Dáil Éireann debate -
Wednesday, 27 May 2009

Vol. 683 No. 4

Work Permits.

Deputy Michael D. Higgins

The matter I raise on the Adjournment concerns the urgent need for the Minister for Enterprise, Trade and Employment to reconsider changes she proposes to make to the work permit scheme on 1 June, the need for her to discuss with the relevant workers such proposals and the need for such workers, their unions and the advocacy organisations to be invited to participate in a consultation process given that these workers have made such a significant contribution to Irish society and the Irish economy.

I wish the Minister of State, Deputy Calleary, well in his new appointment. However, I hope he begins his work in that Department by relaying a reasonable argument back to the Department and by being able to change minds where it is necessary and in the public interest to do so.

What is being suggested by way of changes to the permit system on 1 June takes no account of the contribution made by work permit holders over a long period of time. Recently, a press release referred to a worker who has been here for nine years and whose family is part of Irish society. If made redundant, in order to find an alternative job, he must wait until that job has been advertised for a minimum of two months. At three months, such a person is illegal in this country and loses rights, including the right to sustain his or her family. It is in breach of every principle of worker protection, including the protections provided by the International Labour Organisation and contained in the conventions Ireland has signed, to put such workers in a vulnerable position.

I have travelled with Members of this House to the United States of America making the case for those Irish people living in the shadows there and anxious to achieve some status and to be recognised. They point out that they have paid their taxes and they want some form of recognition in the United States of America. Could we imagine a situation if they were all given two months to get out of the United States of America yet that is precisely what is being proposed in regard to work permit holders who become redundant in Ireland? What is proposed is unnecessary and is an action by stealth. It is a device to make the position of such people impossible in terms of staying here.

I wish to indicate where my party stands on this matter. I have long been an advocate of Ireland signing the convention guaranteeing the rights of all migrant workers and their families but I have been told by successive Ministers that Ireland will never do so under this Government. I believe in the right of workers from wherever they come to enjoy an equality of rights. These changes in the work permit system do not accord an equality of rights. We look for rights abroad for our own people but over those for whom we have responsibility, we refuse to exercise the same principle.

Over a period, such migrant workers will have paid PRSI and taxes totalling approximately €1.5 billion. They will have paid €10.986 million in registration fees to various bodies and to the Garda national immigration bureau. They will have paid €15.5 million in work permit fees. Some €140 million will have been paid by international students. That is separate from what has been spent by migrant workers in this economy, approximately €2 billion.

We are talking about 30,000 people. There has been a massive reduction of 60% in the number of new work permits issued in the past two years. I appreciate that I am addressing a new Minister of State and I wish him well. However, I do not want him to say tonight that this is a matter over which he has no control. The Government has control and it should now postpone this until we have had adequate talks, so that we may put a different, fairer and more humane system in place.

Minister of State at the Department of Enterprise, Trade and Employment (Deputy Dara Calleary)

I am grateful to Deputy Higgins for raising this issue and I thank him for his good wishes.

Since 2004 Irish policy has been to have, where possible, our general labour and skills needs met from within the workforce of the EU. For strategic skills and labour shortages in designated occupations in key economic sectors such as healthcare, information technology and financial services, our policy is to issue employment permits for the employment of non-EEA nationals. The various schemes that give effect to such policies were introduced under the Employment Permits Act 2006. Overall, the Irish experience of immigration has been a positive one with newcomers bringing to Ireland a wide range of economic, social and cultural benefits. The contribution of immigration to the growth of the labour force has been particularly significant.

Economic migration policy has been one facet of industrial development and labour market interventions that facilitated the growth of employment to unprecedented levels in this country. We have now entered more challenging times and the policies that served us well are being enhanced and refocused to ensure that they remain relevant to changing economic conditions. An appraisal of our employment permit arrangements has reaffirmed the long-standing Government policy that preference is given to Irish and EU nationals in filling positions when job vacancies arise. However, our review has also shown that there will be a continuing need for the availability of suitably skilled and qualified immigrant labour to meet specific skills needs where they arise. Therefore, the changes to the administrative arrangements of the employment permit schemes, from 1 June 2009, are intended to strike a balance between our Community preference obligations and the need to ensure that employers are facilitated in meeting high skills needs, if necessary from outside of the European Economic Area.

Consultations on the revised arrangements took place directly with the Irish Business and Employers Confederation and the Irish Congress of Trade Unions. Congress in turn facilitated consultations on the new arrangements with its member unions and the Migrant Rights Centre of Ireland, MRCI, all of whose views were received by the Department of Enterprise, Trade and Employment and taken into account by the Government in deciding on the final shape of the employment permit schemes.

I should emphasise that work permits will continue to be made available for jobs in eligible job categories where employers have been unsuccessful in their genuine efforts to recruit suitable candidates from within the labour force of the European Economic Area. The measures to be introduced are principally concerned with strengthening the qualifying conditions for the granting of new work permits to non-EEA nationals, for occupations requiring lower skills or qualifications and vacancies for which could increasingly be filled by Irish or EU citizens. The operation of the green card scheme will continue largely unchanged in recognition of the importance of strategic high-level skills to the continuing development of a knowledge-driven, high value added economy.

It should be noted that at any one time no more than 1.5% of the labour force are employment permit holders. Significantly, none of those in possession today of a current employment permit is affected by the revised eligibility criteria for new and renewed permits. Only first-time non-EEA entrants to the system on and from 1 June will be subject to the new permit conditions. Specific changes to eligibility criteria are being implemented for new work permits, renewal of existing permits, work permits for spouses or dependants of principal permit holders, and for permit holders who become redundant.

The principal changes are as follows. From 1 June 2009, for new work permit applications, the labour market needs test will be strengthened by requiring an eight weeks FÁS-EURES advertisement, currently four weeks, plus six days national press advertising, currently three days. I again emphasise that it has been, and continues to be, Government policy to require that employers make a meaningful effort to give preference to Irish and EEA nationals in filling job vacancies. Currently, a vacancy, in respect of which an application for a work permit is being made, must be advertised with the FÁS-EURES employment network for four weeks and additionally in local and national newspapers, for three days, to ensure that, in the first instance a national of the EEA or Switzerland, or in the second instance a national of Bulgaria or Romania, cannot be found to fill the vacancy.

The OECD has recently reported that the strengthening of the labour market needs test is one of the measures most widely adopted by OECD member states in responding to the pressures on labour markets arising from the impact of the world recession. Another key change is that vacancies for work permit applications received on and from 1 June 2009 will be subject to labour market needs tests at both first application and permit renewal stages, and a higher renewal fee. The renewal of work permits for non-EEA nationals accounted for some 50% of the permits issued in 2007 and 2008 but under existing procedures, applications for renewals are not subject to a labour market needs test.

I am aware of the concerns that have been expressed on this issue and I met the MRCI today to consider them. I will give Deputy Higgins an undertaking to meet with the MRCI regularly during the implementation phase of the new arrangements to ensure that its concerns do not arise, in practice, on the ground. We will continue to keep open our relationship with the MRCI to ensure that if those concerns arise they will be dealt with.

Deputy Michael D. Higgins

Will the Minister of State agree to postpone?

Deputy Dara Calleary

No, I will not.

Cross-Border Investment Programmes.

Deputy Joe McHugh

I want to address two themes. The first is the need for greater co-operation between northern and southern enterprise agencies and the second is the need to develop Ireland's high-end small to medium enterprise sector as a path out of recession.

Since this House resumed after last summer's recess I have mentioned the Comprehensive Study on the All-Island Economy on numerous occasions. That study supplements the Good Friday Agreement. it is a long and detailed document and was jointly written by the then Minister for Foreign Affairs, Deputy Dermot Ahern and the Secretary of State for Northern Ireland at the time, Peter Hain, M.P. It must have cost the British and Irish Governments many thousands to publish. Since November 2006 it has been completely ignored and the acronym, SPOTS, strategic plans on top shelves, is very apt.

The study states: "Companies should be encouraged to treat Ireland as one commercial zone rather than two separate entities". Specifically it notes that, "Enterprise Ireland and Invest NI offer a wide range of programmes, providing largely parallel supports to SMEs on both sides of the Border". This is the case of Enterprise Ireland versus Invest NI and the case I am putting on the floor of the House tonight indicates a big anomaly, which puts companies on this side of the Border at a comparative disadvantage.

Enterprise Ireland and Invest NI offer different packages to small to medium sized exporters. A successful company, whose name I shall give the Minister of State after this debate, has been offered a full grant aid package by Invest NI. Enterprise Ireland refuses to provide a grand aid package and is only offering equity support. Therein lies a need for consistency.

The Good Friday Agreement is not just about peace in Northern Ireland. It envisaged an all-island economy and Ireland as one commercial zone. Ireland's membership of the eurozone and Britain's commitment to its traditional sterling currency prevent us from developing a genuine all-island economy, but we can address some of the less fundamental differences, including this one. In November 2006 both jurisdictions bought into the comprehensive study's notion of a bilateral agreement. This country will only emerge from recession if we develop an economy of small to medium exporting companies.

In the case before us we have a company that can generate €5 million in export revenue for Ireland and ten high quality jobs can be created with the right support. The company wants to locate itself in Moville, County Donegal. Given our regulations, this highly mobile company which has already located from India and the USA can very easily locate itself 20 miles from Moville in Derry city. Successful companies cannot afford to give away equity. As Enterprise Ireland has designated this company HPSU, high potential start up, we need to get our house in order.

Deputy Dara Calleary

I thank the Deputy for raising this matter on the Adjournment. The comprehensive study on the all-island economy was commissioned by the British-Irish Intergovernmental Conference and was completed towards the end of 2006. This blueprint for all-island economic co-operation set out the economic rationale for North-South collaboration, as well as concrete proposals for economic initiatives. The case for an all-island approach is made where market failure arises from the existence of the Border or where public goods and services could be more efficiently produced on a co-ordinated basis.

In the area of enterprise, the study identified a number of areas where co-ordinated policy intervention could prove beneficial to both jurisdictions on this island. These included co-operation on trade and investment promotion, enhanced co-operation in support of enterprise and business development and an improved regulatory environment. This latter aspect included the signing of a memorandum of understanding between Enterprise Ireland and Invest Northern Ireland concerning international trade missions or fairs. Enterprises from either jurisdiction can participate in selected events organised by both agencies. The memorandum of understanding provides a practical and sensible approach to enabling companies North and South to benefit from the overseas trade activities of both organisations.

The clients of Enterprise Ireland and Invest Northern Ireland are faced with similar challenges regardless of where their operations are located on the island. There are issues with regard to small size, openness, peripheral geographical location, skills needs, pressure on infrastructure and in the area of developing world class research and development structures for the knowledge economy. However, the Irish Government and the Northern Ireland Executive are working together to ensure that the potential for development is exploited and, in keeping with this goal, Enterprise Ireland's approach is to work in partnership with Invest NI and Inter Tradelreland in an effort to maximise the benefits to all their clients.

For example, Enterprise Ireland and Invest Norther Ireland ran a cross-Border enterprise incubation programme — the transform programme — which commenced in September 2007 with 43 participants from both jurisdictions. This was a ten-month, full-time programme for potential entrepreneurs who wished to set up a new export-orientated knowledge intensive business. The programme covered the six counties in the Border region of the Republic and the six in Northern Ireland. It concluded in August 2008 and more than 60% of the businesses involved are still trading successfully.

In April 2009, the two agencies launched a new initiative, the propel ideas into business programme, which is a follow-on from transform programme and which is strongly supported by the Special EU Programmes Body. This is a major business innovation and development programme, geared towards producing up to 12 new start-up companies in the Border counties. It targets entrepreneurs who have ambitious business ideas with the objective of putting them through an intensive business development programme to make their projects investor ready.

Meetings involving the boards of Invest Northern Ireland, IDA Ireland and Enterprise Ireland have taken place on an annual basis. In addition, regular contact is maintained at executive level. Enterprise Ireland and IDA Ireland have participated in an interagency forum with colleagues from Invest Northern Ireland, Inter Tradelreland and Enterprise Northern Ireland. This represents an important opportunity to set out the strategy of Enterprise Ireland and IDA Ireland in working to address the common challenges and opportunities posed by the development of the all-island economy and to participate in an active discussion with relevant agencies.

Inter Tradelreland has a central role to play in assisting businesses North and South in tapping into the all-island marketplace. The body is implementing a wide range of North-South programmes which provide opportunities for businesses to improve their competitive performance.

In so far as Enterprise Ireland is concerned, financial support is tailored to the requirements of individual companies on the basis of clearly demonstrated need. The agency has been very successful in providing financial support towards the cost of establishing, growing and expanding businesses. Enterprise Ireland funding is typically a mix of equity and grants and is specifically intended to meet expenses in the areas of research and design, job creation and acquisition of capital assets. The enterprise stabilisation fund is a recent addition to its portfolio of financial assistance. This fund was established by the Government in order to provide targeted support to indigenous companies to assist them in the exceptionally difficult business environment in which they are operating at present.

Enterprise Ireland's grant aid offers must comply with the stipulations of the European Commission with regard to state aid. Grants for industry are one instrument which can be used in order to develop enterprise and Enterprise Ireland's broad view is that the differential aid rates allowed in the BMW region have been of benefit not solely with regard to the rate of start-ups, but also in the context of the development of existing companies. Non-financial supports are available for all Enterprise Ireland-supported projects, such as access to its overseas office network for marketing-market research, technical-technology and training advice, knowledge events, seminars and specific programmes aimed at entrepreneurs, such as the enterprise start, enterprise platform, and the enterprise development programmes.

It is in the interest of all parties to continue to work together for the benefit of the all-island economy. I am confident that every effort will continue to be made in this regard.

Social Welfare Benefits.

Deputy David Stanton

Responsibility for the domiciliary care allowance was transferred from the HSE to the Department of Social and Family Affairs on 1 April 2009. Since the transfer took place, many children who previously would have received the allowance — without question — are being refused it. This is particularly the case with regard to children suffering from autism and mental disabilities. Deputy Creed and I are extremely concerned about that fact and that is why we have raised this matter.

In reply to a parliamentary question I tabled yesterday, I was informed that from 1 April to 22 May some 445 applications were received within the Department. Some 249 have been processed and of these 149 were refused. The refusal rate is, therefore, almost 60%, which is extremely high. From the information we have received, this represents a major change.

When it was administered by the HSE, there were no agreed medical guidelines for the scheme. These guidelines were only introduced recently and the application form places an emphasis on physical rather than mental or intellectual disabilities. If one does not tick the box which indicates that a person has a physical disability, one will probably not be awarded the allowance. Is the change that has occurred evident to everyone? I want to ensure that it is brought to the Minister's attention and that she and her Department will reconsider the position. I am sure she would agree with me that a child with autism who might, physically and in every other way, be fine may need full-time care because he or she may not realise what he or she is doing at all times and could be a huge danger to himself or herself.

As far as I am aware, an announcement was not made with regard to the change to which I refer or the new medical criteria which apply. In addition, a debate has not taken place in respect of these developments. I would be disappointed to think that the new criteria are being used as some form of money-saving measure or as another cutback.

This is an extremely important matter. It relates to children who are extremely vulnerable and their parents, who are already under a great deal of pressure. If the criteria have been changed in order to restrict the payment of the allowance, I would like the Minister to make a statement to that effect so that people might be informed as to the position. If they have not been changed, then we must examine how the allowance is being administered. The information available to us indicates that a change has taken place and that the allowance is more difficult to obtain. In addition, it is no longer being paid in respect of children who previously received it. I request that consideration again be given to this important issue.

Deputy Michael Creed

I suspect that having a child diagnosed with a disability is probably one of the more traumatic experiences for parents. At my constituency office, I have met the parents of young children who were recently diagnosed with autism. Subsequent to the assessment of disability, these people were informed with regard to their entitlements. They can avail of the incapacitated child tax credit, an entitlement to certain medical facilities and, with regard to autism, there is the domiciliary care allowance and home tuition. Every step of the way, these parents are being obliged to fight against the system in order to access the services to which they are supposed to be entitled.

In recent weeks, it has come to my attention and that of Deputy Stanton that there has been a change in the manner in which people's entitlement to domiciliary care allowance is adjudicated upon. The relevant figures give some cause for concern. For example, some 60% of the 249 applications reviewed under the new criteria were rejected. That is an extraordinarily high refusal rate. I am similarly concerned with regard to the relevant tax credit.

I hope that there has not been a change in Government policy. I also hope that restrictions have not been put in place with regard to people's entitlement to domiciliary care allowance. However, I am extremely concerned with regard to the way in which the new regime is being administered. I do not know, for example, whether this is purely an administrative issue which has not yet been brought to the attention of the Minister.

I implore the Government to reconsider the position with regard to the allowance in a generous manner. Those who need it are vulnerable people who are trying to survive in difficult times and they deserve our support in every possible and tangible way. Domiciliary care allowance is but one way in which we can provide them with practical assistance.

Deputy Dara Calleary

The transfer of the domiciliary care allowance scheme from the HSE to the Department of Social and Family Affairs arises from a Government decision on 28 February 2006 to reallocate certain functions between Departments and agencies as part of the health service reform programme. The domiciliary care allowance scheme, since its transfer to the Department, has been placed on a statutory basis with primary legislation provided for in the Social Welfare and Pensions Act 2008. Prior to the transfer, the eligibility criteria for the scheme were set out in a circular from the Department of Health and Children. The medical criteria set out in the Department of Health and Children circular states that children who have a severe disability requiring continual or continuous care and attention which is substantially in excess of that normally required by a child of the same age may qualify for the domiciliary care allowance scheme. The medical criteria set out in Social Welfare and Pensions Act 2008 require that "the child has a severe disability requiring continual or continuous care and attention substantially in excess of the care and attention normally required by a child of the same age".

As there were no agreed national medical guidelines for the scheme while it was administered by the HSE, an expert medical group was established in advance of the transfer of functions to examine this issue. This group was chaired by the Department's chief medical adviser and comprised senior medical personnel from the HSE as well as eminent professionals in the areas of physical disabilities that affect children and child psychiatry and psychology. The primary purpose of this group was to agree a set of consistent and objective guidelines for use nationally in determining eligibility of children for the scheme. The report of the group was reviewed independently by external medical experts.

The expert medical group considered that the most appropriate way for the Department to assess medical eligibility was by assessing evidence submitted by the claimant rather than by individual examination by the Department's medical assessors as they are not involved in advice or treatment of the child. Since 1 April 2009 the Department has accepted new claims for domiciliary care allowance. The new process operating in the Department involves submission of a detailed statement by the parent or guardian of the child, a detailed statement by the child's GP and any other relevant evidence from qualified experts who have examined the child. This evidence is assessed by designated departmental medical assessors who have received special training.

Eligibility for domiciliary care allowance is not based primarily on the medical or psychological condition but on the resulting lack of function of body or mind necessitating the degree of extra care and attention required. Each application is assessed on an individual basis taking account of the evidence submitted. In the case of an application refused on medical grounds, the applicant may submit additional information and/or ask for the case to be reviewed by a different medical assessor designated for this task. Where a person is not satisfied with the decision of a deciding officer he or she may appeal the decision to the social welfare appeals office.

I recognise the comments of the Deputies regarding the specific condition and I will contact the Minister in respect of autism and revert to the Deputies with a response.

Deputy Michael Creed

There is no mention of autism in the reply.

Special Educational Needs.

Deputy Frank Feighan

I thank the office of the Ceann Comhairle for taking this matter, the provision of alternative accommodation for a special needs class in County Leitrim.

Last year, parents of children attending a class for children with a mild learning disability in St. Patrick's National School, Drumshanbo, were alarmed at the proposal to close down the class. The inspector has said the class will be suppressed with effect from 31 August 2009. The board of management has not yet exhausted all viable options for the class to remain open. The children are to be placed in classes with people with more severe disabilities. The children who attend the class in St. Patrick's come from a wide geographical area, from Arigna, County Roscommon, Cleveragh, County Sligo, Aughacashel and Leitrim village. If the class closes down the only options are the Mercy in County Sligo or Killoe, County Longford. This is too far for parents and children to travel.

The Minister for Education and Science said the class would be put out of the Enterprise Centre, Drumshanbo, because of health and safety problems. Now, parents, students and teachers are given priority for funding to relocate to the Marian College, Mohill, which is now vacant. The VEC is willing to accommodate the class provided a section of the building is made safe. Funding is needed to adapt the building to the needs of the children and the parents and children have no desire to travel to schools in County Sligo or County Longford. Parents believe these children are entitled to be provided with an adequate classroom for education in County Leitrim. Teachers are in agreement with the relocation and this is a win-win situation for parents, teachers and most importantly for the pupils. I ask the Department to provide funding to rectify this unfair and unjust situation.

Deputy Dara Calleary

I thank Deputy Feighan. I am taking this Adjournment Matter on behalf of my colleague, Deputy Batt O'Keeffe, Minister for Education and Science. The outreach classes referred to by Deputy Feighan are attached to St. Joseph's Special School, Ballytivnan, County Sligo. The children attending these outreach classes have a diagnosis of moderate to severe to profound general learning disability or multiple disabilities. The current staffing allocated to these outreach classes consists of two teaching posts and five special needs assistant posts to cater for the special educational needs of the 11 pupils attending the classes.

The Government is committed to ensuring that all children with special educational needs can have access to an education appropriate to their needs preferably in school settings through the primary and post primary school network. This facilitates access to individualised education programmes, fully qualified professional teachers, special needs assistants and the appropriate school curriculum. The Department's policy is to ensure the maximum possible integration of children with special educational needs into ordinary mainstream schools within the child's community where this is in the best interests of the child and those with whom he or she is to be educated. However, there may be circumstances where full integration is not in the best interests of some children. In these cases provision is made in special schools or special classes attached to mainstream schools.

Such special schools and special classes are dedicated to a particular disability group and each operates at a specially reduced pupil-teacher ratio. These special schools and special classes attract higher rates of capitation funding and are entitled to avail of the special school transport service and the school bus escort service.

The National Council for Special Education, NCSE, through the local special educational needs organisers, is responsible for processing applications from primary and post primary schools for special educational needs supports. The NCSE operates within the Department's criteria in allocating such support. The responsibility also includes identifying appropriate educational placement for individual children with special educational needs.

Officials in the Department of Education and Science have been in contact with the NCSE regarding the matter raised by Deputy Feighan. The NCSE has informed the Department that the school has been liaising with the local special educational needs organiser regarding the possibility of establishing the special classes at an alternative location. The NCSE has advised that it is currently considering the matter and is continuing to liaise with the school authorities in this regard.

Priority will continue to be given to provision for children with special educational needs. The Government will build on the progress achieved in recent years which has seen a huge increase in resources for special needs. The NCSE will continue to support schools, parents, children and teachers. I thank Deputy Feighan for giving me the opportunity to clarify the position and to indicate that the local special educational needs organiser is endeavouring to resolve the issue.

The Dáil adjourned at 9.20 p.m. until 10.30 a.m. on Thursday, 28 May 2009.