Dáil Éireann debate -
Tuesday, 11 Oct 2011

Vol. 743 No. 1

Topical Issue Debate

Tax Reliefs

Deputy Jim Daly

I welcome the opportunity to raise this issue in the Dáil. It is a most important issue which relates to an industry in which we are all placing enormous hope and trust with the aim of reviving our country from the current crisis through an emphasis on exports and SMEs. I wish to discuss patent income tax relief, which may be better known as patent royalties. This scheme was first introduced in the 1960s and was amended in the Finance Act 2006 with the introduction of a number of anti-avoidance measures to prevent certain abuses of the scheme of relief for distributions made out of income from the scheme. The abolishment of this scheme by the previous Administration has destroyed one of the few incentives available for ordinary businesses to conduct research and development and to develop products to take to the market. While some incentives remain for those who want to get involved in research and development, there is no compulsion to bring products to the market. The abolishment of the system in last year's Finance Act has ensured that people can continue in research and development but do not have to bring their products to the market to avail of the tax breaks.

Patent royalty was the only incentive for natural-born entrepreneurs and inventors to put their heads together and invest substantial revenue in particular projects, doing their utmost to get these products to the market. While changes like the €5 million cap introduced back in 2007 are welcome, the complete abolishment of the scheme was a major blow to the SME sector. A reintroduction of the scheme, perhaps with further limitations — for example, with a reduction of the cap to €100,000 or €150,000 to ensure it was targeted at SMEs and could not be taken advantage of by larger businesses — would be a major boost to the sector and would also be beneficial to the Exchequer. There is no doubt that the original scheme created jobs, and most of the royalties were reinvested in further research and development projects.

At a time when this country is craving an increase in exports — in fact, we are almost totally reliant on the sector to revive us from the current crisis — we need to support the extraordinary individuals who manage to invent new products and sell them in major multiples all over Europe and the world. When this scheme was abolished, Ireland was the fourth lowest filer of patents in the entire eurozone, and I doubt there has been any improvement since then.

This is not one of the typical tax reliefs that anyone can avail of. The patented product must be a success — it must be manufactured and sold — before any tax relief is distributed. Each of these processes will make a major contribution to the Exchequer by way of VAT, PAYE and corporation tax.

At this time, there is absolutely no incentive to encourage budding entrepreneurs to invest in such products and make them a success. In fact, patent owners will now be hit with two tax levies: corporation tax, when the holding company receives the royalty payment, and full income tax and levies on any of the payment that gets back to shareholders directly. This is a radical shift from what these business people are used to, and I am aware of numerous companies that are not investing in the development of such ideas at present as they cannot afford to do so. I would hate to see Irish companies being forced to outsource the manufacturing of Irish ideas to other countries with cheaper labour markets. This would not happen under the patent royalty scheme, as a product must be developed within the country for the developer to avail of the tax breaks. I ask the Minister to reconsider this scheme in the run-up to next year's Finance Bill, with a view to reinstating it on a much smaller scale in order exclusively to support small businesses by offering them incentives to develop new projects.

Minister for Finance (Deputy Michael Noonan)

The patent royalty exemption provided a tax exemption for income received by an individual or company from a qualifying patent, subject to an annual limit of €5 million. It also provided a tax exemption for distributions paid by companies from exempt patent income. The patent royalty exemption was abolished in the Finance Act 2011 on foot of a recommendation from the Commission on Taxation which concluded it had not resulted to any great extent in companies carrying out additional research and development activity and that it provided a windfall gain after a successful invention was developed rather than an incentive to undertake new research and development.

The total cost to the Exchequer of the patent income exemption was €72 million in 2009, of which approximately €16 million was associated with claims from companies. The original rationale for the scheme was to encourage research and development and stimulate inventive activity. However, the scheme was not particularly well targeted and it is clear that it was not only researchers and inventors who were the beneficiaries. Rather, the exemption was used as a tax-efficient means of rewarding employees and directors and had less of an impact in generating new research and development activity.

The research and development tax credit scheme is considered a more appropriate and targeted incentive and has been enhanced considerably in recent years to make it one of the most competitive of its type anywhere in the world. A tax credit of 25% of the incremental expenditure incurred by a company in an accounting period on research and development activities can be offset against a company's corporation tax liability. The scheme has been improved in most budgets and Finance Acts since its introduction in 2004. It offers a tax credit of 25% on incremental research and development expenditure, in addition to the normal 12.5% trading deduction. The base year has been permanently set at 2003, making it effectively volume-based for new entrants, and there is no ceiling to the level of eligible expenditure over the 2003 base year. Unused tax credits can be carried back for set-off against a company's prior-year corporation tax, CT, liabilities, thus generating a tax refund. Where there is insufficient current or prior-year CT liabilities, the company can claim unused tax credits in cash over three years. Expenditure includes direct and indirect costs in addition to capital expenditure on related plant and machinery. In addition, a proportion of capital expenditure on buildings used for research and development purposes now qualifies for a tax credit of 25% where, previously, expenditure on new or refurbished buildings would only qualify for the tax credit if used "wholly and exclusively" for research and development.

Given the 12.5% corporation tax rate, the availability of research and development credit relief, the capital allowances scheme for intangible assets and various other incentives such as the business expansion scheme, our tax regime has much to offer in making Ireland an attractive location for innovative enterprises to exploit their intellectual property and develop their business. The exemption for patent royalty income did not have the desired impact in terms of enhancing research and development and innovative business. As such, the removal of this relief will not have a significant adverse effect on our competitiveness in this regard. Ireland should be well able to maintain its position as an attractive location for companies to locate their research and development and intellectual property business activities and to provide high-quality employment in the process.

Deputy Jim Daly

I thank the Minister for his reply. The point I am arguing is that we threw out the baby with the bath water when we abolished this tax relief. I accept there were abuses of the scheme and that some companies were gaining to a huge extent. Nevertheless, the decision to eliminate it has done great damage to the smaller companies engaged in research and development which were reliant on it. The abolition of the scheme has also reduced the incentive to bring new products to market. I acknowledge it is complex legislation, but we owe it to the small and medium-sized business sector, on which we are placing a great emphasis in our efforts to mend the economy, to re-evaluate our approach. A one-cap-fits-all position is not the right approach to take. I ask the Minister to consider reintroducing the scheme in a targeted manner and with a much reduced cap. The previous cap of €5 million was excessive — reducing it to €100,000 will help to restore our edge in terms of research and development by encouraging entrepreneurship among small and medium-sized businesses. The abolition of the relief scheme threatens to choke all endeavour in that regard.

Deputy Michael Noonan

The scheme was not abolished in an arbitrary fashion or by political or administrative decision but only after a full review by the Commission on Taxation. The commission's view was that while the relief provided additional windfall taxes to persons who registered patents, it did not act as an incentive for additional research and development, as was its objective in the first instance. Current provisions regarding tax relief for research and development cover not only the original incentive provided by patent royalty exemption but also have a much broader impact and are recognised internationally as a significant incentive for research and development.

Nevertheless, while not holding out any hope of reversing what was done last year, I will re-examine the scheme along the lines of Deputy Jim Daly's proposal to see whether it could be focused on companies which are inventive but have small turnovers. Any reinstatement of the relief would apply only to a small tranche of income. I am not sure whether it will be possible to take this approach given that such incentives generally must apply to everybody. However, it may be possible to confine it by way of cap. The previous threshold of €5 million was very high.

Disaster Relief

Deputy Joe Costello

I welcome the Minister of State at the Department of Foreign Affairs and Trade, Deputy Jan O'Sullivan. Nobody is more familiar than she with the issue I am raising. One of the most interesting and creative references in the programme for Government is the one which states: "We will position Ireland, in particular Shannon Airport, to become an international hub for the storage and distribution of emergency humanitarian supplies". Shannon Airport has lost a significant amount of business through the ending of the Shannon stopover and of its role as a hub for flights to and from the former USSR. While some of that business has been replaced by the accommodation of United States troops travelling to and from Iraq and Afghanistan — which has been a cause for controversy — that too is coming to an end with the full repatriation of United States troops due in August next year. Therefore, we do not have much time before much of the existing business will disappear.

The Lisbon treaty introduced for the first time a specific legal basis for the humanitarian aid obligations of the European Union in its own right. The Union is now the world's largest humanitarian aid donor, providing more than 40% of all such aid internationally. We must implement the undertaking in the programme for Government in this regard by ensuring Ireland is properly positioned to function as a major hub for the provision and dispersal of humanitarian aid. Shannon Airport is ideally located for this purpose on the edge of the Atlantic Ocean. Moreover, it has the depot capacity and runways to accommodate all the necessary container air transport.

Ireland is a neutral country and acceptable as an honest broker almost everywhere in the world. As such, we should look to provide, at Shannon Airport, a template for the storage and dispersal of aid in the context of natural disasters such as earthquakes, tsunamis and famines, as well as the destruction arising from war and other human activities. Shannon is desperately in need of being a new hub for a major activity and the Lisbon treaty provides the opportunity for it to be a depot and hub for the storage and dispersal of humanitarian aid throughout the world in the context of the various needs stated in the Lisbon treaty.

Minister of State at the Department of Foreign Affairs and Trade (Deputy Jan O’Sullivan)

I acknowledge Deputy Costello's interest in this issue for some time. Obviously I am anxious to bring it to fruition. He has outlined the reasons such a humanitarian hub should be located in Shannon.

It is an unfortunate fact that the frequency and impact of natural and other disasters has increased dramatically in recent years. From the Asian tsunami of 2004 to the earthquake in Haiti last year to the ongoing crisis in the Horn of Africa, the international community is called upon more and more frequently to provide emergency assistance. The Government, through Irish Aid, has over a period of years developed a comprehensive mechanism for responding to humanitarian crises. We work closely with the United Nations, with NGOs such as Concern, Trócaire and the Red Cross and other humanitarian agencies in assessing how Ireland can best contribute to alleviating the suffering of crisis victims. Often it is local organisations which provide the most immediate, life saving help and Irish Aid works with these groups to ensure they have the wherewithal to respond.

The nature of humanitarian emergencies can vary widely from long-standing and protracted conflicts in the Democratic Republic of Congo, Sudan, Somalia and elsewhere to drought, floods and earthquakes. Each of these requires a different type of response tailored to the particular context and to the needs of the beneficiary population.

In the case of earthquakes, tsunamis, floods and other sudden-onset emergencies, agencies are required to respond immediately in order to save lives and provide assistance and support to people who may have lost everything. It was to address this need that Irish Aid developed its rapid response initiative which includes the Irish Aid Rapid Response Corps and our humanitarian stockpiles which we use to provide emergency shelter and sanitation in situations such as the Haiti earthquake or last year's flooding in Pakistan.

The rapid response corps is a register of highly qualified and experienced volunteers who can be deployed to work with humanitarian agencies in responding to a crisis situation. Experience from the Asian tsunami of 2004 and subsequently has shown that sending inexperienced and unqualified volunteers can hinder the effectiveness of relief operations.

Consequently, Irish Aid has worked with its partners to identify the type of skills required during an emergency and carries out an annual recruitment process for volunteers. We have 195 people within the corps, 21 of whom are serving in the Horn of Africa with the United Nations and other humanitarian agencies. We also deploy our own personnel to crisis situations.

The other main element of the rapid response initiative, our humanitarian stockpiles, provides an important tool for responding to the immediate needs of crisis victims and has proven its worth in a diverse series of operations.

Ireland is one of the users of the UN humanitarian response depot system, which is run by the World Food Programme and has stockpiles located in or close to regions which are prone to humanitarian emergencies. These depots are in Accra, Ghana; Dubai; Subang, Malaysia; Panama and at the UN's logistics headquarters in Brindisi, Italy and they are used by more than 40 governments or humanitarian agencies.

This UN system carries on Ireland's behalf a range of materials in these depots, including blankets, water tanks, kitchen sets and other items intended to provide a basic survival infrastructure for people who have lost everything in a crisis. On average Irish Aid carries out six to eight airlifts per year and in 2010, for example, we transported 130 tonnes of supplies to Haiti to assist with the post-earthquake response. Logistics surrounding these flights are arranged and managed by the UN.

It is in the context of this existing international humanitarian logistics and transport system which the Deputy will be aware of that proposals for the development of a hub at Shannon are being considered and are, as he said, included in the programme for Government.

I have met airport management and others involved in developing the proposal on a number of occasions in recent months, as have officials managing the rapid response initiative. That also included the Shannon Airport Authority and a number of other interests in the region.

It is clear there is considerable potential for the development of Shannon as an international logistics facility, as evidenced by the interest shown by international private sector companies.

The key is to identify how Shannon can add to or bring something new to the existing international system and talks and thinking on this are ongoing, with the Government's support.

Given the likelihood that the incidence of humanitarian crisis will only increase further it is incumbent on the international community to ensure it has the necessary means to respond in an efficient and effective way. Ireland will play its part in that effort. I assure the Deputy we have ongoing discussions in this area with a view to identifying how Shannon can fit into the overall system.

Acting Chairman (Deputy Olivia Mitchell)

Does the Deputy wish to come back in? If so, he has one minute.

Deputy Joe Costello

I thank the Minister of State for that comprehensive response. My remarks are made in the context of the Lisbon treaty of 2009 which made humanitarian aid a specific policy and gave it a legal remit. I am also speaking in the context of the diplomatic structure that has been formed, the European External Action Service, which has a remit for the delivery of humanitarian aid and has done so in respect of the earthquake in Haiti and is now doing it regard to the Arab Spring in terms of humanitarian aid, development and solidarity. A new imperative has come on board at this time.

There is no Atlantic hub so far. None of the areas the Minister of State is mentioned is near the Atlantic. Ireland is significantly better placed than anywhere else to be that Atlantic hub. Shannon has the facilities and it is time to prepare that template directly and present it to the EU and the United Nations where it can be argued so that Shannon and Ireland will be the net beneficiaries in that respect. It would be the ideal place for a country like Ireland which has such a good relationship worldwide in the distribution of humanitarian aid and Europe is by far the biggest donor.

Deputy Jan O’Sullivan

I take the Deputy's point that the Lisbon treaty adds to the strength of the proposal and also the fact that there is not an Atlantic hub. He suggested that we prepare a template for the United Nations and the EU. We will take all those comments on board. However, we must ensure it fits in with existing facilities. Given that the other hubs are close to where disasters tend to happen means that they are effective in an emergency. Certainly the Atlantic is another area where there is potential. As the Deputy said in his original contribution, Shannon has the runway, the capacity and the good will in respect of Ireland's programme, all of which will open doors. We have put people in touch with the World Food Programme and the NGOs to ascertain the gaps and the need and, perhaps, what would be most appropriate for Shannon to store and to make available.

Architectural Heritage

Deputy Nicky McFadden

This issue concerns the delay in the refurbishment of Athlone Castle due to the requirement for ministerial approval and the broader connotations the delay has for tourism opportunities.

I thank the Ceann Comhairle for the opportunity to raise this important matter. It is an issue which has been ongoing for almost a year and a half and one that has serious implications for the potential of Athlone as a tourist destination.

Last week, Athlone Town Council learned that refurbishment of Athlone Castle might continue for a third tourist season and the castle could remain closed to the public until the tourist season of 2012. The town council was informed that the executive was awaiting receipt of ministerial consent as part of the development work.

The castle was initially closed in May 2010, the year of its 800th anniversary, resulting in serious controversy, in order to enable the restoration project to begin. Now, more than 16 months later, construction has not even begun. It affects other attractions as the castle was part of a package of visitor attractions, such as trips up the River Shannon and to Clonmacnoise. The restaurants and hotels are also being affected. The likelihood of further delays to the re-opening of the castle is disappointing and worrying for the business and tourism potential of the town. Returning tourists cannot believe the castle is still not open. Its closure is undoubtedly having a negative effect on the town at a time when we should be doing all we can to attract tourists. There is also fear that the delay in construction could threaten the grant funding for the regeneration and restoration of the castle if the work is not carried out on time.

The project is designed to provide improved exhibition space, upgrade interpretative facilities as well as an overall restoration of the castle. I understand an archaeological impact assessment has to be conducted at the site and ministerial approval is then needed from the National Monuments Service before the work can begin. The restoration is costed at €3 million, a significant investment that is warmly welcomed in Athlone. The town, however, cannot see another tourism season go by without the castle being open to visitors. The website, Athlone.ie tells visitors that the facilities of the castle, “are once again being re-developed to bring the standards of interpretation and display in line with the visitor expectations of the twenty-first century”. The keep of the castle will be used to tell the dramatic story of the famous Siege of Athlone while the other buildings will house a modern interpretative centre focusing on Athlone, the castle and the periods both before and after the siege. There will also be a new presentation on the life and times of John Count McCormack, Athlone’s most famous son.

Will the Minister provide an update on the current stage of the castle renovations, give an indication of when it will be open to the public and an assurance that the grant will not expire before construction is complete?

Minister for Arts, Heritage and the Gaeltacht (Deputy Jimmy Deenihan)

I thank Deputy McFadden for raising this matter. I am aware of her deep commitment and interest in cultural tourism and the arts, including amateur drama. I agree with her that this is indeed a most worthwhile proposal and I appreciate the opportunity to clarify the position in so far as my Department's involvement is concerned. We are all in agreement that the project should proceed as quickly as possible and that it will be a valuable addition to Athlone's arts and heritage portfolio.

As the Deputy outlined, Athlone Town Council is developing a visitor centre within the bounds of Athlone Castle. An application for consent for the visitor centre, made on behalf of Athlone Town Council under section 14 of the National Monuments Act 1930, is being dealt with by my Department's National Monuments Service. Athlone Castle is a national monument owned by the Minister for Arts, Heritage and the Gaeltacht and, hence, my consent as Minister is required under the Act to any planned works that might impact on the castle itself. Clearly the visitor centre falls within that framework.

The proposal, of course, also needs planning permission and Athlone Town Council has already completed the Part 8 planning process. The then named Department of the Environment, Heritage and Local Government — the responsible Department at the time — was consulted in connection with the Part 8 process and provided its observations to the council in May 2010. The Department raised no objections but asked that the proposed works be overseen by an archaeologist and advised that ministerial consent would also be needed under the National Monuments Acts 1930-2004 on the basis I have outlined. These are routine requirements that would form part and parcel of the Department's response to any planning application relating to a national monument.

The application for consent under the National Monuments Acts was subsequently submitted to my Department on 16 August 2011. The Department immediately referred the application for observations to the director of the National Museum of Ireland, who is a statutory consultee under the National Monuments Acts 1930-2004, and also to the Office of Public Works in light of the castle being in State ownership. Neither body has raised any objection to the proposal. In the meantime, my Department has written, our letter issued on 16 September 2011, to the archaeologist who lodged the consent application on behalf of the town council asking for an archaeological impact assessment in respect of the proposed works. Again this is a routine requirement associated with the consent process and would have to be furnished in all such cases.

The objective of an archaeological assessment is to verify that the approaches to preservation in situ and preservation by record of archaeological material will be applied appropriately to the particular development. By helping to ensure development projects are organised from the outset in such a way as to avoid or minimise archaeological impact, archaeological assessment can eliminate or reduce costs and delays that could otherwise arise along the way. The archaeological assessment is, therefore, a most valuable tool that will help the developer to resolve potential pitfalls in advance, rather than having to deal with delays and associated expense after the contractor has started work.

From what I know of this proposal I believe it will become a valuable attraction for tourism in the midlands, for promoting Athlone's heritage and a wonderful amenity for the people of the town. It is the type of venture I encourage other local authorities also to become involved in. Indeed it will nicely complement the redevelopment of the adjacent Fr. Matthew Hall as an art gallery for which funding has been provided by my Department. We must be mindful that great care is needed to ensure the integrity of a structure like Athlone Castle, the oldest part of which dates back to the beginning of the 13th century, is properly safeguarded for future generations. To do otherwise would be to damage irredeemably its legacy and undermine the very project we are seeking to promote. Nevertheless, it will be apparent from what I have said that my Department has at all times acted speedily and positively in this case and we will continue to do so. The Deputy can, therefore, be assured that once the archaeological impact assessment is received in the Department it will be looked at immediately with a view to a decision on the consent application being made as soon as possible afterwards.

Deputy Nicky McFadden

I thank the Minister for his reply. The funding for the art gallery is very welcome. His comment that the decision on the consent application being made as soon as possible afterward makes me anxious that we could lose another tourism season. The castle has been closed for two seasons and I ask that the decision be made as speedily as possible.

Deputy Jimmy Deenihan

It will depend on to the archaeologist who lodged the consent application on behalf of the town council submitting an archaeological assessment. I assure the Deputy that when it comes before me, I will sign off on it immediately. It is important that she contacts Athlone Town Council and ensures the matter is attended to immediately and that the impact assessment is conducted in an appropriate fashion and the form returned to the Department immediately. I will adjudicate on it and there will be no further delay. It is very much in the hands of the archaeologist and Athlone Town Council.

Long-term Care Home

Acting Chairman (Deputy Olivia Mitchell)

As four Deputies have joined in tabling this matter, each has one minute.

Deputy Seán Crowe

St. Brigid's care home in Brittas, County Dublin opened in 1935. In 1959 it became a nursing home. Does the Minister realise that the staff and relatives were informed of its closure in the media? It shows a complete lack of decency. We were told the HIQA report in 2009 made some criticism of St. Brigid's home but according to the report the centre was well organised, management complies with the requirements of the Health Act 2007, the regulation standards and residents received a good standard of service, appropriate treatment and are treated with courtesy and respect. In summary, it stated the home had a good standard of care. There was a shortage of chairs and the building was in disrepair. A fortune has been spent to upgrade the building. There is a new palliative care and physiotherapy centre which cost approximately €2 million. New windows have been installed.

Deputy Billy Kelleher

I concur with Deputy Crowe that the manner in which the staff and residents were informed of the situation through the media is totally unacceptable. The centre is home to some people. What will happen to the number of long-term beds in the region? The transfer of people who no longer need acute care will have profound implications for hospitals. There is a proposal to transfer some patients to Inchicore. It is clear there will be fewer long-term beds available in the greater Dublin region. A large number of beds have been closed in hospitals across Dublin.

There are currently 471 people waiting on trolleys but if we continue the policy of closing beds under any guise, including the Minister's new format, there will be massive overcrowding in accident and emergency departments. Hospitals will not be able to function and will have to activate major overcrowding initiatives to deal with the stress caused in accident and emergency departments. This is part of a broader issue. The manner in which staff and patients were informed of the closure is not acceptable.

Deputy Billy Timmins

It is regrettable that despite the reform of the Dáil we only have one minute each to speak.

Can the Minister of State explain why HIQA, having carried out a report and sought certain changes which were made, recommended the closure of the hospital? It is inexplicable that millions of euro have been spent on the facility over the past year and it will be closed on a whim. I do not have a difficulty defending hard decisions but in this case it is very difficult to support the statutory body, given the manner in which it has behaved and wasted money.

With regard to staff and relatives hearing of the closure through the media, I understand the HSE briefed some unions and one put the information into the public domain early on Monday morning having been briefed on Sunday night. I would like the Minister of State to confirm if that is the case. If it is, the HSE should consider how it conveys information. It should not brief unions in future. As a public representative in the area I was not briefed.

Deputy Catherine Byrne

Like everybody else I am very concerned about what happened yesterday and how the information on the closure of the home was released to the media. I am concerned about the 80 patients and staff who are now in turmoil. At the beginning of the year Brú Chaoimhín on Cork Street was closed with the loss of 120 beds and now 80 beds have been closed in Tallaght.

The new unit in Inchicore is lovely. It has not been opened but only has capacity for 50 beds. In 2009 the HSE made a commitment in writing to the residents in St. Michael's that 15% of the allocation of beds in the new long-term care centre would be given to people living in Inchicore, Kilmainhan and Ballyfermot. To date nothing has happened. I am concerned that 120 beds which are vital for people who want to return to and live in the community will be lost.

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

I thank Deputies for raising this issue. It provides me with an opportunity to update the House on this matter. St. Brigid's in Brittas, County Dublin, was established in 1959. It was originally a tuberculosis clinic which opened in 1935. There are currently 80 residents, as has been outlined by Deputies, at the facility. There is also a day centre at the front of the main building providing a service to older persons from the local community.

The HSE completed a survey of the physical infrastructure, mechanical services installations and water and drainage services at the unit and found substantial issues and deficits in these areas. It is estimated it would cost almost €3 million to carry out essential works to address these issues. However, these works would not ensure compliance with national quality standards.

The HSE decided to close St. Brigid's and transfer the majority of services to the new modern purpose built unit at Hollybrook Community Nursing Unit at Inchicore. The new CNU at Inchicore has a total capacity of 50 beds. It has not been opened to date due to the current constraints on staffing. As the capacity of the new CNU is less than that at St. Brigid's the proposal also envisages some staff and residents will transfer to other public units. This will provide the HSE with an opportunity to reopen beds that are closed at these facilities.

Selection of an alternative placement for residents will be informed by the medical and care needs of each resident as evaluated by clinical staff. It is important to emphasise that no resident will be placed in a more costly financial position because of the move. The day care services at St. Brigid's are used by approximately 18 people daily from Monday to Friday. Part of the relocation plan will include the placement of these clients in alternative day centres suitable for their needs in their local areas. Ongoing consultation will continue to take place with residents, their families, staff, representative organisations and public representatives.

I would like to reassure the House that patients in Tallaght Hospital or any other acute hospital who require long term residential care can continue to apply for financial support under the nursing homes support scheme. Once a person receives approval for financial support he or she can choose to enter any nursing home participating in the scheme in any part of the country, subject to the nursing home having an available bed and being able to cater for the person's particular needs. This applies to public, private and voluntary nursing homes alike.

Patients at Tallaght Hospital requiring residential care will be able to avail of beds at the newly purpose built CNU if and when they become available. They will also be able to avail of options from public beds that are reopened in other facilities or they may choose a bed in a private nursing home. I understand that the indicative timescale for the transfer is between three and six months.

Deputy Billy Kelleher

I welcome the Minister of State's reply. Services are being downgraded across Dublin. Fewer beds are now available for long-term stay patients which will ensure acute beds in hospitals all over Dublin will back up. It is unacceptable when there are also many bed closures elsewhere. The time limit is appalling.

Deputy Seán Crowe

Would the Minister of State facilitate a meeting in order that we can raise some concerns? We will not deal with any serious issues here.

Deputy Billy Timmins

How much money was spent on the facility since the last HIQA report? Who sanctioned it? I understand unions were briefed on Sunday night and may have put the information into the public domain. Can the Minister of State establish if this is the case? If it is the case, will she give a commitment that unions will not be briefed before relatives and staff in future?

Deputy Catherine Byrne

The HSE framework plan for 2009 states: "Elderly residents who previously had to access long-term resident care outside the area will now be able to continue to live within the local community". What commitment can the Minister of State gave to the people living in Inchicore, Bluebell and Ballyfermot that the 15% allocation of beds promised in the new unit in Inchicore, Hollybrook, will go to them?

Deputy Kathleen Lynch

I agree with the Deputies that some leeway must be given when a topical issue is of concern to more one Deputy. This debate is a case in point.

I do not have the type of detail sought by Deputy Timmins but will seek it out and reply to him. I cannot give an assurance that unions will not be notified before families. I understand consultation took place with people living in the unit and their families. People who work in the unit are entitled to representation. I reassure Deputy Crowe that I will have no difficulty in meeting representatives who are concerned about the issue. There will be a deficit in the number of beds available. It is an issue to which we will have to give very careful consideration.