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Dáil Éireann debate -
Thursday, 12 May 1983

Vol. 342 No. 6

Estimates, 1983. - Vote 27: Environment.

I move:

That a sum not exceeding £606,009,000 be granted to defray the charge which will come in course of payment during the year ending on the 31st day of December, 1983 for the salaries and expenses of the Office of the Minister for the Environment, including grants in lieu of rates on agricultural land and other grants to local authorities, grants and other expenses in connection with housing and miscellaneous schemes, subsidies and grants including certain grants-inaid.

In presenting this Estimate to the Dáil I will speak briefly about the different categories of expenditure involved before dealing with specific subheads. The gross provision for my Department is nearly £636 million, which is the fourth largest Vote in money terms.

This gives some idea of the large amount of funds involved especially as it does not include a further £454 million for non-voted capital expenditure in the current year. The Vote for the Department of the Environment can be subdivided into six broad categories: grants or recoupment of expenditure to local authorities, subsidies to local authorities for loan charges for specific services, direct departmental payments, grants or grants-in-aid to voluntary, semi-State or international bodies, departmental administration and receipts classified as appropriations-in-aid.

The grants or recoupment to local authorities account for £415 million, 65 per cent of the total amount, and cover grants in lieu of domestic and agricultural rates, road grants, public water supply grants, environmental works, local improvement schemes, malicious injuries and other smaller grants.

The subsidies to local authorities towards their loan charges amount to over £162 million or 26 per cent of the Vote and comprise subsidies for loan charges for local authority housing, including private sites and the former low rise mortgage scheme, water supply and sewerage, public library service, rehabilitation of travelling people and for fire services.

The direct departmental payments total nearly £40 million or 6 per cent and are mainly for grants to private persons for housing, water and sewerage and the mortgage subsidy scheme. The grants to various bodies cover such organisations as An Foras Forbartha, National Road Safety Association, Medical Bureau of Road Safety, Dublin Inner City Group, Fire Prevention Council, An Bord Pleanála and other smaller bodies.

The general administrative expenses of the Department are included in subheads A1 to D. The expenditure involved is £12.4 million or 2 per cent of the Vote. Every effort is being made in my Department to maximise efficiency and to deploy staff resources to the best possible advantage.

As stated above, the bulk of the funds are given in the form of grants and subsidies to local authorities to assist them to provide services such as water supply, waste collection, roads, fire services, libraries, etc. The rates relief for domestic premises and agricultural land now being provided by the Exchequer has meant major relief for individual households.

The provision in the Environment Vote is part only of what will be spent this year on the services of my Department and the local authorities operating under the aegis of my Department. Money for the services also comes from some other Votes, from the Local Loans Fund and of course from local authorities' own resources arising from rates and miscellaneous items of income.

When all these are reckoned it is estimated that the Department and the local authorities will spend some £1,400 million on current and capital expenditure in 1983. This figure compares with about £1,250 million in 1982. The local authorities will have more than £1,300 million to spend this year and they will themselves raise more than £300 million of this amount.

It is evident that spending on this scale, capital and current, is of major significance not only in terms of the variety of public services provided and their importance in the life of the community, but also of the direct and indirect impact on economic activity and generation of employment. It is, of course, essential that the local government system within which the expenditure is undertaken should be working well and efficiently. The question of improving the structure of the system in ways which might make it more effective has been under consideration on and off for several years. This, as my predecessors can vouch, is a complex subject with wide ramifications. I intend, however, to examine the issues involved and the options as regards changes which would contribute to making the system stronger, more effective and more democratic. The future financial health of the system is, of course, central to such consideration, and I will come back to that.

I will now deal with the major expenditure areas of my Department.

First, I want to talk now about the building industry. I have heard many figures bandied about recently in relation to public capital support for the industry in 1983 and all sorts of dire predictions for output and employment which grossly distort the true position. There is no doubt that the building industry has been going through a lean period and it would be strange, indeed, if it remained untouched by the recessionary conditions the country has been enduring. The result of these conditions has been a massive drop in investment of private capital in the building industry over an extended period. In the four-year period 1979-1982, private investment in the industry fell by over 50 per cent. It is unrealistic to expect the State to match in full this reduction in private investment by a corresponding increase in public capital support, given the competing needs of other sectors of the economy and the restriction on the raising of revenue through taxation and on borrowing by the State.

Public capital investment in the building industry has in fact gone a long way towards countering the worst effects of the withdrawal of private investment and every effort is being made to maintain this position.

In the years 1977 to 1979 there was greatly increased public capital expenditure on construction at a time when building activity, buoyed up with private investment, was rising strongly in any event. The result was a costly and damaging over-heating of the industry and the creation of serious problems, many of which we are still trying to cope with. Inflation in the industry literally took off. Tender prices jumped far ahead of cost increases generally. Shortages of many building materials gave rise to greatly increased imports. Shortages of skilled workers became manifest. Delays in completing projects because of unavailability of building workers in some areas caused further increases in project costs.

Notice taken that 20 Members were not present; House counted and 20 Members being present,

Now, at Deputy Brady's request, having established that the last bus for Donegal has not departed, I will continue. Some of the consequences of this period of over-heating are still with us — to give an example, while building output and the demand for building materials dropped over the past three years, imports of materials have continued at a high level. This factor is having a damaging effect on our materials manufacturing industry and on employment within that industry.

Imports of building materials in 1981 — the last full year for which figures are available — were valued at about £350 million. About half of these imported materials could have been produced in the country creating direct employment of up to 10,000 jobs. Relatively speaking, we have one of the worst trade balances in Europe in this particular sector. The value of imported building materials doubled between 1977 and 1981; yet our exports in the period increased by less than one-third.

The building industry is a particular case in which an unthinking approach can, and has, damaged the interests of Irish producers. The type of case that I have in mind is the not infrequent one in which building or design specifications have been drafted in such a way that they effectively precluded by their terms the use of Irish materials or products that, given a fair chance of competing, would have been quite suitable on grounds of quality and price for the job in hand.

I want to assure Deputies that this Government will act responsibly towards the building industry. However, we are bound by constraints which were not of the present Government's making and which seriously limit room for manoeuvre. Much of the remedial action being urged on the Government would, in the long term, compound rather than cure the problems of the economy. The policy which I will pursue in relation to the building industry may take time to bear fruit but the reality of the present situation is that there is no magic wand available to conjure up in the short-term the kind of additional investment and growth that some spokesmen have called for.

Deputies will be aware of the need for a system of control both technical and administrative, in the construction of all buildings. While power to make building regulations is available in the Local Government (Planning and Development) Act, 1963, the Act does not cater for developments which have taken place in the industry since the 1963 Act was enacted. A number of factors, such as energy conservation and efficient use of resources, must be catered for in the building regulations and the power available under the 1963 Act is inadequate for this purpose. For that reason I propose to introduce a Bill during this present session which will provide a new statutory basis for the making of building regulations and for their administration and implementation.

Housing is the largest sector within the construction industry. It accounts for about two-fifths of the output of the industry and about one-third of its employment. The importance of housing is not solely that it is a major economic activity; it also satisfies a basic social need. We are relatively fortunate in having a housing stock of good quality. The return to the community from the considerable investment required to provide this housing stock is best illustrated by considering the consequences of poor housing conditions, such as widespread health problems, social and economic deprivation and instability. In the past ten years, well over one-quarter of a million new houses were built or almost 30 per cent of this country's housing stock. Although this is a remarkable achievement, population pressures are such that we must keep up or even increase this pace of activity. Any shortfall in meeting housing needs in the short-term will have to be made up in the longer term with heavy economic and social costs. The Joint Programme for Government recognises the need for a continuing high level of housing output and includes an aim to raise output towards 30,000 units per year. Obviously meeting this target will take some time, but I am determined that the target will be achieved.

My policy in seeking to ensure that housing completions are sufficient to satisfy needs is based on two approaches. First of all, every encouragement will be given to the majority who can house themselves through their own efforts. There is a wide range of inducements to this group of people ranging from grants and subsidies, tax concessions, the availability of mortgage finance and the operation of arrangements to ensure that new housing is of good standard and located in an acceptable environment. The second approach is that the State will provide, through local authorities, or assist the provision through voluntary housing organisations, of housing for those who have not the resources to house themselves.

In spite of the very difficult budgetary situation facing the Government I am maintaining the capital provision for housing in 1983 at a very high level. The total capital allocation for housing provided in the 1983 Public Capital Programme is £360 million, the highest allocation to any sector of the programme. In 1982, 26,798 houses were completed which represented a decline of over 2,000 houses on the figure for 1981. This decline has taken place entirely in the private sector due to the effects of the economic recession.

In 1982, the capital allocation for local authority housing was £186 million. This amount funded the completion of 5,686 houses and left a further 7,460 houses in progress at the end of the year. The average monthly employment on the programme throughout the year was 5,889 while the December figure stood at 6,086.

An allocation of £208 million is being made available towards the housing programme in 1983. This figure represents an increase of 11.8 per cent on the 1982 provision. Having regard to the very competitive tendering which we have experienced, particularly throughout the second half of 1982, and the moderation in the rate of increase in building costs, this allocation should be sufficient to maintain the programme throughout 1983 at about the 1982 level. It is important to ensure that maximum value is got for the resources provided. To this end we have undertaken a broad ranging examination of the extent to which there may be scope for restraining the unit costs of local authority houses which have, unfortunately, increased so much in recent years.

Housing subsidy in subhead E1 of the Vote meets in full the loan charges on borrowings incurred by local authorities in the provision of houses for letting. The provision for this subsidy in 1983 is over £128 million, an increase of £30 million over last year's provision.

The present differential rents scheme has been in operation since the beginning of 1982. I am at present developing proposals for a revision of the scheme for discussion with local authorities and tenant interests. The basic strategy behind the scheme is that those persons who can afford to do so should pay their fair share of rent and those in less favourable circumstances should have their rent payments tailored to their means.

Private housing output is influenced strongly by the prevailing economic situation. The result has been that private housing completions in 1982, compared with 1981, fell by over 2,000 to 21,112. Financial incentives such as grants and subsidies for house purchase and house improvement remain a central feature of Irish housing policy. Subhead E2 makes provision for £18 million for the payment of new house grants for first-time owner-occupiers and for house improvement grants.

The mortage subsidy scheme is designed to ease the burdens on first-time owner-occupiers of new houses by making a subsidy of up to £3,000 available to eligible applicants over a period of five years. The provision in subhead E3 for mortgage subsidy in 1983 is £14.3 million.

The availability of mortgage finance is a key factor in the level of housing demand. I am concerned, therefore, to ensure that mortgage finance should be available and at interest rates that people can afford. Private resources, through the building societies and the mortgage operations of the banks and assurance companies, are supplemented by public agencies — the Housing Finance Agency and the house purchase loan scheme of local authorities. In 1982, £439 million was paid out by all the major lending agencies. Regrettably, the contribution by the banks and assurance companies continues to decline. Together they provided something in excess of £30 million, or only about 7 per cent compared with nearly 20 per cent in 1978, of the total advanced by the main agencies.

Building societies remain the major source of mortgage finance. The societies advanced £292 million in 1982, or two-thirds of the total advances. The societies can be expected to continue their major contribution to the financing of the private housing programme in 1983 and they are likely to fund about 15,000 loans for both new and existing houses. The societies' mortgage rate stands generally at 13 per cent since January last, which is the lowest rate that has prevailed for more than four years. Some of the societies have been able to relax their loan requirements in varying ways in recent months. During 1982 the societies were permitted to avail of a foreign borrowing facility of £20 million with the benefit of a State guarantee against possible exchange rate losses. A token provision is included in subhead E3.6 to cover any expenditure which may be necessary on foot of this guarantee in the current year.

People on lower incomes for whom the building societies do not normally cater are provided with mortgage finance through schemes operated by local authorities and the Housing Finance Agency. The capital allocation for the payment of loans by these agencies in 1983 is £127 million. In 1982, local authorities paid out a total of almost £100 million in house purchase loans. Loans under the local authority house purchase loan scheme have a fixed interest rate of 12½ per cent per annum.

The Housing Finance Agency was set up by the previous Coalition Government. In the four month period to the end of 1982, the agency advanced some £17 million to enable local authorities to issue house purchase loans principally to first-time purchasers. The agency will have £50 million available for this purpose in 1983. There has been a strong demand to date for the agency's unique loan scheme. The agency will raise finance for its operations through the issue of State-guaranteed bonds linked to the rate of inflation and having a small real rate of return. A first bond issue of £25 million was made by the agency in January this year. The success of that issue augurs well for the future issues the agency will make.

The conservation and improvement of existing houses is a very important facet of housing policy. The scheme currently in operation provides grants for the provision of a water supply, sewerage facilities, a bathroom, increased accommodation to cater for overcrowding, chimneys in houses where none exists and necessary conservation works to the basic fabric of the house. In 1982 my Department paid about 18,000 house improvement grants, excluding grants paid for group water or sewerage schemes with which I will deal later.

For some years past a proportion of the moneys allocated for house improvements is earmarked for grants to provide improved accommodation for disabled persons and for essential repairs to certain houses in rural areas. Grant assistance is available for the adaptation of existing dwellings to facilitate occupants suffering from severe physical or mental disability. The essential repairs scheme applies to houses occupied by elderly persons and is designed to improve these houses so that the occupants can continue to reside in them for the rest of their lives. Irrespective of the state of the nation's finances it is only proper that social services of this nature should not be neglected.

Subhead E provides funds for an emergency programme to improve the living conditions of old people living alone in insanitary or unfit accommodation. The range of works could involve, for example, repairs to a chimney or fireplace, the provision of water and sanitary facilities, the provision of food storage facilities, works to facilitate access to a house such as a ramp or handrail and so on. Formalities are kept to a minimum and where an application is approved work is carried out at no cost to the applicant. Generally, the programme is being undertaken with the co-operation of the health boards on a regional basis under the direction of the various community care managers. There is also close co-operation with certain voluntary organisations such as St. Vincent de Paul and "Alone". I have provided a sum of £1 million in subhead E4 to enable it to be continued in 1983.

In turning to local authority finance, let me first spell out in broad terms what I see as the problems in this area and what my objectives are in tackling those problems. I am concerned at the trend in recent years of local authorities' increasing dependence on the Exchequer for the bulk of their current revenue. This has come about with the derating of domestic dwellings in 1978 and the progressive derating of agricultural land, culminating in, for practical purposes, complete derating in 1983. To put this in perspective — in 1976, about 38 per cent of local authorities' receipts on current account came from the Exchequer — by 1982, this had risen to 60 per cent.

In these circumstances the Minister for the Environment — any Minister for the Environment — could not write a blank cheque for local authorities and as a result central controls on local finance, particularly in the matter of striking the rates, were imposed. Moreover, the deteriorating financial position of the Exchequer inevitably put a further constraint on the amounts by which local authorities were allowed to increase rates. I believe that the increased dependence on the Exchequer and the control it brings is not good for local democracy.

My approach to the question of local finances is based on the principle of restoring as much freedom and discretion to local authorities as is possible. The Estimates before the House, together with other decisions we have taken and to which I will refer, represent a first step in the right direction.

The Estimate published by the previous Administration provided £138 million under subhead O — grant in relief of rates — and £108 million under subhead P — grant in lieu of rates on agricultural land. These provisions would, I believe, have spelt disaster for local authorities. The £138 million for domestic rate grant was the same as the 1982 provision and was £17.5 million short of what would have financed even a freeze in rate poundages on domestic property. The £108 million for the grant in lieu of rates on agricultural land was the equivalent of a freeze in rate poundages had they been applicable to land.

When one realises that those grants are spent on the day to day running of the essential services the local authorities provide, including fire and emergency services, water and sewerage services, roads, the wages and salaries of over 30,000 workers, together with the mounting cost of debt service arising from the expansion in capital programmes, it is not difficult to see that the amounts provided by the previous Administration were a recipe for serious cutbacks in the essential services of local authorities and, with the cutbacks, the loss of employment.

I am pleased, therefore, that I was able to secure a Government decision to allocate an additional £31.5 million for these grants, notwithstanding the very difficult budgetary situation. This increased the 1983 provisions to £163.5 million for subhead O and £114 million for subhead P, representing increases of over 18 per cent and 5½ per cent respectively, over what had been provided by the previous administration and 18 per cent and 28 per cent respectively over the 1982 provisions.

I recognise that the extra £31.5 million still leaves a shortfall for local authorities which will have to be raised in other ways. My approach to this is to confer the maximum discretion on local authorities as to how the shortfall is to be raised. I have departed from the practice of five years standing whereby the local authorities' power to strike a rate was effectively dictated from the Custom House. This year local authorities were free to strike whatever rate they wished. They will also be free under the recently introduced Local Government (Financial Provisions) (No. 2) Bill, 1983, to supplement their income by charges for services. As this Bill will shortly be debated in the House, I do not wish to discuss the details here, except to make these points——

— the local authorities will have maximum discretion under the Bill in regard to the imposition of charges, while respecting that standardisation is necessary in some cases, as with the planning charges;

—the charges required will be of moderate dimensions — and very moderate compared with the charges which would have had to be imposed if the rate support grants had stayed at the level provided for by the previous Government. I hope this will be borne in mind by the Opposition when it comes to debating the Charges Bill.

That Bill also makes broad provision for hardship circumstances.

I believe that the approach which I have described is the right approach. I cannot claim that it will solve all the local authority financial problems this year, or that there are any practicable means of achieving that immediately. In addition, therefore, to the immediate steps which I have described, I am arranging for a special examination to be undertaken of the means that might be adopted to ensure the financial viability of the local government system for the medium and longer terms, including the degree of financial independence which is essential to the health and confidence of democratic local government.

We are dependent on roads more than most other developed countries as the principal means of transport. The public road network accounts for some 96 per cent of all inland passenger traffic and 90 per cent of internal freight traffic. The main improvements required to make the road network — and especially the national routes — adequate in regard to economic, social and environmental needs, have been set out in the Road Development Plan for the eighties. Road grant allocations continue to be guided by the objectives of the plan. With some 3½ years experience of its operation, I have now undertaken a thorough review of the plan.

The Department's Vote provision for road grants this year amounts to £115.5 million an increase of 14 per cent relative to 1982. This should more than compensate for increases in costs which are estimated at 11 per cent. Between 1979 and 1982 total employment on road works declined from 11,500 to 10,000. I expect this fall in employment to be halted this year. Of the total Vote provision of £115.5 million £90 million will be spent on road improvement—£10 million more than last year. The priorities in the expenditure of that sum must be given to completing schemes already in progress, such as the by-pass schemes at Naas, Santry and Swords in the Dublin area, the ring road and bridge in Kilkenny and major bridges in Cork and Waterford. The Naas by-pass is expected to be open to traffic by the end of this year. Planning for a by-pass of Newbridge is under way. Public inquiries into the proposals for the new bridge over the Shannon and by-pass at Athlone have been arranged. Dublin County Council have accepted a tender for the construction of a new Templeogue bridge, and in Dublin city, Ballybough bridge will also be widened. The second stage of the new road to Dublin Airport is expected to start in the autumn. Planning is also going ahead for a by-pass of Bray and Shankill. I hope that local difficulties related to a by-pass of Chapelizod, the Southern Cross Route in Dublin, and a third bridge at Sligo will be resolved without undue delay. In Galway the planning of a new Corrib bridge is under way and construction work has commenced on the road approaches.

These are just some of the major works. Grants have also been allocated for many other improvement works throughout the country.

While the execution of road improvements is important an even higher priority must be given to preserving the existing network. I am providing £25.5 million this year for road maintenance, an increase of 19 per cent compared with last year. This will permit a reasonable standard of maintenance on our major roads. There was also a modest increase in the block grant for certain works on main and county roads.

It is important that we bring our major traffic arteries closer to the standards which obtain in Europe to offset disadvantages of our geographical position within the EEC. These major arteries — the national roads — comprise only around 3,300 miles or 6 per cent of the total road network, but they carry some 35 per cent of the traffic. Below this there is a further tier of non-national "main" roads — about 6,700 miles — and below that again 43,000 miles of county roads. Ireland has one of the highest proportions of road mileages to population in European countries, with consequential problems of improvement and maintenance of a widely dispersed network of which the major portion is of relatively low usage. With the improvement in the state of local authority finances, to which I have alrady referred, I expect that local authorities will apply a fair share of their resources towards the surface dressing of county roads, of which over 7,000 additional miles have been taken in charge in the past 20 years.

The Government believe that, given the limitations on Exchequer funding, ways and means must be found to supplement the roads programme by tapping other sources of finance. The Joint Programme for Government referred to the possibilities of attracting additional private capital for urgent infrastructural works, which would have an important spin-off effect in maintaining employment in the building industry. This proposal is being examined in my Department with particular reference to roads. The examination is aimed at establishing, inter alia, the best means of attracting and managing private capital for roads, and how such private investment is to be repaid, including the scope for the application of tolls for particular projects where such are considered to be appropriate and practicable.

Last month, I gave formal consent to an agreement between Dublin Corporation, the Dublin Port and Docks Board and Ringsend Bridge Ltd. under the Local Government (Toll Roads) Act, 1979. The agreement put a formal seal on a unique arrangement under which private enterprise has combined with public authorities in the provision of a modern traffic facility. Work has now started on the construction of the Ringsend toll bridge which will cost about £8 million and will span the River Liffey linking East Wall Road with Ringsend.

A provision of £3 million is being made for the Local Improvement Scheme in 1983. As in 1982, the bulk of the allocations made to counties which benefit from the Western Package will be devoted to farm road projects eligible for EEC aid.

A directive adopted by the EEC obliges member states to implement harmonised schemes from 1 January 1983 for the annual testing of certain classes of commercial vehicles. Regulations to give effect to the terms of that directive were made in 1981 and the scheme is now fully operational. At present over 3,000 vehicles are being tested every month at centres widely available throughout the country. The introduction of this scheme should result in a substantial improvement in vehicle maintenance standards which in turn would be reflected in a decrease in defect-related accidents, a reduction in the incidence of costly breakdowns and an increase in useful vehicle life for operators.

Provisional figures show that fewer persons were killed on our roads during 1982 than in 1981, but the issue of safety on our roads continues to be a cause for fundamental concern. We have a long way to go before we can regard ourselves as a nation of safety-conscious road users. I take this opportunity of paying tribute to the various agencies which are concerned with the drive for greater safety on our roads — the Garda, the National Road Safety Association and An Foras Forbartha.

The Department's Vehicle Registration Unit, which is now located at Shannon, is concerned with the maintenance of computerised national records of vehicle ownership. The work involves the updating of existing computer records to take account of licence renewals, changes of ownership or other vehicle particulars as well as recording the details of first registrations. The unit works in close co-operation with local motor taxation offices from which the relevant data is obtained. The computerised system affords immediate access to a wide range of vehicle information, particularly to the Garda authorities, in the matter of traffic law enforcement and road tax evasion, as well as in crime prevention.

Future developments will include the centralisation of all vehicle records at Shannon. This will require legislation, which is currently in course of preparation.

The total provision made in the Public Capital Programme for 1983 in respect of sanitary services is £109.8 million. Of this £97.3 million is earmarked as non-voted loan capital for public water and sewerage schemes. The balance of £12.5 million is made up of the £7.2 million for grants for private group water schemes and provision of £5.3 million for public water schemes designated for grant assistance under the Western Package of aid from the European Agricultural Guidance and Guarantee Fund. The capital provision is adequate to cover 1983 expenditure on public water and sewerage schemes in progress and to allow financing to be provided for new schemes authorised this year. It also allows an average increase of around 50 per cent in the allocations to local authorities for small public water and sewerage schemes, costing less than £50,000. In many cases this will help to maintain direct labour employment. The average direct employment on the sanitary services programme is projected to increase to 2,150 jobs in 1983. This represents a 19 per cent increase on the comparable 1982 figure of 1,810 jobs.

The subsidy to be paid by my Department in 1983 on loan charges incurred by local authorities on the approved cost of public water and sewerage schemes is estimated at just under £30 million — the relevant funding is provided under subhead F.1. This is an increase of about £8 million on the 1982 allocation and reflects the growing commitment required to support the financing of loan charges on sanitary services investment.

The Government recognise that sanitary services schemes have a pivotal role in promoting economic growth and development. This is one reason why, despite economic and fiscal difficulties, sanitary services investment is being strongly maintained. For the country to take advantage of an upturn in economic activity there must be a good supply of serviced sites available for industry and for other developments.

In order to maintain the momentum of the programme in 1984, I have recently announced the release of 59 major public water and sewerage schemes with an estimated total value of about £75 million. The schemes approved include projects to serve housing and new industry; to eliminate deficiencies in existing services; to provide headworks for regional schemes, and to incorporate treatment facilities so as to prevent pollution being caused by sewerage schemes. I am arranging for my Department and local authorities to co-operate in ensuring that work and employment commence as soon as possible. The scale of these new releases will help in the build up of confidence in the civil engineering sector of the construction industry.

By the end of 1982 more than 3,500 private group water schemes had been completed and approximately 107,000 houses and 80,000 farms had obtained water from group schemes. Work was in progress on the installation of water in another 7,000 houses and 140 schemes had been designed to serve a further 4,800 houses approximately. The rural piped water supply programme continues to benefit greatly under the Western Package. Approximately £7,500,000 has been paid out since June, 1981 in grants in respect of more than 8,700 houses in the western counties under the scheme. The total allocation for 1983 of £7.2 million for group water scheme grants represents a 14 per cent increase on the outturn expenditure of £6.3 million in 1982. This will be adequate to meet all estimated grant expenditure in 1983 in both western and non-western counties.

The growth in fire risk which this country has experienced in the past decade or so has stemmed from economic and social change, and the introduction of new materials with fire characteristics different in many respects from the more familiar traditional materials. We have to gear ourselves to the increased hazards. The changed situation calls for response not just from Government and local fire authorities, but also from the general community.

Subhead U provides an allocation of £1.352 million for fire and emergency services in 1983, an increase of more than 100 per cent on last year's allocation. The provision in the Public Capital Programme has also been substantially increased. The 1983 allocation is £6 million. This compares with £2.5 million in 1981 and £4.75 million in 1982. The increased funding will provide for an expanded programme of investment by the fire authorities in the construction of fire stations, and the purchase of fire-fighting, communications, rescue and other emergency equipment. Since 1978 some 30 major fire station projects have been completed and proposals for financing the purchase of 78 new fire tenders and other equipment have been approved. A subsidy scheme is payable at the rate of 50 per cent on loan charges and £1.2 million is being provided in subhead U1 for this purpose.

Increasing attention is being paid to the need for a higher standard of training in the fire service. Under the 1981 Act it is the duty of the individual fire authorities to ensure that training of fire service personnel is carried out and that adequate standards are maintained. My Department complement these activities by offering advice and assistance, issuing guidelines on various aspects of training and by organising central training courses for selected fire authority personnel. The financial allocation for training will allow for an expanded programme in 1983.

The Fire Services Act, 1981, has made significant improvements in the law in the area of fire prevention. In particular it strengthens the powers of the local fire authorities to inspect buildings and secure adequate standards of fire safety. The Act provides also for the making of fire safety regulations relating to matters such as the use and management of buildings to which the public have access.

The building regulations, to which I have referred already, will include requirements relating to fire safety in new buildings and in extensions and alterations of existing buildings. The matters to be covered will include structural fire precautions and means of escape, and account will be taken of the technical recommendations made by the Stardust Tribunal.

It is my intention also to avail of the powers in section 37 of the Fire Services Act, 1981, to make fire safety regulations which will cover the use, management and contents of buildings. Priority is being given to places of public assembly, taking account of the relevant recommendations of the Stardust Tribunal.

The passage of legislation and the introduction of regulations will not in themselves be sufficient to improve the overall level of fire safety.

The Fire Prevention Council have been doing excellent work in promoting public awareness of fire safety since they were established in 1978. This has been endorsed by the Stardust report.

Deputies will recall that when the Fire Services Act, 1981, was before the House there was general agreement on all sides on the proposals for the establishment of a fire services council which would be empowered to provide specified services for the Minister and fire authorities, including in particular the provision of training courses for fire service and other personnel. I am, therefore, going ahead now with the establishment of the council. A primary concern of the council will be to provide for an expanded programme of central training for fire service personnel. The council will have also the wider role envisaged for them in the Fire Services Act in that they will assist in the development of appropriate regulations, codes of practice and standards relating to fire and fire safety. I have no doubt but that the council will have wide support from the fire service. I hope to be in a position to announce shortly the details of the proposals.

I am continuing the general review of planning law and I intend that special emphasis should be placed on identifying changes which would make the planning system more effective and speed up decision making. In our present difficult economic circumstances it is essential that the planning process should not delay worthwhile development unnecessarily. Local planning authorities were asked last October to review their approach to development control and to examine their practices and procedures so as to ensure that the system is operating speedily and effectively. To assist in this review a substantial memorandum containing advice and guidelines was issued by my Department. I am now asking the planning authorities to report back on the action which they have taken as a result of their reviews and I am considering what further follow-up action may be open to me.

I have expressed concern on a number of occasions about the operation of An Bord Pleanála and, in particular, about the build up of arrears of appeals awaiting decision. There were 3,502 planning appeals on hands in the board at the end of March 1983. This situation, quite simply, is unacceptable in its implications for employment and in the holding back of economic activity in the hard-hit building and construction industry. I have had to consider how best the necessary turnaround in performance could be achieved, taking account also of the public concern which has been expressed. The Government have decided that the board should be reconstituted and legislation is being prepared and will be introduced as soon as possible. In the meantime special arrangements are being made, involving the assignment of additional departmental staff to assist the board, to bring about the maximum improvement in the arrears position as quickly as possible.

While it is essential that the development control system should be working efficiently, I believe that planning should make a positive contribution as well to development and employment provision. I will be trying to bring about a revival of interest and emphasis on the positive potential of planning. As a first measure guidelines on the methodology of urban plan-making are being issued to assist the local authorities. The local development plans should set the scene, and provide the context, for the positive role of planning. If plans are to serve this purpose they must be of a good quality and the guidelines should be a help in that direction.

The urbanisation process, and the need to get infrastructural and other investment programmes properly integrated, means that more attention will need to be given to the regional dimensions of physical planning. Important work of the kind I have in mind has now been undertaken by the Eastern Regional Development Organisation aimed at identifying the best strategy for future accommodation of development in and around the capital. There are, of course, special problems in that region and special urgency, but the regional dimension of planning is needed in all regions and I am aware that forward planning has, in fact, been undertaken by other regional development organisations as well. My Department will be reviewing the happenings and the needs in this area. There is a provision of £125,000 for assistance for the regional development organisations in 1983. £50,000 of this is earmarked as a contribution to the eastern region study to which I have referred, leaving £75,000 for grants towards the general operating costs of the nine organisations. This is £25,000 more than in 1983, so that I will, in fact, be providing a stronger measure of support in this area than has been done in recent years.

The introduction of fees for planning applications and appeals is in line with the approach of the previous Government. The considerable cost of operation of the development control system, involving processing of planning applications by local planning authorities and of appeals by An Bord Pleanála, has hitherto been borne by the public at large. It is reasonable and equitable that the persons and interests who utilise the system and have the benefit of it should make some contribution to the costs involved. The fees which have been introduced are designed to achieve this aim.

There have been some criticisms, and this is to be expected. It would be nice not to have to impose any charges. I believe, however, that the scheme of planning fees is fair and reasonable and will come to be seen that way. But if there are unsatisfactory elements in the scheme, and this emerges with experience, I am prepared to take account of them and, if necessary, to amend the scheme.

In accordance with a commitment contained in the Programme for Government, priority has been given to the reestablishment of the Joint Committee on Building Land, which has now held a number of meetings. I sincerely hope that the committee will prove an effective means of reaching consensus as to the best approach to the question of building land prices. The Programme for Government contains a commitment to the enactment of legislation by mid-1984 on the question of building land and this remains the target.

I am reviewing the action to be taken in the matters covered by the Urban Development Areas Bill and the Dublin Inner City Development Authority Bill, 1982. I am fully aware of the particular significance of the future development of the Port and Docks Board site alongside the Custom House and I do not rule out the possibility of special institutional arrangements. But I have reservations about heading into a situation in which there would be demands to set up a number of new development bodies to undertake specific tasks in various areas, and the problems which this would be likely to cause in regard to financing, duplication and so on. I am not sure that these implications were fully thought out by the previous Government. This seems to be reflected, for example, in the issues which had been raised about the relationship between the proposed urban development commissions and Dublin Corporation.

I would like to see as much progress as possible being made to deal with the very real problems of the inner city in the most effective way possible, which is through the existing local authority and other institutions concerned. This possibility is being examined side by side with the review of legislation to which I have already referred.

In the meantime, the Dublin Inner City Group, which works under the aegis of my Department, will continue to provide financial support for projects in the Dublin inner city which lead to job provision, improvement in community, recreational and educational facilities and in social provisions. At this stage the group has dispensed over £1.5 million under this programme, and the Estimate provides for a further £300,000 for 1983.

The physical environment is a prime national resource which in recent years has rightly become the subject of increasing public attention. As the Minister with an overall responsibility for the protection and improvement of the environment, I welcome this tendency. Significant changes in the surroundings are taking place all the time as a result of the pressures brought about by an expanding economy, our growing population, increasing urbanisation, industrial growth, changing patterns of agriculture and increasing demands for recreational facilities.

The economic growth we need to achieve increased employment and improved living conditions inevitably means that the environmental pressures will continue.

A formal environment policy statement was issued by the previous Coalition Government in January 1982. The main aim of this policy is the protection and improvement of the physical environment side by side with economic and social progress. The statement of policy was an essential step in promoting the interests of the environment. However, of itself, a policy statement will achieve nothing unless there is a commitment to specific measures to give effect to the policy aims.

There is, in fact, a lot going on centrally and locally, inside the local government system and outside it, that has a bearing on the policy aims set out in the 1982 statement. I intend that early attention should be given to assessing the adequacy of the existing programmes bearing on environmental protection and improvement taking account, in particular, of the recommendations of the Environment Council in their report "A Policy for the Environment". The aim will be to identify gaps or weaknesses in environmental programmes so that whatever action is needed to deal with them may be undertaken. I am also proceeding with examination of the adequacy of the legislation relating to pollution control with a similar objective in mind.

Another important development taking place is the preparation by An Foras Forbartha in association with my Department of a first report on the state of the environment. This report will provide a factual account of the condition of our environmental resources so that we can take heed of undesirable trends and take corrective action. I hope to see this report completed shortly.

I was very glad to announce recently that £10 million is available for environmental works to be undertaken by local authorities this year. Of this provision, £8 million is being financed by the Youth Employment Agency with the balance of £2 million coming from Subhead G of my Department's Vote. I have notified local authorities of allocations aggregating £8 million. It is important that the employment should be beneficial not just in terms of numbers of jobs created but also the quality of work and of the work experience. I have stressed to local authorities the importance of developing the training and educational aspects of their work programmes in association with the appropriate authorities in their areas.

A further allocation of £2 million is being made available from which funds will be allocated to local authorities for particular projects which will provide suitable training, work experience and temporary employment for eligible young persons in areas of particularly high youth employment. Projects selected will be of a longer-term nature than those normally associated with the environment improvement scheme and the local authorities have been invited to submit proposals.

I want to emphasise my commitment to the settlement programme for travelling people. To that end, I will ensure that my Department continue to give every assistance and encouragement to local authorities to provide accommodation for travellers, whether in conventional houses, in special schemes or on halting sites. This year £1.5 million is being made available under subhead S mainly to provide 100 per cent subsidy to local authorities for capital projects and 90 per cent recoupment of the salaries and expenses of social workers employed in the programme. A sum of £1.25 million of non-voted capital is also provided to finance new schemes of accommodation.

The Travelling People Review Group, which was set up jointly by the Ministers for the Environment and Health in January 1981, presented their report on 4 May. The report contains a detailed analysis of all aspects of existing policies, programmes and services which relate to the travellers and recommends a series of programmes involving action in the areas of accommodation, education, employment, health, social welfare and so on. A Government review body, composed of the Ministers of State at the Departments of the Environment, Justice, Finance, Labour, Health, Social Welfare and Education has been established to ensure urgent consideration of the recommendations in the report and to identify those which are capable of implementation in the current financial situation. The review body is under the chairmanship of the Minister of State at my Department, Deputy Ruairí Quinn.

My own direct area of concern is, of course, the question of accommodation for travellers. There have been real achievements in this area but these have been masked by the fact that the number of traveller families doubled in the past 20 years. The count taken last November showed that 1,102 families were then in occupation of standard houses and a further 360 families were living either in chalets or trailers on authorised sites or halts. On the debit side, however, we have to face the fact that the number of roadside families continues to rise and last November, stood at 1,387. Besides, there are great discrepancies in achievement in different areas.

There is heavy emphasis by the review body on standard housing as the predominant method of approach to settlement and this is very much in line with the policy which I have been pursuing. On receiving the results of the 1982 count, I wrote to each city and county manager asking for intensification of effort in the accommodation programme and stressed that every traveller who applies for a house should be given full consideration in accordance with the statutory schemes of letting priorities. I have also asked the managers to ensure that travellers get whatever assistance they need in making applications for housing. My Department are now examining the detailed recommendations in regard to housing and other accommodation which were made by the review body and I will ensure that no time is lost in establishing an implementation programme.

There are a considerable number of other expenditure items in my Department's Vote which I have not time to deal with but details are available in Part III of the Vote. Areas not covered by me include subhead H (recoupment of expenditure in respect of the Register of Electors), An Foras Forbartha, malicious injuries, grants for the public library service, miscellaneous services in subhead Y such as grants to the Irish Water Safety Association and the Water Pollution Advisory Council. The receipts for Appropriations-in-Aid are set out in subhead Z and are self-explanatory.

I would have liked to go into more detail on some of the items in the Department's Vote but I do not wish to take up too much time so that Deputies who may wish to speak may have an opportunity to do so. If Deputies want further information on any of the subheads in the Vote I will obtain it for them. Overall, the voted expenditure, together with the non-voted expenditure and the income of local authorities, amounts to a very large sum of money which must be used in the most efficient manner for the benefit of the whole community. It is my objective to achieve this.

Ba mhaith liom fáilte a chur roimh an Aire Comhshaoil agus comhgháirdeas a dhéanamh leis ar seo an chéad ócáid dó ag cur Meastachán a Roinne os comhair na Dála. Mar a dúirt sé féin ag a dheireadh, tá a lán cúramaí éagsúla faoi sa Roinn seo agus is dóigh nach raibh seans aige san óráid a thug sé uaidh plé faoi gach uile ghné de chúramaí a Roinne. Mar sin féin tá brón orm nár dhúirt sé tada faoi cheantair thábhachtacha a thagann faoina chúram. Níor dhúirt sé aon fhocal amháin faoi na ceantair Ghaeltachta a thagann faoina chúram chomh maith. Cé go gceapann a lán b'fhéidir gurb é seo cúram Aire na Gaeltachta, leis an fhírinne a rá tá i fhad níos mó tionchair ag an Aire Comhshaoil ar fhorbairt agus áiseanna agus seirbhísí éagsúla síos sna ceantair sin ná mar atá ag Aire na Gaeltachta féin. Is dóigh go bhfuil i bhfad níos mó airgid le caitheamh ag an Aire Comhshaoil don na ceantair sin ná ag aon Aire eile. Tá mé ag rá seo chun a chur ina luí ar an Aire cé chomh tábhachtach is atá sé go mbeadh a fhios aige faoi na deacrachtaí speisialta atá sna ceantair Ghaeltachta, agus go bhfuil gá le leigheas éigin ar na deacrachtaí sin.

Is dóigh gur ceist staire é go bhfuil na Gaeltachtaí lonnaithe in áiteacha iargúlta. Dá bharr sin tá easpa áiseanna agus easpa shaibhris sna ceantair sin. Muna bhfuil tuiscint ag an Aire Comhshaoil cad iad na deacrachtaí agus go bhfuil gá len iad a shárú, feictear domsa nach ndéanfar aon rud fúthu. Ba mhaith liom a chur ina luí ar an ócáid seo sa Dáil go bhfuil mé ag iarraidh air i fhad níos mó ama a chaitheamh ag breathnú ar na ceantair thábhachtacha seo agus ag freastal orthu, agus tá mé ag iarraidh air níos mó airgid, más féidir leis, a chur ar fáil chun cuid mhaith de na deacrachtaí sin a leigheas. Cé go bhfuil cúram títhíochta i gcoitinne, ó thaobh dheontas de, ar Aire na Gaeltachta, ó thaobh bhóithre, uisce, séarachais, pleanála is é an tAire Comhshaoil atá freagrach as feidhmiú na scéimeanna sin. Tuigim go bhfuil cuireadh faighte ag an Aire, ní amháin uair amháin ach roinnt uaireanta, ó dhaoine i nGaeltacht na Gaillimhe teacht anuas agus droch-staid na mbóithre a fheiceáil dó féin ionas go mbeidh airgead faoi leith á chur ar fáil sna Meastacháin don bhliain seo chun tosnú ceart a dhéanamh ar na bóithre sin a dheisiú. Beidh píosa le rá agam faoi sin níos faide amach anseo. Tuigtear domsa nár ghlac an tAire leis an cuireadh seo fós. An raibh an tAire ann?

Ní raibh me ábalta go dtí seo.

Ní raibh sé ábalta fós ach tá sé i gceist aige dul ann? Tá súil agam go rachaidh sé ann go luath.

Roimh na laethanta saoire.

Tá sé beagáinín deireannach anois. Tá an t-airgead do na bóithre roinnte amach cheana féin do na comhairlí chontae éagsúla, agus is dóigh go bhfuil bliain eile caillte againn dá bharr. Is mór an trua é sin. Sna hAchtanna pleanála níl sé leagtha síos go bhfuil gá aon áit faoi leith a thabhairt don tionchar atá ag an Ghaeilge sna ceantair sin agus níl aon chuspóir scríofa sna hAchtanna sin go mba chóir do na húdaráis áitiúla ag plé le pleananna forbartha áitiúla caibidil speisialta a bheith sna pleananna do na ceantair Ghaeltachta chun an Ghaeilge a chosaint ón bhrú, mar tá anbhrú go háirithe ar imeall na nGaeltachtaí — tithe nua á dtógáil, daoine ag teacht isteach iontu ag labhairt Béarla, agus athrú uafásach ag teacht ar na ceantair Ghaeltachta dá bharr. Chaith an Comhrialtas a bhí ann cheana, nuair a bhí an tAcht seo os comhair na Dála, chaith siad amach na leasuithe a mhol an taobh seo ag an am agus níl na nAchtanna leasaithe ó thaobh na ceiste seo ó shin. Tá a lán rudaí eile ag cur as do na ceantair seo agus tá mé ag ceapadh go bhfuil sé sin curtha in iúl agam anois don Aire agus níl me ag iarraidh ach an seans a thógáil inniu a chur ina luí go bhfuil sé tábhachtach go gcuirfeadh sé in iúl do choismhuintir na nGaeltachtaí go bhfuil suim aige sna deacrachtaí atá acu agus go ndéanfaidh sé a dhícheall chun leigheas a fháil agus chun na deacrachtaí seo a shárú.

The Minister for the Environment is the spokesman in the Cabinet for the construction industry, which is the second largest industry in the country. His Department expend about one-third of the Public Capital Programme. All physical planning development comes under his control, all the planning legislation and the building by-laws. I am glad to see the Minister is now promising the House legislation on the by-laws. That has been in gestation for the past 14 years and it is time it was written into our legislation. Roads and the sanitary services also come under the wing of the Minister for the Environment. Many of the other developments affecting the construction industry, although not directly the Minister's responsibility outside of normal Cabinet responsibility for all matters, come under him. He is the one person sitting at the Cabinet table who is there on behalf of the construction industry, who carries the general brief for the building industry. The state of the construction industry has long been the barometer for the economy in general. It is accepted that a thriving construction sector indicates that the national economy is in a healthy state and, of course, vice versa.

The construction industry is in a state bordering on collapse at the moment. Builder after builder throughout the country is going out of business. Over 40,000 building workers have been made redundant. The future looks very bleak. The industry and the country look to the Minister for the Environment and the Cabinet to deal decisively with the serious problems and to guide the industry away from the danger of imminent collapse. The Minister's response has been pathetic. The half page reference to the building industry is the most pathetic response the construction industry has seen to its problems in recent years. I am sure the industry will be very disappointed to see the matter treated in such a cavalier fashion by the Minister.

Worse still, the Cabinet response has exacerbated the situation. A sum of £220 million was cut out of the Public Capital Programme published by the previous Government. Crippling new tax impositions have been introduced creating massive disincentives to investment. This once proud industry is in disarray. It is pathetic to hear the Minister speak of the drop in private investment in the construction industry and state that the Government cannot take up all the slack with public investment. The Government have cut back on the Public Capital Programme and, as I will outline shortly, have introduced a whole range of disincentives which are driving this industry to the wall. Nobody in the Government seems to care. The word is out that official policy is to let the industry wither, to reduce the permanent work force in the construction industry by 50 per cent. The Government have taken several important steps to achieve this objective. I will list them. I have 14 points which will illustrate clearly action taken by the Government which has acted as a disincentive to the construction industry.

First is the reduction I have mentioned already of £220 million in the Public Capital Programme. This is outlined in the booklet, Budget 1983, which on page 60 gives information which was not given in the speech of the Minister for Finance to the House on budget day. Very little information was given on that occasion in the Minister's speech which was broadcast to the nation, but the sad information was disclosed in detail afterwards in the document Principal Features of the Budget. On page 60 of the booklet — which contains all these documents and speeches — details are given of this reduction of £220 million. It is important that they be written into the record of this House, seeing that the Minister for Finance on budget day did not think it worth his while to disclose to the country the savage cuts he was imposing. These cuts are under four headings: sectoral economic investment, productive infrastructure, global contingency provision and social infrastructure.

Under the first, sectoral economic investment, the cuts were as follows: agriculture £16 million, industry £6 million, tourism £1 million, fisheries £2 million, forestry £1 million, miscellaneous £1 million, making a total of £27 million. Under the second heading, productive infrastructure, the cuts were as follows: energy £1 million, transport £4 million, roads, sanitary services etc. £18 million — the Minister passed over this very lightly in his address to the House today — telecommunications etc. another £18 million, making a total of £41 million. The global contingency provision of £120 million was removed completely by the Government. Under the fourth heading, social infrastructure, housing suffered a reduction of £13 million, education £5 million, health £2 million, Government construction £12 million, making a total of £32 million. The overall total is the £220 million which I have mentioned. There we have positive, clear indication of the Government's intent to wither this industry, to withdraw investment from it.

Step No. 2 was the non-implementation of the £120 million projects mentioned in the Programme for Government which was published by the Fine Gael and Labour Parties after their meeting when they made arrangements to enter into Government. On page 6 of this now infamous document, this record of broken promises, it is stated: "There are a number of cases involving, we believe, up to a further £100 million of projects in which infrastructural work can be usefully undertaken". The Minister also made similar promises to building unions when he met them, saying that he would see to it that an additional £100 million would be made available for the construction industry.

That is not correct.

If it is not correct it is time the Minister put the record straight because all of the media reported that they made this promise and statements are being made by union representations to this day that they made that promise. Perhaps the Minister would like me to quote from a favourite document of the Minister's party the Journal of the Irish Transport and General Workers' Union, April 1983.

The Deputy would not want to believe everything he sees in the newspapers.

It says:

Group Secretary Des Geraghty has accused the Coalition Government——

Of what party?

——of failing to recognise the serious jobs crisis in the construction industry. In fact, he said, the Government is actually making things worse.

His thoughts are very similar to mine in this matter. Further on he said:

The construction sector was originally promised an extra £100 m. by the Government which was not forthcoming. And while we were all further disappointed by the drastic cutback of £220m. in the Public Capital Programme by the present Government, we were assured that the Government intended other initiatives which would induce greater private investment in the construction sector.

None of which, of course, has seen the light of day.

I take it that the Deputy would accept that there were no promises because no promises are stated there.

The Minister has a problem if he did not make a promise to the unions when he met them. He has a problem to correct that impression with them because they continue to make public statements to the effect that he made a promise.

The Deputy has set out——

I have it here in the Programme for Government. I did not interrupt the Minister when he was speaking.

I want to keep the record straight.

I do not know why the Minister is getting so upset about this.

I am not upset.

It is just another indication of giving impressions and making promises which create expectations which when not realised have a very bad effect and act as a further disincentive and sap the confidence in this industry which, as the Minister knows, is reeling from the lack of investment and the lack of confidence and wondering where its future will lead it. There was no mention of any details in the Minister's speech today or in the speech of the Minister for Finance on budget day as to how the £100 million would be expended.

I move on to the next major move by the Government which is acting as a disincentive to investment in this industry. I do not want to delay too long on these points as there are 14 in all but it is important to get them on the record of the House. The third is the abolition of the employment incentive scheme for the construction industry. That scheme, which gave financial incentive to increase employment and had been helpful to stimulating job creation in the industry, was abolished by the Minister's Government. Fourthly, the abolition of the residence-related tax incentive scheme was discontinued from 6 April last. It provided the construction industry with a useful incentive which resulted in investment. That was withdrawn. Fifthly, fees for CRVs were increased by 50 per cent. Sixth, new planning charges estimated to take about £6 million out of the construction industry have also been introduced.

Seventh, he proposed the introduction of development levies — which have been estimated by the construction industry as running as high as £10,000 per acre if the levies are as the Government intend — to recoup the full cost of services provided and which in itself could add up to £800 to the price of a new house. No. 8 on my list is VAT which the Government increased by 2 per cent to 5 per cent on construction. That has had a very bad effect on the industry, adding an estimated £700 to the cost of a new house. No. 9, restriction on mortgage interest relief would bring about a reduction in the cash flow to building societies by eliminating certain aspects of the incentive to invest with the building societies. That is a very retrograde step. No. 10 is the impact of the PRSI increases. Wage bills in the construction industry are estimated to increase by about 3 per cent arising from those increases. This is a further financial burden imposed by increasing costs by way of Government action.

The eleventh point is the Housing Finance Agency. The Government decided to reduce the allocation to this agency by £10 million. This will reduce the number of loans that can be made available by the Housing Finance Agency by about 500 at a time when there is a serious drop in the number of loan approvals.

The twelfth point is the failure to increase the number of planning inspectors to facilitate a speeding up in dealing with planning appeals lying with An Bord Pleanála, to which I will refer later on. There is very little point in the Minister being critical in his speech of the backlog of planning appeals awaiting decision with An Bord Pleanála. He quoted a figure which applied about five years ago shortly after the board were set up when there were 15 planning inspectors, and I was told yesterday in answer to a parliamentary question that there are still only 15 planning inspectors. In the first full year of the operation of An Bord Pleanála there were only 15 planning inspectors and the Minister now decries the fact that they are not turning out more decisions and that there is a backlog. If he looks at the statistics he will see that his argument does not stand up. If he is anxious, as we all are, that planning appeals should be dealt with more expeditiously, then the obvious way to deal with it is to increase the number of planning inspectors.

My thirteenth point is the failure to alter the clawback and provision of stock relief in the construction industry, which is in serious decline, and the Minister has not denied this. The 1975 Finance Act, which introduced stock relief to combat the burden of carrying stock increases during a period of inflation, is the only major tax relief available to the construction industry. In contrast, all other manufacturing industries obtain the benefit of a 10 per cent rate of corporation tax and grants towards re-equipment. The output of the private sector of the construction industry is now in decline and, as the stock relief legislation is worded at present, any decline in a company's stock levels results in a clawback of stock relief and deferred tax granted in previous years. Any funds available as a result of stock relief in previous years has become part of the working capital base and has been used to create investment in building, jobs in the private development of industrial estates, shopping, office and housing projects.

In 1983 construction companies, large and small, are finding trading conditions difficult. Both turnover and gross profit margins are falling steeply. Many companies in the industry will show net losses for 1983. Many have already gone out of business and others have been forced to implement redundancies of experienced staff and short-term working in an effort to maintain as many jobs as possible. The compound effect of stock relief clawbacks because of declining turnover, at a time when cash flow and profits are at an all time low, can be devastating. The system of clawback of past relief on a reduction in stock has the effect of clawing back in one year relief which may have been obtained over many years. This is particularly savage since on subsequent increases in stock no relief is available with regard to the relief previously clawed back on the drop in stock levels. For a number of major firms in the industry borrowing to meet the tax clawback will create a problem so acute that, combined with the reduction in business levels, major redundancies will occur and the sale of assets necessary for the running of business will be ineviable. For two years up to 5 April 1975 stock relief was permanent, but since then relief is temporary. I should like to impress on the Minister that it is vital for the Government to introduce legislation making stock relief permanent unless a company's trade becomes negligible or ceases.

My fourteenth point is the failure on the part of the Government to increase house grants and to alter the amount of loans and the income limits for loans. These need to be increased to a realistic figure in line with inflation and wage increases. There has been no indication from the Government that they intend to take any steps in that regard and the ever-widening gap for young married couples seeking to purchase homes is presenting a great obstacle. The Government are delaying the making of that decision, resulting in a falling off in demand for houses, in greater unemployment in the industry and adding to the further depression which this industry is already suffering.

I regret it but I am duty bound to accuse the Government of deliberately setting out to destroy the construction industry. History repeats itself. The periods of the 1951 Coalition, the 1974 Coalition and their present period in office have been disastrous for the construction industry. In former years unemployed workers emigrated, but now there is no place for them except the dole queue or the black economy, which presents us with further problems. An enlightened Government would introduce measures to restore confidence and incentives to encourage investment. We sat today listening for an hour to the Minister for the Environment, who has the primary responsibility in Cabinet for the construction industry. Not one idea or positive suggestion emanated during the course of his speech which would bring any hope to the depressed industry and to the thousands who are unemployed. The industry has sought to bring its plight to the attention of the Minister on numerous occasions. In my own constituency in Galway there are now 14,048 unemployed building workers, an enormous increase on the figures of past years. The construction industry estimate that that figure will increase to 1,700 by June because of closures, the falling off in investment and the many measures which the Government have introduced adding to the depressed state of this industry.

A dangerous trend has emerged in regard to finance through the various agencies for house building. The principal ones were named by the Minister — local authority loans and the new Housing Finance Agency, but the main one is the building societies. The number of loan approvals has taken a fairly dramatic drop. This is very ominous and I should like to draw it to the Minister's attention in the hope that some incentives will be introduced and that some of the disincentives brought in will be dropped from the Finance Bill. I hope new incentives will be introduced to encourage private investment in the building societies. At present the opposite is the case: in 1979 there were 19,509 loan approvals, which was reduced in 1982 to 15,255. That is a very disturbing trend as the number of loan approvals is a fair indication of the level of activity in the house building industry. That steady drop in the number of approvals confirms the crisis which has hit that industry.

Local authority loans have dropped severely. The financial provision made by the Minister shows that. Local authority loans approved in 1980 were 10,381. That figure dropped in 1982 to 7,595. There is the same trend — a drop in the amount of loans, resulting in a drop in the number of houses to be built, resulting in further depression in this industry about which I am speaking, and about which the Government seem to care so little.

A very disturbing change in the availability of finance is to be seen in the trend of loans approved by life assurance companies. I had hoped that the Minister would make more reference to this matter than he did. Life assurance companies were a source of house purchase loans for many years, but their activities in this respect have shown a serious decline over the past number of years.

In 1968-69, 2,286 loans were approved by life assurance companies. In 1972-73, that figure dropped to 1,534. In 1977, it dropped to 814. In 1982, only 280 house loans were approved by life assurance companies. The Minister should request the assurance companies to review urgently their policy and plans in relation to housing investment and encourage them to expand the level of such investment. The trend was towards a drop of about 5,000 in loan approvals between 1981 and 1982. Were it not for the establishment of the Housing Finance Agency which had loan approvals of 1,845, the position would be now a lot worse. There is still a drop of approximately 3,000 in the number of loan approvals. I cannot see how the Minister expects to achieve his target of constructing 30,000 houses in any one year. Funds are not being encouraged into the house building industry due to various Government measures and taxes, all resulting in a massive disincentive to investment to which I referred earlier.

One of the major matters of contention in the local authority areas is the question of introducing charges for services. On 7 July 1983 the Minister issued a circular in which it is stated that it is not possible at this stage to give a precise indication of the grants to be paid to local authorities in lieu of domestic rates and agricultural rates. Will the estimates which were given as an indication in the circular be increased during the remainder of this year? I should like the Minister to clear that up, because the tone of the circular suggested that they were merely indications. It seems to have emerged subsequently that that is it, and there is no more coming.

I should like the Minister to state also what criteria are used by him in determining the amount of the fixed grant. If no fixed formula is adopted, the Minister has complete discretion each year to vary the amount, thus putting a greater onus on local authorities to increase charges to make up the shortfall. I recommend that a base figure should be established now, establishing the fixed grant and each year the Minister may increase the fixed grant in line with inflation. This would give local authorities an incentive to broaden their revenue base, to increase charges for services and for the introduction of new charges. As the revenue thus generated would be available to enable local authorities to meet their full financial commitments, local authorities would be able to plan for the future with some confidence. At present they are staggering half way through each financial year before they know what money will be made available. This is most undesirable and demoralising, and it defeats any attempt to operate on an efficient basis.

The Department of the Environment have been pulverising local authorities in recent years. The removal of domestic rates was approved by Fianna Fáil and Coalition Governments. Their removal was signalled well in advance. Fianna Fáil signalled it in 1973. The Coalition signalled it in 1976. The only difference was that the Coalition proposed to phase out domestic rates and started in that year with a 25 per cent reduction. The intention was to remove them completely over a four year period. Therefore their removal was signalled well in advance.

Despite the time allowed to devise procedures for the removal of domestic rates, in my view a very crude device was used. The Minister stipulated the limit to the amount of rate increase which could be levied. In 1982, the Minister undertook to pay less than the full amount of this domestic rate. There was a shortfall of £12 million in the Coalition's budget in that year. They were defeated in this House on that budget and we went to the country. Subsequently it was implemented by the Fianna Fáil Government.

This shortfall was further aggravated in 1982 when the courts deemed agricultural valuations unconstitutional and farmers withheld agricultural rates, further increasing the financial shortfall in nearly every local authority area. The Minister has not made any allocations to reimburse the local authorities for the shortfall in 1982. It is not good enough to instruct local authorities to increase charges and introduce new charges in May, to generate revenue to make up for a shortfall in 1982 revenue, and further massive shortfalls in 1983. The total shortfall is calculated by the Minister at £65 million.

The Department of the Environment should act as a benign umbrella organisation for the local authorities, setting policy guidelines, assisting co-ordinated policy implementation, and ensuring equitable distribution of State funding of capital works programmes of local authorities and funds in lieu of domestic rates and agricultural rates. Local authority councillors are entitled to know where they stand vis-à-vis the Department They should know with some certainty the system for financing them in future years.

Otherwise — and I say this sincerely — I can see many elected councillors of long standing opting out through sheer frustration. Financial allocations should be known in each local authority area by 1 January each year. I appeal to the Minister to clear up the mess which has been created by stating clearly what the method of financing local authorities will be in future years. It is essential that the fixed grant in lieu of domestic rates and agricultural rates should be increased by a uniform amount in line with inflation each year, with 1982 as the base year. This would enable local communities to identify the proposed new charges as relating directly to the provision of a service from which they will actually benefit.

It is imperative that the decisions on the levying of charges for services should be reserved functions. In other words, the elected members must be the people to decide whether charges will be made and, if so, the amount of such charges. The Minister used some fine, flowing phrases praising local democracy and the need to devolve responsibility to the local authorities. For some years I have been listening to and reading Estimate speeches by Ministers for the Environment. I contributed to some of them myself in the past. All of us must say "mea culpa" for expressing these wishes and not doing enough to implement them. From whatever experience I may have gained in the years which elapsed since I was in the Minister's position I can excuse my own lack of adequate action in this area — I did take some — but although all Ministers down the years indicated that they subscribed to the notion of devolving authority from the Department to local authorities very little devolution of power of any significance has taken place. I urge the Minister to get on with that job immediately. If he waits, time will pass him by. He should grasp the nettle now and do what all local representatives say needs to be done. The Minister, who has the unique distinction of continuing as a member of a local authority while Minister for the Environment — we hope that comes to an end very soon ——

It is coming to an end.

As of when?

As of next Monday.

Therefore, I can still refer to the Minister as Councillor Spring.

I have a few other hats also.

Fianna Fáil will fight with all vigour any effort to give authority to county managers to decide on the local levies or charges. We subscribe fully to the concept of a devolution of power to local councillors in this regard. That carries with it the right to decide whether they introduce charges or not and also to decide the level of the charges they will introduce. We will oppose any attempt to make that an executive function, to give a county manager absolute power to decide on the level of charges. I should like to ask the Minister to clear up the confusion which exists in this area. I do not think he will have an opportunity of replying to this debate for some time but he can deal with that query by way of a statement to the newspapers. He should outline the Government's intentions as contained in the published Bill. I accept that the legislation is expected to come before the Dáil next week, but Fianna Fáil would like to know the Minister's intention before it is debated. If it is the intention of the Minister to make the extent of levies and charges an executive function Fianna Fáil will seek to amend that in the Bill. Inquiries I have made about this matter confirm that that is the Minster's intention. To save me going around in circles I should like to ask the Minister if it is his intention to make it an executive function.

I do not wish to be interrupting.

I am inviting the interruption to save time. Will the Minister clarify the position today?

I will clarify the matter but it is unlikely that we will be concluding this debate today.

The Minister is not giving me the information I require but he must realise that Fianna Fáil will propose amendments to the new Bill if the intention is to make all decisions in regard to the imposition of charges a reserved function. Elected members are answerable to the public. Charges are a form of local taxation and should not be imposed at the will of a bureaucrat who does not have to face the judgment of the electorate. The new Bill, which is expected to be brought before the House next week, is a radical change from the provisions in the City and County Management Acts and Local Government Acts. The type of charges levied in certain local authority areas under those Acts were minor and of little consequence. They caused little pain to those who were obliged to pay them, but the Minister now proposes to introduce a whole new range of local taxation. That is evident in the terms of the Bill which has been published. The public should be made aware of that. Fianna Fáil have publicly stated that they accept the need to broaden the revenue base of local authorities but we do not agree that the power to do so should be left solely in the hands of an official, the county manager, as an executive function.

It is possible that councillors would not be too enamoured at having the power to impose any charges.

That is where the responsibility must lie, with the elected representatives, and they cannot shirk their responsibility in such matters. In former years they struck the general rate and that principle must be upheld. Otherwise, the system will become a sham. Frustration will spread and there will not be any incentive to outstanding citizens to offer themselves for election to local authorities. It is the wish of my party that local government is made as meaningful as possible and that leading members in local communities are encouraged to offer themselves for election to local authorities. I can see a malaise creeping in out of frustration. People will not be encouraged to go forward for election because of the lack of authority entrusted to local bodies and the manner in which they are by-passed by the Department and officials at local level. In fact, many councillors are having second thoughts because of the role they play. We are now being asked to deal with a major piece of legislation as far as local authorities are concerned and members of those bodies will have to face up to their responsibilities and decide if these charges should apply in their area. If county managers try to impose these charges there will be a lot of dissent.

I should like to ask the Minister to outline to the House his proposals for improving the auditing and budgeting systems of local authorities. The Minister should tell the House if the revised estimating procedures were introduced to enable local authorities to protect in programme form their expenditure and income and the results which the expenditure was intended to achieve for a period of five years ahead. If that was done, in future elected Members would be able to take a forward look at what their programmes will achieve and at the levels of expenditure and income likely to be needed to sustain their programmes as well as reviewing annually the rate of progress towards the satisfaction of local needs. If elected members were able to plan ahead in this way it would require a much greater devolution of responsibility and decision-making to local authorities. The Minister should tell the House if he supports this forward planning proposal and whether he intends to act on the question of the devolution of power to members.

I am in favour of all types of planning.

Debate adjourned.
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