Vol. 719 Wednesday, No. 2 20 October 2010 DÍOSPÓIREACHTAÍ PARLAIMINTE PARLIAMENTARY DEBATES DÁIL ÉIREANN TUAIRISC OIFIGIÚIL—Neamhcheartaithe (OFFICIAL REPORT—Unrevised) Wednesday, 20 October 2010. Leaders’ Questions ……………………………… 321 Ceisteanna—Questions Taoiseach ………………………………… 326 Order of Business ……………………………… 342 Value-Added Tax Consolidation Bill 2010: First Stage ………………………………… 350 Second Stage: Motion …………………………… 351 Statements re Minister for Finance’s announcement on banking of 30 September 2010: Questions … 351 Ceisteanna—Questions (resumed) Minister for Communications, Energy and Natural Resources Priority Questions …………………………… 375 Other Questions …………………………… 392 Adjournment Debate Matters …………………………… 398 Criminal Law (Defence and the Dwelling) Bill 2010: Order for Second Stage …………………………… 399 Second Stage ……………………………… 399 Private Members’ Business Loan Guarantee Scheme: Motion (resumed) …………………… 435 Adjournment Debate Teaching Qualifications …………………………… 460 Health Service Executive Charges ……………………… 463 Special Educational Needs ………………………… 465 Hospital Services ……………………………… 467 Questions: Written Answers …………………………… 469 DÁIL ÉIREANN ———— Dé Céadaoin, 20 Deireadh Fómhair 2010. Wednesday, 20 October 2010. ———— Chuaigh an Ceann Comhairle i gceannas ar 10.30 a.m. ———— Paidir. Prayer. ———— Leaders’ Questions Deputy Enda Kenny: The health system is a failure. When the HSE was set up, the people of the country were promised a world-class health system. These were the very words spoken by the Minister for Health and Children. We have world-class doctors and nurses but we do not have a world-class system to support them. We are now told by the Minister for Health and Children that the cut expected in the budget will be of the order of €600 million to €1 billion. This announcement was made without any commitment not to affect front line services. Front line services are what save lives. They provide care at the front line. The Government has always taken the easy option in distinguishing between waste and service. I ask the Taoiseach to give an assurance to the Dáil and the people of the country that, whatever cutbacks are made in the health budget for 2011, they will not have a direct impact on front line services. The Taoiseach: It is the objective on every occasion to ensure whatever allocation is made in the service plan this year, which is being exceeded in respect of when the plan was drawn up earlier this year, front line services are provided to the greatest extent possible with the money provided. The framework of the Croke Park agreement provides us with an unpre- cedented opportunity to ensure the changes that can and will be made—— Deputy Pádraic McCormack: The Government will cut from the bottom. Deputy Olivia Mitchell: Where else will they cut? An Ceann Comhairle: The Taoiseach without interruption please. The Taoiseach: The Croke Park agreement provides us with the framework to ensure we can make changes on the ground that will minimise the impact at the front line. The current Esti- mate for health is approximately half of the total receipts coming into the national Exchequer. Deputy Enda Kenny: That is of little consolation to the people of the country. I asked that the Taoiseach, irrespective of the cuts made in the health budget, can give a guarantee front line services will not be cut. The reason I ask is that front line services save lives. Two weeks ago, Fine Gael tabled a motion in the name of Deputy James Reilly. We listed many actions that could be taken by the Government to save money in the health budget. At least €200 million could be saved by using generic drugs. Why has this not been acted on? Why has the Government not followed the €92 million spent on agency staff or the 6,000 redundancies 321 Leaders’ 20 October 2010. Questions [Deputy Enda Kenny.] promised by the Minister for Health and Children and identified by the former chief executive Brendan Drumm before he left office as ways of dealing with a reduction in the health budget without having an impact on front line services? I recognise this Government has led the country into economic quicksand. Reductions must be made across all Departments. In the interests of the hundreds of thousands to be affected by this and irrespective of the size of the cutback in the health budget, can the Taoiseach give the people an assurance that the cut will not affect front line services, which save lives? The Taoiseach: My first reply reiterated that patient safety is of the highest priority. Many of the structural changes and financial constraints in the health service have led to a response from the health service employees that has ensured patient safety remains the highest priority. Deputy James Reilly: What about patient services? The Taoiseach: The service that is provided is in excess of the service plan agreed at the beginning of the year. That service planning is crucial if one is to apply resources properly and ensure every area of the health service is funded to meet the basic requirements. Patient safety is of the highest priority. We have an industrial relations framework, through the Croke Park agreement, that will see negotiated change across a range of areas to ensure the people who work in the health service provide the best possible service for the funds available for health in the coming years. That must be accelerated and done as quickly as possible. On the basis of the Estimates and the allocation of resources to various parts of the health service that will emerge in the budgetary process, the talks at local level can work. We have already seen practical examples where it has happened, where nursing staff have moved from Croom and Ennis into Limerick General Hospital in order to meet the requirements. In the absence of an industrial relations framework that might never have happened. Deputy Jan O’Sullivan: Limerick General Hospital was top of the list for use of trolleys yesterday. The Taoiseach: We would not have had the process or mechanism by which this could hap- pen. Redeployment is a key factor in maintaining services to the greatest extent possible for the funds provided. Patient safety is the highest priority for the professionals who work in the service. Deputy Dan Neville: No guarantees. Deputy Eamon Gilmore: There is considerable debate and discussion about the forthcoming budget and the possibility of a four-year budgetary plan over the coming years. Obviously such discussion must be based on sound, solid information which only the Government itself can provide. As we know, the projections which the Government gave us last year for economic growth were seriously wrong, as a result of which we are now told the projected budgetary adjustment over the next four years is significantly greater than the €7.5 billion that was orig- inally expected. We need to have a number of pieces of information if there is to be meaningful discussion on budgetary matters. I ask the Taoiseach this morning if he would provide that information. First, can he tell us what is the growth forecast for 2011 and the projected growth for the next four years? Second, what budgetary adjustments does the Government propose for the coming year, 2011, and what is the total adjustment that is projected for the next four years? What is the forecast for unemployment next year? There are currently approximately 450,000 people 322 Leaders’ 20 October 2010. Questions on the live register. The total has been more than 400,000 for the past 16 months. What is the Government’s forecast or projection for unemployment next year? The Taoiseach: First, Deputy Gilmore will be aware from the briefings that his finance spokespersons have received that data is currently being compiled for the plan. When the plan has been agreed and approved by Government in due course, it will be published and can be debated in the House. We can set out the various assumptions that are in the plan. Deputy Gilmore was talking about forecasts being wrong. Forecasts, by their very nature are set out on basic assumptions that are made at the time. The real question is whether they were justifiable at the time. What has happened is that on the 2010 budget forecasts for the sub- sequent years the Government took forecasting models from the high growth and low growth scenarios that were set out in the ESRI reports at the time. The forecasts for the years ahead were justifiable at the time. It was the received view that this was the case. We were talking about increasing growth rates of between 3% and 4% over the period. In one of the year’sa growth rate of 4.5% was predicted. The figures set out are in documentation that is publicly available. I do not have them in front of me. What has happened since then, which must be taken into account, was not part of the forecast at the time. Forecasts, by definition, have that constraint. They are forecasts. The Greek situation occurred in April and it had an impact on bond markets. We had a further review of what growth prospects in the American economy would be, which were downward. We have had downside risks emerging in terms of the growth potential in the European economy. All that has changed. Deputy Tom Hayes: Forget about the Greeks, what about the Taoiseach? Deputy Dermot Ahern: Ah Tom. Deputy Frank Feighan: What about Bertie? An Ceann Comhairle: Deputies, the Taoiseach should be allowed to speak without interrup- tion please. Deputy Tom Hayes: What about the Bailey Brothers? The Taoiseach: In broad terms, what has emerged is that growth prospects for the future from 2011 on are less now. When we have finalised the production of the data, we will convey it and deal with it.