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Dáil Éireann debate -
Thursday, 9 Feb 2012

Vol. 755 No. 1

Order of Business

It is proposed to take No. 16, Legal Services Regulation Bill 2011 - Second Stage (Resumed); and No. 17, statements on the development of the national disability strategy, to be taken not later than 1 p.m. and the order shall not resume thereafter. It is proposed, notwithstanding anything in Standing Orders, that the following arrangements shall apply to No. 17: (i) the opening statements shall be made by a Minister or a Minister of State and the main spokespersons for Fianna Fáil, Sinn Féin and the Technical Group who shall be called upon in that order, may share time and shall not exceed 15 minutes in each case; (ii) the statements of each other Member called upon shall not exceed ten minutes in each case; (iii) a Minister or a Minister of State shall be called upon to make a statement in reply which shall not exceed ten minutes; and (iv) Members may share time.

There is one proposal to be put to the House. Is the proposal for dealing with No. 17 agreed to? Agreed.

We can all agree that the first priority of the Government and the country is employment creation. When will the Minister for Jobs, Enterprise and Innovation bring forward a jobs plan? Despite the modest recent reduction in the numbers on the live register, the figure has remained stubbornly high for the past 12 months. Can we have a date for the announcement of a jobs plan? How quickly will the subsequent legislation such as a temporary partial credit guarantee Bill be brought before the House?

Is it the Government's intention to hold off on the publication of fiscal responsibility legislation until the Attorney General has made a determination on the question of whether a referendum is required to implement the fiscal treaty? When is that advice from the Attorney General likely to be received?

The jobs plan will be launched next week. Later that week or during the following week time will be allocated for statements in the House. As I am sure the Deputy is aware, because it has been widely flagged, the plan will contain a number of initiatives targeted at helping the SME sector and kick-starting job creation in it.

The Government has requested the advice of the Attorney General on the eurozone fiscal compact. The fiscal responsibility Bill will have a role in that context because of the undertaking we have given. The Minister for Finance has done an amount of detailed work on the Bill which will be brought before the House in the context of the Attorney General's advice being received and of decisions to be made by the Government about the fiscal compact.

In the Alice in Wonderland world of economics pursued by the Government it appears that those who have retired early from the health service, as an alleged cost-saving measure, can, in the words of the Minister for Health, be rehired, presumably while retaining their handsome pensions. Surely this is a prime example of Darby O’Gill economics. In the hope the House will have an opportunity to address some of these matters, will the Government intervene to bring forward the Health and Social Care Professionals (Amendment) Bill in order that we can address some of the major questions relating to the health service? The retirements are being spoken about as a cost-saving measure. We might recognise that there are cost-saving measures that could be implemented in the prescribing of medicines. In that regard, will the Health (Pricing and Supply of Medicines) Bill also be brought forward in order that we can address a real cost saving of public money?

Most of the staff who are retiring early are close to their retirement date. The Ministers for Health and Public Expenditure and Reform have indicated that there may be a need to exercise flexibility in a limited number of cases to allow retiring staff to stay on a little longer. The Government made such a decision in the case of the Director of the Office of Corporate Enforcement, for example. Allowing some flexibility, as in the case of teachers teaching examination classes, makes good management sense when the number of staff who will take the retirement option is completely unpredictable.

The House debated the HSE service plan last week. The Bill is due to be brought before the Dáil in this session.

Does the Minister have any idea of the numbers that will be considered for rehiring?

They will be rehired in very exceptional circumstances.

With the publication of the Finance Bill, will the Minister give the House some indication of when we will have an opportunity to discuss the Bill? I note that section 14(6) of the Bill was not included in the explanatory memorandum. This allows for education fees to be paid to employees participating in SARP. Effectively, employers would not have to be charged tax on education fees up to a limit of €5,000.

Deputy, that will be on-----

The parents of Irish citizens are not as fairly treated in the payment-----

I understand that will be discussed next week.

-----and compared with persons who have already been in receipt of generous tax allowances-----

I call on the Minister.

Would the Minister be in a position to clarify when she will have an opportunity------

(Interruptions).

First, there will be three days of debate on Second Stage of the Finance Bill 2012 next week. If there is any incomplete documentation, I will ensure that it is sent to the Deputy.

The SARP provision is on the advice of the IDA. In effect, the people who may benefit from this will be overseen by the IDA. When the previous Government was in power, the focus of tax breaks was in respect of bricks and mortar. This is a small provision for highly targeted individuals. It is not to do with property-based tax breaks on which Fianna Fáil spent billions per annum and which ultimately helped-----

And from which many of the Minister's people benefitted.

Mr. Regling and Mr. Watson said that was what brought the economy down.

The Government is shutting them all down.

Most Deputies are aware that modern companies, which are major international giants such as Google and Facebook, rely heavily on human intellectual capital. In order to attract additional foreign investment, it is critical that we attract people who help to create more jobs here. The projected cost of this relief for up to 100 individuals over a period of time is €3 million to €5 million. It is very modestly targeted.

It is open ended, and it contains no requirement to produce one job in the State.

The requirement by the IDA is that each of these individuals would generate 50 jobs.

No. It is not in the legislation.

Deputy Doherty, please.

The company is to report, but there is no requirement that the tax break produce jobs.

The Deputy is a modest person who has some experience of modern business. The big jobs in this world at the moment are being created by the likes of Facebook and Google and I hope that, in due course, some of what we create will end up in Donegal.

This is open ended. It is not just for Facebook and Google. It is for any company outside of this State to put its employees in here.

(Interruptions).

It is being done to provide a modest tax break that costs €3 million to €5 million.

A modest tax break. Does the Minister know how much it costs? The tax break is worth up to €64,000. That is not modest. The Minister should ask lone parents if that is modest.

We are not having a debate this morning.

Packages such as this will be on the recommendation and oversight of the IDA.

They will have €5,000 in fees paid for their children, and their flights home once per year.

Deputy, your colleagues want to get in.

Does the Deputy want jobs created in this country or not? There is no proposal to which he is not opposed.

We want to see high-end jobs in this country for our young graduates who have so much to contribute to the development of human capital.

That is why we are giving bribes to foreign executives.

In respect of the Finance Bill 2012 and the implications it will have for the health service, has the Minister any firm proposals to deal with the outrageous situation in the processing of medical card applications?

No, Deputy. We had this yesterday. Is this on legislation?

Yes it is. I am asking about this because it is an important issue.

Is there legislation promised on this?

So the Government is proposing to do nothing to improve the current situation, which is outrageous.

The Deputy can table a parliamentary question or raise it as a topical issue matter.

(Interruptions).

I did not ask the Minister for injustice about this.

The Deputy is turning the place into a kindergarten.

If the Minister for injustice can deal with his own Department, he will be doing very well.

I wonder if the Minister will arrange meetings at Dublin Airport between these few dozen high flyers she is bringing in and the thousands of our own brightest and best who are being forced out of the country by her Government's insane austerity policies.

Are there any further amendments from the Government on job creation that we do not yet know about? I ask this in light of the Minister for Health telling us that hundreds of vital health service staff who are being induced to leave will actually meet themselves on the way back in to fill the same jobs.

Revolving doors.

When will we have legislation, or possibly an amendment to the Finance Bill 2012, to provide the 100,000 real jobs that the Government parties promised before the general election?

When Finland had a bank crash some decades ago, the Finnish Government wisely decided to invest not just in bricks and mortar but also in human capital. As a consequence, Finland became a country at the leading edge of technology. This Government wants to see the bright young graduates that our education system has produced being enabled opportunities to stay and work in Ireland through the development of human capital and through the development of intellectual capital.

Is that why the Government is cutting postgraduate grants?

Modern growth and investment are strongly related to human capital resources-----

So why is the Government cutting postgraduate grants?

-----whether in IT, culture, music or entertainment. We want our share of those investments and I regret that the Deputy should be so negative.

The early retirement scheme is bringing forward retirement. These people are going somewhat earlier than they otherwise would have gone, and the Minister for Health has provided very significant budget lines in respect of A Vision for Change and primary care. The health service management are managing this change. That is their job.

Under what legislation is the Minister for Justice and Equality - I see his deputy is also here today - advertising for space in Clonmel to accommodate the FCA when they are closing down the barracks there? They have an advertisement in yesterday's newspaper looking for accommodation. They have perfectly good accommodation already.

That is not promised legislation.

That is what is happening. The Minister for injustice is doing this in Clonmel.

I will ask the Minister.

I will ask the Minister-----

Is there any legislation on this?

There is no legislation.

My own brother served in the Reserve Defence Force for a long period of time. The reserve does a great job around the country and the Minister is to be commended-----

For dumping them out of the barracks and onto the street. He should be ashamed.

-----for ensuring that facilities for the Reserve Defence Force are made on an appropriate basis, along with retaining a very significant number of Defence Forces personnel.

The Deputy can table a parliamentary question. I call on Deputy Stanley.

Deputy McGrath should join himself.

I did. The Deputy's party is a dad's army.

I would like to ask the Minister about promised legislation on distressed mortgages. I have asked the question before of the Taoiseach, the Tánaiste and the Minister during Question Time, and I am still no further on with it. Four out of ten local authority loans are in serious distress of more than 90 days or more. I know that from an answer I received to a parliamentary question.

Is this on legislation?

It is on promised legislation. Just bear with me because I have tried this a number of times over the past six months and I have not got a straight answer. The Minister for the Environment, Community and Local Government is present so I hope we can get a straight answer. Four out of ten local authority loans are in serious distress of 90 days or more, which is more than four to five times the rate of those who have borrowed from private lenders. I have raised this issue on the Order of Business and with the Taoiseach and Tánaiste on Question Time, but I have got no further with it.

Local authority officials are at their wits' end trying to balance books. People are coming before the courts and losing their houses-----

Can you help me, Deputy? Which legislation is this?

The Government has the Keane report before it, as well as the personal insolvency Bill. Will the Minister include measures in the personal insolvency Bill to deal with this issue of distressed local authority loans? I ask for a straight answer. Will the Government honour the election promises by both parties to the people that they would deal with the issue of distressed loans?

Local authority loans are part of the stock of mortgage loans which also includes other types of loans. The Government acknowledges that many families are in serious distress with their mortgages. This is the reason the Government is bringing forward a series of measures to deal with personal insolvency and debt. These measures have been widely welcomed by organisations that deal with people in mortgage distress, including the Money Advice and Budgeting Service which is funded by my Department. Last year, my Department made payments totalling €90 million in respect of mortgage interest supplement for families in distress. The personal insolvency legislation will proceed in this session.

I asked about local authority loans.

The Road Safety Authority has published statistics on the number of drivers who have accrued penalty points but these cannot be attached to their driving licences because these drivers are not driving on Irish licences. This is a matter of great concern when one considers the scale of the problem with approximately 300,000 drivers in the State to whom this applies. It is a matter of concern because it is not possible to enforce the law to the fullest extent across this number of drivers. I ask if the Government has given consideration to bringing forward some amending legislation to deal with this matter to ensure that all drivers are subject to the same penalties and there is a capacity to continue to reduce the number of deaths on the roads.

This matter has been around for 20 years and ultimately will only be solved at a European-wide level when states can advise each other of the penalty points incurred by each other's nationals. This is a matter for discussion at European level. We are not in a position nor has it been possible for the past 20 years, to pursue those who have incurred penalty points and who are outside the State. I know our own citizens regard this situation as very aggravating but I hope this can be addressed in a Europe-wide context.

Considering approximately 100,000 people are struggling to keep a roof over their head and dealing with mortgage arrears and the public in general are struggling with the effects of the budget, I ask the Minister to explain to the House why the Taoiseach, Deputy Kenny, has signed a statutory instrument on 31 January 2012, just last week, to confer an additional payment on a Minister of State, Deputy Jan O'Sullivan, a colleague of Deputy Burton's, of an additional €17,205 which is to be tax free. I ask the Minister to explain to the House and to the public that in light of the austerity measures, why S.I. 28 of 2012 has been signed by the Taoiseach to confer a tax-free allowance of €17,205 on top of the junior Minister allowance of €130,000?

Deputy Doherty, please.

What has this to do with legislation?

It is a statutory instrument and as a Member of this Parliament-----

I have the right to challenge a statutory instrument within 21 days. I am challenging the fact that an additional payment has been conferred on a junior Minister without even a whisper of it in this Chamber.

The Deputy has asked the question.

What about the Sinn Féin members in Westminster?

Deputy Kehoe is another person who also gets the allowance of €17,000. I ask the Minister to justify this payment.

I understand that Deputy Adams when in Westminster claimed about £1 million and that Sinn Féin claimed a total of about £5 million in respect of staffing and other supports-----

Why is Deputy Jan O'Sullivan getting an additional tax-free allowance of €17,000?

The first action of this Government was to reduce ministerial salaries. The Taoiseach and the Civil Service set the level of reduced payments for Ministers and this would have been reflected in the statutory instrument.

On a point of order, I wish to notify the Chair that I am challenging the statutory instrument which is my right as a Member. I have 21 days in which to do so.

The Deputy can put down a motion.

I want this issue debated in the House, as it will be in a committee next week.

The time has elapsed and I cannot call further speakers.

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