Dáil Éireann debate -
Thursday, 8 Oct 2015

Vol. 892 No. 2

Topical Issue Debate

Court Accommodation Provision

Deputy Andrew Doyle

I am grateful for the opportunity to address this ongoing need for the development of a four-court campus in Wicklow town. By way of background, I have been writing about this issue since 2011. In February 2013, I and my four colleagues wrote to the then Minister of State, Brian Hayes, Mr. Brendan Ryan at the office of the Courts Service and Mr. Gerry Nugent. We have also written to the former Minister for Justice and Equality, Deputy Shatter, and the current Minister for Justice and Equality, Deputy Fitzgerald. Nine or ten years ago, a decision was taken by the Courts Service to develop a four-court campus in Wicklow town at the location of the old courts. One of the two courts already there is Victorian and has been used for filming and advertisements through the offices of Wicklow Film Commission.

Wicklow town is the county administrative town and to this end the Courts Service purchased the adjacent library with a view to expansion. The economic conditions which have since overwhelmed everybody, in particular public bodies such as the Courts Service, have meant this has been put on the long finger, although it remains an objective of the Courts Service to proceed. As it stands, there has been a gradual movement of court services from Wicklow to Bray, which has a facility that is expensive and totally inadequate. The reason it is expensive is a legacy issue about which we cannot do much. It is not a long-term option for the county's court services to remain in Bray. Whatever about having a local district court there, this is as much as it should be expected to provide.

I tabled a parliamentary question to the Minister because I felt the capital development programme will mean many people will make requests, but if we are not in and if we do not keep the pressure on, we certainly will not be successful. The response I received stated that while the Courts Service has not been in a position in recent years to proceed with its plans for Wicklow courthouse, it is committed to the development of the courthouse.

It is reviewing its capital investment proposals in light of the recent publication of Building on Recovery: Infrastructure and Capital Investment 2016-2021.

I urge that this project be put on a priority list. We have waited eight years since the development process was stopped and I remember speaking at the time to the then county registrar, who said that they had all the required property adjacent to the court and they could proceed with the project in the planning stage. It is a shame as this could complement Wicklow Gaol, which is now a famous tourist attraction. This could develop the tourist offering in that part of the town. Historically, people were arrested, brought to the gaol and court before usually being sentenced to penal servitude in Van Diemen's Land. They were moved to either Dún Laoghaire or Cobh for deportation. There is a history and, in addition to the other reasons I outlined, it is why I tabled this matter.

Minister of State at the Department of the Environment, Community and Local Government (Deputy Paudie Coffey)

On behalf of the Minister for Justice and Equality, I thank the Deputy for raising the matter. The Minister appreciates the Deputy's interest in the redevelopment of Wicklow courthouse.

As the Deputy may be aware, under the provisions of the Courts Service Act 1998, management of the courts is the responsibility of the Courts Service. The Act provides that the Courts Service is independent in the performance of its functions, which include the provision, maintenance and management of court buildings, and the Minister has no role in the matter. The Deputy will be aware that Wicklow courthouse has been closed for a number of years for health and safety reasons due to the poor condition of the building. However, the Minister has had inquiries made and the Courts Service has informed her that it has been planning for the redevelopment of Wicklow courthouse.

In 2008, a portion of land to the rear and side of Wicklow courthouse was purchased by the Courts Service from Wicklow County Council with a view to the future development of the courthouse. The courthouse building itself was vested by the Courts Service in October 2009. The building and surrounding lands are now in the ownership of the Courts Service. The Courts Service has also informed the Minister that expenditure on buildings, including leases, maintenance and related expenditure in Wicklow town between 2004 and 2012, was €2.455 million. This includes work on both Wicklow courthouse and the Wicklow Circuit Court office. Of this figure, €2.05 million was spent to acquire the site adjacent to the courthouse.

The Courts Service has not been in a position in recent years to proceed with plans for the redevelopment of Wicklow courthouse but it is committed to redeveloping and reopening the courthouse in Wicklow town. The Courts Service is currently reviewing its capital investment proposals in the light of the recent publication of Building on Recovery: Infrastructure and Capital Investment 2016-2021. The Minister has welcomed the unprecedented allocation of €875 million in capital funding for the justice sector, along with approval for further public private partnership projects in respect of An Garda Síochána and the Courts Service. The strategic objectives for the planned investment in the justice sector as outlined in the Government capital plan 2016-2021 include a new public private partnership to deliver on the Government’s proposals for a dedicated and integrated family law and children's courts building, together with additional court rooms for the Supreme Court and other courts offices at a site at Hammond Lane in Dublin.

The capital framework also provides for the construction of seven courthouses, which are included in the existing courts public private partnership building project. The locations are Mullingar, Limerick, Cork, Letterkenny, Drogheda, Wexford and Waterford. In addition, €10 million is being provided in Exchequer funding for courts building refurbishment. These investments will deliver significant improvement to the way public services are delivered in the justice sector.

On behalf of the Minister for Justice and Equality, I thank the Deputy for raising this important matter. The Minister appreciates his interest in the administration of justice in Wicklow. I am sure the Deputy will appreciate that, given the recent announcement of the Government’s capital plan, it is not possible yet to say what plans will be put in place for the redevelopment of Wicklow town courthouse.

Deputy Andrew Doyle

I will hone in on the word "yet". I welcome the Minister of State, Deputy Simon Harris. On 28 February 2013, five Wicklow Deputies collectively wrote about this matter, even though some of the Deputies are located in the northern part of the county, including Bray. There was no vested interest but it was seen as the right thing to do. Nobody can argue with the idea that Wicklow courthouse is an iconic building like Wicklow Gaol, and it is probably one of the stand-out features of the town's architecture. It needs to be developed.

I have not even made reference to what it costs in maintenance to keep the facility from decaying. I do not know what is the figure but I did ask the Courts Service if it could give me an idea at one stage. Perhaps I would not like to know, as the money is going on heating and lighting to keep the place aired, which is a shame. I decided to raise this Topical Issue on foot of the capital investment plan announcements in order to get in early. The €875 million is very welcome as it is a very significant figure. We would not even need 1% of it but we do need a portion. I ask that this be kept high on the Minister's agenda.

Deputy Paudie Coffey

I acknowledge that Deputy Doyle has put down what is a very important Topical Issue. I acknowledge the efforts of Deputy Doyle and the Minister of State, Deputy Simon Harris, on this issue. I encourage further engagement with the Courts Service regarding the capital plan and the allocation of resources that we have available. As I explained, it is important to note that the Courts Service has stated its commitment to redeveloping and reopening Wicklow town courthouse. The courthouse building and surrounding lands are in the ownership of the Courts Service, although it was, unfortunately, not in a position in recent years to proceed with its plans. However, it is reviewing its capital investment proposals now in light of the recent publication of the Building on Recovery: Infrastructure and Capital Investment 2016-2021, to which I have referred.

The Minister has been assured that the matter will be kept under review, having regard to the available resources. We now have opportunities that were not available before and I am sure Deputy Doyle and his colleague, the Minister of State, Deputy Harris, will be pursuing this vigorously and engaging with the Courts Service to achieve their objectives.

Credit Union Regulation

Deputy Robert Dowds

I regret that the Minister for Finance is not here but I hope the Minister of State, Deputy Harris-----

Deputy Willie Penrose

He is very agreeable.

Deputy Robert Dowds

-----will give a full account to the Minister because there is much frustration in the credit union movement about this issue. As the Minister for Finance knows, credit unions are a major pillar of towns and cities in this country, providing a very important service for people through saving and lending facilities.

There is very considerable frustration about the restrictions through regulations being applied to credit unions, and I will focus on two of those. The new regulations will restrict members from saving more than €100,000 in total, compared with the current system, which allows members save up to €100,000 in shares and a further €100,000 in deposits. I appreciate that this is probably not an important matter for newer members but it is important for older members. They do not want to have to change their banking institution later in life but such people are being told that they must remove savings over €100,000 and move the money to another financial institution. It is a further insult that these people will have to deal with banking institutions that really got this country into trouble. Most of the credit unions exhibited exemplary behaviour and where they had to be bailed out, the figure was approximately €20 million.

As another example, under regulation 16 there are very considerable issues relating to the definition of a house loan. As the Minister of State, Deputy Harris, and undoubtedly the Minister, Deputy Noonan, realise, credit unions very much know their people.

They know what is safe to lend people and what is not safe to lend people and they should not be unnecessarily restricted in their lending. As a measure of what credit unions can be and how they are viewed elsewhere, I understand that some time ago a delegation from Latvia came. They were really impressed with the whole idea of credit unions and, as far as I know, they are trying to roll out something like that in Latvia. I am asking that the Minister would go into discussion with credit unions and, whatever else he does, avoid signing this most recent regulation, Consultation Paper 88, CP88. Can we have proper discussion between both sides on this?

Deputy Willie Penrose

Across the Republic of Ireland there are 2.89 million members in 352 credit unions. Credit union members have in excess of €11 billion in savings, €3.5 billion in loans and more than €13 billion in total assets. Credit unions are not only a major economic force, they are a social movement throughout this country. The Labour Party has always been clear about its role: economic recovery is for a social purpose. Credit unions have an ambitious developmental agenda. They want to better serve their members and their communities. They are hamstrung and frustrated by what they cannot do, but they have a positive developmental agenda to do much more.

Like Deputies on all sides of the House, I have been lobbied by the Irish League of Credit Unions. Areas I have identified where credit unions could do much more include micro-credit, lending small amounts to the most vulnerable, who are pushed into the maw of moneylenders; making significant amounts of money available to finance social housing from the €8 billion currently held in investments; and lending to small and micro-businesses. These are not just platitudes from the credit unions. They delivered a cogent, well thought-out policy platform in their Six Strategic Steps policy document, which has been backed up with a detailed policy document on how credit union resources could effectively support delivery of social housing. The Ministers, Deputies Alan Kelly and Paudie Coffey, have that proposal on their desk and it has now also been sent to the Minister for Finance. This is not rhetoric. They have fleshed out in great detail this worthwhile proposal. The Irish League of Credit Unions proposes that its credit unions would form a special purpose vehicle, which would either invest in a State-owned financial vehicle that would lend to approved housing bodies to fund the development of social housing or would lend directly to approved housing bodies to fund the development of social housing. Credit unions have also delivered pilot schemes for micro-credit programmes led by the Tánaiste and Minister of State, Deputy Humphreys, in the Department of Social Protection. I hope this will be available throughout the countryside soon.

Credit unions are stepping up to the plate with ideas and enthusiasm. Where they can find willing partners, they are participating enthusiastically. If credit unions are determined and ambitious, they are also hamstrung by inappropriate, one-size-fits-all regulation. CP88 is an acronym that will not mean much to most people, but it is the latest in a long line of inappropriate, one-size-fits-all regulation that is preventing credit unions from delivering what is being demanded. Loan-to-asset levels have fallen movement-wide from 44% in 2010 to 27% in 2015. During this period, the movement has maintained its members' savings. As a result, significant levels of members' funds are held in investment-related products earning a low or negative yield, such as Government bonds, or put to unproductive purposes. This also exposes significant levels of members' funds to market risk, as income levels are under increased margin pressure due to a prolonged low interest rate environment. Currently there is over €8 billion in credit union accounts. The extraordinary consequence of the regulation of credit unions is they are, first, being severely hampered in their capacity to lend money for viable prudent purposes. Second, the Central Bank and the Registry of Credit Unions are regulating credit unions so as to ensure that local branches close, leaving communities in the lurch. Credit unions stay open to serve the communities that founded them. The same credit unions are at that stage being forced by the same regulator to put the credit union members' savings, which they are prevented from lending, into the banks-----

An Leas-Cheann Comhairle

I thank the Deputy.

Deputy Willie Penrose

-----that have closed up and that have left the same community to fend for itself. The very banks that put us down the tubes are now getting money from the credit unions. One could not make it up. The consequence of the current regulations around credit union investment is that the vast majority of credit union funds are currently held in bank deposits, earning even lower returns.

Minor changes to these regulations would free up credit unions to invest in more socially productive initiatives, such as social housing, but also have a positive return on investments. The Minister for Finance has repeatedly said that his role "is to ensure the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions". The bottom line is that the regulatory framework for credit unions is not effective and is effectively being operated for the benefit of banks. Critically, the International Credit Union Regulators' Network, ICURN, credit union peer review report on the Central Bank's performance of its regulatory functions in relation to credit unions, published on 9 September, stated, "We also suggest that consideration be given by the relevant authority to directing a closely defined, limited review to evaluate the implementation of the original recommendation of the [Commission on Credit Unions] and to propose any revisions or measures thought necessary in the light of that experience". Surely that is the Minister's way out.

Minister of State at the Department of Finance (Deputy Simon Harris)

I thank Deputies Dowd and Penrose for raising this important issue. I know they both feel passionately about this matter and raise it regularly here on the floor of Dáil Éireann. I thank them for the opportunity to respond to a number of important issues they have raised on behalf of my colleague, the Minister for Finance, Deputy Noonan.

Credit unions in Ireland have a-----

Deputy Robert Dowds

Could we have a copy of the Minister of State's script?

Deputy Simon Harris

I am sure that will be made available in a moment. Credit unions in Ireland have a legislative framework designed specifically for credit unions in the Credit Union Act 1997, and the Credit Union and Co-operation with Overseas Regulators Act 2012 which updates the 1997 Act. The Credit Union and Co-operation with Overseas Regulators Act 2012 was signed into law by the President of Ireland on 19 December 2012. Following on from that there was an implementation plan put in place which was agreed by all stakeholders. It was agreed that such a plan was necessary for the coherent and timely commencement of all sections of the Act.

Credit unions are regulated and supervised by the Registrar of Credit Unions at the Central Bank, who is the independent regulator for credit unions. Within her independent regulatory discretion, the registrar acts to support the prudential soundness of individual credit unions, to maintain sector stability and to protect the savings of credit union members. The Minister for Finance's role is to ensure that the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions.

The outstanding sections of the 2012 Act relate to savings, borrowing, lending, investments, reserves and liquidity. The Minister has been informed by the Central Bank that the draft regulations set out in CP88, to which both Deputies referred, will be introduced on commencement of the remaining sections of the 2012 Act at end December 2015. The regulations will replace and, where appropriate, amend a number of requirements that currently exist in legislation and guidance. Additional requirements have also been included in the regulations, where necessary, to strengthen the regulatory framework.

The Minister and I are aware that a number of issues have been raised regarding the proposed regulations. The main issues are the introduction of a savings cap, the development of the credit union business model and the imposition of lending restrictions. Following consultation on the regulations, the Central Bank has introduced a number of changes.

The introduction of a maximum individual member's savings limit of €100,000 is to ensure the protection of members' savings and to continue to ensure that credit unions' funding is sufficiently diversified and is not dependent on a small number of members. Following consultation with the credit union sector and representative bodies, the Central Bank amended the transitional arrangement for the savings regulations to provide for credit unions that have individual member savings in excess of €100,000 at the commencement of the regulations to apply to the Central Bank to retain these savings where they can demonstrate that it is appropriate and prudent for them to do so. That is quite a significant change. Credit unions can now apply to retain those savings. The Minister has been informed by the Registrar of Credit Unions that information regarding this matter and details of the application process will be available to credit unions before commencement of the regulations at the end of 2015. The Central Bank is currently refining its application criteria for retention of savings in excess of €100,000, to include a minimum asset size of €10 million; a minimum liquidity ratio of 25%; and the level of additional reserves in excess of the minimum 10% level, taking account of the scale, complexity and risk of the credit union. Consideration will also be given to other supervisory information, including whether a credit union has a regulatory direction or business restriction.

The Registry of Credit Unions intends to engage with the representative bodies - it is very important that they do engage - and to invite comments from them prior to finalisation of this application process. When the application process is finalised, the registry will provide an application form and explanatory notes in order to assist credit unions in making such an application. It is anticipated that application forms will be available during December 2015. The Central Bank envisages that applications will be accepted in the first quarter of 2016 and that applicant credit unions will be informed by the end of the second quarter of 2016 on the outcome of the process, which is well within the 12 month transitional period. Where a credit union has demonstrated that it meets the criteria, it will be in a position to retain members' savings in excess of €100,000 held at the commencement of the regulations.

The Central Bank has also informed the Minister that it is committed to undertaking a review of the continued appropriateness of the savings limit, once the impact of the restructuring process can be assessed.

It is expected that this review will commence within three years of the introduction of the regulations. The Central Bank has agreed to provide regular updates to the Department of Finance on developments in this matter.

An Leas-Cheann Comhairle

I ask the Minister of State to read the remainder of the reply in his next speaking slot.

Deputy Simon Harris

I will indeed.

Deputy Robert Dowds

I thank the Minister of State for his response.

I still come back to this point. I appreciate and am glad that a degree of flexibility exists but why have them hamstrung unnecessarily with bureaucracy? One should remember that credit unions are organisations which, while having professional staff, also have considerable voluntary involvement and they should not be hamstrung any more than necessary. I am asking that consultation paper 88, as it stands, not be signed off, even though I accept that there is some flexibility. I would prefer that there be more dialogue with the credit union movement. The latter did not cause the banking crisis and when it had to be bailed out, the cost was approximately €25 million. That is peanuts compared to the amount that had to be spent in bailing out the banks.

From what I am told, when Mr. Matthew Elderfield came to Ireland and took up the position of regulator, he did not even know what a credit union was. He knew what other banks were all right but he did not know what a credit union was. Credit unions have a long tradition of acting responsibly and, for that reason, we should try to work in unison with them and to their advantage to the greatest extent possible.

Deputy Willie Penrose

I thank the Minister of State for the reply. It is not the type of reply he would normally provide, given that it is couched in legal and bureaucratic language.

There is evidence in every credit union throughout the country and a clear recommendation is contained in the International Credit Union Regulators Network, ICURN, report commissioned by the Central Bank to the effect that it is time to step back, review and ensure that the regulatory architecture for credit unions is appropriate for the future. As the Minister of State indicated, the Minister for Finance, Deputy Noonan, has the power to effect regulation - this is set out in consultation paper 88 - or to pause and ensure, as recommended, that there is a timely review. Let the Minister return to the Central Bank. The regulations under the Credit Union and Co-operation with Overseas Regulators Act 2012 must first be commenced by the Minister for Finance. In view of the grave concern among credit unions, I request that the Minister refrain from signing the relevant commencement order and I ask that a thorough and timely review be carried out. The Minister should not allow the credit union movement, the bedrock of stability in our communities, to be sacrificed as a result of the irresponsibility of other financial institutions.

In effect, the banks, as a conglomerate, cost us in the region of €64 billion. I clearly recall that when I was in government an amendment from the regulatory services was brought forward advising the Minister for Finance that capital provision should be made for a number of credit unions that would effectively be in trouble and that the sum required would be in the region of €1 billion. Let us examine the record. Only three credit unions needed some cash - the final total was €25 million. In other words, the amount required was €975 million less than was projected by the great regulators. The irony is that the credit unions have in excess of €100 million as a fallback fund. They could have paid out the €25 million but somebody wanted to make a big deal out of the situation. The Government paid the €25 million but there was no need for it to do so because there was €100 million there to cover the cost.

An Leas-Cheann Comhairle

I thank the Deputy.

Deputy Willie Penrose

There is some difference between the position of the credit unions and the banks. This regulation will now compel credit unions to offload their additional funds into the very same banks that sunk the country. Is that not ironic? As one comedian would say, "Sure, you couldn't make it up." I ask the Minister of State to see the sense of the logic in our arguments and subject regulation CP 88 to a short, sharp review, as advised in the report commissioned by the Central Bank.

Deputy Simon Harris

First, like Deputies Dowds and Penrose, I appreciate the important role that the credit union movement plays. I am a member of a credit union in my constituency and, like many Members of this House, I know the substantial difference the movement makes to the lives of so many citizens throughout the country. The Minister for Finance, his officials and I have had good engagement with the various representative bodies of the credit unions over a period. I have found that engagement to be fruitful and it will continue.

I must make clear, however, that Members of this House passed the Credit Union and Co-operation with Overseas Regulators Bill 2012. We voted for it, we passed it and it is the law. There are sections of that Act that are due to commence at the end of this year. The independent regulator has made it clear that there are new criteria coming into place in relation to the €100,000. Many Members, including myself, had concerns that depositors would be told that they had to take their savings out of the credit union movement and put them into banks. I am very pleased, as is my colleague, the Minister for Finance, that the Central Bank has now advised him that this is no longer the position. The position now is that once one can meet certain criteria to show various adherence in relation to asset size, liquidity ratio and additional reserves in excess of the minimum, those savings can remain in the credit union. That is an important step forward in relation to the credit union movement.

I am also pleased that the Registry of Credit Unions has stated it will engage with the representative bodies of the credit union movement - I would again urge it to do so - and to invite their comments prior to the finalisation of this application process. The Central Bank has further informed the Minister that it is open to working with the credit union sector to ensure that prudent and appropriate business development can be facilitated within the regulatory framework. The credit union movement wants to play a bigger role in our economy and in our communities. I believe it can and so does the Government. I look forward to that engagement taking place with the Central Bank.

The credit union movement will continue to play an important role in the economy and this Government is committed to working with it. I will continue to engage with the Deputies on the matter.

An Leas-Cheann Comhairle

Deputy Ó Caoláin is not here yet, so I will move on to the fourth matter, which is in the name of Deputy McEntee.

Search and Rescue Service Provision

Deputy Helen McEntee

I thank the Minister of State for taking this Topical Issue on behalf of the Minister for Transport, Tourism and Sport, Deputy Donohoe.

Meath River Rescue was founded in 1996 to help the other services to search and recover missing persons. It is a voluntary organisation and, realistically, receives much of its funding through the support of the people in Meath via donations from church gate collections, collection tins placed at local business premises and individual donations. It currently has a membership of 35 persons and that is divided into groups of divers. They have extremely experienced swimmers, a number of coxswains, crew members as well as personnel trained in the provision of first aid and all of these members offer their time on a voluntary basis.

It is not easy work. The rescue service can carry out all types of services, whether on land or in water. Unfortunately, most of the time, when they are carrying out searches in the water, they are generally looking for bodies rather than persons who are still alive. It is extremely difficult work. The rescue service holds weekly training sessions for both new and established members and although the members are volunteers, sufficient personnel are always available to mount searches and continue them for as long as possible. In order to assist a particular family, for example, a search could last months.

The rescue service has grown from a small number of members to its present complement. In 2006, it reorganised and obtained charity status with the help of Meath County Council, which provided it with a site. Then, with assistance from many others, €120,000 was raised in two months and it enabled an agreement to be made with Meath Partnership for a new purpose-built bathhouse, which cost over €370,000 and which I had the pleasure of helping to open.

Meath River Rescue offers an invaluable service, not just to the people of Meath but also to those who live in the surrounding counties. As the Minister of State is aware, there are many people doing a great deal of good work. It is very tough work which takes up time and energy and it is all done on a voluntary basis. Much of Meath River Rescue's finance comes from fund-raising. It is extremely difficult for organisations to raise funds at present. People in Ireland are always very generous when it comes to donating to charities or other organisations but we have all gone through a difficult time and money is not easy to come by.

This leads me to the issue that I want to raise. The vehicles used by Meath River Rescue are not exempt from the toll on the M3 or, for that matter, from any toll. In particular, the M3 motorway is used regularly by the crew and if one were to add up the amount of tolls paid by the organisation during one year, it would amount to the proceeds of a number of fund-raisers. That is a large amount of money.

Rescue services are normally exempt from paying tolls. Under the Roads Act 1993, ambulances, fire brigade vehicles and vehicles used by members of the Garda Síochána and the Defence Forces are exempt from payment of tolls. However, the Irish Coast Guard, mountain rescue teams and other community-based voluntary organisations, including river rescue, are not. These organisations, in particular Meath River Rescue, provide an invaluable service on a voluntary basis and the amount of money that this would cost the Exchequer on a yearly basis is very little compared to how much it would help these organisations who assist so many families in Meath.

I ask the Minister to reconsider the organisations that are able to avail of it.

Deputy Paudie Coffey

I thank Deputy McEntee for the opportunity to address this issue on behalf of the Minister, Deputy Donohoe. It gives us further opportunity to acknowledge publicly, as the Deputy has outlined, the valuable work of organisations such as Meath River Rescue. As Minister for Transport, Tourism and Sport, Deputy Donohoe has responsibility for overall policy and funding of the national roads programme. The planning, design and implementation of individual road projects is a matter for Transport Infrastructure Ireland, TII, formerly the NRA, under the Roads Acts 1993 to 2015 in conjunction with the local authorities concerned.

The statutory power to levy tolls on national roads such as the M3, make toll by-laws and enter into toll agreements with private investors in respect of national roads is vested in TII under Part V of the Roads Act 1993, as amended by the Planning and Development Act 2000 and the Roads Act 2007. The Roads Act 1993 sets out the legislative provisions regarding tolling and section 62 of the Act specifies the categories of vehicles which are exempt from the payment of toll charges. As the Deputy outlined, only ambulance, fire brigade vehicles and vehicles used by members of the Garda Síochána or the Defence Forces in the performance of their duties as such members are exempt from the payment of tolls. The Irish Coast Guard of the Minister's Department, mountain rescue teams and other community-based voluntary emergency services and groups are not exempt from the payment of tolls.

Although voluntary and community organisations such as Meath River Rescue provide a valuable service, in order to ensure the implementation of a fair and robust system of tolling enforcement, it is essential that it be applied equally to all users. It would be very difficult, for example, to provide an exemption for one voluntary organisation over another. TIl has received numerous requests for exemptions from tolls from organisations that have merit including charities, medical groups, individual medical personnel and a multitude of other entities. TIl has been unable to accede to those requests, given that it has entered into binding concession contracts in respect of most of the toll roads. Making the voluntary and community sector generally exempt from tolls would incur a cost to the Exchequer, given that the PPP toll operators would have to be reimbursed for losses, and TIl is not in a position to do this. There is, however, nothing to prevent a group such as Meath River Rescue making direct contact with toll operators with a view to entering into an agreement regarding exemption from tolls. I encourage this, and the organisation may receive a positive response from the operators.

Deputy Helen McEntee

I thank the Minister for his response. The Minister's response stated that it is essential that it be applied equally to all users. It is not applied equally. While Meath River Rescue is a charity and a number of other charities may request something similar, in many cases, when a rescue mission is sent out, particularly to areas of water, it may be looking for somebody who is still alive. Sometimes, time is of the essence. A measure such as this could assist an organisation such as Meath River Rescue. Could the Minister of State, Deputy Coffey, bring this to the Minister, Deputy Donohoe, and request figures on how much it would cost the Exchequer? While it might seem a lot of money, it would not be much, considering how much it would benefit the individual organisations, especially those that are helping other services such as the ambulance, fire services and Defence Forces, which are exempt from tolls. I will get in touch with TII and I ask the Minister for support on the issue.

Deputy Paudie Coffey

I understand exactly where the Deputy is coming from and her concerns. If one starts to make exemptions for one voluntary organisation, where does it stop? Many of them have great merit, as the Deputy outlined. The Roads Act 1993 specifies the categories that are exempt, namely, the ambulance, fire brigade, Garda Síochána and Defence Forces. I will undertake to bring the Deputy's specific question on the cost of exempting more organisations from the toll to the Minister for a direct response to the Deputy. I encourage Meath River Rescue to approach the toll operators to see whether progress could be made. Again, I thank the Deputy for raising this important matter, which brings into focus the valuable work of rescue organisations, which none of us should underestimate, be it mountain, sea or river rescue or the coastguard. These people volunteer their time, expertise and effort to look after others and should be supported in any way possible. I accept the Deputy's concerns and will pass them on to the Minister.

Rural Broadband Scheme

Deputy Caoimhghín Ó Caoláin

It is widely acknowledged that the Internet is a key tool in reducing poverty and developing prosperity in any region. A report commissioned by the World Bank stated that an additional ten broadband lines per 100 people increased the gross domestic product of a country by 1.21%. It is clearly demonstrated that rolling out high-speed broadband to every home in the country would significantly benefit the Irish economy. I have raised the matter before and I wrote to the Minister about it this week. The Government has failed to ensure broadband is available to all the families and businesses across rural Ireland, so much so that we have the most pronounced two-tier coverage in Europe.

My constituency, Cavan-Monaghan, is a sprawling rural constituency, and is geographically the largest in the country. Its rural make up and the topography of drumlin countryside mean whole areas are ill-served and, therefore, severely disadvantaged in their ability to compete in business, exam preparation and all the other uses people make of high-speed broadband. These areas are unable to compete with other parts of the country, especially the large, populous cities. This discrimination must end. While next generation access coverage in Ireland stands at 71% of households across the country as a whole, it stands at only 8% for rural areas. We have a major issue to address.

The Irish Rural Network estimates that 10,000 jobs are lost in rural areas every year due to poor broadband service and it has been brought to my attention in the recent past that people are not only considering relocation from their rural home bases, but some have already relocated for business, education and other reasons, compounding the exodus rural Ireland has suffered during recent years due to the economic downturn. In order to ensure regional and rural areas are not disadvantaged, additional State investment is required to deploy next generation infrastructure outside the main urban centres.

I am delighted that an announcement has been made since I tabled this matter. Will the Minister outline the plans to address the continuing failure on the part of all providers, including the State and the other entities which also have a responsibility, to ensure equal access across the jurisdiction to high-speed broadband affording households, businesses and all users throughout rural Ireland the same quality of service and ability to compete on a level playing field as their city-dwelling fellow citizens?

Minister for Communications, Energy and Natural Resources (Deputy Alex White)

I thank Deputy Ó Caoláin for raising this matter. The Government recognises that high-speed broadband network deployment is of strategic importance for growth and innovation in all sectors of Ireland's economy and society. On 29 September last, the Government approved an allocation of €275 million for the national broadband plan which will provide the initial stimulus required to deliver the State intervention. Combined with commercial investment, this will ensure 85% of Ireland’s premises have high-speed broadband by 2018, with 100% coverage by 2020.

I might just remark on the question of what the Government has achieved. We can certainly come back to this in detail in due course if we get an opportunity to do so. It is envisaged that by the end of 2016, which is just over a year from now, high-speed broadband will be available to 1.6 million addresses in Ireland. It is currently available to well in excess of 1 million addresses. This compares with a figure of just 300,000 in 2011. While that might not necessarily be a success in the Deputy's eyes, it is certainly not a catalogue of failure on the part of the Government. I will, when I get an opportunity to do so, come back to the question of how we measure the success of what we are doing.

The provisions set out in the capital plan give an indication of the scale of the investment that is envisaged. As I have said previously, however, the plan does not set out the full cost. The full contract period cost of the programme will emerge out of the tendering process that is about to begin. Ireland’s proposed broadband intervention strategy, which was published on 15 July last, sets out a series of detailed proposals by the Government in respect of State intervention. It sets out the key elements of the intervention, what services are proposed and how they will be delivered. It outlines various aspects of the proposed intervention, including the type of network envisaged, the minimum speeds being demanded, the length of the contract for services and whether the network should be public or privately owned. All these matters were set out when the strategy was published on 15 July last.

The intervention strategy has been developed following intensive engagement with industry and wider stakeholders. The strategy is also informed by detailed input from the expert advisers who were commissioned by the Department to produce the seven expert reports which are published on www.broadband.gov.ie. The key principles underpinning the proposed intervention strategy include the delivery of high-speed broadband to all premises that will not be able to access such services through commercial investment alone. The strategy aims to address conclusively current and future connectivity deficits throughout Ireland and to ensure services are affordable, competitive and on a par with those available in the commercial areas. The strategy will ensure value for money and compliance with EU state aid guidelines through a technology-neutral procurement process.

I will give the House an idea of the profile of the area that is expected to be addressed by the State part of the intervention strategy. The commercial investments will be taking place in parallel with that. The State intervention will cover 96% of the national land mass of the State. This involves approximately 30% of the homes and businesses in the State. Having given us a reasonable account of the experience in the constituency he hails from, Deputy Ó Caoláin will appreciate that just under 30% of the homes and premises in this country are located on approximately 96% of the land mass. For example, practically all farms are in the State intervention area as they will not be covered by the commercial sector. We have given this information previously, but it is worth repeating.

If the State intervention we have embarked on was a road network, which it is not, it would be 100,000 km of road network. I mention that to give people an idea of the equivalence. It includes all the offshore islands and covers 757,000 postal addresses. 1.8 million citizens, 38% of the national labour force, 34% of white collar employees, 89% of farm employees, 94% of farms, more than 62,000 small and medium-sized enterprises, primarily micro SMEs, and 1,522 schools. That list will give the House an idea of what needs to be addressed by State intervention because the commercial sector will not deliver it. The commercial sector will go to approximately 70% of homes and businesses. This State intervention is necessary to ensure people who live in relatively remote areas throughout the country, including parts of Deputy Ó Caoláin's constituency, can enjoy the same access to high-speed broadband as those of us who live in cities.

Deputy Caoimhghín Ó Caoláin

Of course what the Minister has outlined is very welcome. I am asking for a necessary assurance. I understand that, coincidentally, it is being reported today on local radio at home that the roll-out will not begin until late 2016. Will the Minister clarify that? The State element is vital because of the obstinacy of the commercial providers in failing to take on board the vast swathe of the population who live in the country and depend on broadband. It is critically important. I am not able to make international comparisons. Maybe the Minister can do so. We are talking about a period of five years to achieve this. Will the Minister give a sense of how it might be rolled out? Where will the initial works get under way? Why is there a delay until the end of the current year? That is what I was advised shortly before entering the Chamber.

Will the Minister elaborate on the points he has made, many of which I welcome? I want to be able to assure my constituents that this is a solid commitment that will not in any way falter in its delivery. That is the critical thing. I would like a guarantee regarding the development of broadband into the future. I want an assurance that the provision to be rolled out will keep pace with developments in technology and will not leave people who depend on the State roll-out at a disadvantage in future by comparison with the service currently provided by commercial interests.

I am responding positively to what the Minister has indicated. I want to see this project happen because it will be hugely important. In addition to having implications for the responsibilities of the Department of Communications, Energy and Natural Resources, it offers the potential for the retention of existing jobs in rural Ireland and the creation of new opportunities for real jobs across rural Ireland. That is what broadband represents. I expect the Minister to confirm that there will be a real cross-departmental commitment behind this. If the Minister for Jobs, Enterprise and Innovation is not taking a direct interest in this, I would expect that he will do so. I fully recognise the value and worth of what must and can be done. I hope the Minister is assuring us it will now be done as quickly as possible.

Deputy Alex White

I will complete the picture. Following the completion of a mapping exercise this time last year, I published an interactive map that allows any citizen or public representative to go online and see what areas of the country are to be covered by the private sector and what areas require State intervention. Areas in the latter category are depicted in an amber colour on the map, which can be seen on the website I mentioned earlier. The map allows people to see all the areas in respect of which the private sector has made a commitment to deliver broadband. The other area that can be seen on the map, the so-called amber area, is the 96% of the land mass where State intervention will have to take place.

This is a perfect example of where it is necessary for the State to have an enduring role. We have had a great deal of debate about the role of the State in a modern economy. It seems to me that if the commercial sector will not deliver the infrastructure that people need, the State must intervene to deliver it. I can give the Deputy an absolute assurance that this is what we are doing.

When I got this job last July, I looked at the various priorities within the Department and this was the most important one for me. Hardly a day goes by that I am not involved in the planning and delivery of this project. Very senior and dedicated civil servants are working with me on it and it will be delivered. It will require continuity in terms of a commitment from the next Government. This is a very important infrastructural imperative for the people of Ireland and the economy. It will require continuity, no matter who is in this position, whether it is me, Deputy Ó Caoláin or someone else. That is extremely important.

The Deputy asked what guarantees I can give. I mentioned the implementation strategy earlier. Future proofing the provision of high-speed broadband is one of the issues we have integrated into our planning. We want to ensure, whether it is fibre or some other technology, that we will not have to go back to it in five or ten years time. It will be future proofed in the sense that we want to do it once and do it right. That is what I keep saying, that we will do this project properly and do it in a way that is future proofed.

While I do not have the exact figures in front of me, there is significant interest in the European Commission and in other countries in what we are doing here. The private sector, in fairness to it, has driven much of this work. We have driven the private sector and it is driving development. We have SIRO, we had the legislation relating to the ESB and Vodafone, and Eircom, now Eir, has invested a lot in this area. Working in parallel with what the private sector is doing, we will deliver this and ensure that we get it over the line. Whether it is me or someone else, this has to be done not just for the Deputy's constituents, but for all of the people of Ireland, particularly those in rural Ireland who should not be excluded from the benefits that broadband brings in terms of business, education, interaction with public services, arts, culture and the myriad other services that improve people's quality of life and help them to do business.

The Dáil adjourned at 4.05 p.m. until 10 a.m. on Friday, 9 October 2015.