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Dáil Éireann debate -
Tuesday, 23 Jun 1998

Vol. 492 No. 7

Ceisteanna — Questions. - Government Programme.

Ruairí Quinn

Question:

13 Mr. Quinn asked the Taoiseach the commitments, if any, set out in An Action Programme for the Millennium which have been implemented in full; the commitments, if any, implemented in part; the commitments, if any, initiated; the commitments, if any, yet to be initiated and implemented by his Department to date; and if he will make a statement on the matter. [14945/98]

This question has been tabled to all Ministers in written form. Deputy Quinn is well aware of the broad policies we put to the people at the time of the election which were to cut crime, drugs, taxes and unemployment, to restore peace and to improve the environment. I believe we have made substantial progress on all these issues in our first year, that we will make further substantial progress in the years ahead and that we will deliver on the vast majority of our promises in the life of the Government.

The lasting effects of the Government's crime policies must be assessed over the long term. In the short term, however, the signs are that its policies are succeeding, as indicated by the trend in the Garda crime statistics which show a decrease in serious offences in 1997 by approximately 10 per cent compared to 1996. As regards the targeting of certain criminal activity, the Criminal Justice Bill, 1997, which is before the House, is practical evidence of the Government's policy on serious crime, particularly, but not exclusively, on drug trafficking. The Bill contains a series of strong measures as a response to those who inflict such harm in our community.

A programme of accelerated recruitment is under way with the aim of meeting a target of 12,000 gardaí by 2002. The Court Services Act, 1998, which came into force in April, provides for an independent court agency. The process of establishing the prison service on an agency basis and a fundamental review of the probation and welfare service are also under way. In addition, the implementation of the recommendations of an SMI review of the Garda Síochána has also started. On a practical level, the Garda authorities are pursuing an aggressive policy to bring drug traffickers before the courts. Considerable success has been achieved under Operations Dóchas, Mainstreet and Cleanstreet with significant seizures of illegal drugs and arrests of pushers. The Criminal Assets Bureau is also effectively targeting major drug barons.

The 1998 budget made a significant start on the income tax commitments contained in the programme for Government. On a full year basis, £517 million was allocated to personal income tax and PRSI reductions. These changes include significant increases in personal allowances, a 2 per cent reduction in standard and higher income tax rates, thus reducing the marginal tax rate for more than one million taxpayers, and the widening of standard rate tax bands. In addition, the allowances were increased by 8.6 per cent while the PRSI allowance was raised from £80 to £100 per week. The income threshold for levies increased from £10,250 to £10,750 per annum.

In the budget, the Minister for Finance confirmed the Government's intention to introduce a 12.5 per cent rate of corporation tax for trading profits for all sectors of the economy with a 25 per cent rate for passive and non-trading profits. This will be phased in over the coming years to eventually replace the current regime. Discussions are at an advanced stage with the EU Commission on the timetable for phasing in the new regime. However, the proposed new rates of corporation tax are not an issue in these discussions. In the budget, the standard rate of corporation tax was reduced from 36 per cent to 32 per cent while the rate on the first £50,000 profits has been reduced from 28 per cent to 25 per cent. Further reductions in corporation tax will be made in the coming years. While these reductions will benefit business, they will also help to maintain competitiveness and to promote investment and employment.

Since the Government was formed, about 55,000 more people are at work and a substantial number of the new investments driving this growth have been outside the greater Dublin area. The live register has fallen by about 31,000 and this represents a decrease of 12 per cent.

In the space of one year, we have fulfilled in a way that few would have felt possible most of the immediate tasks we set ourselves in relation to Northern Ireland: an unequivocal restoration of the IRA ceasefire, inclusive and substantive negotiations and a political settlement which has been negotiated between all the parties present and endorsed by an emphatic majority of the people, North and South. Our task ahead is to implement the British-Irish Agreement in all its aspects, to set up the agreed structures and arrangements over the next few months and put them on a secure footing.

A consultative process on the establishment of the National Environment Partnership Forum has been concluded and the forum will be established later this summer. The development of our water and sewerage services infrastructure will also move considerably further ahead in 1998 with investment of some £185 million. A green network of Government Departments has been established and will have a key role in environmental integration and the development of an eco-auditing system. Steps already taken on greening the tax system will be developed further in the years ahead. In the area of climate change, negotiations on EU burden sharing have been successfully concluded with a greenhouse gas growth limitation target of 13 per cent on 1990 levels by 2008-12 being agreed for Ireland. This year will see record investment of £288 million in the national road network and the investment needs for the next 20 years will be set out in a national roads needs study to be completed shortly. Investment in non-national roads also hit a record this year with Exchequer investment of almost £200 million. A policy on the establishment of public-private partnerships is also being developed.

The Government has a wide range of policies in the Departments of Agriculture and Food, Arts, Heritage, Gaeltacht and the Islands, Defence, Environment and Local Government, Education and Science, Enterprise, Trade and Employment, Finance, Foreign Affairs, Health and Children, Justice, Equality and Law Reform, Marine and Natural Resources, Public Enterprise, Social, Community and Family Affairs, my own Department and Tourism, Sport and Recreation. The Deputy is aware that the Government produced a comprehensive programme for Government for the millennium and this is underpinned by the election manifestos of both parties in Government.

There is nothing for education. Education has been left out.

This is "the keep Deputy Harney sweet" list.

I thank the Taoiseach for that brief reply. Can I take it that is the reply which will be sent to all written questions or is it the Taoiseach's own reply?

It is my own.

Will the Taoiseach agree that the concentration on matters concerning the Department of Justice, Equality and Law Reform confirms the suspicion that many of us had that not only has he taken over responsibility for pay negotiations but also for the operations of the Department of Justice, Equality and Law Reform? Has the Government received a letter from the European Commission confirming that it accepts the two corporation tax rates — 12.5 per cent and 25 per cent? Is that dispute beyond all difficulty? Has the Commission signed up and written to the Ministers for Enterprise, Trade and Employment and Finance stating that the proposed new rates are acceptable?

I cannot say whether the formal letters have been issued but the negotiations are fairly well completed. As of a few weeks ago the only outstanding issues concerned the transition period — which and how many companies on a quota basis would be allowed in as we phase out the rates. There was still some discussion on this issue. I think the quota figures are finalised but if not they are near to being so. The other matters are finalised.

Can I take it that the areas of dispute which may remain concern the process of transition? Am I correct that the Commission has accepted in writing that the position after 2005 is that the 10 per cent rate would increase to 12.5 per cent and that there would be a 25 per cent rate for passive profits?

I do not know if the formal letters have been issued from the relevant Commissioner but the negotiations are at that level. The transition period may have to be slightly earlier than 2005 but it cannot be later than that date.

Will the Taoiseach confirm that many of the commitments he has announced in his reply were already well on the way to being introduced under the previous Government? Does he recall that when the last Government announced the setting up of a courts commission and a prisons authority he stated that taking half the Department away was a fine way to show confidence in a Minister? Will he confirm that he is satisfied that the way to proceed is to have a separate courts service and prisons authority? Will he have to good grace to acknowledge that he has changed his mind?

The Taoiseach changes his mind about many things.

The Deputy is hopping some balls for me from that side of the House as I am sure I also did. The policies we put before the people last year were: to cut crime, particularly continuing the work on the drugs issue; to cut taxes and unemployment; to restore peace and improve the environment. Work was ongoing on most of those issues, but like any Government, this Government has introduced its own initiatives. I do not attempt to take credit for the good work of previous Ministers and I congratulate the Deputy on her good work as Minister for Justice. I would not try to undermine any of that good work. I am sure the Deputy will congratulate this Government for taking up some of her initiatives and bringing them to fruition.

Does the Taoiseach agree he has reneged on the commitment in his manifesto to permit schools to keep teachers freed up by falling pupil numbers? Does he agree some of the most disadvantaged schools in the country, which are located in his constituency of Dublin Central, are losing teachers because he has reneged on a firm commitment made in his manifesto?

I do not accept that.

It is a reality.

There has been an increase of 11 per cent in primary education——

Does the Taoiseach want me to name the schools? They are in his constituency.

There were 306 posts lost last year and 445 the previous year under the Government of which the Deputy was a member. He is bluffing.

Why did the Taoiseach renege on the commitment he gave in his manifesto?

We must move on to the next question.

I do not want to turn this into a parochial constituency matter. I refer Deputy Bruton to a Seanad debate last week during which matters concerning those schools were raised. He will be astonished to note how many teaching posts are in that constituency. Unfortunately, the numbers in some of those schools are decreasing. The Seanad record gives the facts.

The Taoiseach gave a commitment that they would not lose teachers.

If a school loses pupils it will lose teachers. Teachers cannot teach empty classes.

(Interruptions.)

Deputy Bruton should table a separate question on that matter. I call Question No. 14.

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