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Dáil Éireann debate -
Wednesday, 22 Feb 2012

Vol. 756 No. 3

Topical Issue Debate

Shannon LNG Project

I thank the Ceann Comhairle for selecting this matter, the importance of which is evident from the fact that four Deputies from County Kerry have tabled it for topical issue debate.

I was angered by the decision of the Commission for Energy Regulation, CER, to produce a report following a meeting in the Taoiseach's office in the week leading up to Christmas between the Taoiseach, the Minister for Communications, Energy and Natural Resource, Deputy Rabbitte, the Minister for Arts, Heritage and Gaeltacht Affairs, Deputy Deenihan and myself and Shannon LNG at which there was a lengthy discussion on what further steps could be taken to resolve this matter. Two solutions were identified, including that the parties could sit down at a table and try to come up with a solution and investigation of whether the complaint made to the EU Commission could be suspended until such time as a consultation process had been concluded. Unfortunately, neither happened.

The report issued last week by the CER ultimately determines the framework upon which all further decisions on whether this project will go ahead will be made. I come from a county and constituency which has enormous unemployment. There has been much talk about export growth. This project could result in more than $1 billion being brought into the country and the creation of approximately 700 jobs. The McCarthy report, often condemned in this House, states that this would provide fuel security. It further states that if we increase the supply of energy to the country it should be possible to lower the price. I acknowledge the interconnector between Ireland and the UK, which supplies 95% of our gas at a cost of €50 million per annum.

None of the solutions put forward suggest to me that this matter will be resolved soon. This issue needs to be addressed in an open and transparent manner. The date of 17 March was set as the deadline for finalisation of talks on this matter. It is imperative that the regulator is brought before a committee of the Oireachtas to explain why he produced a report which prefixes a framework that could ultimately prevent this project going ahead. It is essential that this matter is given urgent consideration as it could benefit north Kerry, the county and the country.

I agree entirely with the points made by my colleague, Deputy Spring. The raising of this important matter by four Deputies who represent County Kerry demonstrates how critical it is. The bottom line is that jobs are at stake. A fantastic announcement was made yesterday on the creation of 1,000 jobs in County Louth through the establishment of PayPal. This project is its north Kerry equivalent. A total of 650 construction jobs are associated with the project and there would be a further 100 permanent jobs were it to proceed. Millions of euro have already been invested in it and if it gets the go-ahead, up to €1 billion will be invested in the north Kerry economy. It is a no-brainer and everything possible must be done to ensure it goes ahead. I call on the Minister to take action and do everything in his power to ensure these jobs are created. I emphasise that he must do everything in his power because one of the major barriers to the project has been the lack of regulatory certainty, which he can provide.

As a Deputy representing County Kerry, I would be ashamed if the project were not to proceed. Moreover, Members are not prepared to stand by and let it slip through their fingers because it is too important for those awaiting jobs who perceive it as a ray of hope. Some 17,500 people are on the live register in the county and the project would help to reduce that number considerably. It would alo provide a stimulus for the entire economy of north Kerry and west Limerick. The Minister must, therefore, step up to the mark and do what he can to ensure the project gets the go-ahead and deliver a good news story for County Kerry.

In conjunction with my colleagues from County Kerry, I have brought this brought to the Minister's attention in the hope he can resolve the outstanding matters. As Deputies Spring and Griffin have stated, the project involves approximately 750 jobs, of which 650 would be created in the construction phase. A further 100 permanent jobs would be created thereafter.

Last Friday the Commission for Energy Regulation, CER, published a draft recommendation on tariffs for gas interconnectors which would apply to companies such as Shannon LNG which states it will not use them. A public consultation process is ongoing and at last Monday's meeting of Kerry County Council Mr. Paddy Power of Shannon LNG told the council that the move constituted a fundamental change in Government policy. He stated it was akin to turning up at a football match only to be told one would be playing a game of hurling. This issue must be resolved. I suggest both the Minister and the Taoiseach meet all Deputies from the county as soon as possible. County Kerry is one of the country's black spots; the North Kerry constituency has an unemployment rate of more than 26%. Consequently, it is in urgent need of an input to try to create jobs as young people are being lost on a daily basis. Current developments at Tarbert and Ballylongford are matters that can be resolved politically by a change of policy, if that is what it takes, to ensure jobs are attracted to that part of the county.

I reiterate that I will work with my fellow Deputies, all of whom are wearing the Kerry jersey in this instance and the Irish jersey in respect of job creation. It is essential that this matter be sorted out and if that requires the banging together of heads around the table, so be it. However, matters must not be allowed to continue as they are. The issue is limping on from week to week and there is no light at the end of the tunnel, only speculation. Consequently, the matter must be resolved. Were Members to work together politically, this could be done. I again express my hope the Minister can arrange an urgent meeting with the Deputies from the constituency, as well as the Senators from County Kerry.

This matter pertains to the huge investment proposed in the project mentioned - €600 million in the terminal and €400 million in the power plant. At a time when we are trying to entice investment from throughout the world, it is mind-boggling that we are looking at a gift horse in the mouth and shying away from it in the form of this €1 billion investment. As the other Deputies noted, the south-west corner of Ireland has been devastated by unemployment. It certainly is a black spot that has been overlooked in many respects during the years by IDA Ireland in the main, as well as by the other job creation agencies.

The saga of the Shannon and Tarbert land bank is ongoing and there have been many false dawns. Several projects were proposed, but they fell apart and nothing of significance has taken place. The project mentioned is the most feasible that has been put forward to date. What is ironic is that the Government set out the rules in 2001, following a debate at the Cabinet, to comply with European Union gas directives and encourage new and secure sources of gas supplies in a free and open market with no obstacles attached. Subsequently, however, the Commission for Energy Regulation made proposals that would result in a substantial proportion of the interconnection charges imposed on the direction of the energy regulator being levied on gas suppliers. Consequently, suppliers such as Shannon LNG, Corrib and Kinsale Gas were greatly affected. The Tarbert project certainly would take the main hit in this regard because the other probably have been exhausted. Moreover, when reviewing the proposals made by the Commission for Energy Regulation, the economist Colm McCarthy concluded that they were not consistent with its cost-reducing remit on energy policy. In other words, this meant they were bad for the householder, the consumer and business in general. The Minister should intervene in this regard. He has the power to so do and could issue a Government policy directive to turn things around and rescue the project because otherwise it will be lost.

I thank the four Deputies for again giving me the opportunity to address Members of the House on this important issue. I have consistently welcomed the proposal by Shannon LNG to construct a liquefied natural gas, LNG, terminal near Ballylongford, County Kerry. Such a facility, together with the bringing onshore of Corrib gas, would provide important additional security in providing a gas supply for Ireland. I met the promoters of the project soon after taking office last year and both my Department and the Commission for Energy Regulation are in regular contact with Shannon LNG. Most recently, the Taoiseach, the Minister for Arts, Heritage and Gaeltacht Affairs, Deputy Deenihan, Deputy Spring and I met its representatives on 21 December. The meeting offered a timely opportunity to review the state of play on the project and underline the Government's positive interest in the potential investment.

The meeting also discussed the central concern of Shannon LNG, to obtain regulatory certainty at the earliest opportunity on future pricing and the treatment of Ireland's two gas interconnectors. Together with all players and potential players in Ireland's gas market, Shannon LNG has a key commercial interest in the outcome of the regulator's ultimate decision on this highly complex regulatory question and given the complexities involved, there are many perspectives on what the decision should be. The regulator has been engaged in an extensive consultation process on the matter for the last few months and has had considerable interaction with Shannon LNG, as well as with all key stakeholders.

In line with the stated need for all interested parties, including Shannon LNG, to have clarity and certainty on the future regulatory regime as soon as possible, the regulator originally had signalled it would come to a decision last autumn. Unfortunately, the process was delayed by Shannon LNG's own decision to lodge a number of complaints with the European Commission.

This further delay in the process was discussed with Shannon LNG at the meeting on 21 December, as was Shannon LNG's own particular perspective on the regulatory issues for decision by CER.

Decisions on the regulatory treatment of the gas interconnectors and tariffing are statutorily a matter for the CER under the Gas (Interim) (Regulation) Act 2002. I have no function in the matter. As the independent energy regulator, the CER has a remit to protect energy consumers, to ensure security of supply and to support competitiveness. It also has a duty to ensure that new sources of gas for the Irish market do not result in unwarranted increases in the price of gas to business and domestic consumers.

I understand that on 17 February, the CER published a proposed decision paper - its normal way of going about something like this - on the regulatory treatment of the gas interconnectors. The regulator has announced that it intends to hold one further public forum for stakeholders on 1 March. Given the multiplicity of perspectives on the matter, I am sure all stakeholders, including Shannon LNG, will welcome such a forum. In tandem, stakeholders have the opportunity to respond to the regulator by 16 March on the matters raised in the proposed decision paper. At the end of this period, the regulator will assess all comments received and publish a final decision. I understand the regulator expects a final decision to be available by end April. I would hope the regulator will improve on that date. The regulator's final decision will bring the regulatory certainty which Shannon LNG has repeatedly sought.

I thank the Minister for his reply. I acknowledge that the forum on 1 March will be welcomed by Shannon LNG. However, the mantra of this Government for the past 12 months is that we want to create jobs for our people and that we want to do everything in our power to make sure we reduce the unacceptable number of more than 400,000 people on the live register. Quite frankly, there needs to be greater intervention by the Minister in this matter. I do not feel it is good enough for him to come in here and tell us this is a matter for the energy regulator. He needs to directly intervene in this and guarantee these jobs for north Kerry.

This is a crucial matter for us. We need certainty as does the company. Our international reputation is at stake. When a company has expressed so much interest in our country and has already invested so much money, the Government needs to welcome that interest and show of solidarity with the Irish people. That is what I am asking the Minister to do.

An increased supply on the market surely should be good for competition rather than bad for competition. That is something that should be borne in mind.

I thank the Minister for his detailed response, but we have gone no further. There is an impasse here and we have to find a way to break it. The Minister mentioned Shannon LNG's own decision to lodge a number of complaints with the European Commission. As I read the rest of his speech, that is not the reason for holding things up. The proposal to have an opportunity to respond to the CER by 16 March is in the proposed decision paper.

If the political will exists - there is collective political will from all parties in respect of job creation and from a parochial point of view in trying to get jobs into Kerry - this must be overcome. Both the Minister and the Taoiseach have a role to play in this. Much was said at that meeting last Monday. I referred to a €75 million tariff. Is that true or is it just wild speculation? If that is the case, it will ensure it effectively will not happen.

I am in agreement with the Deputies. There is an essential need for the Government to intervene. I cannot see anything positive coming out of the process here, whereby stakeholders will make further submissions by 1 March. We are going around the house and back to square one again. The importance of this cannot be over-emphasised. We are being told on a weekly basis about our high energy costs for attracting industry and maintaining businesses. Our electricity costs are enormously high even to the householder when compared to the European average.

Perhaps we need to look at EU legislation and regulations. We need to circumvent this in some way, and that is what government is for. We are here as elected representatives for our county, and this is one of the most essential matters that has come before the House in the past 12 months. We should examine every avenue possible to find ways and means to overcome the impasse. There is a huge responsibility on all of us to reach a resolution as soon as possible. Time is of the essence and I ask the Minister and the Government to examine this.

I thank the Deputies and I share their concern to grow employment in Kerry. However, Deputy Griffin is essentially asking me to ignore the statute, and the other Deputies seem to concur. Perhaps the House should take greater care when passing a law like this, but the House passed the law and Deputy Griffin is asking me to break the law. I cannot do that, but within the constraints imposed on me by the law, I have done everything that is humanly possible to mediate the earliest possible outcome to this issue. We would have had an outcome, as promised by the regulator, last autumn. However, for reasons that it explained at our meeting on 21 December, the company decided to appeal to Europe against a decision that was not yet made and as a result, disabled the issuing of a decision last autumn.

At our meeting on 21 December, the Taoiseach, the Minister for Arts, Heritage and the Gaeltacht and Deputy Spring met with the promoters and the American representative. They asked for a forum and they are getting a forum. It is normal practice for the regulator to publish this kind of paper in advance. Let the stakeholders go along to that forum for however long it lasts and let them effect the changes that are deemed sensible.

Under the regulatory regime, once utilisation of the interconnector decreases due to new sources of supply, the price per unit of gas transported through the interconnector will increase. Therefore, in addition to its consumer protection remit, the regulator also has a competitiveness and a security of supply remit. Whatever regime is put in place for the interconnectors, it is important for all stakeholders that it should be fit for purpose. In other words, there was a huge investment by the State in the interconnectors between here and the neighbouring island. We cannot strand those assets. They have to be remunerated. The final sentence of the executive summary to the paper published by the regulator reads:

The CER has concluded that the current regulatory treatment of the BGE gas interconnectors with GB will no longer be fit for purpose when new sources of gas come on stream. [It is referring to the Corrib and to the LNG project in this regard] If the system is unchanged, it will result in significantly higher gas tariffs to all gas customers, and will distort efficient economic signals for the future use of the transmission system.

It is the job of the CER to address such issues. It is the task of LNG and other interested parties to attend the forum and influence the ultimate decision. The CER has produced a draft decision, that is all.

I understand the concern that exists in Kerry with regard to jobs. Interest in this issue is whipped up every so often. I assure the Deputies that there is no lack of engagement in respect of this matter. I have pushed the law to the boundaries. The Minister for Arts, Heritage and Gaeltacht Affairs, Deputy Deenihan, and Deputies Spring, Griffin, Martin Ferris and Tom Fleming are all interested in this matter. I understand that but I am constrained with regard to how far I can go. I hope that on this occasion the regulator will be permitted to do its job and bring the issue to finality.

Northern Ireland Issues

I welcome the Minister for Justice and Equality. I wish to commend the Independent Commission for the Location of Victims Remains on the work it has been doing. It has had a number of specific successes but a total of seven bodies have not been found. These are the bodies of people who were callously murdered by different paramilitary organisations.

I wish to outline the reason why I raise this matter. Time is running out for many of the families which have an expectation of locating the remains of their loved ones. It is my intention to create an awareness of this issue and to send out a strong message to those who are in possession of information or who have access to such information. These individuals they should search their consciences in the context of deciding whether they should make this information available.

I want to place this matter in context. I live on the coast of Donegal and a large number of people in my constituency are involved in the fishing industry. During my lifetime, many individuals involved in that industry have tragically been lost at sea. The consolation to people who live in fishing communities comes when the body of someone who has been lost is recovered. That is a powerful consolation. I recall attending a wake on one occasion at which a grandmother repeatedly stated "At least we found the body, there is consolation in that". The position is no different for those who ten, 20, 30 or 40 years ago lost loved ones as a result of the Troubles. They know that their sons' or daughters' bodies are buried in the ground somewhere but they are not aware of the specific location. However, they do not know whether they will ever find their loved ones during their own lifetimes. In that context, I call on those with information to consult their consciences in respect of this matter and to take action in order to ensure that the people who have been trying to locate the bodies to which I refer will have some peace.

I thank Deputy McHugh for raising this important matter. The conflict in Northern Ireland, which dominated politics in both jurisdictions on this island for decades, was sadly characterised by a savagery that never lost its potential to shock us. Thousands lost their lives to violence and many thousands more - the families and friends of those victims of violence - were left to grieve, their lives having been changed forever.

During the conflict in Northern Ireland a number of people were abducted and murdered by paramilitary groups and then buried in secret locations. They have become known as "the Disappeared". The Independent Commission for the Location of Victims Remains was established by the Irish and British Governments in 1999 as one element of a matrix of actions taken in the context of the peace process to acknowledge and address the suffering of the victims of violence as a necessary element of reconciliation. The sole purpose of the commission is to facilitate the location of the remains of the Disappeared. It has no role in criminal investigations or prosecutions.

I had the opportunity in November last to meet with some of the families of the Disappeared. They have suffered a very particular cruelty in not only being obliged to bear the tragedy of murder but also in having been denied, for so long, information regarding the burial places of their loved ones. One can only imagine the anguish that these families have been forced to endure over past decades and that some of them still endure to this day. I was struck by their dignity and bravery. They have maintained their hope and resolve for decades and in the face of disappointments. They continue to support one another in their determination to ensure that those still missing are recovered. The Government fully supports them in this. The Northern Ireland Office Minister, Mr. Hugo Swire MP, and the two commissioners, Mr. Frank Murray and Sir Kenneth Bloomfield, were also present at the meeting with the families. We were happy to reassure the families that the commission will continue to do whatever it can to recover their loved ones.

The commission, with the support of the two Governments, has worked tirelessly over the years. I pay tribute to Frank Murray and Ken Bloomfield, and to their investigation team, for their sterling work in what is a very difficult and delicate task. Thankfully, the commission has been able to bring closure for some of the families. Regrettably, there are still seven people on the commission's list who, despite its efforts, have not been located. The commission's current programme of work, based on the information about the possible location of one of the victims, will result in some further excavation works later this spring. The commissioners have emphasised to me that their work is driven by information. I know they made this clear at the Joint Committee on the Implementation of the Good Friday Agreement last week. Without that key resource of information, there is little for the commission to go on. I join Deputy McHugh in calling on anybody, whether they are within or without the republican movement, who has any information which could help locate those still missing to give that it to the commission without delay. I make that call to people who live on this island or who reside elsewhere to provide any information of which they are aware and which could be of help. All information provided to the commission will be treated as strictly confidential and everyone can rest assured that it can only be used to locate and identify the remains. It cannot be given to other agencies, used for prosecutions etc.

The commission has in place a confidential freephone number and post office box address through which information can be passed to it. Information about the commission and how to contact it is available on the its website, www.iclvr.ie. The commission’s sole purpose is a humanitarian one. All the families want is to give their loved ones a decent burial, to have a place to grieve and, in some measure at least, to obtain closure. The Government remains committed to that aim and I call on all others to help bring it about.

The Minister said everything that needs to be said. I echo his call that information be provided. We must send out a strong signal on the importance of this matter to the families. Unfortunately we may not have success for all seven families, but even a percentage increase would be significant. I echo the Minister's comments and concur with him on the efforts of everybody in the commission. It is a question of conscience. People will be grappling with their consciences in bed at night. That is the time to think about it and I ask them to do so. Everything will be treated in the strictest confidence, as the Minister outlined.

I will briefly respond. People have suffered terrible unexpected tragedy in their lives during the course of what occurred on this island during the terrible years of violence and conflict. Families are entitled to know the whereabouts of the remains of their loved ones, they are entitled to have the opportunity for a burial service, and they are entitled to some closure, in so far as it is ever possible to bring it about.

There are people on this island who must know the whereabouts of some of the remains that have yet to be recovered and who, for reasons known only to themselves, are not yet willing to share this information. I call on them to do so, and not only on behalf of the Government because, in saying this, I think I represent all Members of the House, be they members of parties or independent.

One final effort would be a huge help to these families. For the commission to engage in this effort, it requires information. Its work is essentially dependent on information being made available to it. If people on the island were involved in terrible acts in the past and know the whereabouts of the remains of those who lost their lives, they should make some small acknowledgement of their role in this by quietly and confidentially providing essential information to facilitate the commission continue its work and afford new hope to the families who today anxiously await the possibility of remains being located and returned, and the possibility of a proper decent burial service for their loved ones.

Medical Cards

I thank the Ceann Comhairle and his office for providing me with the opportunity to debate this issue and I thank the Minister of State, Deputy Shortall, for coming to the Chamber to respond to the debate.

I very much welcome the recent announcement by the Department and the Minister that under new procedures, a medical card will remain valid, irrespective of the expiry date on the card, once the medical card holder is genuinely engaging with the HSE review process. Given the long delays in processing medical card applications, this should bring some relief to applicants, especially renewal applicants who have been turned down and feel they have strong grounds for appeal.

Under the new procedure, as Members may be aware, while an appeal is being processed the claimant should be able to present the existing card to a doctor or pharmacist who can check the validity of it on the website www.medicalcard.ie. If a person’s card is under review, the person presents it to a pharmacist or GP who goes online and sees the card is under review, and the person remains in the system. However, therein lies the problem.

I will take the example of one of my constituents who had been engaged in the review process. This person had been granted a full medical card for more than a decade but on review was issued a GP visit card. When this decision was being appealed, it was discovered, during a visit to a pharmacist, that the person had been locked out of the system. The difficulty then arose of having to meet medication costs while locked out of the system.

The appeal process cannot be seen online. When the medical card was checked online, it should have shown the card was under review, but it showed a GP visit card had been granted. A technological system which is supposed to be more efficient is causing a problem. For the new procedure to work the medical card database must be up to date and must be cognisant of the appeals process. My office has tested this. I do not claim the examination was scientific but we entered a selection of valid GP visit and full medical cards and drug payment scheme cards, none of which was recognised by the system. There is a technical difficulty. In bringing the matter before the House I ask the Minister of State to examine it and explore how the difficulty can be surmounted.

Deputy Minister of State at the Department of Health ( Róisín Shortall)

I thank Deputy Lynch for raising this issue. I am very conscious of the fact there have been serious difficulties and delays in processing applications, renewals and appeals of medical cards. I have been in ongoing discussions with the HSE in recent months to ensure the level of service provided to the public is brought up to an acceptable level because what is happening at present is not acceptable.

I wish to clarify a number of developments that have taken place in recent weeks and months which should improve the situation. Any medical card holder undergoing a review for a renewed card who genuinely engages with the HSE in this review will retain entitlement to a medical card until such time as the HSE decides on the outcome of the review. This new procedure applies to individuals regardless of the expiry date shown on their medical card.

The eligibility of all standard medical cards for people under 66 years of age has been extended to three years, and to four years for people aged 66 years and over. A self-assessment review process is now in place for all standard renewals for all clients, regardless of age. Discretionary cards, emergency cards and cards held by people in a small number of other categories will continue to be reviewed in the normal way. A fast-track decision process and the associated technical changes have been put in place to deal with urgent review cases. In addition to these changes to the processes for medical card applications, 20 additional staff were redeployed to the central office in January to bring its complement to 150 people. I hope this will help improve the level of service.

I know Deputy Lynch is particularly concerned about medical card appeals. It is HSE policy that a person's eligibility is maintained while the outcome of an appeal is awaited. I will ask the HSE to ensure immediately that this policy is applied in respect of the case the Deputy highlighted and to ensure adequate procedures are in place to prevent mistakes such as this occurring in future. I will engage further with the HSE on the points raised by the Deputy in respect of the website www.medicalcard.ie. I have taken note of the points he has made and I heard a similar complaint recently.

On the broader issue of appeals, I have had very constructive engagement with the HSE in recent weeks on addressing the backlog in medical card appeals. Extra staffing resources have been deployed in this area in recent weeks. The backlog in appeals is being reduced. In recent weeks more than 500 files have been cleared. I expect progress will continue to be made. Senior staff in the Department have assured me they are targeting the end of April as the date by which most of the backlog should be addressed. I have asked for regular updates on progress in this regard. I am very hopeful we will see significant improvement in the coming weeks. I accept fully what Members have been saying about this. The current level of service has not been acceptable. I thank the Deputy for raising the matter.

I thank the Minister of State for coming to the Chamber to respond to this issue. I acknowledge the categorical statement made that people whose cards are under review are entitled to be provided with treatment under their previous qualification. We have a systems rather than a policy difficulty here. The policy is correct but the systems difficulty must be sorted. I appreciate the Minister of State's response in dealing with this matter in a speedy fashion today.

I have a supplementary question. One of the initial stages in the proposed roll-out of a universal health care programme as laid out in the programme for Government is the provision of doctor-only medical cards for patients with long-term illness. This is a similar sort of process in that it broadens the qualification process for the medical cards. Will the Minister of State tell me how that part of the universal health care programme is developing?

I am happy to do that. As the Deputy noted, the programme for Government commits to introducing free GP care during the lifetime of this Government. The first phase will be introduced shortly, bringing all existing claimants of free drugs under the long-term illness scheme to free GP care under that initiative. That requires primary legislation although the Bill is short and straightforward. Work on it is well under way at this point and we hope to bring a memo to Government within the next few weeks, with the legislation to follow. I will seek to have that legislation taken as quickly as possible through both Houses. There is a backlog of Bills stacked up, including a number of health Bills, but I will seek to get this legislation through as soon as possible. I hope that first cohort of people will be brought into the free GP care initiative in the early summer.

I thank the Ceann Comhairle for the opportunity to raise this very important issue and I acknowledge the presence of the Minister of State, Deputy Ciaran Cannon.

Through parliamentary questions and a Fianna Fáil Private Members’ motion I had the opportunity to outline our concerns about the adverse effects the proposed changes to staffing schedules for small schools will cause to many communities throughout the country. This issue is not confined to rural Ireland but is also a concern for some communities in urban areas.

I welcome that the Minister has included an appeals mechanism in respect of staffing schedules for small schools with effect from next September, and that the element of retrospection is removed. However, I understand from the circular that although this part of the retrospection element has been removed actual enrolment numbers for September 2012 have been increased. My understanding is that a school that formerly needed 49 pupils for a third teacher appointment will need to have 53 pupils enrolled in September 2012 to retain a teaching complement of three. The required higher number of pupils is a further cause of concern. Is there provision to take into account an individual school's circumstances?

The Minister's predecessor commenced a value-for-money review of the role of small primary schools which was intended to find out the best way of supporting such schools. Small schools should be valued and protected. The extent of the current concern is due to the unusually high number of primary schools we have in proportion to our population. This is the result of many factors, the most important of which is that our national schools have always played a focal point in the local community. Our population patterns and dispersal are very different to those of most European countries.

In terms of education standards the evidence is that pupil outcomes in smaller schools keep pace with those of schools that have much larger enrolment and specialised support services. Happily, in the past ten to 12 years we have had a major investment in our smaller schools in human and physical resources. In the overall context the money involved has been a tiny fraction of the State's spending but the impact has been enormous, positive and progressive.

I pointed out that 47% of the 3,200 primary schools in the State have five teachers or fewer and consequently it is evident what a huge impact the staffing schedule changes would have on small rural schools. We all accept that small schools tend to have a more favourable pupil-teacher ratio than larger schools. It is important that we bear in mind that teachers in small schools have pupils of different ages and different grades in their classrooms and this adds to the complexity of multi-grade teaching.

The proposed cuts will have a disproportionate and severe impact on minority faith schools such as Church of Ireland schools of which there is a sizeable number in my constituency of Cavan-Monaghan, as well as in County Donegal, the general Border region and elsewhere. Those communities are very concerned about the proposed changes and the future viability of their schools. Minority faith schools have experienced a comprehensive rationalisation during recent decades. If some of these schools close, for reasons of distance it will be practically impossible for some children to attend school under the patronage of one of the minority churches. Many of the clergy, teachers and parents involved in minority faith schools are extremely worried about the future of their schools and are extremely disappointed with the changes being introduced by the Minister.

This action flies in the face of the Minister's stated policy. What does this policy do for school patronage and choice? These changes are blunt in nature and force cuts based on numbers alone, without any consideration of a school's ethos, the geography of a particular area or the impact on the community of removing such a key amenity. In most areas such schools have been the beneficiary of good parental and community involvement. In addition to the potential effects on schools under the patronage of minority churches there will be a severe impact on Gaeltacht schools and gaelscoileanna. I outlined this point clearly in our Private Members' motion.

Why are such important decisions being made in advance of the value-for-money review? This should be finalised and in the public domain at an early date. It is simply not good enough for the Minister and his Department to advise small schools to consider their future and assess their options for amalgamation. The clear message is, "Talk among yourselves". This leads to uncertainty and doubt which are not in the interests of any school or any institution.

We all realise there can be a fluctuation in enrolments from year to year depending on the number leaving sixth class and the new intake. It is not easy for schools to prove likely enrolment for future years, particularly when the numbers are small. The enrolment of one or two pupils can be critically important in small schools. I appeal to the Government to recognise the importance of our small schools. That importance must be given due recognition. Unfortunately, the uncertainty has not been removed with the detail of the appeals mechanism.

I am taking this matter on behalf of my colleague, the Minister for Education and Skills, Deputy Ruairí Quinn. I thank the Deputy for giving me the opportunity to outline to the House the expansion to the staffing appeal process to include small schools affected by the recent budget measure.

Budget 2012 provided for phased increases in the pupil thresholds for the allocation of mainstream classroom teachers in small primary schools. This affects schools with enrolment of fewer than 86 pupils. The first of these phased increases in the pupil thresholds takes effect from September 2012. Out of an overall total of almost 1,200 small primary schools it is envisaged that marginally more than 73 schools will lose a mainstream classroom teacher in September 2012 as a direct result of the impact of the budget measure. The final number of such schools will become clearer as the teacher allocation process is progressed.

The existing staffing appeals process is being expanded to be accessible to those small schools which are due to lose a classroom post as a direct result of the budget measure. Such schools will be able to submit an appeal to the independent staffing appeals board on the basis that it is projecting increased enrolment in September 2012 that would be sufficient to allow it to retain its existing classroom posts over the longer term. The detailed arrangements for this are set out in the Department's staffing circular which was published yesterday on the Department's website. The first meeting of the staffing appeals board will be held in April. Small schools that are projecting increased enrolments in September 2012 should submit their appeals to it on or before Friday, 23 March 2012. The outcome of appeals will be notified to schools as soon as possible after the meeting of the staffing appeals board in April.

This Government recognises that small schools are an important part of the social fabric of rural communities. They will continue to be a feature of our education landscape. However, this does not mean that small schools can stand still or never have their staffing levels changed to something that is more affordable and sustainable for these difficult and challenging times.

School communities should have no reason to feel that there will be a forced closure or amalgamation of their local school. A school does not close because it loses a teacher; schools close because of a loss of pupils. Small primary schools that have had to close in recent years are those that are no longer viable due to falling enrolments. The enrolment in such schools had typically fallen below a total of eight pupils for two consecutive school years.

I thank the Minister of State for his reply but, unfortunately, it does not convey any assurance to schools under the patronage of minority faiths, schools in Gaeltacht areas or gaelscoileanna. I emphasise that this does not affect only rural schools. I met teachers and members of boards of management of schools in Dublin who are fearful for the future.

I welcome the extension of the appeals mechanism to cover small schools. Can individual school circumstances be taken into account? The uncertainty and doubt about the viability of a number of small schools has not been allayed by the Minister's decision and the detail provided regarding the appeals mechanism. I read the circular on the Department's website last night. It was starkly clear that the increased enrolment necessary next September will pose further difficulties for some schools. That is not the understanding I took from replies the Minister gave to parliamentary questions in the House previously. I instanced a school that needed an enrolment of 49 pupils to have a three teacher complement last September, which will need an enrolment of 53 pupils next September to maintain that complement. It is not easy to increase enrolment by that number in a small area, given that enrolments fluctuate.

Unfortunately, the budgetary and academic years do not coincide and anomalous cases always arise when a change is made to the pupil-teacher ratio in the middle of the academic year. This is not unusual and it happened in the past when previous Governments implemented changes to the pupil-teacher ratio. The number of pupils required for retention of a teacher was increased and the Department used the numbers enrolled the previous September to work out the posts that would be retained or lost the following September.

The appeals process sets out deliberately to resolve the anomaly that has arisen from the recent budgetary change. Such concession has not been available to schools in the past and I am glad it will be from now on. Minority faith schools, gaelscoileanna and schools in Gaeltacht areas will also have access to the new appeals process. It sets out to address the potential anomaly whereby we might have removed a teaching post from a school only to find that the pupil numbers dictated that the post would have to be reinstated the following year. The process will take that into account and if a school is experiencing an upward trend in enrolment, it should have no fears about losing posts. It is, however, important to realise that if schools are showing a static or downward trend in enrolment, it will be difficult to make the case to sustain teaching posts in that instance.

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