Dáil Éireann debate -
Wednesday, 15 Jun 2011

Vol. 735 No. 2

Local Authority Charges

Deputy Derek Nolan

This is quite a technical issue but I hope the Minister of State, Deputy Shortall, will bear with me. It concerns rate collection by Galway City Council, of which I was a member, and rebates given to owners of vacant properties. If there are vacant units in Dublin, Cork and Limerick, rates are charged but there is a 50% rebate — in other words, 50% rates are paid on vacant properties. In Galway and Waterford cities, the two other urban councils, a 100% rebate is given. That means there is a discrepancy between Dublin, Cork and Limerick and Galway and Waterford.

The city council in Galway still must provide services for those vacant buildings, maintain the roads and footpaths outside them and spend money on the upkeep of the area surrounding them. The effect on Galway City Council of the 100% rebate is financial in that the city loses out on approximately €1 million in rates revenue each year. As a former member of the city council for two years and as a member of the corporate policy group, €1 million would go a very long way in Galway city. Just this week €800,000 was granted by the Government under the jobs initiative and it will upgrade eight road junctions and will provide a CCTV control unit, a greenway and a pedestrian way and major traffic movement incentives across the city. That is on a one off basis. Some €1 million per annum by applying the legislation to Galway and other urban areas would go a long way.

The other benefit would be to other ratepayers in the city who would see their rates bill being shared not only with other businesses which are operating but with empty units. There would be a greater contribution to, and burden sharing of, the rates bill. It would also have the effect of increasing business activity. In Galway, some landlords keep rents high and do not let units because they want to ensure rents stay high. Forcing those empty units to pay rates would encourage the owners to let them at lower rents and it would have an impact on rents in the city in that it would bring them down. It would also bring more people into the city because more people would use the shops or businesses which would open and it would generate economic activity.

It is important to note that ratepayers in Galway city, businesses and the business community, are very much in the favour of the extension of this legislation and would like to see this change as soon as possible.

Galway is one of the gateway cities and is a regional capital but we are subject to different legislation from Cork, Dublin and Limerick. There is no reason that legislation should not be extended to the other two major urban areas, namely, Galway and Waterford. I understand why it might not apply to rural county councils because they have not suffered the same loss in terms of units closing down and they are dependent on the regional cities, the centres of business and activity, to generate business and they are commuter belts for those cities.

Will the Minister bring forward legislation to bring parity to Galway City Council and Waterford County Council? I have seen previous responses from the Department which acknowledge the discrepancy and the problem but state that it is not willing to bring forward legislation to solve the problem. At a time when resources and funding are scarce, if legislation could generate significant income for a city council or for any State or public authority, we should not shy away from introducing it as it would not cost very much. I ask that we resolve the funding issue, the discrepancy and the inactivity in the Galway city area and that legislation on this matter be brought forward as soon as possible.

Deputy Róisín Shortall

I am taking this matter on behalf of my colleague, the Minister for the Environment, Community and Local Government, Deputy Hogan, and I thank Deputy Nolan for raising it.

Commercial rates income is a very important contribution to the cost of local services provided by local authorities such as roads, public lighting, development control, parks and open spaces. All commercial rates collected within a local authority area are spent exclusively in providing services in that area.

Local authorities are under a statutory obligation to levy rates on any property used for commercial purposes in accordance with the details entered in the valuation lists prepared by the independent Commissioner of Valuation under the Valuation Act 2001. The levying and collection of rates are matters for each individual local authority.

Rates are a local property tax levied on the occupiers and, in some cases, the owners of fixed commercial properties. Under current legislation, the owner rather than the occupier may be liable for commercial rates if the property in question is unoccupied on the date of the making of the rate.

Sections 14 and 23 of the Local Government Act 1946 provide that where a property in a county council or urban area is unoccupied on the date of the making of the rate, the owner becomes liable for payment of rates. However, the owner is entitled to a 100% refund if the property is vacant for specified purposes. These are where the premises are unoccupied for the purpose of the execution of additions, alterations or repairs; where the owner is bona fide unable to obtain a suitable tenant at a reasonable rent; and where the premises are vacant pending redevelopment.

A small number of urban local authorities have historically had separate legal provision enabling a refund of 50% of rates on vacant properties. This separate legislation governs refunds in Dublin, Cork and Limerick — section 71 of the Local Government (Dublin) Act 1930; section 29 of the Limerick City Management Act 1934; and section 20 of the Cork City Management (Amendment) Act 1941, respectively. While the same criteria for refunds apply, 50% of the rates paid is refundable to the owner of vacant premises in these cities. No such separate provision exists for Galway or Waterford City Councils, meaning they are, as are the majority of local authorities, subject to the provisions of the 1946 Act. Any proposal to alter the existing rebate system would require legislative amendment on a nationwide basis.

The Minister is acutely aware of the pressures on small and medium-sized businesses and the challenging economic environment in which many property and business owners operate at present. In this context, the Government is focused on reducing the costs of doing business to support competitiveness and employment in the economy and to protect the interests of communities. A move to a standardised commercial rates rebate of 50% for vacant properties would not be in keeping with this focus and would add to the costs for relevant property owners who may be challenged economically as they seek suitable tenants for vacant commercial properties.

In view of this, it is not the intention of the Minister, Deputy Hogan, at this time to amend the current commercial rates legislation relating to the refund of rates for vacant commercial properties. He will, however, continue to keep the approach to rates by local authorities under active review and is determined that every avenue will be pursued to optimise efficiency and certain costs in the local government sector. I thank Deputy Nolan for raising the matter.

Hospital Accommodation

Deputy Pádraig Mac Lochlainn

Late last year the McNamara Construction building empire collapsed as a result of huge debts. The National Asset Management Agency, NAMA, instigated the collapse by putting McNamara Construction into receivership. The ripples from that event have spread far and wide.

In Donegal North-East, Letterkenny hospital and the people of Donegal have long and eagerly awaited the provision of an extension for a new accident and emergency ward with three modern floors above it. Indeed, recently I had the opportunity to tour the premises with the assistant manager, Mr. Paddy Rooney, and to see the huge potential of that building. The decision on McNamara Construction means that the project has stalled. It should have been completed by spring this year but we now understand from the management of Letterkenny General Hospital that it will not be completed until spring 2012. Furthermore, many of the subcontractors have been left in a desperate financial situation. These are small businesses which, although they were subcontractors, presumed they were in safe hands financially because they were carrying out a public contract. They have been left in a mess.

Before the general election, the candidates or Deputies of at least one of the Government parties assured the electorate that they would deal with this issue, but the Government has been in office for almost 100 days and there is still no resolution. It is time for the Minister of State, Deputy Shortall, and the Minister, Deputy James Reilly, to intervene urgently. There have been knock-on effects. There is a spill-over of patients on trolleys into the coffee dock of the hospital, clinics have been cancelled and there is talk of ward closures. There were a number of quotes reported in the media today from the front-line staff. Nurses said: "We don't have the staff or the facilities to cope; simple as that."; "The situation is intolerable and cannot continue. Morale is very, very low."; "We are at breaking point. We do our best with what we have but there is only so much we can do."; and "Many of us are at breaking point.". That is the response of the nurses, the people whom we trust to work on the front line. They are being failed by the Government in this matter. It must be tackled.

I raised this issue with the chairman of NAMA, Mr. Frank Daly, at the British-Irish Parliamentary Assembly recently. He is a decent and honourable man and he spoke about the difficulty and pain of sending a company, in this case a building empire, into receivership and how there would have to be pain. In this case the people and subcontractors of Donegal North-East are feeling the pain. I urge the Government to do the decent thing. It can hide behind legalities and talk about this and that, but the fact remains that the subcontractors, working on a public contract, have not been paid. They are owed tens of thousands of euro each. They are on the verge of collapse. More important than that shameful episode is the fact that there will be a one year delay, at least, in delivering this critical public infrastructure. It is currently lying empty and not delivering the services that are required.

I wish to express my serious concern about the demands of the HSE for further cuts at Letterkenny General Hospital. It has gone to the well many times with its demands for cutbacks and the well is now thoroughly dry. There have been cuts of €3 million in Letterkenny General Hospital in the last year. I urge the Minister of State and her colleagues to avoid impacting on front-line services and to guarantee to me and other representatives of the people of Donegal that they will provide the necessary resources so front-line staff will no longer be obliged to offer the quotes we have read in recent days.

Deputy Róisín Shortall

I am taking this Adjournment matter on behalf of the Minister for Health. I thank the Deputy for raising the issue as it provides an opportunity to update the House on the matter and to outline the background to the current situation and the action taken by the Health Service Executive.

The Health Service Executive has operational responsibility for the delivery of health and social services, including the construction of health care facilities such as the new accommodation at Letterkenny General Hospital. The Minister for Health is not a party to the construction contracts and has no legal standing in the matter. The delay to the construction is a result of the legal complexities of the receivership process. The HSE is doing its best to expedite matters. This is a difficult situation which has arisen through no fault of the HSE.

The project at Letterkenny General Hospital will deliver a new accident and emergency department and a new medical assessment unit with an additional 29 beds. A total of 72 replacement beds will be provided in the medical ward block over the accident and emergency department and the medical assessment unit. Following the appointment of a receiver, the Health Service Executive took control of the construction works and terminated the contractor's obligation to complete the works under clause 12 of the contract. Notwithstanding this, the contract terms remain in force and the HSE is legally bound by these terms. The HSE must at all times operate within the terms of the contract. There is no basis on which it can be asked to do otherwise.

As is best practice, an insurance bond is an important condition contained in this construction contract. The purpose of an insurance bond is to ensure a construction project can be delivered to the satisfaction of the contracting authority in the event that the contractor is not in a position to complete the project. This is a complex legal procedure and all parties are bound by the conditions of the bond.

The executive and its legal advisers are working with the insurer, sometimes called the bondsman, to ensure the completion of the project. Subject to contract and legal constraints, the HSE will, where possible, take into account the interests of subcontractors but, under the legal circumstances now prevailing, cannot give guarantees in this regard. In accordance with the terms of the bond, the insurer is entitled to nominate a contractor who will complete the project to the satisfaction of the HSE.

Discussions with the insurer are well advanced and the most recent meeting of parties took place late last week. The HSE now awaits the formal proposal from the insurer as to arrangements for completion of the construction. When contracts have been signed and construction commences on site, the best estimate of the HSE at this stage is that the remaining construction work could be completed in approximately 12 weeks. Following this, the building must be equipped and commissioned, which the HSE estimates could take a minimum of six to eight weeks.

I wish to assure the House regarding the management of the accident and emergency services at Letterkenny. The management of Letterkenny General Hospital states that the admission of patients presenting as emergencies is undertaken as promptly as possible and any delays in the emergency unit for admission to a bed are minimised. This focus on managing the emergency workload is reflected in the excellent rating on HealthStat that Letterkenny General Hospital continues to receive when compared with peer hospitals. I thank the Deputy for raising this matter and assure him everything possible is being done by the HSE to ensure the project is completed as quickly as possible.

General Practitioner Services

Deputy Brendan Smith

I thank the Ceann Comhairle for giving me the opportunity to raise this important issue. I am glad that the Minister of State, Deputy Shortall, is in the Chamber as she has responsibility for the primary care sector in the Department. The proposal to end the GP service at the north-east doctor on call, NEDOC, centre in Cavan after 10 p.m. each night is the cause of serious concern throughout a very large part of County Cavan. The centre is located on the grounds of Cavan General Hospital and is centrally situated to provide an out-of-hours GP service. Over the past 24 hours I have had numerous calls from the public, from people who availed of the GP services, from elderly people worried about this development and from parents who had to bring children to the centre for treatment.

NEDOC covers a huge geographical area from the outskirts of Dublin city to west Cavan, west of Bawnboy village and as far as Carrigallen, County Leitrim. It embraces counties Monaghan, Meath, Cavan, Louth and that part of County Leitrim. There are four treatment centres at Cavan, Castleblayney, Drogheda and Navan. The proposed restructuring of the service from the end of this month will mean there will be no duty doctor's service at the Cavan centre after 10 p.m. Such restructuring will reduce the number of doctors working at night from four to three, with the Cavan centre alert losing this vital service.

I understand the board of directors at NEDOC has been liaising with the HSE for months and outlining the need to adequately fund the scheme and retain the current complement of doctors in order to continue the existing night service. The medical people and particularly the doctors have always stated that four doctors should work at night in order to ensure patient safety and the quality of the service. We are talking about dividing four counties into three. Cavan and Monaghan are large, rural counties. If this proposal is allowed to proceed, it will place a further burden on doctors in County Cavan to travel long distances to provide night services from the other centres on a rota basis. Doctors are busy in their practices. An inevitable consequence will be increased patient referral to accident and emergency units and the increased use of ambulances. An important consideration is the additional cost to patients getting to the treatment centres. Not every family has a car. Many elderly people depend on family members to bring them to treatment centres. If this proposal is enacted, certain parts of County Cavan will be more than one hour from the nearest treatment centre. That would be unacceptable to the people.

It is ironic that in the recent HSE report on services for 2010, the progress made in the past year in providing more services in the community was mentioned. I trust the drive to provide more services away from our hospitals, in the community, will be continued and intensified. If this proposal is allowed to proceed, it flies in the face of the policy, which has so many attributes. I implore the Minister of State to intercede with the HSE to ensure the current level of services provided at night by GPs is continued.

Deputy Róisín Shortall

The provision of GP out-of-hours co-operatives throughout the country is an essential part of our health service policy of strengthening primary care services and ensuring that, to the greatest extent possible, care needs are met in the primary care setting. Out-of-hours co-operatives are now in place in all HSE areas, providing coverage in all or in part of all counties. The service can be accessed through a single lo-call telephone number in each region and caters for both public and private patients.

Out-of-hours co-operatives allow GPs to manage the provision of urgently needed care for their patients while their surgeries are closed in the evenings, at weekends and on public holidays. The co-ops also afford GPs reasonable, off-duty arrangements. While there is no obligation on GPs to participate in these co-ops, under the GMS contract, GPs have a responsibility to enable contact to be made with them or a locum for emergencies outside normal practice hours. As matters stand, it is a matter for the GPs how they arrange this cover. I accept that this is not entirely satisfactory and this is a matter of concern to me.

The NEDOC GP out-of-hours service has been in place for the past ten years and facilitates a pooling of resources and a rota arrangement. The GPs provide the service with appropriate supports from the HSE, with the aim of providing a quality service to the patients in the north east, outside of normal surgery hours, in respect of urgent, non-routine cases. GPs put in place a revised rota from March, which includes a GP in each of four treatment centres during core hours and a number of GPs available with cars to attend home visits. Since March, there have been four GPs available on the 11 p.m to 8 a.m shift, seven nights a week, known as the red eye shift. NEDOC has indicated in recent days that it intends to reduce cover on the red eye shift to three GPs with effect from July. It has also indicated it intends to reduce some core hours during the summer months and these will be restored during the busier winter period.

The HSE is awaiting the revised rota from NEDOC and will evaluate this against activity. The budget for the NEDOC service in 2010 was €7.735 million, while the national budget for GP out-of-hours services in 2010 amounted to in the region of €98 million. The HSE completed a national review of GP out-of-hours services in March 2010. This was the first national review to be undertaken since the commencement of publicly funded GP co-operatives in Ireland in 1999 and provided an opportunity to consider the nine national GP co-ops and the four extended hours services.

The review makes 13 recommendations designed to strengthen and standardise the service across the country. These include the recommendation that all co-ops move to a nurse triage system. This recommendation was implemented in NEDOC in March. Trained nurses provide the triage service supported by computer-assisted decision making software. The progress in the establishment of GP co-ops since 1999 is considered by the HSE to be a highly significant quality initiative for patient care, general practice and the health service as a whole.

I am concerned about the issues raised by Deputy Smith. I ask him to communicate with my office and provide me with details on where complaints have arisen, the numbers and the times. I will personally follow up on these complaints.

The Dail adjourned at 10.40 p.m until 10.30 a.m on Thursday, 16 June 2011.