Adjournment Debate

Social Welfare Appeals

Deputy Bernard J. Durkan

I thank the Ceann Comhairle for allowing this matter to be taken on the Adjournment this evening. It is unfortunate that I introduce a subject of this nature so early in the new Dáil session. I attribute no blame to the new Minister for Social Protection, Deputy Joan Burton, or to the Minister of State, Deputy Kathleen Lynch, who I congratulate on their elevation to office. I wish them both many years of success answering similar questions in the House.

A person in my constituency, who originally came from Donegal, was awarded jobseeker's allowance, allegedly in error. The lady in question has a husband, who is unemployed, and two children. They have serious debt problems, as have many other people in the country. They have no means of subsistence other than the jobseeker's allowance, which it is claimed was awarded in error.

A strange thing occurred during the recent general election campaign. An oral hearing was held in Tullamore, County Offaly. Evidence was submitted to the hearing by the applicant, and the Department appealed the decision to grant the allowance on the grounds that it was made in error. I take strong exception to the decision made at the oral hearing. Soon after the hearing, the lady was informed that her assets were sufficiently large to deem her ineligible for jobseeker's allowance. The ineligibility was based on alleged assets of €148,000, which was the estimated value of approximately 14 acres of bogland in a remote part of County Donegal. I mean no disrespect to Deputy McConalogue or to my colleagues from County Donegal. Suffice to say the land was not on a main road leading to anywhere, was not near a financial services centre and did not have road frontage. It was nothing more than bogland with access to commonage for the owner and 20 or 30 other people.

A valuation was previously carried out by an auctioneer and valuer for the purpose of obtaining a loan and, of course, the details differ in such a situation, which is how the figure of €148,000 arose, with no disrespect to the auctioneer and valuer. In my opinion, however, the land is worth nothing in the present climate. I offered to visit Donegal with the investigating officer to see for myself what exactly the property is worth. My claim is that it is worth nothing or, if it was saleable and was put on the market at present, it might make up to €20,000. However, there might be no offers, as with many other properties.

I would be grateful if the Minister would give me an opportunity to meet the relevant officer onsite. I am happy to travel that distance to prove a point, as the Minister herself would do and has done on many occasions in similar situations, as I believe a grave injustice has been done to this lady, who is now my constituent. As I have said, this family are in dire straits. They have no resources and no income from any source, good, bad or indifferent, and are likely to require serious discussions with their banks in the immediate future.

I thank the Minister for dealing with the debate. I would be grateful if she could facilitate a review.

Minister for Social Protection (Deputy Joan Burton)

I am aware Deputy Durkan personally attended the appeal in this case. The matter arises from the review of a jobseeker's allowance claim in July 2009. The claimant was assessed with the capital value of farmland which she owns in Donegal and which she is neither using personally nor leasing to anybody else. She was assessed with weekly means of €570 based on the capital value of the farm. As her means were in excess of the statutory limits for receipt of the jobseeker's allowance, her claim was disallowed with effect from 12 August 2009.

She appealed this decision to the social welfare appeals office and her appeal was heard by a social welfare appeals officer on 15 February 2011. The appeals officer, having considered all the available evidence, disallowed her appeal after conducting an oral hearing.

Payment of jobseeker's allowance is subject to, among other things, the condition that the claimant must satisfy the means criteria. The rules as to calculation of means are set out in the relevant social welfare legislation. This legislation provides that, in assessing the means from property, land is assessed on its capital value basis where the claimant owns or has a legal interest in the land, and is not resident on the land; is not personally using the land; and legal possession of the land has passed to the person leasing the land so that the claimant cannot repossess it while the person leasing the land continues to fulfil the conditions of the lease. In this case, the person owns the land but is not leasing it on an 11-month lease. Consequently, it is assessed under the rules on its capital value.

The claimant put the farm up for sale and the asking price by her auctioneer was €175,000. The social welfare inspector who investigated the means for the review took the certified value of the land as set out by the auctioneer. The amount of means assessed from the property is €570 per week which is in excess of the statutory limits for receipt of jobseeker's allowance and her claim was refused on 12 August 2009.

While a formal decision issued to her advising that her claim had been disallowed, an administrative error was made in recording this decision. She was inadvertently paid jobseeker's allowance, equivalent to the full personal rate, qualified adult rate and two child dependants from 12 August 2009 to 15 February 2011. The claimant appealed the decision to disallow her claim to the social welfare appeals office. The Department submission and papers were sent to the social welfare appeals office on 15 August 2009. There was an oral hearing of the appeal on 11 February 2011 by the appeals officer. The appeals officer, having considered all the available evidence, disallowed the appeal.

As Deputy Durkan is aware, the person concerned applied for and is currently in receipt of supplementary welfare allowance since the stopping of the jobseeker's allowance payment, and this is now being investigated.

Hospital Services

Deputy Charlie McConalogue

I thank the Ceann Comhairle for allowing discussion of this important matter for the people of the north-west region, in particular Donegal, which I represent. It is an issue of which members of the public, in particular those who may have a relative who has suffered from cancer and needed radiotherapy services, are only too aware. To have to travel to either Galway or Dublin, as is currently the case, is simply not an acceptable situation for patients coming from Donegal and the north-west region.

In recognition of this issue, a decision was taken by the previous Government to come to an agreement with the Northern Executive to have a radiotherapy unit built at Altnagelvin Hospital in Derry. This was on the basis that the Irish Government would contribute to and be a partner in the building of that unit, and would put in place a service agreement in order that patients from the Republic would use the service until 2020. Given the Northern Executive signed up to this agreement with the Irish Government, for the Northern Minister, Mr. McGimpsey, to yesterday unilaterally announce he was not proceeding with the building of this radiotherapy unit is unacceptable.

Why did the Minister, Mr. McGimpsey, make no advance contact with the Department of Health and Children in the Republic to inform it of the situation? How can one enter an agreement and a partnership with others to take a particular course of action and then, without consultation, simply reverse that position? I am disappointed the Minister for Health and Children, Deputy James Reilly, has not taken the time to come to the Chamber today to account for this. Has the Minister of State, Deputy Kathleen Lynch, who is present, or the Minister, Deputy Reilly, had contact with the Northern Minister, Mr. McGimpsey, in this regard? Have they had contact with the Northern Ireland First Minister or Deputy First Minister?

It is not acceptable that the Northern Executive would act in this manner and in such bad faith with the Executive here. It is very important the new Ministers are not soft in this regard. They should not accept this or agree to discuss it down the line. A clear message must be given that this type of action will not be tolerated because it will not just be in regard to cancer services, on which there is current co-operation. There is also cross-Border co-operation in regard to, for example, the construction of the A5 Derry to Aughnacloy road, on which there is agreement between the Northern Executive and the Irish Government. If this is how the people of the north west are to be treated in this situation, it bodes ill for cross-Border co-operation in the future.

There has been much recent investment in Letterkenny General Hospital, particularly in regard to symptomatic breast cancer services, with Letterkenny General Hospital acting as a satellite centre for Galway hospital, so patients in the north west can get the same level of service as they would if they presented in Galway itself. We need to expand this to ensure the investment made in symptomatic breast cancer services and other services in Letterkenny General Hospital is maintained and developed in these difficult times, and also that the service is expanded through the provision of a radiotherapy service in the north west.

I ask the new Government, as a matter of urgency, to contact the First Minister, the Deputy First Minister and the line Minister, Mr. McGimpsey, MLA, on this issue and immediately put in place a timeline to ensure radiotherapy services are developed in Altnagelvin, the new unit is built and people from County Donegal and the north west region get acceptable access to the radiotherapy and comprehensive cancer services they require.

Minister of State at the Department of Health and Children (Deputy Kathleen Lynch)

I thank Deputy McConalogue for raising this important issue. I apologise on behalf of the Minister for Health and Children, Deputy Reilly, who had a prior engagement and therefore I am taking this Adjournment matter on his behalf.

I welcome the opportunity to address the House on this issue. The Government is committed to ensuring a high-quality radiotherapy service for the entire population of Ireland and this includes close collaboration with Northern Ireland for services in the north west. Yesterday, the Minister, Deputy Reilly, wrote to his counterpart Minister in the North, Mr. Michael McGimpsey, MLA, to reaffirm this commitment to the Altnagelvin project and to confirm the substantial capital and revenue contribution already promised in respect of radiotherapy patients from the South. On average, approximately 24,000 new cases of invasive cancer, including non-melanoma skin cancer, are diagnosed in Ireland each year. Current trends indicate that the number of cancers diagnosed each year is likely to double in the next 20 years. It is against this background that the HSE's national cancer control programme is being implemented. Its goals are better cancer prevention, detection and survival through a national service, based on evidence and best practice. Part of the programme is the implementation of the national plan for radiation oncology which would provide the national infrastructure for radiation oncology for around the next 25 years and beyond.

Phase 1 of the plan involves the construction of new facilities at Beaumont and St. James's hospitals, with four linear accelerators in each. These new centres have just been completed and will become operational in coming weeks. The two facilities, together with St. Luke's Hospital in Rathgar, now form the St. Luke's Radiation Oncology Network for Dublin mid-Leinster and Dublin north east, increasing the capacity in that region by 50%. This network, together with facilities at Galway University Hospital, Cork University Hospital and services provided under service level agreements with theWhitfield Clinic in Waterford and the Mid Western Hospitals Trust in Limerick will provide sufficient capacity to deal with patient needs until at least 2015. Phase 2 of the NPRO will provide additional radiation oncology capacity at St. James's and Beaumont hospitals, Cork University Hospital and Galway University Hospital, with satellite centres at Limerick and Waterford regional hospitals.

For patients in the north west, however, the Minister recognises there are particular geographic concerns that need to be addressed. For that reason, he believes that the best option in terms of improving geographic access for these patients to radiotherapy services is to facilitate access to services as part of North-South co-operation on cancer. This approach includes access in the short-term to services at Belfast City Hospital under a service level agreement which has been in place since 2006. We will also continue to progress the proposed joint initiative at Altnagelvin. Given the proximity of Altnagelvin to many areas of County Donegal the centre provides the optimum solution for Donegal patients. The director of the national cancer control programme agrees that the Altnagelvin development will provide a cost-effective, patient-centred solution to the provision of radiotherapy for Donegal patients who, as the Deputy noted, currently travel long distances to either Galway or St. Luke's in Dublin for treatment.

The Government is committed to working in partnership with our Northern Ireland counterparts on the development of this new facility. It is estimated that Irish patients will comprise roughly one third of the number of patients who will attend the new centre for radiotherapy services and, therefore, our contribution will equate to approximately one third of the full cost of the radiotherapy facilities. The HSE's national cancer control programme has nominated relevant experts to the project's working groups and the Minister knows progress is being made in agreeing the clinical output specifications for the project. The proposed development at Altnagelvin is substantial in scale, with high capital and revenue costs because of the highly specialist and complex nature of the services which will be provided. The Minister recognises the matter is being brought forward through the usual business case process within the Northern Ireland health services and my Department will continue to provide all the information needed to help the planning process to continue.

The Minister is happy to reaffirm the Government's commitment to this vital radiotherapy project which will benefit cancer patients on both sides of the Border. I reiterate he has written to the Minister, Mr. McGimpsey, MLA, confirming our support, both practical and financial, in this regard. In the knowledge that up to 50% of patients may need radiotherapy at some time during their cancer journey and that the number of cancer patients will double over the next 20 years, we need to plan now for effective treatment so that patients can avail of appropriate treatments in the future. The Minister looks forward to continued collaboration on this and other projects of benefit to patients in both jurisdictions.

The Deputy can be assured of our commitment to the project. No later than yesterday, the Minister was in touch with the relevant Ministers in Northern Ireland.

Rail Network

Deputy Thomas P. Broughan

Metro north is the long proposed, 18.8 km part-underground system from Dublin city centre to Swords via Dublin Airport and it is critical for developing fixed-line connectivity in the greater Dublin area and the important, growing urban region of Swords. Therefore, at the start of the 31st Dáil, it is crucial to reiterate the Labour Party's and this Government's commitment to delivering this wonderful commuter rail project. It is the case that the vast bulk of the projected €34 billion Transport 21 expenditure has been spent on road projects to date, with very little on public and commuter transport.

Metro north is an exciting and much welcome development for my constituency, as it is for the Minister's, and for the whole of the Dublin and mid-Leinster region. It will also form part of a crucial new commercial corridor across Dublin's northside. Fingal County Council, in evaluating and supporting the project, has already published an impressive document, An Economic Development Strategy for the Metro North Economic Corridor, with a comprehensive plan for the economic and social development of all the metro north area. Many business leaders in Dublin and Leinster have also been supportive of the project because of the infrastructural enhancements it will provide and its positive economic impacts. In addition, I understand that the cost-benefit analyses of metro north that were undertaken by the RPA and all five of the original bidders were very positive. The Government will shortly produce a jobs budget. In addition to enabling jobs in 2011 and 2012, metro north will provide a desperately needed 7,000 construction jobs each year and up to 14,000 jobs in the wider economy. In general, previous research by the ESRI stated that in the long run GNP increases by €0.4 billion for every €1 billion spent on infrastructure.

Again, I congratulate Mr. Frank Allen, the chief executive of the Railway Procurement Agency on his and his staff's ongoing successful management of this project which culminated in the granting of permission for metro north by An Bord Pleanála last October. An Bord Pleanála's railway order for metro north did not accept proposals for a depot and ancillary facilities at Belinstown and a proposed line and stop at Lissenhall and these will necessitate a further planning application. In its judgment, however, An Bord Pleanála outlined a comprehensive series of proposals to accompany the Metro North project in order to address the serious concerns of local residents and small business people on the route. These included many proposed environmental and mitigation measures.

The planning permission for the key components of the project are in place and I understand there are two final bidders for metro north, namely, Celtic Metro Group and the Metro Express consortia. A final decision on the successful bidder is to be made in April. Both final bidders have strong Irish-connected companies which should provide a significant boost to the Irish construction sector. The European Investment Bank has already approved loans of up to €500 million for the construction of metro north. I ask the Minister to provide an update on the final bid process and on the status of the EIB loans.

Doubts have been raised over metro north, given the current disastrous banking and economic crisis and the hysteria we faced before the recent general election. However, I believe it is essential to proceed with the project for transport connectivity and to maximise economic growth in the years ahead. When the permission was granted by An Bord Pleanála last October, it was reported that €140 million had already been spent on the project and that enabling works for metro north would cost a net €80 million in 2011, which I understand is covered in the Minister's transport budget.

I also understand that the first implementation payment would not incur until late 2012 or early 2013 at the earliest. As this is a public private partnership project, the cost to the public purse following the initial implementation payments will be spread over several decades. Recently completed motorways and roads have repayment periods stretching to 2052.

I was informed by the former Minister, Noel Dempsey, that if all the Transport 21 road projects, the metro and the interconnector were delivered, repayments would eventually amount to a €600 million tranche each year in the transport capital budget. The suggested CPO costs that have been widely commented upon in the media for the development of the metro were significantly inflated in the pre-election hysteria.

An exceptionally strong case remains for strongly adhering with all the preparations to build metro north and to ensure the current tendering and construction timetables are also adhered to. I urge the Minister and the Government to give total and unqualified support to metro north.

Minister for Transport (Deputy Leo Varadkar)

I thank Deputy Broughan for giving me the opportunity to deal with the issue this afternoon. As the Deputy is aware, metro north was included in Transport 21 as a key element of an integrated public transport strategy for Dublin. It is the spine of an integrated network connecting the proposed DART underground, existing suburban rail lines, existing and future Luas lines, the proposed metro west, Dublin Airport and the bus network. The 2011 programme for Government makes clear that this Government specifically supports the expansion in range and frequency of high capacity commuter services, subject to cost-benefit analysis and the availability of both Exchequer and private finance. I am therefore examining the major projects in my Department's capital budget which arise from the previous Government's national recovery plan to establish which can proceed. I am now reviewing metro north, including the updated business case. This review will have regard to the overall cost and benefits, including the contribution in the short, medium and long term to transport objectives, its impact on investment and development in the corridor, as well as its employment creation potential.

Notwithstanding short-term disruption to the city, metro is exactly the kind of transport infrastructure I would like to see in our capital city linking our suburban towns, airport, universities and major hospitals. To proceed, however, we must be sure of the availability of several billion euro in private money under a PPP agreement, upfront Exchequer funding of well over €1 billion during the course of this Government and the State's capacity to repay the PPP contractor considerable sums of money every year for the next 30 years. I must of course also have regard to other projects in the context of overall priorities and the funding allocation. Once this review is complete I will bring the matter before the Cabinet infrastructure sub-committee so that a clear decision can be made as to whether this project will proceed in the immediate future or be postponed.

The programme for Government also proposes the drafting of a new national development plan covering the seven years from 2012 to 2019. The plan will be based on a comprehensive study of Ireland's public investment priorities over that period, with a particular emphasis on job creation and taking into account the realities of funding availability.

I acknowledge the work undertaken over a number of years in bringing metro north to the current position. The procurement of metro north as a PPP project, which commenced in 2008, is ongoing. In June 2009, the Railway Procurement Agency shortlisted two consortia, Celtic Metro Group and Metro Express, to proceed to the final stage of the PPP procurement process. A railway order has been secured and work is well under way for the main planning application for the depot, as mentioned by Deputy Broughan. The European Investment Bank has committed to supporting the project with a loan of up to €500 million.

I also know significant work and consultation have taken place with local authorities and business interests on planning, development and how to undertake the works while keeping the city open for business. In my review I want to assure the Deputy that I will have full regard to the benefits of metro north, especially that it will carry in excess of 36 million passengers annually at peak; shorten the journey time from Swords in my constituency to the city centre considerably; link universities, hospitals, key retail and employment centres in the city centre, as well as Dublin Airport; generate approximately 4,000 direct jobs and thousands of spin-off jobs; connect with the Connolly to Maynooth line and the Luas lines to Dundrum andCherrywood; and act as a catalyst for significant inward investment in the metro north economic corridor stretching from Ballymun to north of Swords, including Dublin Airport.

Cultural Projects

Deputy Joe Costello

I welcome the Minister. A petition will go to the High Court on Monday relating to the winding up of the company running the Light House Cinema in Smithfield and it would be a terrible shame if it were to be successful. It should either be rejected or adjourned to facilitate a solution.

The Light House is an arthouse facility, originally part of the heritage area rejuvenation project proposals, which began in 1995 with commercial, retail, residential and cultural elements. Part of the community gain was the cultural element, although this never properly transpired and Smithfield did not develop as envisaged. The anchor project for culture has been the Light House Cinema, which has provided a very good service to the entire city. It is the only facility of its kind on the north side of the city.

The cinema is currently operating on a lease with a developer, Mr. John Flynn, and the figure was set at €100,000 in 2008; in 2010 the lease was increased to €200,000, doubling in a very short time. It is bad to have upward only rents and leases but it is a scandal to have such a system operating in a recession. The programme for Government includes a commitment to put an end to upward only rents and leases in the commercial sector. That will not be resolved at this stage but we can deal with it in future.

The State has a very substantial input into the project and €1.75 million has been provided through the Minister's Department, the Irish Film Board and the Arts Council. It would be a disaster for all that to be lost. It is difficult to see what the developer can get out of this as the facility is subject to planning conditions stipulating cultural development. It would be very difficult to close the cinema and replicate something of a cultural nature in the area that would be as productive as the cinema. The developer is already getting €100,000 per annum.

I understand NAMA is involved and there are some suggestions that pressure is being brought to bear on the developer from NAMA to increase the rent. It is an absentee landlord who is involved in the first instance as he now resides in Florida; many of the people with financial problems now live abroad. NAMA should be seeking a return on its property portfolio and part of the programme for Government is a proposal that some of the property in the agency should be released to the market. The market is currently stagnant because NAMA is sitting on vast tracts of property. The local authority or others may be interested in retail or residential properties such as this if they were on the market or if NAMA disposed of them.

Such issues can be considered but in the short term there will be a petition before the court next Monday. There is a risk that this singular cultural facility will have to be wound up and closed down and there is the investment of the State in the project running to €1.75 million to consider. We can also consider the planning commitment, established under the statutory rejuvenation project, to maintain a cultural space with associated activities. This is the flagship cultural project of the north of the city, located in the heart of the inner city. It would be a terrible shame if we were to lose it.

Minister for Tourism, Culture and Sport (Deputy Jimmy Deenihan)

I thank Deputy Costello for raising this matter. The background to the State's involvement with the Light HouseCinema is that in February 2006 the then Minister for Arts, Sport and Tourism, Deputy John O'Donoghue, approved in principle an offer of capital grant assistance of €1 million towards the development of the Light House Cinema in Smithfield, Dublin. The project began construction in March 2007 and was officially opened in May 2008. The Department's grant was towards the fit-out costs of the project rather than construction costs. Further State funding of €750,000 for the project was provided from the Cultural Cinema Consortium comprising the Irish Film Board and Arts Council.

The capital funding for the Light House Cinema was provided from the Department's capital development subhead for arts infrastructure. The purpose of this capital development is to support the further development of arts and culture in Ireland. Integrated arts centres, theatres, museums, cinemas and galleries as well as arts studios and other creative and performance spaces have been provided with funding. This capital funding has been widely acknowledged as a significant intervention in the provision of quality cultural spaces throughout the regions.

Anyone who has visited the Light House Cinema will agree that it fits into the category of a quality cultural space and has been an important addition to the cultural life of Smithfield in particular and Dublin in general since it opened nearly three years ago. The cinema has four screens with 600 seats and presents a diverse and individual programme of the best Irish, independent, foreign language, arthouse and classic cinema. It is important that as many types of cinematic tastes as possible are catered for in a large city such as Dublin and the Light House Cinema has played an important role in delivering this film diversity.

Film and film making is of great value to Ireland, financially and as a cultural asset. As part of this whole process, quality outlets such as the Light House Cinema are required to show the completed film product. There is now more than ever greater global competition in securing film and television productions. Ireland continues to hold its own, thanks to the work of the Irish Film Board, our impressive talent pool of directors, writers, actors and technical crews and the various supports on offer. This support manifests itself through various mechanisms, including the section 481 tax incentive for film and television production in Ireland, which, as announced recently, is being extended until the end of 2015.

The audiovisual sector plays an important part in Irish society in economic and cultural terms. Film, as part of the audiovisual medium, is an area in which Ireland continues to excel, as evidenced by the success of Irish productions which secured numerous awards at international level in recent years. Such productions include the films "Once", "The Wind That Shakes the Barley" and "Garage", all of which were shown in the Light House Cinema.

I hope the Light House will remain open and will do as much as possible to ensure it does. Obviously, I must await the outcome of the High Court hearing next week. In that regard, the Office of the Chief State Solicitor has been informed and is examining the relevant legal documents. It is important to acknowledge that the State's investment is protected through a charge on the property. This charge allows that if the Light House ceases to operate from the premises in Smithfield in the first five years of its operation — as it opened in 2008, we are well within the five year window — the Minister can choose either the repayment of the State grants or can agree with the Cultural Cinema Consortium which would occupy the building for the remainder of the lease in order that the premises will remain in use as an arthouse-cultural cinema centre.

The Dáil adjourned at 5.25 p.m. until 2.30 p.m. on Tuesday, 29 March 2011.

Dáil Éireann debate - Thursday, 24 Mar 2011