Topical Issue Debate

Bord na Móna

Deputy Barry Cowen

I raise this issue because it is a concern of mine and of many workers within Bord na Móna that jobs are being put at risk in its transport rail and road divisions by the board's plans to outsource those services and impose unilateral pay cuts on existing workers. There was much consternation, deliberation and negotiation, and ultimately it went to the Labour Court. Other aspects of the negotiations took place over a protracted period of time and culminated earlier this year in a Workplace Relations Commission agreement, which spoke about the ability of the relevant section of the board to outsource services. In this case, as a result of Bord na Móna's intention to outsource its road division and impose cuts on its rail division, 130-odd workers are affected. If there is a breach of the WRC agreement it could have a knock-on effect on the 600 workers involved in the entire peat production, known as feedstock. My contention is that the board feels it is within its powers as detailed within the agreement, which states:

Bord na Móna's road haulage operations are currently being reviewed with a view to significant cost reductions and while the company notes the union's opposition to outsourcing in general, the option of outsourcing has been included in this review and if this standard tendering process determines that outsourcing is the most economic option it will be pursued. In that eventuality, existing Bord na Móna drivers will not be required to transfer to an external operator or operators and will have the option of redeployment on current pay and terms within Bord na Móna or voluntary redundancy applications may be sought.

Also within the WRC agreement was the proposal to appoint a joint industrial relations commission, which had been suggested as a forum to deal with issues such as this if there was contention around them. The contention around them is by virtue of the fact that the workers or unions were not afforded an opportunity to offer similar savings from within their own divisions to meet the demands that were being placed on them by Bord na Móna, whose overall reductions amounted to 30%, much of it from pay, as per the agreement that was reached with the entire staff in January. Based on the WRC agreement, in the event of dispute in areas such as this, there was provision for the setting up of a joint industrial relations council to further adjudicate on such issues. That opportunity has not been availed of, and now we have a situation whereby the transport staff voted yesterday on a work to rule. The unions may eventually take the opinion that this is a breach of the entire agreement, which has a knock-on effect on 600 workers. Intervention is needed to adjudicate on that and to allow the joint industrial relations council an opportunity to further adjudicate.

Minister for Communications, Energy and Natural Resources (Deputy Denis Naughten)

I thank Deputy Cowen for raising this important issue and I acknowledge the presence of Deputy Eugene Murphy. It is an issue close to all our hearts. As Deputies Cowen and Murphy are aware, Bord na Móna is facing significant business challenges in the context of the deregulation of the electricity market and increasingly competitive and challenging environments across all its business areas. In order to ensure its continued success and survival, the company is implementing a programme to transform all areas of its operation and structure, the key objective of which is to improve business efficiency and effectiveness. In April 2016, following a series of negotiations with the assistance of the Workplace Relations Commission and the Labour Court, Bord na Móna reached agreement with the Bord na Móna group of unions on pay progression and new working methods across a range of issues related to business transformation.

The specific matter raised by the Deputy is an operational matter for the company and not one in which I as Minister have a function or role. I have, however, sought a report from the company on the issues raised and am informed that the matters referred to by the Deputy cut across two specific areas. With regard to rail transport, I am advised that Bord na Móna transports peat to its three peat-fired power stations via its rail network. This work is carried out in accordance with the standards laid down in respect of the work methodology. Bord na Móna has confirmed that it is normal practice dating back many years to periodically review these standards to see if they can be updated to reflect developments, for example, in technology. I understand that this was done by an industrial engineer who reviews current practices and redefines standards.

The recently adopted general agreement under the WRC makes provision for this matter. Bord na Móna informs me that the loading and haulage work standards, which were outdated for many years, were reviewed during 2015 and updated in June 2016 to reflect modern equipment and workplace practices. I am advised that the new arrangements have resulted in reductions in bonus payments, in some cases by up to 12%. Bord na Móna has assured me that the Workplace Relations Commission agreement mentioned earlier clearly covers the adjustment and sets out an agreed compensation arrangement.

With regard to the outsourcing of services, I am advised that Bord na Móna currently transports some peat by road, which is quite expensive. Between 15% and 20% of all peat sold is transported by road. Bord na Móna's peat business has ten trucks and 18 permanent drivers, which carry approximately 60% of the peat transported by road. The remaining 40% is carried by third-party trucks. An analysis of the internal cost per tonne transported versus the third-party cost per tonne transported found that significant cost reductions could be realised if the road haulage was outsourced. The WRC agreement provides that outsourcing could be introduced where it results in cost savings, provided that employees are given the option to redeploy within Bord na Móna on their current terms and conditions. I am informed that the company has advised the unions that it intends to implement this outsourcing by 1 September 2016 and that all drivers will be deployed within the business on current pay terms. I understand that discussions are ongoing between the company and the unions on this matter.

Deputy Barry Cowen

I thank the Minister for his response and acknowledge that he has sought a report from the board on this issue. I ask him to request that specific acknowledgement be made in the report of the submissions by workers or their representatives on their ability to achieve the same cost savings proposed in the outsourcing element of the cost-saving effort. I ask for that to be acknowledged, adjudicated on and responded to.

I ask that the board further acknowledge the provision in the WRC agreement that in the event of a dispute in an area such as this it was agreed by both parties that a joint industrial relations panel be put in place to adjudicate. If that is the case - and I am led to believe it is - we should not be discussing this issue here. It should be dealt with through that channel, because if that channel is not explored, authorised or respected, we are faced with a much bigger problem.

The Minister mentioned the challenging role faced by Bord na Móna and its staff. Over many years, there has been much transformation throughout the company. I hope to discuss with the Minister at a later date the options that exist for funding and tax in the area of gas emissions.

The charge was reduced by the previous Government and it is imperative that the Minister uses part of that for reinvestment in the localities that can be affected by Bord na Móna.

Deputy Denis Naughten

The emissions trading scheme, ETS.

Deputy Barry Cowen

As I stated, we can talk about that another day. It is important that the Minister reflects on the two points I have made and ensures that any such report that emanates from the board takes note of and responds to those, and then we could have a solution.

Deputy Denis Naughten

I thank Deputy Cowen. I have no direct role in this. It is an operational matter for the company. Having said that, Deputy Cowen, like me, has received representations from transport staff, both on the rail side and on the road transport side, as has Deputy Eugene Murphy. All of us across the midlands have received them. There is a bigger issue here in relation to the overall industrial relations environment within the company. It is important, where a successful agreement has been reached and adopted by the staff and the company, that it can be kept intact.

I listened to what Deputy Cowen said. I will relay those issues directly to the board and ask it to consider them. If staff can come up with savings, that needs to be assessed thoroughly. If there are mechanisms, through councils or whatever, to resolve these issues, they need to be used. I listened to what Deputy Cowen said and I will reflect that back to the board, but these are operational matters. As Deputies in the area, we are all concerned about any industrial relations issues. It is in the interests of everyone, within the board and within the wider community, that these agreements are implemented in full.

Waste Management

Deputy Mick Barry

Last Friday night, a cohort of 11,000 customers of a waste collection company based in Cork by the name of Country Clean, which provides waste services in both Cork city and Cork county, received a text from it. The text indicated that, as of Monday last, there would be an increase in the pay-per-lift charge. The pay-per-lift for general waste was to increase from €8 per lift to €12 per lift, and for recyclable waste from €4 per lift to €7 per lift. Customers were also asked to increase the amount that they had in their accounts on standby for payment from €20 to €22.

The Minister, Deputy Coveney, came in to the House only a matter of weeks ago stating he had an agreement - it was dubbed in the House "a gentleman's agreement" - with the Irish Waste Management Association, the representative organisation for the waste collection companies. The Minister gave a guarantee to the House and to customers that there would be no price hikes for 12 months. I put it to the Minister of State, Deputy English, that this is a clear breach. Not only is it a price hike, it is a price of hike in the region of 50%.

I am asking for action. Country Clean has gone to ground. The company is not taking phone calls from radio stations or anything of the like, and I am asking for action from the Government. The Minister stated in June that legislation would be brought in to enforce a price cap in the event of breaches of this kind. What action does the Minister intend to take to stop this from happening to these 11,000 customers?

Deputy Joan Collins

As Deputy Barry stated, the Irish Waste Management Association agreed with the Minister recently to implement the price freeze that has been spoken about. As I stated on Thursday last on Leaders' Questions to the Tánaiste, there was a collective sigh of relief across the country such was the anger and anxiety of waste customers.

Greyhound has done the exact same. The company has said to its customers they can opt out of pay-by-weight, and if they do, they can enter into another deal where one must pay €140 up front. I made the case of a woman in my area who had paid €59.95 for a year's contract with Greyhound in January of this year and now she has been told she must pay €140 to go back into that contract from 1 August to July next year. That is a massive increase.

These companies are holding the Government and their customers, and, in Greyhound's case, its workers, in contempt in relation to this so-called gentleman's agreement. The Tánaiste stated on Thursday last that the Minister was monitoring the matter and, if necessary, he would bring in the legislation to force the companies to implement this price freeze.

Country Clean is continuing to act in this way. Another company is now following suit where it is increasing its black bin charge from €8 to €12 and its green bin from €4 to €7. Despite the polluter pays principle, they are hiking their prices up by that amount. These companies are ignoring the agreement. The Minister must not be ruthless but forthright in coming forward and doing something about this. What will he do?

Minister of State at the Department of the Environment, Community and Local Government (Deputy Damien English)

I apologise that the Minister, Deputy Coveney, is not here himself to take the debate. He was hoping to be back in time to take it.

It is true that earlier this month the Minister, Deputy Coveney, secured an agreement with all major waste collection companies to freeze charges in order that customers would pay no more than they currently pay for waste collection over the next 12 months for the same level of service.

While the majority of those in the sector have clearly honoured the agreement, there appear to be some instances of divergence from the terms, or if not the terms then certainly the spirit, of what was agreed. We are disappointed and unhappy, therefore, if it is true that a waste collector, cited by the Deputies, is requiring existing customers to pay an increased charge for the same level of service contrary to the sector-wide agreement that was negotiated in good faith.

Our Department has been in touch with the company in question, Country Clean, which has explained that the pricing change only relates to some of its customers and is due to the discontinuing of waivers for a small percentage of pay-by-lift customers, which the company purchased from Cork city and county local authorities in 2011. Country Clean has continued the waiver up to this point but is now intending to remove it. The company also stated that it is open to those customers to move to the flat-fee pricing plan offered by the company.

While regular presenters of waste, that is, those who present both a residual black bin and green bin every fortnight, would see no increase in charges under this change, it could result in increased fees for lighter producers of waste.

We consider that unacceptable. Customers should not be punished for displaying good management practices by producing less waste. Furthermore, I also do not believe that this approach is consistent with the spirit of the agreement reached with the sector last month. The Minister, Deputy Coveney, has asked our officials to follow up directly with the company and to ensure it understands his expectations in this regard, and also the implications of what the company plans to do.

The approach being taken by different waste companies is being closely monitored. In this regard, the Minister mandated officials from our Department to meet representatives of the waste sector earlier this month where issues concerning the consistent implementation of the agreement were raised. It was made clear to the representatives from the waste sector that if a fair and reasonable approach was not being delivered, we would be forced to take further steps to ensure the agreement was honoured. The Minister has also been clear that if there is evidence of the agreement being breached, he will look at further legislative measures, where necessary, to enforce it.

The compliance of the sector and its effectiveness in co-operating and implementing these new arrangements are likely to feature within the overall review of the functioning of this waste collection sector and to influence consideration of the need for a regulator to ensure we have absolute clarity in terms of predicted behaviour, charging systems and the parameters within which the providers operate.

I thank the Deputies for raising this issue. We have publicly expressed our dissatisfaction before with how certain companies are operating in a manner that is not in keeping with the spirit of the agreement reached with sector in June. Under the agreement, customers should not pay more than they currently pay for their waste collection and for the same level of service until July next year.

That was a very clear agreement and the Minister, Deputy Coveney, outlined it to the House and took questions on it. The operation of the price freeze by industry is being closely monitored by the Department. Departmental officials have held three meetings with representatives of the waste industry since 1 July and are in regular contact around issues arising from this matter. We will continue to liaise with operators as necessary on the consistent implementation of the agreement.

I reiterate that at those meetings it was made very clear to the industry that, if the companies were not taking a fair and reasonable approach, we would be forced to take further steps to ensure the agreement is honoured. In this regard, I will ask my officials to meet representatives of Country Clean and Greyhound if necessary to investigate this matter further and seek early resolution.

Deputy Mick Barry

I welcome the response from the Minister of State, particularly the parts of the statement indicating, "We consider that unacceptable", "I also do not believe that this approach is consistent with the spirit of the agreement reached with the sector last month", and, last but not least, "I will ask my officials to meet representatives of Country Clean and Greyhound if necessary to investigate this matter further and seek early resolution".

It is hot outside and people are concerned about what will happen if their bins are not collected this week. In other words, people cannot wait weeks for this to be resolved. I am asking for a commitment that if Country Clean is not brought to heel immediately, or in a day or two more or less, we will move quickly on the issue with legislation to cap prices, meaning this sort of action will be forbidden by law.

Deputy Joan Collins

I reiterate those comments. We have raised this issue for the past number of weeks, including on the Order of Business on a number of occasions. We keep being told the issue is being monitored, watched or processed and there are meetings with representatives. Greyhound will implement this on 1 August, which is less than 14 days away. Everybody has received a letter about it. The Minister of State must move more quickly on this as the companies are continuing to do this. They are breaking the agreement made with them and something must be done about it.

I put a question to the Minister a couple of weeks ago about having an investigation into the companies. He stated:

Waste collection is the statutory responsibility of local authorities. Under section 33 of the Waste Management Act 1996, as amended, there is a general duty on a local authority to either itself collect the household waste in its functional area or alternatively to arrange for its collection by third parties.

We need to consider that and introduce a statutory instrument so if a company is in breach of its obligations, the collection should be taken from it so the local authority can take over or it can be given to another company that will abide by the rules.

Deputy Damien English

I again thank the Deputies for raising the matter. I know it is frustrating at this stage and I am quite conscious that the Deputies have said that August is close. The Minister, Deputy Coveney, has been very clear about this and he expects the deal to be honoured. That is the bottom line and it has been made clear in all negotiations. Our officials have been out there and it has been made clear that there will be consequences if the deal is not honoured. There have been further investigations this week and we will have to see what happens at the end of the week. I am conscious of the Deputy's comments regarding collections in the next couple of days. I hope we can have an update towards the end of the end of the week. I will liaise with the two Deputies on that as well. The Minister was very clear about this to the representatives of companies that he expects the deal reached to be honoured. It is as simple as that.

Neuro-Rehabilitation Policy

Deputy Louise O'Reilly

Is the Minister of State aware there are over 25,000 people who need rehabilitation each year? Most of these people struggle even to get the most basic level of service, according to the Neurological Alliance of Ireland. One of them is a lady named Vera Ronan. She was a happy energetic woman, active in her community and fond of the game of darts. She was close to her family and a very vibrant individual. She suffered a fall on 2 July 2015 and following some very good care in Beaumont Hospital, she was transferred on 18 July 2015 to Connolly Hospital, receiving care there for approximately six weeks. Following that, she waited in the hospital bed for a transfer to the National Rehabilitation Hospital or for any form of rehabilitation services. Her family assisted the nurses and carers and sat by her bedside, minding her as anybody would mind their mother. They watched her deteriorate and wait every single day. While she was in the bed, there were people downstairs on trolleys in the accident and emergency department. She should not have been in that bed; she should have been getting neuro-rehabilitation but she could not get it.

According to the Neurological Alliance of Ireland, the problem is at crisis level. We should have 270 inpatient beds for our population but we have fewer than half that number, with none outside Dublin. We should have four regional inpatient specialist rehabilitation services nationwide but we have none. There should be a minimum of nine community neuro-rehabilitation teams nationwide, with one in each community health organisation as a starting point, but there are only three, with none adequately staffed. I know Vera Ronan's family and their hearts break over the eight months lost, when their mother could have made serious progress. Every day that is lost, it takes two or more days to get the day back. It was heartbreaking for her family to have to see her in a hospital bed when she did not need to be there, effectively getting very expensive bed and breakfast. She needed neuro-rehabilitation.

Will the Minister of State commit to publishing a meaningful plan by the end of 2016 for the implementation of the national neuro-rehabilitation strategy that covers key actions, timeframes and a deadline to implement it? We have the report and know what needs to be done. We need a timeline, actions and identifiable targets. Will the Minister of State commit to appointing a senior manager in the HSE in 2016 to complete the plan and lead on the development of rehabilitation services nationally? We are failing people who need these services so badly because they have a chance of recovery; every day they spend without the neuro-rehabilitation services, they are being pushed back even further. There are 25,000 people per year who require this level of intervention. We have a plan so we do not need another report, as the Minister of State knows as well as I do. We need timeframes and a commitment to implement the plan.

Minister of State at the Department of Health (Deputy Finian McGrath)

I am pleased to take this opportunity to update the Deputy on the implementation of the National Policy and Strategy for the Provision of Neuro-Rehabilitation Services in Ireland, which made a number of recommendations for services for people with neuro-rehabilitation needs. The programme for a partnership Government places a particular focus on a number of key programmes and strategies, including publishing a plan for advancing neuro-rehabilitation services in the community. Currently, a steering group led by the Health Service Executive social care division, with representation from the national clinical programmes for rehabilitation medicine and neurology and the Neurological Alliance of Ireland, has drafted an implementation framework for the national policy and strategy for neuro-rehabilitation services. The draft framework is the subject of consultation at present.

Following the development of the neuro-rehabilitation policy and strategy, the HSE established the clinical programme on rehabilitation medicine. The scope of the clinical programme on rehabilitation medicine covers the whole of the patient journey from self-management and prevention through primary, secondary and tertiary care. It provides a national, strategic and co-ordinated approach to a wide range of rehabilitation services. The implementation framework will guide and oversee the reconfiguration and development of neuro-rehabilitation structures and services at national and local level.

The framework outlines the key issues, themes and considerations, particularly with reference to the necessary reconfiguration and development of community services within the HSE's community health care organisations and inpatient specialist rehabilitation services.

It is envisaged that implementation will involve reconfiguration and development of resources with the community health care organisations to establish specialist neuro-rehabilitation teams within each area as well as reconfiguration and development of specialist inpatient rehabilitation services. This is in line with the rehabilitation medicine programme model of care and national trauma policy and integration of all specialist rehabilitation services within what is envisaged as being managed clinical networks where each of the nine community health care organisations will establish local implementation teams. A neuro-rehabilitation network, based on a hub and spoke model, will serve population-based areas of the country. Managed networks will link closely with the National Rehabilitation Hospital, community rehabilitation teams, primary care centres and acute hospitals in their areas.

Alongside these developments, the Government announced a major capital development of the National Rehabilitation Hospital. This will deliver a modern, purpose-built hospital on the current site. It will have 120 inpatient beds and will include support therapies, paediatric and acquired brain injury wards, a hydrotherapy unit and a sports hall. A priority for the implementation of the recommendations of the national policy on neuro-rehabilitation services in Ireland will be to establish a structure and methodology to provide the development of neuro-rehabilitation services. This will include the reconfiguration of current service provision. Services will be developed by the HSE social care division and other relevant HSE divisions in collaboration with the national clinical programme for rehabilitation medicine. This will ensure appropriate planning, service delivery and governance for neuro-rehabilitation services.

I agree with Deputy Louise O'Reilly that it is not acceptable that 25,000 people are waiting for rehabilitation services. I listened carefully to what she said about Vera, the woman she mentioned.

An Leas-Cheann Comhairle

The Minister of State will have another opportunity to speak.

Deputy Finian McGrath

She has waited long enough. I will raise the issue with the Minister.

Deputy Louise O'Reilly

With the greatest of respect, what the Minister of State has just read out is word for word a copy of a letter I received. I did not even have to look at the copy of the reply I was handed because I had it already. I received it on 15 July from the HSE. I asked the Minister of State for a date and a meaningful plan by the end of this year, with dates and achievable timeframes. The report was first published in 2011 and these people have already been let down enough.

The Neurological Alliance of Ireland currently has a campaign called "We Need Our Heads Examined". Sometimes I say that to myself when getting out of the car in the morning on coming into work. The campaign outlines the litany of broken promises and missed deadlines. We do not have a deadline today. What we have is a plan but we had a plan before we came into the House. What we need are deadlines and timeframes and a commitment to appoint a person from the HSE who will drive this forward.

There are many benefits to the strategy. The HSE itself is clear that its implementation will result in reduced length of stay in acute hospitals, a 10% reduction in readmission rates, a 5% reduction in care requirements and a reduction in discharge to nursing homes. There is a saving to be made. However, we still do not have a date.

The Minister of State agrees that it is not acceptable. If that is agreed, will he agree that we need to put a plan in place? We do not need more statements such as "we will have a group" or "this might happen and, at a later date, something else might happen". Vera Ronan has lost vital time. She has also taken up a bed in a hospital that could have been used by someone who needed it. We have people on trolleys in the accident and emergency department and Vera in the hospital bed but she does not need to be there. It really is not acceptable. If the Minister of State agrees that it is not acceptable, will he agree that we need a plan with a timeframe and identifiable and achievable goals as well as a person to head this up and drive it forward? These people have been let down far too many times.

Deputy Finian McGrath

This is exactly what will happen. In the programme for Government, the 2016 national service plan includes the rehabilitation strategy and integrated care programme. On particular plans over the coming months, the 2016 capital plan includes the progressing of this National Rehabilitation Hospital. There are also actions to implement the rehabilitation strategy and the integrated care programme. For example, each community health care organisation is to review the draft implementation plan. Second, they will amend implementation plans following feedback as appropriate. Third, each community health care organisation is to map existing services and identify deficits. Finally, each community health care organisation will identify reconfiguration of staff to prepare a plan for implementation of the strategy.

I will go back to the Minister on this matter. There are no particular dates but there is a plan for 2016 to get on and build the hospital. As stated, I find it unacceptable that people in this particular situation are in hospitals. Deputy O'Reilly makes the valid point that their occupying of a bed takes it from someone else who needs it. I will go back to the senior Minister, Deputy Harris, and put on the record my concerns about implementing the actions that are committed to in the programme for Government. We need to do our best to support these people. There are 25,000 of them out there. We have a direct plan to put in a 120 bed unit as a start and we have to roll out other services as well to assist these people. We need action and I will demand it from the Minister.

Road Network

Deputy Donnchadh Ó Laoghaire

Gabhaim mo bhuíochas leis an Aire as bheith anseo. The Minister will no doubt be aware of the importance of the N28. It is one of the most strategically important roads in the State. In terms of outlay in comparison to potential economic return, it may well be the best value for money. This has been on the cards for some time now. The road will link the Bloomfield interchange and Ringaskiddy at motorway standards. Needless to say, the economic case for the motorway is extremely strong, particularly in the context of the crucial strategic employment area that is Ringaskiddy, the rapidly growing town of Carrigaline and the strategy which both Government and council have developed for the Cork Harbour area, including the National Maritime College of Ireland which the Minister discussed with Deputies last week.

Cork Chamber helpfully commissioned a report, Cork to the World, in 2010 by Indecon on the economic case for the N28. If the Minister has not read it, I can tell him it is well worth reading. I will ensure a copy is left in his pigeonhole for his attention. To give a brief outline, the assessment indicates that the N28 upgrade would provide a catalyst for realising massively enhanced foreign direct investment, involving an estimated 1,100 additional high value jobs and related additional employment incomes of €97.1 million in annual terms or €1.4 billion in present value terms over a 25-year period. That is a substantial amount and crucially important to Cork's industrial future.

There are also the potential implications if the road is not delivered in a relatively short period. The Indecon report states that the estimated loss in trade that would result from a failure to provide the required port capacity - which is the Port of Cork redevelopment that is linked to the N28, to which I will return - is €3.8 billion per annum or just below 22.4% relative to projected 2030 trade. This is the equivalent of a loss of €59.4 billion when measured in present value terms over a 25-year period. Mar sin, muna chuirtear an N28 ar fáil, caillfear trádáil agus tionscnaimh.

The development of the Port of Cork, one of the most important maritime developments in the State and crucially important to Cork's industrial future, is closely tied to the N28. Phase 3 of that development, which involves roll on-roll off traffic, will not happen unless the N28 upgrade is delivered, and nor, incidentally, should it happen, as it would be an entirely unreasonable imposition on residents. The delivery of the N28 is vitally important to the local community. Residents of Shanbally and Ringaskiddy have had to suffer heavy freight travelling through their villages daily for far too long. In addition, this has the potential to assist with extremely heavy traffic in Carrigaline.

This matter is being discussed once again following a report given to Cork County Council following a meeting between Transport Infrastructure Ireland and a delegation from the council. The report was received with great disappointment by councillors. It confirmed that a number of projects for Cork would not happen within five years due to lack of funding.

It stated that a contractor for Dunkettle would not be appointed until late 2018 and, despite its being the top priority for Cork, work would not begin until at least 2019 or 2020. The M22 and the M28 will begin only after Dunkettle is delivered, and this will not be until 2021 at the earliest. The N28 hinges hugely on Dunkettle. If we are serious about regional development outside Dublin, the delivery of the N28 is absolutely key. Cork has waited long enough and it needs to be expedited.

Minister for Transport, Tourism and Sport (Deputy Shane Ross)

I thank Deputy Ó Laoghaire for the opportunity to address this issue . As Minister for Transport, I have responsibility for overall policy and funding in relation to the national roads programme. The construction, improvement and maintenance of individual national roads, such as the N28 Cork to Ringaskiddy scheme, is a matter for Transport Infrastructure Ireland, TII, under the Roads Acts 1993 to 2015 in conjunction with the local authorities concerned. Within its capital budget, the assessment and prioritisation of individual national road projects are matters for TII in accordance with section 19 of the Roads Act.

The N28 is the national primary road that links Cork city to Ringaskiddy. The existing N28 is approximately 12 km long and is a single carriageway except for a dual-carriageway section at the approach to the Bloomfield interchange, the junction with the N40. The combination of traffic levels and the road layout results in delays for the current users of the N28. This affects both local traffic and long-distance through traffic.

Ireland has just under 100,000 km of road in its network, and the maintenance and improvement of national, regional and local roads place a substantial financial burden on local authorities and on the Exchequer. Because of the national financial position, there have been very large reductions in Exchequer funding available for roads expenditure over the past number of years. For this reason, the focus has had to be on maintenance and renewal rather than major new improvement schemes.

The capital plan, published in September 2015, outlined proposed transport investment priorities to 2022. I understand that the transport element of the plan was framed by the conclusions reached in my Department's strategic investment framework for land transport. This report highlighted the importance of maintenance and renewal of transport infrastructure together with targeted investments to address particular bottlenecks and critical safety issues. The capital plan provides €6 billion for investment in the roads network in the period to 2022, with €4.4 billion earmarked for the maintenance and strengthening of the existing extensive network throughout the country and €1.6 billion for new projects. Allowing for the commitments relating to the PPP projects, the balance available for new projects within the available capital envelope was limited. Given the funding limits, the decision made by my predecessor was to provide for a mix of projects across the country to address particular constraints, including bottlenecks and port connectivity. While it will not be possible to address all the demands for improvement schemes over the capital plan period, the plan does provide for a number of important projects in the Cork area which are scheduled to commence construction within the plan period, including the upgrading of the Dunkettle roundabout, works on the N22 road between Ballyvourney and Macroom and works on the N28 Cork to Ringaskiddy road, subject to appropriate planning consent.

In April this year, Cork County Council, in partnership with TII, launched a public consultation on the next stage of the M28 Cork to Ringaskiddy motorway scheme. The preferred route alignment and junction strategy for the scheme provides for 10.9 km of motorway standard dual carriageway from Bloomfield to Barnahely and 1.6 km of single carriageway from Barnahely to east of Ringaskiddy. TII has reported that the outcome of the public consultation was positive. I understand the business case in respect of the project is being finalised for submission to my Department and the Department of Public Expenditure and Reform.

The transport element of the capital plan is based on a gradual build-up in capital funding for the road network from the current relatively low base towards the levels needed to support maintenance and improvement works. Funding will continue to be tight in 2017, with a step up in 2018 and 2019 and then a significant ramp up from 2020. As Minister I have to work within the capital budgets included in the plan, and TII, in planning the construction schedule for individual projects, also has to take account of the annual budgets available.

As I have indicated previously, we are all conscious that the recovery of the economy is generating spending pressures across the Government system, including capital investment needs. As part of the programme for a partnership Government there is an increased emphasis on the need for spending on public services, but the Government still has to operate within the EU fiscal rules and this does constrain options. There will be a mid-term review of the capital plan and this will provide an opportunity to assess progress and consider what scope there is for increased levels of investment depending on economic growth.

Deputy Donnchadh Ó Laoghaire

The part of the Minister's response that jumps out at me the most is the reference to the 12 km of the N28. The investment involved would result in 1,100 high-end jobs, but there will be a potential loss of €59.4 billion in present value terms over 25 years if it is not developed quickly enough. The value for money in this project is enormous. If the Government is serious about balanced regional development and attracting major multinational employers outside the Dublin region then projects such as this need to be prioritised.

The Minister mentioned two self-imposed constraints on the Government. The first is the fiscal compact, and we made an argument at the time of the referendum about the implications that would have for capital spending. Even within these restrictions, however, the Government's proposed capital plan is under-strength and unambitious. For some time, the State has been below the OECD average for spending on capital infrastructure, and that state of affairs continues. This project has been long-fingered for too long. Massive amounts of freight travel through the surrounding villages, which is having a detrimental impact on the communities there, and it will be a serious loss for Cork, Ringaskiddy, Carrigaline and the whole harbour area, not to mention the southern part of this country, if this is not delivered soon. A starting date in 2021 is far too late, and by then Cork and the region will already have lost out on billions.

Incidentally, the Minister mispronounced my name. I am Deputy Ó Laoghaire.

Deputy Shane Ross

I apologise for that. I did not mean to do so.

I understand what the Deputy is saying, but I come across people putting similar cases for their own areas every day. I am utterly sympathetic to the needs of the Cork area, particularly its need for jobs, but we are working within very serious financial constraints. We would prefer not to be working within financial constraints, and this is a particularly expensive project, as are all roads of this sort. We have to prioritise them, as there is very little money for them before 2019, 2020 and 2021. It would be wrong of me to come to the House today and promise that it will be prioritised or brought forward. In any case, the scheme does not yet have the necessary approvals, though some others in the area do have them. In April this year TII, in conjunction with Cork County Council, held a public consultation into the proposed route and the business case in respect of the project is being finalised for submission to my Department and the Department of Public Expenditure and Reform. Those procedures have to be completed.

While I am sympathetic, the Deputy has to realise that we have a fundamental problem with the roads in this country. The 99,000 km of roads are a huge albatross around our neck, as they have to be maintained. This is massively expensive, and much more money is spent on maintenance than on actual building projects. If the Deputy or other Deputies would like to stop the maintenance and start building, they should say so, but this is a problem that we aim to ameliorate in 2019, 2020 and 2021, when we have great hopes for growth.

We hope to be able to indulge ourselves in capital expenditure of this sort, which is absolutely necessary, but I cannot hold out any promise. I cannot say that if matters improve I shall push for roads and other projects of this sort to be prioritised and brought forward. In the meantime, I will do everything I can to hasten-----

Dáil Éireann debate - Tuesday, 19 Jul 2016