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Dáil Éireann debate -
Tuesday, 22 Nov 2005

Vol. 610 No. 4

Adjournment Debate.

Nursing Home Subventions.

I am calling for the Minister for Health and Children to amend the nursing home subvention scheme under sections 22 and 23 of the Nursing Homes (Subvention) Regulations 1993 and to increase the subvention in view of the large number of families forced to avail of private nursing homes for elderly parents due to a lack of public nursing home places.

Owing to the shortage of beds in community hospitals, elderly people who need full-time care and attention must accept beds in private nursing homes. Elderly people are compelled to accept this situation without reference to means, although I am aware of the health liaison officer who organises admission to private nursing homes for people who are fit to be discharged from general hospitals.

In the Cork-Kerry area, 489 people are waiting for enhanced subvention. One can imagine their plight. Their families cannot afford to pay the nursing home fees while other elderly people in the community hospital benefit from free care. We accept that in our community hospitals, but there are private nursing homes in almost every parish and no extra beds have been placed in the community hospitals. People are forced to accept beds in private facilities that are not being paid for by the State. The Ombudsman has stated that if elderly people are entitled to medical care in a hospital, they are entitled to free care. Elderly people should have that long-stay care.

On the Nursing Homes (Subvention) Regulations 1993, the circumstances that are assessed for the purpose of these regulations includes the capacity of a son or daughter aged 21 or over residing in the jurisdiction. The 1993 regulations include assessing the ability of a person in respect of whom subvention is being sought to carry out tasks of daily living on the basis of his or her degree of mobility, ability to dress unaided, ability to feed unaided, ability to communicate, extent of orientation, level of co-operation, ability to bathe unaided and quality of memory and degree of continence. That is outrageous in this day and age when such a major percentage of the population is elderly and requires long-stay care in private nursing homes because there are no extra public beds. I call for the amendment of the Nursing Homes (Subvention) Regulations 1993.

I will take the Adjournment on behalf of my colleague, the Tánaiste and Minister for Health and Children, Deputy Harney. I thank the Deputy for raising the question as it provides me with an opportunity to outline to this House the current situation with the nursing home subvention scheme.

A nursing home subvention may be paid towards the cost of private nursing home care where a person is unable to meet the cost, where he or she has been assessed as needing nursing home care by the Health Service Executive and where the person has satisfied a means test. The amount of subvention granted will depend on the degree of nursing home care required — medium, high or maximum — and the amount of the person's assets, including property, stocks and shares and savings. The rates of subvention payable are for medium dependency €114.30 per week, high dependency €152.40 per week and maximum dependency €190.50 per week.

The nursing home subvention scheme was introduced to assist with the cost of private nursing home charges and was not intended to cover the entire cost of nursing home care. Under article 22.3 of the Nursing Homes (Subvention) Regulations 1993, the HSE may enter into an arrangement with a registered private nursing home to provide inpatient services under section 52 of the Health Act 1970. In making an arrangement with a private nursing home under article 22.3, the HSE may pay more than the maximum rate of subvention, as mentioned already, relative to an individual's level of dependency, for example in cases where personal funds are exhausted in accordance with article 22.4 of the Nursing Homes (Subvention) (Amendment) Regulations 1996.

The application of these provisions, however, is a matter for the HSE in the context of meeting increasing demands for subventions. The average rate of subvention paid by the HSE generally exceeds the current approved basic rates mentioned above. Spending on the nursing home subvention scheme has increased from €5 million in 1993 when it was introduced to a figure in the region of €140 million in 2005. The Department is working on changes to the regulations to, inter alia, update the assessment thresholds that are used when determining a person’s eligibility for subvention to more appropriate up-to-date levels.

A working group chaired by the Department of the Taoiseach and comprising senior officials from the Departments of Finance, Health and Children and Social and Family Affairs has been established following the publication of the Mercer report entitled Study to Examine the Future Financing of Long-Term Care in Ireland. The objective of this group is to identify the policy options for a financially sustainable system of long-term care, taking account of the Mercer report, the views of the consultation that was undertaken on that report and the review of the nursing home subvention scheme by Professor Eamon O'Shea. The report of the group will be submitted to Government shortly.

Job Losses.

Which Minister is taking this matter?

Is the Minister of State taking all matters tonight?

With respect to the Minister of State, I am astonished. Where is the Minister for Enterprise, Trade and Employment, Deputy Martin, or the Minister of State, Deputy Killeen? Deputy Tim O'Malley holds a health portfolio. It demonstrates the arrogance of the Government that it sends a Minister of State at the Department of Health and Children in to answer on an issue where 120 jobs are being lost in Sligo. It is not good enough, it is absolutely appalling. Where are the Ministers of State, Deputies Killeen and Michael Ahern, and the Minister, Deputy Martin? This is the arrogance and intoxication by power of this Government when the people of Sligo are losing 120 jobs. I have nothing personal against the Minister of State, Deputy Tim O'Malley, but he is a Minister of State at the Department of Health and Children, not the Department of Enterprise, Trade and Employment. How can he answer me about the jobs being lost in Sligo? That is how arrogant the Government has become.

At total of 122 jobs have been lost with 60 days notice, meaning workers and their families will find themselves out of work before Christmas. It is never good to hear an employer is leaving the country but it is particularly difficult so close to Christmas. This is compounded by a Minister of State at the Department of Health and Children coming into the House to deal with an issue that falls under the remit of the Department of Enterprise, Trade and Employment.

Tractech has been based at the Finisklin industrial estate since 1984, where it manufactures mechanical parts. Employees of that plant have worked diligently. Tractech is an important employer in Sligo and yesterday's decision is a major blow to the area. It is worse that the company was bought by another company, Eaton Corporation, 12 weeks ago. Did the Minister have talks with Eaton when it acquired Tractech — I am certain he did not — and were there any conditions attached to the sale? This is a highly profitable company where the staff have been there for 20 years but the company that bought it 12 weeks ago is now pulling out. Is that allowed? This is a major employer. Perhaps the Minister for Enterprise, Trade and Employment is over with the American parent company, although I doubt it. Did he have any talks with Eaton Corporation? I doubt it.

Everything must be done to stop Tractech leaving Sligo. I am very disappointed that the Government attaches such importance to this issue that it sends in a Minister of State at the Department of Health and Children to deal with it. That says it all. It is a damning indictment of the Government's attitude to the north west and to Sligo if this continues. The Minister for Enterprise, Trade and Employment must travel to Ohio to meet Tractech's parent company, Eaton Corporation. I demand to know what he is doing about this. We were informed a task force would be set up but we do not want it. We will not be fobbed off in Sligo about this. A total of 120 jobs will be lost and this is on top of the loss of 560 jobs in Hospira, a sister company of Abbot Ireland. The Government is only able to push companies out of Ireland instead of encouraging them to stay. The Government states this is inevitable because of stacked-up costs but this is the rip-off Government. Every employer in the State is being ripped off by the Government and that is why companies are leaving.

I hope the Minister of State will tell the Minister for Enterprise, Trade and Employment that I want him in Sligo. He has a job to do because giving workers 60 days' notice is not good enough. I guarantee this issue will be raised in the House again and the Minister will have to deal with this issue. His attitude towards the House is appalling and I am not surprised these jobs are moving from Sligo given his attitude.

I thank the Ceann Comhairle for giving me the opportunity to raise the loss of 120 jobs at Tractech in Sligo town. Unfortunately, the relevant Minister is not present and I agree with Deputy Perry that it is a scandal. This has come as a shock to the workers at Tractech and, while we all sympathise with them, they have a right to expect a great deal more than sympathy from their public representatives. The workers are not members of a union and their immediate major concern is a redundancy package. I seek a commitment from the Minister that every effort will be made to ensure workers receive their entitlements.

However, that is only the first step. What arrangements will the Minister put in place for the workers? Will a retraining package be put in place to ensure they can upskill to enable them to secure alternative employment? Has the Minister contacted Eaton Corporation, Tractech's parent company? Is he working to ensure there will no further job losses in the north west, particularly in Manorhamilton, County Leitrim?

While each job lost at Tractech impacts negatively on the lives of the workers and their families and every effort must be made to support them, it is essential to understand that this closure is happening in the wider context of globalisation. Companies can relocate anywhere in search of cheaper labour and lower costs. Parts of County Donegal have been decimated by such job losses and, unfortunately, this phenomenon is spreading nationwide. The challenge for Sligo, the north west and Ireland is to compete in the global market and this can only be met if competitive infrastructure is in place. Unfortunately, the recent transport plan gives us little cause to rejoice.

However, it is critical that the State should invest in research and development and promote innovation if we are to maintain jobs and attract new ones. I recently tabled a parliamentary question on research and development investment by the Government. Six Departments replied that only 14% of their research and development spend was devoted to the Border, midlands and west region. This is a major threat to future employment opportunities in Sligo.

We as politicians have a responsibility to bring about the conditions in which employment can be created and maintained. There is no point in complaining about companies relocating because we cannot stop them. However, the Government can invest in research and development and innovation so that Ireland can compete with India, China, eastern Europe, the US and Japan. The EU is behind the US and Japan in investment in research and development while Ireland is behind many of its European counterparts in this regard. Meanwhile, investment in the BMW region is minuscule compared with the rest of the country.

In the medium to long term, the Government has a responsibility to invest in our region and safeguard our jobs while in the immediate future it has a responsibility to support the Tractech workers. Every effort must be made to secure alternative employment.

I thank the Ceann Comhairle for the opportunity to contribute to the debate. Yesterday the workforce in Tractech was informed that a so-called review of the factory was ongoing and that in 60 days a decision would be made on whether the company would maintain a manufacturing base in Sligo. While no decision has been made and everybody is the town is hoping against hope that the factory will remain open, the more realistic interpretation of the announcement is that the new owners intend to move the manufacturing process from Sligo to a low cost country.

Our thoughts in the first instance must be with the employees who have this dreadful news hanging over them as we enter the Christmas period. To be put in a potential redundancy scenario at any time of the year is bad news but it is appalling when the news is received a few weeks prior to Christmas. This company was successful financially over recent years and last year it recorded a profit in excess of €3 million. However, the problem is that the company, which has operated successfully since 1983, was taken over by Eaton Corporation of America in August 2005. The company and the employees have encountered the unpalatable and unacceptable face of globalisation.

I know many of the employees and I ask the Minister for Enterprise, Trade and Employment to use his good offices to ensure every State apparatus is used to protect them. I refer to two issues in this regard. I would like the Minister to ensure IDA Ireland, in conjunction with the company, will put in place the best redundancy package should the Sligo factory close. I also ask that outplacement services should be made available to all employees, including career guidance, interview skills and business start-up advice, and that a co-ordinated effort should be put in place involving FÁS, Sligo Institute of Technology, Enterprise Ireland and the county enterprise board so that employees can be reskilled and retrained as soon as possible. It is also important that IDA Ireland should work with the company during the consultation period to ensure the impact of the closure on local suppliers and subcontractors is kept to a minimum.

Eaton Corporation has a subsidiary in Manorhamilton, County Leitrim. It is important that these jobs should be protected and secured. IDA Ireland must monitor the company and liaise with the Minister and the workforce. Enterprise Ireland must redouble its efforts to establish a high-tech cluster of businesses in Sligo with the benefit of Sligo IT's facilities, staff and graduates. Given the proximity of Sligo and Leitrim to Northern Ireland, greater focus must be put on cross-Border trade. I acknowledge new jobs were created in Sligo recently, including 300 jobs in Tucon and a similar number in Abbot Ireland. However, our thoughts must be with the employees of Tractech and the positive steps the Minister, the Government and the State agencies could take to help them at this difficult time.

I thank the Deputies for raising this matter. I am concerned that Tractech Ireland Limited has announced that it intends to close its Sligo operation by the end of 2006. I am conscious of the effect these job losses will have on the workers, their families and community. The company has commenced a staff consultation process and the outcome of this process will be a phased transfer of the operation outside of Ireland in 2006 with the loss of all 120 jobs in Sligo.

Tractech manufactures centrifugal clutches and traction enhancing differentials for heavy duty equipment and off-road vehicles and was established in Sligo in 1983. The company has been a steady employer of skilled fitters and engineers and has delivered consistent growth and profits. The Eaton Corporation acquired Tractech earlier this year and, while local management saw opportunities for growth arising from the new relationship, they were awaiting a clear statement from the new parent company on the strategy and direction the Sligo operation would take. Eaton considers that there is a need to consolidate operations, as there is not enough business to support the operation of multiple facilities that build similar product.

Why did Eaton buy the company?

The company conducted a review of its operations at its Sligo plant, which led it to the conclusion that the business should be relocated with the resultant loss of jobs for all employees. The review was the direct result of the competitive pressure being experienced by its customers and the requirement for Tractech to continue reducing its manufacturing costs. The most likely scenario will be a phased shutdown of the Sligo operation beginning in spring 2006 with final closure by the end of the year.

FÁS will contact the company shortly and the full range of its services will be offered to the workers to retrain and upskill them if they wish. Job losses in the region are of ongoing concern and the Government is doing all in its power to create structures through its enterprise, development and training agencies which will facilitate those who have lost jobs to gain new ones that offer greater opportunity both in terms of skills and permanence.

Ireland has a predominantly modern manufacturing base which competes in a range of growth sectors. However, as with most other European countries, there are areas of activity in which Ireland's competitiveness is seriously challenged. In the main, these are in areas where the availability of lower cost locations is making cost the primary driver behind business decision making.

It is inevitable that the investment decisions of some companies will be influenced by the competitive attractions of alternative geographic locations. Our focus is firmly concentrated on managing the current transition with the best possible blend of policies to strengthen both national and firm level competitiveness.

Manufacturing has been a key driver of prosperity across the economy for many years and enterprise policies will continue to emphasise the strategic importance of the sector to future economic growth. Indeed the enterprise strategy group recognised the importance of the sector in providing a foundation of skills and technologies in which to build a high performance, high value added and technologically orientated manufacturing sector into the future.

Our objective is to ensure that our economy remains a globally competitive, profitable and secure location for business. We can best help enterprise, including the manufacturing sector, by continuing to implement policies that are pro business and by implementing the right balance of enterprise supports and at the right time to help business. When provided with the best supporting and competitive environment, business and industry will develop to capitalise on investment and growth opportunities. It is the Government's intention to enable enterprise growth by policies tailored to address the competitive pressures transforming the global economy.

A key element of the Government's strategy to help enterprise is to encourage increased levels of investment in research, business related technological development and innovation across all enterprise sectors. These increased levels will assist firms to produce improved products and services with added value. In the longer term, this approach will provide more sustainable and higher quality jobs.

This is an Ard-Fheis speech.

The industrial development agencies will be making every effort to secure alternative employment for the area.

On a point of order——

Is the Deputy interested in alternative employment in Sligo? I did not interrupt Deputy Perry.

What has this got to do with Sligo?

The Minister of State is allowed to speak.

If the Deputy is interested in alternative employment in Sligo, I am coming to that.

There is nothing in this speech about it. How can Deputy Devins take this?

IDA Ireland is promoting County Sligo and the north west to potential investors on an ongoing basis and every effort is being made to secure further industry for the north west, including County Sligo, by progressing the development of a knowledge economy in order that the region can compete nationally and internationally for foreign direct investment. The agency is also working with its existing client base to expand its presence in the county.

To support this strategy of moving to a more knowledge based economy, IDA Ireland is working closely with educational institutions in the Sligo region in developing the skill sets necessary to attract high value added employment to the county. As part of the transition to repositioning the county to a more knowledge based economy, IDA Ireland is marketing Sligo as a key location for investment in the pharmaceuticals, chemicals, medical technologies, engineering, consumer product and financial services sectors. IDA Ireland is also working with FÁS to provide guidance in developing the skill sets needed by those in the workforce who are interested in upskilling.

The location that IDA Ireland focuses on is the national spatial strategy gateway town of Sligo and the linked gateway of Letterkenny-Derry. In addition, IDA Ireland is actively promoting the county towns of Donegal and Carrick-on-Shannon. Over the past five years, IDA Ireland's focused strategy for Sligo has been to promote the county as part of an integrated north-west region with access to a population base of more than 220,000 people.

Recent job announcements for Sligo include Abbott Ireland, which is to add 350 new jobs to its existing diagnostics facility——

When are they coming?

——and the consumer telecommunications company IDT Toucan, which will create 300 new jobs at its customer service centre in Sligo. Enterprise Ireland's policy objectives for balanced regional development are reflected in the structure of its funding offers whereby funding for existing company expansion and start-up business is biased towards the regions. The maximum grant level is higher than in Dublin and the mid-east and a higher proportion of this funding is also non-repayable.

Since the beginning of 2002, Enterprise Ireland approved over €3.4 million in support to its client companies in County Sligo and made payments of over €2.4 million. In the same period EI has approved support of over €1.2 million for third level-industry partnerships with the Sligo Institute of Technology to encourage the adoption of new technologies by industry,

In terms of job creation, Enterprise Ireland activity is focused on the creation of new jobs through supporting entrepreneurs setting up new high potential start-up companies, the retention and creation of new jobs in existing companies and enhancing innovation capability through support of research in companies and third level institutions.

Enterprise Ireland's future activities are outlined in its new strategic plan Transforming Irish Industry 2005-2007 which was launched by the Minister for Enterprise, Trade and Employment in May 2005.

This speech is totally irrelevant. It does not answer the problems of Sligo. I can take no more of this speech. It does not deal with the issues of Sligo. It is totally out of order. I cannot take any more of this tripe.

That is not parliamentary language.

The strategy sets out the role Enterprise Ireland will play in transforming Irish companies into market-focused and innovation driven businesses that have the ability to complete successfully on world markets. In July 2005, Enterprise Ireland organised a briefing on the new Enterprise Ireland strategy to companies from across the north west in Sligo. I assure the Deputies that the State development agencies, including the local county enterprise boards, under the auspices of the Department of Enterprise, Trade and Employment, will continue to work closely together and with local interests in promoting Sligo and the north west for further job creation and investment.

They sold out to an American company 12 weeks ago.

I know far more about employing people than Deputy Perry ever did.

The Minister of State should come to Ballymote and see how many people he can employ.

School Transport.

I am grateful for the opportunity to raise an important issue which affects my constituency. Like the previous speaker, I regret that no Minister of State from the relevant Department is available. It is no disrespect to the Minister of State who is present to say he is producing a script. I welcome him, he has the answer prepared, but what is the point in my saying anything? He knows nothing about the issue, and cannot since it is not his responsibility, yet he is dispatched to disrespect Members of the House — I am not talking of the Minister of State but the Government——

Did the Deputy never do that when he was a Minister?

One Minister of State from the Department of Health and Children handling a cross-departmental range of issues and reading out a prepared script is a disrespect.

I will give the last minute of my time to Deputy Kehoe. This is a very important issue, one of the most intractable and frustrating issues I have dealt with in my time in this House. The pupils in the growing village of Blackwater in County Wexford have traditionally, by and large, gone to secondary schools in Wexford town. Some have gone to Kilmuckridge but, by and large, the pattern over decades has seen the majority going to secondary school in Wexford town, a pattern which continues to this day.

For some inexplicable reason, the catchment boundary for the provision of school transport to these pupils became an issue some years ago and the facility to provide transport for these pupils was withdrawn. The result is that there are now 49 young people from the Blackwater area literally left on the side of the road. After much agitation it was finally decided and agreed on 13 October last by Wexford VEC, the school transport office and Bus Éireann that at least 23 of these pupils were eligible, properly and legitimately, for school transport as they resided in the catchment boundary for Wexford town. No tickets have issued to these pupils. No transport has been provided despite the fact they were notified formally by the school liaison officer and moneys were accepted. The latest twist in the tail of this ongoing disgraceful saga was on 9 November when parents were informed by the transport liaison officer that when she, the transport liaison officer properly authorised to deal with these matters, requested transport for these pupils, the Department of Education and Science was not in a position to sanction transport for these 23 pupils because of a mapping discrepancy.

I ask the Minister of State, Deputy Tim O'Malley, to convey to the Minister for Education and Science the real and palpable anger in County Wexford, especially in the Blackwater area, on this issue. There is a deliberate frustration of the rights of these pupils and their parents by the Minister for Education and Science in this matter. Sight unseen the Department has declared them ineligible even though they are within the revised boundary submitted in what is described and accepted in Wexford as a gerrymandered map which I have and which the Department has belatedly produced. It could not be the original map because it has references on it to areas that did not exist at the time the original map was drawn up.

The frustration needs to be brought to an end. I ask the Minister of State present — unfortunately it is not the Minister responsible for these matters — to explain how this pattern of abuse has continued for these children and their parents and when it will end. When will these pupils be given the proper transport to carry on their education like every other citizen in the State?

I thank Deputy Howlin for sharing time. I am disappointed the Minister for Education and Science is not present to take this Adjournment matter. I will spell out what could make a difference in this case. A 52-seater bus put on this route would solve the problem. While the Government wastes millions of euro in each Department, it is unable to put a 52-seater bus on this route. What grieves me is that other areas in a similar position to Blackwater have been sorted out. However, Blackwater is left in a position where it has no school transport for its children.

Some seven or eight children are already in receipt of school transport from Bus Éireann, yet their siblings are unable to gain access to school transport. That is a scandal. I have a happy letter and a sad letter. The happy one, which is from County Wexford Vocational Education Committee and which states that only 23 students from Blackwater will be categorised as eligible, was received on 13 October. On 21 October I received a letter to the effect that once the forms are processed through Bus Éireann they would receive their tickets. On 21 November the Department of Education and Science wrote to the County Wexford VEC stating that the students are not within the catchment area and will not receive school transport from Bus Éireann. That is a scandal. I am disappointed the Minister is not present to hear our plea.

I welcome this opportunity to outline to the House the Department's position regarding school transport for children residing——

The normal courtesy is to explain where the Minister is and if she is on official business. Is there a reason neither the Minister nor the Minister of State is present?

All I know is that I was asked——

I am not blaming the Minister of State.

I understand that. To answer the Deputy's question, I have no reason. I welcome the opportunity to outline to the House the Department's position on school transport for children residing in the Blackwater area of County Wexford.

One of the main objects of the school transport scheme is to provide a basic level of service for children who live long distances from schools and who might otherwise experience difficulty in attending regularly. More than 135,000 primary and post-primary pupils use the school transport scheme on a regular basis. The expenditure for school transport in 2005 will be more than €120 million which is an increase of approximately 10% on last year's outturn. This includes the cost of a comprehensive package of measures which the Minister announced earlier in the year to address the phasing out of the three for two seating arrangement on school buses. Transport costs and grant aid for children with special needs will account for approximately 33% of the expenditure in 2005. These children represent approximately 6% of the overall number of children carried each day.

I wish to focus on the specific issue of transport provision for children attending post-primary schools. For the purposes of post-primary education provision, the country is divided into catchment areas, each of which has its own post-primary centre. Under the terms of the post-primary school transport scheme, a pupil is eligible for school transport if he or she resides 4.8 km, three miles, or more from the post-primary centre in the catchment area in which he or she lives.

Eligible pupils who wish to attend post-primary schools in another catchment area may be allowed transport on school services from within the catchment boundary of the centre being attended subject to there being seats available on the school transport service and at no additional cost to the State. The pupils are responsible for getting to the catchment boundary or to the nearest school bus service within that catchment area.

An eligible pupil who is approved for catchment boundary transport is not guaranteed school transport for the duration of his or her education at that centre. As a concessionary measure, continued transport will depend on the availability of seats on the school service to that centre each school term.

Children living in the Blackwater area of County Wexford are in the Kilmuckridge catchment area. Parents who choose to send their children to the Wexford post-primary centre——

Some 23 pupils were notified by the school transport officer that is not the case.

——can only be facilitated with school transport to that centre after all other eligible pupils from within the Wexford catchment area have been accommodated and provided there are spare seats on the bus to that centre. I understand from Bus Éireann, which operates the school transport services on behalf of the Department that a number of pupils residing in the Kilmuckridge catchment area have in the past been accommodated with catchment boundary transport.

This year an issue appears to have arisen locally about the catchment boundary line. I assure the Deputy the Department is satisfied, based on the map held within the Department that children——

That is not acceptable.

——residing in the Blackwater area are within the Kilmuckridge catchment area. The school authorities in the Kilmuckridge post-primary centre have confirmed that between 30 and 40 additional children can be accommodated in that centre.

The Dáil adjourned at 10.10 p.m. until10.30 a.m. on Wednesday, 23 November 2005.
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