Topical Issues Debate

Foreign Direct Investment

Deputy Tom Hayes

I thank the Ceann Comhairle for selecting what is an incredibly important issue for people throughout the country and for my constituents in Tipperary. While I do not want to be accused of bias against Dublin, the fact is that 80% of foreign direct investment goes to the large urban centres of Dublin, Cork and Galway. We are obviously in the midst of a deep recession brought about by reckless lending, poor governance and a depressed world economy. Nevertheless the country still retains the key characteristics which have in the past been cited as the reasons for multinational companies choosing to invest here. We have a young well educated workforce and Ireland is an English speaking country seen as a hub for European operations. We have improved our competitiveness and reduced our labour costs in recent years and we have given a firm commitment on our corporation tax rate remaining at 12.5%, which was reiterated yesterday in the budget.

When the economy was growing quickly these were cited as the reasons we were able to attract and win investment from large companies, and although there is now strong downward pressure on costs and wages, reduced red tape and increased incentives we are not securing foreign direct investment for rural areas. I understand the role the world economy growth rate plays in this but I want to know what efforts are being made to ensure we are in pole position to capitalise on growth in the world economy. It is often stated that when the world economy starts to grow Ireland will reap the benefits.

We have made huge strides recently in restoring our international reputation and confidence in the economy. While I acknowledge the work of the IDA and the past success of the Department of Jobs, Enterprise and Innovation I urge everyone involved in attracting foreign direct investment not to be complacent. I encourage the Minister to consider the rural areas in the country when courting multinational investment. My constituency has suffered jobs losses in recent years in Clonmel, Cashel, Carrick-on-Suir, Thurles and Tipperary town. Empty factories are available in each of these towns and areas. I call on the Minister to give his attention to these locations. Huge opportunities seem to be available for large-scale businesses in rural locations such as these.

Biotechnology, pharmaceutical, information technology and professional services companies to mention but a few can grow and develop in a different environment. The costs outside of the capital are lower. The quality of life available to employees is very different to that in the major cities. The road, rail and broadband infrastructure which was not in place years ago is now available. The road from Dublin to Cork passes through Tipperary and makes it accessible to the airports in Dublin, Cork and Shannon, which are at most an hour and a half away. I urge the Minister of State to punch this home when visitors come to our country and ensure these arguments are made to CEOs when they are deciding where to invest. They will see the broader picture and choose to locate in rural areas and thus help the infrastructure and quality of life in areas outside the main cities. With the deficit under control and confidence restored, a growing world economy can be hugely beneficial to Ireland once we position ourselves to capitalise and attract inward investment to rural areas as well as the large cities. I urge the Minister of State to do this.

Minister of State at the Department of Jobs, Enterprise and Innovation (Deputy John Perry)

I thank Deputy Tom Hayes for raising this important issue.

IDA Ireland's primary responsibility is to attract foreign direct investment, FDI, to Ireland and to grow and expand FDI companies in Ireland in the face of strong international competition. In accordance with its strategy, Horizon 2020, which covers the period 2010 to 2014, IDA Ireland is working to create 62,000 direct jobs in 640 investment projects over the period, resulting in an additional 105,000 jobs overall in the economy, with 50% of investments being located in areas outside of Dublin and Cork. The strategy also confirms that IDA Ireland will continue to work with its existing client companies in Ireland to transform the existing FDI base to develop, retain and grow employment in these companies.

IDA Ireland has assured me that it continues to work with all its client companies in Tipperary and across the country to ensure their long-term sustainability and encourage their growth and development, the broadening of their mandates and the continuing re-investment in their sites. There are 12 IDA Ireland client companies in the whole of County Tipperary, employing almost 3,700 people on a permanent basis.

The global economy, in particular the European economy, which is the primary target market for FDI clients in Ireland, is in a low growth phase. The challenge for IDA Ireland is to win FDI in this low growth environment. As Ireland competes for investments at the highest end of the value chain, the concept of scale is crucial. Leading corporations require a significant population of highly qualified talent, effective physical and digital infrastructure coupled with the availability of sophisticated professional support services. To best address this challenge, IDA Ireland prioritises the marketing of gateway locations within each region as the locations of critical mass, that is, sufficient scale of population, skills, infrastructure, companies, business services, etc. and highlights the opportunities provided by hub locations which are within commuting distances of these gateways. In addition, IDA Ireland promotes other locations as part of its marketing efforts and in response to specific client requirements. With continuing enhancement and improvements in physical and digital infrastructure, an FDI project secured for one gateway economic region has a positive impact on other gateway economic regions and surrounding areas.

Because Tipperary is divided into two administrative regions, Tipperary North is part of IDA Ireland's mid-west region along with counties Clare and Limerick, while Tipperary South is part of IDA Ireland's south-east region, along with Waterford, Wexford, Carlow and Kilkenny.

In addition, the provision of flexible and cost-effective property solutions has been a key aspect in developing differentiating regional value propositions and attracting FDI into regional economic locations. For example, in Tipperary, the availability of the 300 acre park at Clonmel business park could facilitate the creation of investment and employment opportunities from FDI and from projects supported by Enterprise Ireland, EI.

Strong performance was seen in 2011 in the level of FDI won by Ireland. IDA Ireland client companies created more than 13,000 new jobs in 2011, despite the current global economic situation and a strong increase in international competition. This strong performance has continued into 2012 and, to date, there have been 81 IDA announcements with the potential to create in the region of 8,550 jobs.

Deputy Tom Hayes

I thank the Minister for the information and bringing us up to speed. I acknowledge that IDA Ireland has been quite helpful in the many projects in Tipperary. However, on the issue of empty factories in the county, there is an advance factory in Tipperary town which is top class, and two more sites available. In Cashel, Johnson & Johnson had a state-of-the-art facility which was closed almost two years ago. At that stage, we were given to believe that either an investor would be taking it over or Johnson & Johnson would reinvest in it. That has not happened and the facility lies idle. In Clonmel, as the Minister of State correctly states in his response, there is a 300 acre business park. That has been there for many years. I do not want to be negative about the county. Certainly, there are many good developments in it.

I emphasise that at a time when we are coming out of this mess and after yesterday's budget, there is no doubt there is light at the end of the tunnel. American firms will look at this country and we must be ready. The reason I raise this is to highlight how Tipperary is a great place in which to work and live because it is so accessible now. I would make one further point on the two administrative counties. The decision about the two administrative counties, Tipperary North and Tipperary South, has been taken by the Government and we are a long way down the road of the amalgamation process. Hence, Tipperary is in a far better position to market itself as a county with wonderful places and I want IDA Ireland and the Minister to acknowledge that.

I will press hard over the next few months and years to ensure there are jobs created for the highly educated young people who would otherwise be leaving our shores, and for those who have gone to Australia, America and Canada and would prefer to be here. I urge the Minister of State, Deputy Perry, to bring what I have said back to the Minister. I know he will do that. I want to see action at the highest level for my county.

Deputy John Perry

The Minister, Deputy Richard Bruton, who is in Brussels this evening, sends his apologies to the Deputy. The challenge ahead of us all in Government, in Departments and in agencies is to do everything possible to ensure this strong flow of jobs and investments continues. This means we must concentrate on developing indigenous industry, in particular, the small and medium-sized enterprise sector, and yesterday's budget was a good start. We cannot forget that 129 Enterprise Ireland client companies employ a total of 4,547 people in Tipperary.

Deputy Hayes has raised this issue on numerous occasions and the Minister, Deputy Bruton, assured me he would speak to the Deputy directly on this. Earlier this week the Minister and I announced that Enterprise Ireland had established a new micro-enterprise and small business division to spearhead the delivery of an enhanced national enterprise support model to entrepreneurs and small businesses in 2013. This is a key part of the Government's plans to restructure the support infrastructure for small businesses and represents delivery of a key action under the Action Plan for Jobs 2012.

The micro-enterprise and small business division will develop a world-class centre of excellence providing best-in-class support to entrepreneurs and small business in the execution of a national micro-enterprise policy. The new business support model will also see the establishment next year of local enterprise offices, LEOs, in Tipperary in the local authority network, and these new offices will deliver services and support to the micro and small business sectors on behalf of Enterprise Ireland.

The Enterprise Start programme is a one-day information workshop which forms part of Enterprise Ireland's entrepreneurship development activity. Two regional workshops for the mid-west, which includes north Tipperary, were held on 21 March and 10 November 2012 in Shannon which 20 potential entrepreneurs attended. An Enterprise Start programme will be held by El in Clonmel on 12 December.

We must also strengthen links between multinational companies and the rest of the economy in order that the full benefit of these major investments can feed through to the domestic economy, for example, through supply chain opportunities and mentoring for SMEs. In this regard, in accordance with the Action Plan for Jobs, Enterprise Ireland and IDA Ireland have formed a senior management team to maximise the impact of their resources, staff numbers and budget, to deliver on their respective targets in terms of job creation, investments and economic spend in the economy. If Deputy Hayes wants to arrange a meeting directly with IDA Ireland, that can be facilitated as well.

Job Losses

Deputy James Bannon

I thank the Ceann Comhairle for allowing me highlight this important issue, the recent loss of 100 jobs at Ericsson in Athlone. The implications of this on the local and national economy are undisputed, as is the need for the Minister, Deputy Bruton, and my friend, the Minister of State, Deputy Perry, in tandem with IDA Ireland, to support the workers and prioritise jobs for the midlands. I have been seeking a debate on the cutbacks since the announcement on 8 November.

I fully support the need to put every structure in place to assist the workers who have lost so much, and who must be given every assistance to gain new employment. My thoughts are with these workers and their families and I hope to work with the Minister in a positive way to assist them. All the supports of the State must be made available to these workers and their families. This is an issue about which my colleague, Deputy McFadden, is also very concerned.

Ericsson employs 700 people in Athlone and 1,200 countrywide. These jobs must be protected. The supports the Minister plans to put in place are of the utmost importance in the context of the potential fallout for workers from what the company describes as global restructuring.

This has also resulted in job losses in other Ericsson facilities around the world. The reality in my constituency of Longford-Westmeath is that the midlands are haemorrhaging jobs. Athlone has been left in shock by the latest losses. The announcement by Ericsson that approximately 100 workers are to be let go is nothing short of devastating for Athlone and the midlands generally.

Over 9,000 new jobs have been created nationally in IDA Ireland-supported companies since the start of 2011, but very few have come to the midlands. While I am delighted that the company is still committed to its Athlone facility, as demonstrated by the announcement last July of 100 high-end research and development jobs in Athlone, I am somewhat disturbed that 100 workers who are described as being in older, low-cost activities are now being shed six months later. No matter how this is rationalised, the end result is that 100 workers and their families are being left to cope with the devastating financial implications and adverse impact on their well-being. It is more than time for jobs to be prioritised for the midlands. Ongoing job losses must sound a note of alarm to IDA Ireland and focus its efforts on Longford-Westmeath.

The ten-point plan for small and medium enterprises in yesterday's budget is the most positive news for growth and will probably provide a window of opportunity for the midlands. Over the past few years, Longford-Westmeath has seen the closure of Chemical Electric and B3 Cables, and losses at C&D Foods, all in Longford. There have been agricultural losses in Longford and Westmeath, in addition to the loss of Army barracks in Mullingar and Longford, and the courthouse in Granard. It was announced yesterday that seven Garda stations are being closed in the Longford-Westmeath area. Meanwhile, the M4 from Mullingar to Rooskey is not assured, which represents an infrastructural loss for the midlands.

Longford-Westmeath is urgently in need of a rapid injection of inward investment. While the proposed Chinese hub in Athlone is an exciting prospect, there is no assurance that it will go ahead. I am reminded of the fanfare associated with Cardinal Health in Longford back in 2004 and the incredible fallout from the loss of a potential 1,300 jobs. Proportionally, the midlands have been neglected in terms of job creation opportunities and denuded of services to an excessive extent. Each loss contributes to the economic downturn, which is turning vibrant areas into dying centres. Communities are demoralised, while health services, educational facilities and businesses are operating at an inadequate level.

An Leas-Cheann Comhairle

Is the Deputy aware that he has two further minutes after I call the Minister of State?

Deputy James Bannon

I know. Following the closure of seven Garda stations, security will be at crisis level. The recent job losses are another wake-up call which I am asking the Minister of State not to ignore. For many years, I have been calling for a task force which needs to be established to drive the economic recovery and provide jobs for sustainable growth in the midlands.

Deputy John Perry

I would like to thank Deputy Bannon for raising this important issue. Ericsson originally established a manufacturing operation in Ireland in 1957 and now has three business groups based in Athlone and in Clonskeagh in Dublin. The research and development unit in Athlone employs 800 people. The Clonskeagh site employs 489 staff in its operations competence centre and 52 in its marketing unit.

The Athlone research and development unit has global responsibility for Ericsson's operation support systems. In June 2011, the Athlone unit announced its intention to create an additional 100 research and development positions over its then existing research and development staff level of 620. To date, it has created an additional 180 research and development positions, well in excess of the original plan. Over the past four years there has been a corporate emphasis on shifting research and development to the east in order to drive costs down. The latest corporate focus is on high performance rather than low cost and is driving a review of all research and development activities.

The job reductions announced by Ericsson on 5 November 2012 will take place under a voluntary programme. This is a significant aspect of this unfortunate reduction in numbers and one to be strongly welcomed. These job reductions result from a review undertaken by Ericsson's global operation support systems research and development business. The total headcount reduction in Athlone of 100 staff comprises 50 outsource management roles and 50 legacy systems development roles. The proposed rationalisation programme will solidify the Athlone operation and position it for further future growth.

Ericsson is fully committed to Ireland and has confirmed Athlone's global research and development status. It has also acknowledged the Irish management team's leadership in shifting towards a lean and agile operation, and is using it as the model for all its other research and development operations worldwide to follow. The company is a major contributor to the economy paying annual salaries of €108 million, PRSI and corporation tax of €11 million and expending €80 million in the local economy. Given the company's commitment to Athlone, I am confident that Ericsson will remain a strong employer with a significant economic presence here.

The midlands region, including County Westmeath, has the linked gateway of Athlone, Tullamore and Mullingar and, as such, will continue to be a key location of focus for the winning of foreign direct investment. My Department and its agencies will continue to promote Athlone and the surrounding area for industrial projects and enterprise development. These activities will, in turn, help to protect existing jobs in the area.

Job creation is central to our economic recovery and the programme for Government has this at its core. It is obvious that the Government does not create jobs - entrepreneurs and successful businesses do. However, the Government has a key role to play in providing the environment where businesses can start-up, expand and create jobs. The action plan for jobs, which was launched earlier this year, aims to transform the operating environment for business in order to support enterprise growth and job creation. The Government will achieve this objective by systematically removing obstacles to competitiveness, putting downward pressure on business costs, promoting innovation and trade, supporting new and existing businesses to develop and expand, and deepening the impact of foreign direct investment in Ireland.

In the action plan, the Government has also identified a number of key sectors where Ireland can gain competitive advantage in global markets. The role of my Department is to ensure that we have the right policies in place that will support and grow our enterprise base in order to facilitate both job creation and job retention. The programmes supported by my Department and its agencies will be critical in achieving economic growth and I know that the agencies - Enterprise Ireland, IDA Ireland and the county enterprise boards - will continue to promote Athlone and the surrounding area for industrial projects and enterprise development.

I am convinced that the actions we are taking across Government through this process will result in improvements to the operating environment for business and bring about a reduction in the numbers on the live register, as was shown in the most recent data from the Central Statistics Office earlier this week.

Deputy James Bannon

I thank the Minister of State for his contribution and the fact that Ericsson is fully committed to Athlone and to Ireland generally. This is most welcome. I ask the Minister of State to remember, however, that there are many people in my constituency who suffer from severe depression because they are unable to find jobs. The midlands has probably the highest rate of unemployment to be found in the country at present.

The Minister of State mentioned that the midlands region, including County Westmeath, has the linked gateway of Athlone, Tullamore and Mullingar, but there is no reference to Longford. There is a need to revisit the national spatial strategy that was announced some years ago because it is out of date. Longford and other midland towns are not getting a fair crack of the whip. The Minister of State should consider this matter.

A task force should be set up next year to examine all aspects of employment and the jobs profile of the midlands in order to realise the potential of this gateway, including Longford, to all parts of the country. It has the potential to be a vibrant economic centre. We must at all times be conscious that we have lost two Government Deputies in the midlands. This is indicative of the outrage and despair that the withdrawal of services is causing to the region. The heart is being ripped out of the midland counties. We must acknowledge that this is happening and take action to remedy it. This situation cannot continue. I want to see action with the establishment of a task force to co-ordinate all agencies in order to bring jobs to the midlands, and particularly to my constituency of Longford-Westmeath. I am sure the Minister of State will take note of that and bring my concerns for the midlands to the Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton.

I have spoken to him on numerous occasions about this and the time for talking is long over. I want action and want to see it quickly.

Deputy John Perry

Deputy Bannon is very passionate about his constituency, which I greatly appreciate and he may be assured that I will tell this to the Minister, Deputy Bruton. As well as marketing the midlands region for new greenfield investment through its gateway of Athlone, Tullamore and Mullingar, the IDA continues to engage regularly with the existing clients in the region to assist in driving transformation and expansion opportunities in these companies, which can contribute to ensuring long-term sustainability and investment. I refer to research and development, investment in capital, technology, energy-efficient equipment and people, that is, upskilling and retraining. The majority of foreign direct investment, FDI, projects secured for Ireland are won from the existing base of approximately 1,000 multinational companies in Ireland. At present, there are 44 IDA-backed companies in the midlands, employing 4,624 people across a range of activities and centres. In addition to Ericsson, these companies include Covidien, PPD, KCI, Harmac Medical Products Limited and the NPD Group. These investments bring spin-off benefits right across the region through indirect employment and expenditure in the supply chain and indigenous supply of logistics, security, catering companies and so on. The IDA will continue to compete vigorously - I assure Deputy Bannon that I appreciate fully the manner in which he raised this matter - for both Ireland and the midlands region.

He should be assured that Enterprise Ireland's activity in Athlone and the surrounding area is focused on the creation of new jobs. The Minister, Deputy Bruton, has personally seen to this through supporting entrepreneurs to set up new high potential start-up companies. It is from the small acorn a large oak tree can grow and these new companies can be the future. As for the retention and creation of jobs in existing companies, it acts through the support of company development plans and enhancing the innovation capability of business. It is about supporting the existing companies through supporting research in those companies. Enterprise Ireland engages actively with its client companies and has a number of supports and initiatives in place to assist. In 2011, there were 95 Enterprise Ireland client companies in County Westmeath employing more than 2,100 people in full-time jobs. In 2011, Enterprise Ireland paid more than €1.4 million in financial support to client companies in County Westmeath and has paid almost €1 million this year to date. Enterprise Ireland also has supported the development of a community enterprise centre in Athlone.

In conclusion, it is important to remember that Ireland continues to be competitive in attracting new investment. More than 1,000 multinational corporations have chosen Ireland as their strategic European base and multinationals currently employ 146,000 people directly and many more indirectly. The Department and its agencies will continue to work with companies to safeguard existing jobs and to create new jobs. Moreover, the Government will continue to deliver on its commitment in the action plan for jobs, which will be an annual process setting out clear targets to be delivered each year to support job creation. I assure Deputy Bannon that any support that can be given by the IDA and Enterprise Ireland will be delivered.

Bank Codes of Conduct

Deputy John Browne

I thank the Ceann Comhairle and Leas-Cheann Comhairle for allowing Deputy Mattie McGrath and me to raise this issue. Last weekend, a situation arose whereby Friends First Finance, based in Dublin, sent boot boys down to a farmer in north County Wexford to repossess a tractor. These guys were armed with anything they could have in their van. On their arrival, the farmer resisted the actions to take the tractor and as a result, both he and his son were attacked with jackboot tactics. They were battered, received belts on their arms, legs and bodies and were in severe pain.

The point Deputy McGrath and I wish to raise tonight is that banks should not be allowed to operate in this manner. They have a code of conduct laid down by the Central Bank, which requires firms to have in place procedures for the handling of arrears cases to give the borrower a reasonable time in which to solve the arrears problem and to endeavour to agree an approach to assist the borrower to solve the arrears problem. The section was revised recently and now contains more detailed requirements and the revised requirements have been effective since 1 January 2012. In some instances, a person who is dissatisfied with his or her treatment by a hire purchase company can make a complaint to the Financial Services Ombudsman.

Obviously, however, both in this case and many other cases nationwide, banks now are taking the law into their own hands. They are operating in the dead of night and the people to whom I referred earlier arrived in the early morning when it was dark and tried to take the tractor from the local farmer. Of course the farmer, his son, the family and their neighbours resisted the attempt and there certainly was no talking to the people who arrived. They attacked the farmer straight away and attacked his son. They created mayhem in that part of north County Wexford.

During the week, a number of meetings took place between Friends First and the local action committee, at which Deputy Mattie McGrath was present at different times. An agreement was reached with the managing director of Friends First that no further action would be taken until such time as the Garda completes its investigations. However, it is important that such banks operate within the law and under the code of conduct as laid down by the Central Bank, but they certainly are not doing this at present.

The code of conduct was issued by the Central Bank under section 117 of the Central Bank Act 1989 and became effective from 1 January this year. The code of conduct is part of a suite of measures that the Government has undertaken to support the vital SME sector. The Government's commitment to the sector was underlined by the measures announced in yesterday's budget, which included a ten-point tax reform plan to help small businesses, increased resources for the Credit Review Office and the development of a suite of investment funds in the SME sector by the National Pensions Reserve Fund Commission. It is gratifying that these measures were welcomed by the business representative organisations.

The code of conduct replaced the 2009 code and strengthened the protections available to SMEs in financial difficulties. The banks are required to comply with it as a matter of law. The code makes it clear that anybody acting for a bank is subject to the code and banks cannot avoid their obligations by getting an agent to act on their behalf. The Central Bank can invoke its statutory powers to require compliance with the code and a breach of the code is a breach of a regulatory requirement and may be the subject of enforcement action. The code imposes a number of requirements on security, including that the bank must not impose unreasonable collateral requirements, it must not impose unreasonable personal guarantee requirements on borrowers and it must explain clearly the possible implications for the guarantor of giving collateral or a personal guarantee. Any enforcement of a personal guarantee over a principal private residence must be in accordance with the code of conduct on mortgage arrears.

I should say that the provisions of the code are without prejudice to a bank's legal rights to enforce any agreement, including any security taken in connection with any agreement. If a borrower has pledged security to a bank as part of a loan agreement and has failed to make the repayments, the bank has the right to take the security. I am aware of media reports of an incident in Wexford in which it is alleged that the agents of the bank broke the law in attempting repossession of a vehicle. I understand that the Garda Síochána is investigating the incident. If any breach of the law is revealed in the investigation, I would fully expect the Director of Public Prosecutions to prosecute those involved.

The Central Bank has a number of options at its disposal if there was a breach of the code of conduct. The matter has been brought to the attention of the bank and I expect it will examine the case in detail. That said, the Central Bank is a separate entity from the Department of Finance and operates independently from the Department. The code of conduct is due for a full review next year and any gaps in the code will be fully addressed in that review. I wish to make it absolutely clear that I do not condone any actions in breach of the law and I call on the parties to this dispute to make every effort to resolve it in a mutually acceptable manner.

Deputy John Browne

I am not questioning a bank's legal right to enforce any agreement but it must operate within the law. The banks and financial institutions must realise that we now operate in a civilised State. We suggest that representatives of these institutions should only go to premises during working hours and there should be no early morning raids or movement in the dead of night, which is happening now. There should be no "rough house" tactics, violence or any other form of intimidation against the persons or families involved.

This issue was raised last December by Mr. Seán Kelly, MEP, a member of the Minister of State's party, in Strasbourg. He referred to farmyard raids in isolated areas in the dead of night, when enforcers were frightening the living daylights out of people, ignoring all protocol, threatening people and doing enormous damage while using foul language and physicality. It is not just us who have raised the matter, which has been ongoing for some time.

Every visit by representatives of banks to people being acted against should have a Garda presence. If there is a Garda presence, these people would not be able to operate outside the law and the banks would benefit far more. I have been told this farmer was continuing to make payments to the best of his ability and there was no need for these tactics or the repossession of the tractor as a result.

An Leas-Cheann Comhairle

I ask Deputy McGrath not to identify people.

Deputy Mattie McGrath

I have said what I said. The people in suits orchestrating this did not get where they are by being nice. During my occupation last Tuesday of my own bank in Kilcash in my own count I got calls from locations in County Longford, in Tullamore and in Dublin. I was told other instances like this happened in those locations. The Minister of State's colleague from Wexford, Senator Michael D'Arcy, raised this in the Seanad yesterday. This is happening on a nightly basis so we must deal with the issue.

The Minister of State spoke about a code of practice. Why did it take from 1989 for the code of practice to be implemented in 2012? We are looking at it again. Codes of practice mean virtually nothing to these people, as they are ruthless, dogmatic and their actions are bordering on terrorism. I am not saying that where there is a complete breakdown in communications, banks cannot carry out repossessions. The sheriff may have bad connotations but at least those people are authorised. They must have a bearer's letter and court order. I was told by the managing director of the bank, with a solicitor and the gentleman I spoke about present, that the leasing and hire-purchase agreement was more powerful than a court order. If the people in the banks believe that, we are in big trouble. They have that belief and are acting on it.

The Minister of State is a businessman and knows about the effects of this serious trauma. This practice must stop before somebody is seriously injured or killed. Our people are bailing out the banks and although this institution is not covered, the Minister of State has said it is supported. There are only two directors and we do not even know the identity of the parent banks. It is an evolving issue. The bank in question is only acting as a debt collector at this stage and it has no interest in this country or economy. It has no interest in farmers or other business people who have leases. It is collecting money so it is no good to anybody except in feathering its nest.

I appeal to the Minister of State as a business person of some repute with much experience. He knows what is going on. We have a legitimate Garda force and an Army. We cannot have a third force, a militia, so it should be stood down.

Deputy John Perry

The law applies to everybody and nobody is above it. If there has been any criminal activity, it is a matter for the Garda to investigate and the Director of Public Prosecutions to prosecute anybody against whom evidence is available. The Government cannot get involved in individual cases. The framework with the recapitalised banks makes it clear that the Government does not get involved with the daily operations of banks.

The code of conduct is part of a suite of supports put in place for SMEs. It is legally binding and is working fairly well. Nevertheless, all codes may be improved, as can be seen with the most recent version of the code, and it will be subject to further review shortly.

Enforcement actions that may be taken by the Central Bank include monetary penalties and a direction for reprimand to the institution concerned. The Central Bank regularly publishes outcomes of investigations. Financial services firms must comply with business rules in all dealings with customers and the Central Bank of Ireland uses a number of methods to monitor compliance with consumer protection requirements. These include inspections, general reviews on a particular topic and mystery shopping of monitoring and advertising financial services. I appreciate the Deputies raising this matter.

Gangland Killings

Deputy Aodhán Ó Ríordáin

Ba mhaith liom buíochas a ghabháil leis an Cheann Comhairle as ucht an deis seo a thabhairt dom labhairt an ábhar seo inniu. Last Tuesday a constituent of mine was shot dead in Furry Park in Killester. A street was cordoned off, Garda barriers were erected and local children learned that a man was shot. Eamon Kelly was a notorious criminal but daylight murder should not happen in a civilised society.

There are those who would openly argue that as long as these people are killing each other, it does not matter. There are those who say people who live by the sword die by the sword or that this was no loss. These people do not have a clue about what they are talking. I am thankful this murder did not injure or harm any bystander or other innocent party.

However, such events imprint themselves on the consciousness of a community, which is not healthy. I know children who have lost family members to violent crime, and this has created a scar that will last a lifetime and poison their minds, possibly irreversibly.

The killing of Eamon Kelly was connected to the murder, also in my constituency, of Alan Ryan, who was shot dead on 3 September last. The Irish Times reported the following in connection with the killings:

Gardaí believe Ryan was shot dead in a conspiracy between a number of crime gangs as part of their efforts to resist the extortion demands of the Real IRA, with Ryan having led that extortion campaign. Intelligence suggests the Real IRA believe Eamon Kelly had assisted the gangs in organising the Ryan murder, with Kelly believed to have been gunned down as a result of his involvement.

Deputy Kevin Humphreys and I represent areas where young children and men are dragged into gang culture as they seek a perverse sense of empowerment.

I have a number of direct questions for the Minister. Does he agree that murder is murder regardless of who is the victim and whether he or she is known to the Garda? Does he have a view on how we can prevent this specific feud and feuds in general from spiralling out of control to avoid further bloodshed? Does he agree that constant attacks by politicians and media commentators on the pay, terms and conditions of the Garda Síochána are undermining Garda morale? Is he confident the Garda has sufficient resources to address this issue? How can we prevent young men and women from being sucked into this destructive way of life?

Deputy John Perry

I thank the Deputy for raising this important matter. I am speaking on behalf of the Minister for Justice and Equality who is unable to be present owing to other business. The Minister shares the widespread outrage at the type of criminality to which the Deputy refers and fully appreciates the concerns of communities who find this violence taking place on their streets. The brutal nature of these crimes is a stark reminder to us of the mentality of those involved in organised criminality and the danger they pose to society.

The Minister is in ongoing contact with the Garda Commissioner about all aspects of serious crime, and the Garda will continue to bear down heavily on the activities of those involved in gangland crime. The only effective way to combat organised crime is by disrupting and prosecuting those involved in its operations, especially the drugs trade which is at the heart of much of its profits. Extensive Garda operations have been launched against gangs and significant drug seizures made in recent months and weeks. These have included a major programme of more than 200 searches which were carried out nationwide under Operation Wireless, resulting in the seizure of a substantial amount of drugs and more than 100 arrests. Overall, An Garda Síochána seized drugs of an estimated value of €65.5 million in 2011, with drugs seizures estimated at €90.4 million for the first nine months of this year.

The Garda is also determined, in co-operation with colleagues in the PSNI, to continue to tackle robustly the activities of so called dissident republicans. It is clear that some of these groups have inextricable links with organised crime.

It is worth noting that the most recent recorded crime statistics, which were released at the end of September, show that crime levels in most categories are falling, which reflects well on the work of An Garda Síochána. For the 12-month period until the end of June, murder decreased by 8% and assault offences declined by 9.7%.

We should not underestimate the difficulties the Garda faces in trying to prevent gangland killings and related crimes and bringing the perpetrators to justice. These crimes are carefully planned and carried out by people who are familiar with criminal and forensic investigation techniques. Moreover, despite the clear risk to themselves, members of gangs will not generally co-operate with Garda investigations. The Minister understands that despite these difficulties, the Garda has been able to bring people before the courts, particularly in relation to a number of high profile killings in recent years, although it will be some time before these cases are disposed of.

As Deputies will be aware, the prompt action of gardaí resulted in the arrest of a man close to the scene of the horrific killing in Killester this week. The House will appreciate that because a person is in custody in relation to the killing, it would not be appropriate for me to go into detail about this particular incident.

It would be wrong to characterise this as a budgetary matter. There has been gangland violence for some time in Ireland and the number of murders was higher when Garda numbers were higher than at present. It is also unrealistic to expect the Garda Commissioner to devote his entire resources to protecting individually people who are routinely trying to avoid the Garda in order that they can continue to engage in criminal activity. Such an approach could only come at the expense of ordinary Garda activity to protect the community generally.

Strong anti-gangland legislation is in place. The Minister has made it clear to the Garda Commissioner that if he believes other measures could be taken in this area, he will examine them positively. It would be misleading to suggest, however, that there is some simple legislative solution which would prevent dangerous criminals from trying to kill each other. If that were the case, it would have been enacted years ago.

Furthermore, the Garda Commissioner is leading what he rightly describes as "the most fundamental restructuring of An Garda Síochána" since its foundation. There is a clear imperative to free up gardaí to ensure they are available for front-line operational purposes, and this is precisely the strategy the Commissioner is pursuing. The Commissioner enjoys the full support of the Government in continuing to confront criminal gangs and in bringing those involved to justice.

Deputy Aodhán Ó Ríordáin

I thank the Minister of State for his response and ask him to elaborate on the following statement in his reply:

It is also unrealistic to expect the Garda Commissioner to devote his entire resources to protecting individually people who are routinely trying to avoid the Garda in order that they can continue to engage in criminal activity. Such an approach could only come at the expense of ordinary Garda activity to protect the community generally.

If there is a suspicion that someone may be shot, surely other persons in his or her vicinity will also be at risk? I will repeat my question and ask whether the Minister agrees that murder is murder. The Minister of State's reply did not give any of the Minister's thoughts on how the feud to which I referred could be prevented from spiralling out of control. We are aware of two killings related to this particular issue, both of which occurred in a small geographical area of my constituency. How can we prevent someone else being shot? Both of the recent killings took place in broad daylight. Such events do not take place in a civilised society and I do not want to see Garda tape about the place when I travel around my constituency.

I am not convinced by the reply the Minister of State gave. While I do not expect the Garda Commissioner to devote his entire resources to protecting those who are at risk of assassination, at the same time, we must understand the nature of these types of murder attempts and who could be hurt or potentially killed as a result of them.

The Minister of State addressed the issue of Garda resources. Does he agree that when people consistently attack Garda pay and conditions, which are covered by various agreements, they undermine Garda morale? How can we prevent young people from disadvantaged areas being sucked into a criminal way of life to pursue a perverse sense of empowerment?

Deputy John Perry

I thank the Deputy again on behalf of the Minister for Justice and Equality. I also acknowledge the presence of Deputy Kevin Humphreys. I will convey the points Deputy Ó Ríordáin makes to the Minister for direct reply. Notwithstanding the shocking events to which he referred, we should remember that, week in and week out, the Garda successfully brings people involved in gangland activities before the courts and secures convictions. A substantial number of gangland criminals are serving prison sentences. As I stated, I cannot comment on the details of the case the Deputy raises.

The Minister will continue to pursue important improvements to the overall legislative architecture. In this regard, the legislative priority for combating crime is the publication and enactment of a new criminal justice (forensic evidence and DNA database system) Bill.

This Bill represents a major step forward and will be important in the fight against serious crime. It will lead to the establishment for the first time of a national DNA database and give the Garda access to intelligence on a scale and of a quality that were not previously available. This is welcome news.

Despite the constraints on public finances, substantial Garda resources remain in place. These must be seen in the context of a programme of real reform being delivered by the Garda under the Croke Park agreement. The Garda has the Minister's full confidence and I am sure that every Deputy would acknowledge its achievements in tackling serious and all other forms of crimes and its continued work on behalf of our community.

Regarding the activation of people on the ground, social enterprise and the education system are important, as the Deputy knows from his involvement in his community. Being a rural-based politician, I know that this is a question of educating young people at an early stage and community leaders getting as many people as possible involved. This week, the Minister for Social Protection, Deputy Burton, announced her plan to return 10,000 people to work. I hope that the jobs budget will have this result for people who are currently unemployed and are being retrained, upskilled and so on.

Activity is the best approach. The social enterprise agenda is being enacted in every community and is undoubtedly relevant to the Deputy's constituency. It must be supported. We must support facilities for community involvement. One cannot beat the role of communities and the volunteers therein. The State cannot do this alone. Rather, a partnership between people and State agencies is necessary. It will undoubtedly make a difference.

The Minister for Justice and Equality, Deputy Shatter, will reply to the Deputy directly on the issues that have been raised. I thank Deputy Ó Ríordáin. I also thank Deputy Kevin Humphreys for his attendance.

Written Answers follow Adjournment.

The Dáil adjourned at 10.15 p.m. until 10.30 a.m. on Friday, 7 December 2012.

Dáil Éireann debate - Thursday, 6 Dec 2012