Dáil Éireann debate -
Thursday, 26 Feb 2004

Vol. 581 No. 1

Adjournment Debate.

Tourism Promotion.

Mr. Connolly

I thank the Ceann Comhairle for selecting this matter for debate on the Adjournment and I thank the Minister for Arts, Sport and Tourism for being present for the debate.

I wish to discuss the overall spending on tourism promotion, nationally and in the regions. I am concerned at the share of funding which comes to counties Cavan and Monaghan. How is spending on tourism promotion targeted at specific areas of the country? Is funding allocated on a one-off basis or does it simply follow successful tourism areas on the coastline?

Before a region can attract large numbers of tourists, it must have a tourism infrastructure and projects in place. The national development plan states, "The tourism product development scheme will have a significant impact on regional programmes for the BMW region."

According to operational guidelines produced by Bord Fáilte for the National Development Plan 2002-2006, support will be available at a maximum rate of 40% in the Border, midlands and west region subject to a maximum of €644,000. Projects must be capable of attracting 100,000 visitors per annum, a stipulation that is almost unachievable in a region that has little or no tourism. How is a region to get to 100,000 visitors without a tourism infrastructure or tradition? It is impossible. Since this is a condition of the application process, applicants from Monaghan and Cavan are precluded and the region is, therefore, prohibited from tapping into an industry that is worth €5 billion annually.

Applications were invited from counties Monaghan and Cavan for projects categorised as special interest projects in September 2002. Not surprisingly, no applications from Monaghan were considered. We were not advanced enough at that time even to apply. We would now like to apply but applications are not being considered because the decisions on the 2002 applications have not been reached yet. It has taken 18 months to process those applications.

We should be promoting areas of Monaghan such as Kavanagh country, the Sliabh Beagh area, Lough Muckno and the Ballybay wetlands. These are all excellent projects although I do not envisage any of them attracting 100,000 visitors. More consideration should be given to such projects.

The Cavan-Monaghan area has much natural attraction but lacks tourism infrastructure. Bord Fáilte statistics for 2002 show County Monaghan receiving €10 million from foreign direct investment and total tourism budget of €5.3 million. We are very far down the pecking order. Will the Department consider appointing a special adviser to areas where tourism is undeveloped? The application process appears to be designed to put people off applying. Simple applications are made complicated by the application process which is far too daunting for most places.

Must we spend millions promoting the Blarney Stone, Killarney, the Cliffs of Moher, Mullaghmore in Sligo or County Donegal? Do we need to spend money promoting such places or are people attracted to them automatically? It is the small inland counties that suffer greatly and do not gain from the bonanza. Tourism is an industry that employs as many as 150,000 people. When people arrive, should we simply give them a road map of our coastline? I believe that is the way we are heading. We in Counties Cavan and Monaghan observe what is happening. We heard about a GAA club in Dublin that was asked to provide a set of plans to be assured of a payment of €200,000 for the development.

Two clubs, of which the Minister for Finance is a member, received €450,000. That is more than what Counties Monaghan and Carlow combined received and is the same as what Counties Laois and Leitrim have received. We heard that the Minister's constituency, Kerry South, received more than the combined counties of Carlow, Laois, Leitrim, Longford, Monaghan, Sligo and Westmeath. That is very frustrating. A GAA club in Letterkenny, County Donegal, received two cheques in two years, one for €500,000 and the other for €450,000. I believe counties like ours deserve a lift.

Minister for Arts, Sport and Tourism (Mr. O’Donoghue)

I thank Deputy Connolly for his comments on the issue of tourism promotion and regional spread.

In a very tight budgetary situation, I have secured the largest ever tourism services budget for my Department in 2004, amounting to almost €115 million. This includes the largest ever provision for the tourism marketing fund of €31.5 million, which by the end of 2004, will bring the national development plan investment in tourism marketing to almost €100 million. This level of Exchequer spending in tourism services, and particularly in tourism marketing and promotion, is both a reflection of the importance attached to marketing as a driver of growth and a strong endorsement of the performance of the two tourism agencies in delivering value for this substantial Exchequer investment.

Using the terminology of the recent report of the tourism policy review group, marketing and promotion are key success drivers for Irish tourism. The marketing programmes of recent years have proven very successful in enhancing Ireland's appeal as a top class tourism destination. They also maximise the business opportunities for the tourism industry in all our key consumer markets, both domestic and international.

The year 2003 proved to be yet another tough and testing year for tourism, both globally and nationally. The latest CSO figures available, for January to September 2003, show growth in visitor numbers of 4% over the same period last year. If this level of growth is maintained in the final quarter, the tourism agencies will have succeeded in delivering on their highly ambitious targets for the year, and it is worth emphasising that these targets were set before the war in Iraq and SARS emerged as critical setbacks for the tourism sector globally.

Ireland performed particularly well in the US market last year against stiff international competition. While final year figures are not yet available, Tourism Ireland is estimating a 6% increase in US visitor numbers to the Republic of Ireland last year despite the impact of the war, increased threats of terrorism and SARS. This compares to a 1% increase in the number of Americans visiting Europe generally and a decrease of 8% experienced by our near neighbours in the United Kingdom.

A key element of this story has been the restoration of key access routes and capacity from the States in 2003, all of which have been vigorously promoted in tandem with the airlines to ensure maximum bang for everyone's buck.

Continental Europe, a market which has remained stagnant for a number of years, is also looking positive with visitor numbers up in the order of 8%. Having participated on a number of promotional visits to Europe last year, this performance comes as little surprise to me having seen at first hand the highly focused approach by Tourism Ireland and the industry in these markets.

It is clear that this performance has been hard won, with enormous pressure being placed on the industry's bottom line. The challenge will be to maintain competitiveness in a way that is economically sustainable for the sector. While there is nothing new in this, the prevailing economic conditions mean that it is a substantially more difficult balance to strike.

It is also evident that this performance has not been shared equally, either on a regional or a sectoral basis, and I am very conscious of growing concerns in the regional distribution of tourism growth over recent years. It should be recognised that all regions and sectors continue to experience growth — the issue relates to the growing disparity in the rate of growth between the regions.

There are various reasons for this. A major one is the growing international trend towards shorter but more frequent holidays. This trend favours the easily accessible urban centres, a factor on which Dublin and more recently Cork city have capitalised to the envy of many other cities around Europe. This trend is particularly noticeable among British visitors. Unfortunately, this type of holiday runs counter to the longer "touring" holiday which traditionally favoured the regions. Another factor is the significant fall-off in the US market since 2001 which is only now returning to the same levels as 2000. US visitors traditionally stay longer and travel more extensively than other overseas visitors. They also tend to use serviced accommodation and travel on organised tours, all of which generates more revenue for the west.

In this context, the development of good access, particularly air access, is a key to strengthening the competitive position of the regions. Both tourism agencies recognise this issue and are investing significant time and resources in encouraging good air links. Already, Knock and Galway Airports are reaping the rewards of their efforts to promote direct access to the west, particularly from Britain. Tourism Ireland has also taken a strategic decision to target significant promotional resources at family touring holidays, particularly from Britain. This in itself should encourage greater regional business given that families tend to favour the rural holiday experience which the regions offer in great abundance. Tourism Ireland is also investing significantly in the US market which is showing encouraging signs of a return to growth. The coach tour business will continue to feature strongly in its promotions and it will also be encouraging the growing number of independent travellers from the US to spend longer and travel more extensively on the island of Ireland.

For its part, Fáilte Ireland is channelling €5 million directly into the regional tourism companies to strengthen and enhance their operational and marketing capabilities this year. Initiatives such as the festivals and cultural events initiative will continue to favour the lesser developed regions, and the product development scheme, with its investment in capital infrastructure, will continue to bolster the product range of those regions which have under-performed.

In more general terms, the key to Ireland's success at national and regional level has been our ability to consistently match the product with the promise. Our marketing campaigns present Ireland's key selling points — people, place and pace — in a highly sophisticated manner to a highly discerning audience. The destination and product marketing campaigns consistently present a strong rural holiday experience to the potential visitor and this message is then reinforced in the many international consumer and trade platforms in which the tourism agencies participate in our key markets overseas. Without doubt, Ireland's success to date has been based on the holiday experience on the ground which matches, and in many cases exceeds, the expectations generated by the marketing message. These expectations are usually very high. This, in marketing terminology, is called customer satisfaction. Ireland and the regions on the western seaboard deliver on this consistently.

Resting on its laurels is not something any successful business engages in for too long. For the two tourism agencies and the industry, the marketing programmes for 2004 will build on the momentum generated in 2003. With a comprehensive and highly targeted suite of marketing activities, Tourism Ireland and Fáilte Ireland are confident that they can meet the very ambitious target of 4% growth in visitor numbers again in 2004. To deliver this business, the agencies and the industry will need to maintain their focus on the job at hand and continue delivering a memorable and value for money holiday.

All in all, 2004 promises to be an exciting and, I hope, rewarding year for tourism. With the help of the substantial Government investment in the sector, I am confident that the tourism agencies and the industry will make the most of the opportunities and challenges that lie ahead and continue the good work. I sincerely hope that the Patrick Kavanagh centenary is a major success as well.

Health Board Services.

Mr. Rabbitte

I am grateful for the opportunity to raise with the Minister of State at the Department of Health and Children the reason no decision has been announced or works initiated to develop Millbrook Lawns health centre, following substantial damage by a fire in June 1999. Intolerable disruption has been endured by staff for almost five years and the hugely populous catchment area surrounding Millbrook Lawns health centre has suffered greatly as a result. The damage done in 1999 was extensive. Nine rooms were destroyed as well as a large waiting area and a storage room. The nursing service, for example, lost six rooms, which included three clinic rooms, one dressing room, one interview room and one baby changing room. The temporary arrangements put in place leave working conditions extremely difficult and it is acutely stressful for citizens trying to access this service.

Almost five years later, it is almost beyond belief that the centre remains in semi-derelict condition and that only minimal surface repairs were carried out during the years of the boom. Most recently, with colleagues, I met the Minister of State at the Department of Health and Children, Deputy Callely, on 22 December 2003 and we pressed on him and his relevant officials the urgency attached to this project. Whereas the Minister was helpful, I am bound to say I came away from that meeting bewildered at the lack of clarity concerning why no decision was made over four and a half years.

The Minister may wish to comment on what seems to be a very tangled history. It is unacceptable that those of my constituents who use Millbrook Lawns health centre have been left in a limbo for almost five years. As I have asked recently in the House, how can the Government justify a 100% grant of €14.9 million to an equestrian centre at Punchestown without following the normal procedures when a decision on a desperately needed health centre at Tallaght must wait five years? This puzzle is aggravated when we learn that the cost of refurbishing Millbrook Lawns would be €1 million.

For five years, there has been talk of using the site to build a new primary health care facility which would, perhaps, be like the Mary Mercer centre at Jobstown. That centre is acknowledged to be a splendid facility and was built for £1.9 million in 1999. Health authority officials claim a similar rebuilding project at Millbrook Lawns would cost between €8 million and €10 million. I do not know whether that reflects escalating building costs or if the estimates for Millbrook Lawns have been calculated on the back of an envelope.

Given the strategic considerations for such a multidisciplinary primary care centre and the supposed dedication of the Government to the concept, the best use of the site would involve its provision. My fear is that the prospect of a new centre has been used over five years as an excuse to do nothing. Having said that, the imperative is to bring to an end the indefensible delay which has been allowed to develop. The citizens in the surrounding area of Millbrook Lawns and the staff working therein have been treated badly. We need a decision now and its speediest possible implementation. One cannot have confidence in a system which permits this neglect. Will the Minister issue the necessary directions to ensure the same delay we have seen in decision-making thus far does not accompany the refurbishment or rebuilding?

Minister of State at the Department of Community, Rural and Gaeltacht Affairs (Mr. N. Ahern)

I can only respond as outlined in the prepared answer. The prioritisation and provision of health care facilities to meet the needs of local communities within its functional area is a matter for the relevant health board. In the case of Millbrook Lawns, this responsibility rests with the Eastern Regional Health Authority, or ERHA. The Minister for Health and Children, Deputy Martin, is acutely aware of the key role health centres play in the delivery of a wide range of services to local populations. For many, the local health centre is the first point of contact with the health services. It is important that facilities are customer-friendly, modern, well-equipped and accessible. As the Deputy said, much energy is being directed toward the establishment of primary care units.

The ERHA has advised that Millbrook Lawns health centre is a facility which provides a wide range of health services to the local area. These include medical, public health nursing, social work services, speech and language therapy, dental services, community welfare, addiction services and administration. Pre-school services are also provided at the centre. The authority is concerned to ensure that conditions in the existing heath centre are maintained to the highest standard possible to ensure the effective delivery of services.

A number of improvements have been made to the centre since 1999, including the internal and external painting of the premises. Additional offices have been provided for use by community welfare services and Barnados. The fire alarm system has been upgraded and the ceiling has been substantially improved. The speech and language therapy service has been relocated to a different area within the centre. Essential health and safety improvements have been made and improvements to the electrical system have also been carried out. A health and safety audit conducted in November 2002 noted significant improvements since the previous inspection. Further recommendations from this recent audit are being actively addressed.

The authority is aware that further redevelopment of the centre is a capital priority. Accordingly, having considered various options for such redevelopment, the authority has concluded that a proposal involving reinstatement of the burnt-down section and upgrading of the existing building is the preferred option. This will cost an estimated €960,000. The authority has signalled that this work will greatly improve service delivery at the centre and conditions for staff and the public.

The redevelopment of the centre is a priority capital project for the South West Area Board and the ERHA. The Minister for Health and Children is aware of the priority afforded the project by the ERHA. Following a meeting in late December 2003 involving the Department, the ERHA, he South Western Area Heath Board and local representatives, including Deputy Rabbitte, at which the ERHA and the board outlined the preferred option for developing Millbrook Lawns, details of the revised scheme were submitted to the Department of Health and Children. All capital requirements for the health boards, including the ERHA, are funded under the national development plan, or NDP.

The Department of Health and Children is reviewing, from a national perspective, the NDP for each health board in light of the outturn position for 2003. This process encompasses providing for existing capital contractual commitments and, where possible, the planning or construction of new projects nationally in 2004 and beyond. It is in this context that capital developments for the ERHA, including the recent proposal on Millbrook Lawns health centre, are being considered.

The Department fully appreciates the importance of progressing this development and will continue to work closely with the authority to prioritise overall capital needs in line with the funding resources available under the NDP. I acknowledge what the Deputy has said. If any section loses six rooms, it will have a significant detrimental effect on local services. I can only promise to speak personally to the Minister for Health and Children early next week.

Hospital Services.

Mr. Crawford

I thank the office of the Ceann Comhairle for allowing me to raise this issue once again. I raise it as a result of a phone call from a distraught lady who called me late yesterday evening. Once again, the issue involves the lack of management at Cavan General Hospital and the lack of effort by the Minister to put anything in place.

The aged brother of the lady in question has been in hospital for a few days and needs urgent surgery. I am advised that he could have had the surgery at Monaghan General Hospital but for the fact that insufficient anaesthetic cover was available. I am also advised that, while a bed was available at Our Lady of Lourdes Hospital, Drogheda, where someone was in a position to operate, an ambulance could not be found to bring him there. The Minister of State must agree that, if this were not so serious, one would have to treat it as a joke. He would only have to listen to that lady last night, who was absolutely distraught, to wonder where things have gone wrong.

I hope that, by now, the man has been dealt with. I tried to find more information this morning and this afternoon, but I did not get anywhere. This case is just one example of the ongoing problems of mismanagement within Cavan-Monaghan hospital services which are causing serious distress. Speaking to someone a short time ago, I learned of another case in which a young man with appendicitis who required urgent surgery could have been dealt with in Monaghan General Hospital had an anaesthetist been available. He had to be rushed to Cavan which was traumatic for him and his family. The Minister of State will be aware of media coverage of overcrowding and other problems at Cavan General Hospital.

It is high time the Minister and health board management got together to ensure that at least three senior registrars are put in place at Monaghan General Hospital to cover the needs of its catchment area. There should be co-ordination between Cavan and Monaghan hospitals to ensure that if cover was needed in Monaghan it could be transferred rather than transferring patients.

Prior to 1970 Monaghan General Hospital was under county council control and it provided a service to all its people. There was a manager in that hospital who was answerable. Now there are CEOs, deputy CEOs, group managers, administrators and so on, and it is literally impossible to find out who is responsible for anything.

Last night a young boy went into hospital with a broken arm as he needed help. I take it he was dealt with in the best possible way the staff were allowed deal with him. There was no bed in Drogheda hospital where he was supposed to be dealt with. Where does one go? His family was distraught and that is the reason I got the indirect phone call.

It is time the Bonner proposals were put in place as a minimum and a start. The Minister appointed Mr. Kevin Bonner to draw up proposals. It is time the Minister, management and consultants got off their individual high horses and treated people and patients first. I know of another case where a young footballer was taken by ambulance to Drogheda hospital. Obviously, he was not allowed go by ambulance to Monaghan General Hospital because officially it is off call, although the hospital is doing great work and I pay tribute to the staff and those working there. Once people know how to get in, they get in and are well looked after. This young man went to Drogheda hospital but it had no time to deal with him. He was looked at quickly and sent home. Fortunately, his parents knew how to get him into a hospital in Northern Ireland where he spent three days in intensive care. That is a crisis which can and must be dealt with.

Mr. N. Ahern

On behalf of my colleague the Minister for Health and Children, Deputy Martin, I welcome the opportunity to respond to the Deputy with regard to anaesthetic services at Monaghan General Hospital.

Responsibility for the provision of services at Monaghan General Hospital rests with the North Eastern Health Board. It is a matter for the board to determine the nature and level of service provision at the hospital, consistent with the board's commitment to the provision of a high quality, efficient and cost effective service across the north eastern region.

The decision to take Monaghan Hospital off call on 2 July 2002 was taken by the North Eastern Health Board following advice from the consultants at Monaghan and the board's medical adviser that the hospital was unable to provide a safe, viable and sustainable 24 hour anaesthetic service due to the non-availability of non-consultant hospital doctors in anaesthesia.

This situation arose because the conditions for the training of non-consultant hospital doctors as set down by the College of Anaesthetists were not being met at Monaghan Hospital. Monaghan hospital, like other hospitals, is heavily dependent on NCHDs and, accordingly, posts occupied by such doctors must meet the strict accreditation requirements of the various colleges for training purposes, in this case, the College of Anaesthetists.

The executive of the board asked the College of Anaesthetists to intervene in an effort to ensure the prompt restoration of a safe and sustainable service at Monaghan hospital. A proposal was developed based on a joint Cavan-Monaghan hospital NCHD rota, which would guarantee that anaesthetic services would resume at Monaghan in a different but sustainable configuration. I have been advised by the health board that agreement on this has not yet been reached with consultants at Monaghan. If accepted, it would ensure safe, viable and sustainable services in the interest of patient care.

Arising from the retirement of a permanent consultant anaesthetist at Monaghan hospital, the Department of Health and Children issued approval on 2 April 2002 for the replacement of the post with an increase in the number of sessions for this post from six to 11, all to be held at Monaghan. Following the recruitment process, a candidate has been selected and will commence later this year. The North Eastern Health Board has advised that there are currently three full-time consultant anaesthetists employed at the hospital. This level of consultant anaesthetic cover is comparable with that available at similar sized hospitals.

Mr. Kevin Bonner, management consultant and former Secretary General of the then Department of Enterprise and Employment, was commissioned to advise and work with the board to facilitate the resolution of outstanding issues pertaining to the provision of services at Monaghan hospital.

Mr. Crawford

Where is he?

Mr. N. Ahern

On 25 July 2003 the Minister for Health and Children, Deputy Martin, published the report of Mr. Kevin Bonner and indicated his acceptance of the main recommendation, that is, that Monaghan General Hospital should continue to play a vital role in the delivery of acute hospital services to the local community within the Cavan-Monaghan hospital group. The Minister also accepted that additional services be developed at the hospital to the benefit of the local community. In particular, the Minister welcomed the proposals in the report aimed at strengthening the management capacity of the hospital within the Cavan-Monaghan hospital group. The central involvement of consultant staff within this new structure is a very significant development which should enhance the ability of the group to deliver high quality services.

Mr. Bonner has recognised in his report that the pattern of acute hospital service delivery is changing worldwide and that Monaghan hospital's best guarantee for the future is to participate in and accept those changes which will ensure its future viability. In accordance with the recommendations in the Bonner report, the Minister made additional capital funding available to the North Eastern Health Board to address urgent capital needs such as equipment replacement, refurbishment, fire precaution and health and safety measures.

The Minister is assured by the North Eastern Health Board of its continuing commitment to the future provision and development of services at Monaghan hospital. The Minister considers it essential that all parties involved play their part to resolve the present difficulties and to ensure the future delivery of services at the hospital as an integral part of the existing Cavan-Monaghan hospital group.

Local Authority Funding.

Mr. Andrews

I thank the Office of the Ceann Comhairle for the opportunity to raise this important issue for local government and local communities.

Section 66 of the Local Government Act 2001 gives local authorities a right to provide loans, guarantees and financial aid. Clearly, it was the intention of the Oireachtas that such loans, guarantees and financial aid should be for the benefit of local communities to promote social inclusion, environmental, recreational and cultural and community activities. Therefore, it was disappointing to learn that the Department of Finance has directed local authorities to limit the amount they can either guarantee or loan to a sum of €200 million. That figure is far too low and is set because of the Stability and Growth Pact.

Traditionally, local authorities were able to guarantee loans to community groups, sports organisations and other deserving bodies within their functional area but can no longer do that in many cases. I will give three examples of this problem manifesting itself in my constituency. Avoca hockey club is forced to obtain guarantees from its members, in many cases, non-playing members who have only a benevolent interest in the club and in giving these personal guarantees. The members who give the guarantees do so on behalf of the community. It was the clear intention of the Oireachtas that local authorities should take that role rather than private citizens.

Ballybrack boys' football club has a mere licence in the land its occupies and it wishes to obtain a loan from the bank to match what it has applied for from the sports capital programme. Naturally, the club has no assets and it sought a guarantee from the county council, but the council was unable to provide the guarantee to help with its loan application. Loughlinstown leisure centre is seeking to build a swimming pool. Under the new restrictions, it is not within the gift of the local authority to help the centre with a loan, which would be supported by the Department of Arts, Sport and Tourism through the sports council programme.

The original thinking behind the limitation, which is of recent vintage, was that the Stability and Growth Pact limited our public sector borrowing capacity. However, as the Government side of the House often points out, we have one of the lowest debt-GDP ratios anywhere in the world. It does not make sense that we should damage this very important tool of local government as we are well within our obligations under the Stability and Growth Pact. As the Minister is aware, the pact has been relaxed in the past few weeks so that borrowing can increase.

If this situation is not remedied, I would not be surprised to find county councillors bringing section 140 motions before councils to force county managers to use their reserve functions under the section, either to give loans or guarantees. The solution is either for a directive to issue from the Department of Finance to the effect that there is no longer a maximum local authority borrowing figure or that the figure should be increased from €200 million. This would enable the support of the worthy programmes which have up to now been funded in this manner, whether through community groups, sports organisations or artistic and cultural groups, and the investments can be supported by the local authorities, as was the intention of the Oireachtas a mere three years ago. I ask the Minister to consider this.

Mr. N. Ahern

The Local Government Act 1991 first introduced broad powers of general competence for local authorities to act in the interests of the local community, thereby relaxing what was known as the ultra vires rule which restricted the powers of local authorities in the functions they could perform. More recently, the Local Government Act 2001, which consolidated the law on local government, gave local authorities a wide mandate to become involved at various levels in the promotion of community interests. Specifically, section 67 of the Act confers power on a local authority to, in the words of the Act, “take such measures, engage in such activities or do such things as it considers necessary or desirable to promote the interests of the local community” in relation to certain specified matters. These specified matters, which are set out in the Act, include sports, games and general recreational and leisure activities.

The legislation allows local authorities to provide assistance in money or in kind to promote such activities in the interest of the local community and, under section 66 of the Act, this assistance may take various forms, including the giving of guarantees. It is entirely at the discretion of a local authority as to whether to provide guarantees and the level of any such guarantees. Decisions in this regard are, under the legislation, a reserved function. The giving of any such guarantee does not therefore require the approval of any Minister of Government. It is only where a local authority intends to borrow money for any purpose — for example, the provision of a grant to a local community project — that approval of central Government is required.

In the case of borrowing, under section 106 of the Local Government Act 2001, sanction must be obtained from "the appropriate Minister", the Minister with the greatest interest in the matter giving rise to the borrowing. The need for such a requirement in the case of borrowing is clear, having regard to national objectives of complying with requirements on the general government sector, which includes local government, under the Stability and Growth Pact which the Deputy mentioned.

While local authorities have complete discretion in the granting of guarantees to community projects, they have over the years been advised by the Department of the Environment, Heritage and Local Government of their general responsibilities when considering sponsoring or co-funding, or giving guarantees to capital projects. Although it is accepted that local authorities have a key role in regard to local development initiatives, the involvement of local authorities in such projects must be carefully considered from a financial viewpoint over the longer term. As such, local authorities have been advised by the Department that, as a general rule, they should only become involved in projects where they are satisfied that potential liabilities or ongoing operational costs would not be such as to seriously impact on the financial position of local authorities.

Furthermore, local authorities have been advised that where they guarantee loans or underwrite losses on such projects, they should seriously consider the validity of projects in advance of any involvement so as to satisfy themselves of the feasibility of the projects and ensure that potential liabilities arising from such involvement are fully appraised and quantified. The Deputy will agree that such advice is soundly based and, indeed, would generally be appropriate to all development projects, not just those in the local government sector.

The giving of guarantees for loans to community groups and sports clubs is entirely a matter for decision by the elected members of local authorities and restrictions have not been placed on the ability of local authorities to provide such guarantees. Perhaps the case of which the Deputy speaks is in the context of loans rather than guarantees, a matter which other Members have raised. While I undertake to bring this to the attention of the Minister for the Environment, Heritage and Local Government, Deputy Cullen, I will perhaps also bring it to the attention of the Minister for Finance to ascertain if anything can be done in this regard.

The Dáil adjourned at 5.25 p.m. until 2.30 p.m. on Tuesday, 2 March 2004.