Topical Issue Debate

Job Losses

Deputy Ann Phelan

I thank the Ceann Comhairle for affording me the opportunity to speak about this most unfortunate issue. Dan Morrissey Irl. Limited is a company based in Carlow and Wicklow that is involved in the quarrying and concrete industry. It is a family-owned business servicing the construction and agricultural industries in the south east. The Morrissey family has ensured employment for hundreds of individuals and their families over the years through direct and indirect employment. It is also a great supporter of local organisations in Carlow town.

On Wednesday of last week, I was deeply saddened to hear that Dan Morrissey Irl. Limited had gone into receivership. The laissez-faire and somewhat cavalier attitude of AIB in this instance leaves a lot to be desired. To the workers' dismay, they turned up on Wednesday morning to find the gates of their employment had been locked. The workers received no explanation or information and had to rely on the local media for any information they were able to get. They were left in complete limbo as to the future of their jobs. The workers simply cannot understand why a bank in which this State has such a large stake can do this to them and I have some sympathy with them. The loss of 160 jobs from a local economy would be a crushing blow to any community let alone one that has already suffered ravages from the loss of the sugar beet industry and the Braun factory some years ago.

With the workers, I welcome the court decision last Friday to appoint an interim examiner until 14 July. Most of the workers have young families to support and mortgage repayments among other debts. The domino effect that this would create in Carlow would be significant. The fact that an interim examiner has been appointed to Dan Morrissey Irl. Limited would perhaps indicate that there is a possibility of some resolution as I understand that the company does have over €4.5 million worth of contracts on hand with blue chip clients like Carlow County Council. I fully support any measure that can be put in place that will assist in the survival of this company. We need to ask what we as public representatives can do to help ensure the sustainability and survival of this company which is so vital to Carlow and the south east as a whole.

Deputy Peadar Tóibín

In the past three years, I have highlighted at committee level and in this Chamber the plight of functioning businesses that are in debt distress. A large number of other commentators, including Morgan Kelly, have indicated the difficulties that SMEs around the country are experiencing with mortgage distress and what this is doing to the economy. The issue of debt distress is enormous. It is of iceberg proportions. For every bit we see, there are nine or ten more companies in this country under the surface dealing with debt distress. We are seeing functioning businesses being closed every week and hundreds of other businesses having their investment or spend literally paralysed with the result that they have a millstone of debt around their necks. It is a significant brake on the economy. The growth rates the Government is forecasting will not happen unless it deals with this issue. The problem lies with the Government's priorities. The banks are the Holy Grail of Government policy and the rest can get stuffed.

Morrissey Quarry is a medium-sized business in Carlow with 130 staff on its books. It pays an annual wage bill of €5 million into the local economies, €500,000 in rates and hundreds of thousands of euro in vehicle and fuel taxes. It is a functioning firm and as has been noted, it has contracts worth millions of euro on its books waiting to delivered upon. It is in trouble because of a number of acquisitions it made in the noughties and because it is at the end of a line of credit where other creditors have refused to pay it the necessary funds as well. The workers need to know what the Government will do to make sure that a functioning business can be allowed to restructure its loans in a situation where it can be nurtured out of this debt. What will it do to ensure these businesses can remain in place, delivering their services properly, keeping these people employed and paying their debts in the long run? What will the Minister do?

Deputy Pat Deering

I thank the Ceann Comhairle for selecting this topic, which is very important in Carlow, Kilkenny and Wicklow. The issue is the appointment by AIB of a receiver to Dan Morrissey Irl. Limited last week. Thankfully, on Friday evening, common sense prevailed and the High Court appointed an interim examiner until this Thursday when, hopefully, the appointment will be confirmed for 100 days.

As has been stated previously, Dan Morrissey Irl. Limited is primarily a Carlow company with operations in Wicklow and other locations. The company was established by Dan Morrissey in the 1930s, although the family's association with the construction materials industry can be traced back many generations. A family-owned and managed business, it is one of the biggest independent suppliers of materials to the Irish construction Industry. Its business includes the supply of quarry products such as ready-mix concrete, concrete blocks, aggregate, tarmacadam and roof tiles. These are sold extensively across the country but especially in Dublin and the south east. The company's vast experience and knowledge and its reputation for quality products has made it one of top suppliers of quarry products in the country. Like most, if not all, construction-related companies, it has come through a very difficult six years since this recession took its toll on the construction industry. However, things are looking up, the future does look brighter and there are signs, however small, of recovery in the construction industry. Dan Morrissey Irl. Limited has €4.5 million worth of confirmed orders on its books. This allied with the quick turnaround telephone orders that come in hourly mean that it could have as much as €8 million worth of work to complete in the coming months.

I am amazed that AIB has moved in at this particular time. It begs the question "why now?" Why did it not do this not last spring when the company's order book was depleted and the going was tough? Why wait until there are positive signs - green shoots as we might call them? Look at the value of confirmed orders, many from local authorities. The company supplies its product to ten local authorities around the country. Regardless of whether it was in the days of the Celtic tiger or these less prosperous times we live in now, the construction industry has boomed in the summer months. Again, I ask why AIB is moving at this stage.

Dan Morrissey Irl. Limited employs 160 direct employees putting €6 million in wages annually into the local economy and an estimated similar indirect amount. It pays €1 million in rates to county councils in Carlow and Wicklow and it spends €250,000 monthly on fuel. It has enough deposits of raw material to meet its current demand for at least another generation, which is significant.

When this news broke last Wednesday evening, I contacted David Duffy, the CEO of AIB. To say the least, his response was disappointing - a standard copy and paste letter. It was the same reply he sent to the Cathaoirleach of Carlow County Council when a special meeting was convened. He said that he had exhausted every possible avenue to ensure a receiver would not be appointed. I understand that trying to ensure that taxpayers get value for money is difficult, but the big question we must ask is why AIB is moving in at this moment in time when the company is in its busiest season. Why did the bank not move last January or February?

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

I thank the Deputies for raising this matter. My understanding is that following the appointment of a receiver last week by the bank concerned, an interim examiner was appointed by the High Court to the company in question on 20 June. I believe examinership is a good option for companies that have real prospects for the future but find themselves in financial difficulty at a point in time. Examinership is, however, a balanced procedure, taking into account both the interests of the ailing company and the rights of the creditors and giving the courts a role in ensuring a fair and appropriate outcome.

As I have indicated, I understand the High Court appointed an interim examiner to the company on foot of an ex parte application on 20 June. The High Court fixed 26 June for the hearing of the petition and ordered that notice be given to a number of interested parties. It is a requirement of the Companies (Amendment) Act 1990 that a court cannot appoint an examiner to a company without giving creditors an opportunity to be heard. As the matter is before the court, the Deputy will appreciate that nothing should be said this evening that would be seen to interfere with this process.

As the matter is before the court, the Deputies will appreciate that nothing should be said in the debate that would be seen to interfere with this process. The court will have the final say in the appointment of an examiner and we must be careful to respect this.

I am conscious of the anxiety the appointment of an interim examiner to the company concerned creates for the workers involved and their families, as well as their local communities. General employment rights information is available to employers and employees by contacting the workplace relations customer service at 1890 808090 and on its website www.workplacerelations.ie.

I have been informed by Enterprise Ireland that it has had limited engagement with the company concerned. In 2007 the agency paid the company a €4,500 Enterprise Ireland environment management grant. Although Enterprise Ireland does not fund companies to assist them to trade on the domestic market, its potential exporters division was in contact with the company to discuss exporting options and understands it is not currently exporting. The agency, therefore, was not in a position to assist.

Employment retention and creation continue to be our primary objectives and we have worked hard to create the improved economic conditions which will support the maintenance of existing jobs and the creation of new ones. A robust economy capable of capturing new opportunities and sustaining jobs requires a medium to long-term vision. An Action Plan for Jobs is a key pillar of the delivery of that goal and the Government has focused on creating a supportive environment for businesses operating in Ireland. Enterprise development agencies, under the aegis of my Department, have been to the fore in delivering on the commitments set out in the plan.

We consider it important that the impact on employment in County Carlow should be minimised and the State enterprise agencies and the Carlow Local Enterprise Office will continue to make every effort they can to develop new employment opportunities. Enterprise Ireland activity is focused on the creation of new jobs. The LEO has responsibility and it is up and running.

I assure the House we consider it important that the impact on employment in County Carlow minimised and the State enterprise agencies and the Carlow Local Enterprise Office will continue to make every effort that they can to develop new employment opportunities. With regard to new initiatives for job creation, EI activity is focussed on the creation of new jobs. The local enterprise office has responsibility and it is up and running.

In addition to marketing County Carlow for new investment, IDA Ireland works with its existing client companies in the county with a view to encouraging them to grow and embed their business in the county. IDA Ireland has strong relationships with all its client companies in County Carlow and works closely with them to ensure their long-term sustainability and encourage their growth, development and continuing reinvestment in their sites. The primary opportunity for regional locations is in respect of the existing client base and potential further investment.

I am confident that the measures outlined in An Action Plan for Jobs, together with other policies and initiatives being pursued by the State agencies in County Carlow, will continue to support enterprise development and provide employment opportunities. The agencies will continue to work closely with each other and local interests to support an integrated approach to job creation in the county.

Deputy Ann Phelan

I understand the Minister of State's response and at this stage all we can do is rely on the court to appoint an examiner to give the company protection. I hope that will happen. When the Minister returns from his trade mission to Beijing, we would welcome a meeting with him to see what can be done because it is much easier to protect what is there than to try to create something new. Approximately 160 jobs are involved and many people are indirectly employed in the area. We saw this when the sugar plant was closed. The impact of the closure was felt not only in Carlow town but throughout the south east. The dogs on the street were shouting that we had to do something about the sugar industry at the time. I understand we cannot intervene in the context of the courts, but we, as public representatives, who are representing the workers have to be seen to do something. I thank the officials from the Department of Social Protection who met the workers with me in the Dolmen Hotel in Carlow last Friday. I thank the Department for being proactive in outlining their entitlements and updating their files as they would have had to wait for weeks for benefit if the unfortunate had happened.

Deputy Peadar Tóibín

This firm has been negotiating with AIB. I understand its representatives have sought restructuring of the firm's debt, either through a write-down or extending the term of the loan or part of it, but these requests have been refused. That is what has led to the current problem. This is particularly hard to swallow, given that AIB was saved on the back of the tax dollar of every citizen and other companies and individuals such as INM and Mr. Denis O'Brien, etc., have received massive write-downs. None of this process is transparent and it is costing jobs and unfair. It is also not conducive to a healthy, functioning economy. A system is needed to solve the problem of functioning businesses laden with debt. They need to be enabled to separate themselves from the debt. The Minister has pushed responsibility for the future of these jobs to the court, but he is a shareholder in the bank and could use that leverage to determine its policy in the future. He could also create a system to separate the debts of functioning businesses and ensure there was a proper restructuring process. If a business is functioning, making a profit and has orders to beat the band, as the other Deputies said, there is an onus on us to save the functioning element of the business from the debt. That is where the responsibility lies.

Deputy Pat Deering

I thank the Minister of State for his reply, as general as it may have been. I understand why it was general, but the major question that needs to be answered, as I outlined, is why AIB has moved in at this stage and why not last January or February when there were difficulties in the marketplace, the weather was bad and the company could not do the work it is doing currently? Was the bank trying to protect somebody or was another investor waiting for it to intervene? This is a viable company which has been dealing with the bank, as Deputy Peadar Tóibín said. Its representatives have not been putting their heads in the sand for the past few years. My understanding is that in the past six years they have repaid €19 million to AIB. They did not put their heads in the sand and tell it to go away. They have been up-front with it. It is important that the jobs are protected and that we get answers as to why the bank moved in at the busiest time of the year when the order books are full and a great deal of work is ongoing and did not do so last spring.

Deputy John Perry

I appreciate the concerns of all the Deputies and everyone involved, but the court will have the final say in the appointment of an examiner and we must be careful to respect this. The High Court has fixed 26 June for the hearing of the petition in order that notice be given to the interested parties. We must allow this process to happen. Clearly, the contributions of the Deputies and due diligence relating to the company and so on will be apparent in the court's judgment. The court has the final say in the appointment of an examiner. There will then be 100 days for everybody to work and see what can happen. Ultimately, the Government has no role in the matter whatsoever. It is not involved in the day-to-day operations of a bank; that is not our job either. The court will have the final say in the appointment of an examiner and all we can hope is that every consideration will be given to the company. The fate of the jobs and whatever else will be decided during the 100 day period of reflection. The files will be considered and, ultimately, it will be the call of the judge.

Jobs Protection

Deputy Mattie McGrath

Ba maith liom buíchas a ghabháil leis an Cheann Comhairle. I thank him for allowing me to raise this important issue. Bulmers, which is owned by C&C Group, has a proud heritage, history and association with Clonmel, south Tipperary and west Waterford.

It is a wonderful company, which employed 600 people at its peak. I have fond memories of travelling to the vats in Clonmel as a buachaill óg with loads of apples, hand picked by men and children, and the wonderful aroma that descended on Clonmel from those vats during September and October. Production moved out to the present site outside the town and the company was doing fine and gave wonderful employment and had a superb workforce and legacy over the years. Every summer it provided hundreds of summer jobs.

The situation has, unfortunately, taken a major turn for the worse. Since the takeover by C&C Group, a cloud has descended on Bulmers. There was major expansion, which frightened people who drove by, but, unfortunately, it has all gone wrong. Major corrections have been made by a sterling workforce from 2007 until now, but the workers are continually being asked for more. There has been a complete lack of engagement with public representatives by the company's managing director and others. Despite the fact that we were previously brought down for tours, meetings and trips and kept abreast of issues to be dealt with, we cannot get access. What are they hiding?

I will quote some very worrying figures. Sales of Hornsby's, Magners and Woodchuck are down 40%, 17% and 1%, respectively. Although Bulmers in Clonmel contributed almost €40 million to the company's profits of €126.7 million, the workers are being asked for another €1 million in cuts. The company is trying to introduce a standardised hours system, whereby people would have to work all their hours during the summer months, when they have to be away from their families and neglect them, and then may be be idle during the winter. The union is fighting this, but is not getting much support.

Bulmers has made wonderful profits and when it took over Gleesons some years ago my colleague, Deputy Michael Lowry, raised the issue here and we received all kinds of assurances. However, 30 jobs from that plant have been moved to Belfast and the equivalent of the IDA in Northern Ireland gave handsome grants to C&C to move jobs from Dublin and Tipperary in the Republic of Ireland to Northern Ireland. It is a crying shame and it is time to wake up and smell the coffee and demand meetings with the company, which wants a further €1 million in cuts, despite the many sacrifices the workers have made.

The American market has collapsed. The market in Great Britain is collapsing. UK cider sales have fallen by 13% and profits have fallen by 29% for the last year. Magners are still sponsoring Celtic Football Club, which I have no problem with. Bulmers was always good about sponsoring local causes, but it has been dwindling and the goodwill is disappearing. I question the ability of the CEO and management to do the job. On 13 May, production moved from Clonmel to Shepton Mallet in the United Kingdom. Nothing has gone through that plant but water for a test and it lies idle with nothing being made. There are pictures on the company's website to prove this. Although I am not against the counties north of the Border, why should Northern Ireland offer grants to companies to take jobs from the Republic and go there?

There is uncertainty, but Borrisoleigh is playing its part with a good, indigenous company, Gleeson Group. Two indigenous companies that have served Tipperary well for generations are being taken over by this all-encompassing C&C Group and we are carrying the other plants and the failures in America. It will take 46 years for the company to turn a profit from the investments it has made there. Why should Clonmel be forced to support it? I ask the Minister of State and the Minister, Deputy Richard Bruton, to visit Clonmel - and the United Kingdom, if necessary, as the company will not meet on our turf - to meet the company management, get reassurances and demand answers because the workers are not getting fair play, and neither are the public representatives of south Tipperary.

Deputy John Perry

I thank the Deputy for raising the matter. I am very conscious of the anxiety that any threat to the workforce in C&C Group's operations in Clonmel would create for the workers, their families and the local community. In terms of safeguarding the rights of the employees, Ireland has a robust suite of employment rights legislation. For employees who are concerned about the safety of their jobs, Ireland's body of employment rights offers extensive protections to employees, including the Protections of Employment Act 1977, which provides for a process of information and consultation between the employer and the employee representatives; the Minimum Notice and Terms of Employment Acts 1973 to 2005, which give employees entitlements to specified notice periods or payment in lieu of notice; the Unfair Dismissals Acts 1977 to 2007; and the Redundancy Payments Act which is administered by the Minister for Social Protection.

While the plan of the company concerned is a commercial matter for the company, the group's commitment to invest has been demonstrated by its acquisitions in Ireland in recent years. It has just released results for the year ending 28 February 2014, with profits up 30%, of which 75% is represented by Ireland and Scotland, mainly by Bulmers in Ireland and Tennants in Scotland. The company is launching a new craft beer, with the plant currently being commissioned, and is nearing production in Clonmel. The group is a key client for Enterprise Ireland and has been provided with research and development and other supports. Enterprise Ireland visited the company last month.

Employment retention and creation continues to be our primary objective and we have been working hard to create the improved economic conditions which will support the maintenance of existing jobs and the creation of new ones. While Ireland's competitiveness has improved in recent years, we must continue to do more, to ensure these competitiveness gains are not eroded as the economy begins to recover and that we continue to address the structural imbalances which had built up over the lifetime of the previous Government. Through An Action Plan for Jobs 2012 and 2013, the Government has focused on measures aimed at restoring our competitiveness and creating a supportive environment for businesses operating in Ireland.

The Government recently launched An Action Plan for Jobs 2014 which contains a range of specific measures which will build on the progress made in recent years. These measures include a review of the key competitiveness issues for business, particularly cost competitiveness, and taking actions on key challenges identified; a review of key challenges in terms of ease of doing business in Ireland and taking action on the issues identified; and quarterly reporting to Government on competitiveness issues and progress in addressing these issues. The implementation of these actions, combined with the Government's exit from the troika programme and its return to international funding markets, will play a key role in improving our competitiveness further and realising our ambition of making Ireland the best small country in which to do business. The enterprise development agencies, under the aegis of my Department, have been to the fore in delivering on the commitments set out in the action plans for jobs and continue to ensure businesses can maximise their contribution to economic recovery and employment growth.

It is very important that any adverse impact on employment creation and maintenance from any source in Clonmel is minimised and the State enterprise agencies and the local enterprise office, LEO, will continue to make every effort they can to develop new employment opportunities for County Tipperary. In terms of new initiatives for job creation, Enterprise Ireland's activity is focused on the creation of new jobs through continuing to work with established companies in its portfolio. The agency is also supporting entrepreneurs in manufacturing and internationally traded services companies. The agency works toward enhancing the innovation capability in its client companies through the support of research. The new LEO structure promotes entrepreneurship and self-help, and LEOs are now the first-stop-shops for those starting a new business. The Tipperary LEO is the local hub for enterprise support, delivering a comprehensive service. Anyone in Clonmel seeking assistance with a small or start-up business should contact it.

IDA Ireland works with its existing client companies in the county with a view to encouraging them to grow and embed their business in the county. The primary opportunity for regional locations is in respect of the existing client base and potential further investment opportunities from that base. My colleague, the Minister, Deputy Richard Bruton, is determined to ensure that Ireland can continue and he is on a trade mission this week. I listened very actively to the Deputy's concerns. I am confident that the measures outlined in An Action Plan for Jobs 2014, together with other policies and initiatives being pursued by the State agencies and the County Tipperary LEO, will continue to support enterprise development and provide employment opportunities. The State agencies will continue to work closely with each other, and with local interests, to support an integrated approach to job creation in Clonmel.

Deputy Mattie McGrath

I am very disappointed with the answer. The best the Minister of State can do, given that he is a small businessman himself, is come here and read out facts and figures on a policy we know that is failing. This is an indigenous company with a proud record. The Minister of State is coming to Tipperary next month - beidh fáilte is fiche roimhe - and I ask him to visit the plant to see it for himself. He mentioned craft beer and the new promotion. There are two people employed there, which is a sham and a scam. The figures are there for all to see. The profits are measured per HL. Bulmers makes €69 per HL; Gleesons, €2; UK cider, €19; UK Tennants, €27; and international, €29. At €69, it is a non-argument.

It is awful to have to listen to the official reply written for the Minister of State. Shame on him. This is a wonderful company which is disappearing before our eyes. Workers are being bullied. Annualised hours is what the company wants them to have, which means working all the hours of the summer, in spite of the four shifts they have to work. The workers have been top class and given great commitment, but they are not being engaged with. In fact, there are confidentiality clauses and they are being bullied and intimidated, which never happened before. I ask the Minister of State to talk to the group CEO, Mr. Glancey, as he will not talk to us.

The Minister of State mentioned the new beer, which is to be called the 1650 beer. Does he know what happened in that year? It was the year Oliver Cromwell came to Clonmel and, thank God, he was run out of it, but now we have worse. The company has the cheek and audacity to celebrate it as the "1650 beer". It shows the respect it has for Clonmel, south Tipperary, the Department of Jobs, Enterprise and Innovation and everybody else. It has called the beer after the events of the unfortunate day on which Oliver Cromwell laid siege to Clonmel. He was resisted and now we must try to resist the C&C moguls who have no interest in a good company.

The Minister of State mentioned the profit figures. Of the €127 million, €40 million was made in Clonmel. The book should be opened and closed at that figure. It is just milking the company with two employees in the craft brewery when there were 600 before. There are now 150, while 50 jobs are under threat if the line is moved to Scotland. The company has invested in moving the line and has pictures of it on a website, notwithstanding the fact that nothing has gone through it but air and water as a test. It is trying make itself popular again.

I call in the House and through the media for talks with the shareholders in the company to communicate the wreckage the CEO is making of it. He is trying to emulate Oliver Cromwell and must be resisted. To call it the 1650 beer is the ultimate insult. I hope the Minister of State will talk to the Minister, Deputy Richard Bruton, and immediately seek talks.

Never mind the reference to Cromwell. The Deputy is based in Clonmel and should deal with that history appropriately and without referring to the present. I understand the company is launching a new craft beer and that a plant is being commissioned. The Deputy should be assured that IDA Ireland, Enterprise Ireland and other State agencies will do everything they can to work with the company.

Water Quality

Deputy Barry Cowen

In the past few months the House has witnessed a series of revelations on the Government's plans to introduce water charges and establish what has become a super quango. The exorbitant consultancy costs, the bonus-driven culture, the failure to target investment and infrastructure and the introduction of charges when household incomes are under unprecedented pressure have constituted chronic mismanagement by the Government.

Over the weekend, reports on the threat posed by dangerous levels of lead in water pipes in schools, homes and businesses underlined further the need for investment in the water network. Schools such as Araglin national school in Cork, Garrabane national school in Waterford and Easkey secondary school in Sligo have all been contaminated with excessive levels of lead. EPA surveys across several counties exposed excessive lead levels, with concerns rising in the light of the new stricter requirements. Reports indicate that based on current rates some 55,000 homes may have lead pipes on their premises. The threat of lead water poisoning is a real health danger to homes, schools and businesses consuming contaminated water. Yesterday Irish Water spokespersons dismissed the concerns stating the issue had arisen in 2012 and, essentially, had nothing to do with them as it occurred on private property. They washed their hands of the issue. Irish Water has stated that in cases where lead is detected, it will alert the customer and simply provide HSE advice for households and premises affected. As far as it is concerned, it is a matter for the homeowner to fix the problem. It will cost approximately €1,000 to fix it.

There are two issues I would like the Minister to address. First, the Government has committed to providing a first-fix policy. This means that problems with the pipes from the public mains to the household - essentially the pipes within the household's property - will be fixed for free by the Government. The first-fix policy was designed to help to ease the passage of water charges on the family home. Irish Water's claims that it is none of its business does not stand up against the Government's commitment. Homeowners whose water supply is rendered undrinkable need this support to ensure they get a service that delivers. In the coming weeks when the water charges strategy is fleshed out and confirmed, the first-fix policy should encompass households affected by dangerous lead levels.

The second issue I call on the Minister to address is that of charging for undrinkable water. The water charges consultation period undertaken by the CER in the next few weeks is an opportunity for the Government to ensure people do not have to pay for a service which does not deliver. In places such as Boyle, where people are faced with boiled water notices, there are legitimate questions as to why they have to pay for a service that clearly does not do what it should. Lead levels pose a similar question. Will the Government ensure households affected by lead levels are not forced to bear the burden of water charges when they are reliant on bottled water and other sources to keep themselves going?

It is vital that both issues are fully addressed by the Minister. Amid spiralling costs in the establishment of Irish Water, we need to know that the Government is getting something for the money it is pouring into it. The Minister must, therefore, inform the House of his plans and those of Irish Water and his response to these very serious issues which have arisen not only in recent days but which have been obvious to many in recent months. I ask the Minister to inform the House of how he intends to deal with them.

Minister for the Environment, Community and Local Government (Deputy Phil Hogan)

I thank the Deputy for raising this important matter. I am glad of the opportunity to reassure the House and the public on a number of points relating to water quality, particularly lead exceedances in water supplies. I want the public to be assured that Irish Water is producing lead-free water. It is also producing water at an appropriate pH level to minimise the ability of water to dissolve lead. The public water network is lead-free.

The issue of lead pipes creating a potential risk to water quality arises from communication and service pipes. The communication pipe is Irish Water's responsibility and typically 10% of the total length of the service pipe. There are also incidences of lead piping in what are known as common or shared backyard services. These are often located in private gardens and, in some cases, under building extensions. The only replacement remedy is the provision of a new water main in the street, as well as entirely new individual service pipes from the street to the back of each house. Before one can disconnect the common backyard service, every property has to agree to the new connections. Irish Water has a programme to address this category, reflecting the scale and cost of the work.

Lead exceedances in water is a serious matter and Irish Water is implementing a robust and appropriate water quality monitoring programme, as required under its responsibilities as a national water services authority. This year, it will take and test 250,000 samples of water. Where an exceedance occurs, as has been identified in 31 cases this year, Irish Water notifies the customer and provides health advice from the HSE. Irish Water data suggest the problem relates to less than 5% of houses.

In addition to ensuring that mains are lead-free and implementing mains rehabilitation for backyard services, Irish Water is gaining valuable insight into the state of the network and the location of lead service connections through the domestic metering programme. Irish Water is recording the nature of the network, including lead, at every property that it is metering, thus providing important data for asset management.

The first-fix scheme, details of which will be announced shortly, will provide many benefits, including vital assistance to households in tackling customer-side leakage in a speedy manner. The scheme will contribute to reducing the unacceptably high national leakage rate of 40% or more. While the first-fix scheme is primarily a water conservation measure, it will also address some of the lead connection pipes on private property.

The spotlight on water quality issues is a reminder of the challenges facing our public water services sector and the need to address deficiencies relating to quality, environmental compliance and leakage. By establishing a national utility which can deliver water services efficiently and effectively and with a national approach, and by increasing investment in our water and waste water infrastructure through a more sustainable funding model for water, we can address these deficiencies and provide a secure supply of high-quality water for society and the economy into the future.

Deputy Barry Cowen

I thank the Minister. I note much of what has been said about the ongoing process of investigation and reporting being carried out by Irish Water in addition to the information already in the local authority domain. The Minister has mentioned specifically that Irish Water suggests that the problem relating to lead piping and backyard systems affects 5% of houses, a substantial number which will require much investment. I refer to the commitment given by the Government before the CER was charged with responsibility in the current ongoing consultation process. I expect the process will ultimately recommend that the Government take cognisance of the fact that where water is undrinkable - in Boyle, among other locations - homeowners should not be asked to pay exorbitant charges.

The Minister says the first-fix scheme is primarily a water conservation measure, but it will also deal with some of the lead connection pipes on private property. Can the Minister expand on that point and be more specific? The point on which I sought clarity relates specifically to the first-fix policy to which the Government committed. I expect the commitment is broad in the sense that where householders are informed of the deficiency and it is confirmed by the HSE that there is a contamination issue, rectification is necessary and works must be carried out. It is important that the works are carried out as soon as possible, but the costs associated with it are something we believed the Government would contribute to. For the Minister to say that the Government will address some of the lead connection pipes on private property is commendable in the first instance, but it must go much further than this. I ask the Minister to expand on the point and give assurance and commitment to those affected in such a way that the first-fix policy the Government committed to will include people in the unfortunate situation whereby they are informed by the Irish Water or the HSE of a problem that must rectified.

Deputy Phil Hogan

It is interesting that every problem that happens within private property is the responsibility of the State. Where there is a leaking tap or a problem with toilets, the Deputy advocates that the State picks up the tab.

Deputy Barry Cowen

I am talking about lead.

Deputy Phil Hogan

The Deputy has advocated that, on people's private property and within the house, every leak should be resolved by the State. It would cost an absolute fortune to the taxpayer and I am interested to know the level of income tax or general taxation that would be required to meet that bill. We are certainly not going to do that as part of the first-fix policy.

Some €25 million is being spent in County Roscommon to deal with water quality problems that have been neglected for years, and the issue will be resolved for 50% of the population. It is interesting to note that despite all the talk from Fianna Fáil and Sinn Féin, not one member of those parties made a submission to the CER as part of the public consultation process. It is all talk and no action from the Opposition. We are doing the business for the people of Roscommon and other parts of the country but Fianna Fáil and Sinn Féin made no submission with regard to water quality, the boil water notices or their concerns. We will get on with the job in order that we have a public water utility that is able to borrow money on the market to double the level of investment and deal with the under-investment in water and wastewater facilities that we inherited from the Fianna Fáil-led Government. We will discharge our obligations under the water regulations and I am glad to assure the House that no risk to public health arises from the issues in the media yesterday. Deputy Cowen is led by whatever he reads in the newspapers.

Special Educational Needs Service Provision

Deputy James Bannon

We will shortly have the largest school in the midlands at St. Mary's in Edgeworthstown, County Longford. My concern has always been for the care and well-being of children. My genuine support for improvement of substandard facilities is well recognised across Longford-Westmeath. I have supported staff and services at every possible opportunity, even in the very difficult circumstances arising from Government and HSE cutbacks. Any curtailment of services at the school would be a major threat to the welfare of the community, and I understand the extreme anxiety caused by the notice that the school has received regarding the closure of one of the autism spectrum disorder, ASD, classes in September. The parents and teachers were so annoyed at this decision that they held a public meeting on Thursday, 29 May to outline their concerns. On the same day, I received a letter from the Minister of State, Deputy Ciarán Cannon, stating:

There are currently 3 children attending the Early intervention unit in Edgeworthstown and it is my understanding that those children will be leaving the unit at end of this school year. The NCSE has consulted with both the HSE and the local SENO to determine if there are any other children in this area who might require such early intervention support and have concluded that, for now, there are none.

On the night of the meeting called by the school, the principle disputed the facts and put in writing a reply stating there were three children attending the early intervention unit at the school but only two of these children had completed the early intervention programme. The SENO, when visiting the school on 2 May, stated that the third child was to be placed in a junior class in September 2014. There was no consultation with the parent, who wants her child to remain in the preschool class for a second year, as is the practice in such classes. Only two children are ready to move up to formal education.

A parent who lives in Edgeworthstown visited the school on 29 May. Her child was diagnosed with ASD the day before the formal report, which I understand is with the Department, was issued, on 15 June. Another set of parents who have a child in the ASD early intervention class announced publicly at the meeting that their second child had also been diagnosed with ASD and they wanted their child to attend the early intervention class in Edgeworthstown. Another set of parents who visited the school three weeks ago have two children diagnosed with ASD, one of whom receives home tuition but is still eligible to attend the early intervention class in September.

A parent wishes to enrol her child in the early intervention class from September. It had been her intention to enrol her child in a mainstream class, but she has now realised that the early intervention class would be more suitable for her. The child is not yet toilet trained and has feeding difficulties and mainstream schooling is not yet suitable for her education.

Following the closure, between the schools in Edgeworthstown and Killoe there will be 36 ASD places. If the closure goes ahead, there will only be two available places in Edgeworthstown and three in Killoe. However, the NCSE does not take into account the fact that parents may not want to enrol their children in Killoe, as they live in the Edgeworthstown area and want their children to be fully integrated in the community there. Also, it is approximately 20 km from Edgeworthstown to Killoe.

A demand for ASD classes has recurred in St. Mary's. It never went away, but the diagnosis process takes time. Autism is often referred to as the "hidden disability" because those on the autistic spectrum show no significant physical differences from their peers; rather, it is their behaviour that marks them out as being different. The number of children diagnosed with autism is rising. The current rate of autism in Ireland is 1:100.

Minister of State at the Department of Education and Skills (Deputy Ciarán Cannon)

I thank the Deputy for raising this issue as it gives me an opportunity to clarify to the House the position on the special class in the school in question. The Deputy will be aware that the Government is committed to ensuring all children with special educational needs, including those with autism, can have access to an education appropriate to their needs, preferably in school settings through the primary and post-primary school network. Such placements facilitate access to individualised education programmes which may draw from a range of appropriate educational interventions, delivered by fully qualified professional teachers, with the support of special needs assistants and the appropriate school curriculum.

The Deputy will also be aware that the National Council for Special Education, NCSE, is responsible, through its network of local special educational needs organisers, SENOs, for allocating resource teachers and special needs assistants to schools to support students with special educational needs, including autism. It is also its role to make appropriate arrangements to establish special classes in schools in communities where the need for such classes has been identified.

Children with autism can enrol in an early intervention class from the age of three years and, if they are assessed at a younger age, home tuition can be provided from the age of two and a half. Special classes within mainstream schools are intended for children who, by virtue of their level of special educational needs, cannot reasonably be educated in a mainstream class setting but who can still attend their local school in a special class with a lower pupil-teacher ratio of 6:1 and SNA support. The total number of special classes for children with special educational needs, including autism, in mainstream schools throughout the country at the end of 2013 was 737, of which 564 were in primary schools and 173 in post-primary schools. Some 74 are early intervention classes which have been established for younger children with autism.

The NCSE has advised my Department that there are 17 children in four special classes for autism in the school referred to by the Deputy. One of the four classes is an early intervention class in which children from the age of three years can be enrolled. From September, the children in the early intervention class will move up to the autism special classes in the school. On this basis, the early intervention class will be suppressed. The remaining three special classes are not full. There are, in fact, two special class places available.

While the NCSE is aware that children in the area are being assessed, there is no indication at this time that an early intervention class for children who have completed assessments will be required from September. The NCSE, through the local SENO, will continue to liaise with the HSE to determine if further special class provision is required. If additional provision is required, the NCSE will establish additional special classes to meet the need for such classes in the local area.

Deputy James Bannon

I thank the Minister of State for his response. While appreciating that, in theory, the current enrolment does not warrant four classes, the level of need and support required has not been taken into account. In the light of the facts I have presented, I would appreciate it if the Minister of State reviewed the situation in Edgeworthstown because there is a conflict between what he has said and what the principal of the school has said. This was outlined to us at a public meeting on 29 May. I understand and have provided the facts that there are a number of children who have since come on board. Also, applications to the school are ongoing. It is always in June, July and August that the school receives new applications; perhaps, therefore, the Department has acted in haste. It is welcome that the Minister of State has said that if there is a need, the school will not lose the teacher and class in Edgeworthstown. Perhaps, in the light of the facts I have brought to the attention of the House, he will review the position as soon as possible. Parents and teachers tell me they can prove the preschool facility is viable. I, therefore, call for the post to be reinstated.

Deputy Ciarán Cannon

I thank the Deputy for his contribution. To clarify, the early intervention class can only be reinstated on the basis that the SENO, the only person operating in the region with the expertise to determine the special needs requirements of each child in the area, in liaison and consultation with the HSE, determines there are sufficient children in the area who wish to attend the school and avail of an early intervention service. If it transpires between now and September that sufficient children have been identified and there is sufficient demand, the NCSE, as was always the case, will consider reopening the class. I do not believe anybody acted in haste. As of now, the SENO has yet to identify any child that will require such a service. That is not to say a need may not be established between now and September. If it is, the NCSE and the Department have committed unequivocally to meeting it.

Dáil Éireann debate - Tuesday, 24 Jun 2014