that a burden or restriction imposed on a financial institution should be proportionate to the benefits, and consideration should be given to the expected result from the imposition of that burden or restriction. They need to take account of the international character of financial services and markets, and the desirability of maintaining the competitive position of Ireland, and the need to minimise the adverse effects on competition in the industry that may arise from such actions. They need also to be careful that innovation and market growth is not stymied by their approach. The Central Bank and especially the regulator of credit unions should be looking at the success of the co-operative and ethical credit union model, which has helped so many people and communities in this country, and ensure it is not regulated out of existence. Sweeping regulation across the financial sector needs to be considered carefully, in particular the effect it will have on the credit union sector. The Minister should ensure that the “one cap fits all” approach is not pursued in the interest of easier oversight.

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In my own experience, the success of the credit union movement arises from the fact that it is cemented in the community for the community, and local knowledge, coupled with the trust and loyalty that credit unions enjoy, is one of their great assets which cannot be measured in the balance sheet or taken into account in stress testing exercises. The strong ethical values of credit unions will serve them well in these difficult times and more than ever, we need to afford our credit unions a degree of flexibility to continue to provide much needed credit to local businesses. The continued flow of credit is absolutely essential to the recovery of our economy and what better vehicle to use at a local level, whether for individuals or small business, than the credit unions. The credit union review commission has been set up by the Department of Finance and I want to welcome the review, which is due for final report in March 2012. In the interim, we need to be careful of how the credit union sector is managed in terms of regulation and resources. In carrying out his regulatory duties, the regulator must not make any attempt to micro-manage the sector. We need to take cognisance of the continuing unique role of credit unions in society and in all of our communities, particularly in these difficult economic times. We must make sure that the baby is not thrown out with the bath water. In our attempts to eliminate credit union risk, we could end up getting rid of credit unions. I welcome the Bill, but with increased powers come increased responsibilities and accountability. This should always be the case. It is important to remember we do not just live in an economy — people are not just economic tools — we live in a society and in a community in which each of us has a responsibility for each other. Go raibh maith agat.

Acting Chairman (Deputy Thomas P. Broughan): Thank you Deputy. Congratulations on your first speech in the Chamber. I wish you a successful career here. I now call on Deputy Donohoe, who has nearly nine minutes.

Deputy Paschal Donohoe: I want to join with Deputy Humphreys in welcoming this Bill to the House. It is a very important Bill, given the difficulty in which we find ourselves in respect of the banking system. This Bill is important because the absence of such legislation did two things to us in the past. First, it reduced the options and tools available to the Government at the time to deal with a banking system that was in grave difficulty. The absence of such legislation meant that the armoury available to the Government was impaired, because it did not have the ability to manage a situation where a bank might fail, or the ability to handle the failure of that bank in an orderly manner. This is the hole which the Bill before us is aiming to fill, which is why it is to be welcomed. Second, in the absence of a Bill like this, somebody else must pick up the cost for great banking difficulties. This is either the shareholder or the taxpayer. Everybody acknowledges that the taxpayer has borne too much cost for the failure of our banking system. This Bill means that were something like this to develop in the future, there would be more options available to the Government to ensure that the cost of banking failure is not borne almost exclusively by the taxpayer. I want to make four points on the Bill. The first point is about the degree of progress this Bill offers on the previous legislation. That legislation was stabilisation legislation, whereas this is resolution legislation, which goes a step further. The Bill contains three elements that are of particular importance and which could be of help if they are called upon in future. First, the Bill puts in place the capacity for the State to manage the orderly wind up of a bank. Second, it puts in place the capacity for the State to establish a bridging bank or bridging fund, which has been absent up to this point. Third, it puts in place a firm footing for a levy to be put on banks to ensure that the potential cost of a banking difficulty in future is not borne exclusively

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[Deputy Paschal Donohoe.] by the taxpayer. These are three improvements in the Bill that are very important and which should be noted. The second point is about the area in which this Bill is triggered. People who are greater experts in this area than I have written quite a lot about this subject. They have detailed the intervention criteria which should be put in place for a Bill like this to be triggered. This Bill does not seek the consent of the shareholders of the bank to trigger the power of the Bill. That is very important, because in at least one case in Europe where a resolution process was triggered, the shareholders of that bank disputed it and fought it, which slowed down the implementation of this process. The lack of that consent in this Bill will make a big difference to its implementation. I would appreciate if the Minister would clarify the criteria laid down for the Central Bank to trigger this legislation. There are four criteria, the first of which is that either the financial stability of the institution be threatened or the overall financial stability of the system be threatened. The Central Bank is given the option of choosing either of those for fulfilling the terms of the Bill. It then lays down two other criteria that must be fulfilled, that the bank could fail a regulatory test in the future and that the immediate winding up of the bank is not in the public interest. My question on those criteria which are in the Bill is whether they are too prescriptive to slow the implementation of this Bill at a point in the future. The dynamic of something like the legislation being successful is so dependent on whether it is implemented at the right time. Is it necessary to lay down the criteria for the triggering of the legislation within the Bill or could this be done in another way? My third concern relates to the operation of the special management which is laid down in Part 6 of the Bill. The special manager is a feature of the legislation which is carried over from the Credit Institutions (Stabilisation) Bill 2010. For colleagues who are not familiar with the special manager, he will be a figure of significant interest, if we are ever unfortunate enough to need him. The power that the ‘special manager’ is granted in respect of the operation of a failed bank is vast. Section 50 sets out the function of special managers. The special manager has the ability to order any employee, manager, director, or anybody associated with the bank to act in a particular way, if the special manager judges that it is necessary for the stability of the bank or the system to be preserved. The reason I raise this issue is that if one looks at the current difficulty we face, in requesting and ensuring the banks carry out the will of the Legis- lature or of the Government, we are then creating the ability to put in place this special manager who will have a degree of power to oversee everything that is happening in the bank. My simple question is whether we are sure that will work. My expectation is that if something like that is triggered it will be resisted fiercely by the bank into which the person will be moving because the special manager will, I believe, have the power to override the chief executive officer or any members of the board. We know to our cost the difficulty which individuals or officeholders like that have caused us in the past. The legislation will operate in a new culture. I think there could be a tendency to look into the past and say that if we had given people more power, we would not be in the difficulty we are in. Of course, the truth is more complicated, there was a culture that meant that even the power that was there was not levied. That point is made clearly in the Nyberg report. The author of the report asked how so many people in positions of power did not carry out their duty and spot the risk to our system. My point is that as welcome as the development of the new power is, we have no guarantee that it will be implemented in the proper way. The answer to that question will rest on ensuring that the people who are wielding this power, those in the Central Bank and those in the office of the Financial Regulator, have been well chosen so that

98 Central Bank and Credit Institutions (Resolution) 29 June 2011. (No. 2) Bill 2011: Second Stage (Resumed) we have people with the right training and exposure to the right culture to be able to use the power in the Bill for the benefit of us all.

Deputy Richard Boyd Barrett: Deputy Heather Humphreys said in her maiden speech on the Bill that there was an element of closing the stable door after the horse had bolted. I hope I am not putting words in her mouth, but that is putting it mildly. The Central Bank and Credit Institutions (Resolution) (No. 2) Bill 2011 is an utterly pathetic attempt to make it look as if the Government and the European authorities are doing something to prevent a repeat of the financial madness that went on in the banking system in this country and across Europe that produced the financial crisis, but in actual fact does nothing about it and retains the key features of the banking and financial system. It protects precisely the features that led to the crash in the first place. This is smoke and mirrors, spin and a smokescreen to make it look as if one is dealing with the problem when in fact one has no intention of getting to its root. I am not sure if the Government understands that because this proposed legislation is in fact a measure which the Government has been dictated to introduce by the IMF and the EU. When one sets aside all the spins, this is what the EU-IMF deal for this country and similar deals imposed elsewhere seeks to do. What they are really about is protecting the banking system that wrecked our economy and ensuring that nothing is done to infringe upon its right to make profits regardless and to be protected in the present situation against any attempt by anybody to make the bankers take on the burden of their reckless gambling and speculation. This is in the first line of the third review for fiscal consolidation and financial sector reforms in the memorandum of understanding for this quarter. On recapitalisation, the authorities will ensure that a process of a banking system recapitalisation is immediately set in motion. That is the bottom line, recapitalisation at all costs, force us to borrow money at high interest rates to pump into these banks to recapitalise them so that their balance sheets are okay; so that they can return to profitability and carry on doing what they did before, the sort of reckless behaviour that led to the crisis.

Deputy Paschal Donohoe: How would the Deputy get them to lend?

Deputy Richard Boyd Barrett: I will get to that point, Deputy Donohoe. Of course, if one wants to understand the thinking behind the IMF-EU diktats, what one needs to look at are the ECB’s guiding principles for asset support schemes in the section under governance from 2009. This is what they say and it is worth reading. A guiding principle pertaining to the governance of asset support schemes, which refrain from outright nationalisation and which should be borne in mind even if nationalisation become necessary, is that after receiving public support the institutions should continue to be run on the basis of business criteria; to the extent it is possible the preservation of private ownership is preferable for several reasons. These include in the short term the high costs involved in nationalisation — could the cost possibly be any higher than the cost incurred by ordinary people in this country? — and in the medium term the risk of banks’ objectives being diverted from profit maximisation to alternative goals that might distort the market structure and jeopardise the level playing field. These are the guidelines that inform the IMF-EU deal and their diktats have been carried through in this Bill to deal with the banking system.

Deputy Paschal Donohoe: This Bill allows for the closing of banks.

Deputy Richard Boyd Barrett: It is about regulation of the banks.

Deputy Paschal Donohoe: It allows us to close them.

99 Central Bank and Credit Institutions (Resolution) 29 June 2011. (No. 2) Bill 2011: Second Stage (Resumed)

Deputy Richard Boyd Barrett: I will get to that; the Deputy has already had his chance. The Bill is about making sure the banking system remains in private ownership and is protected from any serious public control, with profit maximisation as a central goal. If we are to deal with the causes of the banking crisis, should we not ask what caused it? Was it not caused by the pursuit of profit maximisation at all costs, with no consideration of other factors? That was precisely the problem and it is not just me who says that; Peter Nyberg said that the crisis was reinforced in a widespread international belief in the efficiency of financial markets, talking about group think and the herd mentality in believing that nonsense. Nyberg recognises the pursuit of profit over every other consideration by the financial crisis is the reason we have this crisis but the ECB, in its guidelines for dealing with the banks, says we must not divert from the goal of profit maximisation. We have learned nothing; the report tells us what the problem is, then the ECB tells us we must do nothing about it. Any measures we take must do nothing about it and the public must bear the cost. That is the reality of the Bill. All it says is that if there is another crisis, we will have some sort of fund the banks will put some money into so perhaps the cost to the public will be minimised, never questioning the driving force behind the crisis, the pursuit of profit at all costs. It is not necessary to be a socialist or revolutionary——

Deputy Paschal Donohoe: But it helps.

Deputy Richard Boyd Barrett: ——to understand the need for a different type of banking system. Deputy Higgins earlier said the way to deal with this is to bring the banking system, which is simply the system to control surplus wealth, the savings produced by ordinary working people, under democratic control. Banks simply operate the investment funds and those who own the funds should decide what they are invested in and how our society is developed. Is it not obvious that to avoid the sort of financial crisis we have just witnessed those surplus funds should be under public and democratic ownership so we as a society can democratically decide our priorities for investing and lending? Would that not be fair? Even in the United States, where they are not socialists and where they are not advocating the views of Deputy Higgins or me, the Federal Reserve has three goals: to prevent inflation, to protect home owners and ensure employment. The European Central Bank has only one concern — inflation, or in other words the protection of price stability and the interests of business. The demands of the EU-IMF and the deal to recapitalise the banks means ten of thousands of people might lose their homes. The banks will not lend into the economy to restart growth and get people back to work because recapitalisation of the banks is the major priority of the ECB, the EU and the IMF and that is because profit maximisation is the bottom line; the balance sheet is all that counts. To prevent a recurrence of the economic crisis we do not need pathetic, meaningless measures about what will happen after the next crisis, we should put in place measures to ensure there will not be another crisis by reining in the vampires and sharks of the international financial system and putting them and our banks under democratic control so we dictate their lending and investment policies, policies that are concerned with job creation, strategic industry and keeping people in their homes. If we did that we might prevent another crisis. This Bill will do nothing to prevent such a crisis.

Deputy Shane Ross: I share the suspicions and mistrust about any Bill that has come to this House at the whim of the IMF and EU. Why is it necessary to introduce a Bill of this sort at this time? The timing is to show us doing our obedient best for our masters, the ECB, the EU and the IMF. This might have been an opportunity, because it is not an urgent Bill, for us to

100 Central Bank and Credit Institutions (Resolution) 29 June 2011. (No. 2) Bill 2011: Second Stage (Resumed) say “no”, that we would not introduce the Bill yet, we would introduce it when we get something back, and we all know the minimum we are looking for from the EU-IMF, a change in the interest rate, which has not been forthcoming. This Bill, described by one speaker as closing the stable door after the horse has bolted, is clearly a Bill that is only applicable in the case of Armageddon. These are emergency measures for when Armageddon hits the nation. Unfortunately Armageddon has come and gone and this Bill is to sort out a problem that has mushroomed out of control. It is obviously a Bill aimed at a similar crisis in the future and it is a perfectly natural reaction to the impotence the Minister for Finance and Taoiseach felt that day in September 2008, when the banks came knocking at their door. The IMF and the Department of Finance, which is in its pocket and in the pocket of the EU, decided if these resolutions had been in place on that date, something would have been different and it would have been possible to deal with the crisis in a different way that would have allowed for it to be remedied. I do not see any evidence that the Minister and Taoiseach would have made any other decision in this Bill. I say that because things have not changed in terms of the balance of power between the banks, the Government, the Department of Finance and the central banks, and the interlinking, incestuous relationships between them. On that night, the decision by the Taoiseach and the Minister for Finance was to give a blanket bank guarantee because a gun was put to their heads by the bankers. They were impotent and had no other weapons at their disposal, as might have been the case under this Bill, but mostly they did it because they were the junior partners in that relationship and lacked the knowledge, expertise and bottle to do anything else. It is my guess that power, which rested with the banks and the Department of Finance on that night when the politicians found themselves helpless and paralysed by their lack of expertise, is still in the same place. There is plenty of evidence that points to that. We can look at what has happened within the banks, which are the main culprits, if not the only culprits, in the crisis that the Bill is addressing. There have been efforts by this and the previous Minister for Finance to tackle what appeared to be the symptoms of the problems in the banks. This Minister recently asked the banks for a board review. The response of the banks has been pitiful. Bank of Ireland responded in a brazen way to his request at the AGM two weeks ago. Instead of removing directors who had been there pre-2008, as was the intention, five out of six of the non-executive directors who had been there pre-2008 were re-elected at the AGM. That was really giving the Minister two fingers for his ambitions in that particular sphere. That was the opportunity for the Minister to insist that the Bank of Ireland would get rid of the guys who were there at that time, who were part of the rotten old regime and to put in new people. Bank of Ireland did allow two directors to retire who had been there at the same time. The extraordinary gap in not putting in new people was quite difficult to understand. The governor stayed in place and five of the six directors for re-election were there at the time of that particular crisis as it broke. In other words, they were in place when the property frenzy was indulged by those banks. Why is that? I cannot understand it. My only explanation is that the big banks in this country still feel powerful enough to say to the Government, “We do it our way, not your way”. Otherwise, they would have bent the knee, got rid of those directors and replaced them with others. That is what is happening and the indication is that it will continue to happen. The culture in those banks has not changed. The way to address the problem may be in the language of transfer orders, SMOs and bridging banks. That may be part of it, although that is down the road, but the immediate problem is not being addressed and is being ducked and funked by politicians who tend to listen too much to the Department of Finance, which is so much part

101 Central Bank and Credit Institutions (Resolution) 29 June 2011. (No. 2) Bill 2011: Second Stage (Resumed)

[Deputy Shane Ross.] of the establishment and which has been in the pockets of the banks and the Central Bank for so long that it cannot extricate itself from them. We have the boards in that situation. They were part of the incestuous relationship which has been touched on in recent days by the rather high profile controversy surrounding a member of the board who is a member of the board of the DAA as well. We have boards that are patently policed and peopled by insiders. What is so disappointing — this is not a criticism of this Minister, it is a criticism of the previous Minister, but I hope this Minister will do something about it — is that the public interest directors who were appointed by the previous Government supposedly to watch those directors who have been presiding over the disaster are also people who are patently not experienced in banking or allied areas but are representatives of insiders from the Department of Finance and other Departments and some of whom are ex-politicians from this House. There is absolutely no reason people who are part of the governing party or ex-Ministers should be put on the boards of banks except that the Government feels comfort- able with them, but I do not believe they have done anything in the interests of the taxpayer. Talking of insiders, why are the banks allowed to continuously reappoint the same auditors — companies which have permitted padded valuations to go into the accounts of Bank of Ireland, AIB, Anglo Irish Bank and Irish Nationwide for years and years? Why has the Govern- ment not stepped in and said “No, we have got to have new auditors because these people have failed.” The auditors have their noses in the trough. For instance, PwC has got more than €100 million in fees from the Bank of Ireland in the past ten years. No wonder it is reappointed and signs the books all the time. The relationship is too cosy. The response of the Government is questionable. I do not question its bona fides, I question its weakness. The idea that we are going to sort out the banking problem, not just through the Bill, which I have not got to yet, for which I apologise, but by introducing a system of what is known as pillar banks is very dangerous. One man’s pillar bank is another man’s cartel. The idea of putting two major banks, a duopoly bank, and encouraging a lack of competition in the banks suggests to me that we are building huge trouble for ourselves down the road. It was in the period of the previous duopoly when retail banking was dominated by AIB and Bank of Ireland that we had the most extraordinary controversies in the areas of overcharging and consumer suffering.

Deputy Tom Hayes: I wish to share time with Deputy O’Donnell.

Acting Chairman (Deputy Thomas P. Broughan): Is that agreed? Agreed.

Deputy Tom Hayes: I am pleased to have an opportunity to speak on the important Bill before the House. From listening to Deputy Ross there is no doubt that what happened in the banks was truly unbelievable to all citizens. People are at a loss as to how it all happened. It is a huge problem not alone for this generation but it will have an impact on the country, the economy and the lives of many. People have had to leave our shores and get jobs overseas. They are suffering. In the same way as everyone else, I am amazed that this was allowed to happen and that it did happen. Questions must be asked. However, we are where we are and we must deal with the situation. That is why I welcome the opportunity to say a few words on the Bill. I commend the Government on introducing it and the seriousness with which it is going about its business in terms of solving the problem or avoiding problems in future. The Bill provides the Central Bank with the necessary powers to take swift and effective action in credit institutions including building societies and credit unions that are failing or are likely to fail. It will also protect the stability of the financial system and the economy. The

102 Central Bank and Credit Institutions (Resolution) 29 June 2011. (No. 2) Bill 2011: Second Stage (Resumed)

Bill has followed best international practice in other jurisdictions that have introduced special resolution regimes. The Bill has two main powers — first, the power to transfer assets and liabilities of a credit institution to a third party or pending a transfer to a bridge bank. Second, the Central Bank will have the power to make a special management order appointing a special manager to run an authorised credit institution. The purpose of the special manager is to manage the business of an institution to facilitate the development of recovery and resolution plans or to wind down the institution. The Bill also provides for the establishment of a resolution fund to minimise the exposure of taxpayers to future financial sector difficulties which would be funded by contributions from the credit institutions. The rate of contribution will be prescribed by the Minister for Finance in respect of each institution. We only have to look at what has happened internationally to assess the impact this type of legislation will have. Special resolution regime measures were used last year in the United States where 151 banks failed. In Britain a similar type of legislation was enacted in 2009. Even though it was too late for the collapse of Northern Rock it was in place in time for the Dunferm- line Building Society, which many commentators believe was a successful example of a special resolution regime exercise. The Dunfermline Building Society was once the largest building society in Scotland and the 12th largest in the United Kingdom. In March 2009, reports indicated the society was no longer viable, and it was put up for public sale to be managed by the Bank of England, which transferred the core parts of the society to the Nationwide building society. This followed a sale process conducted by the Bank of England under its special resolution power. The social housing loans of Dunfermline’s customers were transferred temporarily to the DBS Bridge Bank limited, which was owned and controlled by the Bank of England. This allowed the Bank of England to support the social housing portfolio and provided time to secure a permanent solution. It is business as usual for all the customers of Dunfermline Building Society. Their deposits continue to operate normally. Branches and telephone banking continue to operate during their normal hours, and customers can deposit and withdraw their money in the usual way. Savers can be assured that their money is safe. Loan and mortgage customers continue to contact the bank in the usual way and to make payments as normal. All of the staff in the bank were transferred to Nationwide. This Bill is a necessary measure to ensure a systematic process is in place if a bank, building society or credit union should fail or appear likely to fail. However, we must make every effort to ensure this situation does not arise. I would like to echo what I have said in this House in the past about the power of the local bank manager. Many years ago, branch managers knew what was happening in each part of the areas they controlled. They knew their individual customers; they knew the local shopkeeper, the local farmer, the local blacksmith and all the various areas of business across the county. However, modern banking practices have changed all that. In recent years, when people went to the local bank manager, he would say their applications had been sent to the head office and that more information was required or an issue had been raised. In the last 12 months in particular, dealing with many small businesses in my own constituency, I have seen the frustration caused by these head offices and the pressure they are putting people under. I question the way banks have done their business. It is all about doing one’s best for the customer. I appeal to the banking institutions, which are subject to regulations to improve their business practices, to consider the way they deal with their customers. I appeal to them to think back to how things used to be and give the local bank manager more of a say. That alone would restore major confidence among the community of small business owners who are strugg-

103 Central Bank and Credit Institutions (Resolution) 29 June 2011. (No. 2) Bill 2011: Second Stage (Resumed)

[Deputy Tom Hayes.] ling, day in day out, to create jobs for people. There is major potential for job creation, but the one big obstacle is the bank manager. The way banks should do business in the future is to be more in touch with what is happening on the ground. It would be better for this country, for the Government and for the many people who are unemployed.

Deputy Kieran O’Donnell: I welcome this legislation and congratulate the Minister on its introduction. Had it been there at the time of the bank guarantee back in 2008, Anglo Irish Bank would have been dealt with in a very different fashion and we might not have had to pay out so many billions of euro in taxpayers’ money. When I talk about taxpayers I am speaking about all individuals, whether they are paying tax or on social welfare. People on social welfare have paid PRSI and made a contribution. The term “taxpayer” includes all people living in Ireland. It is interesting to note that when the Committee of Public Accounts examined the documents provided at the time of the blanket bank guarantee in September 2008, they showed clearly that the Government, the Financial Regulator and the Central Bank had considered the issue of a special resolution mechanism for banks. It was not as if they were not aware of it; they were. In 2009 the UK introduced such a resolution mechanism. When the current Financial Regulator, Matthew Elderfield, appeared before the Joint Committee on Finance and the Public Service in the previous Dáil, I asked him about the special resolution mechanism, and he said his understanding was that it had been considered prior to the introduction of the blanket guarantee in September 2008 but had not been introduced. My view is that it should have been introduced. We should consider the knock-on effects of what happened to Anglo Irish Bank — the bank was nationalised, NAMA was brought in, and the discounts on the NAMA loans turned out to be significantly higher than expected. My understanding was that the transfer of loans to NAMA was supposed to be based on long-term economic value. The haircuts on the Anglo Irish Bank loans were so large — up to 60% — that the international markets looked in and concluded that the level of banking debt the Irish State had to take on was significant. Thus, Anglo Irish Bank was a major contributor to the rise in our bond yields. Our bond yields are rising at the moment because of external factors such as the situation in Greece. I welcome the fact that austerity measures have been passed in the Greek Parliament tonight, but the important thing, which has been discussed at length by both the Minister for Finance and the Taoiseach, is that we are different from Greece. I hope that on this occasion Greece will seek to meet its targets because it is in the interest of everyone in Europe. The situation of Ireland brings to mind the parable of the prodigal son. We are the son that continued to do his daily work, while Greece is the prodigal son. I hope that when the Greek situation is resolved with a second rescue package, the interests of Ireland are taken into account at European level and we get the attention and priority we deserve. We are now establishing a special resolution mechanism, as countries such as Denmark, Germany and the UK have already done. I understand similar mechanisms are under consideration in Europe and will be introduced next September. It is important that we have a Europe- wide mechanism. If the issue is addressed at European level, that will be to the benefit of all of Europe, including Ireland. We are very much to the forefront in this area. The Bill provides for the setting up of a credit institution resolution fund, which I welcome. It is systematic, providing for bridge banks to deal with institutions that are felt to require intervention. The special management order is a practical measure, ensuring that if an authorised credit institution runs into difficulty, the Central Bank, along with the Minister, will be able to ensure the issues with the specific bank are addressed without bringing contagion to the general financial markets in Ireland, as Anglo Irish Bank did. If a special resolution mech-

104 Central Bank and Credit Institutions (Resolution) 29 June 2011. (No. 2) Bill 2011: Second Stage (Resumed) anism had been in place, similar to the one we had called for when we were in opposition, it would have prevented contagion from Anglo Irish Bank spreading to other institutions. I welcome the fact even in the short time he has been in office, the Minister has introduced this mechanism. Earlier, Deputy Shane Ross commented on the idea of the pillar banks. The mechanism the Minister has put in place is practical and puts the banking system on a sound financial footing. While there may have been too many banks in the market in the past, if it begins to do well again, there may be new entrants, all properly licensed. The pillar banks’ commitment to provide €10 billion per year over the next three years and to concentrate on specific small and medium-sized enterprises, SMEs, is to be welcomed. There is a need for an enhanced Credit Review Office to ensure effective credit availability. Currently, the office can only examine credit or loan applications up to €250,000, a threshold that should be raised. I have constituents with small businesses that cannot access credit for various reasons. The proposed partial loan guarantee scheme will make a significant difference in this regard. When working as an accountant, I knew of cases where a small business, employing three or four people, might need an increase in its overdraft facility of €10,000. It was often easy to come to an arrangement with the business’s bank to avail temporarily of such a facility. These days, however, the banks are so risk adverse they will not even provide such temporary small-scale credit facilities. The partial loan guarantee scheme will give comfort to the banking system, taking on some of that risk and allowing a credit flow to be provided. The small and medium-sized enterprise sector will be instrumental in taking us out of recession. More than 700,000 people are employed in SMEs, making the sector one of the key contributors to the lifeblood of the economy. While the multinational sector is important, particularly in the mid west and Limerick, the SME sector needs to be encouraged with programmes such as the jobs initiative and reductions in PRSI and VAT rates. We have succeeded in ensuring the banks are sound financially. Now, we must concentrate on getting them to lend again, the next part of the process. We must also ensure the banks can operate in an independent manner. In time, the banking debt needs to be separated from sovereign debt to allow a return to a normal market economy. The plan with the pillar banks will lead to these outcomes. Deputy Shane Ross’s point on them does not stand up to scrutiny or take into account what is best for Ireland in the medium to long term. Deputy Tom Hayes’s point about how bank directors ran the banks is valid. When the chief executive officer of Anglo Irish Bank became its chairman, he remained in the same office, effectively being as involved in the bank as chairman as when he was chief executive officer. That was no way to run a bank. We also need to ensure those bank directors at the time of the bank guarantee are no longer around. The Central Bank and Credit Institutions (Resolution)(No. 2) Bill 2011 is welcome legislation in the overall banking sector reform plan. It will ensure at an early stage that banks that run into difficulty can be dealt with effectively without affecting the rest of the system. When the bank guarantee scheme was introduced, we were told the problems with the banks concerned only liquidity. However, Anglo Irish Bank’s problem was insolvency. If such a resolution mechanism were in place at the time, it would not have led to that bank’s contagion spreading to the other banks. I commend the Bill to the House.

Deputy Clare Daly: I wish to share time with Deputies Catherine Murphy and Mick Wallace.

Acting Chairman (Deputy Thomas P. Broughan): Is that agreed? Agreed.

105 Twenty-ninth Amendment of the Constitution 29 June 2011. (No. 3) Bill 2011: Second Stage (Resumed)

Deputy Clare Daly: We are told the Central Bank and Credit Institutions (Resolution) (No. 2) Bill aims to ensure the taxpayer will not bear the cost of any future bank bailouts. This is clearly a sentiment appreciated by all citizens considering the monumental debacle our banking sector has become, the cost of which has been foisted on to our shoulders and that of future generations. This Bill follows on from the Credit Institutions (Stabilisation) Act 2010, which already has cost the taxpayer €46 billion with costs to go even higher. Once that money is pumped into the banking system, we will see this legislation kicking in to deal with more normal failures in the banking system, if such events exist. The elephant in the room, however, is that the bondholders have been left out of the equ- ation. No measure is proposed in this legislation which would ensure the losses of a failed bank would be shouldered by the bondholders. Depositors are correctly prioritised in the legislation but the senior bondholders are given the same level of protection. This pinpoints how weak and irrelevant this legislation will be in dealing with bank losses in the future. I hope substantial amendments will be made on Committee Stage to address this shortcoming. Much play has been made of the legislation’s proposal for the banks to contribute to a special fund to cover the future costs of a troubled bank. It raises more questions than answers, however. The provision states contributions would be made by the authorised credit institutions but also by the Minister for Finance, subject to certain parts of the legislation. How much will the levy for this fund be? How will the Minister raise it? Little or no information is given in this regard. It appears a new power will be given to the Minister for Finance to legislate for a new national levy to ensure the banks are paid for by some sort of a national banking fund. What guarantee is in place to ensure this will not end up on taxpayers’ shoulders? I have a problem with the Central Bank being cast as the knight in shining armour in this Bill.

Debate adjourned.

Private Members’ Business

An Bille um an Naou´ Leasu´ is Fiche ar an mBunreacht (Uimh. 3) 2011: An Dara Ce´im (Ato´ga´il)

Twenty-ninth Amendment of the Constitution (No. 3) Bill 2011: Second Stage (Resumed)

Atairgeadh an cheist: “Go le´ifear an Bille an Dara hUair anois.”

Question again proposed: “That the Bill be now read a Second Time.”

Ato´gadh an dı´ospo´ireacht ar leasu´ a1:

Go scriosfar na focail go le´ir i ndiaidh “Go” agus go gcuirfear an me´id seo a leanas ina n-ionad:

“nde´anann Da´il E´ ireann

— Tacu´ leis go bhfuil ga´ le leasu´ ar an mBunreacht maidir le leanaı´ ambeidhbonn leathan faoi agus, de reír an ghealltanais a tugadh i gcla´r Rialtais 2011, go mbeidh an fhoclaıócht ar aon dul leis an bhfoclaıócht a mhol an Coiste Uile-Phaírtı´ Oireachtais,

— Tacaıócht a thabhairt do na bearta ata´ deánta ag an Rialtas reatha chun dlu´sachur leis an bproíseas leasu´ ar an mBunreacht maidir le leanaı´ a thabhairt isteach,

106 Twenty-ninth Amendment of the Constitution 29 June 2011. (No. 3) Bill 2011: Second Stage (Resumed)

Ag glacadh leis go bhfuil an Roinn Leanaı´ agus Gno´thaı´ O´ ige, i gcomhar le hOifig an Ard- Aighne, ag forbairt moltaı´ faoi la´thair i ndaíl le dreácht-fhoclaıócht do leasu´ ar an mBunreacht a chuirfidh leis na moltaı´ oń gComhchoiste um an Leasu´ Bunreachta maidir le Leanaı´,

a bheartu´ go measfar an Bille um an Naou´ Leasu´ is Fiche ar an mBunreacht (Uimh. 3), 2011 a bheith le´ite an Dara hUair se´ mhı´ o´ inniu.”.

- (An tAire Leanaı´ agus Gno´thaı´ O´ ige, an Teachta Proinse´as Nic Gerailt)

Debate resumed on amendment No. 1:

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

“Da´il E´ ireann

— Supports the need for a broad based amendment to the Constitution in relation to children and that, in accordance with the commitment given in the programme for Government 2011, the wording will be along the lines of that proposed by the all-party Oireachtas committee,

— Endorses the actions taken by the current Government to progress the introduction of the amendment to the Constitution on children,

Accepting that the Department of Children and Youth Affairs is currently, in co-operation with the Office of the Attorney General, developing proposals for draft wording of an amendment to the Constitution which will build on the Joint Committee on the Constitutional Amendment on Children proposals,

resolves that the Twenty-Ninth Amendment of the Constitution (No. 3) Bill 2011 be deemed to be read a Second Time this day six months.”.

- (Minister for Children and Youth Affairs, Deputy Frances Fitzgerald)

Deputy Catherine Murphy: I wish to share time with Deputies Wallace and Pringle.

Acting Chairman (Deputy Thomas P. Broughan): That is fine.

Deputy Catherine Murphy: I am not entirely happy to lend my support to the Bill because I am of the view that a referendum on children’s rights in their totality is required. However, such a referendum has been pushed down the road. That is why I am supporting the measure before the House. Almost 18 months ago and following a lengthy deliberation period, all-party agreement was reached in respect of a particular wording. All that time has passed and we have still not been presented with a date for a referendum on children’s rights. I do not generally favour doing things in a piecemeal way. However, every year that passes is another year in a child’s life. That is not a year which is replaceable. Children are our future and if they were really valued, they would be placed higher in the order of priorities. The House has sat through the night on occasion to deal with certain matters. I accept it will not be easy to deal with this matter and that the wording that will be required will be complex in nature. I am of the

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[Deputy Catherine Murphy.] view, however, that if there was a will to do so, the referendum would be held on the same day as the presidential election. The Bill before the House represents a start and that is why I will be supporting it. Last year, people who are now in government made a number of strong statements. I refer, for example, to the Minister for Justice and Equality, who has a long history in this area and who correctly pointed out the need to strengthen children’s rights in the context of the Constitution. In February 2010 the Minister complained that children who were enduring physical and sexual abuse were being left too long in particular environments. Basically, he was stating that such children are at risk from their own families. He called on the then Government to announce a date for the referendum on children’s rights, which he described as being vitally important. Even if children’s rights were fully enshrined in the Constitution, the absence of adequate services dedicated to vulnerable children will mean the current position will continue to obtain. We know the damage this has done to the lives of those who have suffered abuse. We have heard the testimony of those who are survivors of abuse. We owe it to them and to the children of today to ensure that a change is brought about. I do not believe that a constitutional provision alone will make the difference. It would, however, be a start, particularly if it were underpinned ensuring that the requisite facilities and services were provided. It may be an obvious point, but people only get one childhood. If that childhood is stolen as a result of neglect or physical or sexual abuse, there can be profound consequences for the individual involved and also for society. Just over 12 months ago the Labour Party used its Private Members’ time to request that the then Government bring forward the necessary constitutional amendment Bill in order that a date for the referendum might be set. That party is now in government and is in a position to exert its influence. However, the matter has been pushed back to 2012. I am concerned that in 2012 we will be informed that there is nothing such as the presidential election onto which the referendum can be tagged. As a result, I am of the view that it will, for economic reasons, be pushed back even further. I am seeking an absolute commitment that the matter will be dealt with in a comprehensive manner in 2012. To do anything less would be to let the children of this country down.

Deputy Mick Wallace: I agree that improving the adoption laws is a positive step but, like Deputy Catherine Murphy, I am of the view that it is a terrible pity that a referendum on children’s rights will not be immediately forthcoming. A referendum on the right’s of the child has long been called for by organisations such as Amnesty International and Barnardos. I hope the Government will not kick the can down the road for quite as long as the previous crowd. At this time last year, the Minister for Justice and Equality, Deputy Shatter, was screaming about the importance of holding a children’s rights referendum immediately. However, he does not appear to have maintained that sense of urgency since coming to power. In its election manifesto the Labour Party stated:

The delay in proceeding with the referendum on children’s rights is totally unacceptable. Labour in government will ensure that a children’s rights referendum is urgently progressed.

Perhaps its idea of what is urgent and mine are different. In its submission to the Irish Council for Civil Liberties, Barnardos stated:

Barnardos continues to campaign for the insertion of children’s rights into the Irish Consti- tution. The conspicuous absence of distinct children’s rights in the Constitution represents the ongoing failure of our society to adequately prioritise children and means that a distinction is made between children of married and non-married parents in the delivery and access of services. This distinction is in breach of Article 25 of the UN Declaration of Human Rights which states

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that: Motherhood and childhood are entitled to special care and assistance. All children, whether born in or out of wedlock, shall enjoy the same social protection.

This illustrates the fact that issues such as unequal access to services has distinctly disadvantaged many children in this country. Recently there have been serious cuts in respect of primary education which will certainly disadvantage many of the less well off in our society. I refer here to the cap in respect of special needs education, cuts in the number of resource teachers for Travellers and a reduction in the number of language support teachers. None of these measures will do the less well off children in this State any favours.

Deputy Thomas Pringle: I will be giving qualified support to the Bill. I do so because during the entire time Fianna Fa´il was in government, it made no moves towards holding a referendum on children’s rights. In their election manifestos, the Labour Party and Fine Gael afforded a high priority to holding such a referendum. We can see, however, that, in the context of the programme for Government, this Administration is stalling on this issue. In February 2010, all-party agreement was reached in respect of the wording that would be necessary in order for a referendum to be held. We are in the final days of June 2011 and there is still no proposed date for such a referendum. It is vital that such a date should be identified and that we should enshrine the rights of children in the Constitution. One of the reasons people are so cynical with regard to politics relates to the type of toing and froing that has marked the debate on the need to recognise the rights of children and to hold a referendum thereon. Despite the fact that agreement on a wording was reached in 2010, nothing happened. Now the Fianna Fa´il Party has introduced a Bill in respect of adoption in certain circumstances but we are still no closer to a date for the referendum in order that the rights of the weakest in our society, namely, children, might be recognised. Everyone has a duty of care to ensure those rights are recognised, strengthened and protected. The amendment indicates that the Bill should be deemed to be read a Second Time in six months. I appeal to the Government to ensure it returns to the House at that time and identifies a date on which the referendum on children’s rights will be held and that it provides a wording in respect of that referendum. If the latter is done we will then be in a position, once and for all, to put the rights of children to the fore. We will also be in a position to protect children within the Constitution. Taking the course I have outlined would also go some way to repairing the damage that has been done to politics in this country and to removing the cynical attitude that has arisen in respect of our profession. Our priority must be to protect those who are the most vulnerable.

Deputy Joe Carey: I wish to share time with Deputy Buttimer.

Acting Chairman (Deputy Thomas P. Broughan): That is fine.

Deputy Joe Carey: I congratulate those in the Government who took the decision to place children’s affairs on a par with other portfolios through the establishment of the Department of Children and Youth Affairs. It was wonderful to welcome Deputy Fitzgerald to County Clare two weeks ago on her first official engagement as Minister for Children and Youth Affairs. Throughout her visit to County Clare, the Minister demonstrated her deep understanding of her brief. I thank her for that. I also wish to acknowledge the Minister’s work with regard to Vietnamese adoptions. She met a group in Clare with regard to such adoptions and I am aware there is some movement in that regard. I welcome her work in that area. One of the Minister’s initial tasks is to place children’s rights in Bunreacht na hE´ ireann, while recognising that this process is by no means without implications for other articles of the Consti- tution. I would like to take this opportunity to acknowledge the significant body of work carried

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[Deputy Joe Carey.] out by the late Brian Lenihan when he was Minister of State with responsibility for children. During the last Da´il, I worked as Fine Gael spokesperson on juvenile justice. The former Minister’s fingerprints were found everywhere, from the Children’s Act 2001 to the Irish Youth Justice Service which he established and, not least, the All Party Oireachtas Committee on the Constitution. I acknowledge the Trojan work he did in this area. Yesterday evening, the Minister outlined clearly and unambiguously the high value she places on consensus on this issue. Consensus is the only way we can bring this work to a conclusion. While there is merit in the Bill brought forward by Deputy McConalogue and while I understand what he is trying to achieve, it is a fragmented approach to the issue. We must have a consensus, but in trying to bring forward just two issues, the Deputy is breaking that consensus. More importantly, hasty constitutional changes, whatever the reason they are introduced, tend to create the unintended or unforeseen consequencesreferred to last night by Deputy O´ Cuı´v. Historically such changes have always been damaging and negative and tend to make worse the very issue one is trying to make better. The Minister confirmed last night that the principles put forward by Deputy McConalogue will be contained in the Government’s wording. It is for this reason that I cannot see the merit in proceeding with this Private Members’ Bill. There is no doubt that an unforgivable amount of time has elapsed since Mrs. Justice Catherine McGuiness made her comments on the child’s status in our Constitution. However, as we now come to a constitutional conclusion, if that is possible, there has been progress and there have been initiatives that will allow us distinctively place children’s rights in our Constitution. The establishment of the Department, the establishment of the Office of the Children’s Ombuds- man, the Children’s Act itself and the strengthening of children’s advocacy groups have all been mentioned. All the experience and knowledge of these offices and facilities will no doubt be used to the utmost advantage by the Minister as she proceeds in her work. I support the Minister’s amendment to the motion and note that she has left the door open somewhat with her commitment to revisiting the issue in six months time. The Government is committed to holding a referendum to strengthen children’s rights and this position is clearly outlined in the programme for Govern- ment. The Government will produce a wording which reflects the work of the joint committee on the constitutional amendment on children, which was unanimously agreed by all parties on that committee. The last thing we need is a piecemeal approach to this referendum. I believe the best approach is to have consensus on this issue and that an agreed wording can be put to the people in the referendum which will take place early next year.

Deputy Jerry Buttimer: In welcoming the opportunity presented by the Private Members’ motion to debate the issue of adoption and children’s rights, it is important to remember that although this is the first, it will not be the last time that we will debate these issues in this Da´il. These complex issues touch upon the social fabric of society and highlight the delicate interplay of the Constitution, legislation and the day-to-day realities for many people. It is important we take our time and that we get things right and do not have to return to the issue. I welcome the Independent Members here tonight in support of this Bill and hope that the amendment will have cross-party and Indepen- dent support. The approach taken by Members on the opposite side appears to deal solely with the constitutional position of adoption, without reference to the rights of children, parents, families, foster parents or the other rights touched upon by the proposals. The deliberate slow and tedious cross- party approach taken by the Oireachtas over the past four years in dealing with the issues of children’s rights is a recognition of the complexities which must be overcome. I agree with the

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Minister’s proposals that the most prudent way of dealing with the issues of children’s rights is in a comprehensive manner in a stand alone referendum that is not tied up with a presidential election. Addressing these issues in a piecemeal fashion does no service to the children, parents or families affected. Their interests are best served by a Government committed to the rights of children, the Government we have now that has established a dedicated Department of Children and Youth Affairs and which is committed to holding a referendum on children’s rights. We are not talking about words or slogans here, but about action. Our constitution is interpreted by the courts as a dynamic living document the articles of which can be interpreted in the social context at the time of a judgment. For these reasons, we must be careful in amending it and must try to ensure that in years to come, long after we are gone, our decisions do not have unintended consequences. We have seen what has happened over the years when governments have courted populism and we must avoid such consequences. Our Constitution places the marital family in a position of elevated protection, a status that reflects our historic development and the importance which society places on the raising of children. This importance was recognised by the All-Party Committee on the Constitution when it recommended an amended Article 42. The proposed amendment recognised the paramount importance of the welfare and best interests of children and the rights and responsibilities of parents. Balancing these competing rights is the reason bringing forward a constitutional amendment takes time. It is also the reason the Minister will take her time. She is not a Johnny come lately and to this. In her work in the Seanad as Fine Gael leader and spokesperson on health and in her work on the committee over the past three years she has played a dynamic pioneering role.

Deputy Joe Carey: Hear, hear.

Deputy Jerry Buttimer: She will take her time and she deserves the support of all in the House. This is not a political issue, but is about children, parents and their rights. The issues this House needs to address with regard to adoption are much broader than as presented in this Bill. Addressing the issues of adoption necessitated by neglect of parental responsibilities towards a child and adoption of a child of married parents fails to recognise the many other difficulties we must remedy. It is our job as legislators to find a remedy and solutions. We must examine the processes and procedures regarding international adoption. I agree with Deputy Carey that we must examine whether the processes and procedures for adoption adequately cater for modern family arrangements. These issues are important to children, parents and families. To address adoption without considering the issue in its widest possible context does these families a disservice. I request that when preparing this legislation, the Minister fully considers all aspects of adoption and the impact that such legislation will have on the lives of the many families it will affect. I am delighted to have the opportunity to speak on this issue tonight. I support the Minister, who has a full Cabinet seat for children’s rights and youth affairs at the Cabinet table. She has given a commitment, last night and in the past, to dealing with the issue of children’s rights. I know the Govern- ment will deliver on that. I hope Members continue to contribute constructively on this issue and to offer cross-party support and not divide the House. The Minister deserves our full support.

Deputy Ciara Conway: I welcome the opportunity to speak on this important matter. As someone who has worked in the area of child protection, I am only too aware of the need for a greater emphasis on the rights of children within the Constitution, particularly in respect of the types of family recognised by Bunreacht na hE´ ireann. I am a lone parent and am unrecognised in the Constitution. Improvement is required in this area to bring Ireland up to date with best practice

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[Deputy Ciara Conway.] internationally — everybody is only too well aware of this — and to protect the most vulnerable members of society and our future. The changes being considered by the Joint Committee on the Constitutional Amendment on Children contain many important elements, including giving children a chance to air their views on adoption. It is frightening to believe we have come this far without enshrining this as a right officially. As early as 1996, the Constitution Review Group pointed out that the Constitution needed to be worked on if the State were to measure up to the United Nations Convention on the Rights of the Child. Two years later, a UN committee pointed out that “Ireland’s approach to the rights of children appears to be somewhat fragmented”. Deputy McConalogue might argue Fianna Faíl’s approach to the rights of children is still somewhat fragmented. This is because it is putting one aspect of a very important, complex area into the spotlight without considering the wider context. Everybody agrees the issues surrounding adoption need to be addressed. The issue does not exist in isolation but is part of a wider, complex and very sensitive area, yet we have had a brazen example of Fianna Faíl wading in and proposing a quick build because it looks good on the surface, much like some of the ill-thought out apartment complexes its builder friends were so fond of throwing up in the Celtic tiger era. What exactly did Fianna Faíl do for children during its tenure in government, or during the Celtic tiger era? As my colleague the Minister for Children and Youth Affairs, Deputy Frances Fitzgerald, rightly pointed out yesterday, this is an issue that the Fianna Faíl-led Government failed to put to the people for 14 years. It has a cheek to come into the House and cut and paste in regard to the issue. Deputy McConalogue has accused the Government of doing a U-turn by not putting the referendum on children’s rights to the people on the day of the presidential election. I, for one, am delighted the decision was taken not to hold the two referenda on the same day. This shows the Government shows a deep understanding of the issue and recognises it is an area that needs work. We in the Labour Party-Fine Gael coalition believe the wider issues deserve space to be debated properly in the public arena so people will have an understanding of what is at stake. The Govern- ment is fully committed to strengthening children’s rights and it will have a referendum on this subject next year. While it is fine by me that Deputy McConalogue wants to criticise the Govern- ment for taking time to think about an issue and ensure people are aware of the facts, I am glad to belong to a group that believes children’s rights comprise an important issue that deserves time. Many candidates are putting themselves forward to be President. It is only natural, therefore, that the media will concentrate on personalities and would not give sufficient time to the referendum on children, which is so important. It seems Fianna Faíl may not be interested in the presidential election given that it has nobody to fly the flag for it. This is understandable, I suppose. Perhaps it will consider backing an affiliated candidate, if possible, to vote by telephoning or texting a premium line. Deputy McConalogue should note this is not how our democracy works. I commend Fianna Faíl for attempting in this debate to highlight one key area that needs to be tackled. However, dealing with the issue in conjunction with the presidential race would be heavy- handed and ill-considered. We should not support this fragmented Bill by Fianna Faíl as it addresses only one part of a wide-ranging problem that needs to be tackled. Let us give the Joint Committee on the Constitutional Amendment on Children space to put the final touches to the wording to help protect our future and that of future generations. The people will have the chance to have their say on this important issue. Let us ensure they have the space to consider it. Allow me to be so bold as to coin a phrase: “Think of the children.”

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Deputy Regina Doherty: Let me begin with a quotation from a report of the Select Panel for the Promotion of Child Health in the United States: “Children are one third of our population and all of our future”. Children account for over 1 million of the population of Ireland. As a parent of four children, I can stand confidently and state they are all of my future. My four children’s concerns, wishes and heartaches are the responsibility of myself and my husband. It is paramount to us, as parents, to ensure their future development and happiness are central. We must ensure children are at the centre of decisions we make regarding them. We gave a commitment on entering Government that we would hold the referendum on children within a year. I agree with the Minister and Taoiseach that the referendum should not be held at the same time as the presidential election as it will result in children being used as a bargaining chip. The issue could become very confused and fuzzy considering the other proposals for later in the year. Having said that, we must afford the people the opportunity to change the Constitution in such a way that the welfare of the child is paramount. Since the last Government gave its commitment to holding this referendum, there have been huge delays. The current Government has already shown the serious approach it takes towards children and their future by giving a full Cabinet position to the Minister for Children and Youth Affairs. I welcome that and wish the Minister the best in her role. Everything we do for children and every decision we make must be above politics. We must make child-centred decisions. “Child-centred” is a phrase that is bandied about frequently these days but, in a constitutional context, it could not be more important. Children have a right to be heard, to be at the centre of every decision that is made that concerns them, not to be discriminated against, to life, to survival and to development. In short, they have a right to their rights under the UN convention. In 1998, the UN Committee on the Rights of the Child, examining Ireland’s first report on the implementation of the UN Convention on the Rights of the Child, stated our “welfare practices and policies do not adequately reflect the child rights-based approach enshrined in the Convention”. It has taken some time and many reviews and reports to get to where we are today. There have been criticisms from children’s groups, such as the ISPCC and Barnardos, that political will seems to be lacking in regard to making provision for the child in our Constitution. This is not the case. As long as Fine Gael is in Government, all the children in this country will have a voice. In whatever small way I can, I will, with my voice, ensure the rights and interests of children remain on our agenda. There will be much debate outside this House about what is right for our children. While we must listen to all opinions, it is most important that we listen to our children. Only they know how they feel and how they are affected by the decisions we make on their behalf. Experts say that the best place for a child is with its family and that, in so far as it is practicable, children must remain within the family unit if it is in their best interest.It is in the best interest of a child to live in a stable and loving environment. In today’s society, there are different types of family units and a number of different loving and stable environments in which a child can grow up happy and healthy. Legislation must be produced to reflect this. Changing our Constitution, the very foundation of our State, to reflect changes in society is a necessity. To bring forward a change that will strengthen the rights of the child while still being mindful of the family and supportive of it must be our main aim. I agree with the recommendation of the joint committee that adoption legislation should be published before the referendum is put to the people because only then can people make an informed decision. We cannot ask the people to make such an important decision on children blindly as it would not make sense. It also makes no sense for the Opposition to come to the House with only one element of a Bill in a piecemeal approach to the overall aims of the new Constitution.

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[Deputy Regina Doherty.]

We all agree that children should be our priority. Although I was not in this House at the time of the joint committee’s deliberations, I have read the report and listened to the debate on it. I am glad to note there was, after much discussion, political consensus on the way in which this referendum should be approached. I hope we can continue in the same vein given that the Government is so committed to this matter, regardless of anything else that is occurring politically. Political differences that may exist between the Government and Opposition regarding economic policy, for example, must be put to one side and never interfere with our joint aspiration to ensure our children and their future remain our top priority.

Deputy Simon Harris: I very much welcome the opportunity to speak on this important issue. I congratulate Deputy Fitzgerald on her appointment as Minister for Children and Youth Affairs. Knowing her as I do, I know how well suited she is to her brief, how seriously she will take her responsibility and how committed she is to the issues surrounding children’s rights, child protection and supporting families. Deputy Buttimer went some way towards outlining the Minister’s record on these issues when she was a Senator and member of the all-party Oireachtas committee. I wish Deputy McConalogue well in his role as Fianna Faíl spokesperson on children. While we may not agree with the Bill he has introduced, we believe it is important that Private Members’ time is being used to highlight issues concerning children and the new Department of Children and Youth Affairs. I very much welcome that. While I do not agree with the approach of Fianna Faíl on this matter, it has provided us with an opportunity to highlight the need for a comprehensive children’s rights referendum and to give attention to the issue of adoption. The creation of a full Cabinet Department for Children and Youth Affairs is a very welcome development. It gives crucial political recognition and clout to issues such as the one before the House this evening. Already we are beginning to see the benefits of this new political clout in the area of adoption. I warmly welcome the fact that within the first 100 days of taking office the Government, through the Minister instructed the Adoption Authority to visit Vietnam in an effort to progress the huge body of work that needs to be done to begin the process of Irish people being able to adopt from Vietnam once again. Commentary by the media on the Government’sfirst100 days will be dominated by issues such as banking and the economy, as this is to be expected, this is real societal progress and I commend the Minister and the Department on it. The issue of children’s rights and child protection has rightly been prominent in Irish political and societal discourse in recent years. In fact at times, the only other issue to rival it in terms of media coverage and political debate has been the economic crisis. After the publication of report upon report documenting — at times very frank, graphic and upsetting in nature — the appalling failures of the country, at all levels from the top to the ground, to protect and cherish our children, the time for constructive and comprehensive action to place the protection of children at the centre of our Constitution once and for all is long overdue. In this sense, I genuinely welcome the opportunity afforded by the debate tonight, which allows us as national legislators, to put on the record of the House our commitment not just to respond to absolute failures and neglect with empty rhetoric or phrases but rather our desire to work together on a cross-party basis to action real and meaningful change in how children are treated and respected in 21st century Ireland. There are a number of problems and limitations with the specific Bill before the House tonight and many of these were outlined yesterday by the Minister and Deputy O´ Caolaín of Sinn Feín. I will not repeat these points other than to make two brief comments. Cross-party consensus when it comes to any referendum to improve the standing of children in our constitution is essential. The previous Government’s attempt to deviate away from agreed cross-party wording which took a

114 Twenty-ninth Amendment of the Constitution 29 June 2011. (No. 3) Bill 2011: Second Stage (Resumed) long time to achieve and move to a more narrow version was foolish. I am pleased the Minister confirmed yesterday that the new Government will respect the work done by the cross-party committee and base the wording of a referendum on its agreed conclusion. It is ironic and disappointing to hear Fianna Fa´il criticise the new Government for any delay in the introduction of this referendum. It was in fact its attempts in Government to move away from the cross-party wording that added to delays that brought us to today. We cannot support a Bill which cherry-picks a very narrow part of the overall children’s rights agenda. Quite aside from the isolationist approach to dealing with complex issues, it could also lead to a significant delay in the presentation of an over-arching referendum on children’s rights. I welcome the fact that the Government amendment does not dismiss the contents of the Bill out of hand but instead attempts to include it in the much bigger project of a children’s rights referendum. While the Government takes the necessary time to ensure a comprehensive and well-thought out referendum can be put to the people, no time can be wasted, and I know the Minister will not do so. It is important that a more specific timeframe for the referendum is provided at the earliest possible opportunity. I am not interested in political point scoring on this issue and I do not care what party suggested it, when it was suggested or why but I agree with previous speakers on this side of the House that it would not be appropriate to hold this important referendum on the same day as a presidential election which will engage in party and personality politics. This issue is far above any office in the country. I ask the Minister when considering the issue of adoption to take on board the comments made in the House by Deputy Mattie McGrath last night on foster care. I specifically ask that she conduct an urgent review of the supports in terms of after-care being provided to people upon reaching the age of 18 in foster care and to their foster parents. This is a very important issue which is not being adequately addressed. I hope the new Minister for Children and Youth Affairs will use her new political clout and Department to progress this issue.

Deputy Dan Neville: I welcome the opportunity to contribute to the debate. I congratulate the Minister and wish her well. Like everybody else, I know her qualities and her commitment to many social issues. She is particularly sensitive to children’s issue and is an excellent choice. This is a highly complex issue. I was a member of the Joint Oireachtas Committee on the Constitutional Amendment on Children. We expected that within months of beginning discussions and taking submissions we would produce a report. However, the area is so complex and difficult it took us two years to finalise a report. We did so with the consensus of all members of the committee. All parties subscribed to the contents of the report. This will require very serious debate because many organisations have serious views on many aspects of it. Deputy O´ Fearghaı´l was also a member of the committee and he understands what I am saying and is nodding in agreement. This discussion on the proposed amendment will be very serious and in-depth. It will not go through like other amendments which were, on the face of it, straightforward. This is not a straightforward amendment; it is highly complex. I commend the committee Chairman, Mary O’Rourke, and Vice Chairman, Deputy Michael Noonan, who put their heart and soul into ensuring that despite the lawyers we finalised the wording after two years and that there was consensus on the report. The committee was established in November 2007. It issued three reports, and the final report was issued in March 2010. Our brief was to deal with the constitutional change and statutes and case law concerning adoption, guardian- ship, case proceedings, custody and access to children and to make a recommendation on how the Constitution could be amended to enshrine and enhance the protection of children.

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[Deputy Dan Neville.]

The committee recommended the recognition of children’s rights and recognising the role of parents with regard to primacy, and being natural carers, educators and protectors of the child. There is much debate on the roles of the parent and the State with regard to the difficulties of the affect of a constitutional change on the rights of the child on parents. The wording proposed by the committee specifically states that the State should ensure that all children of the State are equal and that the State should not discriminate between children. It recommended that the proposed wording of the constitutional amendment should require the State by proportional intervention to support all children. We were certain that all children in the State are to be equal and have the same status under the Constitution. There was much discussion on this with regard to people who have come to Ireland from abroad to work here and whose children were born here. It was highlighted that society has changed, thanks be to God, in the past 40 or 50 years and children of single parents should have absolute equal rights with all other children.

Deputy SeańO´ Fearghaı´l: Ba mhaith liom mo chuid ama a roinnt leis na Teachtaı´ Niall Collins agus Dara Calleary. I join colleagues in congratulating the Minister for Children and Youth Affairs, Deputy Frances Fitzgerald, on her appointment to Cabinet. It was a wise and inspired move by the Taoiseach to elevate the Ministry with responsibility for children to full Cabinet level. It is particularly gratifying that a Kildare person is occupying the role. I am grateful for the opportunity to contribute to this debate on an issue of significant concern. I compliment my party’s spokesperson on children, Deputy Charlie McConalogue, on his initiative in bringing forward this important proposal which seeks to address the need for the State to provide for the adoption of children in the event of substantial parental failure and where married couples are prepared to agree to the adoption of a child of their marriage. This debate makes good use of parliamentary time and constitutes further proof of the Fianna Faíl Party’s commitment to provide a positive and constructive Opposition in the 31st Daíl. We last discussed these matters during Private Members’ time on 18 and 19 May 2010, when the current Minister, Deputy Brendan Howlin, moved a motion calling in effect on the then Government to proceed, post haste, to fix a date for the holding of a referendum on the rights of the child which included provision for constitutional reform in the area of adoption, as envisaged in Deputy McConalogue’s Bill. On that occasion, contributors on all sides acknowledged the work done by the Joint Committee on a Constitutional Amendment on Children under the chairmanship of former Deputy Mary O’Rourke. While the Chairman was praised, Members were also unanimous in commending Deputies Howlin, O´ Caolaín and Shatter and then Senator Alex White on their considerable efforts and the leadership they showed in achieving political consensus on a number of issues relating to children and on the matter of a form of words for a constitutional amendment. On the occasion of that debate, which was held just 13 months ago, there appeared to be a most genuine consensus on the need to press forward with a referendum at the earliest possible time. As a backbench Government Deputy at the time, I considered that the concern of a number of Departments, including the then Department of Education and Science, that the proposed wording of the amendment would give rise to problems and unintended consequences could be addressed by tweaking the proposed wording of the amendment and that this could be done within a reasonable timeframe. In due course, the then Minister of State, Deputy Barry Andrews, proposed a new form of words. As we all know only too well, however, his initiative was overtaken by events. In light of the momentum that was generated in the previous Daíl towards creating a stronger constitutional and legislative framework in support of the rights of the child, it is sad and disappointing to see this goodwill and momentum being dissipated to some extent by a Government which considers that the pay of judges rates priority attention over the rights of the child. This is

116 Twenty-ninth Amendment of the Constitution 29 June 2011. (No. 3) Bill 2011: Second Stage (Resumed) despite the statements made by Members of the Government parties when in opposition, the commitments they gave in the course of the election campaign and their statements on entering government. A number of Deputies opposite indicated that it would be inappropriate to hold a referendum on children’s rights in conjunction with the presidential election. I recall that it was the current Taoiseach, Deputy Kenny, who suggested in February, in the run-up to the general election, that the referendum was a priority issue for his party and would be held alongside the presidential election. Some of the Deputies opposite are, therefore, departing from the position set out by their leader some time ago. While there are complexities surrounding the broader issues of children’s rights, they are not insurmountable and the issue of adoption is more straightforward and capable of being dealt with in the timeframe set out by Deputy McConalogue. If it were to respond positively to the proposal before the House, the Government would avail of an opportunity of joining with us in creating greater security, new opportunities and, ultimately, better life prospects for many young Irish people now and in future. The statistics on children in care, which I am sure all Deputies have studied, are truly staggering. Of the 6,000 children in question, 90% are currently in foster home placements, with one third of these or close to 2,000 children in long-term foster care. Figures for the first quarter of 2011 suggest there has been an inordinate increase in the number of children being taken into care. In looking back over the matters debated by the joint committee over the two year period to which Deputy Neville referred, I recalled a report from a principal social worker in one of the country’s 32 local health offices. In the time remaining, I propose to read some extracts from what he had to say about the need to provide specific categories of children with the opportunity of being adopted. The word of a professional working at the coalface adds perspective to our debate. He stated the following:

On the proposed amendment to the Constitution I think the position should be that adoption can be considered as an option for all children where the reality is that they have been placed, and are living away, from their birth or natural parents. Clearly appropriate timeframes will have to be worked out as to when children become available, so to speak, for adoption.

Excluding inter-country adoptions there are three routes to adoption at the moment.

• The old fashioned “stranger adoption” where the mother indicates she wants the baby adopted and the baby is placed with parents unknown to her, assessed and selected by an Adoption Agency.

• A relative, as defined by the Adoption Act 1998, adopts the baby.

• Foster parents apply to adopt their foster child under the Adoption Act 1988. This is only possible under very restrictive conditions where the parents are shown to have comprehensively abandoned their parental duties.

In my area we have worked with 3 ‘’stranger adoptions’’ and about 6 foster parents adopting foster children over the last 10 years. All of these adoptions have provided very good solutions for the children involved. And this has been particularly true for the foster children adopted. All of these children were over 10 years old, and some were 16 or 17 years old. Therefore, the children could understand the process of their adoption and could see that this was a powerful and very visible demonstration of their foster parents’ love for them. Also it was shown to them that they were being accepted into the family not only by their foster parents but by their foster siblings as well.

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[Deputy Seán Ó Fearghaíl.]

At the moment there are 230 children in care in my area. Thus over the last 10 years I would guess there have been about 600-700 children in care. Thus adoption as an option is only for a very small minority — barely over 1% of children in care. Over the last 3 years I have had 4 requests to assist families who would be classed as private foster carers, under the Children Act 2001, to adopt the child they had living with them. Private foster care is any arrangement where the child is in the full-time care of a person other than his parent-guardian or their partner or relative. Two of the requests came from families where the wife was the grand-aunt of the child — or the aunt of the mother of the child. It seems clear that both children have been placed with the full consent and support of the mother. In the one inspected by a social worker from my team the child is thriving and doing very well within his private foster family. The wife in the family is not close enough a relative as defined by the Adoption Act 1998. Therefore, there is no mechanism by which this child can be adopted by the adults he has lived with for the last 3 years. In another case, the relationship was much more distant — the wife in the private foster family is a second cousin of the mother of the child.

The fourth case here is a family similar to the earlier three except the child was 17 years old. The husband here was a relative of the mother. In an agreement made when the child was two years old the mother placed the child with her relative and his wife. This agreement was facilitated by a Health Board social worker at the time. This solution was a private arrangement and was seen as better than taking the child into the care of the Health Board.

He continued:

As the child approached 18 years of age, the couple, who were the carers for 15 years, sought to adopt him. Again, this did not prove possible under the existing Adoption Law.

A final case I’ll mention involves a baby born from an extra marital relationship and placed in the care of the H.S.E. from the maternity hospital. The mother is adamant the baby cannot live with her as her marriage has been revived and she cannot see how the baby could fit in with her husband and her other children. She was very open to the idea of adoption, but neither she or her husband will comply with the Adoption Board’s rules on establishing paternity. It seems that any mention of the extra marital baby threatens the stability of the newly reforged marriage. This baby then cannot be placed for adoption but has been placed in long-term foster care.

All of these 5 cases were active in [this local health area] in the last two years. All are situations where [the social worker thinks] it is most likely that an adoption would have been in the best interest of the child. Yet the adoption option was not possible. [His] area is one of 32 LHOs in the country, so [he assumes] there are considerably more children in this position countrywide.

Some of the impediments [he has] identified could, I suspect, be remedied by legislation. Blocks on children of married parents may require a constitutional amendment. The overall benefit of the amendments proposed should be to free up the position so that the best plan for each child can be constructed and all options, including where appropriate, adoption, can be realistically considered.

He concludes:

The present position is that many children are in long-term foster care — both state and private — and cannot be adopted. This remains the case even though they may have minimal, or no, contact with their natural parents and have a relationship with their foster carer of an emotional depth and intensity that one associates with natural parents-child relationships. The

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emotional and psychological benefits of the permanence of adoption cannot, in my view, be underestimated for such children who are adopted.

In short, of the 700 children approximately in care in my area over the last ten years hardly more than 1% were adopted. Given the emotional and psychological benefits associated with adoption, far too few children are getting the chance of adoption. An appropriate constitutional amendment on adoption could help enormously in changing this landscape.

As can be adduced from the extracts of the report which I have just read into the record, there is a most compelling case to proceed, as a matter of urgency, in accordance with the proposals set out in the motion. In conclusion, I am conscious of the fact that some Members on the other side of the House are reluctant to proceed. However, I will quote what former Deputy Michael D. Higgins said on these matters in the House in May 2010: “What must be decided? The children of the people who will be consulted in all the Departments are not at risk. If one wants to say every child is a protected child in this Republic, then one will vote for the motion. That is what we should do, we do not need any more time.” I commend the Bill to the House.

Deputy Niall Collins: I am grateful for the opportunity to contribute to this debate on an issue of significant concern. I compliment my party colleague, Deputy McConalogue, our spokesperson on children, on his initiative in bringing forward this important proposal which seeks to address the need for the State to provide for the adoption of children in the event of parental failure and where married couples are prepared to agree to the adoption of a child of their marriage. It is regrettable that of necessity we often find ourselves discussing and debating issues relating to the economy, finance and banking in this House but do not get more time to discuss very important social issues such as this. This is a genuine attempt to keep the focus on this matter and to keep it high on the agenda. I most sincerely wish the newly appointed Minister well in her work. There is no need to be party political about this issue and any criticisms we make will be constructive, not political. The amendment to the Constitution will empower the Oireachtas to introduce legislation which will permit the adoption of children in long-term care, if it is in their best interests. We must focus on what is in the best interests of the child and nothing else, and we must park economic reasons and everything else in that context. The amendment will seek to affirm the right of all children to be adopted, regardless of the marital status of their parents. Most importantly, it does so without interfering with the primacy of the family under the Constitution. Unfortunately, and it is a reflection on our society, there are more than 6,000 children in care in Ireland. A total of 5,500 of these are in foster care, and one third of them are in long-term foster care. In some cases, children are taken into care at birth and are raised by foster parents. They might only have sporadic contact with their parents. The possibility of adoption 8o’clock would represent a chance for a stable and secure family life, something every child deserves. We should take every opportunity to salute and acknowledge the work of foster families and the people involved in the delivery of foster care to these children. Many people are involved and often their work is unacknowledged. I know many of them in my constituency. All Members know such people in their constituencies given that they are constituency representatives as well as national parliamentarians. The work they do is truly tremendous. This Bill has been brought forward because the Government parties have reneged on commitments they made, when they were in the Opposition, to proceed immediately with a referendum on children’s rights. I ask the Government to take on board the initiative Deputy McConalogue has brought before the House. We should not divide along party lines, but support him.

119 Twenty-ninth Amendment of the Constitution 29 June 2011. (No. 3) Bill 2011: Second Stage (Resumed)

[Deputy Niall Collins.]

In conclusion, I wish to acknowledge the sterling work of both the Office of the Ombudsman for Children and the Ombudsman for Children. As public representatives all of us have probably referred case work to that office and its work is carried out in a very professional manner. I should also mention the work of the many advocacy groups in this area, including the fine work of the Irish Society for the Prevention of Cruelty to Children, ISPCC, and Barnardos Ireland. We should seek to maintain the level of State funding for these organisations so they can continue to carry out their fine work.

Deputy Dara Calleary: I commend my colleague, Deputy McConalogue, for bringing this legislation forward. I also wish the Minister every success in her office. I had the privilege of being a substitute member of the Joint Committee on the Constitutional Amendment on Children in the last Daíl prior to my appointment as a Minister. It was a model of how committees should and can work. It was adequately resourced and all parties had access to legal experience. The work done, under various chairs, was considerable. The material made available to us was superb. It is a pity that model cannot be adopted by other committees. I hope the Abbeylara referendum will deal with the issues that choke committees. I also hope the model of that committee will be used by other committees. There was agreement on the committee about adoption and about the inadequacies in current adoption law. When the Constitution was drafted in the 1930s, adoption was probably not in the minds of those who framed it. The 1952 Act dealt with the adoption of children born outside marriage. As many speakers have said, society has moved on since then and situations have presented themselves to which the law has not responded or kept up with. Deputy McConalogue’s Bill is an attempt to bring the law up to date. The constant theme of our debate in the committee, and generally, is that there should be respect for the primacy of the family. That is still something we should hold within our Constitution, no matter that the format of family has moved on. The concept of the family is very different now from what it was in 1937. Like other European countries, we should retain a commitment to family values within our Constitution. The measure proposed by Deputy McConalogue respects that commitment. The work done over many years, including that done by the late Brian Lenihan, always respected that. It is not only politicians who say our adoption laws are deficient. There is agreement within the Judiciary and among experts in the area that work needs to be done here. We have a perfect opportunity to show that the 31st Daíl treats children as a priority by holding a referendum in October, as was promised. On that day, technical referendums will be held on judges’ pay and amendments relating to committees. It would make a statement that the Daíl can unite and takes the issue of children seriously if we agreed to hold a referendum on children’s rights on that day. The Chief Justice was clear when he wrote the foreword to Child Law by Geoffrey Shannon, who does so much good work in this area. The Chief Justice commented:

Domestic law in the area of child rights falls far short of our international obligations. Irish law is out of sync with European Convention jurisprudence and, in particular, the Constitution focuses on the nuclear marital family and does not countenance any other family forms outside of this.

When the Chief Justice, the first law officer of the State, feels free to say that, he presents us with a challenge to respond. Much work was done by previous committees to do that but it is now time the Oireachtas came together and filled in the gaps that exist.

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I join colleagues on the other side of the House in paying tribute to the various agencies and lobbying organisations that have done so much work in this area. The last number of years saw the uncovering of unbelievable scandals, things we could not countenance, as a State or as people of the State. We left that work to be done by health care professionals and social workers. We left them to go into houses and come across scenes that none of us would like to see. They did so without fear or favour and at considerable personal and professional cost to themselves. As a Legislature, we must respond to the commitment they have shown in their work by introducing legislation such as that promoted by Deputy McConalogue. Deputy Collins spoke about the statistics relating to care. It is a matter of concern that there has been a considerable spike in all these statistics during this year. This spike may indicate a greater awareness or the availability of more resources. Nevertheless, it shows that in spite of society’s reaction to various child abuse cases, we still seem to have a serious problem. The figures from December 2005 to April of this year show a 26% increase in the number of children in care, from 4,800 to over 6,000. This presents legislators with a challenge to ensure that we respond quickly and efficiently to the messages and that those who are providing care have equal opportunities in terms of adoption and providing children with permanent care. Geoffrey Shannon further proposed that children who have been in foster care for at least five years should not be returned to their natural parents without the consent of a court. This would bring us into line with policy in Northern Ireland, where if a child has been in the care of foster parents their prospective adopters’ statutory rights are independent of their role as carers for a local authority. An all-island approach to this issue would make sense, within the constraints of different legal systems. Everyone agrees that the welfare of the child is paramount. It is difficult, in the context of legal and constitutional jargon, to focus on the fact that we are dealing with children who are looking for security and the proper chances in life. We must ensure that we provide that framework for them. The late Brian Lenihan did huge work during his term as Minister of State with responsibility for children and laid the groundwork for those who followed him, in legislation and in practical projects throughout the country. He stressed the importance of the Constitution. He said:

Time and again the people of Ireland have demonstrated their strong attachment to our Consti- tution. We should not underestimate the huge onus that rests on all of us who seek to strengthen the position of the child in that Constitution. The burden of persuasion in any referendum is a heavy one. It is all the greater when the proposal relates to the delicate and intimate relationship that exists between child, parent, family and State.

That is the balance we must reach in this Legislature as we tackle this issue. I will conclude with one of Brian Lenihan’s fine remarks in this area:

This is an enormous opportunity to make a difference for children. I firmly believe that the time has come to move beyond oratory, to ensure that the fundamental law of our land, the Constitution, properly reflects our commitment to value and to protect childhood.

There can be no greater honour to the memory of a great man than that we collectively agree to do that without further delay and to use what has been offered by Deputy McConalogue as a vehicle to do so.

Minister for Justice and Equality (Deputy Alan Shatter): It is a very good thing that Private Members’ Bills are published from the Opposition side of the House. I hope we will come to a point where Private Members’ Bills can be accepted and developed on Committee Stage. I regret that is not possible with this Bill. I do not want Deputy McConalogue to take personally any

121 Twenty-ninth Amendment of the Constitution 29 June 2011. (No. 3) Bill 2011: Second Stage (Resumed)

[Deputy Alan Shatter.] criticism I now make of the Bill because I am conscious that he was not a Deputy in the previous Daíl. Perhaps he has been walked into this Bill by his colleagues. For a great number of years I wanted to see our adoption laws changed and this issue addressed so that where a child is born to a married couple in circumstances where there is no reasonable possibility of the child being properly cared for by the parents the child would have a real opportunity to be part of a constitutional family by way of adoption and not left in residential or foster care. Many foster parents have children in long-term care with them and would like to adopt those children but cannot do so at present. Deputy McConalogue should not take this personally but I am assuming he has been walked into this or he has published this Bill out of a lack of information and naivety. The Joint Oireachtas Committee on the Constitutional Amendment on Children dealt with this issue and, following two years of deliberations, it made a comprehensive proposal for a children’s rights amendment, which envisaged this issue also being addressed. It was recommended in the committee’s report that, because of concerns that during a referendum campaign the proposal on adoption might be misrep- resented, it was important that all the necessary work would be done to publish a draft Bill, as was done with the publication of the Family Law (Divorce) Bill 1996 as a prelude to the divorce referendum, in order that the public would not only have a constitutional amendment to consider but would know the substance of the legislation that would be enacted should the referendum be successful. Having watched Fianna Faíl in government for 14 years doing absolutely nothing productive to ensure a referendum in this area, having gone through the difficulties of two years of deliberations as a member of a joint Oireachtas committee that produced a consensus on a constitutional amendment, and having watched the then Government ignore the amendment and the former Minister of State with responsibility for children’s affairs — whom on a personal level I liked and whom I have some sympathy for in losing his seat — dancing on the head of a pin trying to explain, having sat through those deliberations and agreed to the publication, why he was unable to bring forward an amendment wording to facilitate a referendum before the election, it is little short of cynical and nauseating that this Bill has been published in this way and in this truncated form, ignoring entirely all the related issues of children’s rights and the recommendation made carefully by the committee on which Deputy O´ Caolaín, the Minister for Children and Youth Affairs and I sat that it was an important part of the architecture of this legislation and it was a crucial necessity in advance of a referendum that the necessary adoption Bill to accompany a referendum proposal be published. That has not happened. The alacrity with which the Fianna Faíl Party, after all those years in government, has produced this measure, which is a short but inadequate extract from the comprehensive children’s rights amendment published, is extraordinary. A commitment given by Fianna Faíl in government to hold a referendum on children’s rights was utterly ignored and never met. A commitment to agree to the holding of a referendum based on the wording of a joint Oireachtas committee was never kept, yet barely three and a half months since the general election, all of a sudden there is an enthusiasm to hold a referendum dealing with two areas that need to be addressed to protect children’s rights and to propose that the referendum be held without the necessary legislation being published in circumstances in which the success of the referendum could be at serious risk. In the absence of the publication of the draft Bill, there is a problem, which we saw in the work we did at the joint Oireachtas committee. I very much appreciate the Deputy was not part and parcel of that work and does not have the insight we had. We dealt with some groups who made representations to the committee on the basis that such a proposal was not being considered in the interests

122 Twenty-ninth Amendment of the Constitution 29 June 2011. (No. 3) Bill 2011: Second Stage (Resumed) of the welfare of children and it was an invidious proposal to remove children from married couples and to break up happy families. It was not such a proposal. It is in the vital interests of the welfare of children that this provision ultimately forms part of a children’s rights amendment but it must do so in circumstances in which the Constitution recognises the importance of the welfare of the child and gives some primacy to children’s best interests. Such a provision is not contained in this proposal either. I appreciate the Deputy may have published this with the best will in the world but it is misconceived, grossly inadequate and it is dangerous because clearly no work has been done on producing the legislation. If the party opposite was serious, I would have been delighted to discover that the draft Bill on adoption was available in the files in the Department of Children and Youth Affairs but it does not exist. If it existed, it could have been published conjunction with this. I regretfully have to conclude by saying I fully support the approach taken by the Minister for Children and Youth Affairs. I invite the Deputy not to put this to a vote later and to withdraw this Bill.

Deputy Brendan Smith: This is my first opportunity to compliment Deputy Fitzgerald on her appointment as Minister for Children and Youth Affairs and I wish her well and to congratulate Deputy Shatter on his appointment as Minister for Justice and Equality, and I also wish him well with those onerous responsibilities. I disagree, however, with his contribution. I compliment my colleague, Deputy McConalogue, who was first elected a number of months ago, on bringing forward this Bill relating to an issue of importance to many people throughout the country. A number of years ago, Deputy Shatter was one of the first Members to have legislation accepted by the then Government. Deputy McCon- alogue is setting a high standard for himself in introducing legislation at this stage. I reject the contention of the Minister for Children and Youth Affairs last night that the Fianna Faíl approach is flawed and piecemeal. Our approach is constructive and it will add incrementally to the necessary progress in ensuring we protect and improve children’s rights. I served as Minister of State with responsibility for children in late 2007 and early 2008 and I brought the proposal to the Government to establish the all-party constitutional committee on children. Together with the late Brian Lenihan, who was then Minister for Justice, Equality and Law Reform, we discussed the parameters of the committee with Deputy O´ Caolaín on behalf of Sinn Feín, Deputy Howlin on behalf of the Labour Party and Deputy Shatter on behalf of Fine Gael. At the time, the Government made a decision to put an exacting timeframe on the work of the committee, which was ably chaired by the former Deputy, Mary O’Rourke, as has been mentioned by many contributors to the debate. The complexity of the issues before the committee was evident from the significant number of written and oral presentations it took from many eminent professionals, people with great knowledge representing non-governmental organisations and the legal profession and other specialists in the area. For the short time I served on the committee, I was taken by the commitment of all the members. It was a complex issue that necessitated detailed study of many conflicting documents and data in preparation for each meeting. The former Deputy, Mary O’Rourke, chaired that committee in an exemplary manner. We agreed at the time that there would be a tight timescale on the basis that the Government wanted all-party agreement on wording in order that it could be put to a referendum. The establishment of that committee in November 2007 arose from a commitment in the then programme for Government to deepen consensus on the Twenty-eight Amend- ment to the Constitution Bill that had been published in March 2007 by the previous Government. The Government’s amendment states, “endorses the action taken by the current Government...” but no actions have been taken other than to defer a commitment to hold this referendum on the same day as the presidential referendum. We are used to pre-election promises becoming null and

123 Twenty-ninth Amendment of the Constitution 29 June 2011. (No. 3) Bill 2011: Second Stage (Resumed)

[Deputy Brendan Smith.] void but, at the end of March, the Taoiseach stated the children’s referendum campaign would run in tandem with the presidential election. Last year and in the early part of this year, members of the Labour Party and Fine Gael spoke eloquently about the need for this referendum and stated it could be held in conjunction with the general election. Subsequently, the Minister for Children and Youth Affairs thought it would be too political to have this particular referendum issue discussed during the course of a presidential election. We all know that presidential elections are less political than general elections, and over the years, the former Minister of State, Barry Andrews, worked on the basis that the referendum proposal would be put alongside a general election. It was thought this time last year that such an election would be held later in 2011, so it is important to put those facts before the House tonight. Deputy McConalogue made a very thoughtful and constructive speech. Deputies Browne, O´ Cuı´v, O´ Fearghaı´l, Collins and Calleary clearly outlined our particular commitment to this very important issue. I heard the Minister for Children and Youth Affairs say last night that children, up to age 18, comprise 1.1 million of our population. That is a great asset and a high proportion of our population, and she rightly stated that we must ensure that we address properly the cares and needs of that particular age cohort, as we do for all age cohorts in the country. Adoption is a major and sensitive issue. As representatives we all had widespread discussions throughout 2010 with prospective parents who were wishing to adopt from Vietnam. We all know the sensitivity of those issues and the difficulties as well. I know there have been visits since then. I have the utmost confidence in the chairperson of the Adoption Authority, Mr. Geoffrey Shannon, who I had the pleasure of recommending to the Government for appointment to that office. He brings a great status, knowledge, expertise and absolute commitment to the work at hand. The chief executive, Ms Liz Canavan, worked with me as an official in the Office of the Minister for Children, and I was delighted to see her being appointed chief executive as well. With the encour- agement of the Minister, they will ensure that the work of the Adoption Authority is done in an exemplary manner with commitment and a clear understanding of the needs of prospective parents as well. In the short time I was in that office, I had the opportunity to attend meetings of the different representative organisations and support groups. I met many families and individuals who were involved in those particular support groups, and I was always struck by the absolute commitment, tenacity and dedication of those people. They were all working in a voluntary capacity to help other prospective parents and to ensure that the needs of children are catered for properly. The wording put forward by Deputy McConalogue has been around for a number of years. It was first proposed in 2007 by Brian Lenihan, our late lamented colleague. It has been endorsed by the all-party committee. This is not a wording that has just been put before the Oireachtas this week. It has been through very thorough scrutiny inside and outside the Oireachtas. It has been scrutinised by non-governmental organisations and so many representative groups who are absolutely committed to its ideals. The approval of this Bill will enable the holding of a referendum on adoption alongside the forthcoming presidential election. I reject the negative comments by the Minister for Justice and Equality in respect of Deputy McConalogue’s Bill. Fianna Fa´il will continue to work in a positive way on all of the issues relating to children’s rights. We firmly believe in progressing these issues on the basis of consensus. As the Minister said last night, we all want to balance the rights of families and children. She referred to the need to do a body of work in preparing proposals which would be published in conjunction with the Bill. Deputy Shatter referred to this as well. Of course people would need to know the parameters of the proposal on which they would be voting. We are well aware of that. In his wide ranging and considerate speech, Deputy McConalogue referred

124 Twenty-ninth Amendment of the Constitution 29 June 2011. (No. 3) Bill 2011: Second Stage (Resumed) to this issue before the Minister for Children and Youth Affairs did so, as she spoke at a later time. He stated clearly that the amendment to the Constitution would empower the Oireachtas to introduce legislation to allow for the adoption of children in long-term care, if it is in their best interests. We know that a White Paper will be required. The Department will have to outline clearly the exact position arising from the passing of the referendum. Deputy McConalogue also referred to the need to identify a threshold before it would be possible for a child in foster care to be adopted. If the Minister for Justice and Equality had the opportunity to listen to the Deputy last night, he would have heard him refer to the fact that the Fianna Faíl proposal would be for a threshold of five years before a child could go forward for adoption, after being placed into care. The Minister for Children and Youth Affairs referred to the need to decide between whether the threshold should be three, five or seven years. She was not being prescriptive and all of us agree that the one year period in Britain would not be satisfactory, which is why we in Fianna Faíl put forward the proposal of five years. I understand very clearly that the former Minister of State, Barry Andrews, did much preparatory work on the necessary supporting documentation, to which the Minister for Children and Youth Affairs referred last night. He did this last year, following the recommendations of the all-party Oireachtas committee. We understand that three proposals for referendum will be put to the people along with the presidential elections in October or November. They refer to the Abbeylara judgment, the whistleblower’s legislation and the rate of pay of the Judiciary. No preparatory documentation or draft Bill has been seen by any Member in respect of those referendum proposals, so it is absolutely wrong to say that there is not time to prepare the necessary supporting documentation for this Bill which we are putting before the House tonight. This issue has been discussed in great detail over many years. We all know that it initially arose from the good work of Mrs. Justice Catherine McGuinness in the area of children’s rights. The late Brian Lenihan then chaired the All-Party Committee on the Constitution, which also did excellent work. Subsequently, the proposed 28th amendment was put by the then Government in the early part of 2007. Following the election in May 2007, the new programme for Government stated that an all-party Oireachtas committee would be established to deepen consensus on the wording. I was Minister of State with responsibility for children at this time. I put that proposal to the Government and the then Taoiseach appointed former Deputy Mary O’Rourke as chairperson of the committee. The Minister for Children and Youth Affairs, Deputy Fitzgerald, Deputy O´ Caolaín, myself, Deputy O´ Fearghaı´l and many others were on that committee. All members of the committee were absolutely committed to working in the best interests of the children of this country. I am very disappointed that the Government is not taking the opportunity to progress this particular element of that all-party work for October or November. I am not being divisive. I am being positive and progressive. We are bringing forward this Private Members’ Bill to run a referendum on adoption alongside the presidential election. The Bill will allow for the adoption of hundreds of children who are currently in long-term care and who cannot be adopted because of rules arising from the current position of the family in the Constitution. Fianna Faíl has taken the step of introducing this Bill in response to the U-turn by this Government on its commitment to run the proposed children’s rights referendum alongside the presidential election. Last year, Fine Gael put forward the idea that the referendum could be held alongside the general election. During the election campaign and following the election, the Fine Gael Party indicated that this would be held on the same day as the presidential election this year. Late last year, Fine Gael and Labour also suggested that the referendum could be held the same day as the general election. As leader of the Labour Party in Opposition, the Tańaiste said the following late last year.

125 Twenty-ninth Amendment of the Constitution 29 June 2011. (No. 3) Bill 2011: Second Stage (Resumed)

[Deputy Brendan Smith.]

In the past, various referenda were held on the same day as general elections. A general election is to take place some time in the new year. Is it intended that the referendum on children’s rights will take place on the same day as the general election?

Shortly after Deputy Kenny was appointed Taoiseach, he said the following: It should be possible to get agreement on a formula of words that could be put to the people on the same date as the presidential election. That was a post-election committment. The Taoiseach made that commitment after his election as Taoiseach. However earlier this month, the Minister for Children and Youth Affairs, Deputy Frances Fitzgerald stated:

“...the referendum will not take place on the same day as the presidential election. There is concern that to do so would unnecessarily and unhelpfully politicise children’s rights...”

We have seen a major change in the Fine Gael and Labour Party commitments on this issue. I am disappointed because I am quite sure as Deputy E´ amon O´ Cuı´v pointed out last night, that the overall children’s rights proposal and referendum is a complex issue and no one will take away from that. I note that the previous Attorney General and the then Government gave detailed consideration to the proposal that was put forward by the Oireachtas all-party committee. This is one component that could easily gain the support of the electorate in a referendum. I know of the Minister, Deputy Fitzgerald’s work and her commitment to this area. Even if our proposal is voted down, we could not accept the Government amendment. The Government amendment commends the Government on its actions to date. The Government’s actions to date have been to renege on the commitment it made pre and post election. That is the reason we are putting forward a proposal tonight and I can reassure the Minister and Deputy O´ Caola´in who raised this issue last night that we will continue to work constructively with all parties in this House on furthering and improving the interests of children.

Cuireadh an leasu´.

Amendment put:

The Da´il divided: Ta´, 90; Nı´l, 39.

Ta´

Bannon, James. Daly, Jim. Breen, Pat. Deasy, John. Broughan, Thomas P. Deenihan, Jimmy. Bruton, Richard. Deering, Pat. Buttimer, Jerry. Doherty, Regina. Byrne, Catherine. Donohoe, Paschal. Byrne, Eric. Dowds, Robert. Cannon, Ciara´n. Doyle, Andrew. Carey, Joe. Durkan, Bernard J. Coffey, Paudie. Farrell, Alan. Collins, A´ ine. Feighan, Frank. Conaghan, Michael. Ferris, Anne. Conlan, Sea´n. Fitzgerald, Frances. Connaughton, Paul J. Fitzpatrick, Peter. Conway, Ciara. Flanagan, Charles. Coonan, Noel. Flanagan, Terence. Corcoran Kennedy, Marcella. Gilmore, Eamon. Costello, Joe. Griffin, Brendan. Coveney, Simon. Hannigan, Dominic. Creed, Michael. Harrington, Noel. 126 Twenty-ninth Amendment of the Constitution 29 June 2011. (No. 3) Bill 2011: Second Stage (Resumed)

Ta´—continued

Harris, Simon. Noonan, Michael. Hayes, Tom. O´ Rıórdaín, Aodhań. Heydon, Martin. O’Donnell, Kieran. Hogan, Phil. O’Donovan, Patrick. Humphreys, Heather. O’Dowd, Fergus. Humphreys, Kevin. O’Mahony, John. Keating, Derek. O’Sullivan, Jan. Keaveney, Colm. Penrose, Willie. Kehoe, Paul. Perry, John. Phelan, Ann. Kenny, Seań. Phelan, John Paul. Kyne, Sean. Ring, Michael. Lawlor, Anthony. Ryan, Brendan. Lyons, John. Shatter, Alan. Maloney, Eamonn. Sherlock, Sean. Mathews, Peter. Shortall, Roísıń. McCarthy, Michael. Spring, Arthur. McFadden, Nicky. Stagg, Emmet. McHugh, Joe. Stanton, David. McLoughlin, Tony. Timmins, Billy. McNamara, Michael. Tuffy, Joanna. Mulherin, Michelle. Twomey, Liam. Murphy, Dara. Varadkar, Leo. Nash, Gerald. Wall, Jack. Naughten, Denis. White, Alex. Neville, Dan.

Nı´l

Adams, Gerry. McGrath, Finian. Browne, John. McGrath, Mattie. Calleary, Dara. McGrath, Michael. Collins, Niall. McGuinness, John. Colreavy, Michael. McLellan, Sandra. Cowen, Barry. Moynihan, Michael. Crowe, Seań. Murphy, Catherine. Daly, Clare. O´ Caolaín, Caoimhghıń. Doherty, Pearse. O´ Cuı´v, E´ amon. Donnelly, Stephen. O´ Fearghaı´l, Seań. Ellis, Dessie. O´ Snodaigh, Aengus. Ferris, Martin. O’Brien, Jonathan. Fleming, Tom. O’Dea, Willie. Grealish, Noel. Pringle, Thomas. Healy, Seamus. Ross, Shane. Healy-Rae, Michael. Smith, Brendan. Higgins, Joe. Toíbıń, Peadar. Kirk, Seamus. Troy, Robert. Mac Lochlainn, Pa´draig. Wallace, Mick. McConalogue, Charlie.

Tellers: Ta´, Deputies Emmet Stagg and Paul Kehoe; Nı´l, Deputies Aengus O´ Snodaigh and Sea´n O´ Fearghaı´l.

Amendment declared carried.

Faisne´iseadh go rabhthas tar e´is glacadh leis an leasu´.

Amendment declared carried.

Faisneíseadh gur cuireadh agus aontaıódh an ruń, mar a leasaıódh e´.

Motion, as amended, put and declared carried.

127 Adjournment 29 June 2011. Debate

Adjournment Debate

————

Arts Funding Deputy Marcella Corcoran Kennedy: This motion arises from a recent briefing for Oireachtas Members held by the Arts Council, the meet and greet organised by the National Campaign for the Arts and from the recent annual Theatre Forum conference held in NUIG, at which the Minister for Arts, Heritage and the Gaeltacht was guest speaker. The Minister is personally committed to the arts and is involved in the cultural life of Listowel, an area that produced those world famous writers, John B. Keane and Bryan McMahon. Even so, it is important to place on record the Government’s commitment to maintain existing funding levels for our cultural institutions, including the National Library and National Museum, the Arts Council, the Irish Film Board and Culture Ireland. The Minister will agree it is in our best interest as a nation to encourage, develop and stimulate public interest in all aspects of the arts, social and cultural affairs despite our current economic challenges. To sustain a vibrant cultural life, it is essential to promote the knowledge, appreciation and practice of the arts; it is not an isolated activity but reaches into most aspects of the lives of our people. In this capacity, the work of the Arts Council gets results in annually supporting 2,000 jobs directly and 3,000 jobs indirectly. The wider sector supports 27,000 jobs and contributes €382 million in taxes. The wider creative industry contributes €5.5 billion to the economy and supports 96,000 jobs. It is clear that funding the arts is an investment not an indulgence. It is good for our society, our international reputation and our economy. Because we in Ireland have an innate talent in the arts, be it literary, performance or visual, we somehow take that talent for granted. When our economy was performing well, the then Govern- ment never achieved the figure of €100 million in funding, which was the aspiration of the Arts Council. By 2007, a figure of €80 million was provided but by 2010 the figure was down to €68.6 million. The real effect of this cut has been the loss of jobs in the arts world. I am glad to note that Culture Ireland and the Irish Film Board, while also sustaining cuts over the past three years, continue to deliver quality experiences to our national and overseas audiences, providing significant employment in the process. In terms of our quality of life, we can all relate to wonderful arts experiences, such as poetry, music, film, that stimulate us and enhance our lives. Our schools have a key role to play in this area as they can provide equal access for their students. We have not fully realised the potential that regular participation in arts activities by young people has in increasing their self esteem and confidence and in reducing anti-social behaviour. In Laois-Offaly increasing numbers of young people are dying by suicide and I strongly believe that their participation in arts projects would help them cope with the challenges of modern life. If we look closer again we can find wonderful projects across the country in which elderly people in community nursing and day care units are having quality arts experiences. I urge the Minister to take a look at the Anam Beo project based in Offaly. It is run on a tiny budget and involves professional artists working with older and disabled people to teach them to paint and make short films among other things. For many, it is the first time they participated in such activity. To quote one participant who is now 88 years of age, “I would be dead if I didn’t have this to look forward to every week”. Many other community groups and development agencies use the arts as a tool for engaging with disadvantaged groups. The arts are non-judgemental and accepting of all abilities and back- grounds — an important factor in breaking down barriers. In the Laois-Offaly constituency established venues such as Birr Theatre and Arts Centre and the Dunamaise Theatre depend on public funding both from the Arts Council and local authorities to continue to provide for their communi-

128 Adjournment 29 June 2011. Debate ties. I look forward also to the planned Tullamore Arts Centre being developed to further strengthen the arts infrastructure. Sculpture in the Parklands is another shining example of how local partnerships can produce a magnificent resource in cutaway bogs for locals and tourists alike. On an international level artists of all disciplines have won Booker prizes, Grammy awards, Emmy awards, Nobel prizes, Oscars and Tony awards. To quote the Arts Council, “if the arts were the Olympics Ireland would top the medal table”. Despite those awards, the average income for an artist in 2008 was a modest €14,676. The arts experience which artists create play a vital role in making this country a magnet for 5.5 million visitors a year. According to Fa´ilte Ireland, 80% of foreign tourists cite culture and heritage as a motivating factor in choosing this country as a holiday destination. The 178 arts festivals currently funded by the Arts Council are also a significant part of our tourism product. In considering the arts one finds that they are intertwined across many Departments — Education and Skills, Transport, Tourism and Sport, Health and Environment, Community and Local Government to mention a few. I hope that some structure could be put in place to bring all of that together so that we can get an accurate picture of the impact of the work each Department plays in cultural life. Unfortunately, funding for arts and culture has declined from €206 million in 2007 to €153.2 million in 2010. That is a significant drop. Despite that, we must acknowledge that arts and culture are key to quality of life, international reputation, tourism product and, significantly in the current climate, the economy. I will conclude by quoting the National Campaign For The Arts core message:

We believe in a society that values creativity, imagination and expression. We believe the arts generate growth and tourism. We believe the arts enhance our reputation. We believe the arts enrich our lives. We believe in the value of the arts.

We must endeavour to sustain what we already have.

Minister for Arts, Heritage and the Gaeltacht (Deputy Jimmy Deenihan): I thank Deputy Mar- cella Corcoran Kennedy for raising the matter on the Adjournment. I am very much aware of her commitment to and interest in the development of the arts in County Offaly. As Minister responsible for the arts and culture sectors I am acutely aware of the necessity to secure the best possible funding provisions for those sectors. I assure the Deputy that I am passionately committed to working towards that objective. In the debate relating to the implementation of the programme for Government, I explained that it is the Government’s intention to make the arts and culture part of our “primary script”. It will become a central essential part of the narrative about the character of a new, different, changed and better Ireland. It will therefore no longer be regarded as a discretionary activity. To survive, grow and prosper as a country, we must look to the talent and ability of the people. The ability to innovate, think afresh and to be creative must be nurtured and encouraged. I am convinced that vitality in arts and culture induces vitality in a country. That vitality is realised through the process of stimulation through works of art — such as in music, plays, books and films — and design, such as in architecture and in crafts. All facilitate a country’s capacity to be reflective, interested, and bold. Recognition of the role of the arts and cultural activity can be seen in the investments made in the sector. In the five year period 2007-11, a total of €865 million was spent on arts, culture and film as well as an additional €54 million on the National Gallery. I am fully aware of the difficulties facing all of those involved in those areas and the tremendous work they have done in maximising their available resources. Through the vital work of the Arts Council, the Film Board and Culture Ireland the Government continues to work to support these efforts and to maintain employment levels. We will also continue to develop the priceless contribution of our cultural institutions to the overall well-being of our community.

129 Adjournment 29 June 2011. Debate

[Deputy Jimmy Deenihan.] It is interesting to note that our national cultural institutions continue to attract large numbers of visitors and are a vital component in Ireland’s cultural tourism product In 2010, more than 3.5 million people visited cultural institutions funded by my Department. The National Museum alone attracted almost 1 million visitors across its four sites in 2010, putting it on a par with many other notable international galleries and museums. Similarly, the 2010 attendance figures at the National Gallery of Ireland place it ahead of many distinguished international comparators, for example the Serpentine Gallery in London, the Tate in Liverpool and MoMA in San Francisco. The Irish Museum of Modern Art, IMMA, celebrates its 20th anniversary this year and its reputation, both nationally and internationally, has never been higher, with IMMA ranking in the top 20 galleries of its type in Europe. Visitor numbers to the cultural institutions for the first quarter of 2011 continue to grow, as evidenced by the popular and critical response to exhibitions such as The Moderns, and the Frida Kahlo and Diego Rivera show at IMMA; the very positive response to the newly refurbished Treasury exhibition featuring the Fadden Moore psalter at the National Museum and the popularity of the Masterpieces exhibition from the National Gallery’s collection. Investments in cultural institutions continues to improve and enhance the facilities at the National Museum, IMMA and the National Gallery in the areas of storage, securing and improving the fabric of the buildings and improving the visitor experience. Such investments, while having as their primary function the maintenance of our cultural heritage for its own sake, play an incalculable role in attracting millions of visitors to our shores. The direct benefits that accrue to the country by way of cultural tourism represent a significant return on the investment in cultural institutions and cultural infrastructure generally. We are aware that culture is cited by the majority of visitors to Ireland as a key motivator in choosing this country as a destination. Studies have shown that the list of top visitor attractions is dominated by natural and built heritage and in addition, festivals, musical and other events attract major numbers of attendees. Tourists who engage in cultural pursuits while in this country are higher than average spenders. A total of 73,000 jobs are dependent on cultural tourism, 3.4% of the total workforce. Every tool at our disposal is being used to maximise the potential of the investments made by all those who are involved in both working in or promoting those sectors. We are conscious not only of the role of the arts, culture and creative industries in providing vital opportunities for self-expression and participation, but also of their economic potential. We are determined to do our best to provide the conditions in which creative expression can flourish and are committed to enhancing access to the arts for people of all ages and income levels. Through the various programmes, initiatives and supports offered both my Department and the agencies within my area, many such opportunities are available to develop and enhance robust employment prospects. Under the ACCESS capital investment scheme operated by my Depart- ment, more than 40 infrastructural projects are up and running across the country 9o’clock providing arts and cultural related employment channels. Arts administrations, artists, plus operators and occupants of cultural centres, and music venues are able to avail of and earn a living from these initiatives. With the continued support of the community and the public, these have become thriving social hubs in their localities and continue to make an important contribution to sustainable economic recovery. Indeed, in the programme for Government, it is our intention, for example, to encourage the Arts Council to continue to dedicate resources to touring, explore philanthropic, sponsorship or endowment fund opportunities and promote genealogical tourism. The programme also states that the Government would encourage greater co-operation between local authorities to promote the arts and develop cultural tourism. In this context, since taking office I have begun an engagement with the local authority and community arts leaders in Kerry to develop a pilot template integrated strategy for arts, culture and creative industries at local level. This will lead to co-ordinated delivery

130 Adjournment 29 June 2011. Debate of an enhanced and inclusive arts and culture experience for the public at large. It will be used as a template for local authorities across the State. It is my intention that at the end of this Govern- ment’s term we will be able to report that the arts and culture sectors have grown and flourished.

Irish Red Cross Deputy Aodha´nO´ R´ıorda´in: I appreciate the opportunity to raise this matter. I first refer to the commitment given in the programme for Government, which states: “We will initiate a detailed legal review of the basis, structures and governance of the Red Cross in Ireland to improve its functioning in the light of changing circumstances.” Serious concerns and questions have been raised about alleged abuses of power, misgovernance and misuse of financial resources in the Irish Red Cross Society for over 20 years, yet the State unquestioningly gives it an annual grant of nearly €1 million. The OPW also provides the IRC with its head office at 16 Merrion Square effectively free of charge. In comparison, the budget of Irish Aid has been cut by 8% since late 2008, while the IRC has suffered no cut whatsoever. Concerns about misuse of power and financial irregularities in the IRC have been raised by staff, board members, media and politicians for over 20 years. There was a surge in revelations in 2009 and 2010 following an intensive media campaign and the decision by Noel Wardick, former head of the international department at the IRC, to go public with his concerns. Mr. Wardick spent four years trying to have the matters addressed internally — all, unfortunately, to no avail. Mr. Wardick was fired for gross misconduct in November 2010 under the charge of breaking his confidentiality agreement. This is yet another example of an employee reporting serious concerns in good faith and in the public interest and suffering serious employer reprisal. Seven months later, Mr. Wardick remains unemployed. Transparency International Ireland has called for whistleblowing legislation to include provisions allowing for criminal prosecutions to be taken against employers who take retaliatory action against whistleblowers who report the truth in good faith. It would have been easier for Mr. Wardick to remain silent. In the past, the Government has always taken a hands-off approach to questions raised about the integrity of IRC actions, despite appointing its chairman and 16 members of its central council and despite the presence of a Department of Defence official on the IRC governing executive committee. It appears that Governments have been happy to involve themselves in absolutely every aspect of IRC operations except those relating to governance reform, financial irregularities and abuse of power. The Minster will be aware of the scandal regarding the undeclared Tipperary bank account which was found to have €162,000 intended for the victims of the 2004 Asian tsunami lying in it for over three years. The organisation’s vice chairman was a signatory on the account. The matter was swept under the carpet despite the resignation of the then honorary secretary in protest over the society’s failure to investigate the matter. She formally wrote to the then Minister for Defence, Deputy Willie O’Dea, and was effectively ignored. An internal investigation was carried out in late 2010 but despite the identification of major breaches of financial policy and certain actions deemed as “a threat to IRC governance”, no one was held to account or blamed. Nothing has changed. The signatory on the aforementioned account, the society’s vice chairman, Tony Lawlor, was reappointed as vice chairman in May 2011 for the 21st year in a row. The treasurer, Ted Noonan, who failed to investigate the matter at the time, was re-appointed in May this year to the board for the tenth year running. The IRC made substantial operating losses in 2008 and 2009. It broke even in 2010 only because more than €600,000 intended for Haiti was recorded as domestic income. This is a practice that has apparently gone on for years within the IRC and is morally reprehensible. In reality, the society made a large operational loss in 2010, yet it still managed to pay its secretary general €165,000 and spend €140,000 on legal fees in trying to silence Mr. Wardick, including legal suits against Google and UPC.

131 Adjournment 29 June 2011. Debate

[Deputy Aodhán Ó Ríordáin.]

Any independent examination of media reports, industrial relations hearings and parliamentary questions over the past 20 years will bear out the fact that the IRC is a highly dysfunctional organisation with real and serious questions to answer about its financial affairs. Since 2007, the IRC has had four secretaries general, which is a clear sign of the problems that remain unresolved in the society. The so-called new IRC constitution is also deeply flawed and is designed to ensure those in power remain in power for many years to come. I believe there was minimal organisation-wide consultation on its drafting and it must not be approved by the Government or enshrined in legislation without significant amendment. The Minister has said he is in consultation with the Office of the Attorney General with regard to the legal review, as outlined in the programme for Government. There is a real worry that the Minister will use the new legislation to enshrine the new IRC constitution into law, which will in effect secure the power bases of the long-serving, discredited incumbents, which is exactly what they are hoping for. The IRC is not obliged to report separately, in financial or narrative form, on its €1 million Government grant. It appears as a one-line income and expenditure item in its audited accounts. The Government basically gives the grant annually to the IRC and thereafter washes its hands of its responsibilities. Based on the evidence to date, all the information now in the public domain and the real concerns that exist inside and outside this House, the Minister must seriously consider withholding the annual grant of €1 million and review its donation of free property to the IRC for use as its headquarters until such time as a comprehensive independent investigation into the society takes place and is concluded.

Minister for Defence (Deputy Alan Shatter): I thank the Deputy for raising this important matter. As the Deputy mentioned, the Irish Red Cross Society is the recipient of an annual grant-in-aid allocated from the Department of Defence Vote. The following are details of the grants paid to the society from the Defence Vote over the past ten years. In 2002 the grant was €809,000; in 2003 it was €821,000; in 2004 it was €866,000; in 2005 it was €880,000; in 2006 it increased to €951,000, and up to and including this year it has remained at that level. The grant to be paid in 2012 is being considered as part of the review of departmental spending currently being undertaken. The grant from the Defence Vote is paid to the society each year in quarterly amounts and includes a sum of €130,000 which represents the Government’s annual contribution to the Inter- national Committee of the Red Cross. The balance of the grant goes towards the salary and administration costs of running the headquarters of the Irish society. In addition, the society also pays, from its own resources, an affiliation fee to the International Federation of Red Cross and Red Crescent Societies, which this year is expected to amount to approximately €160,000. Each year, the society publishes its independently audited annual accounts and nothing has come to light to indicate that the grant-in-aid has not been properly expended. As the society is a body corporate which, in accordance with the legislation, is responsible for the handling of its own internal affairs, it is not a matter for my Department to be involved in the day-to-day running of the society. However, in light of the claims of maladministration within the society, I asked for assurances from the chairman of the society regarding the use to which the funds that are granted annually from the Vote of the Department of Defence are put. Comprehensive and satisfactory answers have been provided by the chairman, which showed that the total cost of running the head office of the society in 2010 amounted to just under €1.3 million. I am of the view that organisations in receipt of funding from the Exchequer should publish detailed accounts that provide transparency on how such funds are used.

Such organisations should also publish their annual reports on time. It is not satisfactory that the annual reports for 2009 and 2010 remain yet to be published. The programme for Government

132 Adjournment 29 June 2011. Debate provides for the initiation of a detailed legal review of the basis, structures and governance of the Red Cross in Ireland to improve its functioning in light of changing circumstances. Proposals for reform of the governance of the Irish Red Cross Society initially arose from a resolution that was passed in November 2007 by the council of delegates of the International Federation of Red Cross and Red Crescent Societies. It urged all national societies to examine and update their statutes, rules and related legal texts by 2010.

A working group to propose changes in the governance of the Irish society was established by the Irish Red Cross in 2008. Its chairman presented the findings, which included changes recommended by the international federation, to the central council of the Irish Red Cross Society at a meeting held in November 2009. The working group’s report was then submitted to the Department of Defence early last year.

Following the Department’s review of these proposals and the related legislation, a draft order that would amend the Irish Red Cross ministerial order 1939 was submitted to the Office of the Attorney General. The 1939 order sets out the basis upon which the society is governed and was made pursuant to the Red Cross Act 1938. Discussions with the Office of the Attorney General on the extent of changes that can be made to the 1939 order are continuing. Whatever changes are made to it, a comprehensive review of all Red Cross legislation, and in particular the primary legislation, will then be commenced by my Department.

In this regard, while I am conscious of the importance attaching to the independence of the society, I have been in contact with the chairman of the Irish Red Cross recently about the society’s corporate governance arrangements. On 8 June 2011, he advised me that work is well under way with regard to corporate governance changes. Initiatives introduced have included statement of directors’ roles, responsibilities and accountabilities; a signed code of conduct for directors and management; a strategic planning framework; a register of organisational risks; an induction process for new directors; the establishment of an independent audit committee with external participation; performance evaluation for senior management and plans for board evaluation; a statement of fund-raising principles and behavioural code; and analysis and reporting of non-compliant branch financial returns. Work is well advanced in drafting financial policies relating to reserves management, borrowing capital expenditure, procurement and investment.

While some progress has been made by the society in this regard, it is crucial it makes further substantial progress to ensure its corporate governance structures comply with the highest standards. For instance, it is not conducive to good corporate governance that any individual should serve indefinitely on the central council, the executive committee or in the same appointment. I made a case on this through correspondence to the society. As a beneficiary of State funding, both directly and indirectly, I have urged the society to make further substantial progress in this area to ensure its corporate governance standards meet what would be regarded as acceptable for an organisation of its calibre.

In correspondence with the society on 16 May 2011, I expressed the view that as a matter of principle I regarded it as unhealthy for any organisation to have individuals serving at leadership level in excess of 12 years in total and in any one position for longer than six years. With this in mind, I asked the society whether a more comprehensive reform of the corporate governance arrangements than previously proposed might be considered. The chairman, in response, explained the society is making progress in developing a much more robust corporate governance system.

The issue of turnover and rotation at leadership levels was raised at the recent central council meeting. The chairman informed me agreement was reached on a mandatory three-year break or one full-term break for executive committee members in circumstances where a member may have previously served for two full terms. This agreement occurred subsequent to correspondence with the society in which I engaged.

133 Adjournment 29 June 2011. Debate

I have arranged to meet with the chairman of the society presently. An overriding principle must be to ensure that any legislative changes made have the full support of the international federation and that the society’s management framework requires the full and required standards acceptable in the 21st century.

Ambulance Service Deputy Noel Harrington: I thank the Minister for Health for his work to date trying to maintain health services after inheriting a funding debacle from the previous Administration. I am sure every local health service across the country will be deemed as urgent and a priority. However, ambulance provision in west Cork and the services provided at Bantry hospital are pressing issues for my constituents in Cork South-West. It is proposed to reduce ambulance cover in south-west Cork from four ambulance stations to two on a rotating basis and stop night cover. While it may appear as a cost-saving exercise on a spreadsheet, anyone familiar with the geography of Cork South-West will realise the proposed cover is not adequate and will jeopardise the health of many. In the western side of this constituency, the general hospital at Bantry is up to 50 miles away from some people in its catchment area, not including those on the offshore islands. A journey for some of these people to the accident and emergency department at Cork University Hospital can be far as a 110 miles. To that end, a good ambulance service is critical and is in effect our accident and emergency department. If this service is reduced, lives will be put at risk particularly those in the peripheral areas of south-west Cork. The existing service is commendable with the dedicated teams of medical technicians working long hours, sometimes travelling from Castletownbere to Cork all in an evening. Emergency services in the area are complemented by the Royal National Lifeboat Institution, retained fire services and the Coast Guard. A fundamental link to these and Cork University Hospital is the ambulance service. The Health Service Executive claimed there is a safety issue involved in the provision of ambulance cover, quoting the HIQA seven-minute response to a call threshold. In fact, the HSE is quite prepared to replace the ambulance service with a first-responder service to appease HIQA. Unfortunately, such a service is not adequate for a road traffic, cardiac or stroke victim who needs to be taken to a hospital for further treatment within an hour. There is not a snowball’s chance in hell an ambulance will leave Clonakilty, or even Bantry, to pick up a cardiac arrest patient in Castletownbere and get back to Cork University Hospital in less than three hours. That is assuming the ambulance will be available in the first instance. This reduction in ambulance cover in south-west Cork seems to be a spreadsheet exercise. Taking into account the geographical layout of the area, I would warn any decision-maker not to interfere with the area’s ambulance service. As already stated, it is our accident and emergency service and we are more dependent on it than is the case in any other region. Those involved with the ambulance service work extraordinarily hard and I am of the view that the service deserves to be enhanced rather than diminished. I am also concerned with regard to the doubts surrounding the emergency services provided at Bantry Hospital. Again, the management, clinicians and staff at this hospital work extremely hard. All the services provided there have been enhanced. Obviously, cancer care and other specialist services are not on offer at the hospital and local people are quite prepared to travel the 100 or 110 miles to Cork University Hospital in order to access such services. All we are seeking is that emergency services continue to be provided at Bantry. We are not asking that they be provided at a location two or three miles away. Some of us are only seeking that the ambulance service be provided within a 50-mile radius. However, we cannot countenance a situation where we will have a reduced ambulance service and where people will be obliged to present at Cork University Hospital some 110 miles away. I strongly urge the Minister for Health to reconsider any proposals to reduce the services on offer at Bantry Hospital or to downgrade the ambulance service in the Cork South-West constituency.

134 Adjournment 29 June 2011. Debate

Deputy Jimmy Deenihan: I am replying on behalf of the Minister for Health. The Minister sends his apologies that he cannot be present. The Minister is happy the Deputy has raised these important and interrelated issues. As a general principle, the Government has made it clear that it wants a health system which is safe, high quality and affordable. The Minister for Health does not wish to see a diminution in any level of service. However, the country is facing into an unprecedented economic crisis and the HSE must live within its budget and prioritise its services. The Minister for Health has made clear on many occasions that local hospitals can and should be a vibrant element of local health services, providing treatment and care at the appropriate level of complexity to the patients in their areas. However, the care provided must be safe and must not put patients at risk. The Health Information and Quality Authority, HIQA, has set a framework for the type of services that can safely be provided in smaller hospitals and in respect of the structures required for good governance and accountability within our hospitals. This has been set out in the reports on Ennis and, subsequently, Mallow hospitals. Pre-hospital emergency care is critical to the successful implementation of the HIQA recommendations. The national ambulance service, NAS, is working to develop the management and integration of its services. This includes a reduction to two ambulance control centres nationally, with appropriate technology, a clinical lead for pre-hospital care, performance indicators for pre- hospital care and standard national criteria for non-emergency patient transport. In particular, since January 2011, the NAS has been working towards improvements in emergency response times, as measured against HIQA’s response times and quality standards. There are 18 ambulance stations in Cork and Kerry and these have approximately 200 staff. It is one of only two regions still operating on-call arrangements for out-of-hours ambulance services where staff are at home and are summoned to answer calls. On-call arrangements are gradually being replaced with proper on-duty rostering to ensure that vehicles are dispatched as quickly as possible. This clearly improves efficiency and means that a quicker and safer service can be provided to patients. The HSE has already been able to greatly increase the level of on duty rostering in Cork city and Killarney. There is now no on-call in any station at weekends, the period of highest activity. The changes involve altering work practices and these must be negotiated. The on-call service is now only provided from Monday to Thursday and has been reduced from 44 hours to less than 16 hours per week per individual. The remaining on-call commitment is under discussion at the Labour Relations Commission, LRC. However, it is important that staff work with management to deliver the changes that are required and to overcome any blockages in implementing these changes, which are for the benefits of both patients and taxpayers. The NAS is, under the auspices of the LRC, developing a plan that includes rapid response cars, staffed by advanced paramedics and emergency paramedic ambulances. Rapid response cars are already in place in west Cork and are to be deployed at various times in Youghal, Millstreet, Skibbereen, Cahirciveen and Castletownbere. Rapid response vehicles staffed by ambulance staff on duty, rather than on call, will improve the immediate response time compared to on-call arrangements. In June, the HSE and NAS agreed that the new cars and ambulances model will be implemented on a phased basis — the first phase will not affect the west Cork service; the NAS will set out the priority for stations to move to the new model; following implementation, reviews will be held under the LRC; and implementation in west Cork and south Kerry will not proceed until this review is completed. The national ambulance service has made a major investment in the education and training of approximately 200 advanced paramedics. It is essential that these personnel be deployed in an effective manner. The HSE south’s plan to develop an integrated university hospital network in Cork and Kerry, which was published in 2010, recognises the vital service that Bantry Hospital provides to the people of west Cork. The hospital will continue to provide consultant-delivered,

135 Adjournment 29 June 2011. Debate

[Deputy Jimmy Deenihan.] selected acute medicine, geriatric medicine and day surgery. It will also provide outreach specialist services for initial assessment and post-treatment follow up care in areas such as gynaecology, rheumatology, orthopaedics, urology and gastroenterology. There will be at least five consultant physicians based at Bantry for a viable consultant duty roster as part in the regional hospital network. Its location, activity and integration with local primary and community care services will make it an important teaching site for medical and other health profession students from University College Cork, UCC. The Minister and the HSE recognise the importance of Bantry General Hospital and the contribution it has made, and will continue to make, to the provision of hospital services in the region.

Sports Capital Programme Deputy Noel Grealish: I thank the Ceann Comhairle for allowing me to raise this matter. I also thank the Minister of State with responsibility for sport for coming before the House to take it. I congratulate him on his county’s good win last Sunday. Unfortunately, it was against my county. I hope we will put matters right next year. In the past the sports capital programme provided essential funding to sporting clubs and organisations throughout the country. I have seen evidence of this at my local GAA club in Carnmore, which has developed three new playing pitches and a hurling wall and which has considerably improved and upgraded facilities as a result of the provision of national lottery funding. Following these development works there has been much better participation in sport by people of all ages in the community. Involvement in sport has far-reaching and positive consequences for society as a whole. It is an important social outlet which improves physical and mental health. It also encourages personal development, assists in addressing the growing problem of obesity in this country and, in the context of rising unemployment, provides important structures to help prevent social exclusion, particularly among young people. The priority given to funding clubs in areas of social disadvantage has brought about even greater benefits in the context of a reduction in antisocial behaviour and preventing young people from drifting into a life of crime and drug addiction. In many of the areas, there was little prospect of clubs being in a position to raise sufficient funds by acting alone. Assistance from the national lottery programme was vital to these clubs. Sport has a remarkable ability to make us all feel good. In the current economic climate, that is extremely important. We witnessed the benefits of this recently when Rory McIlroy won the US Open. In many instances, and particularly in rural areas, local sports clubs foster a sense of identity and are closely intertwined with entire communities. Since the introduction of the sports capital programme, over 7,400 projects have benefited from funding of approximately €738 million. This has helped to transform clubs, from the smallest to the largest, through the provision of improved facilities. The funding has directly and indirectly benefited every household in Ireland and its value cannot be underestimated. Since the sports capital programme closed in 2008, the cost of building work, materials and labour have been substantially reduced. I am of the view that there could be no better time than now to reopen the programme. While I acknowledge that we are still in difficult economic times, if the programme could be reopened it could provide a stimulus to local economies. In addition, it would offer much better value for money than was the case in the past. The advantages for reopening the programme for social, commercial and economic reasons are numerous. For example, there would be a reduction in unemployment because tradesmen who are currently without a job could find work in their localities. Sales of materials would provide a boost to the local economy and improved facilities would result in increased participation in sport and social interaction within our communities.

136 Adjournment 29 June 2011. Debate

Funding larger scale projects would also provide a boost to the tourism industry, as visitors from Europe travel to Ireland to support their local teams in matches and to partake in the various sports for which Ireland is renowned. Connacht, our area, has qualified for the rugby Heineken Cup and will benefit in that regard. Clarinbridge, a local club which has received significant lottery funding also won the all-Ireland this year. During the 12 years the sports capital programme has been in operation, sporting clubs have been able to complete capital projects they might not otherwise have had the resources to undertake. These same clubs cannot raise funds locally for any further development necessary to build on the vital role sport plays in our society. Will the Minister of State outline where the funds which are being raised through the national lottery, which were previously allocated to the sports capital programme, will now be allocated? I call on the Minister of State to give a commitment that the scheme will be reintroduced in 2011.

Minister of State at the Department of Arts, Heritage and the Gaeltacht (Deputy Michael Ring): I thank Deputy Grealish for raising this issue. He is correct, there is one item missing from Mayo, the Sam Maguire Cup, but we have the Taoiseach and the Minister with responsibility for sport and we are working on that. Under the sports capital programme, funding is allocated to sporting and to voluntary and community organisations at local, regional and national level throughout the country. Since 1998, the Department has allocated almost €740 million in more than 7,400 separate allocations. This funding has transformed the level of sports facilities throughout the country. Some €33 million has been provided in the Department’s Vote for 2011 to meet payments in respect of projects which have been allocated funding under the sports capital programme, and the subhead is part-funded from the proceeds of the national lottery. While there has been no new round of the programme advertised since 2008, it is business as usual for grantees previously allocated funding, and the Department continues to make payments to such grantees. Over 1,000 payments were made last year to projects which were being developed across the country. Such payments allow clubs to drain pitches, erect floodlighting, buy non-personal sports equipment, build changing rooms and sports halls and generally increase the opportunities for people to engage in sports at all levels. In allocating this funding, special targeting and priority is given to projects in RAPID, CLA´ R and local drug task force areas. These projects are permitted to have a lower level of minimum own funding available, 20% for projects in CLA´ R areas and 10% for RAPID and local drug task force areas, in comparison with the normal 30% towards their project. They may also receive extra marks during the assessment process. In the most recent round of the sports capital programme in 2008, successful projects under the programme in RAPID areas also qualified for additional top- up funding of up to 30% of their sports capital programme allocation, from the then Department of Community, Rural and Gaeltacht Affairs. Through these measures, the sports capital programme has invested over €150 million in projects in designated disadvantaged areas. In turn, top-up arrangements in RAPID and CLA´ R areas have allowed further allocations of more than €22 million to be made. A draft five year national sports facilities strategy was completed last July in the Department. It is currently being updated to take account of developments since then and should be submitted shortly to me for consideration. The aim of the strategy is to provide high-level policy direction for future investment and grant assistance at national, regional and local level and to ensure a coordinated approach across the various agencies and Departments involved in supporting the provision of sport and recreational facilities. The programme for Government provides that “In future sports funding should prioritise projects which further greater participation in sport on a local and national level”. This will be a central focus of any new round of the programme. I am looking at the options that may be open to me

137 The 29 June 2011. Adjournment

[Deputy Michael Ring.] with regard to a new programme within the present financial constraints but no decision has been made yet on the timing of the next round of the sports capital programme.

The Da´il adjourned at 9.35 p.m. until 10.30 a.m. on Thursday, 30 June 2011.

138 Questions— 29 June 2011. Written Answers

Written Answers.

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

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Written Answers Nos. 1-42

Questions Nos. 1 to 14, inclusive, answered orally.

Questions Nos. 15 to 23, inclusive, resubmitted.

Questions Nos. 24 to 36, inclusive, answered orally.

Disadvantaged Areas Scheme 37. Deputy Seán Ó Fearghaíl asked the Minister for Agriculture; Fisheries and Food if farmers in disadvantaged areas will receive the full payment for this year in September under the disadvantaged area scheme. [17626/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): The Disadvantaged Areas Scheme involves the processing of over 100,000 applications from farmers annually and under the Scheme in excess of €220 million is paid. The Scheme is part funded by the EU and forms one of the measures included in Ireland’s Rural Development Programme (2007 to 2103). I can confirm that the necessary progress in processing applications is being made which will ensure delivery of payments under the 2011 Disadvantaged Areas Scheme to the farmers concerned, as and from the latter half of September 2011. Furthermore, I have decided that the full amount due will issue at that stage, unlike last year, when an advance payment was made, at a rate of 75%. The decision to opt for the advance payment in 2010 was taken when it became apparent that processing of the unprecedented number of maps, which farmers had submitted in 2010 in order to have various ineligible areas digitised, would not be completed by mid-September. This decision ensured that the maximum value of payments issued to the greatest number of applicants at the earliest possible date. That decision was appropriate and correct at that time, given the volume of maps that needed to be digitised. I am confident that this situation will not reoccur as the volume of maps requiring digitisation this year is closer to the annual norm, which means that full 100% payments should commence in September. 139 Questions— 29 June 2011. Written Answers

[Deputy Simon Coveney.]

While there is no regulatory timeframe laid down as regards the timing of payments under the Disadvantaged Areas Scheme, my Department has committed to making payments as early as possible. It is recognised that second half of September is earliest date payments can realistically commence following the processing of applications and the initiation of all eligibility inspections, which is a requirement of the EU Regulations. It is simply not possible to commence payments earlier that this. This target has been met each year over the lifetime of the current Rural Development Programme and, indeed, during the lifetime of the previous Programme. In conclusion, I am satisfied that the necessary inspections will be completed in sufficient time to allow Disadvan- taged Area payments to commence, as usual, in the latter half of September.

Proposed Legislation 38. Deputy Michael Colreavy asked the Minister for Agriculture; Fisheries and Food when the new Animal Health and Welfare Bill will be brought before the Houses of the Oireachtas. [17615/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): The Programme for Government 2011 includes a commitment to amend and strengthen legislation on animal cruelty and animal welfare. In this regard I am proposing to publish an Animal Health and Welfare Bill later this year to give effect to this commitment and to build on ongoing legislative drafting in this area which includes the consolidation of a wide range of existing animal health and welfare legislation as well as replacing and repealing a long list of outdated legislation. In the area of animal health, the Bill will deal with arrangements for the prevention, control and eradication of animal diseases. Provision will be made to require owners of animals to take measures to minimise the risk of spreading disease and it will be an offence to transmit a disease or introduce a disease agent. Mindful of the fact that current animal welfare legislation dates back to 1911, it is opportune to update existing provisions in this area. The Bill therefore deals in some detail with animal welfare. It will provide that the welfare of animals is adequately protected and will address issues such as the prevention of needless pain or unnecessary suffering of animals as well as dealing with control measure relating to the abandonment of animals. Cruelty involving animals will be specifically prohibited and such activities will be an offence under the legislation. The Bill will deal comprehensively with proscribed procedures and it will be an offence to mutilate animals, other than when necessary under veterinary supervision for the health and welfare of the individual animal. The Bill will also allow for the continuation of normal farming, sporting and other activities where these do not involve reckless endangerment of the welfare of animals. The Bill provides for increased powers for authorised officers and will update the level of penalties to be imposed with fines being proportionate to the offence. The Bill will consolidate into my Department overall responsibility for policy and legislative measures relating to both the health and welfare of all animals including for the first time pet animals. The updating of existing legislation in the area of animal health and welfare and its consolidation into a single statute will assist all those who deal with or have an interest in animal health and welfare matters.

Animal Welfare 39. Deputy Charlie McConalogue asked the Minister for Agriculture; Fisheries and Food his views regarding fur farming; and if he will make a statement on the matter. [17633/11] 140 Questions— 29 June 2011. Written Answers

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): It is my intention to publish an Animal Health & Welfare Bill this year. However, as the Deputy will be aware the Bill is a complex one and will require extensive work in conjunction with the Office of the Parliamentary Counsel to complete the required legal drafting. Once a complete draft is available I intend to publish the Bill. The issue of fur farming is being examined in the context of the ongoing drafting of the Bill.

Live Exports 40. Deputy Denis Naughten asked the Minister for Agriculture; Fisheries and Food the steps he is taking to support a live cattle trade to Britain; and if he will make a statement on the matter. [17599/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): The live export trade complements the processing trade by providing alternative market outlets for cattle producers. There are 2 main components to the live export trade; calf shipments to the Continent and the movement of forward stores and finished cattle to the UK. Data for the period from January to 11 June 2011 shows that overall live exports are 40% below the levels achieved during the corresponding period in 2010. Exports to Great Britain decreased by 61% on those for the same period in 2010 while those to Northern Ireland are down by 48% and those to all other destinations fell by 36%. The main reason for the current decline in live exports is the ongoing strength of domestic cattle prices. Bord Bia figures for the week ending 11 June show that Irish R3 steer prices were 105% of the EU weighted average and 102.5 % of the British average. This convergence between the domestic cattle prices and those in UK reduces the financial attractiveness of live exports to the sterling area when associated costs are taken into account. As part of its remit to support the agri-food industry, Bord Bia is working to facilitate the live export trade as customer demand and economic conditions allow. In this regard, it provides up-to-date market information to exporters in the form of weekly livestock reports and bimonthly updates from each of the major markets, as well as regular communication with market offices. In addition, Bord Bia’s market offices promote contact with new customers, organise promotional events for Irish livestock, arrange inward buyer visits, attend livestock trade fairs and forecasting meetings, commission market research and organise credit rating and language interpretation services as appropriate on behalf of the sector.

Sheep Sector 41. 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. [17600/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): I am very pleased to see that there is renewed confidence in the sheep sector. Last year saw a welcome increase in the average factory price for heavy lambs, with prices approximately 17% ahead of the 2009 levels. Prices this year, irrespective of the current seasonal drop, are still above those for the same time last year. Another very encouraging sign is the fact that for the first time in over a decade, last year saw a hiatus in the annual decline in sheep numbers. Indeed numbers actually increased by 1.3%. I am very hopeful that 2011 will see another optimistic year for sheep farmers. The long-term future of the sheep sector will depend on its ability to meet the needs of the market and to do this successfully it must focus on competitiveness, innovation and the

141 Questions— 29 June 2011. Written Answers

[Deputy Simon Coveney.] demands of the consumer. Food Harvest 2020 Strategy which provides a vision for Irish Agri- Food and Fisheries for the next 10 years, targets a 20% growth in output value for the sector by 2020 and sets out specific recommendations for the sheep industry. It predicts that over the coming years, demand for sheepmeat on the European market will outstrip production levels, which could provide opportunities for exporting countries such as Ireland, which should in turn provide the potential for better returns, provided the market and product diversification we have seen in recent years continues. The producer too should benefit from improved price prospects provided there is an increased focus on production, efficiency and product quality. The recommendations of Food Harvest 2020 for the sheep industry focus both on farm competitiveness and the processing sector. On the farm side the emphasis is on the use of on- farm labour efficiencies and new technologies, breed improvement and the production of a quality product. On the processing side, the report highlights efficiencies, innovation and improved product range. Food Harvest 2020 also endorses the recommendations of the 2006 Sheep Industry Develop- ment Strategy Group. The responsibility for the implementation of most of the recommendations lies with the industry itself. However a number of its recommendations are the responsibility of my Department and the state agencies under its aegis, and significant progress has been made in implementing them. The initiatives taken include:

The establishment of ‘Sheep Ireland’ 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 is overseeing this process, with the Irish Cattle Breeders Federation (ICBF) providing the technical and professional service required.

The establishment of the Lamb Quality Assurance Scheme in 2007. This Scheme is operated by Bord Bia and now has 8,500 certified members.

As part of its efforts to promote lamb on the home and export market, Bord Bia, together with its UK and French counterparts, is part of a generic promotion campaign on the valuable French market.

Teagasc has developed a comprehensive plan to restructure its sheep support services, including a Better Farm Programme for sheep, which aims to establish focal points for the on-farm implementation, development and evaluation of technology that is relevant to the sheep sector. This approach provides an opportunity to engage with sheep farmers on the use of the latest management practices and to identify research and development needs.

In recent times the sector has received a number of key supports, including €7 million from the 2009 Single Farm Payment National Reserve under the Uplands Sheep Payment Scheme and €54 million for the three year grassland sheep scheme which commenced in 2010. These measures have provided a much-needed boost to sheep farmers’ incomes, which should encourage them to stay in the sector. Bord Bia will also 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 for 2011. All of these initiatives and supports have benefited the sheep industry. I strongly believe that the Food Harvest 2020 targets for the sector can be met, provided its recommendations are followed. I remain committed to supporting this valuable industry and will continue to monitor its progress closely.

142 Questions— 29 June 2011. Written Answers

Question No. 42 resubmitted.

Horticulture Sector 43. Deputy Brendan Smith asked the Minister for Agriculture; Fisheries and Food the effect of the recent E Coli crisis on vegetable growers here and the arrangements made to compensate these growers [17624/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): The recent E. coli outbreak resulted in significant loses for horticultural producers and traders across the EU. Thankfully Ireland was not affected to the same extent as the main exporting countries such as Spain and the Netherlands. The sharp fall in consumer demand in light of the crisis resulted in a significant surplus of produce on the EU market. I attended a specially convened Agriculture Council meeting in Luxembourg on Tuesday 7 June 2011 to discuss both the public health and the market related issues involved. The Council was briefed by both Commissioners for Health and Agriculture, Dalli and Ciolos. There was an extensive discussion on the need for a fully funded EU market measure and I am pleased to say that the Commission responded promptly to that demand. In an effort to remove the surplus product and contribute to the restoration of market balance, the EU Commission introduced a scheme with an EU wide budget of €210m. The Scheme which is 100% EU funded, runs from 26 May to 30 June 2011 and covers cucumbers, lettuce, tomatoes, courgettes and sweet peppers. The rates of EU aid on offer are specifically targeted to attract unsold product on the market. In addition, an EU-wide co-efficient will apply to reduce the rates of aid payable if the budget is oversubscribed. To date over 48 tonnes of unsold Irish cucumbers have been destroyed under the Department of Agriculture, Fisheries and Food supervision in line with the EU scheme. A significant proportion of this produce was destroyed in the immediate aftermath of the E. coli crisis when Irish demand for cucumbers fell significantly. As the scheme remains open until the end of June, a final figure for product withdrawal is not available. With the exception of cucumbers, the Irish market has now strengthened to the extent that most of the reduction in demand for salad products is only due to our changeable weather. Cucumber sales have been slower to recover but their price and demand are both slowly returning towards normal. Latest Developments The food safety implications of the crisis were also discussed at yesterday’s meeting of EU Agriculture Ministers in Luxembourg, which I also attended. We heard a further report from Commissioner Dalli that there was a decreasing trend in new infections and that all batches of product from the German farm at the centre of the outbreak had now been traced. The Euro- pean Food Safety Authority (EFSA) together with the French authorities are in the process of investigating an outbreak in France and a special task force has been established. To date, investigations are focusing on seed grown outside the EU and imported during 2010. Com- missioner Dalli emphasised that there was no danger from the consumption of salad vegetables such as cucumbers, lettuce, courgettes and tomatoes. The Commission acknowledged that there were lessons to be drawn from the outbreak in terms of coordination and the need for clear communication to the public. As is standard practice, the Commission will engage in a full review of early warning and response procedures over the coming months. It will also be looking at whether there is a need to strengthen EU

143 Questions— 29 June 2011. Written Answers

[Deputy Simon Coveney.] hygiene rules on the production of seed for food for human consumption, taking into account the advice of EFSA. The Commission also announced that the difficulties for EU exports of fruit and vegetables to Russia had been resolved following detailed discussions with the Russian authorities.

EU Funding 44. Deputy Dara Calleary asked the Minister for Agriculture; Fisheries and Food his plan to ensure that Ireland secures the same proportion of the pillar 2 rural development fund in the Common Agricultural Policy post 2013. [17628/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): The size of the CAP budget and how it will be divided between pillar 1 and 2 will ultimately be a matter for decision by EU Finance Ministers and Heads of State and Government in the context of the overall EU multiannual financial framework for the coming years. First proposals on this are expected from the EU Commission later this week. I want to see a strong and adequately financed CAP budget that, at the very least, allows the current mix of CAP policies to be maintained, both for pillar 1 and pillar 2. Ireland’s receipts from the second pillar will also depend on the extent to which there is a redistribution of CAP funds between Member States. Currently there are two schools of thought on how redistribution might be achieved ranging from the use of objective criteria to determine allocations to each Member State to applying a pragmatic approach that would rebalance current allocations and even out distribution levels. I favour using a pragmatic approach both for pillar 1 direct payments and pillar 2 rural development funds, starting with the current distribution level and using eligible area as a comparator. On this basis, Ireland’s average payments both in pillar 1 and pillar 2 are just below the EU average and I would see no justification for any negative effects on Ireland’s receipts. Using objective criteria, on the other hand, would give rise to much more uncertainty. The outcome would depend on the set of criteria selected and, although we could suggest very favourable criteria, others could equally suggest criteria very unfavourable to us, particularly for pillar 2. It is for these reasons that I will continue to press strongly for the pragmatic approach. My overriding objective is to secure at the very least a continuation of the current level of CAP funding both for the first and second pillars.

Farm Waste Management 45. Deputy Michael Creed asked the Minister for Agriculture; Fisheries and Food if, in view of the recent economic downturn and the fact that many building contractors involved in construction projects grant aided by him, including the farm waste management scheme, have gone out of business and are unable to furnish concrete certificates to grant applicants leaving farmers unable to draw down grants due to them, if he will consider accepting alternative evidence regarding concrete strength used in these construction projects; and if he will make a statement on the matter. [17601/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): A revised Farm Waste Management Scheme was introduced by my Department in March 2006 in order to assist farmers meet the additional requirements of the Nitrates Directive. By virtue of the terms of the EU state aid approval for the Scheme, all work had to be completed by farmers under

144 Questions— 29 June 2011. Written Answers the Scheme by end-December 2008. The Scheme provides that relevant quality certificates must, where specified, accompany materials used in the construction of developments. I am aware, however, of a small number of cases where farmers were unable to secure such certificates due to the financial difficulties of the contractors which carried out the works. In such cases, my Department would always be prepared to consider any alternative documentation in relation to the quality of the materials used which may be available to the applicants concerned.

Grant Payments 46. Deputy Mick Wallace asked the Minister for Agriculture; Fisheries and Food if he will give assurances to this house that agri environmental options scheme payments due from 2010 and AEOS and REP scheme four payments for 2011 will be paid in 2011; and if he will make a statement on the matter. [17620/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): I am acutely aware scheme payments constitute an important part of cash flow and farm income that farmers are anxious to know when they will receive their payments. I wish to assure farmers that my objective is to ensure that all outstanding claims are processed to payment stage as quickly as possible without any undue delays. All area based scheme payments are subject to exhaustive checks which are required under EU Regulations, must be carried out to the highest possible standard before payments can issue. Insofar as REPS is concerned, payments in respect of 2010 REPS 4 commenced on 15th December 2010, and over 14,585 applicants received payment before the end of 2010. Payments continue to issue on a weekly basis. To date, out of 30,254 farmers who are due payments, 26,477 have been paid in full. The majority of outstanding payments have issues which need to be examined or resolved and these are being dealt with on an ongoing basis by my officials. A small number of farmers are awaiting their balancing payment of 25%, having already received 75%, because they have incurred breaches of the Scheme. The balancing payment cannot be paid until the appropriate penalties have been applied and work to complete this process is proceeding. Work to facilitate REPS 4 payments for 2011 is well underway. All those who pass the administrative checks without issue will have their payment released in the first tranche of payments. It is my intention that REPS 4 payments for 2011 will commence in October and that all payments will issue as quickly as possible thereafter subject to compliance with the scheme conditions. As regards AEOS, some 8,500 farmers who were approved for participation in AEOS 1 are due payment in respect of 2010. Initial computerised checks carried out on information contained in each application revealed a high incidence of errors in the information provided and these errors had to be rectified before the detailed administrative checks could commence and payment could issue. I have given the processing of payments a high priority and I expect that AEOS payments in respect of the first year will commence in August. Payments in respect of year two will commence in October. I re-opened AEOS this year, in the face of very difficult budgetary circumstances. The some 7,000 applications received for AEOS 2 are currently being processed by my officials and those which prove eligible will be receiving offers of acceptance into the Scheme once all applications have been assessed. These applications will then be subject to the same rigorous administrative checks mentioned already, including cross-checks with the Land Parcel Identification System,

145 Questions— 29 June 2011. Written Answers

[Deputy Simon Coveney.] and the outcome of those checks will determine when approvals issues and payments can commence. It is my intention that, for the future, all REPS and AEOS payments will issue as expeditiously as possible within the constraints of passing all administrative checks and meeting all EU requirements.

Farm Consolidation 47. Deputy Michael Moynihan asked the Minister for Agriculture; Fisheries and Food the discussions he has had with the Department of Finance in relation to renewing the stamp duty exemption for farm consolidation by the end of June 2011 and if he will outline the importance of renewing the exemption. [17622/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): As the Deputy is aware, taxation measures are a matter for the Minister for Finance. I have written to the Minister for Finance in relation to the stamp duty exemption for farm consolidation outlining its importance as part of an overall strategy to encourage consolidation in the sector. Consoli- dation at farm level is important in the context of the Food Harvest 2020 strategy. Apart from the stamp duty consolidation measure, a range of tax incentives are already in place to encourage the transfer of land, including: • 100% stamp duty relief on transfers and purchase on land by young trained farmers; • 90% agricultural relief from Capital Acquisitions Tax; • Full Capital Gains Tax — Retirement relief on farm disposals; • Rental income exemptions to encourage the long-term lease of land; • General stock relief, including 100% relief for young trained farmers; • 12.5% capital allowance on plant and machinery and motor vehicles; • Capital allowances for milk quota — expenditure spread over seven years.

Proposed Legislation 48. Deputy Michael Moynihan asked the Minister for Agriculture; Fisheries and Food his engagement with the Department of Jobs, Enterprise and Innovation on the introduction of fair trade legislation and when he expects draft legislation to be produced. [17621/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): As the Deputy is aware, the programme for Government contains a commitment to enact fair trade legislation which will ban a number of unfair trading practices in the retail sector. My colleague, the Minister for Enterprise, Jobs and Innovation, Richard Bruton TD has recently indicated to this House his intention to give effect to this commitment by including a specific enabling provision in legislation. As Minister for Agriculture, Fisheries and Food, I work closely with my Minis- terial colleagues on delivery of the Programme for Government. The Government is committed to ensuring that Ireland continues to have vibrant agrifood and retail sectors and balance in the relationship between the players in the grocery goods sector is important to this.

Grant Payments 49. Deputy Brendan Smith asked the Minister for Agriculture; Fisheries and Food if he has satisfied himself that he will achieve an advance payment of the single farm payment from the European Commission. [17623/11]

146 Questions— 29 June 2011. Written Answers

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): The Single Farm Payment forms a significant part of the annual income of all farmers in Ireland. It is clear that the timing of this payment is extremely important to farmers, particularly those farmers with low farm incomes. Therefore, I decided that I would seek the approval of the EU Commission to make an advance payment of the SFP from 16 October 2011. While the Commissioner’s proposal is subject to ratification by the relevant EU Management Committee in July, given the widespread impact of the financial crisis across the Union, the impact of the drought in some Member States and the crises in the vegetable sector, I am confident that such support will be forthcoming and that approval for the Irish application can be obtained.

Live Exports 50. Deputy Nicky McFadden asked the Minister for Agriculture; Fisheries and Food if tougher regulations are being proposed by the EU for the export of Irish cattle abroad; and if he will address farmers concerns that new legislation will add significant costs on the farming sector. [17603/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): The EU has not proposed any new regulations relating to the export of Irish cattle. Member States are legally obliged under Council Directive 64/432 on intra-community trade to certify, among other things, that bovines and pigs being exported for breeding or production have been on a single holding during the 30 day period prior to export or, if such animals are younger than 30 days, that they have been on the holding of their origin since birth. The EU Commission has taken the view that the arrangements in place in Ireland in this respect are not in line with the Directive. We have taken this matter up with the Commission with a view to seeking a resolution as part of the review of the animal health legislation in the framework of the new EU New Animal Health Strategy. An EU Commission proposal for a new animal health law is currently scheduled for adoption in 2013.

Public Sector Staff 51. Deputy Barry Cowen asked the Minister for Agriculture; Fisheries and Food the discussions he has had with Teagasc regarding the impact of the public sector moratorium on teacher numbers at agricultural colleges. [17632/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): I have had discussions with Teagasc in relation to the impact of the moratorium on operations including the delivery of education courses in the agricultural colleges. Delivery of the Teagasc education programme is an operational matter for Teagasc and its Board. I understand that over 200 staff are currently employed in the Teagasc owned colleges and the private agricultural colleges. The question of additional resources in Teagasc must have regard to Government policy on public service numbers and the need to achieve savings in the public service pay bill through planned reductions in staff numbers. Therefore, when vacancies arise, public service organisations must reallocate or reorganise work or staff accordingly. Any exceptions to this principle can only be considered in very limited circumstances in respect of mission critical posts and in full compliance with annual ceilings on staff numbers.

Agri-Food Sector 52. Deputy Bernard J. Durkan asked the Minister for Agriculture; Fisheries and Food the extent to which he has studied submissions from the various farming organisations or producer

147 Questions— 29 June 2011. Written Answers

[ Deputy Bernard J. Durkan.] interest groups appertaining to the central role likely to be played by agriculture and the food industry in economic recovery; the extent to which he can set in motion the conditions most likely to benefit the industry and the economy with the emphasis on expanding production capacity, opening new export markets and ensuring that Common Agricultural Policy discussions leading into World Trade Organisation talks to not inhibit or impede such strategy; and if he will make a statement on the matter. [17641/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): I and my officials were centrally involved in the examination of submissions made by the various stakeholders to the request for comments and input on the National Reform Plan submitted by Ireland to the EU Commission in the context of the EU 2020 strategy for recovery and growth. Secondly, in regard to the agricultural sector specifically, the Food Harvest 2020 strategy, our blueprint for smart, green growth in the agri-food sector to 2020, although facilitated by my Department, was developed and led by the industry in association with stakeholders. The strategy contains 215 recommendations and has set a series of ambitious growth targets to be achieved by 2020. There has been significant and widespread buy-in to the strategy from all the stakeholders and it has been incorporated as part of our national plan for economic recovery. I am determined to work with all of the relevant shareholders to ensure the targets are achieved and those working in the sector can be assured of my commitment to work with them to create the conditions and environment within which the sector can prosper, deliver the Food Harvest 2020 targets and realise its full potential. This includes ensuring the appropriate EU and international policy frameworks within which the strategy can be achieved. I am very conscious of the need for a strong and well-resourced CAP in the future based on the twin goals of competitiveness and sustainability. I am also conscious of the need for balance in our trade relations. Ireland is a small open economy and our future success is predicated upon our ability to grow our exports. In this respect, I want to see a balanced outcome to the WTO negotiations that does not undermine EU and Irish agriculture. I also want to ensure our approach to international trade is balanced between our offensive and defensive interests and that we do not sacrifice EU or Irish agricultural interests in our pursuit of bilateral agreements with our trading partners.

Fishing Industry Development 53. Deputy Bernard J. Durkan asked the Minister for Agriculture; Fisheries and Food the extent to which he expects to facilitate the development of the fishing industry with the objective of maximising employment opportunities, protecting fish stock, creating opportunities for those involved in the fishing industry, banning the dumping of surplus catch and setting out a national strategy to bring about maximum benefits and economic value through increased employment in the industry; and if he will make a statement on the matter. [17642/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): Food Harvest 2020 sets out a national strategy for development of the seafood sector to maximise its considerable potential to contribute to national economic recovery and provide increased employment in peripheral coastal communities. The report identifies a potential to increase employment from 11,000 to 14,000 by 2020, while increasing the value of the sector to €1 billion. Action is recommended in a number of areas to achieve this goal, including encouraging foreign vessels to land their catch in Ireland to increase raw material supply to Irish processors and the provision of

148 Questions— 29 June 2011. Written Answers specific support programmes for the development of innovative, consumer oriented seafood products and the restructuring of the processing sector. In 2010, BIM published its 3-year Strategy ‘Delivering on the Potential of Irish Seafood’. The Strategy sets out over 70 detailed actions that underpin the opportunities for the Irish seafood sector. On 3 June 2011, I announced the creation of 158 new jobs in the Seafood Processing Sector, arising from new investment of €7.4 million by 18 processing companies, supported by grants of €1.7 million under the Seafood Processing Business Investment Scheme. The Processing Scheme addresses the above recommendations of Food Harvest 2020 by providing support to seafood processing companies aiming to add value to Irish seafood products, improve efficiency, promote consolidation and create additional income and employment within the sector. BIM also launched a new Seafood Value Adding Scheme in 2011 that will support seafood companies with projects that demonstrate a market lead business approach, including processing technology improvements, innovation and new product development. The scheme was developed by BIM in consultation with industry and aims to convert the high level of commodity seafood products into value-added products which meet high standards required within the retail and foodservice sectors in the domestic and export markets. BIM is expecting to support investment of up to €1 million in 2011 under this scheme. BIM’s Lean Seafood Business Programme is another important support Programme for the development of the seafood sector. This Programme seeks to identify how operating efficiencies can be maximised over a relative short time period to reduce the operating costs of seafood processing companies and assist them in improving their business performance and becoming more competitive. I understand that early participants in the Programme are achieving considerable cost savings. Outside of the above schemes, on 3 June 2011 I also announced a pilot jobs initiative for the Killybegs region aimed at creating an additional 250 jobs in the area by 2014. As part of the pilot initiative a focused expert group has been tasked with identifying actions that can deliver those jobs, leveraging the talent, resources and infrastructure of the Killybegs area. The expert group will complete its work by the end of September 2011 and report to me on their progress and on the identified potential for job creation in Killybegs. Since its opening in 2009, BIM’s Seafood Development Centre in Clonakilty has been rightly lauded as a great success. The Centre has made considerable progress in driving seafood value- added activity. During 2010, over 180 seafood companies worked with the Centre, some of which have developed a range of successful new seafood products. BIM has set a target of achieving an additional €100 million worth of new seafood products over the next five years. For the seafood processing sector to develop to its potential, an increased supply of raw material is essential. Food Harvest 2020 quite rightly identified the need to encourage foreign vessels to land their catch into Irish ports to increase raw material supply. Given the increasing cost of fuel for foreign vessels in returning their catch from our Atlantic waters to their home ports, I believe that the potential exists to develop Ireland as a European seafood-processing hub. BIM is actively working on this issue and is facilitating contact between the Irish processing industry and representatives of foreign fishing vessels. Clearly, in the context of both raw material supply to our processing industry and the long term sustainability of our fisheries, measures to reduce and ultimately eliminate the wasteful and indefensible practice of discards is critical. I have been very active on this front and have had a series of discussions with fisheries Commissioner Damanaki, and fellow EU Fisheries

149 Questions— 29 June 2011. Written Answers

[Deputy Simon Coveney.] Ministers on this topic, which is a major priority for me and for Ireland’s vision for the new Common Fisheries Policy. I have been promoting practical and pragmatic measures which can demonstrably deliver on the shared objective of elimination of discards, while importantly having the maximum possible level of “buy in” from the industry. It is my firm belief that a “tool box” of flexible measures that can be implemented, where appropriate, on a fishery by fishery basis, is the best possible option.

Aquaculture Development 54. Deputy Martin Ferris asked the Minister for Agriculture; Fisheries and Food if he will give an assurance that any increase as suggested by him via his commitments on a programme (details supplied) to increase fish farms by a multiple of ten, will not contaminate the natural wild salmon and trout and if he will also give an assurance that the locations of these fish farms will be far removed from any spawning grounds of natural wild trout and salmon. [17616/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): All applications for aquaculture licenses are subjected to a rigorous examination by my Department and its scientific/technical advisers to ensure the maximum protection for the environment. Full compliance with all EU and national legislation is a minimum requirement and the process of examination includes a period of public consultation. Inland Fisheries Ireland is a statutory consultee in relation to this process. I am satisfied therefore that the application process is based on the best scientific advice available, affords the public an ample opportunity to comment on each application and con- forms with all environmental protection measures.

Grant Payments 55. Deputy Dara Calleary asked the Minister for Agriculture; Fisheries and Food if all REP scheme and agri environmental options scheme payments due in 2011 will be paid before the end of the year. [17627/11]

150 Questions— 29 June 2011. Written Answers

Work to facilitate REPS 4 payments for 2011 is well underway. All those who pass the administrative checks without issue will have their payment released in the first tranche of payments. It is my intention that REPS 4 payments for 2011 will commence in October and that all payments will issue as quickly as possible thereafter subject to compliance with the scheme conditions. As regards AEOS, some 8,500 farmers who were approved for participation in AEOS 1 are due payment in respect of 2010. Initial computerised checks carried out on information contained in each application revealed a high incidence of errors in the information provided and these errors had to be rectified before the detailed administrative checks could commence and payment could issue. I have given the processing of payments a high priority and I expect that AEOS payments in respect of the first year will commence in August. Payments in respect of year two will commence in October. I re-opened AEOS this year, in the face of very difficult budgetary circumstances. The some 7,000 applications received for AEOS 2 are currently being processed by my officials and those which prove eligible will be receiving offers of acceptance into the Scheme once all applications have been assessed. These applications will then be subject to the same rigorous administrative checks mentioned already, including cross-checks with the Land Parcel Identification System, and the outcome of those checks will determine when approvals issues and payments can commence. It is my intention that, for the future, all REPS and AEOS payments will issue as expeditiously as possible within the constraints of passing all administrative checks and meeting all EU requirements.

Agri-Food Sector 56. Deputy Barry Cowen asked the Minister for Agriculture; Fisheries and Food the progress made to date in developing the Brand Ireland proposal outlined in Food Harvest 2020. [17631/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): The Brand Ireland recommendation in the Food Harvest 2020 strategy reflected an endorsement by the agri-food industry of the previous “Pathways for Growth” assessment by Harvard Business School working with Bord Bia. The approach is to develop an umbrella brand, or enhanced reputation, which is credible, distinctive and embraces all aspects of Irish food and drink. The complexity involved in delivering this is high, and its achievement will require the commitment of many key players in the sector. Progress has been made in relation to documenting sustainability, which is important to buyers and is a key element of the Brand Ireland concept as proposed in Food Harvest 2020. Bord Bia has worked closely with Teagasc and the Carbon Trust to include a carbon labelling component in its Beef and Lamb Quality Assurance Schemes and has achieved PAS2050 standard (Publicly Assured Systems). This is a very positive step and similar work will be undertaken with other products. Bord Bia has also carried out detailed research involving consumers and business audiences in six countries and work is underway with tourism interests to promote joined up approaches to developing Ireland’s image abroad. The Deputy will be aware that under EU rules public funds may not be used to advertise on the basis of origin.

Public Sector Remuneration 57. Deputy Michael McGrath asked the Taoiseach if he will list the number of positions under his control but outside of the civil service which will be affected by new salary caps; the

151 Questions— 29 June 2011. Written Answers

[ Deputy Michael McGrath.] specific cuts involved and any impact identified on the ability to recruit or to retain specific positions in the next 12 months. [17986/11]

The Taoiseach: The National Economic and Social Development Office (NESDO) is the only agency under the aegis of my Department and is outside the Civil Service. No positions in NESDO are affected by the new salary caps.

Diplomatic Representations 58. Deputy Joanna Tuffy asked the Tánaiste and Minister for Foreign Affairs and Trade if he will provide an update on the most recent representations made by Ireland on behalf of a person (details supplied), the Israeli soldier kidnapped by Hamas in 2006; his plans to call for his release; his plans to make representations to the relevant Palestinian officials; and if he will make a statement on the matter. [17728/11]

Tánaiste and Minister for Foreign Affairs and Trade (Deputy Eamon Gilmore): This week marks five years since Sergeant Gilad Shalit was kidnapped from Israel by Palestinian militants. His continued captivity is a deplorable situation for the soldier and his family. The Red Cross has been refused access to him, his family cannot send letters to him, and they have received no confirmation that he is still alive since 2009. Ireland, along with our EU partners, has repeatedly called for his release without delay, most recently at the European Council last week, which issued a Declaration demanding his immediate release. Last week I discussed Sergeant Shalit’s case with the Israeli Ambassador, and made a statement reiterating the Government’s call for his immediate release. Gilad Shalit was kidnapped by Hamas, an organisation with which the Government has no channel of communication. Hamas is listed as a terrorist organisation by the EU, and, accordingly, there is no contact at any level between Irish officials and representatives of Hamas. There have been periodic reports that a prisoner swap deal between Israel and Hamas, conducted through third parties, would lead to the imminent release of Sergeant Shalit. Regret- tably, this has not yet proved to be the case. It is my sincere hope that Gilad Shalit will soon be released and can return to his family in Israel.

Trade Relations 59. Deputy Seán Kenny asked the Tánaiste and Minister for Foreign Affairs and Trade his plans to develop stronger links with Australia particularly in relation to education, trade and tourism. [17744/11]

Tánaiste and Minister for Foreign Affairs and Trade (Deputy Eamon Gilmore): The Deputy will be aware that Ireland enjoys strong historic and cultural links with Australia, with nearly 25% of Australians boasting some Irish heritage. Australia is also one of Ireland’s top 20 trading partners. Total merchandise trade between Ireland and Australia in 2010 was worth €859 million, an increase of 9% on 2009 levels. Our services trade is on a similar scale. The Government attaches importance to developing further our trade and economic links with Australia. Last year, the then Minister for Trade and Commerce led a multi-sectoral trade mission of 44 leading Irish companies to Australia. Both Enterprise Ireland and the IDA have offices in Australia. More than 75 Irish companies have a presence there, while 35 Australian companies are located in Ireland. Tourism Ireland is also represented in Sydney, recognising that Australia is a very important market for Ireland. The Australian market recovered more quickly than other markets from

152 Questions— 29 June 2011. Written Answers the global economic crisis and 2010 saw a 2% increase in visitor numbers to Ireland. The target for Tourism Ireland this year is to return to consistent growth and reach 2008 levels (150,000 visitors) by the end of 2011. An important support to Irish tourist promotion will arise from the major “Irish in Australia” exhibition running at the National Museum of Australia from 17 March-31 July 2011. It is expected to generate considerable interest, particularly in family history research. The Embassy in Canberra has been supporting plans and preparations for this exhibition for many years and has provided extensive in kind support and my Department and Culture Ireland have provided over €60,000 in support. My colleague, the Minister for Children, Frances FitzGerald T.D., attended the opening of the exhibition in March and more than 35,000 people have visited the exhibition since then, which is far ahead of target. There is a very successful Working Holiday Visa agreement in place between Ireland and Australia, and 15,000 Irish backpackers availed of this scheme in 2010. Around 500 Australians travelled to Ireland on the same scheme last year, fostering ongoing links between young people from both countries. The Export Trade Council, which will be established shortly and which I will chair, will monitor implementation of the Government’s Strategy for Trade, Tourism and Investment under which Australia has been identified as one of the priority markets. The Strategy brings together all of the relevant State Agencies which have committed to achieving specific targets in priority markets. The Ambassador in Canberra chairs a local market team with representatives of the relevant State Agencies to drive this strategic approach and ensure a sustained and coordinated use of all of the State’s resources in support of Irish companies trading and growing their business in the Australian market.

Foreign Conflicts 60. Deputy Seán Ó Fearghaíl asked the Tánaiste and Minister for Foreign Affairs and Trade if he has concerns about civil unrest in Nepal; if the position and safety of Irish citizens there is being monitored by the Irish Embassy in New Delhi; if the Nepalese situation has been discussed by him with his European counterparts; and if he will make a statement on the matter. [17769/11]

Tánaiste and Minister for Foreign Affairs and Trade (Deputy Eamon Gilmore): The situation in Nepal is monitored closely by my Department and, in particular, through our Embassy in New Delhi, which is accredited there. There is a small Irish community in Nepal, which is mostly involved in development activities and with which the Embassy in New Delhi maintains close contact. Ethnic tension and occasional outbreaks of violence, linked to demands for greater autonomy, are a continuing aspect of life in the Terai and Eastern region of Nepal. In March 2011 four explosive devices were detonated on public buses operating in the Terai region. One person died and 44 people were injured. While the overall level of violence in Nepal has declined in the past year, there remains a general threat of terrorism, including the possibility of indiscriminate attacks in places fre- quented by foreign travellers. The security situation, therefore, is still unpredictable. However, most tourists visit the country without incident. Irish citizens visiting Nepal are advised by my Department to be vigilant, avoid large gather- ings and demonstrations and keep away from those regions most subject to violence. They should regularly monitor political and security developments, including though the Department of Foreign Affairs website. Those travelling to Nepal should register on the Department’s website and have comprehensive travel insurance.

153 Questions— 29 June 2011. Written Answers

[Deputy Eamon Gilmore.]

The political situation in Nepal, while fragile, remains hopeful. A peace process, aimed at reconciliation across society, is active. Although the May deadline for a constitutional agreement passed without achieving its aim, I welcome the decision by the political parties in Nepal to extend the deadline and am encouraged by the commitment to resolve the outstanding issues. A cross-party group of Nepalese politicians visited Ireland, North and South, for a lesson- learning visit in September 2009. The visit was coordinated by the Glencree Centre for Peace and Reconciliation, with the assistance of the Department of Foreign Affairs. Ireland remains ready to assist further in the peace process in Nepal. In 2010 Irish Aid provided approximately €690,000 in funding to NGOs active in Nepal. This funding was primarily for long-term development work in a variety of sectors, including governance, women’s rights and education. A small amount of funding was also provided for disaster risk reduction through Irish Aid’s Emergency and Recovery funding mechanisms. While EU Foreign Ministers have not specifically discussed Nepal recently, senior official regularly discuss and review developments there.

Diplomatic Representations 61. Deputy Seán Ó Fearghaíl asked the Tánaiste and Minister for Foreign Affairs and Trade the contacts that he has had with the Israeli authorities and the engagement he has been involved in with his European counterparts with regards to the humanitarian aid flotilla journeying to Gaza; and if he will make a statement on the matter. [17786/11]

Tánaiste and Minister for Foreign Affairs and Trade (Deputy Eamon Gilmore): As the Deputy will be aware, I have previously made clear that, while I have every respect and sympathy for the motives of those involved, I could not support citizens engaging in actions where there is a real risk of harm or injury, in this case by attempting to break a naval blockade. I understand the ships intending to form up into a new flotilla may put to sea shortly, including an Irish owned ship and some 25 — 30 Irish citizens, and that they expect to be approaching the waters off Gaza within the next week. In a meeting last week with the Israeli Ambassador, which covered a number of issues, I made clear in relation to the flotilla that we expected Israel to exercise all possible restraint, and that any interception would be carried out in a peaceful manner so as to ensure the safety of our citizens and other participants. I asked him to convey these views to his authorities. We have previously conveyed the same messages by diplomatic channels, and we will continue to stress these points. Israel has indicated that it intends to avoid any repetition of the tragic events of last year. I believe the Irish participants in the flotilla are likewise committed to avoiding any use of violence, and the other participants have signalled the same intentions. I am hopeful therefore that these events may pass off without injury to anyone. The impending flotilla has formed part of the context of EU discussions on Gaza and the Middle East in recent months, and most partners have been predominantly concerned, as are we, with the safety of their citizens. I have to say that most have also considered that the flotilla, while well intentioned, is unwise and risks heightening tensions at a time of considerable instability in the region. Partners also recognise that, as I have stated previously, sailings to Gaza can never supply more than a fraction of the routine needs of the Territory, and the only real answer is to persuade Israel to fully open the land crossing points to normal traffic. The EU has repeatedly called on Israel to do so, but regrettably, while there have been some

154 Questions— 29 June 2011. Written Answers improvements, these have so far been wholly inadequate. A real opening of the crossings to normal traffic would make enterprises such as the flotilla redundant.

Official Engagements 62. Deputy Finian McGrath asked the Tánaiste and Minister for Foreign Affairs and Trade the number of formal and informal meetings he has had with the U.S. Ambassador. [17960/11]

Tánaiste and Minister for Foreign Affairs and Trade (Deputy Eamon Gilmore): I have had the opportunity to meet with Ambassador Dan Rooney on a number of occasions both formally and informally. Following my appointment to office, Ambassador Rooney paid a courtesy call on me in Iveagh House on Friday, 25 March. I met with Ambassador Rooney during President Obama’s visit to Ireland on 23 May, including at the bilateral meeting between the Taoiseach, Enda Kenny T.D. and President Obama at Farmleigh and at the public address by President Obama at College Green. I also met Ambassador Rooney at the State Dinner for Her Majesty Queen Elizabeth II in Dublin Castle on 18 May. My Department and I work very closely with Ambassador Rooney and his officials at the US Embassy. I have also met with his officials on a number of recent occasions including during the visits of the Congressional Sub-Committee on Europe and Eurasia, led by Congressman Dan Burton, on 16 May and during the visit of a Congressional group led by Senator Patrick Leahy on 3 June. I look forward to continued close contact with Ambassador Rooney and the US Embassy.

Public Sector Remuneration 63. Deputy Michael McGrath asked the Tánaiste and Minister for Foreign Affairs and Trade if he will list the number of positions under his control but outside of the civil service which will be affected by new salary caps; the specific cuts involved and any impact identified on the ability to recruit or to retain specific positions in the next 12 months. [17981/11]

Tánaiste and Minister for Foreign Affairs and Trade (Deputy Eamon Gilmore): There are no positions under my control but outside of the Civil Service which will be affected by new salary caps.

Public Procurement 64. Deputy Seán Conlan asked the Minister for Finance his plans to investigate and alter restrictively high turnover requirements for public procurement tenders, with specific regard to electrical e-tenders; and if he will make a statement on the matter. [17794/11]

Minister for Finance (Deputy Michael Noonan): The position is that whilst public bodies may use a prospective contractor’s turnover to assess a company’s financial capacity, there are no centrally imposed requirements for a minimum turnover. Such requirements would normally be developed on a case by case basis with reference to the specific needs of the contract. The Government recognises that the small and medium enterprise (SME) sector is very important to the economy and that public procurement can be a source of business for SMEs. In this regard, my Department has issued public procurement guidelines to public bodies which are aimed at facilitating greater participation of SMEs in public procurement opportunities. These guidelines are aimed at encouraging recently established firms, or firms with no previous experience of public contracts to tender for public projects. In relation to suitability criteria, public bodies are reminded that turnover levels set by them must be both justifiable and proportionate to the needs of the contract.

155 Questions— 29 June 2011. Written Answers

Pension Provisions 65. Deputy Finian McGrath asked the Minister for Finance the position regarding a pension in respect of a person (details supplied). [17808/11]

Minister for Finance (Deputy Michael Noonan): I am not in a position to comment on the matter based on the information supplied with the question. I would advise that the individual concerned send all of the details of her pension plan and correspondence with the provider concerned (together with the details of her public service pension entitlements) to the Office of the Revenue Commissioners, Large Cases Division, Financial Services (Pensions), 2nd Floor, Nassau Street, Dublin 2 who will examine the issue and revert to her.

Departmental Expenditure 66. Deputy Finian McGrath asked the Minister for Finance the estimated cost of holding a referendum or multiple referenda [17965/11]

Minister for Finance (Deputy Michael Noonan) (Deputy Michael Noonan): The following table gives the cost of the two most recent referendums: Lisbon 1, 12 June 2008 and Lisbon 2, 2 October 2009.

Lisbon I Lisbon II

€(000) €(000)

To conduct the election including the printing of ballot papers 13,641 12,662 and supply/delivery of election material the bulk of this figure is paid to Returning Officers’ to conduct the election. Postal Expenses 3,540 1,703 Referendum Commission 4,990 3,096

Total Cost 22,171 17,461

The holding of a multiple question referendum would entail additional costs. Each question would entail a separate Referendum Commission and additional costs for conducting the count. There may be some economies of scale in procurement terms; the cost of a referendum commission is directly related to the complexity of the referendum proposal and the nature and scale of the information campaign necessary to ensure that the public are informed of the proposal. While it would not be possible at present to accurately calculate this additional cost, economies of scale and the fact that many costs would not be duplicated, would indicate that additional costs would be far less than for separate referendums.

Tax Code 67. Deputy Pearse Doherty asked the Minister for Finance the savings that would accrue to the State from the introduction of a 45% charge levied on all public sector incomes above €100,000 per annum, with the charge being applied to every euro above the first €100,000 earned. [17678/11]

68. Deputy Pearse Doherty asked the Minister for Finance the savings that would accrue to the State from the introduction of a 45% charge levied on all public sector incomes above €100,000 per annum, with the charge being applied to every euro above the first €100,000 earned. [17679/11] 156 Questions— 29 June 2011. Written Answers

Minister for Finance (Deputy Michael Noonan): I propose to take Questions Nos. 67 and 68 together. The estimated full year savings through the application of a 40% and 45% charge on all earnings above €100,000 of Public Servants would be some €105m and €120m respectively. The estimate takes account of the reductions in pay arising from the Financial Emergency Measures in the Public Interest (No. 2) Act, 2009, but does not take account of any offsetting reductions in taxes and levies. The estimate does not include staff of commercial State -sponsored bodies since the Minister for Finance is not responsible for setting the rate of pay for employees in the commercial state sector.

National Treasury Management Agency 69. Deputy Michael McGrath asked the Minister for Finance if he will provide details of the number of persons employed by the National Treasury Management Agency including NAMA who currently have a basic salary in excess of €100,000; the number in excess of €150,000; the number in excess of €200,000; and the number in excess of €250,000. [17681/11]

71. Deputy Michael McGrath asked the Minister for Finance if he will provide details of the number of persons employed by the National Treasury Management Agency including NAMA who received bonus payments in 2010; the overall amount that was paid and the average payment to the employees in question. [17685/11]

73. Deputy Michael McGrath asked the Minister for Finance the number of persons employed by the National Treasury Management Agency including NAMA who took a reduction in their basic salary in the past twelve months; and the overall aggregate amount of the reductions incurred by persons employed by the organisation. [17688/11]

76. Deputy Michael McGrath asked the Minister for Finance the overall number of persons employed by the National Treasury Management Agency including NAMA; and the average salary which was paid in respect of 2010. [17692/11]

Minister for Finance (Deputy Michael Noonan): I propose to take Questions Nos. 69, 71, 73 and 76 together. Under the National Treasury Management Agency (NTMA) business model, its remuneration structure (including for staff employed on NAMA work) is such that there are no general pay grades and no pay scales and all staff are on individually-negotiated contracts. The legislation which established the NTMA positioned it outside of the wider public service structures with operational freedom to negotiate market competitive salaries so that it would have, for example, the flexibility to recruit specialists in mid-career from the private sector. This business model has been essential in enabling the NTMA to staff itself with the necessary technical expertise to successfully carry out the financial and risk management functions which have been assigned to it. In the case of NAMA, most people are employed on the basis of specified purpose contracts, which means that as NAMA winds down and certain functions cease, their term of employment will come to an end. The NTMA Senior Management team — nine people including the Chief Executives of the NTMA, NDFA and NAMA — all waived their performance-related payments due for 2010. The average payment made by the NTMA in February 2011 in respect of performance in 2010 was €7,681. The overall amount paid was €1,981,760, representing 6.6% of the NTMA’s overall payroll. Payments were made to 258 staff members. Details of NTMA salaries as at 28 June 2011 by salary band are follows:

157 Questions— 29 June 2011. Written Answers

[Deputy Michael Noonan.]

Salary Band Number of Staff

Up to €100,000 235 From €100,001 to €150,000 78 From €150,001 to €200,000 3 Over €250,000 14

There are currently 357 people employed in the NTMA. There were 306 people employed in the Agency at end-2010. The average salary in 2010 was €97,992. Given the nature of its activities and its flat organisational structure, the NTMA staffing complement is primarily composed of people with professional and technical skill sets possessing substantial private-sector experience and it employs comparatively few administrative support staff. NTMA staff members are subject to the Public Service Pension Deduction. While the NTMA was not subject to the Financial Measures in the Public Interest (No. 2) Act 2009 which applied reductions to public service salaries, in 2010 it secured a reduction of some 8% in overall payroll costs, on a like-for-like basis compared with the previous year. In 2011, it has secured a further reduction of almost 3% in overall payroll costs, again on a like-for-like basis.

Banking Sector Remuneration 70. Deputy Michael McGrath asked the Minister for Finance the number of persons employed by the Central Bank including the Financial Regulator who currently have a basic salary in excess of €100,000; the number in excess of €150,000; the number in excess of €200,000; and the number in excess of €250,000. [17682/11]

72. Deputy Michael McGrath asked the Minister for Finance the number of persons employed by the Central Bank including the Financial Regulator who received bonus payments in 2010; the overall amount that was paid and the average payment to the employees in question. [17686/11]

74. Deputy Michael McGrath asked the Minister for Finance if he will provide details of the number of persons employed by the Central Bank including the Financial Regulator who took a reduction in their basic salary in the past twelve months; and the overall aggregate amount of the reductions incurred by persons employed by the organisation. [17690/11]

75. Deputy Michael McGrath asked the Minister for Finance if he will provide details of the number of persons employed by the Central Bank including the Financial Regulator who took a reduction in their basic salary in the past twelve months; and the overall aggregate amount of the reductions incurred by persons employed by the organisation.

Minister for Finance (Deputy Michael Noonan): I propose to take Questions Nos. 70, 72, 74 and 75 together. Under the Central Bank Act 1942, the employment of staff at the Central Bank and their terms and conditions are matters for the Central Bank Commission. However, I have been informed by the Central Bank of the information set out in the tables below. The information includes information relating to the Irish Financial Services Regulatory Authority prior to 1 October 2010. 158 Questions— 29 June 2011. Written Answers

The following table sets out the total number of staff of the Bank who currently have a basic salary in excess of €100,000, the number in excess of €150,000, the number in excess of €200,000 and the number in excess of €250,000.

Salary Ranges Central Bank Staff Total

€100,000 to €149,999 92 €150,000 to €199,999 18 €200,000 to €249,999 1 €250,000 + 3

The Central Bank publishes information related to remuneration of executive and non-executive directors in its annual report. No bonuses were paid by the Central Bank in 2010. I have been informed by the Central Bank that salary reductions and pension-related deductions were dealt with under the Financial Emergency Measures in the Public Interest Acts and these took effect prior to the period to which the Deputy refers. As outlined in the Central Bank’s 2010 Annual Report, the Governor’s salary was reduced by 20% from 1 February 2010 and he also took an additional further voluntary salary reduction of 20%. The salaries of the Deputy Governor (Central Banking) and Deputy Governor (Financial Regulation) were reduced by 15% in 2010. The following table sets out the number of persons employed by the Central Bank in 2010 and the average salary.

Total

Total Number Employed in 2010 Average of 1,114 (full time equivalent) staff employed for 2010. Average basic salary for 2010 €60,724.

Question No. 71 answered with Question No. 69.

Question No. 72 answered with Question No. 70.

Question No. 73 answered with Question No. 69.

Question Nos. 74 and 75 answered with Question No. 70.

Question No. 76 answered with Question No. 69.

Public Service Contracts 77. Deputy Mary Lou McDonald asked the Minister for Finance if he deems it appropriate for public servants to take up new positions within the public service on retirement from a previous position whilst in receipt of a pension; and his view that appropriately qualified unemployed persons should be given the opportunity to take up work within the public and civil sector as it arises. [17705/11]

Minister for Finance (Deputy Michael Noonan): In general, recruitment to public service posts is on the basis of competition open to all eligible candidates. However, to respond to particular needs, former civil and public servants may be re-engaged in areas where specific expertise is required for a short, fixed period and where they provide a level of knowledge, experience and background that is compatible with requirements. If former civil or public 159 Questions— 29 June 2011. Written Answers

[Deputy Michael Noonan.] servants are re-engaged, their pension may be subject to abatement. This means they cannot receive more by way of pension and salary than they would have received had they remained in their former employment. Former civil and public servants who retired under the Incen- tivised Early Retirement Scheme are not permitted to take up any employment in the same sector from which they have retired, other than in exceptional circumstances. In the case of the recent HSE Voluntary Early Retirement scheme, it is a specific condition of the scheme that people availing of the scheme will not be eligible for re-employment in the public health sector or in the wider public service or in a body wholly or mainly funded from public moneys. The same prohibition on re-employment applies under the HSE Voluntary Redundancy scheme also, except that the prohibition will be for a period of seven years, after which time any re-employment will require the approval of the Minister for Finance. These provisions also apply to re-employment on a contract for service basis in respect of all schemes. There are a number of programmes such as the FÁS Work Placement Programme which provide opportunities within the public service for unemployed persons to retain their skill levels and/or secure work experience that will assist them in getting a job. The FÁS Programme comprises two streams, one for graduates and one for other unemployed persons. The Programme is available to the civil and public service.

Banking Sector Regulation 78. Deputy Mary Lou McDonald asked the Minister for Finance if he deems it appropriate for public servants to take up new positions within the public service on retirement from a previous position whilst in receipt of a pension; and his view that appropriately qualified unemployed persons should be given the opportunity to take up work within the public and civil sector as it arises.

Minister for Finance (Deputy Michael Noonan): The interest rates that financial institutions operating in Ireland grant or charge to customers are determined as a result of a commercial decision by the institutions concerned. The interest rates in question are determined by a broad range of factors such as the European Central Bank base rates, deposit rates, market funding costs, the competitive environment and an institution’s overall funding. The Government must maintain a balance between the support provided for individual banks and financial service providers generally through the bank guarantee scheme, other financial support incentives and broader public policy provisions, while, at the same time, ensuring that the day-to-day running of these institutions has regard to competition, market conditions and the need to develop stable commercial enterprises to meet the long term credit needs of households and businesses in the Irish economy.

Post Office Savings Bonds 79. Deputy Mary Lou McDonald asked the Minister for Finance if he deems it appropriate for public servants to take up new positions within the public service on retirement from a previous position whilst in receipt of a pension; and his view that appropriately qualified unemployed persons should be given the opportunity to take up work within the public and civil sector as it arises.

Minister for Finance (Deputy Michael Noonan): All State Savings money is placed directly with the Irish Government. Repayment of all NTMA State Savings money, which includes principal, interest and bonus payments if due (or, in respect of Prize Bonds, cash prizes), is a direct, unconditional obligation of the Government of Ireland. State Savings is the brand name used by the National Treasury Management Agency (NTMA) to describe the range of savings

160 Questions— 29 June 2011. Written Answers products offered by the NTMA to personal savers. The suite of State Savings products includes savings certificates, savings bonds, prize bonds, national solidarity bond, instalment savings and deposit accounts such as the ordinary deposit account and the deposit account plus. An Post and the Prize Bond Company are agents of the NTMA for the operation of the State Savings schemes. However, neither An Post nor the Prize Bond Company retain or manage any State Savings money. All State Savings money is a part of the national debt which is under the management of the National Treasury Management Agency. Ireland has never contemplated the possibility of defaulting on its sovereign debt and this position has been restated on several occasions. The Government, without any question, will fully honour all its legal obligations to its creditors and has no intention whatsoever of allowing a default. NTMA State Savings products have been an important and dependable component of Government borrowing for many years and make a valuable contribution to the national finances.

Public Sector Staff 80. Deputy Mary Lou McDonald asked the Minister for Finance further to Parliamentary Question No 83 of 21 June 2011 if he will provide in tabular format a comprehensive breakdown of each public service sector employment control framework up to an including 2014 [17709/11]

Minister for Finance (Deputy Michael Noonan): I refer the Deputy to my answer to Question No. 83 of 21 June 2011. As soon as the information requested is available, full details up to and including 2014 will be published on the website of the Department of Public Expenditure and Reform.

Tax Code 81. Deputy Ciarán Lynch asked the Minister for Finance the progress that has been made regarding the introduction of provisions to ensure compliance with the European Court of Justice ruling regarding VAT (details supplied); and if he will make a statement on the matter. [17710/11]

Minister for Finance (Deputy Michael Noonan): In its ruling of 16 July 2009 in Case C- 554/07, the European Court of Justice found that Ireland had failed to correctly transpose EU VAT law regarding public bodies including local authorities. In order to comply with the ruling, it was necessary to make public bodies subject to VAT and the Finance Act 2010 included a provision to this end. This provision is now contained in Section 14 of the Value-Added Tax Consolidation Act, 2010. In effect, this means that from 1 July 2010 certain goods and services provided by local authorities are subject to VAT, especially where competition arises with private sector providers who have to apply VAT. Services that are liable to VAT include refuse collection, landfill and recycling services; off-street parking; toll roads; and rent from certain lettings of commercial property. It should be noted that such services were already subject to VAT if provided by a private operator. The standard or the reduced VAT rate applies as appropriate. Refuse collection is subject to the reduced VAT rate of 13.5% and off-street parking fees are liable to VAT at the standard rate of 21%. However, other services operated by public bodies including local authorities are not subject to VAT as they are otherwise exempted. In that context, for example, the supply of water, education, health and passenger transport services are not subject to VAT as they are otherwise exempted from VAT. Examples of the types of activities by public bodies where a charge applies, which will remain outside the scope of VAT, include parking fines, fees for passports, driving licences, development levies, casual trading licenses and certificates of compliance. These are purely regulatory functions.

161 Questions— 29 June 2011. Written Answers

Tax Reliefs 82. Deputy Eric Byrne asked the Minister for Finance the position regarding the submission and subsequent delay in processing of a Med 1 form in respect of a person (details supplied); when this claim will be processed; the reason the Revenue Commissioners have not replied to any correspondence regarding same; and if he will expedite the matter [17717/11]

Minister for Finance (Deputy Michael Noonan): I am informed by the Revenue Commis- sioners that a PAYE Balancing Statement granting relief in respect of Health Expenses claimed on a form MED 1 submitted for 2010 was issued to the person in question on 14 January 2011. An additional a copy of the PAYE Balancing Statement was issued to the person in question on 4 February 2011. I am advised by the Revenue Commissioners that they have no record of receiving any representations in April or June 2011 in respect of this case. If the Deputy has any further information, he may wish to contact the Revenue Commissioners at 1890 333 425.

Flood Relief 83. Deputy Michael McCarthy asked the Minister for Finance if he will issue a progress report on the Bandon flood relief scheme in County Cork; the timescale for the completion of the works; and if he will make a statement on the matter. [17726/11]

Deputy Brian Hayes: The Office of Public Works commissioned both Design Consultants and Environmental Consultants in late 2010 to address the flooding problems which exist in Bandon and to develop possible solutions which are both economically viable and environmen- tally acceptable. A public information gathering day was held in January of this year which was very successful as a tremendous response was received from the public on the day. The study being undertaken is developing the possible options for dealing with the problem. It is intended to hold a second public information day in late August or early September which will present to the public the emerging preferred option along with the other options considered. Following the completion of the feasibility study, the Office of Public Works will take the proposed scheme, if one has emerged, to full public exhibition, as required under the Arterial Drainage Acts. The exhibition will take place over a four-week period and is programmed to take place before the end of the year. If the proposals are accepted locally, the next stage of the process will be to undertake the detailed design of the scheme and the procurement of a civil works contractor. It is not possible to say at this stage when any works might be completed, as any decisions on the progression of a Flood Relief Scheme for Bandon will be taken in the context of the Government’s current review of its Capital expenditure profile to 2016.

Public Sector Recruitment 84. Deputy Seán Kenny asked the Minister for Finance if there is any new recruitment planned or under way in the Revenue Commissioners. [17741/11]

Minister for Finance (Deputy Michael Noonan): I am advised by the Revenue Commissioners that no recruitment campaigns are currently under way. In accordance with the Revenue Com- missioners action plan under the Public Service Agreement, they are planning in the coming months, subject to sanction, to fill crucial skills gaps and strengthen capability in the organisation through targeted recruitment, as they did previously in 2010.

162 Questions— 29 June 2011. Written Answers

Tax Yield 85. Deputy Seán Kenny asked the Minister for Finance the amount generated to the Exchequer through the sale of cigarettes and tobacco products for the years 2008, 2009, 2010 and to date in 2011. [17742/11]

Minister for Finance (Deputy Michael Noonan): I am informed by the Revenue Commis- sioners that the yield from all tobacco products for the years 2008-2010 and the first five months of 2011 is as follows:

Year Tobacco Products Tax VAT (estimated)

2008 €1,171 million €337 million 2009 €1,216.5 million €336 million 2010 €1,159.6 million €318 million 2011 (Jan to May) €253.7 million €128 million

Official Engagements 86. Deputy Seán Kenny asked the Minister for Finance if he will report on his recent visit to the US; the number of persons he met during the visit; the number of officials who accompanied him on the visit and the cost of the trip to his Department to date. [17743/11]

Minister for Finance (Deputy Michael Noonan): On my recent visit to New York and Wash- ington, I had a series of economic, financial, media and cultural engagements. These included meetings with the IDA, Enterprise Ireland, senior officials and representatives from various client companies and certain target IDA companies. While in New York, my engagements included meetings with legal and financial market advisers including an investor lunch facilitated by the NTMA, a lunch hosted by the Federal Reserve Bank of New York and an official breakfast meeting at the New York Stock Exchange. The purpose of these meetings was to have an exchange of views on the global and European financial situation while also addressing Irish-specific issues. I outlined the prospects for the Irish economy and the measures taken by Government to restructure the Irish banking system and promote economic growth. I also toured Ireland House in New York and met officials from the various organisations located there. I also participated in Bloomsday celebrations. My visit to Washington involved a series of meetings with the IMF, World Bank, US Treasury and the US Chamber of Commerce. A formal reception was also hosted by the Irish Ambassa- dor where I had the opportunity to meet a wide selection of business people, Congressmen and other interested parties. Also while in the US, I had various press engagements including interviews with CNBC and Bloomberg. In line with common practice, I do not propose to provide the names of individuals who attended various meetings or engagements. This could jeopardise potential investment and, for example, hamper the ability of organisations such as the IDA to develop confidential relationships with target companies. I was accompanied on the trip by my Department’s Second Secretary with responsibility for Bank Restructuring, Assistant Secretary in charge Budget and Economic matters, Press Officer, and my Special Advisor and Private Secretary. The full costs of the trip are not yet available as we are awaiting details from the Department of Foreign Affairs regarding accommodation and car hire costs. The costs of flights for myself and those who accompanied me on the trip amounted to €4,926.74.

163 Questions— 29 June 2011. Written Answers

EU Negotiations 87. Deputy John Paul Phelan asked the Minister for Finance the progress of on-going discussions with European officials on the terms of the Irish bailout and interest rate; and if he will make a statement on the matter. [17756/11]

Minister for Finance (Deputy Michael Noonan): As the Deputy will be aware, the Euro area heads of state and government agreed in principle to a reduction in the interest margin charged to programme countries. This has been applied in respect of Greece and Portugal. However, a decision to apply it to Ireland’s loans has not yet been taken. This is because another Member State is asking Ireland to deliver a quid pro quo in return for an interest rate reduction in the form of a change in our Corporation Tax. However, we have made it clear that we will not agree to this. Contacts on interest rates are continuing at official level. I have raised it at EU Finance Ministers meetings and in bilateral meetings with my EU counterparts, most recently at the Luxembourg meetings of the Eurogroup/ECOFIN Council. Furthermore, this issue was raised in the recent contacts that the Taoiseach had with President Sarkozy on the margins of last week’s European Council meeting. While recognising that the European focus is on the difficulties currently facing Greece, this Government will continue to avail of every suitable opportunity to press our case for an interest rate reduction.

Public Sector Pay 88. Deputy Mary Lou McDonald asked the Minister for Finance the maximum basic salaries of new appointees to each of the commercial semi States following the Minister for Public Expenditure and Reform’s salary cap announcement on 22 June 2011, noting that the Minister’s announcement only included the general starting salary for new appointees [17764/11]

89. Deputy Mary Lou McDonald asked the Minister for Finance in view of the fact that the Minister for Public Expenditure and Reform has publically announced the Government’s intention to cap Commercial semi State pay at €250,000 with the exception of the ESB which will be capped at €318,083, the measures he will put in place to ensure that additional elements of chief executives’ remuneration packages are not bolstered to make up the fall in expected salary for new entrants once the caps are in place; and if he will detail each additional element of each entrants remuneration package. [17765/11]

Minister for Finance (Deputy Michael Noonan): I propose to take Questions Nos. 88 and 89 together. It is intended that new chief executive appointments will be made at the new appointments rate as outlined in the table that follows this reply. For incumbent CEOs the relevant “Hay” range, does not represent a pay scale — rather a single salary point within the range is sanctioned by the relevant Minister with the consent of the Minister of Public Expenditure and Reform. A board of a commercial State company may not increase the sanctioned salary point without the further sanction of the relevant Minister and the consent of the Minister of Public Expenditure and Reform. In imposing the pay ceilings for new appointees, the Government recognises that in a small number of cases exceptions may be necessary and appointments may need to be made above the minimum of the relevant range. Such exceptions will be limited to instances where the exception is for a role of substantial importance in the commercial State company and the person whose appointment is sought brings exceptional or scarce expertise and/or qualifications to the proposed role. Any such exception will be subject to my prior approval.

164 Questions— 29 June 2011. Written Answers

The remuneration arrangements for chief executives includes salary, pension, performance- related pay and other conditions (e.g. the provision of a car) and are specified in each employment contract which is subject, under statute, to the agreement of the relevant Minister and the Minister for Public Expenditure and Reform. In this context, boards may not introduce new or enhance existing elements of the CEOs’ remuneration without obtaining prior Minis- terial sanction. The annual remuneration of CEOs is published in the annual reports of commercial State companies. The performance-related pay arrangements for this sector are, as agreed by the Government some years back, for up to 35% of salary with 10% relating to multi-annual objectives and medium to long-term targets. The Government has decided I should review the current performance schemes for chief executive of commercial State companies in conjunction with Departments with such companies under their aegis. In the meantime, bonus payments to CEOs should not be paid.

Salary Range for newly apointed CEOs of Commercial State Sponsored Bodies

Name of Organisation Hay Range w.e.f. 01/09/08 New Appointments Rate

Min Max

ESB €415,795 €519,745 €318,083 An Post €314,311 €392,862 €240,448 CIE €314,311 €392,862 €240,448 Dublin Airport Authority €287,413 €359,320 €219,871 RTE €287,413 €359,320 €219,871 Coillte Teoranta €249,692 €312,061 €191,014 VHI €249,692 €312,061 €191,014 Bord Gais Éireann €249,692 €312,061 €191,014 Iarnrod Éireann €249,692 €312,061 €191,014 Bord na Mona €249,692 €312,061 €191,014 Irish Aviation Authority €229,867 €287,306 €176,000 Bus Éireann €211,005 €263,730 €167,116 Bus Átha Cliath €211,005 €263,730 €167,116 Eirgrid €200,075 €250,121 €158,459 Dublin Port Company €173,927 €217,435 €144,012 TG4 €168,000 €210,000 €139,104 Horse Racing Ireland €165,889 €207,362 €137,356 Railway Procurement Agency €165,889 €207,362 €137,356 Bord na gCon €160,531 €200,611 €132,920 Cork Port Company €151,101 €188,822 €125,112 Dun Laoghaire Harbour Company €133,419 €166,747 €110,569 Irish National Stud €133,419 €166,747 €110,569 Waterford Port Company €97,626 €122,059 €81,577 Shannon/Foynes Port Company €97,626 €122,059 €81,577 Drogheda Port Company €97,626 €122,059 €81,577 Galway Harbour Company €97,626 €122,059 €81,577 Dundalk Port Company €84,338 €105,449 €70,814 New Ross Port Company €69,013 €86,267 €58,204 Wicklow Port Company €60,654 €75,872 €51,245

165 Questions— 29 June 2011. Written Answers

Tax Code 90. Deputy Maureen O’Sullivan asked the Minister for Finance if he will include yoga studios as sports and recreational facilities under the currently proposed Finance Bill, in view of the fact that the VAT reduction would have a positive impact on the expansion and growth of these facilities. [17798/11]

Minister for Finance (Deputy Michael Noonan): VAT is charged on the supply of goods and services, and the rate applying is subject to the requirements of EU VAT law with which Irish VAT law must comply. The provision of sporting facilities is among a number of tourist related services being made subject to a new temporary lower reduced VAT rate of 9% from 1 July next. All other goods and services that apply at a reduced rate will continue to be liable at the 13.5% rate. While the supply of sporting facilities will apply at the new temporary 9% rate, services consisting of the care of the human body supplied in the course of a health studio business or similar business, such as a yoga studio, will remain subject to the 13.5% rate. This arises from the fact that many of goods and services to which Ireland applies a reduced rate of VAT, including yoga classes, have their basis under an EU derogation that provides that as we applied a reduced rate to these items on 1 January 1991, we are entitled to continue applying that reduced rate to those items. However, this continuation of reduced rate application is conditional on the rate being no less than 12%. These are known as ‘parked’ items, and are provided for under Article 118 of the EU VAT Directive. As yoga studio services are part of these parked items, it is not possible for Ireland to apply the rate of 9% to them. It is for this reason that the Finance (No. 2) Act 2011 introduced a 9% VAT rate in respect of tourist activities such as restaurant and hotel accommodation services, while other tourist activities such as tour guide services and the short-term hire of cars, boat, caravans and mobile homes remain liable to VAT at the 13.5%. However, it should be noted that in the majority of EU Member States yoga studio services apply at their standard VAT rate of up to 25% in some cases, compared to 13.5% in Ireland.

National Asset Management Agency 91. Deputy Brian Stanley asked the Minister for Finance if there is a register of persons who have received payments or support from the National Assets Management Agency; the persons who have access to such a register; and if he will make a statement on the matter. [17928/11]

Minister for Finance (Deputy Michael Noonan): NAMA informs me that there is no register of persons who have received payments from the Agency. In the normal course of its operations, NAMA advances funds to debtors for working capital purposes or to enable projects to be completed. Over €800m has been advanced to debtors for these purposes since March 2010. NAMA cannot disclose the names of individual debtors because companies and individuals whose loans have transferred to NAMA and who are meeting their obligations are entitled to have this information kept confidential. NAMA is prohibited under Section 202 of the Act from disclosing confidential information, relating to debtors. Furthermore, Section 99 of the Act provides that, on acquisition of a loan, NAMA takes over the obligations of the participating institution under the loan, one of which is the contractual duty of confidentiality which the debtor enjoyed while still a customer of the participating institution. Information about individual debtors or guarantors is also protected against disclosure by the Data Protection Acts with which NAMA must comply as a data controller.

166 Questions— 29 June 2011. Written Answers

NAMA also makes payments to service providers who provide services to it, including the participating institutions as servicers of NAMA loans, property valuers, law firms and loan valuers, among others. A list of service providers who have been appointed to NAMA panels is available on www.nama.ie. Each of these panels has been established following public procurement processes which are designed to obtain the most competitive fee pricing arrangements for the services concerned.

92. Deputy Brian Stanley asked the Minister for Finance the number of persons who have previously been declared bankrupt who are receiving support of payments from the National Assets Management Agency; the level of support or payment each person has received for their business broken down on a monthly basis since the establishment of NAMA; the location of these businesses; and if he will make a statement on the matter. [17929/11]

Minister for Finance (Deputy Michael Noonan): I assume that the Deputy is referring to NAMA debtors. A register of bankrupts is available at the Office of the Examiner of the High Court and I am advised by NAMA that bankruptcy searches are carried out by NAMA as a matter of course on any personal borrower/guarantor prior to the advance of new funds or on a restructure. Bankruptcy searches are also carried out prior to loan acquisition. If a debtor becomes bankrupt subsequently, NAMA is informed because of its status as a secured lender. NAMA cannot disclose the names or details of individual debtors because companies and individuals whose loans have transferred to NAMA and who are meeting their obligations are entitled to have this information kept confidential. I am informed by NAMA that in the case of debtors who have received advances from the agency for working or development capital purposes since March 2010, no information is publicly available on whether any of the debtors involved have previously been declared bankrupt. As regards discharged bankrupts, NAMA advises me that as long as a debtor is complying with their obligations to NAMA both under the NAMA Act and under the terms and conditions of their agreed business plan, the Agency does not concern itself whether that debtor is a discharged bankrupt or not. NAMA has a commercial remit to manage its portfolio of over €70 billion in nominal terms and it has to consider, on a case-by-case basis, whether it is better to leave a debtor in place to manage his business or to appoint an insolvency expert. Should NAMA not be satisfied as regards the viability of a debtor or should the debtor fail to co-operate fully with NAMA, the agency will take enforcement action against the debtor. To date it has approved the appointment of 57 receivers.

Tax Code 93. Deputy Ciara Conway asked the Minister for Finance the position regarding plans to tax lump sums payable to fire fighters upon retirement; if this taxation is dependent on years of service; if the tax will apply to the entire sum or a percentage thereof; the rate that will apply; when the tax will come into effect; and if he will make a statement on the matter. [17941/11]

Minister for Finance (Deputy Michael Noonan): There are no proposals to specifically subject lump sum retirement gratuities of retained fire fighters to income tax other than what applies to all taxpayers. Section 201 of the Taxes Consolidation Act 1997 and Schedule 3 to that Act set out the legislation in relation to the exemptions that apply to retirement gratuities, and the taxation of any balance after applying these exemptions. The same rules apply to all employees and office holders.

167 Questions— 29 June 2011. Written Answers

[Deputy Michael Noonan.]

Statutory redundancy payments are exempt from income tax. In addition, ex gratia redundancy payments or retirement gratuities in excess of the statutory redundancy amount are exempt from income tax up to certain limits, namely— • a basic exemption of €10,160 plus €765 per complete year of actual service in excess of the statutory redundancy payment;

• Standard Capital Superannuation Benefit i.e. 1/15th of the person’s annual income (average of the last three years) for each year of employment less any tax-free lump sum which is received or receivable under any approved or statutory pension scheme. It is open to the taxpayer to choose whichever relief is of most benefit. The basic exemption from income tax as outlined above can be further increased by up to €10,000 if the person is not a member of an occupational pension scheme. (This can only be claimed if the person has not made any claims in respect of a lump sum retirement gratuity received in the previous 10 tax years.) Any amount of redundancy payment or retirement gratuity in excess of whichever exemption applies is liable to income tax. However, there is a further relief, called “top slicing” relief, which ensures that the lump sum is not taxed at a rate higher than the employee’s average rate of tax for the three years prior to termination. The Finance Act 2011 introduced a provision to restrict the tax-free element of ex-gratia redundancy payments or retirement gratuities to a lifetime limit of €200,000 with effect from 1 January 2011. If the Deputy needs any further clarification in relation to an individual case the Revenue Commissioners will be happy to assist.

Banking Sector 94. Deputy Michael McGrath asked the Minister for Finance the position regarding the appointment of a new chief executive officer for Allied Irish Bank; and if he will make a statement on the matter. [17942/11]

95. Deputy Michael McGrath asked the Minister for Finance if he will ensure that the salary cap of €500,000 will apply in the case of the appointment of a new chief executive officer at Allied Irish Bank. [17943/11]

Minister for Finance (Deputy Michael Noonan): I propose to take Questions Nos. 94 and 95 together. The search for a new Chief Executive Officer (CEO) of Allied Irish Banks is continuing. The Deputy will be aware from my statement to the House on 31 March 2011 that this bank is to become one of the two domestic universal full-service banks to act as core pillars to the Irish banking system. How to achieve this objective is the effective job description for the position. Presently, the Executive Chairman combines both positions of Chairman and CEO as authorised by the previous Government. I am anxious to resolve this situation as it does not accord with good corporate governance practice. It would be the intention of the Government that the cap of €500,000 would be honoured. I am aware that suggestions have been made that this cap may cause difficulties with recruitment

168 Questions— 29 June 2011. Written Answers to the position at a time when we are seeking to have the best person available with a view to managing the State’s investment and achieving our objectives — different conditions now per- tain than when the cap was introduced in March 2009. Nevertheless, as has been stated publicly by the Taoiseach, an exceptionally compelling case would have to be made for the Government to consider setting aside this cap taking account of the recent decision on the pay ceilings for CEOs of Semi States and Senior Public Sector posts and the need for social solidarity to be shown by all individuals and sectors for the good of the nation and its recovery from the present challenging circumstances.

EU-IMF Fund 96. Deputy Michael McGrath asked the Minister for Finance if dates have been set for the next quarterly review by the troika of the EU/IMF Programme; and if he will make a statement on the matter. [17944/11]

Minister for Finance (Deputy Michael Noonan): Part of the conditions of the EU-IMF Prog- ramme of Financial Support for Ireland is that there should be quarterly reviews of the programme to assess progress against the agreed targets. The Review mission comprises a series of meetings to evaluate all the elements of the programme including fiscal developments, the macroeconomic outlook, progress on commitments in the restructuring of the financial sector and structural reform. These meetings, which are ongoing, range from technical discussions at official level to policy discussions at senior official and political level. Following the Review Mission, the staff of the IMF and the European Commission Services prepare staff reports for consideration and approval, respectively by the IMF Executive Board and Eurogroup/ECOFIN at subsequent meetings. This represents the completion of the review process. The mission element of the third Review takes place between the 6 and 15 July 2011. It is expected that the Executive Board and Eurogroup/ECOFIN consideration will take place in late August and early September.

Banking Sector Regulation 97. Deputy Michael McGrath asked the Minister for Finance the progress that has been made on the Programme for Government commitment to force banks to absorb a 0.25% interest rate increase by the European Central Bank; and if he will make a statement on the matter. [17945/11]

Minister for Finance (Deputy Michael Noonan): The Deputy is reminded of the exact terms of the programme for Government:

The Government will examine a number of χ proposals, including χ directing any mortgage provider in receipt of State support to present Government with a plan of how it intends to cut its costs, over and above existing plans, in a fair manner by a sufficient amount to forego a 25 basis point increase on their variable rate mortgage.

The Government has published a comprehensive programme setting out the goals to be achieved over the lifetime of the current Dail. Items in the programme will be addressed in a measured way and prioritised during the five year term. As part of the restructuring and recapitalisation, the banks are engaging in ambitious cost reduction plans which are already well under way. The effect of these cost reductions will be to improve operating margins and permit the banks to better absorb any future raises in funding

169 Questions— 29 June 2011. Written Answers

[Deputy Michael Noonan.] costs without passing them on to customers or to indeed pass the savings onto mortgage customers. The Government remains in consultation with the banks in connection with the more significant parts of these plans including a significant reduction of employee numbers.

Tax Reliefs 98. Deputy Michael McGrath asked the Minister for Finance when he plans to implement the Programme for Government commitment to increase the mortgage interest relief available to persons who purchased their principal private residence between 2004 and 2008; and if he will make a statement on the matter. [17946/11]

100. Deputy Billy Timmins asked the Minister for Finance if he will be making a statement this month regarding mortgage interest relief which promised the increase of mortgage interest relief to 30% for first time buyers in 2004-08 financing it in part by bringing forward the abolition of relief for new buyers from June 2011; and if he will make a statement on the matter. [17967/11]

Minister for Finance (Deputy Michael Noonan): I propose to take Questions Nos. 98 and 100 together. The position is that there is a commitment in the Programme for Government to help homeowners in distress. The Government will examine a number of proposals in relation to this commitment. One of these proposals relates to increasing mortgage interest relief to 30% for First Time Buyers who bought between 2004 and 2008 and to finance this in part by abolishing mortgage interest relief for new buyers. When this proposal has been thoroughly examined, I will decide on the appropriate action to be taken. However, any measures will not be introduced before Budget 2012.

Public Sector Staff 99. Deputy Richard Boyd Barrett asked the Minister for Finance if he will provide a full break down by sector, health, education, localΛauthority and so onΛof numbers of employees currently in the public sector and the way that compares to March 2008 the beginning of theΛmoratoriumΛon public sector recruitment. [17955/11]

Minister for Finance (Deputy Michael Noonan): The moratorium on public sector recruitment began at the end of March 2009. The following table sets out the changes in numbers serving by sector from December 2008 to the end March 2011.

2008 2011

Qtr 4 Qtr 1 Change from Q4 2008 to Q1 2011 Civil Service 38,817.38 36,762.98 —2,054.40 Defence Sector 11,265.00 10,444.60 —820.40 Education Sector 95,024.34 93,606.91 —1,417.43 Health Sector 111,025.30 105,664.22 —5,361.08 Justice Sector 15,691.50 14,686.39 —1,005.11 Local Authorities 35,007.53 30,416.26 —4,591.27 NCSA 13,060.41 11,875.62 —1,184.79

Total 319,891.46 303,456.98 —16,434.48

170 Questions— 29 June 2011. Written Answers

Question No. 100 answered with Question No. 98.

101. Deputy Michael McGrath asked the Minister for Finance if he will list the number of positions under his control but outside of the civil service which will be affected by new salary caps; the specific cuts involved and any impact identified on the ability to recruit or to retain specific positions in the next 12 months. [17980/11]

Minister for Finance (Deputy Michael Noonan): The Minister for Public Expenditure and Reform, Brendan Howlin, T.D has announced the introduction of pay ceilings for higher posts across the public service and for CEO posts in Commercial State Companies. The Minister considers that CEO pay will be reduced in a proportionate manner to include— • a general pay ceiling of €200,000 for future appointments to higher positions across the public service; • a general pay ceiling of €250,000 for future appointments to CEO posts within Commer- cial State Companies. While the above provisions will apply to new appointments to posts, the Government has given detailed consideration to the potential legal and contractual issues arising from the imposition of an immediate reduction of salaries on current incumbents (other than the Judiciary) whose salaries are in excess of the proposed salary ceilings. The Government has decided to seek, in the first instance, voluntary waivers of salary of 15%, or by a lesser amount if the application of the full 15% reduction would bring the salary levels of such individuals to below the proposed pay ceiling of, €200,000 for the public service and €250,000 for CEOs of Commercial State Companies. In imposing the pay ceilings for new appointees, the Government recognises that in a small number of cases exceptions may be necessary. Such exceptions will be limited to instances where the exception is for a role of substantial importance in the public service or a Commercial State Company and the person whose appointment is sought brings exceptional or scarce expertise and/or qualifications to the proposed role. Any such exceptions are subject to the prior approval of the Minister for Public Expenditure and Reform. A review of the current system of Performance Related Award Schemes for CEOs of Com- mercial State Companies in conjunction with Departments with Commercial State Companies under their aegis to consider whether it would be appropriate to amend the operation of the Schemes and to provide for more direct input and oversight by Ministers is also proposed. The NTMA and the entities in the NTMA group (State Claims Agency, National Pensions Reserve Fund, National Development Finance Agency and National Assets Management Agency) are not covered by caps on salary.

Departmental Reports 102. Deputy Mary Lou McDonald asked the Minister for Finance if he will confirm that it is not his Department’s intention to publish the Comprehensive Spending Review. [17991/11]

Minister for Finance (Deputy Michael Noonan): The results of the Comprehensive Review process will be brought before Government for consideration in the autumn as part of the annual Budget and Estimates process. The question of publication of the outcome of the Com- prehensive Review in respect of each Department will arise for consideration in that overall context.

171 Questions— 29 June 2011. Written Answers

Employment Support Services 103. Deputy John Lyons asked the Minister for Education and Skills the number of persons under the age of 25 years on social welfare; the number who are in training or education; the number who have not taken up a training or education place; the number waiting on a place in training or education; and if he will make a statement on the matter. [17933/11]

Minister of State at the Department of Education and Skills (Deputy Ciarán Cannon): My Department understands from the Department of Social Protection that the number of persons under the age of 25 years currently in receipt of Jobseeker’s Supports, i.e. Jobseeker’s Benefit and Jobseeker’s Allowance, is 69,037. • As at end May 2011, there were 21, 953 participants on FÁS training courses. Of these, my Department understands that a total of 9,668 were under 25 years of age. • The total number under the age of 25 currently on waiting lists for FÁS training courses is 7,924. • 40,587 learners under 25 years of age are currently availing of Adult and Further Edu- cation programmes funded by my Department and operated mainly by Vocational Edu- cation Committees (VECs). In relation to the Higher Education system, I understand from the HEA that it can only provide actual numbers for the 2009/10 academic year in relation to persons who under the age of 25 years. In that regard, the overall number of students under 25 years of age for Institutes of Technology and Universities for the year 2009/2010 was 128,444. The recent Jobs Initiative increased the number of training and education places available for the unemployed and my Department will continue to explore ways to increase the number of training and education places available for young people.

School Accommodation 104. Deputy John Lyons asked the Minister for Education and Skills the position regarding an application for the expansion and development of a school (details supplied) in Dublin; and if he will make a statement on the matter. [17680/11]

Minister for Education and Skills (Deputy Ruairí Quinn): The Deputy will be aware that in the context of making provision for the long term accommodation needs of the school in question, officials in my Department have conducted technical inspections of two properties at the request of the school authority. A proposal has been forwarded to the land owner for consideration. My Department is currently awaiting a response to this proposal. In the meantime, my Department has approved funding under the Emergency Works Scheme for works to the water main, roof and sewerage system.

School Staffing 105. Deputy Éamon Ó Cuív asked the Minister for Education and Skills the reason no alleviation posts were allocated to a school (details supplied) in County Galway in view of the large number of traveller pupils in the school and the fact that more than five full time equivalent post are being suppressed in the school; and if he will make a statement on the matter. [17702/11]

106. Deputy Éamon Ó Cuív asked the Minister for Education and Skills the criteria used to allocate alleviation posts to primary schools; and if he will make a statement on the matter. [17712/11]

172 Questions— 29 June 2011. Written Answers

Minister for Education and Skills (Deputy Ruairí Quinn): I propose to take Questions Nos. 105 and 106 together. Limited alleviation or adjustment measures have been provided to assist schools which have high concentrations of Traveller pupils who were previously supported by Resource Teacher for Travellers (RTT) posts. As the Deputy is aware, the decision to remove these posts was taken by the previous Fianna Fail — Green Party Government in last December’s Budget. In respect of primary schools with DEIS, (Delivering Equality of Opportunity in Schools) status, including the school in question, Traveller enrolments have now been included in the valid enrolment for the purpose of allocating additional staffing under DEIS from the 2011/12 school year. Following an adjustment in staffing levels to include pupils previously supported by RTT posts in the valid enrolment for the purpose of allocating additional staffing under DEIS, the school referred to by the Deputy has been allocated 2 additional teaching posts. Adjustment measures have therefore been applied in relation to this school.

Higher Education Grants 107. Deputy Noel Harrington asked the Minister for Education and Skills if he will review the vocational education committee grant application and appeal in respect of a person (details supplied) in County Cork; and if he will make a statement on the matter. [17724/11]

Minister for Education and Skills (Deputy Ruairí Quinn): The decision on eligibility for a student grant is a matter for a student’s grant awarding body. Where a grant awarding authority turns down an application and subsequently rejects an appeal, the applicant may appeal this decision to my Department. No appeal has been received by my Department from the student to date. A review of the case will be carried out as quickly as possible should an appeal be received.

108. Deputy Brian Stanley asked the Minister for Education and Skills his plans to introduce a third band of higher maintenance grant category in between the full adjacent and half adjacent qualifying distance between the student’s home and college to facilitate those who previously fell into the full adjacent grant category; and if he will make a statement on the matter. [17730/11]

Minister for Education and Skills (Deputy Ruairí Quinn): I regret that the economic circumstances of the country are such that I am not in a position to reverse or alter any of the changes to the student grant measures announced in Budget 2011 by the previous Fianna Fáil — Green Party Government. These changes included an increase in the qualifying distance criterion for the non-adjacent rate of grant. I understand the concerns of students with regard to the changes to the student grant schemes for the 2011-12 academic year and I will take account of these in considering any future changes as part of the budgetary process for 2012 and beyond, having regard to the position of the public finances.

School Staffing 109. Deputy Seán Kenny asked the Minister for Education and Skills the number of persons employed by him by grade and the pay scale by grade. [17738/11]

Minister for Education and Skills (Deputy Ruairí Quinn): The staff employed in my Depart- ment broken down by grade are set out in the following Table 1. The latest pay scales for non- administrative staff in my Department are set out in Table 2, which has been forwarded to the Deputy. The latest pay scales for General Service Grades which came into effect on 1 January

173 Questions— 29 June 2011. Written Answers

[Deputy Ruairí Quinn.] 2010 are set out in Circular 28/2009: Revision of pay of Civil Servants available at www.finance.gov.ie/documents/circulars.

NON-ADMINISTRATIVE STAFF

Grade WTE

Accountant 5 Advisory Counsel 2 Architectural Assistant 10 Architect 4.33 Auditor 1 Cleaner 12 Early Education Specialist 1 Engineer 3 General Operative 1 Head Services Officer 1 Deputy Chief Inspector 1 Chief Inspector 1 Assistant Chief Inspector 8 Post Primary Inspector 30.8 Senior Inspector 29 District Inspector 32 Divisional Inspector 28 Manager 3 Director of NEPS* 1 Psychologist 123.13 Regional Director 8 Senior Psychologist 36.33 Quantity Surveyor 4 Supervisor of Cleaners 1 Services Officer 17 Senior Architect 4.73 Senior Statistician** 1 Solicitor 1 Statistician 2 Civilian Driver 4 Telephonist 1

Total 377.32 * Paid equivalent to Deputy Chief Inspector ** Payscale Manager Education

ADMINISTRATIVE STAFF (incl.admin staff in NEPS and Inspectorate)

Grade WTE

Secretary General 1 Assistant Secretary General 8 Director 1 Principal Officers 38.7

174 Questions— 29 June 2011. Written Answers

Grade WTE

Assistant Principal 90 Higher Executive Officers 151.23 Employee Assistance Office (HEO equiv.) 1.00 AO 7.8 Executive Officer 260.39 Staff Officer 38.53 Clerical Officer 298.41 Special Advisor 1 Director of Communications 1 Personal Assistant 2 Personal Secretary 2

Total 902.06

Schools Refurbishment 110. Deputy Derek Keating asked the Minister for Education and Skills if he will consider giving priority to the application for summer work on a school (details supplied) in County Dublin. [17750/11]

Minister for Education and Skills (Deputy Ruairí Quinn): I can confirm that the school referred to by the Deputy applied to my Department for funding under the Summer Works Scheme 2011. Unfortunately, due to the scale of demand for funding under the scheme, it was not possible to grant aid all applications. As outlined in the Circular governing the operation of the scheme, applications for works in the higher categories of eligible works were prioritised and it was not possible to include the school referred to by the Deputy in the list of 453 successful schools that was announced on 30 March 2011 and in the further list of 374 schools that were successful under the Jobs Initiative. The school has been advised accordingly. The Deputy will be aware that a major capital project consisting of an extension and refurbishment is currently at an advanced stage of architectural planning. It is intended that the works which were the subject of the Summer Works application will be addressed within the context of this project.

Schools Building Projects 111. Deputy Jim Daly asked the Minister for Education and Skills the position regarding the proposed new secondary school application to be built in Skibbereen, County Cork; his views in relation to funding this development; and if he will make a statement on the matter. [17785/11]

Minister for Education and Skills (Deputy Ruairí Quinn): In September 2005, my Depart- ment announced the allocation of funding of €300 million for an Education PPP Programme comprising of 23 new post primary schools and 4 new primary schools under a major expansion of the Government’s Public Private Partnership Programme. The provision of the proposed new secondary school in Skibbereen was included in that announcement. The first bundle of schools comprising of Coláiste na Sionna, Banagher and Gallen Community School, Ferbane, Scoil Chriost Rí, Portlaoise and St. Mary’s CBS Portlaoise have been completed and occupied since September 2010. The second bundle of primary and post primary schools comprising Bantry Community College and Gaelscoil Bheanntraí, Co Cork, Kildare Town Community School, Abbeyfeale Community College, Athboy Community School and Wicklow Town Com- munity College are currently under construction and due to be completed in the 2nd half of 175 Questions— 29 June 2011. Written Answers

[Deputy Ruairí Quinn.] this year. The third bundle of schools comprising Athlone Community College, Ballinamore Community School, Doughiska Primary and post primary schools, Galway, Doon Community School, Limerick, Tramore Secondary School, Coláiste Ailigh, Letterkenny and Gorey Com- munity School is currently going through the procurement phase. Construction is due to commence on this bundle in the first quarter of 2012 with an expected completion date by September 2013. The provision of the school in Skibbereen will be considered for inclusion in future bundles of PPP schools. The make up and timing of school bundles in my Department’s PPP school building programme will be determined by in consultation with the National Development Finance Agency (NDFA). The issues to be considered in the timing and bundling of these schools include site availability for each school, geographical spread and the estimated total cost of the proposed school bundle.

112. Deputy Derek Nolan asked the Minister for Education and Skills the current situation with regard to the major capital works project of a school (details supplied) in County Galway, when a decision will issue on this project; and if he will make a statement on the matter. [17788/11]

Minister for Education and Skills (Deputy Ruairí Quinn): As the Deputy is aware, a major project for the school to which he refers was included on the list of projects on the work programme for 2011, which was announced on 24 January 2011, where accommodation briefs will be formulated and the process of appointing a Design Team will commence. In order to progress this matter further, the Department is, in the first instance, reviewing the Schedule of Accommodation to ensure that appropriate provision is being made to meet the school’s needs. My Department expects to be in contact with the school authorities shortly in this regard.

Higher Education Grants 113. Deputy Joanna Tuffy asked the Minister for Education and Skills if he has plans to make provision for funding to colleges or through partnerships for hardship cases in view of the changes to the student grants due to commence in September and the fact that hardship may be caused in particular to those students affected that had started college prior to these changes being introduced; and if he will make a statement on the matter. [17790/11]

Minister for Education and Skills (Deputy Ruairí Quinn): The financial circumstances of the country are such that I am not in a position currently to reverse any of the changes to the student grant schemes introduced by the previous Fianna Fáil — Green Party Government or to make extra funding available. However, students on particularly low incomes will continue to receive a “top-up” in the special rate of grant and the Student Assistance Fund at some €5m continues to be made available through the access offices of third-level institutions to assist students in exceptional financial need. The access offices themselves will also provide support and advice to students to enable them to continue with their studies.

114. Deputy Joanna Tuffy asked the Minister for Education and Skills the number of mature students in receipt of the non adjacent rate of grant which will in September be changed to the adjacent rate; the savings estimated from this particular change; and if he will make a statement on the matter. [17791/11]

Minister for Education and Skills (Deputy Ruairí Quinn): The Deputy is referring to the change to the student grant schemes introduced by the previous Fianna Fáil-Green Party Government which removes the automatic entitlement of mature students to the non-adjacent rate of grant. It is estimated that some 6,900 mature students live 45 kilometres or less from

176 Questions— 29 June 2011. Written Answers their institution. From September 2011, students qualifying for the maintenance element of the student grant in this cohort will receive the adjacent rate of grant together with payment of their fees and student contribution as appropriate. A full year saving of €13m is estimated from this measure.

Schools Refurbishment 115. Deputy Seán Crowe asked the Minister for Education and Skills if a school (details supplied) in County Wexford has been included in the 2011 summer works scheme. [17800/11]

Minister for Education and Skills (Deputy Ruairí Quinn): I am pleased to confirm to the Deputy that the school to which he refers was among those 453 primary and post primary schools across the country who will be receiving funding under the 2011 Summer Works Scheme. Details of the schools in question are available on my Department’s website www.education.ie. The school in question has received written notification to this effect from my Department.

Special Educational Needs 116. Deputy Dan Neville asked the Minister for Education and Skills if a laptop will be provided in respect of a person (details supplied) in County Limerick. [17818/11]

Minister for Education and Skills (Deputy Ruairí Quinn): As the Deputy will be aware, the National Council for Special Education (NCSE) is responsible, through its network of local Special Educational Needs Organisers (SENOs) for allocating resource teachers and Special Needs Assistants to schools to support children with special educational needs. SENOs also make recommendations to my Department where assisting technology is required. The NCSE operates within my Department’s criteria in allocating such support. All schools have the names and contact details of their local SENO. Parents may also contact their local SENO directly to discuss their child’s special educational needs, using the contact details available on www.ncse.ie. I have arranged for the details supplied by the Deputy to be forwarded to the NCSE for their attention and direct reply.

Higher Education Grants 117. Deputy Mattie McGrath asked the Minister for Education and Skills when the higher education grant applications forms will be available. [17828/11]

Minister for Education and Skills (Deputy Ruairí Quinn): I am pleased to inform the Deputy that the student grant scheme and application form for the 2011/12 academic year was published on www.studentfinance.ie on 27 June, 2011.

School Enrolments 118. Deputy John McGuinness asked the Minister for Education and Skills the progress if any relative to a section 29 appeal in respect of a person (details supplied) in County Kerry; the time frame in this process for a decision; and if he will make a statement on the matter. [17833/11]

Minister for Education and Skills (Deputy Ruairí Quinn): The case in question was admitted by the Section 29 Administration Unit of my Department on the 10th June 2011. In accordance with Section 29 of the Education Act 1998, appeals are generally dealt with within a period of 30 days from the date of receipt of the appeal. This appeal hearing is due to take place on 8th

177 Questions— 29 June 2011. Written Answers

[Deputy Ruairí Quinn.] July 2011. Following the receipt of the Committee’s determination, the Secretary General shall as soon as practicable write to both parties advising them of the outcome of the appeal.

Overseas Students 119. Deputy John Lyons asked the Minister for Education and Skills the number of overseas students who will be attending third level educations institutions here in September; the amount of fee income this will generate; and if he will make a statement on the matter. [17932/11]

Minister for Education and Skills (Deputy Ruairí Quinn): Details on the number of overseas students attending third level institutions in September 2011 will not be available until such students have registered with their respective colleges. I understand from the Higher Education Authority that preliminary figures for the 2010/11 academic year show that there were 24,399 international students in higher education institutions in Ireland (not including 1,623 students on programmes run off shore by Irish HEIs). These brought in an estimated fee income of €206m. It is anticipated that, with a more intensive market campaign introduced with the recent launch of the new “Education in Ireland” brand, there will be growth in numbers and income in 2011/12.

Site Acquisitions 120. Deputy Pádraig Mac Lochlainn asked the Minister for Education and Skills if he will secure a site in Buncrana, County Donegal and commence works on the campus with new buildings for schools (details supplied). [17936/11]

Minister for Education and Skills (Deputy Ruairí Quinn): I wish to advise the Deputy that preliminary discussions have taken place between officials from County Donegal Vocational Education Committee (VEC), Donegal County Council and my Department in relation to a proposed campus development in Buncrana. The VEC appointed consultants to carry out site suitability assessment reports on a number of potential sites in the area and one of these reports is currently with my Department for consideration. Due to commercial sensitivities attached to the site acquisition process I am not in a position to comment further at this point in time. The acquisition of a suitable site and the delivery of new school buildings will be considered in the context of existing commitments and other competing demands on the Department’s capital budget.

Schools Building Projects 121. Deputy Pádraig Mac Lochlainn asked the Minister for Education and Skills when he will make provision for the completion of the balance of permanent accommodation of 2,775M2 at a college (details supplied) in County Donegal in view of the current split campus agrrange- ment on site which presents operational difficulties inclusive of the deterioration and maintenance of the existing temporary accommodation. [17937/11]

Minister for Education and Skills (Deputy Ruairí Quinn): The school to which the Deputy refers has applied to my Department for large scale capital funding. The application has been assessed in accordance with the published prioritisation criteria for large scale building projects and assigned a Band 2 rating. Information in respect of the current school building programme along with all assessed applications for major capital works, including the project referred to by the Deputy, is available on the Department’s website at www.education.ie. The progression of all large scale building projects, including this project, from initial design stage through to construction phase will be considered in the context of my Department’s multi-annual School

178 Questions— 29 June 2011. Written Answers

Building and Modernisation Programme. However, in light of current competing demands on the capital budget of the Department, it is not possible to give an indicative timeframe for the progression of the project at this time.

Vocational Education Committees 122. Deputy Pádraig Mac Lochlainn asked the Minister for Education and Skills the position regarding the case being made by Donegal Vocational Education Committee for the public appointment moratorium to be relaxed to permit the advertisement and appointment of an Education Office and Estates Manager for the VEC. [17938/11]

Minister for Education and Skills (Deputy Ruairí Quinn): The Deputy may be aware of the decision of the previous Government to implement a recruitment and promotion moratorium in the public sector. In respect of Vocational Education Committees, including Co Donegal VEC, positions other than teacher and SNA posts in schools, and teacher equivalents that are directly providing tuition to pupils in schools, in special programmes or in adult and further education, are comprehended by this decision. It is a matter for each VEC to implement work prioritisation across different functions, and to deploy available staff to execute those functions. My Department received correspondence in July 2010 from Co Donegal VEC requesting sanction to fill the vacant posts of Education Officer (acting) and Estates Manager. My Department responded by informing the acting Chief Executive Officer that under the terms of the moratorium those vacancies could not be filled and recommending that Co Donegal VEC reorgan- ises or reallocates staff. The proposal referred to by the Deputy was resubmitted as part of Co Donegal VEC’s 2011 Service Plan, received by my Department on 27th June 2011. The matter will be reconsidered and my Department will respond directly to the acting CEO.

123. Deputy Pádraig Mac Lochlainn asked the Minister for Education and Skills the position regarding the proposal submitted to him by Donegal Vocational Education Committee under the heading Curricular Programme for Development for Outdoor Education to become a main- stream education service with salaries paid by him, relieving the financial difficulties encoun- tered by the VEC in supporting an outdoor pursuits/education centre (details supplied) on an ongoing basis [17939/11]

Minister for Education and Skills (Deputy Ruairí Quinn): The proposal referred to by the Deputy was included in Co. Donegal VEC’s 2011 Service Plan, received by my Department on 27th June 2011. Funding for outdoor education centres is approved on the basis that they are self-financing and that their financial activities would be separate from the overall VEC finances. Accordingly, my Department’s annual grants are contributory in nature and the allocations go mainly towards the core staffing costs involved in running the centres. I have no plans to change the current funding arrangements.

School Enrolments 124. Deputy Richard Boyd Barrett asked the Minister for Education and Skills the measures he will put in place to ensure a school place in respect of a person (details supplied). [17953/11]

Minister for Education and Skills (Deputy Ruairí Quinn): I wish to advise the Deputy that the enrolment of a child in a school is a matter in the first instance for the parents of the child and the Board of Management of a school. My Department has no role in relation to processing of applications for enrolment in schools. Once a child has been enrolled in a school, the school can then contact the National Council for Special Education (NCSE), through its network of local Special Educational Needs Organisers (SENOs), for special educational needs supports.

179 Questions— 29 June 2011. Written Answers

[Deputy Ruairí Quinn.] The NCSE operates within my Department’s criteria in allocating such support, which now includes a requirement for the NCSE to have regard to an overall cap on the number of SNA posts. The Deputy may be aware that Circular 0042/2011 provides details of the staffing arrangements which will apply for special schools for the coming school year. This Circular outlines that, other than for schools which have declining enrolments, the existing levels of SNA support will be maintained in special schools for the coming school year, with a review to take place in the Autumn. The National Educational Welfare Board (NEWB) is the statutory agency which assists parents who are experiencing difficulty in securing a school place for their child. The NEWB will try to help parents to find an alternative school placement if their child has been unable to secure a placement to date.

Special Educational Needs 125. Deputy Finian McGrath asked the Minister for Education and Skills if he will not cut the teacher numbers for children with mild general learning disabilities at a school (details supplied) in Dublin 17 [17958/11]

Minister for Education and Skills (Deputy Ruairí Quinn): I wish to advise the Deputy that the National Council for Special Education (NCSE), through its network of local Special Edu- cational Needs Organisers (SENOs), is responsible for processing applications from primary and post primary schools for special educational needs supports. This includes the allocation of resource teaching hours to schools as well as the establishment of special classes in various geographical areas as required and the discontinuation of such classes where the need no longer exists. The NCSE operates within my Department’s criteria in allocating such supports. In respect of special classes, schools are required to observe Department policy in enrolling children to these classes. This includes having a professional assessment confirming that the child’s attainment levels meet the Department’s criteria and a recommendation for special class placement. Schools are eligible for resources for special classes when the pupils enrolled meet the Department’s criteria and where there are enough eligible pupils to retain a class. Schools are required to liaise with their local SENO in the context of any proposed placements in special classes. All schools have the names and contact details of their local SENO. In respect of pupils with mild general learning disability (MGLD) who are in a class which is being discontinued due to reduced pupil numbers, these pupils will be able to receive teaching support through the teaching resources allocated to the school under the General Allocation Model (GAM). Schools decide themselves how best to use this allocation based on the needs of the pupils and how to adjust their support in line with the changing needs of pupils as they mature. My Department provided a circular SP ED 02/05 to schools to assist them in deploying the General Allocation Model resources. Schools in the Delivering Equality of Opportunity in Schools (DEIS) programme with Band 1 status, including the school in question, receive beneficial GAM allocations in addition to enhanced pupil-teacher ratios.

126. Deputy Finian McGrath asked the Minister for Education and Skills the position regarding a special needs assistant in respect of a person (details supplied) in County Dublin [17959/11]

Minister for Education and Skills (Deputy Ruairí Quinn): I wish to advise the Deputy that the National Council for Special Education (NCSE) is responsible, through its network of local Special Educational Needs Organisers (SENOs) for allocating resource teachers and Special Needs Assistants (SNAs) to schools to support children with special educational needs. The

180 Questions— 29 June 2011. Written Answers

NCSE operates within my Department’s criteria in allocating such support. This now includes a requirement for the NCSE to have regard to an overall cap on the number of SNA posts. The NCSE has issued a circular to all schools advising of the allocation process for the 2011/2012 school year. A key feature of the amended scheme will be to provide for an annual allocation of Special Needs Assistant support to eligible schools. The NCSE asked schools to submit all applications for SNA support to them by 18th March, 2011 and are currently in the process of informing schools of their annual SNA allocation for the coming school year.

Croke Park Agreement 127. Deputy Michael McGrath asked the Minister for Education and Skills if he has examined the current or potential impact of public service pay or numbers policy on the ability of organisations under his control to allocate and oversee the efficient use of State resources [17970/11]

Minister for Education and Skills (Deputy Ruairí Quinn): As the Deputy will be aware the Programme for Government contains a commitment to reduce the total number of public sector employees by between 18,000 and 21,000 by 2014, compared to the total number at the end of 2010. The key to ensuring the successful fulfilment of this commitment is by ensuring that the Public Service Agreement 2010-2014 is implemented fully throughout the public sector. In the Education sector there have been substantial savings arising from the implementation of staffing and budgetary measures in the period since March 2010. The Moratorium and Employment Control Frameworks have resulted in significant decreases in staffing and payroll savings since the negotiation of the Public Service Agreement. As you will be aware the Implementation Body established under the Agreement published its first report recently. The Implementation Body considers that the Agreement is a key enabler of economic recovery as it provides for:- more productive public services underpinning wider economic recovery;- more focused public services to support citizens and business affected by the current downturn; and- stability, certainty and a climate of industrial peace, contributing to the restoration of Ireland’s reputation. The Agreement provides the mechanism to secure the active co-operation of staff for the changes needed to ensure the significant ongoing reduction in numbers does not adversely impact on services. The Body noted that, since the Agreement was reached at the end of March 2010, there has been initial progress in achieving an increasingly integrated public service which is significantly leaner, more productive and more focussed on the needs of citizens and business. In addition to directly attributable savings, the Agreement is enabling the implementation of measures by my Department which will deliver savings to the Exchequer, because the Agreement and the action plan require unions to co-operate with numbers reductions, Employment Control Frameworks and other budgetary efficiency measures. In the higher education sector, staff numbers have fallen significantly in the last 12 months while student numbers are increasing (3% additional students attending Universities and 12.5% additional students attending IOTs). Non-teaching staff numbers have also fallen in VECs and community and comprehensive schools. These staff numbers reductions are being managed successfully which is especially noteworthy given the increasing student numbers attending primary, secondary and third-level education in the State. As well as enabling management in the education sector to manage services with reduced numbers and budgets, the Public Service Agreement means that teachers and lecturers are required to work additional time. These blocks of additional time, which will be used to maintain and improve education delivery, are significant and would cost substantial sums of money were we to have to pay staff to work them. However, under the Public Service Agreement they are being provided by teachers and lecturers at no additional payroll cost. I firmly believe that the full implementation of this Agreement in the Education sector will facilitate the required

181 Questions— 29 June 2011. Written Answers

[Deputy Ruairí Quinn.] reduction in public service numbers in the sector while continuing to sustain and even enhance the delivery of excellent public services, both to the growing cohort of students accessing the Irish education system, and to the wider public.

Public Sector Remuneration 128. Deputy Michael McGrath asked the Minister for Education and Skills if he will list the number of positions under his control but outside of the civil service which will be affected by new salary caps; the specific cuts involved and any impact identified on the ability to recruit or to retain specific positions in the next 12 months. [17978/11]

Minister for Education and Skills (Deputy Ruairí Quinn): Four positions under my control in the Higher Education Sector will be affected by the new salary cap of €200,000. They are the Presidents of UCD, UCC, NUIG and the Provost of TCD. The approved salary for each position will be reduced by €11,000 approx. No impact on the ability to recruit or retain these positions in the next 12 months has been identified.

Job Losses 129. Deputy Brendan Smith asked the Minister for Jobs; Enterprise and Innovation the discussions, if any, he has had with a company (details supplied) in relation to its proposal to move jobs to offshore locations; if he will convey to the company the obvious concerns of employees and the need to retain the maximum number of jobs here; and if he will make a statement on the matter. [17689/11]

Minister for Jobs, Enterprise and Innovation (Deputy Richard Bruton): I am very concerned about the job losses that have been announced and of the impact that they have had on the workers concerned and their families as well as the communities affected. I understand that Vodafone Ireland, which is not an IDA or EI client, has announced this as a part of a review of its European operations and which will also impact on its operations in other EU Member States. I am advised, as part of this process, that the company has been in discussions with unions and its Irish Call Centre contract partner, Rigney Dolphin. I am aware that Vodafone has decided that a portion of the existing contracted call centre operations in Dundalk and Dublin will be moved to other locations — Egypt and India — within the Vodafone Group and to other specialist contractors in Ireland. This decision will impact 45 Vodafone roles and 139 in Rigney Dolphin — the 139 staff are employed by Rigney Dolphin but are in-sourced to Vodafone and are based at its sites in Dublin and Dundalk. I have been assured that Rigney Dolphin will work through the implications of the redundancies with their employees. I also understand that all impacted Vodafone employees will be offered the opportunity to transfer to alternative roles within Vodafone Ireland, and voluntary redundancy packages will be offered. A consultation process is now underway with all Vodafone employees affected by the decision to finalise the alternatives available. The changes to Vodafone Call Centre operations will take place in late 2011 and early 2012. My officials and Minister of State Sean Sherlock recently met with Vodafone. The company explained that in the current market environment, cost efficiencies are a prerequisite so as to ensure their continued ability to compete in the Irish market where they employ over 1,000 people. In particular, this includes being in a position to make major funding investments in Ireland that will be required in the future to compete in the market. I have indicated that I am available to meet with the Communications Workers Union to discuss their concerns.

182 Questions— 29 June 2011. Written Answers

Job creation is central to economic recovery and the Programme for Government has job creation at its core. The role of my Department is to ensure that we have the right policies in place that will support and grow our enterprise base in order to facilitate both job creation and job retention. The programmes supported by my Department and its agencies will be critical in achieving economic growth through promoting the export potential of enterprise in Ireland and driving our Smart Economy.

Departmental Staff 130. Deputy Seán Kenny asked the Minister for Jobs; Enterprise and Innovation the number of persons employed by him by grade and the pay scale by grade. [17735/11]

Minister for Jobs, Enterprise and Innovation (Deputy Richard Bruton): The following table identifies the number of staff employed in my Department by grade and by relevant pay scale.

By Grade Full time Equivalents Pay Scale

Secretary General 1 €215.590 Assistant Secretary 5 €127.796—€153.885 Principal Officer 30 €80,051—€110,844* Assistant Principal 73.10 €61,966—€88,598* Administrative Officer 8 €31,619—€60,224* Higher Executive Officer 126.03 €43,816—€60,224* Executive Officer 205.73 €29,024—€49,837* Staff Officer 32.95 €33,070—€46,171* Clerical Officer 270.67 €22,015—€38,135 Head Accountant 1 €80,051—€110,8448 Accountant Grade 1 7 €65,247—€84,935* Chairperson 1 €168,000 Controller 1 €93,197—€110,665* Corporate Compliance Manager 1 €90,355—€110,844* Deputy Chairperson 2 €127,796—€146,191 Director 2 €127,796—€146,191 Examiner 3 €32,206—€61,963* Senior Examiner 1 €58,070—€74,416* Legal Advisor 5.8 €80,051—€103,472* Solicitor 2 €33,576—€80,678* Principal Solicitor 1 €84,132—€103,472* Member 6 €130,676 Min Special Advisor 1 €80,051—€98,424* Minister’s Personal Assistant 3 €43,715—€56,060* Minister’s Personal Secretary 3 €456.50—€915.20* Civilian Driver 6 €631.75 per week Service Attendant 5 €398.74—€552.08* per week Service Officer 26 €398.74—€704.36* per week Telephonist 2.3 €444.17—€715.62* per week Cleaner 16 €380.76—€465.35* per week

Total 848.58 *After 6 years satisfactory service at the maximum.

183 Questions— 29 June 2011. Written Answers

Trade Missions 131. Deputy Seán Kenny asked the Minister for Jobs; Enterprise and Innovation if he will report on his recent trade mission to the West Coast of the US; the number of persons he met during the visit; the number of officials who accompanied him on the trip and the cost of the trip to his Department to date. [17739/11]

Minister for Jobs, Enterprise and Innovation (Deputy Richard Bruton): I recently visited the West Coast of the United States from 12th to 17th June 2011 on a marketing programme organized by IDA IrelandI was accompanied by three persons, Barry O’Leary, CEO of IDA, and two officials from my Department. The primary objective of my visit was to market Ireland as an ideal business location for US companies wishing to invest or increase their investment overseas. It was also an opportunity to further enhance and develop the relationships Ireland has with US companies who already operate here. It is worth noting that 70% of IDA’s client base originates in the United States. The programme involved meeting Chairpersons, CEOs and other senior executives of leading companies across all sectors including ICT, Life Sciences and Business Services which are located on the West Coast. Some of the companies which I met have substantial and valuable activities in Ireland and those meetings focused on retaining, expanding and further embedding the employment foot- print here. For companies who do not have a presence in Ireland the focus was to underpin Ireland as the location for their proposed investment activities against intense competition from other locations around the world. Overall engagement at the meetings was positive with many companies upbeat in their discussions on expansion/growth strategies. I held individual meetings with 22 companies across a number of targeted sectors, including five of the top ten technology companies in the USA. The companies I met include several top internet companies with household names. The 22 companies employ a total of over 350,000 people worldwide, with combined revenues of over $230 billion. They also include: • 13 companies which are present in Ireland already, employing a total of 13,000 people here, as well as several companies which may be considering investing here for the first time; • A total of 15 technology companies; • Several rapidly growing “new technology” companies which are characteristic of the new Silicon Valley boom; • Four leading US life sciences companies; • Companies in international services, entertainment and aviation. One investment announcement (Aruba Networks, 40 jobs, 13th June 2011) has already been made as part of the trade mission and a number of further announcements are on the way in the coming weeks. The cost of the visit forms part of the IDA’s Marketing and Promotions Budget. Costs for this particular visit have not yet been reconciled but will be available in due course.

Departmental Functions 132. Deputy John Paul Phelan asked the Minister for Jobs; Enterprise and Innovation the position regarding the restructuring of his Department; the way these new changes will help

184 Questions— 29 June 2011. Written Answers promote job creation and economic revitalization; and if he will make a statement on the matter. [17758/11]

Minister for Jobs, Enterprise and Innovation (Deputy Richard Bruton): The new structures in my Department are aimed at maximizing the potential of the Department to support mine and the Government’s top priority, which is job creation and retention. Each of the Divisions in my Department has a key role to play in supporting this agenda and helping to restore the economy, through improved competitiveness, market liberalization and increasing our export potential. The new structures will help to support the outcomes of a number of exercises that we are currently engaged in, including the development of a new Strategy for the next three years, a Comprehensive Expenditure Review of current and capital expenditure and modernisation of work practices under the Croke Park Agreement. A particularly important development has been the establishment of a new: • Competitiveness and Jobs Division, which has responsibility for promoting and delivering the Jobs Strategy and the Jobs Initiative, improving business access to finance including the development of a targeted partial loan guarantee scheme and the setting up of a new micro finance fund, increasing competitiveness, and developing policy in relation to Small Business and Indigenous Enterprise. The Division also monitors the impact of climate change issues on enterprise. Other Divisions are configured to maximise delivery on the Programme for Government including: • EU Affairs and Trade Policy Division, which has responsibility for Internal Market issues, EU Affairs, with a particular focus on Ireland’s upcoming EU presidency from January to June 2013, Multilateral Trade Policy, Economic Immigration Policy and Health and Safety and Chemicals Regulation. • Corporate Services, Employment Rights and Industrial Relations Division, which has responsibility Labour reform and the employment rights regulatory framework, enhance- ment of dispute resolution machinery as well as responsibility for maximising the Depart- ment’s own capacity to deliver in terms of HR, financial management and organisational systems and processes. • Innovation and Investment Division, which has responsibility for the IDA and Science Foundation Ireland, the multinational sector and inward investment Policy, as well as for R&D and innovation. • Commerce, Consumer and Competition Division, which has responsibility for Compe- tition and Consumer Policy, Better Business Regulation and Company Law.

County Enterprise Boards 133. Deputy Tom Fleming asked the Minister for Jobs; Enterprise and Innovation if he will take cognisance of the job creation activities of the Kerry County Enterprise Board (details supplied). [17767/11]

Minister for Jobs, Enterprise and Innovation (Deputy Richard Bruton): The Programme for Government and the recent Jobs Initiative set out a number of measures which this Govern- ment is taking to assist micro, small and medium enterprises with a view to maximising their potential in the context of economic recovery. These measures build on the existing enterprise supports available to small businesses. Support nationally and locally for micro-enterprises,

185 Questions— 29 June 2011. Written Answers

[Deputy Richard Bruton.] small businesses and new start-ups is provided by my Department through the wide range of assistance offered by the County and City Enterprise Boards (CEBs) and Enterprise Ireland. The Kerry Enterprise Board plays an active role supporting local micro-enterprises. The Deputy will be aware that the issue of restructuring the County and City Enterprise Boards (CEBs) has been in the public domain since the publication of the McCarthy Group Report in 2009 under the last Administration. The CEB model has served the micro-enterprise sector in Ireland well over the years but there is also no doubt that some restructuring of that model is now required. There have been many changes to the social, economic and technological landscape of Ireland since the establishment of the Boards in 1993. I am of the view that it is timely and appropriate to restructure, and re-focus, how the State delivers its support to the indigenous micro-enterprise sector given that this Sector will be vital to job creation and to overall economic recovery in Ireland. Both I, and my officials, are currently seeking to determine the extent to which there should be restructuring of the County and City Enterprise Boards having regard to the Programme for Government, and to other recommendations on CEB restructuring, to the need to achieve a rational and focused model for entrepreneurs, as well as the need to ensure that there is targeted local delivery of enterprise support, driven by a national enterprise policy, in a manner which eliminates overlap and duplication.

Employment Rights 134. Deputy Tom Fleming asked the Minister for Jobs; Enterprise and Innovation if he will confirm the length of delay in cases referred to the Employment Appeals Tribunal and Rights Committee Services; and the steps he is taking to shorten the periods. [17768/11]

Minister for Jobs, Enterprise and Innovation (Deputy Richard Bruton): The Rights Com- missioner Service comes under the direct remit of the Labour Relations Commission (LRC) which is a statutory body that is independent of me in the performance of its functions. Accord- ingly, the length of time it takes for the Rights Commissioner Service to schedule hearings is a day-to-day matter for the Service and I have forwarded your Question to the Chief Executive of the LRC and asked that he respond directly to you on the matter. Insofar as the Employment Appeals Tribunal (EAT) is concerned, the EAT deals with disputes under 18 pieces of Employment Rights legislation. Members of the EAT panel — employee nominee Members, employer nominee Members and independent Chair and Vice- Chairs — are appointed for fixed terms of office and their services are utilised as required. My Department’s direct responsibility in relation to the operations of the EAT extends to the provision of staffing resources, ICT facilities and accommodation for the Tribunal. The EAT has seen a marked increase in its caseload in recent years, as it is one of the front- line services directly impacted upon by the significant economic downturn. Between 2007 and 2009, the number of claims coming to the Tribunal trebled, although there was a slight (7%) decrease in new claims lodged in 2010. However, the first half of 2011 has continued to show a high level of claims being submitted and contested. Tribunal Staff are conscious that parties in dispute are anxious to have claims dealt with as early as possible and are working extremely hard to deal with the sizeable increase in claims submitted. In that regard, there has been a large increase in the number of claims disposed of by the Tribunal in recent years. These efforts have resulted in a 51% increase in cases disposed of in 2010 over 2008.

186 Questions— 29 June 2011. Written Answers

The increased number of cases referred to the EAT in recent times has, nonetheless, had a strong impact on case processing timeframes. I am informed that the longest waiting periods at the end of June 2011 ranged from 60 weeks to 90 weeks, although such figures can be somewhat misleading in terms of the very different nature of claims referred to the Tribunal. Although the EAT conducts hearings in about 36 locations across the State, where the number of cases is relatively small, the Tribunal may wait until a sufficient number of cases are on hand before hearings in certain locations can be listed, so as to maximise value for money in relation to the costs of hearings outside Tribunal HQ. Once a critical mass of cases is assembled, 5 days of hearings in a single location can reduce the “waiting time” in the area concerned by approximately 30 weeks. In relation to managing its caseload and costs, I understand that the EAT targets areas with the longest waiting period and highest level of claims outstanding, within the resources it currently has available, when scheduling hearings. The EAT has been pro-active in driving efficiencies as it addresses the significantly increasing demands for its services at a time of significantly constrained resources. Divisions of the Tri- bunal are sitting longer, listing more cases per hearing, and seeking to manage the caseload so as to maximise efficiency. These efficiencies have resulted in improvements in the service provided to individual applicants and respondents and have also resulted in a significant increase in the EAT’s output. In this connection, over 6,000 claims were processed between January and end-December 2010 — the highest number on record. The EAT is also piloting the streaming of certain types of cases in particular, in order to increase the number of cases being dealt with and assist parties in these instances. The Tribunal is also in the process of developing a “fillable” electronic form, which will facilitate the more expeditious processing of a claim form once lodged. Furthermore, the Tribunal is piloting a specialist Division to hear claims submitted in relation to redundancy payments which are significant in number and where determinations by the EAT are necessary. Most recently, my Department has supported the EAT in processing its increased caseload through the assigning of additional Tribunal Secretaries and support from the National Employment Rights Authority of my Department in managing the administration of case log- ging and document preparation. Such cross-unit support has been a vital support to the Tri- bunal in tackling its caseload. All of these measures are being taken against the backdrop of severe resource constraints — both monetary and staffing — and I can assure the Deputy that my Department will keep the workload challenges for the EAT under review with a view to assisting it further improve its levels of customer service.

County Enterprise Boards 135. Deputy John McGuinness asked the Minister for Jobs; Enterprise and Innovation further to Parliamentary Question No. 18 of 5 May 2011, if he will confirm the county enterprise boards that were consulted; if he will name the boards involved in the process and the extent of the consultation; if he will confirm the number of micro enterprises consulted and their geographic location; and if he will make a statement on the matter. [17846/11]

Minister for Jobs, Enterprise and Innovation (Deputy Richard Bruton): As the Deputy is aware, the issue of restructuring the County and City Enterprise Boards (CEBs) has been in the public domain since the publication of the McCarthy Group Report in 2009 under the last Administration.

187 Questions— 29 June 2011. Written Answers

[Deputy Richard Bruton.]

A number of submissions concerning the role of the CEBs in the delivery of State support to the micro-enterprise sector have been received from the CEB Network since the publication of the McCarthy Report. I would point out that all 35 CEBs are represented on this CEB Network generally at CEO level. In addition my Officials meet regularly with the CEB Network (up to four times a year) and there have been numerous exchanges of views at these meetings on the issue of CEB restructuring. In addition submissions have been received from the Chair- persons of the CEBs on both a collective and on an individual basis on foot of a specific invitation issued by the CEB Central Coordination Unit to Chairpersons and CEB Board members to make their views known. Other interested Parties such as the County and City Managers Association have also made submissions on the matter and this is in addition to the recommendations of the Local Govern- ment Efficiency Review Group. Although individual micro-enterprises were not specifically selected for consultation I would point out that some representations from members of the public have also been received on the matter. Both I, and my officials, are currently seeking to determine the extent to which there should be restructuring of the County and City Enterprise Boards having regard to the Programme for Government, and to other recommendations on CEB restructuring, to the need to achieve a rational and focused model for entrepreneurs, as well as the need to ensure that there is targeted local delivery of enterprise support, driven by a national enterprise policy, in a manner which eliminates overlap and duplication. I can assure the Deputy that the various options regarding the restructuring of the CEBs have been thoroughly examined.

Employment Rights 136. Deputy Micheál Martin asked the Minister for Jobs; Enterprise and Innovation if he has satisfied himself that sufficient protections are in place for employees and contractors who are made redundant by a company in order to be replaced by other employees’ contractors at below registered employment agreement rates. [17948/11]

137. Deputy Micheál Martin asked the Minister for Jobs; Enterprise and Innovation if his attention has been drawn to any reports regarding companies making employees/contractors redundant in order to take on other employees/contractors at below regulation employment rates; the steps had he taken or will take to deal with same. [17949/11]

Minister for Jobs, Enterprise and Innovation (Deputy Richard Bruton): I propose to take Questions Nos. 136 and 137 together. There are a range of safeguards built in to employment rights legislation to guard against abuses of the employer-employee relationship, particularly when dealing with matters relating to the termination of that relationship e.g. unfair dismissal. Where employees are let go in any job and they are replaced, it may be open to those employees to bring a case of unfair dismissal under the Unfair Dismissals Acts 1977-2007. The Unfair Dismissals Acts lay down criteria by which dismissals are to be judged fair or unfair and provide redress for an employee whose dismissal has been found to be unfair. Under the Acts, the onus is generally on the employer to show that the dismissal resulted wholly or mainly from one or more of the grounds specified in the Acts or that there were other substantial grounds justifying dismissal. While one of the grounds justifying dismissal under the Acts is where a genuine redundancy situation exists, the

188 Questions— 29 June 2011. Written Answers genuineness or otherwise of a redundancy situation will be considered during the hearing of the case. In addition to the above protections, the Government, by way of the Protection of Employ- ment (Exceptional Collective Redundancies and Related Matters) Act 2007 enacted legislation to address concerns regarding possible compulsory collective redundancy with the planned replacement of workers by direct employees employed by the employer or by the use of other replacement workers by the aforementioned employer in the same location or elsewhere in the jurisdiction, on materially inferior terms and conditions, and with the new workers performing essentially the same functions as those to be made redundant. The 2007 Act provides a mechanism for the setting up of a Redundancy Panel which allows for referral by employee representatives of a case to the Minister for Jobs, Enterprise and Innovation who in turn can ask the Labour Court for an Opinion as to whether or not the proposed collective redundancy dismissals were in fact genuine. It also provides for a range of sanctions for situations where dismissals took place contrary to an Opinion of the Labour Court, with particular reference to redundancy rebate entitlements, tax treatment of redundancy payments as well as consideration of Unfair Dismissal entitlements in such situations, and for penalties and appeals. By way of further obligations imposed under the terms of the Protection of Employment Act 1977, companies proposing collective redundancies must provide certain information to employee representatives regarding the proposed collective redundancy. They must enter into consultation with the employee representatives at least 30 days before anyone receives notice of redundancy. Companies must also notify the Minister for Jobs, Enterprise and Innovation of the proposed redundancies at least 30 days before any employee receives notice of redundancy. The consultation with the employee representatives and the notification period for the Minister can run concurrently. I should also emphasise that workers in sectors covered by statutory wage setting arrangements [Registered Employment Agreements (REAs) and Employments Regulation Orders (EROs)] may not be paid lower rates than those provided for in the relevant REA or ERO. REA’s and ERO’s are enforced by NERA inspectors including the issue of rates payable thereunder. In addition, a party to a REA e.g. in the Construction area can bring a case for a breach of the Agreement to the Labour Court for adjudication. NERA inspectors have power to enter premises, inspect wage sheets and other records, interview the employers and workers concerned, recover arrears and, if necessary, take legal proceedings against an employer who is in breach of an ERO or REA. An inspection can be undertaken either as part of a routine inspection by NERA or on foot of a complaint. I understand that NERA is not aware of any reports of the nature referred to by the Deputy. The above provisions represent core elements of protections for employees and I am satisfied that the current protections are satisfactory. The situation in relation to contractors, who themselves may have their contract terminated, would be dealt with on a case by case basis as such persons may be employed on a contract-for-services basis rather than a contract-of-service basis i.e. they may be “self-employed” rather than an “employee”.

Job Losses 138. Deputy Billy Timmins asked the Minister for Jobs; Enterprise and Innovation the position regarding the recent announcement by a company (details supplied) that it is moving more than 130 Irish jobs currently engaged in providing customer care services to off-shore locations in Egypt and India.; and if he will make a statement on the matter. [17968/11]

189 Questions— 29 June 2011. Written Answers

Minister for Jobs, Enterprise and Innovation (Deputy Richard Bruton): I am very concerned about the job losses that have been announced and of the impact that they have had on the workers concerned and their families as well as the communities affected. I understand that Vodafone Ireland, which is not an IDA or EI client, has announced this as a part of a review of its European operations and which will also impact on its operations in other EU Member States. I am advised, as part of this process, that the company has been in discussions with unions and its Irish Call Centre contract partner, Rigney Dolphin. I am aware that Vodafone has decided that a portion of the existing contracted call centre operations in Dundalk and Dublin will be moved to other locations — Egypt and India — within the Vodafone Group and to other specialist contractors in Ireland. This decision will impact 45 Vodafone roles and 139 in Rigney Dolphin — the 139 staff are employed by Rigney Dolphin but are in-sourced to Vodafone and are based at its sites in Dublin and Dundalk. I have been assured that Rigney Dolphin will work through the implications of the redundancies with their employees. I also understand that all impacted Vodafone employees will be offered the opportunity to transfer to alternative roles within Vodafone Ireland, and voluntary redundancy packages will be offered. A consultation process is now underway with all Vodafone employees affected by the decision to finalise the alternatives available. The changes to Vodafone Call Centre operations will take place in late 2011 and early 2012. My officials and Minister of State Sean Sherlock recently met with Vodafone. The company explained that in the current market environment, cost efficiencies are a prerequisite so as to ensure their continued ability to compete in the Irish market where they employ over 1,000 people. In particular, this includes being in a position to make major funding investments in Ireland that will be required in the future to compete in the market. I have indicated that I am available to meet with the Communications Workers Union to discuss their concerns. Job creation is central to economic recovery and the Programme for Government has job creation at its core. The role of my Department is to ensure that we have the right policies in place that will support and grow our enterprise base in order to facilitate both job creation and job retention. The programmes supported by my Department and its agencies will be critical in achieving economic growth through promoting the export potential of enterprise in Ireland and driving our Smart Economy.

Public Service Remuneration 139. Deputy Michael McGrath asked the Minister for Jobs; Enterprise and Innovation if he has examined the current or potential impact of public service pay or numbers policy on the ability of organisations under his control to allocate and oversee the efficient use of State resources [17969/11]

Minister for Jobs, Enterprise and Innovation (Deputy Richard Bruton): I am currently engaged in a number of comprehensive and wide-ranging exercises aimed at identifying appropriate policies and objectives for my Department and its associated Agencies in the context of delivering upon the Programme for Government and assisting national recovery by optimising the focus on the creation and retention of jobs. The exercises encompass a Strategy Review, a Comprehensive Expenditure Review of current and capital expenditure and modernisation of work practices under the Croke Park Agreement all in the context of the public service numbers policy. These exercises, which involve extensive consultation with stakeholders, will help to prioritise the goals and objectives of my Department and its Offices and Agencies and improve their capacity to optimize the use of resources in delivering them.

190 Questions— 29 June 2011. Written Answers

140. Deputy Michael McGrath asked the Minister for Jobs; Enterprise and Innovation if he will list the number of positions under his control but outside of the civil service which will be affected by new salary caps; the specific cuts involved and any impact identified on the ability to recruit or to retain specific positions in the next 12 months. [17982/11]

Minister for Jobs, Enterprise and Innovation (Deputy Richard Bruton): None of the positions in the Agencies under my control are affected by the new salary caps.

Social Welfare Benefits 141. Deputy Martin Ferris asked the Minister for Social Protection when a person (details supplied) in County Limerick will be paid back money for their supplementary benefit from October 2009. [17693/11]

Minister for Social Protection (Deputy Joan Burton): The HSE has advised that arrears of supplement under the supplementary welfare allowance scheme for the period October 2009 to February 2011 will issue to the person concerned shortly.

Proposed Legislation 142. Deputy John Paul Phelan asked the Minister for Social Protection if specific legislation relating to length, remuneration and remit of internships is planned; and if she will make a statement on the matter. [17755/11]

Minister for Social Protection (Deputy Joan Burton): The Social Welfare and Pensions Bill 2011 has passed all stages in the Dáil and Seanad. In relation to the National Internship Scheme, the Bill provides that participants on the scheme will not be employees of host organisations for any enactment or rule of law with the exception of the Tax Acts and the Safety, Health and Welfare at Work Act 2005. The National Internship Scheme itself will be an administrative scheme operated under my Department’s remit. There are no plans to introduce legislation in relation to length, remit or remuneration of internships. In order to participate in the national internship scheme both a host organisation and an intern must sign a Standard Internship Agreement. This agreement clearly stipulates the terms of the internship including its length, remit and issues such as the maximum number of hours an intern can work. In relation to remuneration participants on the national internship scheme will receive an internship allowance from my Department, which consists of their existing social welfare entitlements plus a weekly top up of €50.

Social Welfare Appeals 143. Deputy Martin Ferris asked the Minister for Social Protection when a person (details supplied) in County Kerry, will receive jobseeker’s allowance [17683/11]

Minister for Social Protection (Deputy Joan Burton): The Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 24 May 2011. It is a statutory requirement of the appeals process that the relevant Departmental papers and comments by or on behalf of the Deciding Officer on the grounds of appeal be sought. These papers were received in the Social Welfare Appeals Office on 1 June 2011 and the appeal will be referred to an Appeals Officer, in due course, who will decide whether the case can be decided on a summary basis or whether to list it for oral hearing.

191 Questions— 29 June 2011. Written Answers

[Deputy Joan Burton.]

The Social Welfare Appeals Office functions independently of the Minister for Social Protec- tion and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.

Social Welfare Code 144. Deputy Clare Daly asked the Minister for Social Protection if her attention has been drawn to the situation which exists whereby persons in receipt of carer’s allowance who are allowed to work 15 hours per week, and work as paid carers for those 15 hours are required to obtain the FETAC level 5 qualification, but the training for this, which is provided by VETAC and is unpaid, counts as 5 of the 15 hours which you are allowed to work.; and if she will make a statement on the matter. [17713/11]

Minister for Social Protection (Deputy Joan Burton): A range of training courses are provided for those who wish to work as paid carers with awards granted by FETAC. The Further Education and Training Awards Council (FETAC) was set up as a statutory body on 11 June 2001 by the Minister for Education and Science. Carer’s allowance is a means tested income support payment for people who are providing full time care and attention to a person in need of such care. A person in receipt of carer’s allowance can engage in employment, self-employment, training or education outside the home for up to 15 hours per week and still qualify for the payment. A qualifying condition for the payment of carer’s allowance is that the person receiving care is medically assessed as needing care on a full-time basis. It should be understood that the 15 hours rule covers not just paid work, but training or education activities outside the home, paid or unpaid and which could therefore interfere with the ability of the carer to provide full time care and attention for the person being cared for. While it is considered reasonable that carers may work or engage in training or education for up to fifteen hours per week and still be able to provide full time care and attention for someone, I have no plans for a further increase in the hours beyond this allowance. Any further expansion would necessarily dilute the very notion of ‘full time care and attention’ and could directly impact on the person who needs that care.

Social Welfare Fraud 145. Deputy John Paul Phelan asked the Minister for Social Protection the way she plans to address the growing problem of prisoner benefit fraud; if this issue will be resolved in the upcoming budget; and if she will make a statement on the matter. [17752/11]

Minister for Social Protection (Deputy Joan Burton): The Department has abroad-ranging and comprehensive control strategy. The emphasis is to minimise risks of fraud and eliminate incorrect payments. Ensuring that the right person is paid the right amount of money at the right time is an integral part of the day-to-day work of the Department. The Department has, in the last number of years, been engaged in data matching with other Government Departments and public bodies for control purposes. Current legislation provides for this information sharing for the purposes of detecting and deterring social welfare fraud. Data matching is viewed as a very efficient and effective mechanism to target control-related activity. The Department receives data for social welfare fraud control purposes from the Irish Prison Service (IPS). Data is received on a number of occasions annually and is matched against the

192 Questions— 29 June 2011. Written Answers

Department’s systems. This data matching is used to identify cases where prisoners are receiving a payment from the Department while in custody. All social welfare payments are terminated where it is confirmed that a prisoner is either in prison or unlawfully at large. The Department is in regular contact with the IPS in relation to prisoners who may be claiming social welfare payments. It is currently in talks with the Irish Prison Service to enable more scheduled and frequent data sharing in relation to prisoners.

Social Welfare Benefits 146. Deputy Seán Ó Fearghaíl asked the Minister for Social Protection if she will consider the position of workers at a plant (details supplied); if she will ensure that these workers will re qualify for jobseeker’s benefit, in view of the circumstances which prevail at the plant where lay offs were for five weeks in 2008, 11 weeks in 2009, 22 weeks in 2010 and 13 weeks, to date, in 2011; if she will further explain the reason the workers and management at the plant have been unable to secure a meeting with senior Social Protection personnel to discuss their situation, despite having sought this meeting over a period of six months; if she will direct senior personnel in her Department to meet with the interested parties; and if she will make a statement on the matter. [17801/11]

Minister for Social Protection (Deputy Joan Burton): Jobseeker’s benefit is payable for a maximum period of 312 days or 234 days depending on a person’s social insurance record. Workers at the plant in question are currently in receipt of jobseeker’s benefit due to reduced working week or temporary lay-offs. A person in receipt of jobseeker’s benefit can re-qualify for jobseeker’s benefit when their claim exhausts if they satisfy the normal contributions conditions for qualifying for jobseeker’s benefit and have paid at least 13 Class A social insurance contributions from the date that 156 days benefit was paid on their claim. In addition, a part-time worker or a person working on a systematic short-time basis must have suffered a substantial loss to their normal pattern of employment. The decision as to whether or not the substantial loss clause applies can only be made at the time the benefit exhausts and on a case by case basis. In February 2011, the manager of the local social welfare branch office met with management of the plant where she outlined the conditions for receipt of jobseeker’s benefit and supplied them with a written outline of the details. If there is any further clarification required by the management or worker representatives at the plant they should advise the local office accordingly. To protect the confidentiality of personal details it is not possible to discuss specific cases with management or worker representatives. It is open to individual workers to contact their local social welfare office with any enquiries regarding their eligibility for jobseeker’s benefit. It is the practice of the Department to advise customers well in advance of exhausting their jobseeker’s benefit of the option of applying for jobseeker’s allowance so that their entitlement to jobseeker’s allowance is established once jobseeker’s benefit payment exhausts and where the re-qualification conditions for jobseeker’s benefit are not met.

147. Deputy Bernard J. Durkan asked the Minister for Social Protection if partial interest relief is payable on foot of mortgage of €1340 per month in the case of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [17829/11]

Minister for Social Protection (Deputy Joan Burton): The Health Service Executive (HSE) has advised that there is no record of an application for mortgage interest supplement from

193 Questions— 29 June 2011. Written Answers

[Deputy Joan Burton.] the person concerned. If the person concerned wishes to make an application for mortgage interest supplement he should contact the community welfare officer at his local health centre.

Social Welfare Appeals 148. Deputy John McGuinness asked the Minister for Social Protection if payment of social welfare benefit will be restored in respect of a person (details supplied) in County Kilkenny and if supplementary allowance will be paid while they are waiting for the matter to be resolved. [17841/11]

Minister for Social Protection (Deputy Joan Burton): The Social Welfare Appeals Office has advised me that the jobseeker’s allowance appeal from the person concerned was referred to an Appeals Officer who proposes to hold an oral hearing in this case. A supplementary welfare allowance appeal, by the person concerned, was registered in that office on 08 June 2011 and will, in due course, be referred to an Appeals Officer who will decide whether the case can be decided on a summary basis or whether to list it for oral hearing. The Social Welfare Appeals Office functions independently of the Minister for Social Protec- tion and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.

149. Deputy John McGuinness asked the Minister for Social Protection if a claim for arrears of child benefit has been resolved in respect of a person (details supplied) in County Kilkenny and if the matter will be finalised soon in view of the original date of the claim. [17842/11]

Minister for Social Protection (Deputy Joan Burton): The Social Welfare Appeals Office has advised me that the appeal from the person concerned was referred to an Appeals Officer who proposes to hold an oral hearing in this case. There has been a very significant increase in the number of appeals received by the Social Welfare Appeals Office since 2007 when the intake was 14,070 to 2010 when the intake rose to 32,432. This has significantly impacted on the processing time for appeals which require oral hearings and, in order to be fair to all appellants, they are dealt with in strict chronological order. In the context of dealing with the considerable number of appeals now on hand, the Department has made a further 9 additional appointments to the office in recent weeks. While every effort is being made to deal with the large numbers awaiting oral hearing as quickly as possible, it is not possible to give a date when the person’s oral hearing will be heard, but s/he will be informed when arrangements have been made. The Social Welfare Appeals Office functions independently of the Minister for Social Protec- tion and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.

Question No. 150 withdrawn.

Social Welfare Benefits 151. Deputy Joe Costello asked the Minister for Social Protection the position regarding an application for rent supplement in respect of a person (details supplied) in Dublin 3; if she will explain the request for repayment of rent supplement already paid to them; and if she will make a statement on the matter. [17947/11]

194 Questions— 29 June 2011. Written Answers

Minister for Social Protection (Deputy Joan Burton): People in full-time education are normally excluded from receipt of rent supplement under the supplementary welfare allowance scheme. However, people participating in approved courses under the back-to-education allowance scheme receive a standard weekly rate of payment equivalent to the maximum rate of their previous social welfare payment and may retain any secondary benefits, such as rent supplements, which had been in payment prior to the commencement of their education course. It is also open to them to make application for rent supplement in respect of private rented accommodation if they have not been previously getting a supplement. The benefit to those participating in the back-to-education allowance scheme is that their status as a full-time student does not preclude them from receiving rent supplement. The Health Service Executive (HSE) has advised that the person concerned has been notified that an overpayment will be raised against him as he was in receipt of rent supplement while in full-time education. The HSE further advised that the person concerned was not in receipt of the back-to-education allowance while in full time-education. The HSE has further advised that they are in contact with the person concerned to make arrangements to repay the overpayment.

Social Welfare Fraud 152. Deputy Michael McCarthy asked the Minister for Social Protection the amount of savings made by her in 2008, 2009 and 2010 separately as a result of welfare anti-fraud measures in tabular form; the steps that are currently underway to address welfare fraud; and if she will make a statement on the matter. [17963/11]

Minister for Social Protection (Deputy Joan Burton): The prevention of fraud and abuse of the social welfare system is an integral part of the day-to-day work of the Department. A key objective of the Department’s control strategy is to ensure that the right person is paid the right amount of money at the right time. A four-pronged control strategy has been adopted by the Department, namely: • prevention of fraud and error at the initial claim stage; • early detection through effective review of claims in payment; • measures to deter fraud; and • the pursuit and recovery of overpayments. A number of measures are used by the Department to control fraud and abuse. These include desk reviews of claim papers, home visits, the issue of mailshots to selected customers, database checking and medical reviews in the case of illness payments etc. Controls are exercised at both the initial claim stage and at subsequent stages during the claim life cycle. Claims are reviewed on a regular and targeted basis. The Department is also engaged in data matching with other Government Departments and public bodies for control purposes. Following these data matches, selected cases are referred for further investigation. The Department’s Special Investi- gation Unit carries out a wide range of control activities and projects to investigate social welfare fraud and abuse, some of which are done jointly with the Revenue Commissioners and with the NERA. This Unit also participates in multi-agency vehicle checkpoints with other agencies, including the Gardaí, Traffic Corps, Taxi Regulator and the Revenue Commissioners. This year, the Unit’s focus will include the hidden economy, cases of concurrent working and claiming, multiple claiming and personation cases. In addition, it should be noted that:

195 Questions— 29 June 2011. Written Answers

[Deputy Joan Burton.]

• The new Public Service Card will include a photograph and signature to tackle identity fraud. Roll out of the card is planned to commence later this year; • Reports of suspected fraudulent social welfare claims can be made by calling Central Control Section. Alternatively, there is an on-line facility for members of the public to report their suspicions of social welfare fraud on www.welfare.ie. All reported cases of suspected social welfare are thoroughly investigated; • It is the Department’s policy to consider for prosecution all cases of fraud against the social welfare system. It actively pursues the recovery of debts from all persons who have received social welfare payments to which they were not entitled; and • Fraud and Error Surveys, undertaken by the Department, provide an indicator of the estimated risk of fraud on the schemes surveyed at that point in time. This enables the Department to enhance its procedures and processes in relation to risk and control across the relevant schemes. Control Savings are an estimate of the future savings to the Department as a result of the various control activities. Control savings are not actual monies recovered by the Department but are good indications of the increase in social welfare expenditure that would occur if these activities did not take place. Actual monies recovered arise where the Department raises and recovers overpayments in individual cases. The control savings recorded by the Department for 2010 was €483m. However, due to industrial action, the total 2010 control savings were not fully recorded. The control savings recorded for each of the years 2008, 2009 and 2010 are as outlined below in tabular form.

Total Control Savings Recorded

Year €m

2008 475.9 2009 483.9 2010 483.2

The Department is committed to ensuring that social welfare payments are available to those who are entitled to them. In this regard the control programme of the Department is carefully monitored and the various control measures are continuously refined to ensure that they remain effective.

Public Sector Remuneration 153. Deputy Michael McGrath asked the Minister for Social Protection if she will list the number of positions under her control but outside of the civil service which will be affected by new salary caps; the specific cuts involved and any impact identified on the ability to recruit or to retain specific positions in the next 12 months. [17985/11]

Minister for Social Protection (Deputy Joan Burton): I wish to confirm that none of the positions, in the bodies under the aegis of my Department, are at a salary level of €200,000 or above, and, therefore in this instance, voluntary salary waivers and future reduced starting salary levels would not apply to those positions.

196 Questions— 29 June 2011. Written Answers

Arts Plan 154. Deputy John Paul Phelan asked the Minister for Arts; Heritage and the Gaeltacht if Trinity College, Dublin 2 will play any role in the management of the proposed literary centre at the Bank of Ireland’s historic branch on College Green, Dublin 2; and if he will make a statement on the matter. [17753/11]

Minister for Arts, Heritage and the Gaeltacht (Deputy Jimmy Deenihan): It is too early to say how the management of any putative cultural facility at the Bank of Ireland might be managed or which bodies might have a role in that management.

Public Sector Remuneration 155. Deputy Michael McGrath asked the Minister for Arts; Heritage and the Gaeltacht if he will list the number of positions under his control but outside of the civil service which will be affected by new salary caps; the specific cuts involved and any impact identified on the ability to recruit or to retain specific positions in the next 12 months. [17974/11]

Minister for Arts, Heritage and the Gaeltacht (Deputy Jimmy Deenihan): I am advised that there are no positions in the public service bodies within the ambit of my Department which attract a level of remuneration that will be affected by the new salary caps.

Turbary Rights 156. Deputy Frank Feighan asked the Minister for Arts; Heritage and the Gaeltacht further to Parliamentary Question No. 102 of 22 June 2011, when payment will issue to a person (details supplied); and if he will make a statement on the matter. [17989/11]

Minister for Arts, Heritage and the Gaeltacht (Deputy Jimmy Deenihan): I am advised that the Chief State Solicitor’s Office has confirmed that contracts were received in 2009 in the case referred to by the Deputy but that these have not yet been signed. Processing of applications to the voluntary bog purchase scheme has been slower than anticipated due to capacity constraints in undertaking the conveyancy work involved. In light of these constraints and of available budgetary resources, priority has been given to applications from within Special Areas of Conservation where turf cutting is no longer permitted or must cease by the end of 2011. The individual referred to by the Deputy has applied to sell land located in Corracramph Bog National Heritage Area in County Leitrim. My Department will be in touch with the individual as his application progresses.

Alternative Energy Projects 157. Deputy John Paul Phelan asked the Minister for Communications; Energy and Natural Resources if he will provide specific figures related to British financial support for the Irish wind farm industry; if this support will provide the funding necessary to continue development of the growing Irish renewable sector; and if he will make a statement on the matter. [17754/11]

Minister for Communications, Energy and Natural Resources (Deputy Pat Rabbitte): The British Irish Council agreed an All Islands Approach across Ireland and Britain to encourage commercial development of opportunities for generation and transmission, facilitating the cost- effective harnessing of the renewable energy resources available, increasing integration of their markets and improving security of supply.

197 Questions— 29 June 2011. Written Answers

[Deputy Pat Rabbitte.]

In the fully liberalised energy markets that are already in place, it is up to the private sector to develop energy projects and there are no proposals to change this. There is no UK financial support for the Irish wind industry. Financial supports will only be relevant in the context of developing a renewable electricity export market, where the electricity and the ability to measure the renewable value of that electricity towards EU renewable energy targets is being traded across jurisdictions. Details of any such proposals between Ireland and Britain remain to be worked out in the ongoing work programme.

Telecommunications Services 158. Deputy John Paul Phelan asked the Minister for Communications; Energy and Natural Resources the position regarding the proposed high speed broadband scheme; the prospects of job creation with this plan; and if he will make a statement on the matter. [17760/11]

Minister for Communications, Energy and Natural Resources (Deputy Pat Rabbitte): The provision of electronic communications services, including the provision of high-speed broadband, is, in the first instance, a matter for private sector service providers, regulated by the independent regulator, the Commission for Communications Regulation (ComReg). Under the NewERA proposals in the Programme for Government, there is a commitment to co-invest with the private sector and commercial Semi State sector to provide Next Generation Broadband to every home and business in the State. Earlier this month, I convened a meeting of the Next Generation Broadband Taskforce (NGBT), which I chair. The Taskforce comprises the CEOs of all of the major telecommunications companies currently operating in the Irish market and CEOs of some Internet Service Provider companies. Its purpose is to discuss how best to deliver the optimal policy environment and to identify a roadmap for the speedy delivery of high speed broadband across Ireland. The Taskforce will consider issues such as appropriate targets, investment plans, and the role of Government policy and actions in driving and facilitating investment. The private sector is continuing to invest in the delivery of high speed broadband and new technologies, services and business models are emerging to deliver faster speeds to more consumers. I expect that the NGBT will help to identify the optimal policy position to facilitate that investment and deliver wider customer access to high-speed broadband generally. The delivery of high speed broadband will facilitate employment and economic growth not just in the build out of critical infrastructure but also by providing improved broadband access for business and consumers.

Public Sector Remuneration 159. Deputy Michael McGrath asked the Minister for Communications; Energy and Natural Resources if he will list the number of positions under his control but outside of the civil service which will be affected by new salary caps; the specific cuts involved and any impact identified on the ability to recruit or to retain specific positions in the next 12 months. [17975/11]

Minister for Communications, Energy and Natural Resources (Deputy Pat Rabbitte): My colleague, the Minister for Public Expenditure and Reform, Brendan Howlin, T.D, recently announced the terms of a Government Decision for the introduction of pay ceilings for higher posts across the public service and for CEO posts in Commercial State Companies. The salary caps are as follows:

198 Questions— 29 June 2011. Written Answers

• A general pay ceiling of €200,000 for future appointments to higher positions across the public service; and • A general pay ceiling of €250,000 for future appointments to CEO posts within Commer- cial State Companies. In addition, the Government signalled its intention to seek voluntary waivers of 15% of salary from current incumbents whose salaries are in excess of these figures or a lesser amount if the application of the full 15% reductionwould bring their salary level below the thresholds. By capping the pay of new appointees, the Government recognises there may be a small number of exceptions where the role is of substantial importance in the public service or a Commercial State Company and the person whose appointment is sought brings exceptional or scarce expertise and/or qualifications to the proposed role. Any such exceptions will be subject to the approval of the Minister for Public Expenditure and Reform. Future recruitment will be managed within these parameters. The table sets out the numbers of posts in Bodies under my aegis which exceed the thresholds.

Name of Body Number of posts at CEO level where salary exceeds €250,000

ESB 1 An Post 1 Bord Gáis Éireann 1

Nuclear Plants 160. Deputy Gerry Adams asked the Minister for the Environment; Community and Local Government his views on recently published plans by the British Government that could see it build a next-generation nuclear power plant adjacent to the controversial Sellafield site in Cumbria by 2025. [17707/11]

Minister for the Environment, Community and Local Government (Deputy Phil Hogan): Ireland recognises the right of States to determine their own energy mix, including whether or not to develop nuclear power. It is Ireland’s expectation that, where a State chooses to develop a nuclear power industry, this will be done in line with the highest international standards with respect to safety and environmental protection. In view of the potential for transboundary impacts, however unlikely, the importance of prioritising nuclear safety and environmental protection is a matter of concern to non-nuclear States such as Ireland. With regard to the UK’s plans for new nuclear build, including at Sellafield, my Department has engaged bilaterally with the UK Department of Energy and Climate Change on these plans since they were first signalled a number of years ago. My Department has also participated in formal UK Government consultations on the issue, including on the Nuclear National Policy Statement recently published by the UK. This engagement serves to highlight to the UK any concerns identified from Ireland’s perspective in relation to the planned new nuclear build. Concerns raised to date have related to the long- term management of radioactive waste, about which there are a number of unresolved issues. My Department has also questioned whether the potential cumulative impacts of having multiple nuclear sites in one area have been adequately assessed, including with respect to emergency planning and response and radioactive discharges to the Irish Sea. 199 Questions— 29 June 2011. Written Answers

[Deputy Phil Hogan.]

As part of these ongoing discussions UK authorities have advised my Department that they have identified no likely significant transboundary effects. I will continue in these efforts to ensure that the UK authorities are made aware of and address our concerns and take all possible steps to ensure that the highest levels of safety apply at Sellafield and any other new plants to be developed in the coming years. At the request of my Department, the Radiological Protection Institute of Ireland is conducting an independent assessment of possible impacts for Ireland from the UK’s new nuclear build programme. This work is ongoing and it is expected that the results of the assessment will be provided to my Department in Autumn 2011.

Water and Sewerage Schemes 161. Deputy Michael McCarthy asked the Minister for the Environment; Community and Local Government further to Parliamentary Question No. 266 of 5 April 2011, if Cork County Council has submitted forms to him which were needed to process the Bandon wastewater treatment and sewerage scheme; and if he will make a statement on the matter. [17725/11]

Minister for the Environment, Community and Local Government (Deputy Phil Hogan): Cork County Council submitted the Contract Documents for the sewerage network element of the Bandon Sewerage Scheme Phase 2 on 8 June 2011 and this documentation is currently under consideration in my Department. My Department is awaiting the submission by the Council of a revised brief for the appointment of Consultants to prepare a Preliminary Report for the upgrade of the wastewater treatment plant.

162. Deputy Timmy Dooley asked the Minister for the Environment; Community and Local Government the position regarding the Tubbercurry, Grange and Strandhill waste water treatment plant bundle in County Sligo; when authorisation to proceed with the contract award and commencement of construction stage will be given; and if he will make a statement on the matter. [17824/11]

Minister for the Environment, Community and Local Government (Deputy Phil Hogan): I refer to the reply to Question No. 57 of 17 May 2011 which sets out the position in this matter.

Local Authority Housing 163. Deputy John McGuinness asked the Minister for the Environment; Community and Local Government the level of funding required by Kilkenny County Council to enable them to carry out works to local authority houses in which tenants have special needs; when a decision will be made; and if he will make a statement on the matter. [17834/11]

Minister of State at the Department of the Environment, Heritage and Local Government (Deputy Willie Penrose): My Department allocated €317,377 to Kilkenny County Council on 23 May, 2011 to enable them to meet their expenditure in 2011 in respect of Improvement Works in Lieu/Extensions and Disabled Person’s Grants. It is a matter for the County Council to decide which works should be carried out under these headings subject to full compliance with my Department’s scheme conditions.

Commercial Rates 164. Deputy Brendan Smith asked the Minister for the Environment; Community and Local Government the proposals, if any, he has to reduce the burden on ratepayers, particularly those with small businesses in view of the growing concern about the inequity of the system which

200 Questions— 29 June 2011. Written Answers does not take into account ability to pay, for instance, when a substantial reduction in turnover occurs; and if he will make a statement on the matter. [17848/11]

Minister for the Environment, Community and Local Government (Deputy Phil Hogan): Local authorities are under a statutory obligation to levy rates on any property used for commercial purposes in accordance with the details entered in the valuation lists prepared by the independent Commissioner of Valuation under the Valuation Act 2001. The levying and collection of rates are matters for each individual local authority. The Annual Rate on Valuation (ARV), which is applied to the valuation of each property, determined by the Valuation Office, to obtain the amount payable in rates, is decided by the elected members of each local authority in the annual budget and its determination is a reserved function of a local authority. A ratepayer can appeal the valuation of a property to the Commissioner of Valuation under the provisions of sections 30-33 of the Valuation Act 2001. This Act comes under the remit of the Minister for Finance. I recognise that these are difficult economic times for many businesses and I will continue to keep all matters relating to rates under regular consideration in my Department.

Planning Issues 165. Deputy Jack Wall asked the Minister for the Environment; Community and Local Government if his attention has been drawn to the fact that receivers who have being appointed to development companies who have housing estates on their property books that have not being taken in charge by a local authority are now stating that they have no responsibility for the every day running of such estates where they state there is no saleable assets in the specific estate; if his further attention has been drawn to the fact that this action is leaving hundreds of home owners without many of the services that are provided in such estates that is watersew- erage, lighting and so on when problems occur with such services; the actions he will take to overcome such legal issues; and if he will make a statement on the matter. [17850/11]

Minister of State at the Department of the Environment, Heritage and Local Government (Deputy Willie Penrose): The developer of any development, including a residential development, is statutorily required to complete the development in accordance with the terms of the planning permission and any conditions attached to the permission, such as a requirement for the establishment and operation of a management company. A development which has not been completed in accordance with the planning permission is unauthorised development and may be subject to planning enforcement. These provisions apply to all residential developments, whether or not they are to be managed by a management company. Insofar as the taking in charge of residential developments is concerned, Section 180 of the Planning and Development Act 2000 provides that, where an estate is completed to the satisfaction of the planning authority in accordance with the planning permission (and any conditions attached to the permission), the planning authority must initiate taking in charge procedures as soon as possible following a request to do so by the developer or by the majority of the owners. Similarly, where an estate has not been completed to the standard outlined in the planning permission and the planning authority has not taken enforcement action within the appropriate period, section 180 also provides that the planning authority must initiate taking in charge procedures if requested to do so by the owners of the units concerned. The decision as whether an estate should be taken in charge is ultimately one for the elected members of the planning authority. Section 180 was amended in the Planning and Development (Amendment) Act 2010 to provide that a planning authority may take in charge an unfinished estate at any time after the

201 Questions— 29 June 2011. Written Answers

[Deputy Willie Penrose.] expiration of the planning permission, in situations where enforcement actions have failed or the planning authority has not taken enforcement action. Planning authorities were also specifically empowered in 2010 Act to take in charge part of an estate, or some but not all of the facilities in an estate. Housing estates and apartment developments not taken in charge normally remain private developments until such time as the owners of such developments take the necessary steps to have the development taken over by the relevant local authority. In the case where a receiver has been appointed by a financial institution, it is a matter for that receiver and institution to consider what steps they may wish to take to have the development taken in charge, including the realisation of assets on other sites within the control of the overall group in receivership, to fund any necessary works.

Commerical Rates 166. Deputy Dominic Hannigan asked the Minister for the Environment; Community and Local Government his plans to enable businesses to challenge their local authority rate setting processes; and if he will make a statement on the matter. [17940/11]

Minister for the Environment, Community and Local Government (Deputy Phil Hogan): A ratepayer can appeal the valuation of a property to the Commissioner of Valuation under the provisions of sections 30-33 of the Valuation Act 2001. This Act comes under the remit of the Minister for Finance. A ratepayer may also appeal against the rate made by the local authority. The appeal is to the Circuit Court and must be made within four months of the publication of the notice by the local authority that the rate has been made. The grounds of appeal under the Poor Relief (Ireland) Act 1838 are:— (1) the ratepayer is aggrieved by the rate; (2) the ratepayer has material objection to any person or persons being included in or excluded from the rate; (3) the ratepayer has material objection to the sum charged on any person. The rate is properly due and payable pending the outcome of any appeal.

Capital Projects 167. Deputy Richard Boyd Barrett asked the Minister for the Environment; Community and Local Government the position regarding the capital programme submitted to his Department by Dun Laoghaire Rathdown County Council for approval; and if he will make a statement on the matter. [17954/11]

Minister for the Environment, Community and Local Government (Deputy Phil Hogan): Consideration of the proposed programme of capital projects is a matter for the local authority concerned, in this case Dun Laoghaire Rathdown County Council. In February 2009, my Department set out details of the financial requirements for local authorities relating to their overall management of capital and current accounts. These requirements flow directly from the requirement for Government finances as a whole to be managed in accordance with the Stability and Growth Pact established under the Maastricht Treaty, and the associated limitation on budget deficits.

202 Questions— 29 June 2011. Written Answers

The Government set a limit of €200m for the contribution of the local government sector to the deterioration in the General Government Balance (GGB) in any one year. This is not a new requirement. However, the downturn in the economy and substantial pressures on Government funding generally require a sharp focus in all sectors, including local authorities, to ensure effective control and management of public finances. In order to stay within the overall GGB limits, it is necessary for local authorities to maintain both their current and capital accounts broadly in balance. The only restriction on local authorities is that, in aggregate, capital income equals capital expenditure in the year. Balance is only required at an overall level and this allows considerable scope for authorities to draw on their existing capital reserves as an element of their overall investment programme. The precise manner in which capital and current accounts are managed in order to achieve the overall balance necessary is a matter for individual local authorities themselves. However, within these overall limits, there is additional capacity for non-mortgage borrowing and the expenditure of capital balances on hand by local authorities. Subject to the maintenance of balanced current and capital accounts, and allowing for the repayment of existing borrowings, up to €250m in new loan finance and expenditure of capital balances on hand can be made available to the local government sector annually to fund capital investment in necessary infrastructure projects. The process of prioritising applications for such projects for 2011 is completed and my Department has been guided by local authorities in respect of the most critical projects requiring funding at this time. While I appreciate that these GGB requirements impose limitations on local authorities, there are considerable funding constraints at all levels of Government. It is a matter for every local authority, including Dun Laoghaire Rathdown County Council, to determine its own spending priorities in the context of the annual budgetary process having regard to both locally identified needs and available resources within the GGB limits as set out. My Department will continue to work with all local authorities to ensure that, within the context of the overall GGB requirements, decisions on matters of capital investment are taken in a way which maximises available resources and gives the necessary prioritisation to environmental, economic and social infrastructure.

Social and Affordable Housing 168. Deputy Billy Timmins asked the Minister for the Environment; Community and Local Government the position regarding the new social housing regulations; and if he will make a statement on the matter. [17957/11]

Minister of State at the Department of the Environment, Heritage and Local Government (Deputy Willie Penrose): Sections of the Housing (Miscellaneous Provisions) Act, 2009 dealing with social housing support, and related Social Housing Assessment Regulations, 2011, were commenced on 1 April 2011. A new standard procedure for assessing applicants for social housing was introduced in every housing authority. One of the important provisions of the new regulations is that a household need only apply to one housing authority for the purpose of determining whether or not they have a housing need. The idea behind the new arrangements is to streamline the process of applying for social housing support, both for the applicant and the local authority, while at the same time allowing a reasonable level of choice to households as to the areas in which they would like to receive social housing support. A household may apply to the housing authority for the functional area • where it normally resides — this would include a household residing in rented accommodation, or

203 Questions— 29 June 2011. Written Answers

[Deputy Willie Penrose.]

• where it has a local connection. In accordance with the Regulations a local connection can be established if the applicant or a member of the household; • has lived in the area for a continuous 5 year period previously; • is employed in the area or within 15 km of the area; • is in full-time education, or attending specialist medical care in the area; • has a relative living in the area for 2 years or longer. “Relative” of a member of the household is defined in the Regulations as a parent, adult child or sibling and may include another relative, such as a stepparent, grandparent, grandchild, aunt or uncle, who has close links with the household member in the form of commitment or dependence. A household may then specify up to three areas of choice in any housing authority in the county. At least one of these choices must be in the functional area of the housing authority of application. Therefore, a household living in, or having a local connection with, a town council area, may make a single application to that town council for housing support in the town, but on that application may also express its choice to live in areas within the wider administrative county council area. Alternatively, a household living in, or having a local connection with, the county area may choose to apply to the county council, but also express areas of choice within the town council areas in the county. Eligible households will appear on the waiting lists of each of the authorities where they have expressed areas of choice. A housing authority may also decide at its discretion to accept a household who does not meet these residence or local connection criteria. In this case, the household may only express areas of choice within the functional area of that particular housing authority.

Public Sector Remuneration 169. Deputy Michael McGrath asked the Minister for the Environment; Community and Local Government if he will list the number of positions under his control but outside of the civil service which will be affected by new salary caps; the specific cuts involved and any impact identified on the ability to recruit or to retain specific positions in the next 12 months. [17979/11]

Minister for the Environment, Community and Local Government (Deputy Phil Hogan): The only position in agencies under the aegis of my Department that will be affected is the Chairperson of An Bord Pleanála. The Government recently approved the appointment of a new Chairperson to An Bord Pleanála. The Chairperson of An Bord Pleanála holds office on such terms and conditions as are determined by the Minister for the Environment, Community and Local Government with the consent of the Minister for Finance and in accordance with section 106(14) of the Planning and Development Acts 2000-2010. The pay of the Chairperson of the Board of An Bord Pleanála is currently linked to the pay of a judge of the High Court, but it is intended that relevant legislation will be amended in this regard as soon as possible.

Legal Employment 170. Deputy Seán Conlan asked the Minister for Justice and Equality the opportunities he will make available to law graduates who have completed the FE1 solicitor’s exams but who

204 Questions— 29 June 2011. Written Answers cannot, due to the economic downturn, secure apprenticeships to complete their qualification. [17797/11]

Minister for Justice and Equality (Deputy Alan Shatter): I share the Deputy’s concern that access to the solicitor’s profession is limited because of the way in which apprenticeships operate. This long-standing difficulty is particularly exacerbated by the recession in the economy at present. I have recently been in touch with the Law Society to ascertain its views on how matters can be improved and I am looking forward to its response.

Legal Aid Service 171. Deputy John Lyons asked the Minister for Justice and Equality the average waiting period by county, to access free legal aid services in 2009 and 2010; the waiting times by county; his plans to address these waiting times; and if he will make a statement on the matter. [17715/11]

Minister for Justice and Equality (Deputy Alan Shatter): I can inform the Deputy that, while it is difficult to quantify average waiting times for access to free civil legal aid services, the information below provides a breakdown of the waiting time for a non-prioritised matter in each County for 2009 and 2010. On the matter of the Legal Aid Board’s plans to address the waiting times the Deputy might wish to review the detailed information provided in Parliamen- tary Questions number 1 and 15 of 23 June 2011 in which I explained the background to the increased waiting times and the measures that the Board has taken to try to alleviate the problem.

County Average Waiting Times (Months) Average Waiting Times (Months) 2009 2010

Dublin 4 4 Cork 5 6 Cavan 4 4 Clare 3 3 Donegal 2 3 Galway 6 3 Kerry 4 5 Kildare 5 6 Kilkenny 2 3 Laois 4 4 Limerick 1 2 Longford 4 4 Louth 0 0 Mayo 3 4 Meath 3 4 Monaghan 3 4 Offaly 3 4 Sligo 3 4 Tipperary 5 6 Waterford 3 3 Westmeath 4 5 Wexford 5 7 Wicklow 6 6

205 Questions— 29 June 2011. Written Answers

[Deputy Alan Shatter.]

I can further inform the Deputy that there are no waiting lists associated with the criminal legal aid scheme. The assignment of lawyers, or the granting of aid are matters for the Court and, as such, are handled by the judiciary. The Court must be satisfied that, by reason of the “gravity of the charge” or “exceptional circumstances”, it is essential in the interests of justice that the applicant should have legal aid. An applicant for criminal legal aid must establish to the satisfaction of the Court that his/her means are insufficient to enable him/her to pay for legal representation him/herself and if the Court is so satisfied it will award criminal legal aid.

172. Deputy John Lyons asked the Minister for Justice and Equality the number of persons by county currently waiting to access free legal aid services: if he will provide a breakdown of the nature of the applications that is family law and so on; and if he will make a statement on the matter. [17716/11]

Minister for Justice and Equality (Deputy Alan Shatter): I can inform the Deputy that as of 1 June 2011 there were 3,806 persons awaiting a first appointment with a solicitor under the civil legal aid scheme. A breakdown of this figure by county is provided in the following table. The Legal Aid Board does not maintain management information in relation to the nature of the problem for which applicants seek legal services. However, I understand that of the cases in which the Board provided services in 2010 approximately 84% of them related to family disputes, with a further 4% related to children at risk of being taken into care by the HSE. The remainder related to a range of non-family law civil matters.

County Numbers Waiting at 1 June 2011

Dublin 827 Cork 434 Cavan 92 Clare 113 Donegal 27 Galway 74 Kerry 92 Kildare 238 Kilkenny 217 Laois 205 Limerick 41 Longford 82 Louth 24 Mayo 120 Meath 141 Monaghan 108 Offaly 106 Sligo 81 Tipperary 178 Waterford 104 Westmeath 137 Wexford 236 Wicklow 129

206 Questions— 29 June 2011. Written Answers

Proposed Legislation 173. Deputy Dan Neville asked the Minister for Justice and Equality his plans to introduce legislation to regularise the time frame to register title following completion to purchase property. [17722/11]

Minister for Justice and Equality (Deputy Alan Shatter): The position is that under section 24 of the Registration of Title Act 1964 compulsory first registration of title has been extended to all sales of freehold land and assignments of leases of more than 21 years’ duration with effect from 1 June 2011. This means that where any such unregistered land is sold or assigned after that date, the title must be registered in the Property Registration Authority. Section 25 of the 1964 Act (as substituted by section 128 of the Land and Conveyancing Law Reform Act 2009) specifies the consequences of non-registration. It provides that a person shall not acquire an estate or interest in land in any case in which registration of title is compulsory unless the person is registered as owner of the land within 6 months after the purported acquisition or at such later time as the Property Registration Authority may sanction in any particular case. Where land which is already registered in the Property Registration Authority is sold or assigned, the Registration of Title Act 1964 does not specify a time limit within which the change in ownership must be registered. It is however very much in the interests of a purchaser to register the change without undue delay as the estate or interest in the land, together with all associated rights, vest on actual registration and in the absence of such registration, the protection afforded to purchasers by registration, including the State guarantee of title, will not apply to the land.

Residency Permits 174. Deputy Dara Murphy asked the Minister for Justice and Equality the immigration status of a person (details supplied) in County Cork; and if he will make a statement on the matter. [17727/11]

Deputy Alan Shatter: I have been informed by the Irish Naturalisation and Immigration Service that the person in question has both permission to remain and work in the State. I should remind the Deputy that queries in relation to the status of individual Immigration cases may be made direct to INIS by Email using the Oireachtas Mail facility which has been specifically established for this purpose. The service enables up-to-date information on such cases to be obtained without the need to seek this information through the more administra- tively expensive Parliamentary Questions process.

207 Questions— 29 June 2011. Written Answers

Small Claims Court 175. Deputy Brian Stanley asked the Minister for Justice and Equality his plans to increase the threshold of claims that may be brought to the Small Claims Court; and if he will make a statement on the matter. [17732/11]

Deputy Alan Shatter: The current maximum value of cases that can be taken under the small claims procedure of the District Court is €2,000. This limit was set in 2006 and was last reviewed in 2009 in advance of the expansion of the scheme to cater for business to business claims of the same nature which came into effect on 5 January 2010. I am informed that the review found that the existing limit was appropriate and should remain unchanged as an increase risked a negative impact on the level of service provided by Small Claims Registrars throughout the country. The procedure is labour intensive but provides a satisfactory service at present. In addition, new European Small Claims Procedures, provided for under Regulation (EC) No. 861/2007, were introduced in 2009. These procedures also provided for a maximum claim limit of €2,000. My Department will continue to keep the matter under review.

176. Deputy Brian Stanley asked the Minister for Justice and Equality if a company contracted by a person to provide a service to that person may bring seek redress from that person through the Small Claims Court for non-payment of the aforementioned service; and if he will make a statement on the matter. [17733/11]

Deputy Alan Shatter: The small claims procedure of the District Court is an alternative method of dealing with a civil proceeding in respect of a small claim. The majority of claims are dealt with by administrative staff in the local District Court offices. Typical claims are: • a claim in respect of goods or services purchased from somebody selling them in the course of a business • minor damage to property (excluding personal injuries) and • the non-return of a rent deposit for certain types of dwellings. Since 5 January 2010 the procedure has been expanded to allow for business to business claims of the same nature. The procedure does not cover claims in respect of debts, personal injuries or breaches of leases or higher purchase agreements. Generally such cases may be more effectively and speedily dealt with by way of civil bill. However I have requested my officials to review the matter.

Prison Service Recruitment 177. Deputy Sean Fleming asked the Minister for Justice and Equality when recruitment will re-commence into the Irish Prison Service for the position of prison officers; the position regarding those who have applied some time ago and are currently on a panel; if persons will be recruited from this panel this year; the number expected to be recruited; and if he will make a statement on the matter. [17734/11]

Deputy Alan Shatter: I am informed by the Irish Prison Service that a panel of suitable candidates for the position of Prison Officer was created following a recruitment process in 2008 and this remains in place. A total of 480 candidates have so far been called for interview, and 179 have been recruited. Any further recruitment will be considered in the context of discussions which are ongoing in relation to staffing levels under the Transformation Agenda and the Croke Park Agreement.

208 Questions— 29 June 2011. Written Answers

In this context too, the Deputy will be aware that the Irish Prison Service is subject to the moratorium on public service recruitment and recruitment is subject to the approval of the Minister for Public Service Expenditure and Reform.

Garda Equipment 178. Deputy Seán Kenny asked the Minister for Justice and Equality the number of additional Garda riot helmets and garda riot shields purchased in 2008, 2009, 2010 and to date in 2011; the cost for each year and the name and contact details of the company that supplies An Garda Síochána with the riot shields and riot helmets. [17745/11]

Deputy Alan Shatter: I am informed by the Garda authorities that 1,350 helmets were purchased in 2008, 350 in 2009 and 150 in 2010. The contract for supply of helmets was awarded to Helmet Integrated Systems Ltd., Stranraer, Scotland. No riot shields were purchased in the period referred to by the Deputy. I am further advised that, for commercial competition reasons, it would not be appropriate to provide details of the cost of individual items.

Juvenile Liaison Service 179. Deputy Seán Kenny asked the Minister for Justice and Equality the number of Garda juvenile liaison officers by rank in the Dublin region; the stations to which they were attached and his plans to increase this number. [17746/11]

Deputy Alan Shatter: I have been informed by the Garda Commissioner that the number of Garda Juvenile Liaison Officers by rank in the Dublin Region on 31 May 2011, the latest date for which figures are readily available, was as set out in the table hereunder:

Division/Station Sergeants Garda Total

DMR South Central 1 4 5 DMR North Central 0 3 3 DMR North 1 10 11 DMR East 1 5 6 DMR South 1 8 9 DMR West 1 8 9

Total 5 38 43

I wish to inform the Deputy that the Programme for Government includes a commitment to give a special emphasis to alternative programmes for young offenders through extensions to the Juvenile Liaison Officer Scheme and the Diversion Programme. I will be considering the implementation of this measure in consultation with the Garda Commissioner and with my colleague the Minister for Children and Youth Affairs.

Crime Prevention 180. Deputy Seán Kenny asked the Minister for Justice and Equality the number of Garda crime prevention officers by rank in the Dublin region; the stations to which they were attached and his plans to increase this number [17747/11]

Deputy Alan Shatter: I have been informed by the Garda Commissioner that within each Garda Division in the Dublin Metropolitan Region there are specialist Crime Prevention 209 Questions— 29 June 2011. Written Answers

[Deputy Alan Shatter.] Officers who are of Sergeant Rank. They are trained to encourage, promote and advise on crime prevention to both private and business communities. There are 10 Crime Prevention Officers in the Dublin Metropolitan Region (DMR), 6 of which are attached to the 6 Garda Divisions as set out in the following table:-

South North East West North Central South Central

Tallaght Santry Shankill Blanchardstown Store Street Pearse Street

The remaining 4 are attached to the National Crime Prevention Unit in Harcourt Square providing national support. The allocation of Garda resources, including personnel, is a matter for the Garda Commissioner and his senior management team. Resource levels are constantly monitored, in conjunction with crime trends and the situation is kept under continuing review to ensure optimum use is made of all resources and the best possible Garda service is provided to the public.

Ministerial Transport 181. Deputy Seán Kenny asked the Minister for Justice and Equality the number of drivers and vehicles that are currently in use for the Ministerial transport for the years 2008, 2009, 2010 and to date in 2011; the age and type of vehicles that are being used in each of the years and the cost of the Ministerial transport for the years 2008, 2009, 2010 and to date in 2011 [17748/11]

Deputy Alan Shatter: I have requested the information sought by the Deputy from the Garda authorities. I will be in contact with the Deputy when this information is to hand.

Garda Transport 182. Deputy Seán Kenny asked the Minister for Justice and Equality the amount spent on maintenance and repairs to Garda vehicles for the years 2008, 2009, 2010 and to date in 2011; the name of the garages that were awarded the contract for the maintenance and repairs to Garda vehicles and the length of the contract. [17749/11]

Deputy Alan Shatter: I have requested the information sought by the Deputy from the Garda authorities. I will be in contact with the Deputy when this information is to hand.

Magdalene Laundries 183. Deputy Mary Lou McDonald asked the Minister for Justice and Equality the date the independent chair of the Magdalene Laundries inter-Departmental Committee will be appointed; will the terms of reference of the Committees’ investigation include access to relevant Government Departments records including his Deparment who approved on a Statutory basis the use of St. Mary Magdalene’s Asylum, Lower Sean McDermott Street, Dublin 1 as a remand institution. [17766/11]

Deputy Alan Shatter: The Deputy can be assured that I am considering the appointment of an appropriate independent person to chair the inter-departmental Committee and hope to make an announcement next week. As I said in the House last week, this will be a person of stature whose independence will not be open to question. All relevant Departments which retain information that gives an insight into the level of State involvement or contact with the Laundries will be represented on the committee. Its 210 Questions— 29 June 2011. Written Answers terms of reference will include the making of such records available as far as possible while respecting the rights of the individuals to privacy. The committee will be required to produce an interim report on progress made within three months of its establishment. I might also add that my own Department has previously offered, and will continue to offer, every assistance possible to allow access to the available records in the normal way.

Proposed Legislation 184. Deputy Dominic Hannigan asked the Minister for Justice and Equality when the heads of Bill for the legislation required to end upward only rents will be published; and if he will make a statement on the matter. [17771/11]

Deputy Alan Shatter: I intend to bring proposals before Government in the near future to address the commitment in the Programme for Government to abolish upwards only rent reviews in existing business leases. No decision has yet been taken as to when any legislative proposals will be published.

Refugee Status 185. Deputy Aodhán Ó Ríordáin asked the Minister for Justice and Equality the position regarding an application for family re-unification in respect of a person (details supplied) in Dublin 9; and if he will make a statement on the matter. [17772/11]

Deputy Alan Shatter: I am informed by the Irish Naturalisation and Immigration Service (INIS) that the person referred to by the Deputy was granted refugee status in April 2005 and became eligible to apply for family reunification. He subsequently made a Family Reunification application in respect of his wife and daughter in October 2005. I am advised that the file relating to this application is not lost and covers the period from 2005 to date. The applicant has failed at all times in that period to provide the necessary information and documentation to allow the application to progress to decision stage. I am further advised by INIS that a letter issued to the legal representative of the person concerned on 28th April 2011 requesting further information and original documentation. The necessary information and documentation requested have not been received and a further letter has issued detailing the information necessary to finalise the application. I shouldremind the Deputy that queries in relation to the status of individual Immigration cases may be made direct to INIS by Email using the Oireachtas Mail facility which has been specifically established for this purpose. The service enables up-to-date information on such cases to be obtained without the need to seek this information through the more administra- tively expensive Parliamentary Questions process.

Garda Vetting of Personnel 186. Deputy Seán Crowe asked the Minister for Justice and Equality the numbers of persons living in Dublin South West who are currently awaiting garda vetting for supervised work or voluntary work with children and vulnerable adults; the longest waiting period for same; the number of personnel assigned to deal with the waiting lists to an acceptable level and if he will consider requesting that the Garda Commissioner temporarily assign additional staff to the Vetting Unit to speed up the processing of applications. [17787/11]

Deputy Alan Shatter: I am informed by the Garda authorities that applications for Garda vetting received from registered organisations are recorded by name and date of birth of the

211 Questions— 29 June 2011. Written Answers

[Deputy Alan Shatter.] person for whom a vetting request is being made and not by reference to geographical origin. Accordingly, it is not possible to provide the information sought by the Deputy. I recognise that it is important to process these applications within a reasonable time frame both for the benefit of the applicants and the organisations involved. I am determined to address this aspect of the Garda vetting process. A number of immediate measures are being taken to improve the situation. The sanction of the Department of Finance has been obtained to retain the services of ten temporary employees in the Garda Central Vetting Unit (GCVU). A further sanction has been obtained to engage an additional ten temporary employees for the Unit and the process of recruiting these is underway. This should have an impact on processing times. In addition, further steps are under consideration with a view to alleviating the pressure on the staff of the GCVU and to reduce the time taken for the processing of applications. I am informed by the Garda Authorities that at present there is a total of five Gardaí,76 full-time Garda civilian personnel and ten temporary civilian personnel assigned to the GCVU. This represents a very significant increase in the level of personnel assigned to the unit, which stood at only 13 before the current process of development in Garda vetting began in 2005. The average processing time for vetting applications fluctuates in line with periods of increased demand. In processing an individual vetting application, additional time may be required in cases where clarification is needed as to the details provided or where other enquiries need to be made, for example, when the person in question has lived and worked abroad. There will always be a reasonably significant time period required to process a vetting application. Registered organisations have been advised to take account of this in their recruitment and selection process. However, the Gardaí make every effort to reduce the time to the minimum possible consistent with carrying out what are very necessary checks. I am informed by the Garda Authorities that, at present, the average processing time for vetting applications received at the GCVU is approximately 10 weeks. The GCVU has managed a substantial increase over recent years in the numbers of vetting applications it receives from around 188,000 in 2007 to almost 292,000 in 2010. At present, there are approximately 55,000 applications in the course of being processed.

Missing Persons 187. Deputy John McGuinness asked the Minister for Justice and Equality his plans regarding the demand for a special unit within the police force to investigate cases of missing persons; if he will consider the on going use of qualified persons in this area of investigation from other jurisdiction; his plans to put in use the EU hotline number reserved by the EU commission since 2007 relative to missing children; and if he will make a statement on the matter. [17832/11]

Deputy Alan Shatter: I am informed by the Garda authorities that all incidents where a person has been reported missing remain under investigation until such times as the person is located. The District Officer (Superintendent) in the area where a person has gone missing takes direct responsibility for all investigations and searches carried out. Local investigation teams are appointed by the District Officer, and all means necessary, including the services of specialist units, are deployed to assist in these investigations, as considered appropriate. The Garda Missing Persons Bureau, which is responsible for all data relating to missing persons, provides expert assistance and advice to District Officers in all high risk missing person cases. Incidents of persons reported missing are subject to review, on a regular basis, by the Missing Persons Bureau.

212 Questions— 29 June 2011. Written Answers

I am informed that the Garda authorities are satisfied that adequate resources, including staff and technological resources, are in place to deal with missing persons cases and are in line with best international practice. The telephone number to which the Deputy refers has been reserved by the European Com- mission as a common missing children telephone hotline throughout the EU. It is made available by national telecoms regulators to organisations they consider to be qualified to offer such a service. The allocation of the number in Ireland is therefore a matter in the first instance for the Commission for Communications Regulation (ComReg) and the Department of Communi- cations, Energy and Natural Resources. I am informed that ComReg has published an information note on its website which makes all relevant information available to potential applicants who may wish to provide the 116 000 service. It also issued on a number of occasions national press advertisements inviting applications, most recently on 20 June.

Fines Collection 188. Deputy John McGuinness asked the Minister for Justice and Equality the total value of all outstanding fines for each of the past five years after adjusting for appeals or cancellations; the collection rate for each year; the actions being taken to improve the system of collection; the value of outstanding fines which are deemed as impossible to collect; and if he will make a statement on the matter. [17838/11]

Minister for Justice and Equality (Deputy Alan Shatter): Under the current system for fines collection, the value of fines outstanding is assessed on the basis of a rolling 12 month period. For the 12 months to the end of December 2010, the total number of fines imposed was 120,000 with a value of €43m. After adjusting for appeals and cancellations the total number of fines collectable was 92,000 with a value of €29m. The number of collectable fines paid was 68,000 with a value of €21m resulting in a collection rate of 73% based on volume and 71% based on value. However, indications to end of May 2011 are that compliance rates both in terms of volume and value of fines collected have decreased to approximately 65%. This may, in part, be attributable to the general downturn in the economy. I am advised that information on the value and collection rate for fines in the previous five years is not readily available but the estimated compliance rate was in the region of 50%. The improvement demonstrated in respect of the compliance rate during 2010 yielded significant additional revenue of approximately €8m to the Exchequer and results from improvements made to the fines collection process including the introduction of options for online payment facilities. In late 2010, following a competitive procurement process for the collection of unpaid fines, a Fines Collection Service was appointed to assist in the collection process. The service is funded from a commission payment from the proceeds of fines collected and is being closely monitored. The average commission being 9%. The Garda authorities have considerably strengthened their process of warrants enforcement in recent years. Various measures aimed at reducing the number of warrants on hand were identified and are being implemented. These measures include the re-assignment of additional Gardaí to this function and the appointment of Inspectors with responsibility for execution of outstanding warrants. The position is closely monitored by senior Garda management. I can assure the Deputy that the area of fines collection is being kept under close review.

213 Questions— 29 June 2011. Written Answers

Public Sector Remuneration 189. Deputy Michael McGrath asked the Minister for Justice and Equality if he will list the number of positions under his control but outside of the civil service which will be affected by new salary caps; the specific cuts involved and any impact identified on the ability to recruit or to retain specific positions in the next 12 months. [17984/11]

Minister for Justice and Equality (Deputy Alan Shatter): I assume the Deputy is referring to the announcement by my colleague the Minister for Public Expenditure and Reform concerning pay ceilings for CEOs of Semi States and senior public sector posts. I await the issuing of formal guidelines in relation to the new policy by the Minister for Public Expenditure and Reform which will set out the posts to which the policy will apply and the posts which may be excepted. At this point I will be able to assess what legislative amendments may be required to give full effect to the new policy and what other considerations need to be taken into account.

190. Deputy Michael McGrath asked the Minister for Defence if he will list the number of positions under his control but outside of the civil service which will be affected by new salary caps; the specific cuts involved and any impact identified on the ability to recruit or to retain specific positions in the next 12 months. [17977/11]

Minister for Defence (Deputy Alan Shatter): There are no positions under the aegis of the Department of Defence which will be affected by the introduction of the new pay ceilings for higher posts across the public service and for CEO posts in Commercial State Companies.

Departmental Schemes 191. Deputy Michael Moynihan asked the Minister for Agriculture; Fisheries and Food the reasons behind the closure of the targeted agricultural modernisation scheme in view of the fact that only €24.7 million of the €90 million available had been applied for. [17804/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): The Targeted Agri- cultural Modernisation Schemes (TAMS) were temporarily suspended for new applications on 8 June 2011 until the position in relation to the availability of funds for next year is clarified. As I indicated at the time, I could not defend a situation in which my Department continued to accept applications under schemes when there was a question-mark over the financing of those grants when they became due for payment. The TAMS include both my Department’s Bio-energy Scheme as well as the five measures in regard to on-farm investment (i.e. poultry welfare, sow welfare, sheep fencing/handling, dairy equipment and rainwater harvesting). As the Deputy has mentioned in his Question, an indicative allocation of €90 million is provided for the five on-farm investment schemes concerned in Ireland’s Rural Development Programme. However, although my Department’s Estimates for 2011 provide sufficient funding for these schemes for this year, the capital budget for my Department for 2012 is under severe pressure and I am not in a position to accept further applications under these schemes until the comprehensive review currently taking place of my Department’s expenditure is completed. I also announced on 8 June that applications received prior to the date of suspension of the TAMS would be processed and approved up to the level of the current tranches of funding. As the values, in grant terms, of the applications received under the five schemes concerned are within the financial ceilings of the current tranches, all eligible applications received up to that date under the five schemes concerned will be processed to approval stage.

214 Questions— 29 June 2011. Written Answers

I hope to be in a position to make an announcement in relation to the future of the schemes concerned in the very near future.

Question No. 192 withdrawn.

Departmental Staff 193. Deputy Seán Kenny asked the Minister for Agriculture; Fisheries and Food the number of persons employed by him by grade and the pay scale by grade. [17737/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): The detail requested by the Deputy is contained in the table below.

PAYSCALE

GRADE DESCRIPTION FTE MIN. (€) MAX. (€) LSI1(€) LSI2(€)

ADVISORY COUNSEL 1.0 71,359.00 85,628.00 88,305.00 90,988.00 GRADE 3 — PPC AGRICULTURAL 33.0 57,225.00 75,476.00 78,146.00 80,814.00 INSPECTOR AGRICULTURAL 41.4 60,200.00 79,319.00 82,126.00 84,935.00 INSPECTOR — PPC AO HIGHER SCALE — 3.0 42,838.00 60,224.00 PPC AO STANDARD SCALE 2.0 31,619.00 51,653.00 57,532.00 55,412.00 AO STANDARD SCALE 19.0 33,247.00 54,329.00 56,314.00 58,294.00 — PPC AREA 14.0 49,818.00 59,617.00 61,677.00 63,739.00 SUPERINTENDENT ASSISTANT SECRETARY 6.0 127,796.00 146,191.00 ASST AGRICULTURAL 9.0 33,526.00 55,757.00 57,686.00 59,604.00 INSP AGRIC ASST AGRICULTURAL 95.9 35,254.00 58,655.00 60,681.00 62,701.00 INSP AGRIC - ASST PRINCIPAL 83.0 61,966.00 72,268.00 74,514.00 76,768.00 ASST PRINCIPAL — PPC 8.0 65,185.00 75,934.00 78,302.00 80,678.00 ASST PRINCIPAL 23.8 67,913.00 79,337.00 81,821.00 84,296.00 HIGHER ASST PRNCP SNR SYS 9.0 61,966.00 72,268.00 74,514.00 76,768.00 ANALYST CHEMIST 1.0 33,598.00 57,964.00 59,965.00 61,963.00 CHEMIST — PPC 1.0 35,326.00 60,974.00 63,077.00 65,188.00 CHIEF INSPECTOR 1.0 154,839.00 AGRIC CHIEF TECHNOLOGIST 1.0 55,678.00 73,685.00 CHIEF VETERINARY 1.0 154,839.00 OFFICER CIVILIAN DRIVER 4.0 631.75 p.w. CLEANER 13.8 380.76 p.w 412.73 p.w 423.94 p.w 442.07p.w CLEANER — PPC 1.0 397.64 p.w 433.97 p.w 446.24 p.w 465.35 p.w CLEANER PART- TIME 9.0 126.97 p.w. CLERICAL OFF 240.3 22,015.00 33,735.00 34,954.00 35,515.00 CLERICAL OFF — PPC 326.4 23,177.00 35,471.00 36,753.00 37,341.00 CLERICAL OFF DATA 2.5 22,015.00 33,735.00 34,954.00 35,515.00 ENTRY

215 Questions— 29 June 2011. Written Answers

[Deputy Simon Coveney.] GRADE DESCRIPTION FTE MIN. (€) MAX. (€) LSI1(€) LSI2(€)

CLERICAL OFF PROGR 6.0 23,177.00 35,471.00 36,753.00 37,341.00 — PPC CLERICAL OFF SEN 1.0 22,015.00 33,735.00 34,954.00 35,515.00 COMPUTER OP CLERICAL OFF SEN 4.0 23,177.00 35,471.00 36,753.00 37,341.00 COMPUTER OP - CLERICAL OFF TEMP 17.3 22,015.00 33,735.00 34,954.00 35,515.00 CLERICAL OFF TEMP 1.0 22,015.00 33,735.00 34,954.00 35,515.00 NEW ENTRANT CLERICAL OFF TYP 49.9 22,015.00 33,735.00 34,954.00 35,515.00 CLERICAL OFF TYP — 17.7 23,177.00 35,471.00 36,753.00 37,341.00 PPC CLERICAL OFFICER 135.1 23,042.00 36,267.00 HIGHER SCALE CLERICAL OFFICER 0.8 22,015.00 33,735.00 34,954.00 35,515.00 PROGRAMMER CLERICAL OFFICER 1.0 22,015.00 33,735.00 34,954.00 35,515.00 TEMPORARY TER CO NEW ENTRANT PPC 105.6 22,015.00 33,735.00 34,954.00 35,515.00 CRAFTSMAN 7.5 667.58 p.w. 706.29 p.w DAIRY PRODUCE 4.0 40,987.00 50,725.00 52,473.00 54,219.00 OFFICER DEPUTY CHIEF 1.0 93,197.00 106,826.00 110,172.00 113,503.00 INSPECTOR DEPUTY CHIEF 1.0 52,439.00 70,481.00 TECHNOLOGIST DEPUTY CHIEF 2.0 105,691.00 112,291.00 115,817.00 119,405.00 VETERINARY OFF DEPUTY CHIEF 1.0 111,125.00 118,130.00 121,910.00 125,689.00 VETERINARY OFF - DIRECTOR OF 1.0 121,208.00 138,655.00 LABORATORIES DISTRICT 94.6 35,054.00 53,816.00 55,782.00 57,745.00 SUPERINTENDENT DUBLIN GENERAL 4.0 507.93 p.w 564.27 p.w. OPERATIVE BAND 3 ENGINEER GRADE 1 2.0 65,247.00 75,476.00 78,146.00 80,814.00 CIVIL ENGINEER GRADE 1 1.0 68,553.00 79,319.00 82,126.00 84,935.00 CIVIL — PPC ENGINEER GRADE 2 2.0 55,863.00 64,956.00 67,051.00 69,132.00 CIVIL ENGINEER GRADE 2 3.0 58,765.00 68,260.00 70,448.00 72,642.00 CIVIL — PPC ENGINEER GRADE 3 1.0 30,738.00 55,757.00 57,686.00 59,604.00 CIVIL ENGINEER GRADE 3 5.0 32,317.00 58,656.00 60,681.00 62,701.00 CIVIL — PPC EO HIGHER SCALE 90.2 29,024.00 47,379.00 EO HIGHER SCALE — 9.6 30,516.00 49,837.00 PPC EO STANDARD SCALE 176.4 29,024.00 42,760.00 44,187.00 45,616.00 EO STANDARD SCALE — 109.5 30,516.00 44,967.00 46,473.00 47,975.00 PPC

216 Questions— 29 June 2011. Written Answers

GRADE DESCRIPTION FTE MIN. (€) MAX. (€) LSI1(€) LSI2(€)

EO TRAINEE ANALYST 11.0 29,024.00 47,379.00 HIGHER EO TRAINEE ANALYST 2.0 30,516.00 49,837.00 HIGHER PPC EO TRAINEE ANALYST 12.6 29,024.00 42,760.00 44,187.00 45,616.00 STANDARD EO TRAINEE ANALYST 24.0 30,516.00 44,967.00 46,473.00 47,975.00 STND — PPC FIRST ASST SOLICITOR 2.0 67,913.00 81,471.00 84,016.00 86,555.00 AGRIC FORESTRY INSPECTOR 2.0 65,247.00 75,476.00 78,146.00 80,814.00 GRADE 1 FORESTRY INSPECTOR 1.0 68,553.00 79,319.00 82,126.00 84,935.00 GRADE 1 — PPC FORESTRY INSPECTOR 9.0 55,863.00 64,956.00 67,051.00 69,132.00 GRADE 2 FORESTRY INSPECTOR 4.0 58,765.00 68,260.00 70,448.00 72,642.00 GRADE 2 — PPC FORESTRY INSPECTOR 11.0 30,738.00 55,757.00 57,686.00 59,604.00 GRADE 3 FORESTRY INSPECTOR 5.0 32,317.00 58,656.00 60,681.00 62,701.00 GRADE 3 — PPC HARBOUR CONSTABLE 2.0 634.91 p.w 705.30 p.w. HARBOUR MASTER 3.0 30,738.00 55,757.00 57,686.00 59,604.00 HARBOUR MASTER — 3.0 32,317.00 58,656.00 60,681.00 62,701.00 PPC HEAD LABORATORY 1.0 536.22 p.w. 625.33 p.w. 646.52 p.w. 669.87 p.w. ATTENDANT HEAD OF 1.0 105,691.00 112,291.00 115,817.00 119,405.00 AGRICULTURAL LABS HEAD SERVICES 1.0 536.22 p.w. 625.33 p.w. 646.52 p.w. 669.87 p.w. OFFICER HEO FORMER SUPV OFF 1.0 46,426.00 57,251.00 HIGHER SCA HEO HIGHER SCALE 63.1 46,426.00 57,251.00 HEO HIGHER SCALE — 1.0 48,831.00 60,224.00 PPC HEO STANDARD SCALE 101.9 43,816.00 51,653.00 53,532.00 55,415.00 HEO STANDARD SCALE 50.7 46,081.00 54,329.00 56,314.00 58,294.00 — PPC HEO SYSTEMS ANALYST 14.0 46,426.00 57,251.00 HIGHER HEO SYSTEMS ANALYST 1.0 48,831.00 60,224.00 HIGHER PPC HEO SYSTEMS ANALYST 14.2 43,816.00 51,653.00 53,532.00 55,415.00 STANDARD HEO SYSTEMS ANALYST 8.0 46,081.00 54,329.00 56,314.00 58,294.00 STND — PPC HIGHER LEGAL 1.0 43,816.00 51,653.00 53,532.00 55,415.00 EXECUTIVE HIGHER SEED ANALYST 3.8 34,638.00 44,051.00 INDUSTRIAL FOREMAN 5.0 871.87 p.w 899.67 p.w. INSPECTOR & ENG 1.0 78,939.00 92,672.00 95,550.00 98,424.00 FISHERIES INSPECTOR GRADE 1 1.0 65,247.00 75,476.00 78,146.00 80,814.00

217 Questions— 29 June 2011. Written Answers

[Deputy Simon Coveney.] GRADE DESCRIPTION FTE MIN. (€) MAX. (€) LSI1(€) LSI2(€)

INSPECTOR GRADE 2 5.8 55,863.00 64,956.00 67,051.00 69,132.00 LABORATORY ANALYST 23.2 32,780.00 49,592.00 50,570.00 LABORATORY ANALYST 44.1 34,463.00 52,162.00 53,194.00 — PPC LABORATORY 19.0 397.79 p.w 507.08 p.w 524.32 p.w 544.03 p.w ATTENDANT AG&MAR LABORATORY 9.0 415.56 p.w 533.73 p.w. 551.74 p.w 571.94 p.w ATTENDANT AG& MAR- PPC NRP — CLERICAL 13.0 379.72 p.w 581.87 p.w 602.88 p.w 612.56 p.w OFFICER TEMP NRP — LABORATORY 1.0 358.01 p.w 456.37 p.w 471.89 p.w 489.63 p.w ATTENDANT NRP — TEMPORARY EO 2.0 27,464.00 40,470.00 41,826.00 43,178.00 PERSONAL ASSISTANT 4.0 38,945.00 47,755.00 MIN/MIN. STATE POULTRY OFFICER 4.0 27,507.00 45,704.00 PRINCIPAL 21.0 80,051.00 92,672.00 95,550.00 98,424.00 PRINCIPAL HIGHER 10.0 85,957.00 99,236.00 102,335.00 105,429.00 PRINCIPAL LEGAL 1.0 84,132.00 97,417.00 100,446.00 103,472.00 EXECUTIVE PPC PROFESSIONAL 1.0 68,553.00 79,319.00 82,126.00 84,935.00 ACCOUNTANT GR 1 - QUALITY MANAGER 2.0 52,439.00 70,481.00 QUALITY MANAGER 1.0 55,160.00 74,060.00 PPC RESEARCH OFFICER 8.0 57,560.00 84,578.00 87,188.00 89,791.00 RESEARCH OFFICER — 11.7 60,555.00 88,896.00 91,650.00 94,392.00 PPC RURAL GENERAL 6.0 593.21 p.w. 655.92p.w OPERATIVE BAND 1 RURAL GENERAL 20.5 565.65 p.w 625.37p.w OPERATIVE BAND 2 RURAL GENERAL 19.8 524.24 p.w 580.09 p.w. OPERATIVE BAND 3 SECRETARY GENERAL 1.0 200,000.00 AGRICULTURE SEED ANALYST 5.2 521.84p.w 760.36 p.w 775.25 p.w SEED ANALYST — PPC 5.8 549.18 p.w 799.59 p.w 815.30 p.w SENIOR AUDITOR 1.0 61,966.00 72,268.00 74,514.00 76,768.00 SENIOR DAIRY 2.0 41,927.00 55,757.00 57,686.00 59,604.00 PRODUCE OFFICER SENIOR INSPECTOR 12.0 78,939.00 92,672.00 95,550.00 98,424.00 SENIOR LABORATORY 39.9 47,842.00 64,315.00 ANALYST SENIOR RESEARCH 7.8 84,578.00 92,672.00 95,550.00 98,424.00 OFFICER SENIOR RESEARCH 2.0 88,896.00 97,416.00 100,447.00 103,472.00 OFFICER — PPC SENIOR SEED ANALYST 1.0 40,986.00 53,296.00 SENIOR SEROLOGICAL 1.0 43,828.00 48,470.00 ASSISTANT SENIOR SUPERINTEND 8.0 93,197.00 104,158.00 107,409.00 110,665.00

218 Questions— 29 June 2011. Written Answers

GRADE DESCRIPTION FTE MIN. (€) MAX. (€) LSI1(€) LSI2(€) VET INSP SENIOR SURVEYOR 1.0 36,021.00 41,518.00 42,907.00 44,293.00 SEROLOGICAL 20.3 521.84 p.w 760.36 p.w 775.25 p.w ASSISTANT SEROLOGICAL 10.8 549.18 p.w 799.59 p.w 815.30 p.w ASSISTANT — PPC SERVICES ATTENDANT 5.0 398.74 p.w 489.28 p.w. 505.57 p.w. 524.65 p.w SERVICES OFFICER 34.5 398.74 p.w 495.55 p.w 512.32 p.w 531.61 p.w SERVICES OFFICER — 3.0 416.49 p.w 521.52 p.w 539.36 p.w 559.23 p.w PPC SPECIAL ADVISOR 1 1.0 130,000 SPECIAL ADVISOR 2 1.0 80,051.00 92,672.00 95,550.00 98,424.00 STAFF OFF SENIOR 1.0 33,070.00 41,473.00 42,530.00 43,906.00 PROGRAMMER STAFF OFFICER 67.2 33,070.00 41,473.00 42,530.00 43,906.00 STAFF OFFICER — PPC 9.0 34,771.00 43,616.00 44,725.00 46,171.00 SUPERINTEN SEN 3.0 93,197.00 104,158.00 107,409.00 110,665.00 RESEARCH OFF SUPERINTEN SEN 1.0 97,968.00 109,507.00 112,935.00 116,386.00 RESEARCH OFF - SUPERINTENDING VET 43.0 84,578.00 92,672.00 95,550.00 98,424.00 INSP SUPERINTENDING VET 1.0 88,896.00 97,416.00 100,447.00 103,472.00 INSP — PPC SUPERVISING 7.8 34,638.00 44,051.00 SEROLOGICAL ASST SUPERVISORY AGRIC 217.5 34,038.00 46,935.00 48,641.00 50,352.00 OFF SUPERVISORY AGRIC 21.0 35,795.00 49,362.00 51,162.00 52,966.00 OFF AG&EE - TECHNICAL 295.0 23,123.00 39,371.00 40,681.00 41,992.00 AGRICULTURAL OFF TECHNICAL 172.8 24,341.00 41,401.00 42,788.00 44,169.00 AGRICULTURAL OFF — P TECHNICAL GRADES 5.0 45,347.00 54,556.00 LEVEL 4 VETERINARY 69.2 57,560.00 84,578.00 87,188.00 89,799.00 INSPECTOR VETERINARY 131.1 60,555.00 88,896.00 91,650.00 94,392.00 INSPECTOR — PPC VISUALLY IMPAIRED 3.0 22,015.00 33,735.00 34,954.00 35,515.00 TELEPHONIST

Grand Total 3,604.6

Common Fisheries Policy 194. Deputy John Paul Phelan asked the Minister for Agriculture; Fisheries and Food the position regarding the importance of reforms to the Common Fisheries Policy in economic revitalization of coastal communities; and if he will make a statement on the matter. [17757/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): The Common Fisher- ies Policy (CFP) is the fisheries policy of the European Union which was first put in place in 219 Questions— 29 June 2011. Written Answers

[Deputy Simon Coveney.] 1983 and has been subject to reviews every 10 years, the most recent was in 2002 and the next reform is scheduled for adoption in the latter half of 2012. The reformed CFP is a critical policy issue for Ireland as it will shape the strategic blueprint for the European fishing industry for the next decade. The CFP impacts on the social, economic and environmental pillars of the wider seafood industry and the proposals will hold both opportunities and risks for Ireland. My overarching goal for the new CFP is for a sustainable, profitable and self-reliant industry that protects and enhances the social and economic fabric of rural coastal communities dependent on the seafood sector, while balancing these objectives with the need to deliver a sustainable and eco-centred fisheries landscape for future generations. The key features of interest to Ireland will include:— • Retention of the Hague Preferences; • The retention of a management system based on national quotas supported by increased flexibility and a rejection of the mandatory privatisation of fish quotas or the introduction of international trading of fish quotas; • New focus on addressing discarding of fish at sea with a complete ban being introduced for stocks in a depleted state. In the current economic climate, we need a policy that both simplifies and reduces the administrative burden while at the same time strengthens and supports the industry’s capacity to maximise employment in coastal community’s dependent on fishing. In particular, I will be pursuing initiatives that will deliver and sustain jobs in coastal communities rather than those that promote the concentration of wealth and delivery of excessive profits for a few big international businesses. The Hague Preferences are a major priority for me as they deliver additional shares of quotas for key whitefish stocks around our coast. These additional quota shares are essential for the economic viability of our whitefish fleet and I will fight any interference that results in Ireland losing these benefits. Currently, we have approximately 5,000 jobs in our fleet, with another 2,900 employed in our processing plants with around 1,200 employed in ancillary support industries. These jobs are dependent on Irish quotas being landed into Irish ports. Any change to this would seriously jeopardise the ongoing viability of these jobs with disastrous consequences. Therefore, my focus will remain in opposing measures that could threaten this important sector for the Irish economy while proposing and supporting measures that will create more employment and generate more opportunities for the processing sector. Clearly, the health and long-term sustainability of the fish stocks around our shores are fundamental to a thriving fishing and processing sector. In that context I have been very active in the debate to eliminate the damaging and wasteful practice of discarding. I have been promoting practical and pragmatic measures which can demonstrably deliver on the shared objective of elimination of discards, while importantly having the maximum possible level of “buy in” from the industry. It is my firm belief that a “tool box” of flexible measures that can be implemented, where appropriate, on a fishery by fishery basis, is the best possible option. To deliver on Ireland’s overall objectives, I am seeking additional funding for measures: to develop and secure a sustainable European fishing and aquaculture industry; to support industry as it adapts its fleet to make it more competitive; to promote measures to protect and enhance the environment; and to help fisheries communities most affected by the resulting

220 Questions— 29 June 2011. Written Answers changes to diversify their economic base and to implement new measures on discards, technical measures, environmental compliance and restructuring. I am also seeking new and additional funding for research and fisheries control.

Grant Payments 195. Deputy Michael Moynihan asked the Minister for Agriculture; Fisheries and Food when will the final 25% payment for REP scheme 4 be paid to farmers who may have had a small penalty imposed; and if he will make a statement on the matter. [17773/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): Of the total of 30,254 farmers in REPS 4, 28,882 farmers have received payment in respect of the 2010 scheme year. The majority of outstanding payments have issues which need to be examined or resolved and these are being dealt with on an ongoing basis by my officials. A small number of farmers are awaiting their balancing payment of 25% — having already received 75% — because of breaches incurred in the scheme. The balancing payment cannot be paid until the appropriate penalties have been applied. The Department is processing these cases to a conclusion with a view to completing the work and issuing the REPS payments at the earliest possible date.

Milk Quota 196. Deputy Michael Moynihan asked the Minister for Agriculture; Fisheries and Food the amount of milk quota available for re-distribution under the milk quota appeals tribunal hardship scheme in 2011; and if he will make a statement on the matter. [17774/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): The Milk Quota Appeals Tribunal considers all valid applications for additional milk quota submitted on the grounds of hardship. Applicants recommended for approval by the Tribunal are allocated milk quota from the National Reserve, and the amounts involved can vary depending on individual circumstances. There is no overall fixed pool of quota assigned for allocation.

Grant Payments 197. Deputy Michael Moynihan asked the Minister for Agriculture; Fisheries and Food the date when farmers who applied under the dairy equipment scheme will receive approval to proceed with their investment; if he will confirm if all eligible applicants will qualify for a grant with no selection criteria applied; and if he will make a statement on the matter. [17775/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): The Dairy Equip- ment Scheme was suspended for new applications on 8 June 2011 as part of my decision to temporarily close the Targeted Agricultural Modernisation Schemes (TAMS) until the position in relation to the availability of funds for next year is clarified. As I indicated at the time, I could not defend a situation in which my Department continued to accept applications under schemes when there was a question-mark over the financing of those grants when they became due for payment. I also announced at that time that applications received prior to the date of suspension of the TAMS would be processed and approved up to the level of the current tranches of funding. As the value, in grant terms, of the applications received under the Dairy Equipment Scheme prior to its suspension is within the financial ceiling of the current tranche, all eligible applications received up to that date under the Scheme will be processed to approval stage. Pro-

221 Questions— 29 June 2011. Written Answers

[Deputy Simon Coveney.] cessing of these applications is continuing within my Department and the issuing of approvals under the Scheme should commence in the near future.

198. Deputy Michael Moynihan asked the Minister for Agriculture; Fisheries and Food if he will set out any changes to procedures or penalties for the single farm payment area and cross compliance checks in 2011; and if he will make a statement on the matter. [17776/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): My Department, in the context of delivering the Direct Payment Schemes, 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 Scheme applicants are required to be inspected under the eligibility rule. These checks are carried out to verify that the actual area claimed in the 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, using the technique of remote sensing. Under EU regulations governing the Disadvantaged Areas Scheme and the Single Payments Scheme all ground eligibility inspections must be completed before any payment can issue to any applicant under either scheme, including those not selected for a ground eligibility inspection. For 2011 the rate of on-farm inspection required for cross-compliance remains 1% of those farmers to whom the Statutory Management Requirements or GAEC apply, however, the numbers to be inspected the Bovine Animal Identification and Registration requirements has been reduced from 5% of producers to 3%. The requirements in relation to sheep farmers as prescribed under the relevant Regulations remains at 3% for 2011. There are no changes with regards to penalties. In 2010, in an effort to minimise duplication of farm inspections, my Department agreed to carry out some 1,600 farm inspections under the GAP regulations on behalf of the Department of Environment, Heritage and Local Government. This arrangement was retained for 2011 and the majority of these inspections have already been completed.

199. Deputy Michael Moynihan asked the Minister for Agriculture; Fisheries and Food the number of penalties imposed on farmers by county under the single farm payment scheme, disadvantaged area scheme, the suckler cow welfare scheme, the REP scheme and the agri environment option scheme in 2011 and the % penalty applied on these farmers; and if he will make a statement on the matter. [17777/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): As processing of the 2011 applications under both the Single Payment Scheme and the Disadvantaged Areas Scheme is in the early stages, the closing date for receipt of applications having been 16 May, with a facility for receipt of late applications up to and including 10 June, the position regarding penalties under these 2011 Schemes has not yet been established. Therefore, the 2010 Schemes have been used as the basis of this reply. In addition, given the variety of the regulatory penalties and the range of individual circumstances of applicants, it is not feasible to tabulate the range of penalties applied. Single Payment Scheme

222 Questions— 29 June 2011. Written Answers

Annually, some 124,000 farmers benefit under the Single Payment Scheme. The following table shows that a total of 3,852 individuals warranted some level of penalty under the 2010 Scheme. A variety of regulatory penalties apply, ranging from late penalties, where an application form is received after the Scheme closing date, to various parcel-related penalties (dual claims, over-claims), an penalties following field inspections, where issues are identified relating to Cross Compliance, etc.

County

Carlow 39 Cavan 151 Clare 142 Cork 438 Donegal 260 Dublin 25 Galway 375 Kerry 231 Kildare 69 Kilkenny 102 Laois 69 Leitrim 83 Limerick 194 Longford 70 Louth 43 Mayo 274 Meath 124 Monaghan 102 Offaly 74 Roscommon 135 Sligo 105 Tipperary 269 Waterford 121 Westmeath 80 Wexford 192 Wicklow 85

Total 3,852

Disadvantaged Areas Scheme Annually, in excess of 100,000 farmers benefit under this Scheme. While there are no Scheme-specific penalties under DAS, the regulatory penalties applicable under SPS also apply to DAS. Suckler Cow Welfare Scheme Penalties have been applied under the Suckler Welfare Scheme as set out on the table below. These penalties were applied to animals born during 2010, the majority of the payments having been made in 2011 but with some payments having issued in December 2010. The penalties are calculated on the basis of the number of animals that have been rejected for payment, for non-compliance with the Terms and Conditions of the Suckler Welfare Scheme, in direct relation to the number of animals registered in the Scheme during 2010. 223 Questions— 29 June 2011. Written Answers

[Deputy Simon Coveney.]

County

Carlow 78 Cavan 215 Clare 384 Cork 291 Donegal 208 Dublin 2 Galway 485 Kerry 165 Kildare 66 Kilkenny 146 Laois 136 Leitrim 141 Limerick 139 Longford 129 Louth 52 Mayo 407 Meath 115 Monaghan 157 Offaly 130 Roscommon 299 Sligo 175 Tipperary 174 Waterford 89 Westmeath 156 Wexford 113 Wicklow 70

Total 4,522

REPS/AEOS The data for REPS/AEOS is not available at this time; it will be made available to the Deputy as soon as possible.

200. Deputy Michael Moynihan asked the Minister for Agriculture; Fisheries and Food if he will give a commitment that all eligible applicants under the various schemes will be paid on time in 2011 and in accordance with the Farmers Charter; and if he will make a statement on the matter. [17778/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): Single Payment Scheme The Single Farm Payment forms a significant part of the annual income of the farming community in Ireland. It is clear that the timing of this payment is extremely important to farmers, particularly those farmers with low farm incomes. It is also important in the current difficult financial circumstances where farmers, like other sectors in the economy, are finding it very difficult to access credit. Therefore, I decided that I would seek the approval of the EU 224 Questions— 29 June 2011. Written Answers

Commission to make an advance payment of the SFP from16 October 2011, the first day of the new EU financial year. In the event that such approval is forthcoming, I am confident that the necessary inspections will be completed in sufficient time to allow the advance payments begin issuing as and from 16 October. It is a requirement of the EU Regulations that all eligibility checks are initiated prior to the commencement of payments under the Single Farm Payment, Disadvantaged Area Scheme and other area-based Schemes. I am, however, satisfied that all of the eligibility inspections will be initiated in order that the payments can commence as already outlined and that the maximum number of payments can be made before the end of the calendar year. Disadvantaged Areas Scheme The necessary progress in processing applications is being made which will ensure delivery of payments under the 2011 Disadvantaged Areas Scheme to the farmers concerned, as and from the latter half of September 2011. Furthermore, I have decided that the full amount due will issue at that stage, unlike last year, when an advance payment was made, at a rate of 75 per cent. While there is no regulatory timeframe laid down as regards the timing of payments under the Disadvantaged Areas Scheme, my Department has committed to making payments as early as possible. It is recognised that second half of September is the earliest date payments can realistically commence following the processing of applications and the initiation of all eligibility inspections, which is a requirement of the EU Regulation and I am satisfied that the necessary inspections will be completed in sufficient time to allow Disadvantaged Area payments to commence, as usual, in the latter half of September. The payments under the Suckler Cow Welfare Scheme are dependent on the participants in the Scheme completing the registration of the events required under the Terms and Conditions of the Scheme. Payments to farmers are made on an ongoing basis as soon as the events registered by the participants in the Scheme are verified and found to satisfy all of the requirements of the Scheme. All REPS 4 payments will be made in accordance with the Farmers Charter. To date, 85 per cent of REPS 3 valid applications are being scheduled for payment within 8 weeks, and 100 per cent of those approved are paid within 1 month. In relation to the — — Farm Improvement Scheme; — Dairy Hygiene Scheme; — Young Farmers’ Installation Scheme; — Pig Welfare Scheme; and — Alternative Enterprises Scheme; I can confirm that my Department will endeavour to ensure that all payments under the above Schemes will be processed within the periods referred to in the Farmers’ Charter. All payments under the Farm Waste Management Scheme have now effectively been made. In the case of the Targeted Agricultural Modernisation Schemes (TAMS), the current Farmers’ Charter does not set out any commitments, but again my Department will endeavour to ensure that processing of applications/payments takes place as speedily as possible. Over 90 per cent of all valid applications for approval and payment under the Afforestation Scheme are within the targets set out in the Farmers Charter.

225 Questions— 29 June 2011. Written Answers

[Deputy Simon Coveney.]

All compensation payments under the TSE Eradication Programmes are processed and paid within the agreed time-frame. ERAD compensation schemes are processed in compliance with the provisions set out in the Farmers’ Charter. I am satisfied that the payment commitments are and will be adhered to by my Department in 2011.

Credit Availability 201. Deputy Michael Moynihan asked the Minister for Agriculture; Fisheries and Food the initiatives he will to take to improve the credit situation for farmers and to prevent banks imposing penal surcharges when farmers run into temporary financial difficulty; and if he will make a statement on the matter. [17779/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): I have had meetings with the banking sector in recent months and my officials are in regular contact with them to discuss current challenges for credit availability in the agriculture and food sector. Farmers who are not satisfied with the service provided by their banks can ask for an internal review by the relevant bank and if they are still not satisfied can apply to the credit review office to have their case reviewed. Some of the banks have been involved recently in organising information sessions and conferences to explain the credit facilities available in the sector. They also provide information online, via the Irish Banking Federation, as to the type of information that they require when making a decision on a loan request in the agriculture sector.

Departmental Functions 202. Deputy Michael Moynihan asked the Minister for Agriculture; Fisheries and Food the measures he will take to reduce the cost of farm inputs to levels comparable with Northern Ireland and in particular veterinary medicines; and if he will make a statement on the matter. [17780/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): It is not within the power of the Minister for Agriculture, Fisheries and Food to control farm input prices as they compare to any other jurisdictions, however my officials do monitor all movements in input and output prices produced by the Central Statistics Office. The latest Annual CSO figures available, for 2010, show that overall input prices dropped by 1.6% during the year (see table below). This, combined with a 11.9% increase in output prices, meant there was a 13.8% change in favour of farmers in the Terms of Trade during last year. Included in these figures was a marginal increase of just 0.2% in the price of veterinary expenses.

Input Price Index (Base 2000 = 100)

Index/Year 2008 2009 2010

Total Index 155.9 142.2 139.9 All Fertilisers 220.6 185.0 162.2 Motor Fuels 173.6 143.5 168.6 Electricity 159.9 167.4 156.9 Veterinary Expenses 128.9 130.9 131.1 Source CSO Data (base to 2000=100)

My Department does not have any statutory function in relation to the pricing of veterinary medicines. However, it does have statutory responsibility for the regulation of veterinary medi- 226 Questions— 29 June 2011. Written Answers cines from the point of view of public health and animal health and welfare. In exercising these functions, my Department is conscious of the need to minimise costs for farmers and pet animal owners and has, within the limits afforded by EU legislation, adopted a number of measures over the years with a view to stimulating competition in the supply of medicines. Measures adopted by my Department aimed at empowering farmers and other animal owners to get the best value when purchasing medicine supplies include: • A requirement for all outlets to display price lists and, in the case of vets, to show on invoices the cost of the medicine separate from the cost of the professional service; • A requirement on vets to issue written prescriptions, enabling farmers to shop around and purchase from the best value outlet; • An extension of the range of outlets from which many prescription only medicines can be purchased to include Licensed Merchants, in addition to pharmacies and veterinary practices; • An extension of the maximum validity of a prescription to 12 months, thereby enabling farmers stagger their purchases to meet their immediate and seasonal needs. In addition to the foregoing, the policy of my Department is a to retain a viable ‘off-prescription’ category for medicines which, on scientific evaluation, do not need to be prescribed by a veterinary practitioner. I might add that, during the last review of the EU medicines regime, Ireland strongly opposed Commission proposals to reserve all veterinary medicines to the “prescription-only” category. We were largely successful in this regard, with the result that farmers can continue to purchase major categories of medicines, such as wormers and vaccines, from a wide range of authorised outlets, without incurring the cost of a veterinary call-out fee. I believe these measures provide clear evidence of my Department’s commitment to playing its part in minimising costs. I would encourage farmers to take maximum advantage of these measures and I would ask manufacturers and distributors of veterinary medicines to play their parts in driving down costs by offering best value consistent with a reasonable commercial return.

Milk Quota 203. Deputy Michael Moynihan asked the Minister for Agriculture; Fisheries and Food if he intends to take any measures post milk quota abolition that will ensure that all dairy farmers milk is collected and processed irrespective of geographical location and remoteness; and if he will make a statement on the matter. [17781/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): Following the abolition of milk quotas in 2015, the supply management arrangements that currently exist will no longer be relevant, and it is not anticipated that any alternative form of supply management will replace milk quotas. Therefore the collection and processing of milk will, subject to requirements in relation to hygiene standards, be a matter between milk processors and their supplier customers.

Departmental Funding 204. Deputy Michael Moynihan asked the Minister for Agriculture; Fisheries and Food the level of funding allocated by him to environmental and other non government organisation’s and the purpose of this funding; and if he will make a statement on the matter. [17782/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): Since 1995, my Department has provided funding of over €12m to animal welfare groups, many of whom are voluntary. My Department also contributes around €20,000 annually to Gorta’s World Food Day.

227 Questions— 29 June 2011. Written Answers

Departmental Agencies 205. Deputy Michael Moynihan asked the Minister for Agriculture; Fisheries and Food the measures he will take to ensure that there will be adequate places at agriculture colleges for young persons pursuing a career in agriculture; and if he will make a statement on the matter. [17783/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): Under the Agri- culture, (Research, Training and Advice) Act, 1988, Teagasc has statutory responsibility for the provision of education, advisory and research services to the agriculture sector. Teagasc develops its programmes, services and activities in conjunction with its clients and partners overseen by an Authority that is representative of the main stakeholder groups in the agri- food sector. It is a matter for Teagasc and its Board to prioritise activities in the delivery of these services and to allocate its resources in accordance with these priorities. Ministerial responsibility is confined to matters of policy in accordance with the Act and the Minister does not interfere in the day-today operations of Teagasc. Delivery of the Teagasc education programme is an operational matter for Teagasc and its Board. I understand that over 200 staff are currently employed in the Teagasc owned colleges and the private agricultural colleges. The question of additional resources in Teagasc must have regard to Government policy on public service numbers and the need to achieve savings in the public service pay bill through planned reductions in staff numbers. Therefore, when vacancies arise, public service organisations must reallocate or reorganise work or staff accordingly. Any exceptions to this principle can only be considered in very limited circumstances in respect of mission critical posts and in full compliance with annual ceilings on staff numbers. In that context, I have had discussions with Teagasc in relation to the impact of the moratorium on operations including the delivery of education courses in the agricultural colleges.

EU Directives 206. Deputy Paschal Donohoe asked the Minister for Agriculture; Fisheries and Food when the commencement order will be signed for the implementation of the European Directive for micro chipping of horses; and if he will make a statement on the matter. [17789/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): The EU regulation providing inter alia for microchipping is directly applicable and has been in force since 1st July 2009. A Statutory Instrument providing for powers of authorised officers and other matters will be signed in the near future.

Grant Payments 207. Deputy Seán Conlan asked the Minister for Agriculture; Fisheries and Food the reason a person (details supplied) has not received grant moneys approved under the farm improvement scheme for a farm shed prior to the transferal of the farm and herd number in 2008; and if he will make a statement on the matter. [17795/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): The person concerned has taken over a farm which was the subject of an application under the Farm Improve- ment Scheme. Payment of the grant will take place when it has been determined that all the terms and conditions of the Scheme have been complied with. The checks concerned should be completed in the near future.

228 Questions— 29 June 2011. Written Answers

208. Deputy John O’Mahony asked the Minister for Agriculture; Fisheries and Food when a person (details supplied) in County Mayo will receive their payment under the agri environment options scheme; and if he will make a statement on the matter. [17809/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): The person named was approved for participation in the Agri-Environment Options Scheme with effect from 1 September 2010. Under the EU Regulations governing the Scheme and other area-based payment schemes, a comprehensive administrative check, including cross-checks with the Land Parcel Identification System, must be completed before any payment can issue. I expect that the checking process will be complete and that payments to participants in the scheme in respect of the first year will commence in August. Payments in respect of year two will commence in October.

Milk Quota 209. Deputy John McGuinness asked the Minister for Agriculture; Fisheries and Food if an application to the scheme for the allocation of milk quota to new entrants in respect of a person (details supplied) in County Kilkenny will be reviewed in view of the further information relative to their qualifications which has been submitted; and if he will expedite a response. [17830/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): The 2011 Scheme for the Allocation of Milk Quota to New Entrants was announced on 31 January 2011, with a closing date of 8 April 2011. The application from the person named was in fact received in the Department on 11 April 2011 and as is the case with all applications received after the closing date, it was not submitted to the assessment group for consideration.

Seafood Exports 210. Deputy Bernard J. Durkan asked the Minister for Agriculture; Fisheries and Food the extent to which new markets for Irish fish and fish products have been established over the past five years; the degree to which further new markets are likely to be established in the future; and if he will make a statement on the matter. [17916/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): Ireland exported 220,000 tonnes of seafood to 70 countries in 2010, valued at €368 million. EU markets account for 80% of our seafood exports. Bulk seafood exports have increased to Nigeria, Russia and Egypt. Seafood exports are also increasing to high growth Asian markets, notably China and South Korea. Potential exists for value adding exports to these countries, particularly with newer pelagic species such as blue whiting and boarfish. BIM is actively working with seafood companies to develop product formats to fit these markets. The Russian market is targeted for specific development of pelagic value added products. Bord Bia is responsible for development of seafood export markets and focuses its activities on generating additional, higher value business in core seafood export markets such as France and Spain, while exploring emerging and alternative markets for alternative species and product forms. Bord Bia has carried out trade studies in Greece, Germany, the Benelux markets, Russia, Croatia, Hungary, Romania and Slovenia to identify potential new buyer leads for the Irish seafood sector. Country research is currently underway in Austria and Switzerland.

229 Questions— 29 June 2011. Written Answers

[Deputy Simon Coveney.]

Category research has been carried out for crab, mussels and prawns in core European markets. In order to build awareness of the new extensive Bord Bia network, bimonthly retail store audits are carried out in key export markets and distributed to seafood exporters. A range of promotional activities are carried out by Bord Bia’s international network including point of sale promotions in major core markets across a range of species such as Irish crab, oysters, mussels and organic salmon, according to preferences and opportunities in respective markets. Media trips with leading trade and consumer press media from core European market are regularly carried out to raise aware of Irish seafood export capabilities within key markets. The domestic market remains an important outlet for Irish seafood. New initiatives are being taken to stimulate consumption with the introduction of ready to eat and new microwaveable fish formats. Branding initiatives such as “Responsible Irish Fish” are building consumer awareness of the high quality of Irish product. The BIM Seafood Circle Programme highlights the best seafood retail and restaurants through ongoing quality improvement and mentoring programmes.

Food Labelling 211. Deputy Bernard J. Durkan asked the Minister for Agriculture; Fisheries and Food the extent if any to which multinational retail outlets find it convenient to source their food products in this jurisdiction or outside; if he has received communications from the farming organisations in this regard; his proposal, if any, to deal with any issues arising; and if he will make a statement on the matter. [17918/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): The purchasing arrangements of retailers are a commercial matter under the competition rules operating in the Single Market. My colleague the Minister for Health and Children has overall responsibility for food labelling legislation. Under the EU labelling Directive 2000/13/EC the origin of foodstuffs circulating in the EU is required to be declared only if its absence might mislead the consumer to a material degree. As products traded within the Community are not generally required to indicate origin on their packaging, figures as requested by the Deputy are not available.

Common Agricultural Policy 212. Deputy Bernard J. Durkan asked the Minister for Agriculture; Fisheries and Food the extent to which he has had discussions with his EU colleagues with a view to ensuring the future viability of the food sector in this country and throughout the EU particularly in the context of any on-going or future World Trade Organisation discussions; and if he will make a statement on the matter. [17919/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): I and my officials have had extensive contacts with EU colleagues regarding the future viability of the EU and Irish agri-food sectors. These contacts have taken place against the background of the negotiations on reform of the CAP, the ongoing negotiations on the WTO Doha Development Agenda and the discussions on the proposed Free Trade Agreement with the MERCOSUR group of South American countries. There has been serious engagement both at official and Ministerial level with the EU Com- mission, European Parliament and other Member States to press Ireland’s position on the future policy direction of the CAP in advance of formal legislative proposals later in 2011.

230 Questions— 29 June 2011. Written Answers

I have held formal meetings with Commissioners Ciolos and Geoghegan Quinn and with my French, Spanish and Danish counterparts. I will be meeting my UK counterpart later this week. I have also had the opportunity to engage with all my EU Ministerial colleagues at three formal, one informal and one emergency meeting of the EU Council of Agriculture Ministers. Intensive lobbying has also taken place in regard to the negotiations for a trade agreement with the MERCOSUR group of South American countries. Council meetings and bilateral discussions have afforded me the chance to present Ireland’s formal position and have also presented an opportunity for me to engage informally with other EU colleagues. Ireland’s objectives both on CAP reform and MERCOSUR have been pursued through a range of other channels. My Department took an active part in high-level conferences organised by the Austrian Ministry of Agriculture and attended by some 20 Member States and, more recently, the Polish Ministry of Agriculture and attended by all 27 Member States. A series of bilateral meetings with the Commission services, the cabinets of Commissioner Ciolos, Barroso and Geoghegan Quinn and with MEPs, rapporteurs and officials from the European Parliament have also been held. The WTO negotiations are stalled at present. Nevertheless, I continue to make my views known on the need for balance in any WTO agreement and to ensure that EU and Irish agriculture do not pay an unacceptable price for a successful deal.

Animal Slaughter 213. Deputy Bernard J. Durkan asked the Minister for Agriculture; Fisheries and Food the extent, if any, to which he intends or expects to increase the slaughtering capacity at various meat processing plants throughout the country with particular reference to those which have indicated a preference in this regard over the past five years; and if he will make a statement on the matter. [17920/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): Research by Enterprise Ireland shows current slaughter capacity in Ireland is under used by up to 50%, depending on the level of supply. Decisions to increase slaughter capacity at individual meat establishments are taken by the management on a commercial basis. When making changes to systems and procedures, approved meat establishments are advised to signal their intentions to my Department and discuss their plans with the Official Veterinarian assigned to that plant. This is to ensure compliance with the requirements of the European Communities (Food and Feed Hygiene) Regu- lations, S.I. No. 432 of 2009.

Food Safety Standards 214. Deputy Bernard J. Durkan asked the Minister for Agriculture; Fisheries and Food the extent and level of any discussions he has had with his EU colleagues in the context of EU food security and the discouragement of international speculation resulting in market manipulation, distortion and control of food industry; and if he will make a statement on the matter. [17921/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): In the context of discussions on the future direction of the Common Agricultural Policy, I have consistently emphasised the importance of security of food supplies and the need to maintain and increase the food production potential of the European Union. There is good support among my EU Ministerial colleagues for these arguments and I am pleased, in that respect, that preserving

231 Questions— 29 June 2011. Written Answers

[Deputy Simon Coveney.] food production potential in the EU is one of the central themes of the Commission’s communication of November last on the CAP towards 2020. There is also growing recognition within the EU of imbalances along the food supply chain and the need to provide greater transparency and to eliminate market manipulation. I am a member of the EU High Level Group on Agri-competitiveness that was established to address these issues. Discussions on food security have also taken place in recent months prior to the meeting of G20 agriculture ministers in Paris in mid-June 2011. This meeting produced an action plan to provide more market information and to improve regulation with a view to eliminating market abuses and reducing volatility in commodity markets. France holds the Presidency of the G20 and provided information to the Council of EU Agriculture Ministers earlier this week concerning the outcome of the G20 discussions.

Beef Industry 215. Deputy Bernard J. Durkan asked the Minister for Agriculture; Fisheries and Food the steps, if any, he has taken or proposes to take to ensure the future growth of the beef sector with particular reference to the need to increase the national herd; and if he will make a statement on the matter. [17922/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): Beef production is the predominant activity on Irish farms with more than 100,000 farm families involved in sup- plying the raw material for a labour intensive industry that employs almost 8,000 people and exported product worth more than €1.5 billion in 2010. This strong export orientation means that it will be a critically important component of our plans for economic recovery. The Food Harvest 2020 report provides a road map for the long-term development of the Irish agri-food and fishery sectors, including the beef industry, and the Programme for Govern- ment endorses the overall 2020 strategy. In relation to the beef sector specifically, an Activation Group chaired by Mr. Michael Dowling was established earlier this year to progress implementation of the relevant recommendations in consultation with various stakeholders. The group recently presented its report, which advocates a co-ordinated approach to the development of the beef sector and puts forward a series of recommendations over a wide range of areas that should lead to a significant increase in the value of beef output. These recommendations include the establishment of a breeding road map for suckler cows and for beef bulls bred to dairy cows, more focussed research and wider technology transfer programmes, implementation of eradication schemes for endemic non-regulated animal diseases, processing efficiencies, more focused and coordinated marketing centred on the Brand Ireland concept, and specific pricing arrangements for winter beef production. The report suggests that there is market demand to support growth in the suckler and dairy herds. Maximising beef output potential from the national herd is contingent on a number of factors, not least on the price of beef on EU and international markets. In light of current and future market developments, it is essential that all of the stakeholders focus on improving efficiency, maintaining high standards of quality and food safety and maximising the market potential of Ireland’s unique natural advantages. Having previously signalled my commitment to implementing the recommendations of Food Harvest 2020 , I will engage constructively with all stakeholders, taking into account the recommendations of the Beef Activation Group, to ensure that the beef industry can grow and develop to its full potential over the next decade.

232 Questions— 29 June 2011. Written Answers

Pigmeat Sector 216. Deputy Bernard J. Durkan asked the Minister for Agriculture; Fisheries and Food the extent, if any, to which the number of pigs produced in this jurisdiction has fluctuated over the past five years; the extent to which current numbers are sufficient or satisfactory in the context of meeting requirements; if it is intended, expected or required to increase the numbers; and if he will make a statement on the matter. [17923/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): The table below sets out the numbers of pigs slaughtered in Export-Approved plants in each of the last five years.

Year Number of Pigs Slaughtered

2006 2,618,501 2007 2,569,535 2008 2,527,596 2009 2,365,568 2010 2,601,701

Total pig population has fallen by approximately 10% over the same period, but grew slightly in 2010. Pigmeat production in 2010 amounted to 215,000 tonnes, while exports totalled 147,000 tonnes. Both Ireland and the EU are self-sufficient in pigmeat production. The ‘Food Harvest 2020 Report’, which was published in July 2010, sets out the vision for the future of the food industry including the pig sector. Ambitious targets have been set in relation to sow productivity, the size of the national herd, together with a 50% growth in the value of output by 2020. I am chairing a High Level Implementation Group to ensure that the recommendations in the report are implemented.

Sheepmeat Sector 217. Deputy Bernard J. Durkan asked the Minister for Agriculture; Fisheries and Food the extent to which sheep numbers are likely to increase or decrease over the next five years based on current or previous trends; the extent, if any to which he intends or expects to address any issues in this regard; and if he will make a statement on the matter. [17924/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): According to the latest National Sheep and Goat Census, which was completed in December 2010, the number of sheep declared by herdowners, at 3,116,232 head, represented an increase of 1.3% on the 2009 figure. This is the first year on year increase recorded since the first census was carried out in 2005 and it confirms the indications in the 2009 census that the decline in sheep numbers has bottomed out. 2010 saw a welcome boost in lamb prices which averaged 17% ahead of the previous year. This trend is continuing in 2011, with prices for the year to date running at 11% ahead of 2010, on average. I am confident that Irish sheep farmers will respond to the improved prices on offer by taking steps to increase production and ewe numbers in the future and there is some evidence that this has already begun. The Food Harvest 2020 report set a target of an increase in output value of 20% for the sheep sector by 2010. I am confident that this can be achieved given favourable market conditions. Any policy initiatives impacting on the sheep sector will be assessed for how they can 233 Questions— 29 June 2011. Written Answers

[Deputy Simon Coveney.] contribute to achieving this target. The Grassland Sheep Scheme is proving to be a valuable support mechanism in terms of improving income and confidence in the sector.

Meat Exports 218. Deputy Bernard J. Durkan asked the Minister for Agriculture; Fisheries and Food the extent to which Irish beef, lamb and or pork and bacon exports have increased or decreased over the past five years to date in 2011; the potential for increased exports in the future under each heading; and if he will make a statement on the matter. [17925/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): The following table details both the volume and value of beef exports since 2006.

Irish Beef Exports 2006-2010

Year Volume (tonnes cwe) Value €

2006 520,000 1.5bn 2007 523,000 1.5bn 2008 483,000 1.5bn 2009 460,000 1.4bn 2010 505,000 1.5bn

Ireland exports some 90% of its beef production and around 99% of exports go to other EU Member States. The United Kingdom remains our largest market for beef exports. Shipments to the UK in 2010 were valued at €685m and accounted for over half of total beef exports by volume for the year. The data for 2010 shows a resumption of more normal levels of output following the downturn in activity caused by the economic fragility of the previous two years. The key challenges facing the sector are to maintain and expand Irish beef’s position as a premium product in EU markets and to improve viability across the supply chain. New smart approaches, in genetics for example, are necessary to upgrade output quality thus leading to greater output value. The EU is only 96% self-sufficient in beef production and consumer demand for beef is expected to further exceed EU production in the coming years. Expanding global demand for food clearly presents enormous opportunities for the agri-food sector as a whole. The challenge for the beef industry in the current economic climate is to build on our share of premium markets in a time of global supply constraints and strong demand. The following table details both the volume and value of sheepmeat exports since 2006.

Irish Sheepmeat Exports 2006-2010

Year Volume (tonnes) Value €

2006 58,000 186m 2007 56,200 177m 2008 47,900 161m 2009 46,400 160m 2010 39,300 157m

Exports of sheepmeat have declined over the last five years due to declining domestic production coupled with relatively stable domestic consumption. France is the major export market 234 Questions— 29 June 2011. Written Answers for Irish sheepmeat, accounting for approximately 54% of exports in 2006 and 49% of exports in 2010. Exports to Non-EU countries accounted for just 0.45% of the total in 2006 and 1.45% of the total in 2010. Exports to non-EU countries have been limited in the past due to the factors including the fact that the European Union is a net importer of sheepmeat, the prevalence of lower prices in third countries and the absence of export refunds. However, there are signs of greater interest in third countries at present due to higher prices for meat in general. My Department is giving assistance to exporters in gaining access to new third country markets. Food Harvest 2020 sets a target of a 20% increase in output value by 2020. While sheep numbers have fallen significantly in recent years, there are signs that the decline has bottomed out and numbers have stabilised. The good prices available for sheep over the past 18 months should encourage farmers to increase production in the future and this increased production together with buoyant prices should allow the Food Harvest 2020 target to be met. The following table details both the volume and value of pigmeat exports since 2006.

Irish Pigmeat Exports 2006-2010

Year Volume (tonnes) Value €

2006 139,000 378m 2007 142,000 370m 2008 138,000 340m 2009 127,000 290m 2010 147,000 317m

Pigmeat remains the most consumed meat worldwide with demand expected to continue to increase in the medium term. This will continue to present opportunities for Irish producers. All markets which were closed as a result of the dioxin incident have been reopened and demand has recovered strongly particularly in international markets. Food Harvest 2020 sets ambitious targets for the pig sector, including a 50% increase in the value of output by 2020. Increased sow productivity will be the key driver of this growth together with an increase in the size of the sow herd. Work towards the achievement of these targets is ongoing.

Food Safety Standards 219. Deputy Bernard J. Durkan asked the Minister for Agriculture; Fisheries and Food if he has satisfied himself regarding food health and hygiene regulations as applied throughout the industry in respect of both native and imported produce; and if he will make a statement on the matter. [17926/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): The Food Safety Authority of Ireland (FSAI) under the aegis of the Minister for Health has overall responsibility for the enforcement of food safety in Ireland. It carries out this remit through service contracts with my Department and other agencies including the HSE, Local Authority Veterin- ary Service and Sea Fisheries Protection Authority. The work to ensure compliance with the application of health and hygiene regulations within the remit of my Department is carried out by staff from the Veterinary Public Health and Agriculture Inspectorates who specialise in particular sectors of primary food production. They are supported in this work by Department laboratories through sampling and analyses of the 235 Questions— 29 June 2011. Written Answers

[Deputy Simon Coveney.] products concerned. All compliance work is subject to regular audit by both the FSAI and the Food and Veterinary Office of the EU. Regarding imported produce, consignments of food products of animal origin directly entering on to the territory of the EU must be the subject of a prior notification of import. My Department, in co-operation with Customs service, monitors and operates animal and public health controls at EU approved Border Inspection Posts (BIP) on all direct imports into Ireland coming from non-EU (or third) countries. These are required to undergo veterinary examination at the BIP of entry to include docu- mentary checks (100%), identity checks (100%) and physical checks ranging from 20% to 50% of consignments according to whether the consignment consists of meat or meat products. Consignments failing to comply with veterinary control checks may be detained for further examination and where non-compliance is established are returned to the exporting country or destroyed at the importers cost. As competent authority for monitoring and control of pesticide residues my Department also undertakes import control under new EU harmonised legislation for food safety risks because of pesticide residues in designated foods of non-animal origin coming from specified third countries. Importers of food commodities from such countries are required to pre-notify their import into the EU and submit relevant consignments for checks and sampling, according to EU requirements, at designated points of entry (DPE). Consignments undergoing sampling are held and not released unless a satisfactory result has been obtained. My Department also enforces marketing standards for fresh fruit and vegetables requiring that fruit and vegetables may only be marketed if they are sound, fair and of a marketable quality and if the country of origin is indicated

Proposed Legislation 220. Deputy Finian McGrath asked the Minister for Agriculture; Fisheries and Food the proposals regarding proposals to ban fur farming. [17961/11]

Grant Payments 221. Deputy Finian McGrath asked the Minister for Agriculture; Fisheries and Food the proposals regarding proposals to ban fur farming.

Departmental Bodies 222. Deputy Michael McGrath asked the Minister for Agriculture; Fisheries and Food if he

236 Questions— 29 June 2011. Written Answers will list the number of positions under his control but outside of the civil service which will be affected by new salary caps; the specific cuts involved and any impact identified on the ability to recruit or to retain specific positions in the next 12 months. [17973/11]

Minister for Agriculture, Fisheries and Food (Deputy Simon Coveney): My understanding is one CEO of a commercial State Body under the aegis of my Department has a salary in excess of the new pay ceiling of €250,000. As the Deputy will be aware, voluntary waivers of salary will be sought from incumbent CEOs of State Bodies whose salaries are in excess of this ceiling.

Constitutional Amendments 223. Deputy John Paul Phelan asked the Minister for Health when she expects the referendum on children’s rights to occur; and if he will make a statement on the matter. [17751/11]

Minister for Children and Youth Affairs (Deputy Frances Fitzgerald): The Programme for Government 2011 states that the referendum on Children’s Rights is a priority, and that wording will be along the lines of that proposed by the All Party Oireachtas Committee. On taking office, the Minister for Children and Youth Affairs commenced discussions with the Attorney General, with a view to preparing a draft wording which will more closely reflect the work of the Committee, than that which the previous Government approved in draft form. When these discussions have been concluded, I intend to bring the matter to Government for approval to draft a bill and hold a Referendum. The Taoiseach has already stated that the Referendum will not take place on the same day as the presidential election, in view of the concern that to do so might unnecessarily and unhelpfully politicise children’s rights, and that a separate referendum is more appropriate for this important and sensitive issue.

Inter-Country Adoptions 224. Deputy Jim Daly asked the Minister for Health the discussion she has had regarding adoptions and a bi-lateral agreement with Ethopia; and if he will make a statement on the matter. [17820/11]

Minister for Children and Youth Affairs (Deputy Frances Fitzgerald): The Adoption Act, 2010 gives force of law to the Hague Convention on the Protection of Children and Co-operation in Respect of Inter-Country Adoption. The new legislation, which incorporates the provisions of the Hague Convention, is designed to provide a framework to ensure that appropriate procedures have been followed and that all adoptions are effected in the best interests of the child. The papers for the ratification of the Hague Convention on Protection of Children and Co- operation in Respect of Intercountry Adoption were deposited with the Ministry of Foreign Affairs of the Netherlands on 28th July 2010. In accordance with Article 46.1 of the Convention, the Convention entered into force for Ireland on 1 November 2010. Ireland does not have a bilateral agreement with Ethiopia in respect of adoption. Consider- ation of this matter is ongoing. Officials of my Department have been in touch with the Minister for Foreign Affairs and the Irish Embassy in Ethiopia as part of an assessment of adoption practice and the child welfare and protection systems in place in Ethiopia. The Adoption Act, 2010, contains a provision that will enable prospective adoptive parents to proceed with an adoption from a non-Hague or non-bilateral country, if prior to the establishment date, they have been issued with a Declaration of Eligibility and Suitability to adopt. The provision requires that the Adoption Authority would be satisfied that the particular adoption meets all the standards of the Hague Convention. In practice this will mean that persons

237 Questions— 29 June 2011. Written Answers

[Deputy Frances Fitzgerald.] with a Declaration of Eligibility and Suitability from the Adoption Board issued prior to 1 November 2010 can continue the adoption, provided it is a Hague standard adoption.

225. Deputy Jim Daly asked the Minister for Health if she is in receipt of correspondence from the Irish Ethiopian Adoption Organisation regarding a request for a meeting; and if he will make a statement on the matter. [17822/11]

Minister for Children and Youth Affairs (Deputy Frances Fitzgerald): Following my appointment as Minister for Children and Youth Affairs, I received a large number of meeting requests from various individuals and organisations. Due to the volume of correspondence, it has taken some time to work through the requests. I have received the correspondence from the Irish Ethiopian Adoption Organisation and will address their request as soon as possible.

Departmental Bodies 226. Deputy Michael McGrath asked the Minister for Health if she will list the number of positions under her control but outside of the civil service which will be affected by new salary caps; the specific cuts involved and any impact identified on the ability to recruit or to retain specific positions in the next 12 months. [17976/11]

Minister for Children and Youth Affairs (Deputy Frances Fitzgerald): None of the posts in agencies under the aegis of my Department are affected by the new salary caps.

Services for People with Disabilities 227. Deputy John McGuinness asked the Minister for Health if an application for mobility allowance will be approved in respect of a person (details supplied) in County Kilkenny. [17843/11]

Deputy Kathleen Lynch: As the Deputy’s question relates to service matters I have arranged for the question to be referred to the Health Service Executive for direct reply to the Deputy.

Food Labelling 228. Deputy Bernard J. Durkan asked the Minister for Health the number of instances in respect of which mislabelling of food or food products have been identified in the past three years and to date in 2011 with particular reference to imported products being sold as or of Irish origin; and if he will make a statement on the matter. [17917/11]

229. Deputy Bernard J. Durkan asked the Minister for Health the number and nature of inspections carried out in respect of labelling of product in the food sector; the extent of any violations identified or discovered; and if he will make a statement on the matter. [17927/11]

Minister for Health (Deputy James Reilly): I propose to take Questions Nos. 228 and 229 together. I have asked the Food Safety Authority of Ireland to contact the Deputy directly with a answer in relation to these two questions.

Medical Cards 230. Deputy Martin Ferris asked the Minister for Health when a decision will issue on a medical card application in respect of a person (details supplied) in County Kerry. [17684/11]

238 Questions— 29 June 2011. Written Answers

Deputy Róisín Shortall: As this is a service matter it has been referred to the Health Service Executive for direct reply to the Deputy.

Nursing Homes Support Scheme 231. Deputy Gerry Adams asked the Minister for Health if nursing home fees are set by the National Treatment Purchase Fund; if so, the considerations taken into account to determine the fees; and if so whether they take into account the standard of care offered in the nursing homes [17700/11]

Deputy Kathleen Lynch: In order to become an ‘Approved Nursing Home’ for the purposes of the Nursing Homes Support Scheme, a private or voluntary nursing home must: • be registered under the Health Act 2007, • have agreed a price for the purposes of the scheme with the National Treatment Pur- chase Fund (NTPF), and • hold a valid tax clearance certificate. The NTPF has statutory responsibility for the negotiation of the price for the cost of care in private and voluntary nursing homes. The NTPF is independent in the performance of this function. The NTPF may examine the records and accounts of nursing homes and has particular responsibility to ensure value for money for both the individual and the State. The Minister for Health recently instructed the NTPF to renegotiate with nursing homes with a view to achieving price decreases because the increases agreed over the last number of months are not sustainable. Under the Health Act 2007 statutory responsibility is given to the Chief Inspector of Social Services, part of the Health Information and Quality Authority (HIQA), for the independent inspection and registration of certain categories of designated centres. This includes residential care settings for older people. Since the 1st July 2009 all nursing homes (public, private and voluntary) are registered under the Health Act 2007 (Registration of Designated Centres for Older People) Regulations 2009, as amended, by the Chief Inspector. All nursing homes are inspected under the Health Act 2007 (Care and Welfare of Residents in Designated Centres for Older People) Regulations 2009, as amended, and must meet the National Quality Standards for Residential Care Settings for Older People in Ireland. All nursing homes are subject to the same care standards in relation to quality and safety. The Chief Inspector has the power to refuse to register, attach conditions to a registration or cancel the registration of a designated centre in the event of non-compliance with the regulations or the standards.

Hospital Services 232. Deputy Éamon Ó Cuív asked the Minister for Health the steps he proposes to take to ensure that transport services are provided to dialysis and cancer care patients from 1 July 2011 in view of the circular letter issued by the National Ambulance Service on 17 June 2011; and if he will make a statement on the matter. [17701/11]

Minister for Health (Deputy James Reilly): As you are aware, the fiscal situation in this country is critical and requires efficiencies to be made in every area of public expenditure. The HSE, with a reduction of €638m to its allocation, is committed to delivering service levels for 2011 which are broadly in line with 2010 levels. To maintain these core services, it is necessary for the HSE to evaluate and identify where efficiencies can be made, while ensuring that those patients with a clear clinical need are prioritised and continue to have access to health care.

239 Questions— 29 June 2011. Written Answers

[Deputy James Reilly.]

I have instructed the HSE generally not to withdraw any services from acute hospitals unless and until I receive a full briefing on the details of what is proposed, the alternative arrangements to be put in place, and the overall implications for patients. I will certainly not stand over a situation where there is a proposal to withdraw services from people with a clear clinical need for those services Non-emergency transport comprises inter-hospital transfers and patient transport between home and health facility. It includes both HSE and private transport providers. The National Ambulance Service (NAS) provides pre-hospital emergency care and emergency and some non-emergency patient transport. Supported by my Department and by HIQA, the NAS is working to improve the management and integration of its services, including standard national criteria for non-emergency transport. These criteria will allow a patient transport service that is transparent and accessible for service users. There are a number of supports for cancer patients who have to travel for treatment, through the Community Welfare Office services and the Travel2Care scheme. Travel2Care is being implemented on a phased basis with the transfer of cancer services to the 8 designated cancer centres and the approved satellite centre in Letterkenny, where this transfer of services would otherwise cause financial hardship. The scheme provides some financial help towards public transport costs, such as trains or buses, private transport costs or petrol and parking. It is funded by the National Cancer Control Programme and administered by the Irish Cancer Society.

233. Deputy Derek Nolan asked the Minister for Health when a person (details supplied) in County Galway will be given an appointment for an operation [17704/11]

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

234. Deputy Caoimhghín Ó Caoláin asked the Minister for Health when a person (details supplied) in County Louth will receive an operation [17714/11]

Minister for Health (Deputy James Reilly): As this is a service matter, it has been referred to the Health Service Executive for direct reply.

Health Services 235. Deputy Brian Stanley asked the Minister for Health if his attention has been drawn to the fact that the respite services at a centre (details supplied) are due to end, that the kitchen in the centre has been recently refurbished at considerable cost, that it is already located on the hospital campus at Tullamore, that the Health Service Executive propose to relocate this elsewhere and his view on same; and if he will make a statement on the matter. [17731/11]

Deputy Kathleen Lynch: I refer the Deputy to my reply to his previous question in relation to this matter on 15th June last and in particular the reassurance that the respite service will continue to be provided in Tullamore and the quantum and quality of services will remain the same. I have asked the Health Service Executive to update you directly in relation to developments at Clochan House, Tullamore, Co Offaly.

Departmental Staff 236. Deputy Seán Kenny asked the Minister for Health the number of persons employed by him by grade and the pay scale by grade. [17736/11]

240 Questions— 29 June 2011. Written Answers

Minister for Health (Deputy James Reilly): There were 453.76 Whole Time Equivalents (WTE) employed in my Department at the end of May 2011 (the latest available figures). This includes individuals working in the Office of the Disability Appeals Officer and the former Office of the Minister for Children and Youth Affairs. The following table details the breakdown of staff by grade at the end of May 2011.

Grade Level Whole Time Pay Scale (Where scales vary depending on the rate of Equivalent PRSI contribution that applies, the scales shown are those paid to employees to whom full PRSI rates apply. Scales for those paying modified PRSI are reduced so that net pay is unchanged)The pay of a small number of individuals (for example staff on secondment from agencies external to the Department) may vary slightly from the bands shown.

Secretary General 1.00 €215,590 (this was voluntarily reduced to €214,187 and more recently further reduced voluntarily to €200,000) Deputy Secretary 2.00 €168,000 Assistant Secretary 5.00 €127,796 — €146,191 Deputy Chief Medical Officer 4.00 €97,668 -€119,445 Principal Officer 25.83 €84,132 — €103,472 Principal Officer Higher Scale 15.80 €90,355 — €110,844 Assistant Principal 64.54 €65,185 — €80,878 Assistant Principal Higher Scale 35.40 €71,359 — €88,595 Higher Executive Officer 65.03 €46,081 — €58,294 Higher Executive Officer Higher 25.50 €48,831 — €60,224 Scale Administrative Officer 10.50 €33,247 — €58,294 Administrative Officer Higher Scale 3.80 €42,838 — €60,224 Executive Officer 60.30 €30,516 — €47,975 Executive Officer Higher Scale 18.90 €30,516 — €49,837 Staff Officer 11.43 €34,771 — €46,171 Clerical Officer 70.93 €23,177 — €37,341 Clerical Officer Higher Scale 11.80 €24,255 — €38,135 Head Porter /Services Officer 2.00 €563.97 — €704.36 (Weekly) Services Officer (Weekly) 8.00 €416.49 — €559.23 Personal Assistant 3.00 €43,715 — €56,060 Personal Secretary 3.00 €23,820 — €47,755 Special Advisor 2.00 €80,051 — €98,424 Civilian Driver 4.00 €32,965

Total Staff 453.76

All general service grades employed in my Department are paid in accordance with Depart- ment of Finance Circular 28/2009 Revision of Pay of Civil Servants. All Ministerial appointees are paid in accordance with the Department of Finance guidelines “Instructions to Personnel Officers — Ministerial Appointments for the 31st Dáil” which were issued on the 1st April 2011.

Hospital Services 237. Deputy Seán Kenny asked the Minister for Health if he will increase the capacity of the Intensive Care Unit of Beaumont Hospital, Dublin 9 [17740/11] 241 Questions— 29 June 2011. Written Answers

Minister for Health (Deputy James Reilly): As this is a service matter, it has been referred to the Health Service Executive for direct reply.

Nursing Homes Inspections 238. Deputy Gerry Adams asked the Minister for Health the number of nursing homes in the State that are subject to inspection; and the frequency with which they are inspected. [17813/11]

Deputy Kathleen Lynch: Under the Health Act 2007 statutory responsibility is given to the Chief Inspector of Social Services, part of the Health Information and Quality Authority (HIQA), for the independent inspection and registration of certain categories of designated centres. This includes residential care settings for older people (nursing homes). As of 26 June 2011 there are 590 designated centres (nursing homes)- this includes all active designated centres and new builds. Inspection frequency in terms of an actual site inspection varies on a centre by centre basis. All centres receive a registration inspection every three years. The frequency of any other site inspections are determined by the case holding inspector and take into account a range of factors to determine whether a site inspection is required. In 2010 HIQA carried out 815 inspections. This year 368 inspections were completed between 1 January and 24 June.

Medical Cards 239. Deputy Dessie Ellis asked the Minister for Health the measures he is putting in place to ensure that medical card holders are not charged by their general practitioners for the completion of a medical check-up required by the Irish Amateur Boxing Association. [17814/11]

Deputy Róisín Shortall: The General Medical Services (GMS) GP contract stipulates that General Practitioners “shall provide for eligible persons, on behalf of the HSE, all proper and necessary treatment of a kind usually undertaken by a GP and not requiring special skill or experience of a degree which GPs cannot reasonably be expected to possess”. The contract between the HSE and general practitioners under the GMS Scheme stipulates that fees are not paid to GPs by the HSE in respect of certain medical certificates which may be required, for example, “under the Social Welfare Acts or for the purposes of insurance or assurance policies or for the issue of driving licences”. Consultation fees charged by general practitioners to private patients and to GMS patients outside the terms of the GMS contract are a matter of private contract between the clinicians and the patients. While I have no role in relation to such fees, I would expect clinicians to have regard to the overall economic situation in setting their fees. I should add that General Practitioners who hold GMS contracts with the HSE must not seek or accept money from medical card or GP visit card holders in respect of routine treatment.

240. Deputy John McGuinness asked the Minister for Health if he will expedite a response to an application for a medical card in respect of a person (details supplied) in County Carlow. [17831/11]

Deputy Róisín Shortall: As this is a service matter it has been referred to the Health Service Executive for direct reply to the Deputy.

241. Deputy John McGuinness asked the Minister for Health if a medical card application will be expedited and approved in respect of a person (details supplied) in County Carlow; and if there is a time frame for such decisions [17840/11]

242 Questions— 29 June 2011. Written Answers

Deputy Róisín Shortall: As this is a service matter it has been referred to the Health Service Executive for direct reply to the Deputy.

Health Services 242. Deputy Brendan Smith asked the Minister for Health further to the adjournment debate of 15 June 2011, if he will ensure that further urgent consideration is given to the need to provide adequate medical cover through the North East Doctor On Call Service; if he will ensure that the service is structured to continue general practioners service after 10.00 p.m. nightly at the NEDOC Centre in Cavan Town; if his attention has been drawn to the widespread concern among the public and health professionals in relation to the proposal to cease such a service; and if he will make a statement on the matter. [17849/11]

Deputy Róisín Shortall: As this is a service matter it has been referred to the Health Service Executive for direct reply to the Deputy.

Departmental Reports 243. Deputy Gerry Adams asked the Minister for Health if the Independent Research Report on the practice of symphysiotomy will be published once it is completed. [17851/11]

Minister for Health (Deputy James Reilly): Following receipt of this report, which is due to be received in September 2011, my Department will further engage with patient representative groups. I will then quickly decide on the next steps required to address this situation. It is my intention that the report be published, subject of course to the usual legal and related considerations, which are as of now not expected to create any significant barriers to publication.

Health Service Staff 244. Deputy Kevin Humphreys asked the Minister for Health when implementing future staff reductions in the Health Service Executive, his plans to reduce the number of nurses who are over the age of 55 years within the system specifically those in administration; if he has considered a targeted voluntary redundancy package for these areas;; and if he will make a statement on the matter. [17852/11]

Minister for Health (Deputy James Reilly): The Government is committed to bringing about a significant reduction in the number of staff across the public service over the period to 2015, to realise efficiencies in the delivery of public services and contribute to the overall correction of the national finances, while protecting front-line services as far as possible. The Minister for Public Expenditure and Reform is currently considering the range of measures that will be necessary to bring about the necessary numbers reductions. Policy measures across various areas of Government activity should contribute to this overall objective, and a comprehensive review of expenditure to examine all areas where savings and numbers reductions might be identified is currently taking place. Part of the overall policy on public service numbers may involve voluntary staff exit mechanisms, and the options in this regard will be considered by the Government in this overall context. However, there are currently no specific plans in place to reduce the number of nurses.

Nursing Homes Support Scheme 245. Deputy Michael Healy-Rae asked the Minister for Health his views on the future of the fair deal (details supplied); and if he will make a statement on the matter. [14522/11]

243 Questions— 29 June 2011. Written Answers

Deputy Kathleen Lynch: The processing of approvals for financial support under the Nursing Homes Support Scheme re-commenced the week beginning 13th June. Approvals are being issued to those applicants processed to final stage in the chronological order in which they were received in the Central Office in Tullamore. Approvals are currently being issued to the first 400 of these applicants. Funding is being assigned on a daily basis. There are approximately 700 further applications processed to final stage and now awaiting approval and these will be dealt with as a priority. The key focus of the Minister for Health is to ensure that those who require nursing home care will be able to access it and, to this end, the Department estimates that almost 24,000 people will be in long-term nursing home care by year end. This would mean a net increase of around 1,700 people between now and the end of the year. In order to fund this increase, and to offset other pressures on the subhead such as increases in average length of stay, cost increases etc., the Minister identified a range of savings and income sources, one of which is a potential saving of up to €30 million in non-service related spending. This funding will come primarily from capital spending which is running significantly behind budget so far this year. The Programme for Government commits us to review the system of financing nursing home care with a view to developing a secure and equitable system of financing for community and long term care. This commitment will be carried through. In addition, the Nursing Homes Support Scheme is due for formal review commencing in 2012. The scheme will be three years in operation at that stage. The reason for allowing this period to elapse is to ensure that established and validated trends and statistics will be available in order to inform this work. It is still intended to proceed with this review and it will look at the ongoing sustainability of the scheme, the relative costs of public versus private provision and the balance of funding between residential and community care.

Medical Cards 246. Deputy Finian McGrath asked the Minister for Health the position regarding a medical card application in respect of a person (details supplied) in Dublin 9; and if he will make a statement on the matter. [17930/11]

Deputy Róisín Shortall: As this is a service matter it has been referred to the Health Service Executive for direct reply to the Deputy.

Health Services 247. Deputy Billy Timmins asked the Minister for Health the position regarding speech and language therapy in respect of a person (details supplied) in County Wicklow; and if he will make a statement on the matter. [17935/11]

Deputy Kathleen Lynch: As the Deputy’s question relates to service matters, I have arranged for this question to be referred to the Health Service Executive for direct reply.

Nursing Homes Support Scheme 248. Deputy Richard Boyd Barrett asked the Minister for Health if he will provide a break down of like for like in terms of levels of dependency cost of nursing home care for an elderly person in a public nursing home and in a private nursing home. [17950/11]

249. Deputy Richard Boyd Barrett asked the Minister for Health in view of the discrepancy between the recently publicly quoted cost of public and private nursing home care, the amount

244 Questions— 29 June 2011. Written Answers of this discrepancy that can be explained by the higher level of dependency in public nursing homes. [17951/11]

Deputy Kathleen Lynch: I propose to take Questions Nos. 248 and 249 together. The Nursing Homes Support Scheme encompasses a Care Needs Assessment which identifies whether the individual has sufficiently high care needs to warrant nursing home care or whether their care needs can be met in the community. The purpose of the assessment is to ensure that long-term residential care is the most appropriate option for the particular individual. The Care Needs Assessment is carried out by appropriate healthcare professionals appointed by the HSE. An assessment may be completed in a hospital or community setting and includes consideration of the following: • the individual’s ability to carry out the activities of daily living, e.g. bathing, shopping, dressing, • the medical, health and personal social services being provided to the person or available to the individual at the time of the assessment and generally, • the family and community support available to the individual, and • the individual’s wishes and preferences. The Nursing Homes Support Scheme Act 2009 defines “long-term residential care services” as maintenance, health and personal care services. The services which fall within the scope of long-term residential care are: • nursing and personal care appropriate to the level of care needs of the person, • basic aids and appliances necessary to assist a person with the activities of daily living, • bed and board, and • laundry service. Under the scheme, the cost for each public nursing home is determined using the definition of “long-term residential care services” underpinned by an agreed set of cost components which have been laid before the Houses of the Oireachtas. The cost of care is reviewed on an annual basis. When the review was carried out in 2010, the cost of care reduced in approximately 80% of public nursing homes. The 2011 review is underway at present. Given the very significant differences between the average cost of care under the scheme in public and private nursing homes, and in the absence of evidence to the support such a difference, the Minister for Health considers that it will be necessary to identify ways of achieving further significant reductions in public nursing home costs either as part or outside of the review. The National Treatment Purchase Fund (NTPF) has statutory responsibility for the negotiation of prices in private and voluntary nursing homes. The NTPF is independent in the performance of this function. The NTPF may examine the records and accounts of nursing homes and has particular responsibility to ensure value for money for both the individual and the State. The cost of care for each nursing home that is participating in the Nursing Homes Support Scheme is published on the HSE’s website at: http://www.hse.ie/eng/services/Find—a—Service/Older—People—Services/nhss/. At present, the weighted average cost of care is approximately €1,275 in a public nursing home and €900 in a private nursing home. Following the examination of the Scheme, the Minister for Health is considering a range of increased governance and monitoring arrangements and it is hoped to convey these to the HSE within the next few days. These will include issues already signalled by the Minister such as a

245 Questions— 29 June 2011. Written Answers

[Deputy Kathleen Lynch.] clinical audit of the Common Summary Assessment Report (CSAR) process to establish the levels of dependency for those accessing care and to attempt to explain the unforeseen increase in average length of stay.

Medical Cards 250. Deputy Finian McGrath asked the Minister for Health the position regarding a medical card in respect of a person (details supplied) in Dublin 5 [17964/11]

Deputy Róisín Shortall: As this is a service matter it has been referred to the Health Service Executive for direct reply to the Deputy.

Public Service Remuneration 251. Deputy Michael McGrath asked the Minister for Health if he has examined the current or potential impact of public service pay or numbers policy on the ability of organisations under his control to allocate and oversee the efficient use of State resources [17971/11]

Minister for Health (Deputy James Reilly): The Government’s policies on public service pay and numbers, whereby pay has been reduced or capped and staff numbers are also being brought down, have been introduced of necessity, in response to the present serious economic and fiscal conditions. Such policies mean that all organisations across the entire public service, not just in the health sector, need to manage their resources in the most efficient and cost- effective manner. The Public Service Agreement (PSA) has been a key enabler in this regard and the real achievement in implementing the PSA in the health sector has been to continue to provide the same level and quality of services with much reduced budgets. The Deputy will also be aware that the Government is also carrying out a Comprehensive Review of Expenditure. Under this review, it is committed to examining all aspects of public expenditure, with a view to ensuring that, where State programmes do continue, that all resources are used in the optimum manner to deliver services to citizens.

252. Deputy Michael McGrath asked the Minister for Health if he will list the number of positions under his control but outside of the civil service which will be affected by new salary caps; the specific cuts involved and any impact identified on the ability to recruit or to retain specific positions in the next 12 months. [17983/11]

Minister for Health (Deputy James Reilly): Having regard to the ongoing severe economic conditions, the Government has introduced general policies in relation to the pay for future appointees to the Public Service and CEOs of Commercial State Companies. These policies are that a salary ceiling of €200,000 will apply to persons in higher positions across all sectors of the public service and a salary ceiling of €250,000 will apply to CEOs of Commercial State Companies. Current incumbents whose salaries are in excess of these salary ceilings have been requested to agree to a voluntary waiver of salary. Revised rates for new appointments as academic consultants are to be prepared which will reflect the pay ceiling of €200,000. These new policies do not apply to medical consultants generally. The other health sector positions outside the Civil Service and which will be affected by this cap are the CEO of the HSE and the CEO of the VHI. The CEO of the HSE has already agreed to a voluntary waiver of 15% of his salary. I am aware that the CEO of the VHI had already announced his intention to resign his position and has given the required six months’ notice, prior to the announcement of these new policies. The recruitment process for a new CEO has not yet commenced.

246 Questions— 29 June 2011. Written Answers

Suicide Incidence 253. Deputy Gerry Adams asked the Minister for Health if he will prioritise resources for those agencies that are responsible for increasing awareness regarding the growing problem of deliberate self-harm. [14501/11]

Deputy Kathleen Lynch: Dealing with the current high levels of suicide and deliberate self harm is a priority for this Government. Reach Out — the National Strategy for Action on Suicide Prevention (2005 — 2014) provides a policy framework for suicide prevention activities in Ireland. It calls for a multi-sectoral approach to the prevention of suicidal behaviour involving health, education, community, voluntary and private sector agencies. The total funding available nationally through the HSE for suicide prevention is about €9 million of which €4.2 million is available to the National Office for Suicide Prevention (NOSP) and approximately €5 million is available regionally to fund Resource Officers for Suicide Prevention, Self-Harm Liaison Nurses in Hospital Emergency partments and local suicide prevention initiatives including crisis awareness groups. The funding being provided in this area this year includes a special allocation of €1 million specifically to target initiatives to address the increasing incidence of suicide and deliberate self harm. The emphasis will be placed on the most vulnerable groups identified in ‘Reach Out’ and more recent research. The Government has also committed to ringfencing €35 million annually in future budgets to develop community mental health services and to implement Reach Out.

Irish Coast Guard 254. Deputy Gerald Nash asked the Minister for Transport; Tourism and Sport the cost of the service provided by the Irish Coast Guard at the concerts held at Slane Castle, County Meath, in each of the years from 2004 to 2011 inclusive; and if he will make a statement on the matter. [17696/11]

Minister for Transport, Tourism and Sport (Deputy Leo Varadkar): The Irish Coast Guard regularly pre-positions assets at major events such as Volvo Ocean Race, Tall Ships events, Cork Week Regatta, and any costs are captured within the overall training and incident response budget. Volunteers involved are entitled to claim an allowance for their time on service. This allowance is the same for any incident response and the current rate is €10.16 for the first hour and €3.81 for each subsequent hour. 29 Coast Guard volunteers, on foot of a request from local Gardaí, attended Slane Castle in 2011 and similar numbers in 2005, 2007 and 2009.

Road Network 255. Deputy Derek Nolan asked the Minister for Transport; Tourism and Sport if his attention has been drawn to the ongoing delay in deciding the route of a proposed road in the vicinity of Spiddal, County Galway (details supplied); if his attention has further been drawn to the fact that the delay has resulted in landowners of close to 15,000 acres of land around the proposed routes not being able to apply for planning permission to build on their land for a number of years; if a route will be decided upon or if landowners in the area will be allowed apply of planning permission in the near future; and if he will make a statement on the matter. [17711/11]

Minister for Transport, Tourism and Sport (Deputy Leo Varadkar): The improvement and maintenance of regional and local roads, in its area, is a statutory function of each road authority in accordance with the provisions of section 13 of the Roads Act, 1993. Works on such

247 Questions— 29 June 2011. Written Answers

[Deputy Leo Varadkar.] roads are a matter for the relevant local authority to be funded from its own resources sup- plemented by State road grants. The initial selection and prioritisation of projects to be funded is also a matter for the local authority. A total of €439.676 million has been allocated to local authorities under the Regional and Local Roads Investment Programme. From this allocation, Galway County Council are being provided with a total of €24.234 million. This total figure includes the additional allocation of €3.381m which was made to Galway County Council as part of the Jobs Initiative in May. Also included in that allocation is funding of €500,000 towards R336 Connemara Access Road Bearan to RósanMhíl. I understand that Galway County Council, the National Parks and Wildlife Service and RPS consulting engineers met with the EU Commission in May this year and that the Council hope to have a public consultation on route selection in the Autumn

Rail Network 256. Deputy John Paul Phelan asked the Minister for Transport; Tourism and Sport the status of the new railway in Dublin West; when he expects that it will be open; and if he will make a statement on the matter. [17759/11]

Minister for Transport, Tourism and Sport (Deputy Leo Varadkar): I presume the Deputy is referring to Luas Citywest which will be officially opening on Saturday 2 July next, with passengers services commencing at 12 noon. This 4.2 km rail line will have 5 new stops at Fettercairn, Cheeverstown, Citywest Campus, Fortunestown and Saggart serving local communities and the Citywest business area. There will also be a 300 space park and ride at Cheeverstown. It is expected that an additional 2 million Red Line passenger journeys will be made per year. On the new line there will be a 10 minute frequency at peak with the Tallaght terminus having a 6 minute frequency at peak.

Public Service Remuneration 257. Deputy Michael McGrath asked the Minister for Transport; Tourism and Sport if he will list the number of positions under his control but outside of the civil service which will be affected by new salary caps; the specific cuts involved and any impact identified on the ability to recruit or to retain specific positions in the next 12 months. [17987/11]

Minister for Transport, Tourism and Sport (Deputy Leo Varadkar): Following the recent Government decision to cap the salaries of persons serving in higher positions across all sectors of the public service at €200,000 and at €250,000 for Chief Executive Officers of commercial state companies, I will seek voluntary waivers of 15% of salary from current incumbents whose salaries are in excess of these figures or a lesser amount if the application of the full 15% reduction would bring their salary level below the thresholds. From information provided to me by the agencies I estimate that 4 people will be affected by these new caps. In the current economic difficulties, the decision of the Government to impose salary caps on the higher earners in the public service and the Chief Executives of the commercial State companies is a necessary one. I am hopeful that staff with the necessary skills and expertise can be recruited or retained at the adjusted salary levels.

248