Vol. 707 No. 2
6 Deputy Frank Feighan asked the Minister for the Environment, Heritage and Local Government if he has been in discussions with Anglo Irish Bank and the Dublin Docklands Development Authority regarding outstanding debt owed by the Dublin Docklands Development Authority; the outcome of any such meetings; and if he will make a statement on the matter. [16045/10]
I have had no discussions with the institution in question on matters concerning the Dublin Docklands Development Authority, nor would it be appropriate for me to do so.
The DDDA's annual accounts for 2008 reported a loss on operations of €27 million, reflecting the impairment of the authority's key assets including a significant reduction in the valuation of the Irish Glass Bottle site. In response, the authority's board has cut all discretionary expenditure, is subjecting every cost and overhead to rigorous control and scrutiny, and has put in place a reduced organisation structure.
The authority expects to report a significantly reduced operating deficit for 2009, year on year, and has set an objective to return to a break-even situation as soon as possible. The final position, including regarding borrowings, will be set out in the authority's 2009 accounts which I understand are at an advanced stage of completion.
Arising from the 2008 accounts, the authority submitted a report to my Department in February regarding its participation in the Becbay joint venture which acquired the former Irish Glass Bottle site. I appointed independent financial advisers to assess the report, in consultation with my Department and the Department of Finance. The advisers have submitted their report and I have forwarded it to the authority's board for consideration. I expect to revert to Government on this matter in the coming weeks.
Discussions with the authority's lenders are a matter for the authority itself. I understand that the authority has held preliminary discussions with the National Asset Management Agency in respect of the transfer of loans associated with the Becbay joint venture.
I can be helpful on this because we have discussed the matter already. I have one question. Given that the Dublin Docklands Development Authority has put up its own assets as security for loans from Anglo Irish Bank, in reality that bank will be looking for its money back from every loan it made for obvious reasons. What is the authority's exposure in the event that Anglo Irish Bank comes looking for the money in repayment of the loan? Can the Minister give some indication to the House of how that will be paid back? Ultimately, the Department of the Environment, Heritage and Local Government is responsible for ensuring that the money is paid through the Dublin Docklands Development Authority to Anglo Irish Bank.
I will try to be as detailed as I can. In October 2006, the authority sought sanction for borrowings of up to €127 million for the purposes of property acquisition, particularly in connection with the impending acquisition of the IGB site. Consent for this sanction request was sought by my Department to the Department of Finance and was subsequently received on the basis that repayments would be wholly from the authority's own resources without recourse to the Exchequer. The Department of Finance also consented to the authority taking a shareholding in a special-purpose company to facilitate the joint venture development of the site. Neither the Minister for Finance nor I had any direct role in approving or authorising the authority to purchase the IGB, nor did either Minister have any role in approving the final purchase price. As long as the authority operates within its €127 million sanction, it is mandated to make independent commercial decisions, which is an important aspect the Deputy needs to keep in mind. A €288 million loan to Becbay Limited, the consortium developing the former Irish Glass Bottle site, was provided jointly by Anglo Irish Bank and AIB. It is a non-recourse loan, largely secured against the land, with the exception of the €111.9 million that is secured by guarantees of three shareholders, Mr. Bernard McNamara, Mr. Derek Quinlan and the authority in proportion to their respective shareholdings.
As I said earlier, as a 26% shareholder in the Becbay joint venture, the authority has guaranteed liabilities of €29.1 million as well as a liability of 26% of interest accruing. The authority considered it necessary to become involved in the purchase of this site because of its key location on the Poolbeg Peninsula, and it has, as the Deputy knows, significant development potential. To be a 26% shareholder in this acquisition was the minimum amount necessary to ensure the authority retained sufficient influence and control over the development.
The figure I saw thrown out in the media of a €500 million cost to the taxpayer — I have seen this in newspapers and it has been quoted by the Deputy at press conferences — is very misleading. To suggest that in some way the Dublin Docklands Development Authority has exposed the Irish taxpayer to the full risk of this venture is not correct. The authority is a 26% shareholder and we need to keep that in mind at all stages.
With regard to the reports carried out on the Dublin Docklands Development Authority, an issue raised with me today was that money obviously changed hands in the purchase of the sites that are now valued at much less than when they were purchased. Somebody got the money for those sites. Is this one of the issues being investigated? Where did the money go that was handed over for those sites and who holds it now? This is important in terms of accountability.
It obviously depends on which site the Deputy is talking about. There have been——
I am talking about the vendors, the people who owned and sold the land.
If the Deputy is taking about the whole Becbay consortium, I have mentioned the people who are involved, be it Mr. Bernard McNamara or Mr. Derek Quinlan, and prominent names are also involved in the famous Mountbrook case. Some of these people have made a pretty penny but, likewise, some of them are now going through court proceedings, as the Deputy knows, and facing a very tight financial situation. Like many people, they gambled and it did not work out, and there has been a major loss on that site.
With regard to that Becbay site and particularly in regard to the involvement of Mr. McNamara, I have to be careful, as Minister, because that is going through the courts at present.
7 Deputy Brian O’Shea asked the Minister for the Environment, Heritage and Local Government the cases being taken by the European Union against Ireland in regard to Ireland’s failure to transpose or implement European Union directives in environmental law in tabular form; the stages of these cases; if fines are pending in regard to judgments against Ireland for breaches of environmental law; and if he will make a statement on the matter. [15960/10]
Since coming into office, I have given the highest priority to the transposition and implementation of EU environmental legislation and have secured the closure of 25 cases during the past two and a half years. In areas for which my Department has responsibility, the European Commission is currently in correspondence in respect of 25 cases relating to transposition and implementation of EU environmental legislation.
Under Article 258 of the EU Treaty, nine cases are at letter of formal notice stage, which is the initial stage of the formal proceedings. These cases generally relate to greenhouse gas emissions trading, waste, GMOs, environmental impact assessment and the water framework directive. Three cases are at reasoned opinion stage, under Article 258, and these concern issues relating to electrical and electronic waste equipment, spatial policy and strategic environmental assessment.
The European Commission has decided to refer one case in regard to the transposition and implementation of the habitats directive to the European Court of Justice and the Commission application to the court is awaited. Two cases concerning environmental impact assessment and urban waste water treatment are before the court awaiting hearing. In ten cases relating to waste, habitats, water, public participation, wild birds and environmental impact issues, my Department is working to meet the requirements of judgments of the court.
I propose to circulate with the Official Report a tabular statement listing the directives involved and setting out the various stages of proceedings in respect of these cases. This should make it easier for Deputies to see at what stage we are in each of those cases.
The Commission made a decision on 29 October 2009 to refer Ireland to the European Court of Justice for an imposition of fines in regard to the directive on the quality required of shellfish waters, while deferring such referral for three months. Following comprehensive work by my Department to address the outstanding issues involved, the Commission closed the case in March 2010.
Ireland has never been fined by the EU for an environmental infringement. I have met Environment Commissioner Potocnik since his appointment to reassure him of my commitment to resolving issues and to ensuring that Ireland is fully compliant with EU environmental law.
|
EU Instrument Number and General Reference |
Article 226/258 Letter of Formal Notice |
Article 226/258 Reasoned Opinion |
Being Referred to the European Court of Justice |
Before the European Court of Justice for a hearing or awaiting judgement |
European Court of Justice Decision to be Implemented |
Article 228/260 Letter of Formal Notice |
Reasoned Opinion 228/260 Second Letter of Formal Notice |
Fines Incurred by Ireland |
|
|
75/442/EEC the waste directive |
2 |
0 |
0 |
0 |
1 |
1 |
0 |
4 |
0 |
|
79/409/EEC on wild birds |
0 |
0 |
0 |
0 |
0 |
0 |
1 |
1 |
0 |
|
80/68/EEC on groundwater |
0 |
0 |
0 |
0 |
0 |
1 |
0 |
1 |
0 |
|
85/337/EEC on the assessment of the effects of certain public and private projects on the environment |
1 |
0 |
0 |
1 |
0 |
1 |
1 |
4 |
0 |
|
91/271/EEC on urban waste water treatment |
0 |
0 |
0 |
1 |
1 |
0 |
0 |
2 |
0 |
|
92/43/EEC on habitats |
0 |
0 |
1 |
0 |
0 |
0 |
2 |
3 |
0 |
|
96/61/EC concerning integrated pollution prevention and control |
1 |
0 |
0 |
0 |
0 |
0 |
0 |
1 |
0 |
|
98/81/EC on the contained use of genetically modified micro-organisms |
1 |
0 |
0 |
0 |
0 |
0 |
0 |
1 |
0 |
|
2000/53/EC on end of life vehicles |
1 |
0 |
0 |
0 |
0 |
0 |
0 |
1 |
0 |
|
2000/60/EC the water framework directive |
1 |
0 |
0 |
0 |
0 |
0 |
0 |
1 |
0 |
|
2002/96/EC on waste electrical and electronic equipment |
0 |
1 |
0 |
0 |
0 |
0 |
0 |
1 |
0 |
|
2001/42/EC on the assessment of the effects of certain plans and programmes on the environment |
0 |
1 |
0 |
0 |
0 |
0 |
0 |
1 |
0 |
|
2003/35/EC on public participation in certain plans and programmes relating to the environment |
0 |
0 |
0 |
0 |
0 |
1 |
0 |
1 |
0 |
|
2007/2/EC establishing an infrastructure for spatial information in the EU — INSPIRE |
0 |
1 |
0 |
0 |
0 |
0 |
0 |
1 |
0 |
|
2008/101/EC ETS and Aviation |
1 |
0 |
0 |
0 |
0 |
0 |
0 |
1 |
0 |
|
2009/29/EC so as to improve and extend the greenhouse gas emission allowance trading scheme |
1 |
0 |
0 |
0 |
0 |
0 |
0 |
1 |
0 |
|
TOTAL NUMBER AT EACH STAGE |
9 |
3 |
1 |
2 |
2 |
4 |
4 |
25 |
0 |
Unfortunately, it is difficult to ask further questions without the table in front of me. Will the Minister outline the total number of cases overall? Last year, there were 34 cases of infringements in train against us and the figure was 35 for the previous year. What is the total number of cases in regard to Ireland that have been referred under Article 260, whereby we have had a judgment against us and we have not complied with that judgment? Last year, the figure was 14, which was the highest number of cases of all member states referred under Article 260, where a financial penalty can be considered. We are also the third worst offender in regard to EU infringements for the past two years and it seems likely this could be the case for this year also.
What is the difference between having a Green Minister for the Environment, Heritage and Local Government and having a Fianna Fáil Minister in that office? We are still in the top three worst offenders in Europe for infringements of EU environmental law.
To be clear, the European Commission is currently in correspondence in respect of 25 cases in regard to transposition and implementation of EU environmental legislation where the Department of the Environment, Heritage and Local Government is concerned. This compares with 33 cases when I came into office.
To answer the Deputy's question, there is probably a major difference between having a Green Minister and having a potential Labour Party Minister. While I am not sure Deputy Tuffy is aware of it, I was genuinely shocked by the press release put out by the Labour Party leader in regard to the EU habitats directive. When I am trying to deal with this very sensitive issue, the Deputy's party leader comes out with populist and opportunistic nonsense such as:
Rural Ireland is already struggling economically and Government cutbacks are badly affecting such services . . . Preventing rural families from continuing centuries old tradition of turf-cutting flies in the face of reason.
This is populist nonsense from the Labour Party when I am trying to deal with a very sensitive issue. There is a big difference between having a Green Minister and a potential Labour Party Minister who will simply fly in the face of reason and overturn very important EU directives.
It is appropriate when it comes to environment law to realise that human beings are part of the environment. The Labour Party leader was raising a genuine issue of human interest in terms of how this affects domestic turf cutters who cut their own turf in the west.
The Deputy cannot justify that.
That does not mean one condones Ireland's performance in regard to EU infringements. Deputy Gormley is the Green Party Minister but he has still not given me the overall total. It was 34 at the end of 2009.
It is 25. I am dealing with this constantly. I inherited this going into office and we have reduced it substantially but there is no way the statement made by Deputy Tuffy's party leader can be condoned. The Labour Party cannot have it every way, it cannot say it wants to comply with EU directives then come out with an opportunistic, populist statement like that. That is vote getting, nothing more, and does not face up to environment responsibilities.
8 Deputy Brian O’Shea asked the Minister for the Environment, Heritage and Local Government if he will provide an update on the numbers of permanent and temporary staff employed by each local authority in 2008, 2009 and 2010; the number of staff shed in each local authority area since the general election of 2007; and if he will make a statement on the matter. [15959/10]
The numbers of permanent and temporary staff employed across all 34 local authorities at end of December 2008 were 31,846 and 3,166 respectively, compared to 30,564 and 1,691 at end of December 2009. The breakdown by individual local authority will be circulated with the Official Record. Figures for 2010 are not yet available. Information In regard to the number of staff shed in each local authority since the 2007 general election is not available in the Department.
With effect from 24 March 2009 until the end of 2010, no public service post, however arising, may be filled by recruitment, promotion, or payment of an allowance for the performance of duties at a higher grade. This general moratorium also applies to temporary appointments on a fixed-term basis and to the renewal of such contracts.
The Department received a delegated sanction from the Department of Finance in August 2009 for implementation of this general moratorium on the filling of public sector posts across all local authorities. This is on condition that the overall staffing levels in the sector are reduced significantly by the end of 2010 in adherence with the Government's policy on staffing and numbers in the public sector.
Local authorities are expected, where vacancies arise, to consider options for reorganisation and reallocation of work to meet requirements. Staffing sanctions are granted by the Department in exceptional circumstances including where posts are of a statutory nature or for posts associated with frontline service delivery. In this context, in dealing with overall management of organisation and personnel, local authorities are expected to give priority to assuring compliance with statutory obligations and the delivery of front line services.
|
Local Authority |
December 2008 |
December 2009 |
||
|
Permanent |
Temporary |
Permanent |
Temporary |
|
|
Cork City |
1,422 |
71 |
1,384 |
36 |
|
Dublin City |
6,795 |
137 |
6,375 |
105 |
|
Galway City |
434 |
101 |
428 |
60 |
|
Limerick City |
515 |
40 |
511 |
18 |
|
Waterford City |
387 |
77 |
356 |
54 |
|
Carlow |
318 |
40 |
310 |
21 |
|
Cavan |
462 |
18 |
429 |
17 |
|
Clare |
768 |
140 |
738 |
90 |
|
Cork |
2,414 |
229 |
2,284 |
80 |
|
Donegal |
983 |
210 |
958 |
50 |
|
Dún Laoghaire |
1,190 |
52 |
1128 |
68 |
|
Fingal |
1,521 |
68 |
1,445 |
45 |
|
Galway |
870 |
196 |
840 |
95 |
|
Kerry |
1,157 |
191 |
1,141 |
84 |
|
Kildare |
910 |
185 |
900 |
47 |
|
Kilkenny |
565 |
51 |
551 |
17 |
|
Laois |
390 |
48 |
385 |
21 |
|
Leitrim |
312 |
18 |
292 |
11 |
|
Limerick |
735 |
59 |
712 |
27 |
|
Longford |
339 |
43 |
303 |
27 |
|
Louth |
710 |
24 |
679 |
13 |
|
Mayo |
1,115 |
182 |
1,064 |
113 |
|
Meath |
642 |
158 |
628 |
75 |
|
Monaghan |
433 |
22 |
422 |
12 |
|
Offaly |
459 |
40 |
453 |
25 |
|
Roscommon |
527 |
55 |
519 |
32 |
|
Sligo |
527 |
60 |
498 |
32 |
|
South Dublin |
1,285 |
188 |
1,240 |
163 |
|
Tipperary North |
414 |
98 |
461 |
43 |
|
Tipperary South |
680 |
27 |
645 |
9 |
|
Waterford |
530 |
71 |
530 |
36 |
|
Westmeath |
481 |
56 |
461 |
27 |
|
Wexford |
791 |
72 |
757 |
48 |
|
Wicklow |
765 |
139 |
737 |
90 |
There has been a substantial reduction in local authority staff numbers in the past year. Those figures indicated an approximate decline of 4,000, with the majority of those being temporary staff.
Local authorities are letting temporary staff go because of reduced budgets, with less money coming from both central Government and from rates. Most of those temporary staff were not well paid but they are now on the dole, so the public purse is paying their social welfare when the could have been employed by local authorities to do important work.
There will also be huge pressure on the remaining permanent staff, where numbers have also fallen significantly. Looking at tables for local authorities in response to previous questions, there is a huge variation between local authorities. Cork County Council has lost almost 500 staff but this was the council area that faced challenges from both flooding and snow. Now it faces problems with bad road conditions. There will be no major road works for the foreseeable future so temporary repairs are now important.
The shedding of local authority staff is not sustainable when we consider the challenges faced by those local authorities. Eventually they will not be able to function. Would the Minister not attempt to get the Minister for Finance to change his policy on funding for local authorities?
We would like to employ more people, that goes without saying. In these financially straightened times, however, where do we find the money? Everyone must ask that question. We cannot just continue to employ and pay people, we had to make difficult decisions. This was a difficult decision for me but I hope we are doing it in a way that does not affect services to a huge degree. That is all we can do under the circumstances. We have introduced a number of creative solutions, such as the incentivised career break scheme, where staff could take a three year career break and receive an incentive payment of a third of their gross basic pay up to a maximum of €12,500 per annum. A total of 295 local authority staff were approved for this scheme. That is what we are trying to do and, overall, we are managing well under the circumstances.
If we are not paying these people a salary through the local authority, instead we are paying them money through social welfare so it is not as if savings are being made. Also, when people are working, they pay tax so this is not necessarily a saving, as implied by the Minister.
Will the Minister ensure that local authorities keep on their apprentices so they can complete their courses? Is there any hope the local authorities will take on staff to deal with the dredging of rivers or unfinished housing estates in the summer?
Given there is a moratorium in place, it is unlikely we will get extra staff, it is as a simple as that.
9 Deputy John Perry asked the Minister for the Environment, Heritage and Local Government the number of affordable housing units unsold and the locations of same; if he will provide an outline of his policy on this matter; and if he will make a statement on the matter. [16082/10]
The reply to Question No. 313 of 4 February 2010 provided numbers of unsold affordable homes by local authority area at the beginning of February this year. The total figure of 1,158 reported at that time by the authorities excludes those homes which have been approved by the Department for deployment under the social leasing and rental accommodation schemes.
The situation changes frequently as unsold affordable homes are deployed for other purposes, including temporary use under the social leasing or RAS schemes, as homes are sold and as new units come into the possession of local authorities. Revised figures, which will take account of recent decisions by some local authorities to offer unsold affordable homes on the open market, will be published when available.
In April 2009 comprehensive guidance issued to local authorities outlining a range of measures that could be considered in dealing with the build up of unsold affordable homes. In addition to sale to eligible affordable purchasers at appropriate prices, these measures included the options of the temporary transfer of affordable homes for use under the rental accommodation scheme or under the new social leasing arrangements, or in certain limited cases, for transfer to the permanent social housing stock. Local authorities may also sell homes on the open market, at open market prices, where appropriate. Recently, a pilot "rent to buy" scheme has been approved in principle for a small number of homes in the Dublin City Council area, and this will be reviewed before making a decision on whether this may be an appropriate option in other urban areas.
The Department will continue to monitor and support local authorities' work to bring unsold affordable homes into use, and will adapt and develop the approaches involved, as necessary, in the evolving housing market and economic climate.
I thank the Minister for his response. However, it is an absolute scandal that 1,100 homes are idle or unsold, with no owners, when there are 100,000 people waiting anxiously on housing lists throughout this time, as the Minister knows. I welcome that the Minister's policy will change and that these homes will be available and put on the open market.
Regarding Part V social and affordable housing, certain contracts have not been executed and local authorities are having difficulties due to funding issues. Perhaps the Minister might say what he will do in that regard.
At around this time last year local authorities estimated there were 3,700 unsold affordable housing units so we have made some progress. My Department identified the problem and acted immediately, outlining a comprehensive range of measures designed to allow local authorities bring these units into early and effective use. Despite the fact that further stock has come into the system since then, usually under Part V, as mentioned by the Deputy, the prompt action taken has enabled local authorities to bring down very considerably the number of unsold affordable units to 1,100, as I stated in my reply.
One has to put this in some perspective. Thinking back, I remember some Private Members' debates on the social partners. Everybody wanted more affordable housing units. We were told that 10,000 units would be delivered under the affordable homes initiative and that 17,000 would be delivered between 2007 and 2009. The Deputy is aware of what has happened. The market collapsed and we had to act to deal with that issue. Under the circumstances, I believe we have made considerable progress.
What is the Minister doing about the more traditional type of council housing? People on waiting lists for local authority housing are not likely to be able to take up any type of affordable housing option. The model of council housing whereby people rented at a low rent from the public authority with the option to buy over time has worked very well in this country over the years. What will the Minister do about front-loading actual county council houses?
As the Deputy will know, the model has changed. Again, this comes down to the amount of money we have available. We are moving towards two models: first, social leasing and second, the rental accommodation scheme or RAS system. The Deputy's party has called for more people to be put onto the RAS and I agree it has worked well, as has the social leasing programme. We will still be on target to have approximately 9,000 units——
We are all on the razz.
Does that mean we are moving away from council housing?
Of course it means that.
Why?
We are just out of time.
I shall tell the Deputy why. The money that was available before is no longer available. There is a thing called reality and the Deputy must get used to it.
There are only a few seconds remaining.
The Minister has made some progress and that is to be appreciated and commended but it is not a good to have houses lying idle——
Hear, hear.
——because they will be vandalised. Is there a deadline for the introduction of this new policy?
One word from the Minister.
The policy is already up and running. As I said, we have made substantial progress already. Within a year we have dealt with half the houses. The demand is there and we need to make the units available, using them for social leasing, in particular. That policy is working. People are very happy to have a good house with the highest standards and the Department wants to ensure these houses are up to that standard and that people can get into them as quickly as possible.
I thank the Minister, Deputy Gormley, and the Minister of State, Deputy Cuffe. I hope he enjoyed the occasion.
It has been a pleasure.
Written Answers follow Adjournment Debate.
