Dáil Éireann debate -
Tuesday, 22 Feb 2005

Vol. 598 No. 2

Adjournment Debate.

Social Welfare Benefits.

Mr. Durkan

I thank the Ceann Comhairle for affording me the opportunity to raise this issue. It has been a cause of concern to me for some considerable time, as I am sure it has for the Minister for Social and Family Affairs.

It relates to the application of the new rules, as annunciated in last year's budget, which imposed restrictions in regard to amount and eligibility in terms of the rent allowance scheme, thereby affecting many who would previously have qualified. In the row between the Departments of Social and Family Affairs and the Environment, Heritage and Local Government as to where responsibility should lie in the provision of housing, as evidenced by exchanges in this House, it is the applicants for this scheme who have suffered.

Typical of the current situation is that the applicant is told to seek a house for which the rent is low. A house for which the rent is €400 per month in my constituency is one which is not fit for habitation. There is no option other than an unfit house for that type of rent. Moreover, if an applicant finds a house that is rentable and supportable in the view of the local health board, he or she is forced to undergo a variety of bureaucratic turns and twists. If the applicant survives this, he or she will be exhausted and in some cases homeless.

I hope the Minister of State, Deputy Browne, is fully aware of the seriousness of this situation. I raise this issue in the knowledge that the Minister for Social and Family Affairs, Deputy Brennan, has indicated in the past that he is fair and caring. A sufferer of Crohn's disease in my constituency, whose PPSN is 6857327Q, has been run around the system for the past four months. This person was refused the rent allowance and told to return in six months. It is disgraceful that his needs have not been addressed. Another constituent, whose PPSN is 6788230R, has spent most of the past 12 months attempting to apply for rent allowance. On each occasion, some excuse has been given as to why she is not entitled to avail of the scheme. This person has been chased from pillar to post by the antics of the Department of Social and Family Affairs, through the local health board.

I do not wish to denigrate any Department. However, the current situation is intolerable and I hope the Minister of State will do something to rectify this. A by-election will take place shortly in my constituency and I can ill-afford to be here on this errand. However, I have tried every other approach. I have heard the comments of social welfare officers to the effect that it is of no avail to bring such issues to one's local public representative because the officer is the only person who counts in these matters. The day is fast approaching when those who adopt this attitude will get their answer.

The cases I have listed are genuine and those concerned are entitled to have their applications dealt with in a sympathetic manner. I could say much more, which might be inflammatory. I will refrain, however, on the basis that I expect an immediate resolution to the issues I have raised.

Minister of State at the Department of Agriculture and Food (Mr. Browne)

I thank Deputy Durkan for raising this issue and apologise for the absence of the Minister. The rent supplement scheme is administered on the Minister's behalf by the community welfare division of the Health Service Executive. The Department of Social and Family Affairs has no role in determining entitlement in individual cases.

A number of measures were introduced in the rent supplement scheme in January 2004 to re-focus the scheme on its original objective, which is the provision of short-term income support as opposed to long-term housing solutions. A working group was subsequently established under the Sustaining Progress agreement to facilitate engagement with the social partners in monitoring the impact of the changes to the scheme. In its report in August 2004, the group concluded that the new measures were not having any significant adverse impact having regard to the design of the measures, including the operation of the levels of discretion by community welfare officers. As part of the ongoing monitoring of the rent supplement scheme, the working group was reconvened last November to undertake further examination and consideration. I understand the group is in the process of drafting a report on its latest deliberations.

In the meantime, based on the work of the social partners and other consultations, the Minister introduced new regulations on 31 January 2005 to make two significant changes in the conditions for receipt of rent supplement. First, the requirement regarding six months of prior renting was abolished to ensure that bona fide tenants may access rent supplement in appropriate circumstances. Rent supplement may now be paid where applicants have been established in rented accommodation from within their own resources but can no longer meet the payments because of a change in circumstances, such as illness or redundancy. In addition, rent supplement continues to be payable where there is an assessed housing need and the applicant is unable to meet this from his or her own resources and also in other specific circumstances.

Second, the rules relating to the refusal of local authority accommodation have been eased. Up to now, rent supplement was not payable where a person refused, within a 12-month period, a second offer of local authority accommodation. Rent supplement may now be paid unless a person has refused, within an 18-month period, three offers of accommodation from a local authority.

In regard to the four cases raised by Deputy Durkan, none of the four was affected by the measures introduced in January 2005.

Mr. Durkan

That is not what the social welfare inspector said.

Mr. Browne

In one case, the person concerned was awarded a rent supplement from 1 January 2005. She was also assisted by way of an exceptional needs payment in respect of a rent deposit to help her secure accommodation.

Mr. Durkan

That is not true.

Mr. Browne

In another case, the person concerned has been in receipt of rent supplement since August 2003, which predates the changes introduced in January 2004.

Mr. Durkan

That is incorrect.

Mr. Browne

While there have been revisions in the amount of rent supplement paid in this case, these arose as a result of routine reviews carried out in the normal course to take account of changes in the recipient's financial circumstances.

Rent supplement is not in payment in the remaining two cases. There is no record of an application for rent supplement for the person in one case.

Mr. Durkan

The person was told not to apply.

Mr. Browne

In the other case, the person concerned was asked to provide clarification regarding her domestic and financial circumstances so that an accurate assessment of her eligibility for rent supplement could be determined. The applicant has failed to provide these details to date.

Overall, the Minister is satisfied that the conditions for receipt of rent supplement and the discretion available to the community welfare service to deal with emergency or exceptional cases ensure that bona fide tenants may access rent supplement in appropriate circumstances. The Department will continue to monitor the operation and effectiveness of the scheme and any necessary changes will be made.

Mr. Durkan

The Minister of State has given an appalling reply which contains many inaccuracies.

Job Losses.

Mr. Cregan

I thank the Ceann Comhairle for affording me the opportunity to raise this matter of great importance to my constituency of Limerick West, namely, the loss of 150 jobs at Castlemahon Food Products in Castlemahon, County Limerick. Coincidentally, the last issue I requested to raise on the Adjournment also referred to this company, in regard to the brewers' strike. Fortunately, that issue was resolved and I thank the Minister's office for the support and assistance received at that time.

The loss of 150 jobs has both saddened and angered my constituents, many of whom are my friends and neighbours. I empathise with those employees and their families but, sincere as this sentiment is, it will not put food on their tables, petrol in their cars, pay their rent or mortgage or offer any of the other provisions which require a weekly pay packet. I promise to ensure that every effort will be made by the relevant Ministers and appropriate State agencies to attract and support alternative employment in this part of west Limerick. These job losses add to others in the area. The Kerry Group has announced the closure of the chicken processing plant in Kantoher with the loss of 140 jobs. O'Reilly's Fruit and Veg., a food preparation, packaging and distribution business, recently announced its closure. In Drumcollogher, Drum Engineering Limited is also about to close its doors.

This close-knit area of west Limerick has taken a proverbial hammering. It is now time for the closing of ranks across the political divide, rural communities and State agencies to show support and solidarity to our friends, colleagues and neighbours. This is at a time when such support is badly needed. Playing politics and ranting and raving in front of broadcasting microphones will not replace a single job. Neither will playing the blame game. We must work together to encourage and promote small business ventures. Those brave enough to take commercial risks must get the assistance they deserve.

I was heartened by the initial reaction of the ATGWU regional organiser in the area, Mr. Seán Kelly, who did not rave and rant. Instead, he immediately accepted the company's offer to enter negotiations to minimise job losses. From his comments, I understand the figure of 150 job losses is not written in stone. We must provide for the long-awaited and necessary financial investment deserved by a diligent, committed and responsible workforce. We must ensure that Castlemahon Food Products Limited, synonymous with west Limerick like Kantoher Chickens, will grow with confidence, increase its market share, improve wages and conditions and become profitable and viable, giving employment to future generations.

Will the Minister of State at the Department of Agriculture and Food, Deputy Browne, investigate why jobs are being shed in the agrifood sector, which has been so successful in the past? Is it due to competition from imported products? Our population is growing and, with it, our food outlets, but we are shedding jobs in the chicken processing industry. I appeal to all parties concerned to ensure that as many jobs as possible are maintained at Castlemahon. I have full confidence in the trade union officials involved and management to save as many jobs as possible.

My thoughts tonight are with those who will lose their jobs at the Castlemahon plant. Of the 410 employees in the company, 150 will lose their jobs. The employees have not been told, however, who will be affected. This is a difficult situation for those individuals. I hope that those who remain in employment at Castlemahon will have viable jobs into the future. For those unfortunate to lose their jobs, I hope they will be re-employed as soon as possible in the locality.

Mr. Browne

I share Deputy Cregan's concerns for those workers affected by the recently announced job losses at Castlemahon Food Products Limited. The decision by the company to lay off 150 staff has been taken in the context of a major restructuring programme designed to improve its cost base and to secure its future operation. This is a commercial decision by the company. Castlemahon is owned by O'Kane's Poultry, Ballymena, County Antrim, a major Northern Ireland poultry operator, and the announced restructuring is part of a groupwide initiative. Castlemahon has been an important employer in the Limerick area. While the company will seek to achieve the reduction in numbers through voluntary redundancy, there will be huge disappointment among affected employees and their families. There is never a good moment to announce a restructuring that causes job losses. However, decisions that have broader strategic aims are quite often critical in securing the sustainability of an organisation and maintaining jobs.

The company has indicated that it will retain 260 full-time jobs and, therefore, will continue to be a vital element of the west Limerick economy. Last year, Castlemahon Food Products Limited processed approximately 10 million chickens, accounting for 15% of national throughput. The company intends to maintain and possibly increase the volume of poultry throughput. I urge it to work towards this objective. Approximately 60 farmers are engaged in the rearing and supply of chickens to the Castlemahon company, making a valuable contribution to agricultural incomes in the area. I am glad there is no threat to this. The Castlemahon-O'Kane group has a significant presence and experience of selling in the UK market. Getting its cost base down is essential to its ability to compete in that market. I am optimistic that the company will continue to be a successful and significant contributor to the poultry sector.

My Department has been in contact with Enterprise Ireland on the matter. For some time, Enterprise Ireland has been engaging with the company and will continue to work with it to develop the existing business and secure optimal production levels and sales. The Department of Enterprise, Trade and Employment has stated that the full services of FÁS will be made available to any workers who wish to use those facilities. Particular services of relevance to affected workers are those relating to retraining and upskilling. This will be of assistance to them in getting back into the labour force at the earliest opportunity. Fortunately, west Limerick is well serviced with industries by several major employers in the area. My Department will continue to maintain a permanent veterinary presence at the plant and will assist in every way possible in its ongoing operations.

The poultry industry is a competitive sector due to the increased volumes of poultry meat imported from low-cost countries outside the EU. Nevertheless, the volumes of poultry produced in Ireland have remained at satisfactory levels for both producers and processors, with an increase of 4% in 2004. The poultry and egg sector is an important part of the overall agrifood industry, with a farmgate value of €150 million. The sector provides valuable employment, supplying quality products to the domestic and export market. Last year approximately 66 million chickens and 10 million birds of other species were slaughtered, maintaining high level continuity of production in the face of increased competition from imported products.

Despite increased import penetration, the poultry sector is a net exporter, when the valuable processed products sector is taken into account, contributing €244 million to our balance of payments. Increasingly the industry, in common with other sectors, must face up to the pressures of severe price competition from lower cost products from abroad, a fact of international trade. The trading environment is undoubtedly difficult. Tight controls on costs, full capacity utilisation and economies of scale are essential to the prosperity of the indigenous poultry industry.

The Castlemahon company announcement is aimed at strengthening its cost competitiveness and placing it in a better position to adapt to the current international market environment. Both the Minister for Agriculture and Food, Deputy Coughlan, and the Minister of State at the Department of Agriculture and Food, Deputy Brendan Smith, are concerned at the job losses in this area and will take action on the matter.

Child Care Services.

Mr. Boyle

I thank the Ceann Comhairle's office for giving me the opportunity to raise this issue on the Adjournment.

Last Friday, the Department of Justice, Equality and Law Reform announced that approximately €2.5 million of capital and staffing grants were to be made available for several child care projects. While it seems a good news story, when read between the lines it is disappointing for those who provide child care services, particularly those in disadvantaged communities. The parents in such communities only have one opportunity to see their children cared for in such a fashion. For the past three years, the 36 community child care services in Cork city and the 12 in the greater Cork area have been in receipt of staffing grants from the Department of Justice, Equality and Law Reform. However, at the end of last year in December 2004, a letter issued to all these voluntary and community-based child care providers stating that funding would only be in place on a roll over basis until 31 August 2005. This has contributed to a great deal of uncertainty in the provision of the service, low staff morale and a great deal of fear among the parents of children catered for in this way, because they will not be able to cater for their child care needs in the commercial sector.

The announcement of these capital and staffing grants has been greeted with a great deal of derision despite the suggestion that disadvantaged communities would be catered for. Not one allocation has been made in Cork city despite the suggestion that particular emphasis would be placed on communities rated as RAPID or CLÁR communities. In the four RAPID communities in the Cork city area, including one in my constituency, none received an allocation.

It is unfortunate the response to this Adjournment matter will be from a Minister of State who is not even attached to the Department concerned. I hope by placing my concerns on the record, we will at least get a more honest response from the Government because hidden in the detail of the press release issued last Friday was an indication that of the promised €90 million for child care — that is, for current and capital expenditure and other associated costs —€50 million has been spent to date by the Government. It seems the largest part of the remaining €40 million and the additional money the Government has promised in a ten year envelope will not come on stream until 2007.

As an Opposition Member, I must admit that I can only treat such an announcement cynically. Given the importance of child care, decisions will be made to remove services now but to introduce additional funding in the run up to the next general election. If that is the Government's strategy, it is letting down many disadvantaged communities, child care service providers and the parents and children who depend on the barely adequate infrastructure that exists.

The Minister of State, Deputy Browne, is hardly in a position to reply comprehensively to the issues I raised but I hope he will communicate them to his colleague, the Minister of State at the Department of Justice, Equality and Law Reform, or, if he is able to find him, to the senior Minister if his ego rush has eased down in recent days. As the senior Minister in that Department, he has an overall responsibility to meet a need that everyone in this Houses accepts must be met. I am very angry the Department, with this latest small tranche of additional funding, has caused disappointment and confusion about Government policy in this area. I would like a response as to how child care service needs will be met and properly resourced in my constituency and in the greater Cork area.

Mr. Browne

I apologise for the absence of the Minister but I assure Deputy Boyle the views he expressed will be passed on. I thank the Deputy for raising the matter and for giving me the opportunity to update the House on the important issues of child care and its development in Cork city and county.

Child care is an important priority for the Government and it has increased funding for this important sector on a number of occasions since it first made commitments to the broad child care sector in 1998. The equal opportunities child care programme, EOCP, 2000-06 is a key element of the national development plan and its original funding package of €318 million set as recently as 2000 has increased to €499 million to be spent within the life of the national development plan or before the end of 2007.

The funding package has increased because the Government is aware of the importance of providing child care to support the economy and to support social inclusion through labour market participation. The Government has listened to requests from many groups, such as those in Cork, seeking to build child care facilities to meet local needs. The Government has responded to those requests by making more capital funding available immediately rather than awaiting a follow-on programme to build on the momentum which has been generated by the EOCP in community groups throughout Ireland.

Capital and staffing grant applications for funding under the EOCP from groups in Cork were submitted to the Department of Justice Equality and Law Reform. The EOCP is a seven-year development programme which aims to increase the availability and quality of child care to support parents in employment, education and training.

The demand for capital grant assistance from groups such as those in Cork was such that the Minister for Justice, Equality and Law Reform considered it important to increase the capital provision for the current programme. Following discussions with his colleagues, particularly the Minister for Finance, additional capital funding of €90 million was made available over the period 2005-09 in the context of the 2005 budget. Of this amount, €50 million is being made available under the current programme and the remaining €40 million will flow under the next phase of the post-2006 EOCP. The total funding available for the programme is €499.3 million and includes an increased provision of €205 million for capital developments.

Efforts are being made to achieve a good geographical spread through the appraisal and approvals process. Cork city and county has been approved more than €30 million under the child care programme with 134 capital grants approved to establish either new or quality enhanced community-based not-for-profit or private child care facilities. The county has also benefited from 112 staffing grants to community groups that have a focus on disadvantage. This funding to child care providers in Cork city and county will lead to the creation of more than 3,400 new child care places and to the support of more than 3,100 existing places. Cork city and county child care committees also receive annual funding to support their developmental work.

The Deputy referred to an announcement by the Minister for Justice, Equality and Law Reform of an allocation of almost €2.5 million in February 2005, which did not include any allocation for the greater Cork area. However, the Deputy may also be aware that the Minister announced to community-based not-for-profit groups in December 2004 an allocation of almost €35 million in capital funding, which included an allocation of almost €3.2 million to groups in Cork city and county.

The availability of the additional capital funding will enable the Minister to make further capital grant assistance available over the coming months and years to groups which address significant child care service gaps and where the project proposal represents good value for money. In light of this, groups in Cork have been advised that while their projects were not prioritised for immediate funding in December 2004, they are being reconsidered with all the other applications on hand. The Minister hopes to make further significant capital commitments during 2005 and thereafter to good projects which link with the aims of the programme in supporting child care needs of parents in employment, education and training, offering value for money and filling a service gap in their local area.

Expenditure under the programme covers the period to end-2007 and must take place in a planned manner as must grant approvals to ensure that the programme can meet its financial commitments at all times. Every county has benefited from considerable support for new child care facilities under the EOCP. In all, funding to create some 33,254 new places has been approved to date. This will, when fully drawn down, bring an increase of nearly 60% in the number of centre based child care places throughout Ireland since the start of the programme in 2000, well ahead of original expectations.

The Minister understands from the Area Development Management review that support allocated to the city and county of Cork under the EOCP compares very positively with other counties in the southern and eastern region. The EOCP is the Government's response to the need to develop a child care infrastructure to support parents. There has been significant progress in creation of a good child care infrastructure and the Minister hopes the Deputy will acknowledge the progress made to date in the city and county of Cork and will be reassured that every step is being taken to further develop services in the area as expeditiously as possible.

The Dáil adjourned at 9 p.m. until 10.30 a.m. on Wednesday, 23 February 2005.