Adjournment Debate

Motor Taxation

Deputy Robert Dowds

A parliamentary question I asked of the Minister for the Environment, Community and Local Government, Deputy Phil Hogan, on 25 May uncovered two rather startling pieces of information. First, the value of off-the-road vehicle declarations for the 15 month period between May 2009 to July 2010 was over €94 million. This would equate to roughly €76 million per annum. Off-the-road vehicle declarations occur where the owner of a vehicle makes a statement, verified by the Garda, that the vehicle was not driven on the road for a period of time. Given the approximate €76 million per annum value, a substantial number of vehicles are being declared as off-the-road.

According to a report produced by the Dublin Motor Tax Office, 27% of the total number of vehicles registered in Monaghan in 2008 were declared off road for part of that year. The figure for the Dublin area was about 12%. In the motor tax office in Nutgrove, County Dublin, over 12,000 vehicles were declared as being off the road for part of the year in 2008. The figure for County Galway in the same period was 22,500. It is hard to credit that all these were genuine cases of vehicles being off the road.

Second, an off-the-road declaration for any month can only be accepted after that month has ended. This surely makes it possible to say that a vehicle has been off the road when it might not have been so.

I call on the Minister to do three things. First, he must take steps to review the procedure as soon as possible. I understand from the answer to a parliamentary question that he intends to do so. Second, he must introduce a better system, such as that which operates in Switzerland. In that country, when a vehicle is declared off the road, the tax disc is returned to the local authority for the period the vehicle is off the road. Third, if extra revenue comes in as a result of the reform, the benefit should be passed on to compliant motor tax payers in the form of lower motor tax.

One reason I raise this issue is because local authorities receive the money collected from motor tax through the local government fund. With streams of finance to local authorities in serious decline, it is important that levels of motor tax income are maintained. For example, my county of South Dublin, which includes Lucan, Clondalkin, Tallaght and Templeogue, has a population of about 250,000 and it received €24.29 million in 2010. The current yearly rate of motor tax being lost would fund three such councils, so I would appreciate it if the Minister addressed those issues.

Minister for the Environment, Community and Local Government (Deputy Phil Hogan)

I thank the Deputy for raising this important matter. I am very concerned at the high level of off-the-road declarations being made. I am aware that current procedures governing the making of such declarations may be open to abuse.

Off-the-road declarations are made retrospectively to cover short periods, usually of a month, where motor tax was unpaid as the vehicle to which the declaration applies was not in use in a public place during the period to which the declaration refers. The current system allows for such a declaration to be witnessed by a member of the Garda Síochána. This was intended to discourage false declarations. However, it may be considered to be ineffective as the garda may be witnessing the signature on the declaration only and may not be in a position to verify whether the vehicle was in use on the road for the period in question. It could thus be argued that this process, designed to facilitate genuine cases where vehicles are not in use on a public road, is capable of being used to evade the payment of motor tax for short periods by making false declarations in instances where vehicles may have been used in a public place during the period of the declaration.

It is my strong view that this practice is exacerbated by the custom and practice of allowing a month's grace for the payment of motor tax. While this is not laid down in law, the approach has arisen from the period when renewing tax discs could be slow and time-consuming. This is no longer the case since the introduction of the online motor tax system. However, the common perception that this one month grace period exists probably feeds into the notion that driving without valid motor tax for short periods is acceptable.

The most recent verified figures available indicate that the value of off-the-road declarations made during the 15 months from May 2009 to July 2010, inclusive, was over €94 million. I have asked my Department, in the context of a general revision of motor tax law, to take steps this year to address the procedures in this area. While acknowledging that it will not be possible to remove off-the-road declarations completely, a system somewhat akin to that in use in the UK is being considered in the context of the development of a motor tax Bill, whereby off-the-road declarations will be possible only in advance for a specified period of no less than three months. It will not be possible for retrospective applications to be made, as these are in essence unlikely to be fully verifiable. I also propose to confirm the non-existence in law of the month's grace period to renew motor tax.

More generally, the motor tax Bill will consolidate and modernise motor tax law, and reform the administration of the motor tax system to ensure consistency, resource efficiency and best customer practice in service delivery.

School Curriculum

Deputy David Stanton

I thank the Ceann Comhairle for allowing me to raise this matter. The specific issue I wish to raise is that of higher level mathematics in the leaving certificate. Mathematics is a very important subject for the leaving certificate. In fact, it is one of the most important subjects in our economy. I met people recently who work in an industry where mathematics is very important and they are concerned with the standards of mathematics and science in Ireland.

I put down a parliamentary question recently because I wanted to find out how many students study higher level mathematics for the leaving certificate and how many end up sitting the exam. I discovered that 10,516 students studied it in 2010, but only 8,390 actually sat the exam, so more than 2,000 students opted not to sit it. I wanted to explore why this might be the case, and I discovered that if a student fails mathematics in the leaving certificate, then many courses are closed to that student at third level. I spoke to some students and they told me this is one of the main reasons they decided not to take the examination. If they failed higher level mathematics, then they could not go to college.

There are some exceptions to this. Waterford Institute of Technology has a safety net and allows students who fail honours mathematics to do another mathematics exam to qualify. Perhaps we should look at this. Higher level mathematics can take up 25% of a pupil's study time, so if an 18 or 19 old studying higher level mathematics decides not to do the exam and drops down to the lower level, then he or she will probably get an A grade. However, this means that the drive to take on higher level mathematics is being diluted.

Perhaps we should look at a second chance, as is currently happening in WIT, so that any student who fails the exam could have the opportunity of doing it again. These students would be well capable of meeting the minimum requirements — a C3 at lower level — to get into most courses. If they fail the higher level exam they get nothing and must repeat the whole year. That is very unfair and many students are not prepared to take that risk. Can we blame them?

The Minister will talk about the bonus points for higher level mathematics and I know that there are other issues that Professor Kathleen Lynch has raised in respect of inequality, but that is another matter. Bonus points will not make a difference if the student fails. They might act as an incentive to do well, but if the student fails then he or she is precluded from many courses. If a safety net existed, most students would take the risk of doing the exam, knowing that if they failed it, they could repeat it in the autumn somewhere to get the minimum requirement that would entitle them to take the third level course. It is a small thing, but I know from talking to students and teachers that it is a big issue for many of them. It is often the reason students decide not to take the higher level course in the first place.

I am interested in what the Minister has to say. He may not have picked up in his script all the points that I made.

Maths is a very important subject and we need to encourage students to opt for it in every way we can. Bonus points alone are not enough. We need to do more. I ask the Department to consider my views in this regard.

Deputy Phil Hogan

I apologise for the inability of the Minister for Education and Skills to be here; he has asked me to take this matter for him.

Ireland's future economic growth and competitiveness will increasingly depend on the extent to which it can support high-value, knowledge-based industries. Mathematics is essential for disciplines such as science, technology, engineering and finance, but it also promotes the ability to think rationally, analyse and solve problems, and process data clearly and accurately. In a competitive global economy, it is important that Ireland moves towards the promotion of advanced levels of skills, creativity and innovation. We urgently need to improve attainment levels in mathematics generally and encourage more students to take higher level mathematics. Mathematics is an essential life skill for citizenship and for economic and social participation in an increasingly complex world.

A total of 16% of students sat higher level mathematics in the 2010 leaving certificate examination. This is down from a high of 18.9% in 2005, and is significantly out of line with participation at higher level in other subjects. For example, 33% of students sat higher level Irish, a subject in which students can also choose from three levels, and 64% sat higher level English, which has two levels. As well as those who sat higher level mathematics in the 2010 leaving certificate examination, 11.5% of students sat foundation level and 72.5% sat ordinary level. A further issue is that some 20% of students who initially applied to sit mathematics at higher level in the leaving certificate in 2010 did not take the examination at that level.

A range of factors are behind students' decisions not to take mathematics at higher level for senior cycle. Undoubtedly, workload, fear of not meeting matriculation requirements and the points race are significant factors for many. Higher education institutions have collectively agreed to operate a bonus points system for higher level mathematics for a four-year trial period from 2012 to 2015, inclusive, with a review in 2014. A bonus of 25 points will be allocated to students who achieve a grade D3 or above in leaving certificate higher level mathematics.

With regard to mathematics at junior certificate level, I expect to receive advice shortly from the National Council for Curriculum and Assessment on a framework for a significantly reformed junior cycle which will improve students' learning experiences, address curriculum overload, and promote creativity, innovation and learning to learn.

A major programme of reform in mathematics, Project Maths, began in all second level schools at both junior and senior cycle in September last, building on the experience of 24 schools which began the programme in 2008. Project Maths is designed to encourage better understanding of mathematics, to reinforce its practical relevance to everyday life and to ensure better curriculum continuity across the system. The initial experience in the 24 Project Maths schools in which students sat the leaving certificate in 2010 indicated a modest increase in the proportion who sat mathematics at higher level — 18.7% compared with 16.0% nationally.

The Department intends to publish shortly a national literacy and numeracy strategy which will provide a continuum of measures designed to improve performance in these critical areas. It is in our primary schools and in the early years that the foundations of learning are laid. The strategy will emphasise the key role of parents, early education settings and primary schools in supporting numeracy. Taken together, these initiatives are intended to improve attainment in mathematics and increase the numbers of students taking the higher level paper in order to better meet the needs of our economy and society.

I will consider the suggestions that have been made by Deputy Stanton on second-chance opportunities for students who have not been successful in mathematics in previous examinations, and I will convey them to the Minister for Education and Skills.

Departmental Offices

Deputy Timmy Dooley

I welcome the opportunity to ask the Minister for Agriculture, Fisheries and Food to give consideration to a plea from a group of farmers in the east Clare area to retain the Teagasc office as a service provider in the town of Scarriff. As Deputies know, there are proposals, decided on in light of budgetary requirements, to close a number of Teagasc offices across the country. While we must all take into account value for money and the lesser availability of funds to provide for various services, there is a strong case to be made for Scarriff in particular.

The office serves about 1,000 client farmers in the south Galway-east Clare area. Clare and Galway are seen as an administrative area and quite a number of farmers from the east and south Galway area, with which the Leas-Cheann Comhairle will be familiar, use the services at Scarriff. The proposal by the board of Teagasc is that services to those farmers now be provided in the town of Ennis, almost 50 km away. It makes no economic sense. The proposal to close the office in Scarriff and relocate the office to Ennis will not result in any saving either from a capital or from a revenue point of view. The four Teagasc advisers will remain on the staff as they will be required to meet the needs of the farmers in the area, and there will be additional costs associated with their expenses and the loss of time resulting from their having to come from an office over 40 km away to serve that farmer base. It does not make economic sense.

The proposal is to sell the building, which is fine, but in the long term there will be an increase in costs. The capital side of the programme will require the building of an extension at the office in Ennis at considerable cost to the State. Taking all the factors into account, there is no logical reason the Scarriff office in particular should be closed.

I am appealing to the Minister to make a special case to the board and the executive of Teagasc to re-evaluate the facts with regard to the Scarriff office. It is a unique situation because of the distance involved and the economics. The cost of running the office at the moment is relatively low and it generates considerable income not just from the farming community, but also from other potential uses of the office in the evening. I believe we should facilitate the retention of this office in the heart of a rural area. The east Clare office has been the central office for the provision of hen harrier advice because of the hen harrier designation that exists there and its removal would be a loss to the region. I am appealing to the Minister in this regard.

There needs to be a complete review of the Teagasc strategy, particularly in light of the proposals in Harvest 2020 and the necessity of ensuring the utilisation of land is at a maximum to enable us to meet the output required. If we do not have advisers working hand-in-hand with farmers on the ground, we will not reach those targets. Teagasc must rethink its entire strategy, which, as the Minister of State knows, has been moving back into research and away from the provision of advisory services on the ground. That is a retrograde step. The current economic situation and our greater dependence on our export sector, particularly food exports, should be food for thought — if Deputies will pardon the pun — for the board of Teagasc, which I hope will result in a complete re-evaluation of its strategy.

The argument for the retention of the service at Scarriff stands on its own merits on the basis of the cost savings. Cost was the original reason given for the closure of the office, but when one goes through the information in detail one can see there is clearly no justification for it. I appeal to the Minister to reflect on this and seek the assistance of the board of Teagasc in reversing that decision.

Minister of State at the Department of Agriculture, Fisheries and Food (Deputy Shane McEntee)

I thank the Deputy for raising this issue. With regard to the last part of his contribution, I understand the importance of having a proper advisory service in view of the approach of the 2020 targets. It is important for anybody going into agriculture, or already in agriculture, that the best advice possible is available. Since we came into government, we have had representations about many Teagasc offices that have been closed down. I cannot comment on decisions made by Teagasc, but one wonders whether some of these closures were in the right areas. However, that is a decision for Teagasc. I cannot honestly say how it will be reviewed, but I will consider what the Deputy has said and pass it on to the Minister. I do not know whether the door is closed, but I appreciate what the Deputy is saying. Teagasc, the agriculture and food development authority, was established under the Agriculture (Research, Training and Advice) Act 1988 to provide integrated research, advisory and training services to the agriculture and food industry. The organisation's mission is to support science-based innovation in the agrifood sector and wider bio-economy so as to underpin profitability, competitiveness and sustainability.

It is the main agency responsible for delivering the Government's objectives on innovation and the knowledge economy as far as the agrifood sector is concerned. Its programmes and services are critical in enabling the sector take full advantage of the many opportunities in global markets. Delivery of these programmes and services is an operational matter for Teagasc and its board. Ministerial responsibility is confined to matters of policy in accordance with the Act establishing Teagasc and is not concerned with the day-to-day operations of Teagasc.

Each year, Teagasc receives substantial Exchequer resources to fund the delivery of first class training, research and advisory services. The allocation for the current year is €132 million. This is very substantial funding by any standards and a firm indication of the Government's ongoing commitment to Teagasc activities. Prioritisation of funding for particular services is a matter for Teagasc management to determine.

Teagasc commenced a change process in mid-2008 in order to ensure it remains fit for purpose and delivers value for public money. The Teagasc Change Programme 2009-2013 addresses both the ongoing need for change and the need for significant resource rationalisation. Implementation is resulting in the disposal of surplus assets, a significant reduction in the number of research, advisory and educational locations, the cutting of management and administrative posts and significant productivity gains by staff. On completion, the future Teagasc will be a smaller, highly innovative, efficient and focused organisation.

I understand that as part of the change programme, Teagasc has decided to concentrate the delivery of its services, including advisory services, at fewer centres. The existing network of advisory offices will be streamlined from 91 to 51 by the end of 2012. The specific criteria used by Teagasc in assessing the viability of advisory office locations included client numbers, staff numbers, distance to clients, distance to other Teagasc offices and overall cost structure. The decision to close these offices and concentrate the delivery of services at fewer locations is entirely a matter for Teagasc and its board. It should be noted that on average clients visit an advisory office 1.5 times per year. Farmers tend to gravitate much more readily to other public events such as seminars, farm walks, demonstrations and information meetings. A good example is the discussion group model where groups of farmers visit similar farms and share information and experiences in dialogue facilitated by their Teagasc adviser. I must state this is very successful and it is the way forward in all aspects of farming.

The Scariff office is one of 40 which the Teagasc board has decided to close under the change programme. Despite the closure, Teagasc is committed to maintaining a high quality service to its farmer clients in County Clare. They will continue to have access to the best possible advice delivered by highly skilled advisory staff based at Teagasc's remaining offices in Ennis and Kilrush. I understand that Teagasc is investing €200,000 to renovate and extend the advisory office in Ennis.

The Teagasc authority has stressed that when the rationalisation programme is implemented it will still have a significant network of advisory offices, research centres and training colleges located throughout the country. Therefore, the ability of Teagasc to provide its range of services will not be diminished.

Job Losses

Deputy Peter Fitzpatrick

In three months, 102 people from Dundalk will be out of work. The announcement was made last Friday by the Vodafone company. Of the 102 people, 82 work for Rigney Dolphin which provides services to Vodafone, while the remaining 20 work directly for Vodafone. The people affected had a very miserable weekend. Many of them are very highly qualified and have contributed to the success of Vodafone in this country. Now they face a choice between emigration and the dole queue.

I offer my sympathy to all of the individuals affected by this decision, and to their families. I implore the Minister of State to pull out all the stops on their behalf. Vodafone is a very profitable business and will probably save money by moving some of its services to India and Egypt. While the money saved can be measured, how does one measure the suffering inflicted on the people who will lose their jobs? Recently, the new Government halved the lower rate of PRSI in an effort to reduce the cost of employing people. This will definitely help Vodafone's cost base. The Government also intends to make every effort to reduce costs for employers through every means open to it.

Will the Minister of State engage with Vodafone to explain the Government's strategy and ask it to reverse its decision? The Republic is in dire straits and a little loyalty from Vodafone to the 102 people who have contributed to its profits would be very well received. As a last resort, I urge the Minister of State to establish a taskforce to replace these jobs in Dundalk as a matter of urgency. Dundalk is only a few miles from the Border. The local economy suffered greatly during the IRA campaign and has always been a victim of competition from across the Border. Dundalk cannot afford to lose 102 jobs.

Deputy Gerry Adams

Vodafone will sack more than 130 workers in Dundalk and Leopardstown and move their jobs to Egypt and India. This comes at a time when 443,400 citizens are unemployed. Clearly, Vodafone has no loyalty to Irish people. I ask the Minister of State to clarify whether Vodafone has received public funds and tax exemptions. Since it came here, Vodafone's profits have amounted to €2.2 billion with profits last year of €120 million. Vodafone takes public monies, makes huge profits and then moves on. This is the unacceptable face of globalisation and the Government must review this type of operation.

I met representatives of the Communications Workers' Union and if the Minister of State has not met them I ask him to do so. Their briefing included the minutes of a meeting with Vodafone. The union asked what will happen to workers losing jobs in Rigney Dolphin, which supplies employees to Vodafone, and whether they would be redeployed to Vodafone. It was told "No". It asked what will be the terms of redundancy for the employees. It was told this had nothing to do with Vodafone but was a matter for Rigney Dolphin. It asked whether Vodafone accepts it has a responsibility to Rigney Dolphin employees working in Vodafone and was told Vodafone has responsibility only to the business contract between Rigney Dolphin and Vodafone. The union requested that Vodafone postpone the decision to sack these citizens to enable all parties to engage in discussions with a view to finding alternatives that will save jobs and was told "No". It asked whether Vodafone can guarantee that further jobs or work will not be outsourced and was told "No". The union asked what were the cost savings involved in the jobs going offshore and was told Vodafone did not know.

This is not acceptable. The Government needs to ensure that as many of these jobs as possible are protected and that any workers who lose their jobs receive their redundancy entitlement. This needs a decisive, clear and effective response from the Government and it needs it now.

Minister of State at the Departments of Enterprise, Trade and Innovation, Education and Skills (Deputy Sean Sherlock)

I wish to sympathise with the workers and their families. This decision was taken by Vodafone and it raises some questions which have been clearly and well articulated by the Deputies. I will not refer to my script because I honestly believe that serious questions have been raised, including the relationship with Vodafone which is a very profitable company. When the issues were raised by the Deputies, Vodafone supplied the Department with some information which would not necessarily have answered the questions put. With this in mind, I ask the Deputies to allow me some leeway so I can interact with Vodafone's public affairs section, and with Enterprise Ireland because I understand Rigney Dolphin is a client company, and so that we can examine the exact reasons the outsourcing has begun.

According to a document received from Vodafone, it is expected that at the conclusion of the consultation process the credit and collections activity will be outsourced to a specialist supplier in Ireland. Mobile data and customer operations will transfer to an existing group subsidiary based in Egypt and mobile back office will transfer to a subsidiary company based in India. I also understand that Ireland is not the only country affected by the Vodafone move. The group also moved call centre operations from Germany to Egypt.

Rather than give the Deputies a pro forma answer, I ask them to allow me some leeway. Deputy Adams referred to the Communication Workers’ Union and if it has been in touch with him, I would be more than happy to field a telephone call from it on this matter. I cannot give any guarantees as it was a corporate decision. All I can say is that we are committed to trying to retain jobs. The State agencies in this region as well as the Louth County Enterprise Board will continue to promote Dundalk as a centre for inward investment and enterprise development.

I acknowledge the Deputies have raised some interesting points. Vodafone employs 1,200 staff in various locations in Ireland which is a significant investment in this country and that must be acknowledged. However, questions have been raised this evening and perhaps this merits further examination. I would be happy to oblige the Deputies in so far as I am able to do so and I will endeavour to help them in this regard.

The Dáil adjourned at 9.20 p.m. until 10.30 a.m. on Thursday, 2 June 2011.

Dáil Éireann debate - Wednesday, 1 Jun 2011