Dáil Éireann debate -
Wednesday, 20 Apr 2005

Vol. 600 No. 5

Adjournment Debate.

Irish Blood Transfusion Service.

Ms Lynch

It seems the Minister for Health is determined to avoid any direct connection with this issue, despite its importance. The last time this issue was discussed in this House was 25 June 2004. At the time, the Minister for State at the Department of Health and Children, Deputy Tim O'Malley, assured me the then Minister, Deputy Martin, was fully aware of the difficulties with the current building in Cork and was working with the IBTS to develop a suitable alternative.

The development brief for the new Cork centre project was submitted to the Department by the Irish Blood Transfusion Service in March 2003. The cost of the project at that time was €28 million. We can only wonder how much it would cost today. We have no notion of how much it would cost because nothing has happened. No design team has been appointed and no work has taken place on the promised new building despite the promise made by the previous Minister for Health and Children, Deputy Martin and the Minister of State, Deputy Tim O'Malley that planning permission would be, in his own words, fast-tracked and that all that was to be done would be done as quickly as possible. Despite this, nothing has happened. There are three new prefabs but the service still works from the old prefabs which have been nailed up and their roofs repaired.

We should remind ourselves that this is the centre that discovered a link between contaminated blood products and hepatitis C, something for which every woman should be grateful. The Cork centre is the only one, apart from a laboratory in a maternity unit in Galway general hospital, that has received a quality assured ISO mark. The IBTS headquarters in Dublin has never achieved this quality mark. The Cork centre achieved the quality mark under appalling conditions, leaking roofs, prefabs over 20 years old and no certainty about the future of the unit. Imagine what it could have done had it had ideal working conditions.

This saga began with the Finlay tribunal. The main recommendation from that awful tribunal was that the blood transfusion service in Cork should be upgraded and a new building put in place. That was in 1997. In 2001, the Joint Committee on Health and Children supported the Finlay recommendation but still the IBTS dragged its heels and nothing was done. As a compromise, it was agreed to appoint a panel of experts agreed by the IBTS and a sub-committee of the Southern Health Board. Those international experts, recognised as experts in their field, recommended that Ireland should have a second test centre to ensure a safe, secure, speedy service.

People may not be aware of this, but doctors and consultants in the south are concerned about this centre that has served the country well. Everyone from the expert panel to doctors and clients are concerned about those whose health and safety this Government is charged with protecting. The experts say that two centres is the way to go. The question remains why we are still waiting on a new building. Will we have to wait for this new building as long as we have been waiting for BreastCheck? What is happening and where is the building?

Everyone agrees that the scandal that was hepatitis C and the infection of haemophiliacs through contaminated blood products should not have happened and can never be allowed to happen again. The only way to avoid it is by having two test centres, one of which happens to be located in Cork and serves the Munster region.

Minister of State at the Department of Health and Children (Mr. B. Lenihan)

I thank Deputy Lynch for raising this matter. I make this reply on behalf of the Tánaiste and Minister for Health and Children, Deputy Harney. The Irish Blood Transfusion Service is a national organisation that plays an essential role in the health services of this State. Despite the challenges of recent years, not least the particular difficulty presented by vCJD, the service has risen to the challenge and maintained the national blood supply to hospitals.

The Munster centre is an integral part of the national organisation. While there have been acknowledged difficulties with the facilities available to the Munster centre, the Tánaiste is confident that the service provided to the people of the Munster region is on a par with services nationally. I assure the Deputy the Tánaiste is aware of the difficulties with the current building in Cork and is working with the board of the Irish Blood Transfusion Service to develop a suitable alternative.

The development brief for the new Munster centre project was submitted to the Department by the Irish Blood Transfusion Service in March 2003. The capital cost of the project, inclusive of special testing facilities, is estimated at more than €30 million. The Tánaiste has asked me to assure the House that provision is included in the Department's capital plan for 2005 to allow the appointment of a design team and commencement of the planning process. While planning for the new centre is in progress, the IBTS board approved an interim development for the Munster centre in November 2003. The 660 sq. m. facilities which were completed in December 2004 were developed on the St. Finbarr's Hospital site at a cost of approximately €3 million which was met from the resources of the IBTS. The Tánaiste understands that the Irish Medicines Board, which is the competent authority for the IBTS, has recently inspected the new facilities and is satisfied that they meet the required good manufacturing practice requirements for the immediate future.

While there is no argument that this development is an interim solution and that permanent new premises are required for the Munster centre, there has nonetheless been considerable additional investment at the centre over the years. A new components laboratory was provided at a cost of more than €600,000, a second consultant post was approved and new posts in quality assurance and information technology were also approved in recent years. The Progesa integrated computer system went live in Cork in March 2003, before Dublin which went live in May that year. The posts of laboratory manager and quality assurance officer were filled last year on a permanent basis. The centre also took delivery last year of Galileo, a sophisticated new automated processing machine.

The Munster centre also participates in and benefits from national developments. A strategic plan is being finalised which will guide the activities of the service nationally over the next few years and enable the service to meet the challenges of a changing environment and to maintain its position at the forefront of international developments in transfusion medicine.

The Tánaiste is being kept fully briefed about the position regarding developments at both the national centre and the Munster centre of the IBTS. She has asked me to assure the Deputy that she reiterates the Government's commitment to ensuring that the IBTS continues to have sufficient resources to maintain the highest possible standards in blood transfusion practice at all locations throughout the service.

Digital Hub Project.

Mr. Durkan

I want to correct the wording of the matter I have raised. I should have said I wished to raise the abandonment of the digital hub by the developer. Unfortunately, the anchor tenant has left. I thank the Ceann Comhairle for allowing me to raise this matter. I do so because the digital hub project was supposed to deliver heavily in the area in which it is located. The project was announced with aplomb amid great expectation and the Taoiseach took a significant interest in it. However, the project is two years behind target, like many others, and the anchor tenant has left, although a replacement is being sought. An attempt was made to use the public private partnership model for this project but it failed and agreement has not been reached between the public and private sectors regarding the delivery of the development.

The project is located on a nine-acre site, of which only two acres have been developed. I am concerned because we have had the debacles of electronic voting, which cost more than €50 million, the Red Cow roundabout, which also cost a significant sum, and the port tunnel, which can only accommodate small trucks. I do not want a scenario to develop whereby the digital hub, another flagship project, runs into trouble because expectations are not being realised and targets are not being met. The original plan was not workable or was badly thought out, or it is not meeting expectations for one reason or another.

I thank the Minister of State at the Department of Communications, Marine and Natural Resources for coming in to reply to the debate. I ask that an urgent reassessment of the project be undertaken with a view to reassuring the local community and the tenants on site of the future of the project and ensuring all delays are short-circuited. If that is not done as a matter of urgency, the danger is public confidence in the project will erode and therein lies another potentially sad tale.

Minister of State at the Department of Communications, Marine and Natural Resources (Mr. Gallagher)

I thank the Deputy for raising the matter. I am not aware of any search for or abandonment of a search for an anchor tenant in the digital hub. The digital hub project, managed by the independent Digital Hub Development Agency, continues to be successful in attracting digital industry tenants and operates a number of community, educational and promotional initiatives. The agency has been successful in expanding the cluster, with almost 50 companies employing more than 400 employees in the hub.

The Deputy may be referring to the tendering process for a suitable developer for the digital hub's regeneration role. While it is unfortunate that there was not a successful outcome to the developer competition, we have an opportunity to move on and deliver the digital hub project in a way that will give the stakeholders greater control over the project than the competition allowed. The Minister is in discussions with the agency to deliver the property development project in a timely manner. When completed, the project will deliver 500,000 sq. ft. of enterprise, learning and educational, residential and retail space.

While the larger hub site is being developed, the agency is space constrained, given the high number of tenants. Parts of the former Media Lab Europe building will be utilised by the hub on a temporary basis. On the issue of the closure of MLE, the basic premises underlying the Government commitment to research into the digital media sector remain. Research in the field of digital media is premised on a number of high level objectives, inter alia, establishing a scientific and technological leadership for Ireland, stimulating increased research and development investment in Ireland, attracting high quality inward investment and human capital, supporting enterprise development in Ireland, supporting high quality human capital formation in Ireland, collaborating with Irish institutions and development agencies and providing a forum for international exchange and discussion.

Consultation with regard to the establishment of a new research laboratory, the National Digital Research Centre, was recently concluded. It is proposed that the NDRC will consider some similar research to MLE but that there will be greater focus on sustainable research and more directive research in a new business model. The Minister will seek improved links to Irish universities and improved corporate governance. The NDRC will also be expected to develop more significant linkages with the digital media cluster emerging in the hub.

The consultation found a high level of support for the proposal to continue public investment in the digital media sector in Ireland with the establishment of the NDRC and there is likely to be a satisfactory response to the recent competitive call for proposals. The Minister is absolutely convinced the digital hub will continue to expand and develop in the years ahead.

Job Creation.

Ms Cooper-Flynn

It is with regret I raise this matter following the announcement of the loss of 100 jobs at Contact Partners call centre in Castlebar, County Mayo, earlier this week. Unfortunately, this comes after the announcement of job losses at Allergan a number of months ago and at Volex last year. Job creation has been a bad news story in Castlebar and County Mayo generally. The recent jobs losses have had serious social and economic consequences for the town, even though it is designated a hub town in the national spatial strategy, as are Ballina and Westport.

Recently, the House debated the national development plan and, in particular, the underspend in the BMW region. I met IDA Ireland representatives subsequently to discuss job creation and what the authority was doing to attract industry into County Mayo but, disturbingly, I was informed that the greatest obstacle to attracting investors is the inadequate infrastructure and, in particular, the quality of the N5. This is sad given that during the first four years of the NDP, 2000-04, only 54% of the money allocated to national roads in the BMW region was spent compared with 121% in the south and east regions.

The N5 is the main artery between Dublin and Mayo and it is severely deficient for more than 25 miles. The section between Ballaghaderreen and Strokestown is unfit and unsafe to accommodate heavy traffic and the Castlebar to Westport road, which was an NRA priority in the county more than five years ago, has slipped down the pecking order. One would question when it will be upgraded. These projects have major consequences for industry in County Mayo.

Contact Partners has offered alternative employment to many of its young workers at its Shannon facility. While a number are single, many of them are settled with families and uprooting them to Shannon is not an option. A total of 100 employees have been severely affected by the decision to close. IDA Ireland has built a new business park in Castlebar in recognition of its designation as a hub town under the national spatial strategy but the authority is unable to attract industry to the town because of its inadequate infrastructure.

I do not seek a task force or target group because in the past they have run into the ground and ended up going nowhere. I ask for a positive Government decision to invest quickly in infrastructure in the town. Once potential investors drive through the town, they are left with a negative impression. Given the competition between towns throughout the State seeking to attract industry, this is a severe handicap for Castlebar. I call on the Government to do something about it.

I refer to the debate a number of weeks ago. Regarding the infrastructure operational programme, there was a €716 million shortfall in spending in the BMW region over the past four years. The Minister of State, Deputy Killeen, accepted that fact in the House on that occasion and the Minister for Finance accepted it on several occasions. Those figures are not disputed. Deputy Killeen also accepted in the House that night on behalf of the Government that towns in the BMW region now have a very significant claim to future investment in infrastructure, particularly in 2005 and 2006. However, only last week, in an article in The Irish Times, I was very disappointed to see that the Minister for Community, Rural and Gaeltacht Affairs, Deputy Ó Cuív, the only Minister we have in the west of Ireland, tried to put some sort of gloss on spending in the region by saying that there had been a 125% increase in money going on infrastructure since 2000.

An Ceann Comhairle

The Deputy's time is concluded.

Ms Cooper-Flynn

Given that we accept that there is a deficit of more than €700 million on infrastructure, that only goes to show that the level of investment in 2000 was so low that a 125% increase made very little difference. I ask the Minister to give those points favourable consideration, after which we might see an improvement in the near future.

Minister of State at the Department of Enterprise, Trade and Employment (Mr. Killeen)

I thank Deputy Cooper-Flynn for raising this matter. I was disappointed to hear of the recent decision announced on 18 April by Contact Partners Communications Limited to close its Castlebar operation. That decision was undoubtedly a setback to the area.

The parent company decided that keeping the Castlebar operation open is not a viable option. It has decided to close Castlebar and consolidate all business at its other Irish operation in Shannon. The company has stated that, operationally, it is not practical for it to continue to incur the additional costs of operating from two centres in Ireland when it could do so from only one.

Current employment at Castlebar is 101 — there are 50 people employed in Shannon — and the company is planning final closure on 18 May next. I understand the staff is being offered the option of relocating to Shannon. The offer will include a relocation package. Finding alternative employment for the workers affected is a priority for FÁS and the State development agencies. FÁS has already been in contact with the company to offer its full range of support services. The company indicated that it would reply to FÁS at a later date.

Achievement of balanced regional development is a central goal for IDA Ireland. The national spatial strategy provides a framework for achievement of that goal through the prioritisation of development and investment in the linked hub of Castlebar-Ballina and in other key towns so that the needs of foreign direct investment can be met. IDA Ireland is committed to the development of Castlebar and County Mayo and is actively promoting the county for new foreign investment. Since January 2004, there have been seven first-time site visits to the county.

In 2004 alone, four IDA Ireland-supported companies committed themselves to research and development projects in County Mayo, with potential spending of approximately €5.5 million. That is a significant development essential for the development of high-quality employment in County Mayo. The current property investment programme represents cumulative planned spending of approximately €11 million by IDA Ireland in County Mayo for the four years ending in December 2005.

IDA Ireland is investing significantly in the provision of planned and focused property solutions in Castlebar and County Mayo. That is seen as an essential marketing tool in the process of attracting potential new investors to the county. IDA Ireland is developing world-class business and technology parks in Ballina and Westport, as well as Castlebar. In Castlebar, a new 16-acre, state-of-the-art business and technology park has been fully developed and is being actively promoted by IDA Ireland for new FDI projects.

Enterprise Ireland provides preferential funding for companies with detailed export plans that are expanding or establishing a business in Castlebar or County Mayo. Enterprise Ireland approved funding support of more than €5.8 million and paid more than €4.8 million to companies in the county for the years 2001 to 2004. To date in 2005, some €563,000 has been approved in support to the indigenous sector. That financial support will enable the companies to fund their plans for innovation and new product development.

Enterprise Ireland has also approved funding for ten community enterprise centres in County Mayo. Eight centres have now been completed, including one in Castlebar. The incubator unit at the Galway-Mayo Institute of Technology in Castlebar received a capital grant of €1,280,000 in 2002 from Enterprise Ireland. A further €76,000 was also approved towards the cost of a centre manager. The main objectives of those incubation centres are to support the development and expansion of campus company activity and to encourage and support the commercialisation of research and development carried out in the third level sector.

Galway-Mayo Institute of Technology is an important local source of highly skilled graduates for industry in Castlebar and County Mayo. The campus is currently working with local industry to develop specific courses to meet industry needs in information and communications and medical technologies.

I am encouraged by the most recent live register analysis figures for Castlebar and County Mayo released by the Central Statistics Office. The year-on-year figures for Castlebar show a decrease of 99 people, from 964 to 865. Overall, the numbers on the live register for County Mayo stood at 5,297 in March 2005, down from 5,863 in March 2004, a decrease of almost 10% in unemployment using that indicator.

I am satisfied the strategies and policies pursued by the State development agencies, including the county enterprise board, together with our ongoing commitment to regional development, will continue to bear fruit in overseas investment, business development and increased employment opportunities for both Castlebar and County Mayo. The relevant State agencies will continue to make every effort to secure alternative employment for the staff affected by the job losses at Contact Partners Communications Limited.

Airport Development Projects.

Mr. Kelleher

I welcome the opportunity to raise this issue. The debate is timely in view of the fact that the three airport authorities were before the Joint Committee on Transport last week to discuss progress regarding the State Airports Act 2004, the break-up of Aer Rianta and the distribution of capital costs of developments to the various airports.

It is important to note that Cork Airport has been very successful to date. There has been a great increase in the throughput of passengers recently. It has now reached 2.25 million passengers per year, and projected growth puts that at 3 million. It is therefore important that we recognise that Cork Airport, first and foremost, has marketed itself very effectively. It is a strategic part of the region and its development regarding employment and foreign investment. When this issue was first debated, there was a strong objection from Aer Rianta to Cork Airport securing a new terminal, and many local Deputies fought with it to secure funding. The previous Minister for Transport, Deputy Brennan, strongly supported that project. The assumption was that, at the final stages, Cork Airport would get its new terminal but that the capital costs of providing it would not be passed on to it.

The Minister of State taking the debate, Deputy Callely, would have been very aware of that, having also been a great supporter of Cork Airport over the years. I know he will take a personal interest in this. Given that he is now in the Department of Transport, I hope he will understand the concerns and anxieties of people in Cork, particularly staff and management, who have gone to great efforts in recent years.

Cork Airport has been a very profitable part of Aer Rianta. When other developments were going ahead in Aer Rianta, Cork Airport's finances funded some of them. With the shoe on the other foot, it is time it acknowledged that Cork Airport has not received fair investment over the year, and now that we have achieved the new terminal, we should not be burdened with an excessive debt that could kill its commercial future. When the previous Minister appointed the board members to Cork Airport Authority, I genuinely believe that they were also under the assumption that the capital costs would not be borne by the airport in the event of a break-up. I know there is company law and that the State Airport Act requires that the transfer of assets also be taken into account. However, whatever measures are in Cork Airport's business plans, they should be adjudicated on the original Government policy assumption that it would be free of the debt for the development of the new terminal. I highlight that because I have genuine concerns about the thrust of a recent debate at a meeting of the Joint Committee on Transport, at which representatives of the Dublin, Shannon and Cork airport authorities were present. Some people insisted that Cork Airport should introduce business plans to fund the capital cost of the development of the terminal. That would be unfair as it would represent a reversal of previous Government policy when it was decided to sanction the development of the new terminal.

Most people in Cork have a strong attachment to the airport. They realise that it has a major impact on the financial vibrancy of the Cork region. Figures are available to indicate that the airport is growing rapidly, mainly as a result of strong and aggressive marketing of the airport by its management and the commitment of its staff. The airport is used by a large swathe of the population outside Cork. Its catchment area will increase as the roads infrastructure to the north of Cork city improves. I am concerned that officials from other airports might try to saddle Cork Airport with as much debt as possible because they see it as a threat. As a public representative of the Cork area, I cannot accept that.

I am aware of the Minister of State's strong attachment to Cork and to the airport in particular. I am sure he will listen to the views of public representatives from Cork, the chambers of commerce of the Cork region and the members of the board of the Cork Airport Authority. There is deep concern and anxiety in Cork about this matter. If we are serious about the break-up of Aer Rianta, we need to tackle the many obstacles which exist. The Government needs to ensure that it complies with company law and that the three airports are solvent. Issues relating to the debt ratio and capital costs also need to be assessed. The commitments which were made should be honoured when business plans are submitted to the Cabinet for its approval.

Minister of State at the Department of Transport (Mr. Callely)

I thank my good friend, the assistant Government Whip, Deputy Kelleher, for raising this issue. I support the sentiments he expressed in respect of certain issues, such as Cork Airport's debt. I agree that we should not stifle or kill off the potential for growth that exists at the airport. The Deputy and some of his local colleagues are concerned about the growth of Cork city and the Cork region. I look forward to working with him to ensure that Cork develops in the way we would like.

Like Deputy Kelleher, I congratulate Mr. Joe O'Connor and the staff of Cork Airport on the work they have done to facilitate the growth and development of the airport which is one of the fastest growing regional airports in Europe. The number of passengers passing through the airport has increased threefold over the last ten years, from 800,000 passengers in 1994 to 2.25 million in 2004. The airport is served by a number of scheduled airlines, including three Irish airlines, Aer Lingus, Ryanair and Aer Arann. New routes have been added and a further significant increase in services to and from UK and European destinations is expected this year. Cork Airport was voted the best Irish airport in 2004 for the third consecutive year in a poll conducted by the air transport users committee of the Chambers of Commerce of Ireland. I heartily congratulate all involved.

The Cork Airport development project that is under construction will, in effect, deliver a new landside airport. It represents the first major upgrade of the airport since it was built in the 1950s. The new terminal building will accommodate a vast array of appropriate state-of-the-art facilities. It is expected that the terminal will be completed, as promised, by the end of 2005. I do not doubt that it will contribute significantly to the economic, social and cultural life of Cork. The airport's business park, part of which was designed by a horticulturist from Clontarf, has been developed in recent years. There are more than 20 buildings on the site which is a joint venture arrangement involving the airport and the private sector. I understand that it has been highly successful.

It is clear that the outlook for Cork Airport is positive. The current objective is to continue to develop the business on a sound economic basis. The Government's policy is to restructure the three State airports, to give greater autonomy to Cork and Shannon airports and to promote development in each region. The former Minister for Transport, Deputy Brennan, enacted the State Airports Act 2004 to facilitate the restructuring. In accordance with the 2004 Act, the transfer of assets to one of the two new airport authorities cannot take place earlier than 30 April 2005. A phased approach thereafter will allow one of the new authorities to be vested first with the second being vested after sufficient distributable reserves have been built up within the Dublin Airport Authority.

The preparation of a comprehensive business plan by the Cork Airport Authority is a central element of the preparatory work being done in advance of the separation of Cork Airport from the Dublin Airport Authority. Business plans are being prepared by the Dublin and Shannon airport authorities. All three business plans will have to be assessed. It is expected that certain issues will have to be discussed between the authorities before any final decisions are made. As Deputy Kelleher said, the State Airports Act 2004 requires that the Ministers for Transport and Finance must be satisfied about the operational and financial readiness of the Shannon and Cork airport authorities, including business planning, before the assets of each of the airports can be vested in the authorities. Deputy Kelleher also mentioned some technical company law and accounting requirements in that context.

The phased approach for the transfer of assets provided for in the State Airports Act 2004 is designed to cater for the fact that the distributable reserves available to the Dublin Airport Authority are insufficient to transfer assets to both Shannon and Cork. The timing of the transfer of assets will depend on the availability of distributable reserves in Dublin. Under one of the options for the separation of Cork Airport, the airport authority will have no bank debt at the time of the separation but it will have to enter into a finance lease with the Dublin Airport Authority in respect of a portion of its assets. Cork Airport has benefited greatly from the major investment made in the development of its facilities. The finance lease option would allow the Cork Airport Authority to take full responsibility for the management and operation of the airport at as early a stage as possible and to drive future growth using the platform provided by the new facilities. I look forward to working with Deputy Kelleher in that regard. I hope my comments have been helpful.

The Dáil adjourned at 9.30 p.m. until 10.30 a.m. on Thursday, 21 April 2005.