Gerry Adams
Question:1Deputy Gerry Adams asked the Taoiseach the number of times the Cabinet sub Committee on Health has met since the beginning of January 2012. [7940/12]
Ceisteanna - Questions (Resumed)
Cabinet Sub-committee Meetings
Joe Higgins
Question:2Deputy Joe Higgins asked the Taoiseach the number of times the Cabinet sub Committee on Health has met since the beginning of this year. [12201/12]
Joe Higgins
Question:3Deputy Joe Higgins asked the Taoiseach the number of times the Cabinet sub Committee on Health has met since the beginning of 2012. [12522/12]
Micheál Martin
Question:4Deputy Micheál Martin asked the Taoiseach if the Cabinet Committee on Social Protection has met recently. [13654/12]
I propose to take Questions Nos. 1 to 4, inclusive, together.
The Cabinet sub-committee on health has met on three occasions to date in 2012 - on Thursday, 2 February, Tuesday, 14 February, and Thursday, 8 March. The next meeting of the Cabinet sub-committee on social policy is scheduled for Thursday, 24 May. It has met three times since its establishment last year - on Thursday, 9 June, Wednesday, 21 September and Thursday, 24 November, 2011.
The Deputy will be aware that, in line with Cabinet confidentiality and long-standing precedent, I do not propose to talk about specific issues discussed at Cabinet committee meetings.
The Taoiseach said he would not talk about issues discussed at Cabinet or Cabinet sub-committee meetings but last week he distinguished between the economic management council and meetings between the council and groups. In that spirit, has the Cabinet sub-committee on health met any groups or organisations since the beginning of January? For example, has it met the development board of the new children's hospital or are there plans for such a meeting? The absolutely priority - his Government has spelled this out - should be that the long promised new children's hospital should be built. There is the totally unacceptable situation of children on trolleys waiting for up to 12 hours. Will the Taoiseach give us any sense of any meetings with the HSE or the development board to deal with this crisis?
Before the Taoiseach replies, I wish to put it on the record that questions relating to the activities of Cabinet committees are subject to Cabinet confidentiality.
I can say for Deputy Adams's information that there is a slight difference between a meeting of the economic management council and a meeting between the economic management council and the banks. He is aware of the difference there. As he is aware, the pillar banks and Ulster Bank were before the economic management council on two occasions.
The people who are entitled to attend the Cabinet sub-committee on health are the Tánaiste, the Minister for Health, the Minister for Public Expenditure and Reform, the Minister for Children and Youth Affairs, the Minister of State with responsibility for primary care and the Minister of State with responsibility for disability, equality, mental health and older people. As is required, people attend from different sectors of the Departments where there is cross activity involved.
In regard to the children's hospital, we have not met the group involved in it. The Cabinet approved terms of reference for that group and gave it 56 days to respond to the decision of An Bord Pleanála in regard to the proposal to build the national children's hospital on the site at the Mater hospital. That group has been set up and will report in respect of issues arising from that proposal and other options. A whole range of health issues has passed through and been decided on, both by Government and the Minister for Health. These range from the setting up of a universal health insurance implementation group tasked with drafting a White Paper on universal health insurance by the end of 2012 to the approval of proposals for a permanent risk equalisation scheme. Legislation is in train to make that valid from 2013.
The Deputy will know the special delivery unit, SDU, which has made such an impact on hospital waiting lists, was set up in September 2011. It looked at the question by visiting each individual hospital. There is a range of activities as a consequence of the discussions at the Cabinet sub-committee and the decisions of Government and the Minister arose from that.
Does the Taoiseach see a role for the Cabinet sub-committee on health in regard to the health service meeting the challenge of the approximately 4,000 employees of the health services who have retired, roughly half of whom are nurses? Does the Taoiseach recognise this cannot happen without front line services being heavily and detrimentally affected, with enormous consequences for the health service providers, including extra pressure for both them and for patients? What role does the Cabinet sub-committee on health have in advising, for example, the HSE on the consequences of the Government's disastrous austerity policies as they impact on the health service?
The value of the Cabinet sub-committee, whether in health or any other area, is to be able to draw the relevant personnel together in order to focus on the decisions that need to be made. The Deputy raised a fundamental and important point. As so many people have left the health service of their own accord because of the redundancy package, I am happy to tell the Deputy this matter was the focus of some discussion. I am also glad to tell him that for the first time I saw real evidence of full flexibility and full co-operation being applied under the Croke Park agreement. It is only fair to thank all those, whether front line staff, in nursing trade unions or clinical and medical teams, who actually looked at the situation and, because there was not an endless pit of money, asked themselves how they would implement and deal with the changes arising from the reduction in personnel. Even though there were predictions of catastrophic situations everywhere in the transition period, each hospital manager and local and regional manager signed off on their contingency plans for normal working weeks and weekends and for dealing with rosters and situations that occur from time to time due to unforeseen circumstances. It is only right to recognise the extent of real application by so many people to make that happen in the context of providing the very best care for patients in hospitals.
If the sub-committee has any value, therefore, it is in being able to draw together the decision makers and, in a strict timeline, focus attention on making the decisions that can bring about a situation where front line care staff and others can apply their exceptional qualities to patients in our hospitals. That is not something for which one can make a decision and then park it. It evolves all the time. In respect of full co-operation and full flexibility, it was a test of the Croke Park agreement and in that regard staff and everybody concerned measured up to the challenge in a very strong fashion.
There was too much pressure.
According to the Minister for Health, Deputy Reilly, an enormous programme of profound change is under way in the health service. Would the Taoiseach not agree that, if that was the case, the Cabinet sub-committee would meet much more often than it does? From the meetings outlined by the Taoiseach, of which there were three last year, I get the sense that what we are witnessing is a kind of care and maintenance approach by the sub-committee on health towards the health service in general. The general outside view is that the service is directionless and going nowhere in a hurry in regard to the Minister's plans, which nobody can really ascertain in any case. No detailed proposals on universal health insurance have been put either to officials or through the system. The board of the HSE was abolished without anything being put in its place and this has created a genuinely serious legal and governance limbo within the health service which is unsatisfactory in terms of accountability and governance.
I was gobsmacked by the Taoiseach's assertion-----
A question, please.
-----that the special delivery unit has somehow had a dramatic impact on waiting times. The SDU subsumed the €80 million that had been allocated to the National Treatment Purchase Fund, which was essentially abolished or subsumed into this arrangement, with disastrous results for waiting lists, given the increase already of approximately 40% in numbers of those waiting between three and 12 months. It is extraordinary the Taoiseach should state the opposite has been the case. The actual figures, as published by the HSE, indicate there are thousands more on the waiting lists in the past 12 months, with a sharp deterioration. Would the Taoiseach agree the Cabinet and the sub-committee do not appear to be getting to grips with the enormity of the issues facing the health service, or bringing any sense of urgency to the Government structure that is to emerge for the health service?
On Question No. 4, which related to the Cabinet committee on social protection and which I tabled, I did not hear in the Taoiseach's response regarding the number of times that committee has met. One of the core roles of that committee is supposed to be the overseeing of the impact on poverty of Government decisions, taking into account independent statistics about the Government's policies. The Taoiseach will be aware that last month the ESRI completed its analysis of the most recent budget and showed how it was, by far, the most socially regressive and inequitable budget of recent years, with its financial impact falling most on those who had the least in our society. That is the complete opposite of what the Taoiseach had been claiming in respect of that budget. What was the response of the Cabinet committee on social protection to the ESRI's commentary on the budget?
The next meeting of that committee is on 24 May. It has met three times: Thursday, 9 June, Wednesday, 21 September and Thursday, 24 November. I do not at all agree with the Deputy-----
It has not met since the budget.
No, not since the budget. I do not agree with the Deputy that the process of Cabinet sub-committees is not effective. It is probably the most effective process I have seen in my time in the House in that it brings under the imprimatur of the Department of the Taoiseach the requirement for decisions to be made and timelined. This is very important within the whole process of setting up transition teams to deal with the consequences of people retiring under the public service embargo from a range of areas, be they health, justice, education, or whatever. It includes, in regard to the issues in the health service, for example, redeployment, consolidation of clinical management roles, reorganisation of services, changing of staff rosters and finding a more appropriate skill mix. Being a former Minister for Health, the Deputy is well aware that all these areas present complications, depending on the specialist nature involved, the location or the teams to be set up. People have changed rosters, moved locations, postponed leave and worked additional hours for time off in the context of their personal agreements under the Croke Park agreement.
In regard to the committee on social policy, a number of issues have been dealt with.
These include the launch of the report of the national substance misuse strategy steering group, with an expected completion date of the summer. Preparation of the care strategy, which has been around for a long time, is well advanced. The Minister of State, Deputy Kathleen Lynch, expects to bring it to the Cabinet before too long. Tackling homelessness and taking the approach that money follows the client for the delivery of services to those experiencing homelessness was announced last November. That project is proceeding. The value for money review of the disability services is due for completion in the first half of 2012, which is relevant to the questions asked already. The report of the expert reference group on disability policy will be submitted to the Government within the same timeframe. Preparation for the children's rights referendum is on target and the free school year has been maintained. An allocation of additional funding of €1 million was made this year to address the needs of children with autism and a further €1 million will follow in each of the next two years. The forum on patronage and pluralism in the primary sector was launched in April 2011 and will be before the Cabinet shortly. This morning, the Government noted the report from the ESRI and the sub-committee will deal with it at its next meeting. I cannot yet confirm the agenda. Agreement was reached with NAMA to make available 2,000 properties for the purpose of social housing through leasing arrangements. The taskforce on the child and family support agency was established. These are important issues that were dealt with and considered through the Cabinet sub-committee on social policy. These topics cover a broad spectrum.
The Taoiseach said that the Cabinet sub-committee on health met with the special delivery unit. Three weeks ago, the Irish Association for Emergency Medicine exposed the disgraceful situation in emergency units of children's hospitals, with some children waiting for 12 hours on trolleys. I wonder if the Taoiseach had the opportunity to discuss the topic with the special delivery unit. A very useful briefing by the special delivery unit representatives took place last week. I pointed out that when they were first introduced to Our Lady of Lourdes Hospital, Drogheda, when an ongoing crisis came to a head before Christmas, the number of citizens on trolleys was 45 or 46. Last week it was back to 45 or 46 and the special delivery unit representatives acknowledged a capacity issue. The Taoiseach described the special delivery unit as having made a very positive impact on hospital services but that very unit is now saying a capacity issue is causing a crisis in this particular hospital. The unit representatives also made revealing remarks about the hospital and health services in that region. Did the Taoiseach have the opportunity to discuss with the special delivery unit representatives the totally unacceptable situation where children are on trolleys for up to 12 hours and the fact that capacity is a problem in terms of 46 or 47 adult citizens ending up on trolleys?
I did not meet with the special delivery unit or have the discussion Deputy Adams had the opportunity to have at the committee meeting. I do not have the details of the evidence given to the Deputy at that meeting. Suffice it to say, the Minister for Health indicated that last week, for the first time ever, there was no count of those waiting for trolleys in Galway, which is an exceptionally busy hospital. The escalation alarm in the Mater Hospital was put in train on 8 March because 17 patients were waiting on trolleys. By 4 p.m. that day, during a very busy week, that figure had reduced to four. I have been in many hospitals over the years and it is very unnerving and intrusive for people to be lying on trolleys in hospital corridors while others are passing up and down. Sometimes people are in areas where there is a lack of privacy and people can rightly be put out by this. We need to get to where we implement a strategy of having strong primary care teams and a much stronger community health system where people can remain in their location for as long as possible.
The Taoiseach is cutting the home help hours by 5 million
Serious numbers left the health service of their own accord because of the redundancy package. I pay compliment to those who remain, who have changed rosters, moved location and travelled distances, worked longer hours and, with clinical and medical teams and nursing staff, have sat down to determine how to provide the best care for patients in the hospital given that they will not have the endless stream of money that people had assumed would be available. This is a challenging situation and those involved as patients have a right to expect the very best level of treatment. When we get the full implementation of the structure envisaged by the Minister for Health at the end of this period of Government, with universal health insurance, we will be in a position to have a really efficient, competent, professional, caring health service. I do not suggest that those who work in the service have any lack of a caring attitude but the pressure on space is always an issue. The Deputy is always aware of how there can be an increase because of flu or viruses. From time to time, hospital numbers can rise rapidly in a short time and that can put pressure points on the delivery of service.
With regard to the Cabinet sub-committee dealing with each of these entities, we have not met with the special delivery unit and had detailed discussions with it. Deputy Adams probably got more information directly from the special delivery unit and he probably had the right to ask any questions, as I am sure he did when he and other Deputies met with the special delivery unit last week.
I remind Deputies that this question is about the number of times the sub-committee met. We have spent 20 minutes on this group of questions and other Deputies in the Chamber have questions to ask. I ask Deputies to be conscious of time.
The Taoiseach will not be here next week.
Arising from the Taoiseach's response to my question, No. 4, on the Cabinet sub-committee on social policy, I am struck by the fact the committee has not met since the budget. Perhaps, if the committee had met during the budgetary time and after it, and had proofed the budget in terms of its impact on low income families, we might have had a different approach and a different outcome. What is the point in a carer's strategy if, for example, one of the decisions in the budget is to include carer's allowance as calculable income for the purposes of the family income supplement? In many families, the mothers are-----
We cannot stray into a different area of policy.
This is to do with social protection, the role of the sub-committee and the fact that it has not met.
The question concerns the number of times the sub-committee has met.
Deputy Adams went on at liberty about other issues.
I am trying to be fair and Deputy Martin also has a number of other questions.
I will not detain the House too long.
We cannot stray into policy on a question about the number of times the sub-committee met.
I was talking about the fact that the sub-committee had not met since the budget, which has all the signs of it. The carer's allowance of mothers who care for those with special needs was, for the first time, taken on board in terms of calculating entitlement to family income supplement. Families on the lowest income rung of the ladder were hit by as much as €100. How can any Cabinet sub-committee on social policy stand over that?
What is Deputy Martin's question?
The Taoiseach referred to autism in his reply. Children with autism and their parents are being denied access to domiciliary care allowance.
We cannot go into that, Deputy Martin.
The letters parents of children with autism are receiving is disgraceful. The letters refer to the children not needing additional care over and above their peers.
Will Deputy Martin table a separate question?
This is the most ridiculous, absurd and insulting reply from officials in the Department of Social Protection. Will the Taoiseach ensure the sub-committee meets more often, becomes more assertive in terms of proofing Government policy in so far as it has an impact on the lowest income earners in our society and those who need help and support? I mentioned two cases involving autistic children and domiciliary care allowance and, in terms of carers, the family income supplement, but there are many others. The DEIS issue should not have happened. It happened because the committee must have been asleep at the wheel in terms of watching these issues. The change in eligibility rules for women, for example, has hit women to the tune of €70 and €80 and the Taoiseach comes in here and makes the proud boast that social welfare payments were not hit. Many people were hit but he did it by stealth, and the devil was in the detail.
I ask the Taoiseach to keep to the question on the number of times the committee met.
I have told the Deputy that the committee met three times. The reason the carers' strategy has been taken on by the Minister of State, Deputy Lynch, is that for years no Minister, Department or collection of Departments would deal with it. We are now dealing with it, and the Minister of State is putting together all of that strategy-----
Carers were hit savagely in the budget.
-----to have a carers strategy that will set out policy.
There is no action.
Action is exactly the point because for donkey's years-----
There is no action. It is the opposite.
-----nobody in this House bothered their barney to put together-----
You are wrong.
Please, Deputy.
-----the threads of a carers' strategy, and it is being dealt with now.
That is not true.
I made the point to the Deputy that an extra €1 million is allocated for autistic children this year, again next year and the year after that. Neither the Deputy nor I decides on the basis of an analysis of an application for domiciliary care allowance, nor am I qualified to give a verdict in regard to those issues.
With the greatest respect to the Taoiseach, there is a pattern, and many professional opinions have been given.
The Deputy would like me to sit in the Taoiseach's Department all day every day meeting with Cabinet sub-committees-----
-----and not deal with the essence of politics, which is about people.
It is not even meeting.
We have, Deputy. We try to deal with these meetings as reasonably as possible, give them a programme of work to do and ask them to report progress. I hope they will do that.
It has not met since the budget.
I will report back to the Deputy on 24 May.
Will the Taoiseach indicate if there is joined-up thinking between Cabinet sub-committees such as the Cabinet Committee on Social Protection and the Cabinet sub-committee on jobs, the body which his Government has given priority to create jobs? I ask that question because it has become clear that many of the measures introduced in the budget will act to drive loan parents in particular out of-----
Sorry, Deputy, that is an entirely separate issue.
It is about how these two committees connect.
No, it is not.
It is, honestly.
It is not, honestly. It is entirely separate.
Many of the measures will drive loan parents out of work-----
Will the Deputy please resume his seat?
-----particularly because lone parents payments will be withdrawn after a child has reached the age of seven. Loan parents are asking a simple question.
That has nothing to do with the question.
If the Government wants them to work, who is supposed to look after the children-----
Put down a parliamentary question on the issue and we will debate it.
-----after the age of seven? Has that issue been discussed at the Cabinet sub-committee?
The Deputy cannot ask what was discussed at the Cabinet. I am moving on to Question No. 5.
I can ask, a Cheann Comhairle.
We have spent 27 minutes on four questions-----
Others have asked it, and they got an answer.
-----of the same ilk as to the number of times sub-committees met.
IFSC Clearing House Group
Micheál Martin
Question:5Deputy Micheál Martin asked the Taoiseach the number of times in the past year that the IFSC Clearing House Group has met; the issues that were discussed; the actions that have been taken as a result; and if he will make a statement on the matter. [9367/12]
Joe Higgins
Question:6Deputy Joe Higgins asked the Taoiseach the number of times in the past year that the IFSC Clearing House Group has met; if he will give details of the matters that were discussed; the actions taken as a result; and if he will make a statement on the matter. [12523/12]
Gerry Adams
Question:7Deputy Gerry Adams asked the Taoiseach the number of times the International Financial Service Centre Clearing House Group has met since the beginning of January 2012; and if he will make a statement on the matter. [13920/12]
I propose to take Questions Nos. 5 to 7, inclusive, together.
The IFSC Clearing House Group, CHG, has met on six occasions in the past year and is due to meet next on 3 April. Its associated working groups in banking and treasury, insurance, funds, asset management and pension funds meet regularly, typically on a monthly or bi-monthly basis.
My Department has supported the international financial services industry in Ireland since the establishment of the IFSC in 1987 by providing a forum for the exchange of views and the co-ordination of effort through the mechanism of the IFSC Clearing House Group and the related working groups. During this period, the IFSC has grown to employ 33,000 people and to contribute more than €1billion annually through corporation tax and payroll taxes.
The Clearing House Group itself is chaired by the Secretary General of the Department of the Taoiseach and its membership includes public and private sector representatives. This includes the leading industry figures including both firms and industry associations. The chairs of each working group are also members of the group and facilitate communication between working groups and the Clearing House Group. There are also representatives from my Department, the Department of Finance, the Department of Jobs, Enterprise and Innovation, the Central Bank, IDA Ireland, Enterprise Ireland and the Revenue Commissioners.
The spread of membership of the group and the working groups enables discussion to take place in an open way which reflects a wide range of experience and expertise so that opportunities to develop sustainable business and employment in the various sectors of the international financial services industry can be achieved.
The groups are mandated to identify and consider issues of importance to the long-term development of the international financial services industry in Ireland. These issues include the strategic development of new business areas and opportunities, the progress of relevant legislation and it identifies, from time to time, the need for responsibility to be assigned for overseeing and reporting to the Government on any appropriate initiatives in this area.
The programme for Government states that the Government "supports the future development of the IFSC as a source of future employment growth, subject to appropriate regulation" and commits to the development of the financial services sector to maximise employment opportunities. The IFSC Clearing House Group shares my conviction that there is scope for development and employment growth on a significant scale. In 2011, the group developed a strategy framed on the basis of an objective to create more than 10,000 net new jobs, to protect existing employment and business, and to consolidate the sector as a key driver of the Irish economy over the next five years.
I launched the strategy for the International Financial Services Industry in Ireland 2011-2016 in July of last year. That strategy was developed on the basis of extensive analysis and consultation carried out across the full range of international financial services. It reflects market trends and the business opportunities to which they give rise, as well as the established strengths and capacities for development of the industry, its advisory and supporting networks, and in the broader labour force available in Ireland. It is a strategy which recognises and fully supports the critical importance of a credible, responsible and proportionate regulatory system whose own capacity and reputation provides, in itself, a source of competitive advantage for this jurisdiction attracting reputable, responsible and sustainable financial services activity. The strategy forms the basis for the agenda and discussion at the Clearing House Group and it is being monitored by the group for specific implementation measures across all of its working groups.
Among other opportunities for growth, the strategy commits to developing Ireland as a centre of excellence in green finance and carbon management through the Green IFSC initiative which is being co-ordinated by my Department through the Clearing House Group and in conjunction with industry.
The core concept of the Green IFSC involves positioning the IFSC to take advantage of growth in the global green economy and green finance sectors. It envisages a cluster of financial and support services for the domestic and international green tech, renewable energy and carbon sectors.
Other issues considered by the Clearing House Group over the past year include the marketing and messaging of the international financial services industry and recommendations made by the group and the working groups resulting in measures being included in the Finance Bill to enhance and support the competitive position of the international financial services sector here.
The mandate of the Clearing House Group in the coming years will be to drive and monitor the implementation of the strategy, and the achievement of its goal of creating 10,000 new jobs. Doing so will require action across the seven drivers identified in the strategy. These drivers are a transparent and competitive direct and indirect tax framework; a credible, responsible and proportionate regulatory regime; the development of new business lines; co-ordinated international engagement and marketing; integrated support for investment and growth; targeted development of appropriate skills; and sustained control of business costs.
A key aspect of the success of the IFSC and the Clearing House Group has been Ireland's responsiveness to trends and opportunities, built on an effective relationship between the public sector and industry. The Clearing House Group is an essential part of this relationship, and I believe it will play an important role in delivering the jobs target this Government has set.
I thank the Taoiseach for his comprehensive reply. The concept and development of the IFSC is a testament to the vision of Governments in earlier generations, particularly in the late 1980s and early 1990s. We now have 33,000 people employed in what is an important sector in Ireland in terms of its global impact and number of jobs created.
Has the Clearing House Group discussed or undertaken any analysis of the impact of a potential transaction tax on the IFSC? It has been mooted by the French President and in a number of other states and has created tensions across the European Union. I am not referring to such a tax in London. What would the impact on Dublin be if Europe agreed one and the rest of the world did not?
The Taoiseach referred to the green IFSC. Can he give any examples of any concrete steps that have been taken to develop the concept? It has been around for about two or three years. Has the Clearing House Group agreed any specific steps to take to advance the concept into concrete, realisable and tangible outcomes?
Have sharia compliant funds been discussed recently by the Clearing House Group? A recent PricewaterhouseCoopers report outlined the potential return from such funds and the possibility of Dublin acting as a hub for them. I understand other locations like Edinburgh are competing for that kind of business.
I recognise, as does the Deputy, that the original concept of the IFSC came from a very important businessman and was implemented by a former Taoiseach, Charles Haughey, who set up the IFSC in the 1980s. It now employs 33,000 people which is a testament to its evolution over a number of Governments and is a very important entity in terms of corporation and payroll taxes.
I cannot answer the question on whether the Clearing House Group has discussed sharia finance. It was a central part of a launch I attended last year. I will give the Deputy an up to date response on the situation.
On green finance, as the Deputy knows it refers to capital investment in banking, treasury and insurance businesses that supports the development and promotion of a low carbon economy. It includes the funding of renewable energy generation, energy efficiency measures and carbon credits trading. In a wider context it embraces issues like the environment, water, waste and weather.
Recent related green tax changes include the inclusion of carbon offsets within the existing structured finance tax regime, including the Finance Bill 2012 amendments to explicitly include forest carbon credits; relief from stamp duty on transfers of greenhouse gas emissions allowances; the extension of corporation tax relief for investments made in renewable energy projects; and the inclusion of companies involved in the production of energy from renewable sources within the income tax relief scheme for investment of corporate trades. There have also been a range of educational and other developments under the green IFSC initiative.
Since the third quarter of 2011 the Green IFSC, in partnership with Summit Finuas which is under the remit of Financial Services Ireland, FSI, has earmarked €600,000 for sustainable finance educational projects to ensure Ireland has the talent base needed to grow green finance business and attract companies to Ireland that operate in that sector.
September 2011 saw Ireland's first postgraduate course in sustainable finance launched at DCU. In January this year Ireland, through UCD, launched the world's first of its kind master's degree in energy and environmental finance. In the same month, the Institute of Bankers announced a new graduate diploma in green energy management and finance. FSI, a constituent body within IBEC which represents financial services companies, is conducting an indepth report into the education needs of new and existing businesses to ensure Ireland is at the forefront of producing professionals with the skills needed to grow sustainable businesses in the sector.
All green IFSC-assisted courses have emerged from collaboration with industry leaders, public sector representatives and academics who have come together to ensure Ireland is a global centre for green finance. Green IFSC projects are all of that nature. I will send the Deputy an up to date response in respect of the current position on sharia finance.
What about a transaction tax?
I do not know whether the Clearing House Group discussed it. The Government is opposed to it.
It is a very important issue. The Taoiseach has representatives on the Clearing House Group. He might ask whether an analysis was undertaken of the potential impact of such a tax.
I do not know whether the Clearing House Group discussed it. The Government has made it perfectly clear it is opposed to it. I note President Sarkozy's wish to introduce one on his own or in collaboration with some other countries. Countries are entitled to do that. The Clearing House Group is chaired by the Secretary General of my Department. I will let Deputy Martin know whether there have been any discussions at the Clearing House Group in regard to a financial transaction tax.
Does the Taoiseach have any concept of how incredible it sounds to ordinary people that he boldly stated the Government is opposed to a transaction tax? There are tens of billions of euro swirling around the IFSC and financial centres of Europe in all kinds of speculative ventures which are ongoing despite the crash. It resulted from the total deregulation of the financial markets and the type of speculative and casino-like activities that took place in the pursuit of private corporate profit at a huge cost to society.
The Taoiseach is opposed to a tax-----
Deputy, we are not discussing a transaction tax.
-----that might bring in desperately needed revenue for the hard-pressed people of Europe for investment, etc.
That is a separate question. Stick to your question.
In his reply the Taoiseach begged a supplementary question. His predecessor, Brian Cowen, said in May 2010, "The IFSC Clearing House Group identifies and considers issues of major concern to the long-term development of the national financial services industry in Ireland and also lists consideration of regulatory issues."
To the knowledge of the Taoiseach has it analysed and reported on the events leading up to the financial crash in 2007 and 2008? Has it drawn any lessons from it or provided the Government with any lessons? Has it made any self-criticism? Has there been any clearing out of the Clearing House Group in terms of its absolute failure to call a halt to the type of obscene speculation that was going on around Europe in the lead up to 2008?
Industry members who have served or are serving on the Clearing House Group and related subgroups include a who's who of the biggest finance companies in Europe and the world.
They include Merrill Lynch, AIB Capital Markets and Citigroup. Does the Government seriously believe it will get views from them that are in the interest of ordinary people in this country considering how the financial markets have brought Europe to the crux it is in? Has the Government learned anything?
The Deputy is deliberately mixing up retail banking transactions and those that take place in the IFSC. If we were to follow the Deputy's advice, we would close down the country completely.
That is what he wants.
If the Deputy's socialist policies were implemented, bearing in mind he is the only socialist I know in the whole of Europe who is opposed to any kind of property tax, the country would close down completely.
Tax the hedge funds.
The Deputy has not raised the role and responsibility of the banking and treasury working group, nor has he raised the role of the IFSC funds, insurance, pensions or asset management working groups.
Regarding the retail banking sector, I agree with the Deputy on what happened when Ireland decided to run its affairs on the basis of windfall taxes from property speculation and that the greed of the banking sector resulted in extraordinary incentives and more pay for those who lent more, but that is a very different proposition from that associated with the IFSC. The Deputy wants to lump them all together and close down the country entirely.
Who gave the loans?
Deputy Martin asked a valid question about a transaction tax. We have pointed out on many occasions that one cannot have one set of circumstances in Dublin and another in London, Amsterdam or Frankfurt. Theoretically, if there is to be a transaction tax in a global situation, everybody would like to see it happen. As I stated previously, I would like to see the law in Ireland dealing with those who should be dealt with. Clearly, while there are independent authorities in the country over which I have no control, the people want to see somebody pay some price for the activity that dragged our country over the edge, driven by the incentive mechanism in retail banking and greed in respect of developers.
What about hedge funds?
The Deputy is mixing these matters up completely.
I ask Deputy Boyd Barrett to stay quiet.
Deputy Higgins believes the IFSC is like the local manager incentivised to throw out more money to the local developer to build houses for which people could not pay.
Who lent the Irish banks the money?
There are 33,000 people working in the IFSC.
This is not Deputy Boyd Barrett's question. I ask him to desist.
The companies pay very large amounts in corporation and payroll taxes. The Deputy wants to reduce the numbers in the IFSC and close it down.
I thank the Taoiseach for his preliminary detailed answer. He might have covered the point I am going to ask about. If so, mea culpa. When I last asked about the Green IFSC, the Taoiseach reported that a marketing and business plan, including the proposed establishment of a Government-supported carbon market initiative, was being reviewed by an independent, cross-departmental evaluation group. Does it report to the clearing house group? If so, how often?
The Taoiseach quite rightly reminded us that last July the IFSC set out a plan, which he launched, to create 10,000 new jobs in the finance sector over the next five years. Unfortunately, we heard about 2,500 jobs being lost in Allied Irish Banks. There is speculation about further job losses in the Bank of Ireland, and Ulster Bank has announced 950 losses. Cá bhfuil na pleananna atá curtha le chéile ag an Rialtas chun jabanna eile a chur ar fáil do na daoine a chaill a bpostanna? Tá a fhois ag an Taoiseach go bhfuil daoine óga i gceist agus go minic bíonn morgáistí móra acu. An bhfuil aon phlean ag an Rialtas chun jabanna a chur ar fáil?
I am sure the Deputy has noted the announcement that 2,500 redundancies are to be made by Allied Irish Banks over the next 12 to 18 months. The bank is in consultation with the IBOA in respect of the package for the personnel who will be leaving the bank. Deputy Adams is aware that, because of the downsizing and deleveraging of AIB and other banks, banks' requirements are much smaller. Inevitably, this will result in people leaving the banking sector. I hope that some of those who will leave the sector but who have IT training and skills will have an opportunity to take up some of the 10,000 jobs announced as part of the programme under the IFSC. In so far as the Government can assist those who can up-skill and retrain in a different direction, it will do so.
From 1999 to 2011, the number of jobs in the IFSC increased from 8,500 to 33,000. Notwithstanding the difficult international conditions, the IFSC's number of employees has continued to grow. Opportunities are highlighted in the strategy across different sectors, including shared services provision, green financial services, the location of EU hubs, payments and transaction processing, private equity and IP centralisation.
I regularly meet people from the IFSC, including some very major players who come here occasionally to meet their staff. There is a competitive and challenging environment internationally and the business is a very mobile business. It is important for the clearing house group and Ireland to stay at the forefront of new products and opportunities that evolve. I made this point on many occasions to chief executives, who have said they are very pleased with the quality of the talent coming through in Ireland, particularly younger people who display extraordinary passion for the work they do.
While the environment is very challenging for the time ahead, the IFSC report clearly indicates the capacity and potential to create 10,000 net new jobs over the period ahead. I hope the people who have decided to leave AIB and other companies can take up some of those new jobs.
With regard to the future of the green carbon finance area, as raised by Deputy Martin, the Green IFSC is currently researching and measuring the number of jobs and the companies that currently operate in the sector here. It is considering where the trend is likely to lead. There is an existing cluster of green carbon financial services activity across funds - front, middle and back office, as they say - insurance, carbon management and project finance within Ireland. Recent research highlights that environmentally related investments under management in Ireland are growing very rapidly. According to figures from December 2011 from Thomson Reuters, green investment funds managed out of Ireland have more than doubled in the past two years to €2.3 billion from just over €1 billion in 2009. The company identifies 24 firms that manage 36 funds from Ireland.
Financial Services Ireland has commissioned a study on the market and skills needs associated with green finance growth, and this is currently under way. This study gives a conservative projection over the period 2012 to 2017 of an additional green finance requirement of a minimum of 1,400 jobs. There is much activity on identifying sectors where jobs can be created. It is in Ireland's interest that it maintain a very high level of activity in this regard so as to be at the forefront in attracting those who decide to invest in the first place. That is why the IFSC continues to be a vibrant, energetic and attractive location for continued investment and we want to keep it that way.
It is not clear from the Taoiseach's reply if the independent cross-departmental evaluation group which was to examine the marketing and business plan is in place. Does it report back to the IFSC Clearing House Group? If so, how often?
I will have to give the Deputy an up-to-date report on the group's activities. I will send it on to him later.
One of the significant issues for the financial services sector is increased competition from other financial centres across Europe and the world. There is a sense that for the strategic direction of the IFSC, the nature of its activities will have to change over time. More higher end functions and activities will have to be attracted. There is also a certain vulnerability in the job content at the centre, particularly the number of back office operations which could move elsewhere given the competition. Strategically looking ahead, our objective must be to attract higher end activities into the sector, just as we did in the life sciences, technology and ICT.
Will the Taoiseach comment on this and indicate any concerted outcomes of the recent meetings in driving that agenda forward?
The programme we launched with the IFSC has a target of creating 10,000 net new jobs over the next several years. Obviously, this is not a situation that will stay static because, as the Deputy knows, it is the most mobile of all employments. That is why it is necessary that there be constant vigilance about keeping the IFSC very attractive, which it is anyway and has a high rating from serious players across the world.
This year's Finance Bill contained 13 sections introducing 21 individual measures to support the IFSC and meet the target of helping to create those 10,000 jobs over the next few years. Measures include reduced double taxation in the corporate treasury and the aircraft leasing sectors, providing clarity around the tax treatment of complex financial transactions, particularly with stamp duty, addressing tax issues arising for investment funds due to the undertakings for collective investment in transferable securities, UCITS as they are called which was directive 4 and was implemented on 1 July 2011, and a further easing of the administrative burden on non-resident investors in Irish investment funds.
In so far as the recommendations for the IFSC come through the meetings of the different working groups of the clearing house group and through the clearing house group itself, I get reports on these matters from the Secretary General as is required. Some of the responses and initiatives have been reflected in the Government's and the Minister for Finance's decisions in the Finance Bill. These are to keep the centre vibrant and attractive for continued investment. Over the next decade, we will see a whole range of new financial products being made available. It is for Ireland to continue to be at the forefront of that change which will lead to achieving the target of 10,000 new jobs in the next five years.
The Taoiseach rubbished the idea of a transaction tax on the billions of euro swishing around in the European financial markets with reference to London and Britain not having one. Judging from the reports about yesterday's meeting the Taoiseach had with the UK Prime Minister, David Cameron, the chemistry was massive with people thinking they were seeing a remake of "Band of Brothers". Did the Taoiseach discuss the issue of a transaction tax with his new best friend? It is an issue which has to come to the fore when the UK Prime Minister has made pronouncements on it. Did the Taoiseach raise it with him and lead the discussion by stating it would be a social progressive measure to take?
We are straying, Deputy.
The Taoiseach went on at considerable length about the greening of the IFSC and various related policies. Does he not see that anyone with any concern for the environment knows it is a bad joke to rely on the financial markets to drive a greening policy when they have turned greening issues, including swapping and speculating on carbon credits, into another source of speculation and profit?
The British Government, for which I do not speak, is opposed to a financial transaction tax. The Irish Government has made its position clear on this.
I do not share Deputy Higgins's view that the greening issue is a bad joke. I actually believe investment in green and renewable energy, such as pumped-storage hydroelectricity and wind-generated electricity, are worthwhile and achievable targets. Deputy Higgins is aware this country imports over €6 billion worth of fossil fuels every year. We have the best water and wind resources of any country in Europe yet we have not harnessed them to the extent we should.
There is potential for the direct export of electricity from our country to Britain. The Minister for Communications, Energy and Natural Resources has had several meetings with his British opposite number, Charles Hendry. The British Government is concluding its internal analysis of Britain's energy needs for the years ahead. I know the Minister, Deputy Rabbitte, will be anxious to pursue, if at all possible, and to conclude an intergovernmental agreement in this area which would be in Ireland's and Britain's interests as well as Europe's. If there is a significant potential for investment and job creation in clean, green, renewable energy, I would not refer to it as a bad joke and neither should Deputy Higgins. Written Answers follow Adjournment.