If it is order, perhaps we might take the Minister's reply immediately. This matter relates to his constituency and he is aware of it.
Topical Issue Debate
School Enrolments
The Deputy is requesting that the Minister reply immediately.
Yes.
Is that acceptable to the Minister?
It is. We do our business very smartly in the constituency of Dublin South-East.
That is good. I am glad to hear it.
I thank Deputy Eoghan Murphy for raising this matter, particularly as it gives me the opportunity to remind the House of the significant challenges we face in the context of meeting increasing demand for pupil places throughout the country in the coming years and of how these are to be addressed.
Primary enrolments, which have already risen substantially in recent years, are projected to rise by more than 37,000 pupils by 2015. They are set to continue to rise with a likely peak at approximately 596,000 pupils to be catered for in 2019. This compares with 526,000 pupils enrolled in primary schools in the last academic year.
The Deputy rightly points out that the Dublin South-East area is among those areas where this increase is creating pressure for extra school places and this is being felt strongly in the short term. The Department has highlighted the Dublin South-East area as one that will need extra school places from 2014 onwards.
The Deputy will be aware that my Department uses a geographical information system to identify where the pressure for school places will arise. The GIS uses data from the Central Statistics Office, Ordnance Survey Ireland and the Department of Social Protection in addition to the Department's databases. The Department also uses data from local authorities.
With this information the Department carried out a study of the country to identify where there will be a requirement for significant additional school provision at primary and post-primary levels over the coming years. The Dublin South-East area surfaced as one needing extra school places under the process. In June 2011, I announced the need for the establishment of 20 new primary schools with approximately 500 pupils per school to cater for increased demographics in several locations up to and including 2017. This included the establishment of a new school for the Dublin South-East area. The school, known as the Shellybanks Educate Together national school, which will open this coming September, will be located initially in start-up accommodation in Ballsbridge. It will cater for demand for pupil places from the Sandymount, Ringsend and Irishtown areas. It is planned that the new school will provide an additional 16 mainstream classrooms for the area when it is fully developed, or more if extra capacity is needed. The Department is working on acquiring permanent accommodation for the school but this alone is not enough and additional capacity is being provided in other schools in the area as well.
A building project to facilitate the amalgamation and expansion of two schools is facilitated under the five year construction programme I announced in March 2012. The project is at an advanced stage of architectural planning and it will provide further classrooms for the Dublin South-East area when completed. The Department is also working closely with some of the other schools in the area to address enrolment issues in the shorter term, starting next September. These schools include Canon O'Hanlon memorial school, otherwise known as Star of the Sea school in Sandymount, St. Brigid's primary school on Haddington Road, and Scoil Mhuire Lakelands on Gilford Road. I record my thanks to the schools for their help and support in this matter. In tandem, the Department is examining the most up-to-date demographic data available for the area to determine further needs and ensure these are met in a timely manner. The Department and I will continue to monitor the situation to ensure every pupil seeking a place in the area can have access to one.
I thank the Minister and I welcome his reply. He represents the same constituency as me and therefore is fully aware of all the issues involved. I welcome the reforms the Minister is bringing to the schools admission process. They have been received well in general in the constituency and in the country, as has the advanced schools buildings programme. However, the Minister will have received the same correspondence I have been getting from parents who are thinking about deferring sending their children to school to September 2014. Some have moved to baptise their children in a matter of weeks simply to try to get them moved up the lists. Others have had to go to family members to try to help with moving to pay for private education because they cannot get into a local State school.
The Minister rightly identified some of the schools where there are problems, including St. Mary's national school on Belmont Avenue. Is there a possibility that we could have an extra classroom in the new Shellybanks Educate Together school for September 2014? Is there any possibility of using a site, for example, a site on Harcourt Terrace, that could be expanded on a temporary basis? Could property be leased? Furthermore, in terms of the possible solutions, to what extent are the schools and, through the school boards, the parents, being informed of all the efforts the Minister is making to try to resolve the situation? As each week moves on, parents become more frantic about it.
I welcome the Deputy's comments and his recognition of what we are trying to do. Part of the problem is that the GIS registers the physical location of every child benefit payment for those aged one, two and three years of age. It works accurately and satisfactorily in certain areas, for example, outside a town like Clonakilty or Donegal town, where we have a fair idea what the growing population is and what the likelihood is of the numbers that will present in the nearest urban area. In a large urban area like Dublin, there are people who have moved to the suburbs. Some of these may have grown up in the inner city area and they may wish to bring their children back in to the city centre, which they are entitled to do, since the grandparents are providing support after school. Therefore, our ability to measure and capture the numbers of people looking for places in big urban areas, whether in Cork, Limerick, Galway or Dublin, is self-evidently less clear and less sophisticated than in different parts of the country where the growth in demand can only be accommodated in the area most likely to accommodate it and where people are unlikely to travel miles in another direction.
Notwithstanding that, the increase in the numbers has, to a certain extent, caught us by surprise and we are considering emergency measures to get extra accommodation. Deputy Murphy has referred to some of these. We have had one setback in respect of the amalgamation of St. Brigid's and St. Mary's schools on Haddington Road. Planning permission and so on was secured in the normal way but then an appeal was lodged in the past working day, which is perfectly valid. People are perfectly entitled to so do. There are difficulties with traffic. We hope the appeals process can be expedited as quickly as possible. I thank the Deputy for bringing the matter to the attention of the House because it is an issue. I will communicate with him and other colleagues in the constituency.
Voluntary Housing Sector
I thank the Minister of State for taking this topic. We will have the chance to discuss other issues in respect of housing tomorrow. One thing that has come across clearly to all Members is the fact that housing construction has fallen to critically low levels. Output is not keeping pace with the additional households that are formed every year. We are told there are 100,000 people on the housing waiting lists. However, the figures I have received for housing units provided last year indicate in the region of 8,000 were provided. Perhaps the Minister of State will confirm this. It is important that social housing should be increased in particular because of the increase in homelessness in the past two years.
I hope the Government can assist the housing associations by resolving some of the existing hurdles and, in turn, deliver more social housing. I have in mind in particular availing of private finance with appropriate terms and conditions and removing the administrative hurdles that exist such as State mortgage charges. The NAMA model has been referred to frequently but I believe the NAMA model should be speeded up in respect of property transfers. I hope we could have at least a three year planned housing development programme. Many areas could be examined but I hope the Minister of State will consider the position of voluntary housing projects.
I have a case which I raised before by way of a parliamentary question in respect of the Society of St. Vincent de Paul project at Ozanam House, Ballinasloe, County Galway, a proposed voluntary housing project for the elderly in Ballinasloe. The project is one of many that requires the Department's capital assistance scheme funding to proceed to the next stage. I understand that by 27 March, which is only 14 days away, local authorities must submit their prioritised lists of capital assistance projects. I hope the project in Ballinasloe will be considered in this allocation. Ballinasloe does not have any housing for the elderly. Let us compare this with a town such as Tuam where Clúid has a successful sheltered housing project, mostly for elderly people.
Given the amount of work that has gone into the project by the Society of Saint Vincent de Paul, I hope this can be favourably considered.
Many elderly people are feeling the effects of a combination of social welfare cutbacks and increased rents. This is particularly so in Dublin where due to those issues, more people are on waiting lists for social housing. Homelessness will continue if we do not tackle the issue. The Minister of State has said we will deal with homelessness once and for all by 2016, but a lot more work is needed now if we are to meet that target.
I thank Deputy Kitt for raising this matter and I am aware of his interest in the housing area generally.
As Minister of State with responsibility for housing, I am keenly aware of the challenges we face in providing housing supports to a range of vulnerable people in County Galway and elsewhere. The Government's 2011 housing policy statement clearly outlines that the priority for the Government is to meet the most acute needs of households applying for social housing support. The Government is responding to these needs through a variety of mechanisms and more flexible funding models.
To maximise the social housing gain from constrained resources, the social housing leasing initiative and the rental accommodation scheme each play their part. I am fully committed to capturing social housing gain from private developments. Alongside expanding the role of the approved housing bodies, AHBs, in terms of acquisitions and construction, other mechanisms will include options to purchase within the leasing model and build to lease.
As Deputy Kitt said, a relatively small number of houses were built last year. He cited a figure of 8,000 which would not be far off the mark in terms of total housing construction. Increasing both public and private housing supply is a priority for the Government. Earlier today, I was pleased to announce the restart of a local authority mainstream house building programme. Over the next two years €68 million will be invested across the country to build new social homes for families in need of housing. This investment represents the first return to new mainstream local authority house building in a number of years.
This initiative, which will see some 442 new homes built across the country for families on the waiting lists, is just one of a number of Government-backed initiatives we are launching in 2014, which will provide high-quality homes for families. I also intend to announce details of a special investment of €15 million for the retrofitting of boarded-up local authority houses to make these available to households in need of social housing. Not only will these programmes deliver new or better housing for people, they will also create and sustain hundreds of jobs in the construction and green energy sectors.
I know that Deputy Kitt is familiar with the capital assistance scheme, CAS, whereby funding of up to 100% of the cost of projects is provided to approved housing bodies, through local authorities, for the provision of accommodation for persons with specific categories of housing need, including older persons, persons with a disability or homeless persons. Over the years, the CAS scheme has funded the provision of over 27,000 units of accommodation. I am committed to the retention of this worthwhile programme.
In January, my Department requested local authorities to issue a call for proposals under the CAS scheme, requesting approved housing bodies to put forward cost-effective and sustainable proposals to meet the accommodation needs of people with specific categories of housing need within their administrative areas. Local authorities are required to submit a prioritised list of proposals to my Department by 28 March for new construction and acquisition projects to be funded and progressed over the next two years. It will be a matter for local authorities to determine the relative priority of projects on the basis of their contribution to meeting local housing need and to shortlist these in order of merit. Further consideration of CAS scheme projects for funding approval over the next two years, including projects submitted in County Galway, must await the receipt of submissions from local authorities. I therefore look forward to receiving the submissions by 28 March and we will then make decisions very quickly.
I thank the Minister of State for her reply. I welcome her announcement concerning the next two years when €68 million will be invested across the country for the construction of new social homes for families in need of housing.
The Minister of State referred to 442 new homes being built across the country for families on waiting lists. If it is true that 100,000 people are on the waiting list, however, that will only help a small number of families. Nonetheless, every new home is a help. I hope that, perhaps with the assistance of the Department of Finance, the Minister of State will get further funding to deal with a very long waiting list.
As I have already suggested, the Minister of State might examine what voluntary housing organisations are doing. She might try to assist them because they are determined to provide for real housing needs in County Galway, and I am sure the same applies in other counties. Many obstacles are being placed in the way of such organisations, however, so the Minister of State may hopefully be able to help out by providing them with more assistance. For example, people who get houses through voluntary associations should be able to purchase them under a tenant purchase scheme, which they could do if they were built through a local authority.
The Minister of State did not deal with the question of NAMA. I would like to see the pace of NAMA property transfers being speeded up to ensure that whatever is available there could be provided. In addition, State land could be examined in this regard. NAMA has said it is willing to co-operate in speeding up the transfer of property. I would like the Minister of State to deal with those issues and hopefully tomorrow we will have another discussion on housing.
I thank Deputy Kitt for his remarks. We will have an opportunity to address some of those issues tomorrow. I do hope that we will be able to get further funding. I welcome support from all sides of the House in getting as much funding as we can for housing construction because there is clearly a need for it.
The transfer of NAMA units has been speeded up quite a bit. We expect that we will get the full 2,000 units in the lifetime of this Government, which is the commitment we have made. We meet with NAMA's representatives fairly regularly to address these issues. We now have a more simplified system for the transfer of NAMA units.
The Deputy referred to the private housing sector and getting private funding. Under the CAS scheme, only approximately 25% of funding comes from the State, while the voluntary sector raises extra funding. That scheme is progressing. We now have voluntary regulation of the private sector, which they tell us makes it easier for them to obtain funding in the private sector. We have some examples of where that is progressing. I am willing to examine all the various options that come forward.
We expect to deliver about 5,000 units this year, some of which will be from direct construction, some from the CAS scheme, some through NAMA and others through leasing and the rental accommodation scheme. We are using as many different systems as we can because there is clearly a need for such housing.
Along with everybody in this Chamber, I would like to increase the construction of local authority housing. I am happy that today marks the restart of a mainstream programme after the collapse of the economy. I hope that we will be able to make further announcements in the near future.
Maternity Services
The Minister of State, Deputy Kathleen Lynch, may have seen the article on the front page of the Evening Echo yesterday, which was very worrying for any expectant mothers in the southern region. I do not propose to indulge in scare-mongering about a crisis or safety issues in our maternity hospitals. I tabled this Topical Issue matter to allow the Government to outline its plans in the wake of the recent report and to give some reassurance to expectant mothers. I wish to give the Government an opportunity to outline exactly what steps it will be taking.
Having read yesterday's report, the Minister of State will know all the facts. The Irish Nurses and Midwives Organisation estimates it will take about 550 posts to be filled to bring the 19 maternity hospitals up to the international best standard for the birth rate, which is one midwife to 29.5 births.
The current national average ratio in the 19 hospitals stands at one midwife to 38 births while the figure in Cork University Maternity Hospital is one midwife to 37 births. The ratio ranges from one midwife to 30 births to one midwife to 55 births. This is a very worrying statistic as is the information that none of the 19 maternity hospitals is operating under what is known as the international best practice ratio of one midwife to 29.5 births. It is also worrying to consider that Liam Doran recently stated that even if all the posts were advertised in the morning, in his estimation it would take five to six years to fill all those posts with experienced registered midwives.
The HSE has given a commitment to undertake a national examination as a result of the report on the 19 maternity hospitals. I ask the Minister of State to outline how the Government intends to reassure expectant mothers.
I thank the Deputy for raising this matter. As parents ourselves we are very conscious that delivering a baby is the most vulnerable time in any woman's life and the most anxious time for any family.
I refer to recent incidents which took place in Portlaoise and we should also extend our sympathies to people who have lost much longed-for babies. We all feel that loss.
With regard to the issue raised by the Deputy, I wish to make it clear that there is no embargo on the recruitment of midwives or other front-line staff in the public health service. While the numbers employed across the public health service must be reduced in order to meet fiscal and budgetary targets, it is recognised that certain services such as maternity are demand-led and require specialist staffing. The HSE has arrangements in place to allow the recruitment of such staff where it has been established that there is an urgent service requirement. I am satisfied that it is open to the HSE to recruit the levels of front-line staff necessary to ensure a safe service provision. More generally, in order to mitigate the impact on front-line services of the reduction in employment numbers, the priority is to reform how health services are delivered in order to ensure a more productive and cost-efficient health system.
At the end of 2013 the number of staff midwives, including senior staff grade in the public health service, was 1,341 whole-time equivalents, including 20 on the graduate placement scheme. At the end of 2007 the number was 933 whole-time equivalents. This shows how the HSE has the capacity to focus recruitment in specific areas where increases are required. The increase in nursing hours available under the Haddington Road agreement equates to nearly 1,400 additional nurses. The number of nursing staff increased by 100 in the first month of 2014, reflecting the take-up of posts under the graduate initiative.
In the case of staffing levels at Cork University Maternity Hospital, I have been informed by the HSE that from a staff complement of 397 whole-time equivalents, currently 388 midwifery nurses are employed. I understand that active recruitment processes are in place to fill the nursing midwifery posts, including 7.5 gynaecological nursing posts and two assistant directors of midwifery.
I draw the attention of Members to a midwifery workload and workforce review of maternity services in Ireland which will be undertaken by the HSE. This review will validate staffing levels for midwives and maternity care assistants in maternity units and will recommend appropriate midwifery staffing and skill mix levels and initiatives to meet emerging models of maternity care in order to ensure standards of safety and quality of care for women and their families. The workforce review will inform the new national maternity services strategy and as part of the development of the strategy, maternity services in all parts of the country will be subject to review and evaluation. The development of this strategy is under way and will determine the optimal configuration of maternity services to ensure that women in Ireland have access to safe, high quality maternity care in a setting most appropriate to their needs. I intend to publish the strategy later this year.
I thank the Minister of State for her reply. I take the Minister of State at her word that there is no embargo on the recruitment of front-line staff in maternity hospitals in particular. If that is the case, I ask if she will enlighten us as to the reason for the log-jam. None of the 19 maternity hospitals has the best practice standard of the ratio of midwives to births, which is one midwife for 29.5 births. A total of 25 babies a day are being delivered in CUMH. According to a report in the local paper yesterday, it would take an additional 60 staff to bring the number of staff to the international standard ratio.
Is a recruitment campaign currently under way to recruit an adequate number of midwives to provide the maternity hospitals with the best ratio? I presume the HSE report will investigate staffing levels and also take a holistic view of maternity services to include safety and best practice. If the report is to be published before the end of the year, I ask the Minister of State to give a commitment that its recommendations will be implemented as quickly as possible if fiscal constraints permit. As the Minister of State said, having a baby is one of the most anxious times for women when they are most vulnerable. We must ensure that reassurance about resources or information can be provided to women who are pregnant and are patients in maternity hospitals and that all safety standards are being met at all times.
It is intended to produce a strategy on maternity services to cover all the maternity units and hospitals in the country. There is no embargo on recruitment of staff considered to be necessary to the provision of a safe service. This includes midwives. We are taking a holistic approach to maternity services. I wish to reassure people that apart from recent events, our maternity services are very safe. Not alone are they safe, but they give a degree of confidence to every mother who uses those services. We must learn from the recent events and ensure that they will never be repeated. The Department of Health now has a post of director of nursing who will undertake the survey in order to produce a strategy. The grouping of hospitals will ensure a safer delivery of care across a range of issues. The grouping of hospitals is central to services in the greater Cork area. We must learn from the awful events in the recent past which left mothers and families bereft to ensure that there will never be a repetition. That learning has begun already.
Jobs Protection
Elverys Sports is a company that has been trading profitably, notwithstanding its being taken into the National Asset Management Agency, an achievement that is due to the hard work of management and staff over the years. It has grown from a single shop in Castlebar, County Mayo, to a chain of 54 stores nationwide, with a growing online business. As a result of NAMA's shenanigans in handling the sale of the business, however, this profitable company has gone into examinership.
Is this how NAMA, the largest property company in the world, should be doing its business on behalf of the taxpayers of this country? As we know, NAMA issued a notice of decision to sell the company to a management buy-out team. Way past the 11th hour, however, it allowed that deal to be scuppered by entertaining a further bid, which resulted in the company being placed in examinership. What is the final cost of this examinership, not to mention the associated costs? Elverys Sports has been put into freefall on account of this uncertainty, which has adversely affected its ability to trade and will surely undermine the value of the company when it comes to sale. It is enough to make one's blood boil when one considers the number of jobs at stake. Certainly, it seems clear that job protection is not a significant concern for NAMA in this particular instance. I am disappointed that the Minister for Finance is not in the Chamber this evening, given his responsibility for NAMA and its activities.
We are here today to press the case for safeguarding the 700 jobs that are at risk at Elverys Sports stores nationwide. The best way forward is clearly for a management buy-out to proceed. These people know best how the company works and have the wherewithal to forge ahead and ensure its growth as a leading Irish company. Every other day, I hear the Minister, Deputy Richard Bruton, his Cabinet colleagues, IDA Ireland and other Government agencies reminding us how difficult it is to get jobs into the west. Job creation is mainly taking place in the major centres of population, a fact that is recognised in the new regional focus included in the revised Action Plan for Jobs. What is the action plan to retain the nearly 200 jobs in Mayo that are in jeopardy? How is real meaning being given in this instance to the high priority NAMA is supposed to place on the preservation of jobs? Will the Minister offer some reassurance to the workers who are in the Chamber today and their fellow workers throughout the country?
This is a very serious matter for the 700 employees of Elverys Sports, their families and the communities in which they reside. The company's staff are local to its units throughout the country and the various stores are dedicated to and embedded in their communities, as witnessed by the sponsorship they offer to various clubs and organisations and their support for students in offering them summer and weekend work.
As Deputy Mulherin outlined, Elverys Sports finds itself in examinership after a management buy-out was deemed not to be successful because there were other parties seeking to enter the fray. The examiner has an obligation to act in the interests of NAMA, as has been explained. However, NAMA, too, has an obligation to act in the interest of taxpayers. We in this House have our own obligations to the people who give us the privilege to be here. We also have an obligation to taxpayers to ensure that the funds provided to bodies like NAMA yield a dividend for the Exchequer. Any successful bid out of the six that are supposedly on the table must have at its core a commitment to staff interests. The best way to ensure that outcome is for the examiner to allow a staff representative to be privy to the assessment of the various bids. It is the responsibility of Government to ensure NAMA is cognisant of its social obligations as well as its economic responsibilities. It is also the responsibility of Government to ensure that debt not necessarily associated with a profitable business such as this is not allowed to drown jobs, communities and the retail sector, and thereby rid our towns of much-needed investment.
This particular case is a test of the recent comments by Morgan Kelly in his analysis of the economy. It is time for the Government to show it will not stand idly and allow this or any other SME of its type be put to the sword by those who would seek to strangle it in the manner in which matters have been pursued in this instance.
I received an e-mail last week from some of the Elverys Sports workers, as I assume did other Members. I was aware of reports in recent weeks that the company was going into examinership, with the likely outcome being a management buy-out. The general view among workers is that such an outcome would be best for them in terms of contracts, wages and conditions. In that context, it is absolutely amazing that we have arrived at a situation where the examiner has let other potential buyers into the fray.
Will the Minister explain why this has happened and what is likely to happen next? Will he give an assurance that whatever the outcome, the 700 jobs in Elverys Sports stores throughout the country will be protected, together with the contracts and conditions of the workers? This is a long-established company which, as the other speakers mentioned, provides sponsorship for sporting organisations throughout the country. Indeed, it is a much better sponsor than the cigarette and alcohol companies. We should support these types of local businesses as much as possible. I am not sure whether it is in the Minister's power to intervene with NAMA and with the examinership process. In any event, he has an opportunity this evening to explain to the workers what is happening.
I thank the Deputies for raising this issue. As Minister with responsibility for employment, I am always concerned about any job losses. Indeed, job retention and creation has been my main focus since taking office.
The company referred to by the Deputies is in the middle of the examinership process and, as such, it is important that nothing be said here this evening that might affect the outcome of that process. It will be for the examiner to consult creditors, potential investors and other relevant parties to devise the most appropriate course of action in the interests of the survival of the company and put that course of action to the court for approval. The court will have the final say and, until then, the company is under its protection. We must be careful to respect that.
Examinership is the main debt restructuring system for companies in Ireland and has been in existence since 1990. It allows for the rescue of companies which find themselves insolvent but have the potential to return to financial viability and continue in operation into the future. The key feature of the process is a period of court protection lasting up to 100 days during which nobody may institute proceedings against the company or petition for it to be wound up. The examiner uses this time to devise a scheme of arrangement in consultation with creditors, company management, potential investors and any other parties that will be affected by the scheme. The scheme of arrangement is put to the court and if the majority of the company's creditors and the court approves, it becomes binding on all of them.
In the case of Elverys Sports, I am informed that NAMA, in its role as a secured lender, approved the sale of assets of the parent company, Staunton Sports, to the management team following a process run by the directors of Staunton Sports through IBI Corporate Finance, acting under the duty of care to NAMA. However, the receivership event required to give effect to the transaction could not proceed at the agreed time because the management team did not have the requisite funding in place to complete. A higher bid was indicated by another party prior to the receiver's appointment and sale completion. The prospective receiver advised that, if appointed, he would be legally obliged to consider this bid, since he has a statutory obligation to secure the best price reasonably obtainable for the secured assets at the time of their sale.
Several press outlets have carried news of the third-party bid. The resulting uncertainty caused concern among suppliers and trade creditors, a situation which the directors of Staunton Sports brought to the attention of NAMA. Having regard to the deteriorating condition of the business and the company's insolvent position, and based on legal advice, NAMA put to the directors of Staunton Sports that examinership was an alternative option which would permit all bids to be considered while the company was under the protection of the High Court. It is on the public record that the appointment of an examiner to Elverys Sports was supported by the directors of the company. The decision to seek the protection of the court through examinership was taken in order to protect the company and its employees, and NAMA is funding the company during the examinership process.
It is understood that the examiner is currently in the process of engaging with various parties who have expressed an interest in the business, including the management team. As part of this process, the examiner has requested proposals from each of the parties regarding their plans for the business and for the employees of the company. The examiner has not yet concluded this process.
I believe examinership is a good option for companies that have real prospects for the future, but find themselves in financial difficulty at present. I should say that the examiner in this instance has already gone to the court and made a presentation to the effect that this company has a prospect of viability. He has convinced the court of the prospect of viability and the court has provided for a 100-day extension. That is an important first step that has to be taken. The company has done that. The balanced procedure that has to be followed in these cases takes account of the interests of the ailing company and the rights of its creditors and gives the courts a role in ensuring there is a fair and appropriate outcome.
Of course there have been some criticisms of the costs associated with the examinership process. For that reason, the Oireachtas passed the Companies (Miscellaneous Provisions) Bill 2013 late last year. This legislation allows small private companies to apply for examinership in the Circuit Court, rather than having to go directly to the High Court. I hope this will make examinership an option for more companies in the future. In the meantime, I am keeping the law on examinership under review. I am keen to identify whether there are other ways of making examinership less costly.
The specific issue of terms and conditions, which was raised by Deputy Joan Collins, is governed by the TUPE legislation. The TUPE obligations will apply in the event of the company being sold as a going concern. This means the current terms and conditions will continue to apply when the new owner is in place. I think I have responded to the other issues that were raised by Deputies.
I am conscious that a written copy of the Minister's response was not made available in the Chamber. I ask the Minister to ensure his response is e-mailed to the Deputies at some stage.
I will.
I am sure it was not the Minister's fault.
I understand the nature of examinership. With all due respect, NAMA took on a healthy and profitable company. The company got into the difficulties that required it to go into examinership on NAMA's watch. I think questions need to be asked about the way NAMA is doing its business. Companies that do not have problems are encountering problems when they come under the NAMA umbrella. That is the taxpayer's concern. These employees are concerned about their jobs. The Minister did not mention their jobs. I asked the Minister for Finance about the level of priority that NAMA gives to the retention of jobs when businesses are being sold as going concerns. He assured me in his response that NAMA gives a high priority to the preservation of jobs in any business that has a loan with the agency. There is no evidence of that here.
It is crucial that the management buy-out should proceed. The company would not have gone into freefall if the notice of decision that was issued had been proceeded with at the time. Much of the blame for the fact that it has gone into freefall lies with NAMA. I believe it should be challenged. I am taking this up with the Minister for Finance. The Minister, Deputy Bruton, is responsible for the issue of jobs. I understand he is working night and day to try to create jobs. In this instance, jobs are under threat in the west, where jobs are hard to come by. We need more action. The reality of the promise set out in the response I received from the Minister for Finance needs to come into play to protect the jobs of the Elverys Sports employees.
I thank the Minister for his response. He said that the examiner is obliged to consult the relevant parties that are privy to this process. Does he agree that the level of consultation with the workers in this case has been minimal? Subsequently, and on foot of what has been said to Deputy Mulherin, does he believe and will he acknowledge to us that NAMA has a social obligation and responsibility to seek to pursue the retention of as many jobs as possible? Does he think NAMA is doing that in the proper fashion in this instance? He acknowledged that the directors agreed with NAMA's recommendation that the company should enter this process. Can he go a step further, following on from what he said about TUPE, and make it clear that the representatives and the staff should have a better engagement with and involvement in assessing the bids that will ultimately determine their future? Progress should be made in a way that meets the responsibilities to creditors and leads to a settlement with which they can be happy.
If NAMA is the lead creditor, it must be obliged to respect the mandate it has from this House. In other words, NAMA has a social responsibility as well as an economic responsibility. Will the Minister reiterate for the House that these responsibilities must be applied in this instance to the full letter of the law? This is necessary if staff are to be sure that every effort is being made to give them the best possible opportunity to retain their jobs. As has been said previously, this company is in a profitable situation and cannot be allowed to be drowned as a result of being dragged down by loans that are not specifically related to the business. As I said earlier, this is the first indication the Minister can give on behalf of the Government that he will not stand idly in this instance or any future instances that relate to how banks deal with debt associated with small and medium-sized enterprises.
It seems that a profitable company, with the backing of its directors, went to NAMA to discuss a management buy-out. It appears that as a result of difficulties experienced after that time, it was not possible for the company to exercise that buy-out. There is something wrong with that process, to my mind. Why would a profitable company not be able to complete such a buy-out? I want clarification in that regard. I asked about what will happen to the contracts, conditions and pay relating to these jobs, in the event of the company being bought, because I understand that the TUPE regime should protect these workers and their jobs regardless of who buys the company. It seems strange that a process which was started on foot of a positive development has led to the company now being in difficulty, and possibly being bought by somebody else.
To be fair to NAMA, there is a bit of a misunderstanding of its role. NAMA was supportive of an arrangement that would have facilitated a management buy-out of a company that was insolvent. Implicit in that was an agreement to have some of the debts dealt with to allow the company to continue to proceed. As I understand it, it was not NAMA's fault that it was not possible for this process to be completed. After an alternative bid came in, NAMA suggested that the best way to protect the company was to seek an examinership process, which allows for a write-down of debt where creditors agree - this answers Deputy Cowen's point - and involves court protection to save the jobs, save the enterprise and try to maintain a going concern. NAMA's role in this process led to the testing of one option, which did not fulfil what was required. Now it has taken another approach as part of the search for a viable outcome. I certainly hope such an outcome can emerge from this approach. It is clear, in response to Deputy Cowen's point, that this process allows viable businesses to survive without their existence being threatened by bad property decisions or property debts that might be burdening them. That is what this process is about. The courts have a role. The purpose of examinership is to save the jobs. The TUPE regime will apply regardless of whether there is a management buy-out or one of the other bids is successful and the business continues. The transfer of obligations undertakings will apply in both cases. The legal security of the workers will be the same in both cases. I acknowledge the point that there might be a preference for one or the other.
Reference was made to the examiner's role with regard to different players, including the creditors or the workers. Examiners are governed by very strict legislation that sets out what they can and cannot do. Essentially, they must try to find a scheme or arrangement that can be put to the creditors and allows for a viable outcome. I am sure they try to keep workers involved to the best extent possible during that process.
They have a responsibility to the courts and the creditors. In this case there are six bids which, no doubt, have to be dealt with as six independent bids and handled confidentially. I imagine the examiner is under considerable legal constraint in the way he deals with this situation. This is the best way in which we can seek to save the jobs involved, which I sincerely hope is the outcome of this process. The examiner was appointed on 4 February and is still at a relatively early stage in the process. I do not have a role in the examinership. Obviously, the examiner must deal with those directly involved and report back to the court, with the outcome of the various options.