Dáil Éireann debate -
Tuesday, 9 Dec 2008

Vol. 670 No. 1

Adjournment Debate.

Live Register.

Deputy Brian O’Shea

The live register numbers for Waterford city and Dungarvan combined stood at 9,786 on 30 November. This compares to 6,324 on 30 November 2007, representing an increase of 54.7%. In only one year, unemployment shot up by 54.6% in Waterford city while the increase in Dungarvan was even more dramatic at 55.4%. This rapidly deteriorating position requires substantial and immediate action. An urgent first step must be the appointment of a director of employment for the south-east region who would have overall responsibility not only for job creation, but also the power to implement the necessary measures to rapidly reduce the unacceptably high level of unemployment in the area. Waterford constituency has excellent people and world class expertise but capacity building investment is urgently needed to reverse the avalanche of job losses. The appointment of a director of employment with real and co-ordinated power to work across a wide range of organisations, sectors and enterprises would be a useful first step.

The Government decision regarding the south east that most urgently needs attention concerns the upgrading of Waterford Institute of Technology to the university of the south east. I tabled a parliamentary question today to the Minister for Education and Science asking whether a decision would be reached on the application by 31 December 2008. However, for the third time this Dáil, he stated in reply that the application would be finalised in the near future. This is not only an education matter because it is absolutely vital to job creation in the region. The fact that this matter continues to be long fingered underlines the neglect of the development of Waterford and the south east by the Government parties and the failure to adopt a meaningful strategy for economic and industrial development. The lack of a university seriously handicaps the region in generating jobs in the sectors where sustainable employment can be created such as the knowledge economy and medical technologies. These sectors need positive government intervention urgently.

In recent weeks I tabled a parliamentary question to the Minister for Enterprise, Trade and Employment asking about her strategic plan for the industrial and commercial development of the south east. Her reply was insipid and lacking in urgency. Other than platitudinous references to various agencies, it contained no co-ordinated, focused vision indicating the way ahead and this is not acceptable. In repeating my demand for a Government decision on the application of Waterford Institute of Technology for upgrading to university status by year end. I reiterate my call for the appointment of a director of employment for the region to pull the various elements together in an effective way to begin the region's fight back against rapidly escalating unemployment.

Minister of State at the Department of the Environment, Heritage and Local Government (Deputy Michael Finneran)

I was asked by the Minister for Enterprise, Trade and Employment, Deputy Coughlan, to take this Adjournment matter on her behalf and I thank the Deputy for raising it. Yesterday, I attended with the Deputy a development in his constituency and I was well received by him and all colleagues in the Waterford city area.

The recent increase in unemployment is unwelcome and is an indication of the challenges that are now facing the labour market and the economy as a whole. The Government is taking specific measures to address these challenges and to ensure that job losses are minimised as much as possible. Our priority is to create an environment that will allow those who have lost their jobs to quickly return to the labour market. The enterprise development agencies along with FÁS are actively engaged in facilitating job opportunities in Waterford.

IDA Ireland's strategy for the Waterford area is to progress the development of a knowledge-based economy so that the region can compete both nationally and internationally for foreign direct investment. The key sectors being targeted are pharmaceuticals, medical technologies, ICT and international financial services. At present there are 32 IDA Ireland supported companies in Waterford city and county employing approximately 6,416 people. Since the start of 2008, IDA Ireland has announced the expansion of a number of IDA client companies with a potential to create 485 jobs.

Recent investment announcements for County Waterford include the following. In April 2008, GlaxoSmithKline, one of the largest pharmaceutical companies in the world, announced it is to invest a further €30 million in the expansion of its existing over-the-counter pharmaceutical manufacturing facilities in Dungarvan, County Waterford. This investment will create 50 new high-quality jobs over three years in the production of a product to aid people to quit smoking. In April 2008, Lancaster Laboratories, one of the largest commercial analytical laboratories in the US, announced it is expanding its operation in Dungarvan, County Waterford, following the acquisition of an Irish company, Microchem Labs in 2007. Over the next five years, 100 new high-level positions will be created.

Also in April 2008, Genzyme Ireland announced that it is to invest €130 million to create 170 highly skilled positions and significantly increase the manufacturing capacity at its Waterford facility over the next three years. The €130 million investment is to expand its sterile fill finish manufacturing operation, introduce soft gel capsule manufacture and create highly skilled positions in manufacturing, quality and engineering.

In March 2008, Teva Pharmaceuticals, formerly Ivax, announced that it is investing €65 million at its existing facility in Waterford. The investment will create up to 165 highly-skilled positions over five years in this global pharmaceutical company which specialises in the development, production and marketing of branded and generic pharmaceuticals and active pharmaceutical ingredients.

As well as marketing the region for new greenfield investment, IDA Ireland continues to work with existing clients to broaden their mandate in Ireland and to continue to re-invest in their sites within the region. IDA Ireland strongly encourages client companies to invest in research and development and provides a comprehensive research and development package to support this activity. IDA Ireland continues to develop property solutions to world-class standards appropriate to current trends in foreign direct investment. To cater for the specialised high quality intensive needs of the biotechnology and ICT sectors, IDA Ireland is in the process of developing a number of large-scale, fully serviced industrial sites throughout the country. One of these sites is at Belview, Waterford and amounts to 55 hectares.

As part of the process of developing the capabilities of the region, IDA Ireland works very closely with its partners such as local authorities, Enterprise Ireland and a range of private sector interests who supply business support services throughout the region. IDA Ireland continues to work closely with the third level educational institutions in the region so that the skill-sets necessary to attract high-value-added employment to the region are being developed. In addition, IDA Ireland maintains a close relationship with FÁS so that the requirements of industry, particularly in the areas of training and up-skilling, are being met.

Indigenous companies have also added to employment creation in the county over many years, with more than 4,000 employed in Enterprise Ireland client companies in Waterford. Enterprise Ireland supports the enterprise platform programme, a one-year incubation programme in Waterford Institute of Technology, designed to provide hands-on support and management development for entrepreneurs wanting to set up their own business, by funding eligible participants to attend. At present 17 candidates are on the programme, which commenced at the end of September 2008.

Acting Chairman (Deputy Pat The Cope Gallagher)

The Minister of State's time has concluded.

Deputy Michael Finneran

If the Acting Chairman allows me a little leeway I will include the rest of the reply, otherwise I will furnish it to the Deputy.

It is intended that during 2009 a number of START workshops will be run throughout the south-east to develop a pipeline of businesses for the region. The first of these workshops will be held in February 2009. Enterprise Ireland is planning a strong promotional campaign around this event in conjunction with Waterford Institute of Technology, Waterford City Enterprise Board, Waterford City Council, Waterford Chamber and IDA Ireland. It is hoped that this will generate inquiries from people wishing to set up businesses and to increase awareness of the various supports available.

Hospital Services.

Deputy Tom Hayes

I thank the Acting Chairman and the Ceann Comhairle for the opportunity to raise on the Adjournment the important issue of South Tipperary General Hospital. It employs 450 people and has a 275 bed capacity. More than 1,100 babies were delivered there last year and the level of surgical procedures, including day cases, is extremely high.

As a teaching hospital which has worked to incorporate changes in work practice and medical standards and has taken on various services following amalgamation with Our Lady's Hospital in Cashel, South Tipperary General Hospital has excelled at every level. The amalgamation was a major process which took many years and only concluded after the Our Lady's Hospital, Cashel, support group took a case to the High Court and secured an agreement.

Now, many years after this amalgamation, serious concerns are being expressed to me by my constituents with regard to surgery and maternity services at the hospital. There is great fear among the community. People are extremely anxious at the prospect of losing some of the many services currently available at South Tipperary General Hospital. Already cancer services have been moved, with little notice, to Waterford Regional Hospital. Many people supported this particular decision but they are now dissatisfied with the services that were put in place in Waterford. The concern is that more services will be transferred in the same manner.

The level of efficiency South Tipperary General Hospital has achieved is exceptional. It works extremely well with community services, the acute care service is particularly good and the maternity service was deemed the second best in the State by patients. A High Court case was brought to ensure the retention of services at the hospital when changes were made to the level of services at Our Lady's Hospital in Cashel. The local community is of the view that South Tipperary General Hospital is performing well, efficiently and with a genuine vision for the future.

Will the Minister of State clarify the situation for hospital staff, patients and the community in south Tipperary? Will he indicate the Government's future intentions for the hospital? Some weeks ago, a public meeting was held in Clonmel. The attendance and level of community awareness indicated the degree of concern among locals.

Deputy Michael Finneran

I am taking this Adjournment matter on behalf of my colleague, the Minister for Health and Children, Deputy Harney. The Government is committed to ensuring the delivery of the best quality health services possible in an effective and efficient way. Ensuring patient safety is of paramount importance, so that people can have confidence in the services and that the best possible patient outcomes will be achieved. It is essential that we prioritise patient safety and quality and that we organise and manage services accordingly. The priority is to provide safe services as close as possible to where people live.

The Minister is committed to ensuring the future viability of South Tipperary General Hospital as a health care facility, and the Health Service Executive is working in this policy context. Beds in the hospital continue to be utilised on a clinical needs basis and general surgery, maternity services and a 24-hour emergency service continue to be provided.

South Tipperary General Hospital is a 253-bed hospital providing acute services for a catchment population of some 135,000 in south Tipperary and the bordering areas of north Tipperary and west Waterford. Acute hospital services in south Tipperary were amalgamated in South Tipperary General Hospital in January 2007, following a major capital development to facilitate the transfer of accident and emergency, general surgery and oncology services from Our Lady's Hospital, Cashel, to Clonmel. The amalgamation process was undertaken successfully and resulted in much improved service delivery arrangements which are beneficial for both patients and health service staff.

As part of the Health Service Executive's transformation programme, the configuration of acute hospital services will continue to be reviewed in respect of quality, safety and efficiency. In this context, it is likely that the services delivered by hospitals will change to reflect a more developed primary care structure, closer integration between acute, primary and community care services at local level and more concentration of complex acute care in regional centres. The Minister is satisfied that, in this context, South Tipperary General Hospital will continue to play a valuable and significant role in the delivery of health services to its catchment population.

Deputy Tom Hayes

There was a great deal in that reply.

Deputy Michael Finneran

It is all good news.

Social Welfare Benefits.

Deputy John O’Mahony

I thank the Ceann Comhairle for selecting this serious matter for debate. I speak on behalf of people who, in many cases, have never been out of work before and who now find themselves suffering financial hardship and pressure for the first time. These are the people who helped to build the Celtic tiger in the last 15 or 20 years but are described in one newspaper headline today as the new poor.

Many of them have lost their jobs in the last six months and are in receipt of jobseeker's benefit. There are several problems in this regard. First, because of the large number of people affected in this way, there is an ever-increasing delay in processing the claims, with waiting times of up to 12 weeks in some parts of the State. Second, and this is the main point of tonight's debate, a person must be in receipt of jobseeker's benefit for more than 390 days to qualify for the Christmas bonus payment. Many of those unfortunate enough to find themselves in these circumstances have paid their taxes, levies and pension contributions throughout their working lives and are simply looking for a helping hand in their hour of need. In other words, in order to help them over the Christmas period, all they seek is payback for the contributions they have made to the State.

For example, a constituent of mine, aged 32 years, was made redundant in May for the first time. She was angry and disaffected to discover some weeks ago that the Christmas bonus covers other categories of unemployed but not her own, even though she has never before received a cent from the State. She can be forgiven for being angry and baffled, having worked all her life and paid tax and social welfare to support the Exchequer, that she is less entitled to this payment than someone who is long-term unemployed or in receipt of the back to work allowance. She remarked in an e-mail to me last week that the State does not owe her anything and that she has no desire to milk the system. All she wants is payback for the contributions she made over the years now that she is in a time of need. She has made every effort to get a job since being made redundant and she demands equity with other unemployed groups.

For young people in particular who have been in employment all their working lives, it is shocking to find themselves out of work and discriminated against in that they are unable to claim benefits that are available to people who have not made as great a contribution to the State. Many of them are finding it impossible to pay ESB and gas bills, bin charges and so on, while others who have never been in employment are entitled to the bonus. It has been suggested that such persons may seek assistance from their local community welfare officer. However, is it reasonable to expect that community welfare officers throughout the State will have the resources to help everybody in this position? It would be far better to ensure equality in the social welfare system by providing the Christmas bonus to those in receipt of the jobseeker's benefit.

Deputy Michael Finneran

I am taking this Adjournment matter on behalf my colleague, the Minister for Social and Family Affairs, Deputy Hanafin. The Christmas bonus is paid to all recipients of long-term social welfare payments. The payment was made during the first week of December, at an estimated cost of €201 million. Some 1.3 million persons, comprising 940,000 recipients and 400,000 dependants, benefited from the payment.

The focus of the bonus has always been on persons who rely on the social welfare system for financial support in the long term. These include recipients of State pension, transition; State pension, contributory and non-contributory; blind pension; widow's, widower's and invalidity pensions; guardian's payment, contributory and non-contributory; one-parent family payment; carer's benefit and allowance; disability allowance; jobseeker's allowance in respect of a continuous period of unemployment of at least 15 months in duration; pre-retirement allowance; farm assist and people in receipt of employment support payments. The bonus is also payable to recipients of certain income support payments administered by the Departments of Health and Children, Education and Science and Enterprise, Trade and Employment. It is also payable to participants in the rural social scheme, which was introduced in 2004, and operates under the aegis of the Minister for Community, Rural and Gaeltacht Affairs.

The estimated cost of extending the payment to recipients of jobseekers benefit is an additional €33 million. There are no plans at present to amend or extend entitlement to the bonus payment to these schemes and any such extension could only be considered in a budgetary context having regard to the resources available and the significant cost which would be involved.

Deputy John O’Mahony

Does the Minister think that is fair?

Deputy Michael Finneran

Supplementary welfare is available. It is the prerogative of supplementary welfare officers to provide it with regard to any particular hardship affecting a family or any bill payments that need to be made.

Deputy John O’Mahony

The Minister is a fair minded person. Does he think it is fair?

Urban Renewal Schemes.

Deputy Chris Andrews

I watched an episode of "Prime Time" last week, a programme which the public broadcaster, RTE, claimed would reveal something hugely problematic for society and the management of the regeneration process in inner city Dublin. It was most disappointing. One expected to be confronted with some huge revelations but, in fact, it was pure hype. There was nothing in the programme worth listening to or discussing. Obviously, there is a planning dispute but that is the start and end of the matter.

The real pity is that the programme conveyed an image of the docklands authority as somehow failing in its duty and role in the regeneration of inner city Dublin. That could not be further from the truth. Since its establishment in 1997, the Dublin Docklands Development Authority has transformed people's lives. It has made a huge difference in terms of social and affordable housing. People have been moved from substandard accommodation that should have been knocked down years ago to modern, bright, healthy and sustainable accommodation. That is due to the docklands authority.

The authority has tried to embrace the entire community in the area by including and consulting with everybody, be they young or old. Visit the schools, parks and community centres throughout the docklands areas, north and south, and see how they have been touched by the authority through the services supplied and delivered to the communities in the area. Recently I passed a pub on the quays, The Ferryman. Ten or 15 years ago one would have wondered what the man was doing, trying to run a pub in the godforsaken area. Clearly, the area has changed and in a positive way. The impression given by RTE, the public service broadcaster, should not prevail.

The education brief of the docklands authority is most impressive. It is involved with the School Principals' Forum and has a drama in the schools programme, a parents in education programme, a literacy programme and third level scholarship programmes. The docklands is a good news story.

Deputy Cyprian Brady

I support my colleague. I have spent many years in the area on the north side of the Liffey. The Dublin Docklands Development Authority has transformed the lives of people in inner city areas, and not just in respect of housing. There is a new community there that has integrated very successfully with the traditional community. That is solely due to the efforts of the Dublin Docklands Development Authority.

The authority is not just involved in housing. It has educational and social programmes and has provided many facilities in the area. These are used by the communities on both sides of the Liffey. The area has experienced tremendous changes. When one sees efforts to denigrate what is probably the most successful regeneration programme the country has ever had, one wonders where we are going. I invite people to visit the docklands on the north and south sides of the Liffey to see the difference. I see it in the children living in these areas. They are now more confident. There was a very bad incident at the weekend and the community is in shock, but the fact that the development authority is there and is involved so closely with the communities strengthens them and ensures there is a future for these children.

We are in a position to assist these areas after many generations of unemployment and deprivation. Children now have an opportunity to finish their schooling, progress to third level education and ultimately have the possibility of a job. That was never the case in these areas previously. For many years they experienced dereliction, unemployment and deprivation. That has changed and that is due to the Dublin Docklands Development Authority.

Deputy Michael Finneran

I thank Deputies Chris Andrews and Cyprian Brady for raising this matter. I am pleased to be able to respond positively to this motion, which recognises the solid work that has been undertaken by the Dublin Docklands Development Authority since its establishment in 1997 in managing the physical, economic and social regeneration of more than 500 hectares of the docklands. The success of the authority in tackling physical dereliction, lack of investment, inadequate infrastructure and facilities, housing shortfall, poor educational attainment and social isolation is striking.

Some key facts and statistics indicate the extent of the docklands transformation within the past decade. There are now more than 22,000 people living in the docklands, an increase of nearly 30%. The number of people employed has almost doubled to approximately 40,000. More than 750,000 sq. m. of commercial space has been permitted, 25% of the total office development in Dublin since 2002 was in the docklands and more than 5,000 housing units have been constructed and 11,000 housing units will have been delivered by 2012. Of these, 20% will be allocated to social and affordable housing.

Some landmark projects completed in recent years, under way or in the immediate pipeline include: Grand Canal square and theatre, the national conference centre, the Docklands Station at Sheriff Street, the expansion of the Point Theatre and development of the Point Village, the Sean O'Casey and Samuel Beckett bridges, the campshires and the 1 km long Royal Canal linear park. Social regeneration has been as important as physical development. The key to this is investment in education and equal opportunity. More than 30 education programmes are running in docklands schools.

The authority is a progressive body, with a clear vision. Building on the success of the past decade and following extensive stakeholder consultation and wide public engagement, the council of the authority within the past fortnight has unanimously adopted a 2008 master plan under which programmes, projects and policies will be rolled out for the next phase of this regeneration project.

Overall, the docklands continues to be among the largest areas of the city with the opportunity of achieving a sustainable built environment where living, working and leisure can be integrated in a distinct, high quality and coherent urban quarter served by modern public transport infrastructure. There are challenges ahead and the economic downturn will have an effect on the pace of development and present challenges in attracting new businesses. It also remains important to attract more families into the docklands and integrate them successfully with existing communities.

I have every confidence in the capacity of the authority fully to address its regeneration objectives and my Department will continue strongly to support its endeavours. I am pleased to have accepted an invitation from the authority to address its sixth social regeneration conference next January. The theme of the conference, which is likely to be attended by several hundred delegates from local community groups, local State bodies and the business community is, fittingly, Continuity of Delivery, with a special focus on education and quality of life. I look forward to engaging with the authority and all the stakeholders at the conference.

I again thank Deputies Chris Andrews and Cyprian Brady for raising this matter in the House. I am confident in the ability of the authority, assisted by interaction between the political system, Dublin City Council and others, to advance this project, which continues to have the support of my Department.

The Dáil adjourned at 11.05 p.m. until 10.30 a.m. on Wednesday, 10 December 2008.