Dáil Éireann debate -
Tuesday, 1 Feb 2022

Vol. 1017 No. 2

Saincheisteanna Tráthúla - Topical Issue Debate

Pigmeat Sector

Deputy Matt Carthy

I welcome the fact that the Minister for Agriculture, Food and the Marine is here. It is good to see a senior Minister taking a Topical Issue matter. I hope his presence is a recognition of the importance of the pig sector and the crisis it faces. The pig sector in Ireland is a vital component of our rural economy, albeit one that is often under-recognised. Almost 10,000 jobs are directly and indirectly supported by the sector. There are 1,675 pig farms across the State, 1,108 of which have five pigs or fewer. The pig sector is the third largest agrifood sector in the country and exports of pigmeat alone were worth over €893 million in 2020. The industry is concentrated in particular parts of the country, my constituency of Cavan-Monaghan being a prime example, and it is an integral part of the local economy in those regions. Put simply, if the pig sector is in trouble so too are those rural economies, and the sector is in big trouble. It has been hit hard by what I have heard described as a perfect storm of crises. Any one of those crises would have been a calamity but together they represent an existential threat, unless real action is forthcoming.

In the first instance, Brexit has had a devastating impact. Britain is the industry's most important export market and exports there are down 14% since Brexit. Transport costs have militated against any real prospect of sourcing alternative markets. Input costs have also gone through the roof. The cost of feeds such as barley and wheat has increased by 50% and increases in energy costs have hit hard. I spoke to one pig farmer today whose gas bill has increased from €10,000 a month to €40,000 per month, while electricity price hikes are also having a severe impact. Input costs are going up and factory prices are falling. To compound the situation, the capacity of processing plants is at a crisis point due to staff shortages. This results in delays in getting pigs to factories and every day delayed means further increased costs. If those delays result in pigs becoming out of specification there is a further cost of up to €50 per animal. In essence, we have insufficient slaughter capacity, which means farmers are paying more to feed pigs for which they receive less. There is an immediate cash flow crisis but it did not happen overnight.

Many Deputies have been raising this not only here but also in the Assembly because there is a North-South aspect to this issue. I acknowledge that the Department established a pig sector round table early last year. Clearly there has been plenty of talk about the crisis the sector is facing but action is now required because we simply cannot wait for transport costs to decrease or for the new deadline for veterinary alignment with Britain. We need action in the first instance on the staffing crisis in the processing plants. The Minister previously referenced his engagements with the Department of Enterprise, Trade and Employment regarding permits and reported progress but pig farmers are telling me they have not seen evidence of that progress. I ask the Minister to outline what is causing that delay. Can he assure us that there will be physical evidence of an increased workforce in the coming days? I also note that the Minister has engaged with banks and the Strategic Banking Corporation of Ireland, SBCI. I ask him to explain what the outcomes of that will be. Will there be increased funding to the SBCI ring-fenced for the pig sector? Will there be relaxed conditions in order that farmers who have already been denied finance by their banks will be supported?

Farmers tell me they are being refused finance, especially due to the volatility, for the alleviation of which we are encouraging them to take the loans in the first place. Will the Department ensure all levies being imposed on these farmers are suspended for the duration of this crisis?

Considering the impact of Brexit, will the Government deliver direct supports via the Brexit adjustment reserve? If the reserve cannot be used for this sector at this time, it is difficult to see how any farmer will ever be able to secure funding from it.

Minister for Agriculture, Food and the Marine (Deputy Charlie McConalogue)

I thank Deputy Carthy for raising this important and immediate issue. The continued development of the pig meat sector is a real priority for me, given the pivotal role the industry plays in the national economic context, which the Deputy outlined in terms of it being the third-largest grossing sector in the agrifood sector. It supports approximately 8,000 jobs which span production, slaughter, processing, feed manufacture and services.

Our pig farmers have always been remarkably resilient but I am acutely aware of the challenges they face at present. The sector throughout the EU has faced significant challenges in 2021 including the impact of African swine fever in a number of member states and consequential loss of third-country markets. Obviously, this has had a knock-on effect on supply and prices within the Single Market.

The average price paid for pigs in Ireland has fallen in recent months, in line with trends throughout the EU. The 2021 average price was more than 8% lower than that of 2020 and as of 23 January, the average price for grade E pigs came in at €140 per 100 kg, which is more than 8% lower than the same week last year. However, this is still well above the EU average price.

At the recent AGRIFISH Council, I clearly expressed my concerns about the difficulties facing the Irish pig meat sector both in terms of the ongoing impact of increases in fuel, fertiliser and energy prices over recent times, which put margins under further significant pressure, and the sustained nature of the difficulties experienced on the pig meat market. I sought the rapid deployment by the Commission of appropriate solutions on both issues.

I recently met with farmers from the Irish Farmers Association, IFA, pig committee to discuss these concerns. Following this, the Minister of State, Deputy Heydon, and I met the main banks to discuss the current challenges in the pig meat sector and the importance of their ongoing support. The importance of the sector and its overall resilience were emphasised, as well as the importance of the banks' support to their customers through the current downturn in the business cycle. The key message was that farmers experiencing cash flow difficulties should engage with the banks as soon as possible in order to discuss options. The banks made it clear that they remain committed to supporting their customers in the period ahead.

Separately, the Minister of State, Deputy Heydon, and I met with the Strategic Banking Corporation of Ireland to discuss the Brexit impact loan scheme and the Covid-19 credit guarantee scheme, both of which are financed by the Department of Agriculture, Food and the Marine, in partnership with the Department of Enterprise, Trade and Employment. These finance schemes can be used for working capital finance and include features which address the current financial needs of pig farmers.

We are all aware of the cyclical nature of the commodity markets which for the pig sector at this time is compounded by rising input costs. Pig farmers are being squeezed at both ends. During this period, maximum flexibility of financial matters is central to ensure the ongoing viability in the pig sector. I will also shortly engage with and discuss the matter with members of the feed industry as well.

The Minister of State, Deputy Heydon, chaired the pig round table last week and had a further detailed discussion with all the stakeholders, including farm representatives, banks and the processing and feed industries on the current difficulties facing pig farmers, arising both from the lower market prices and the significant increase in input costs, which are likely to continue for at least the first half of this year.

In terms of State supports, Bord Bia outlined the significant efforts being made to promote quality-assured Irish pig meat in the domestic and export markets and Teagasc outlined the dedicated advisory supports being provided to pig farmers. My Department and I continue to monitor the market situation very closely and are examining possible measures to assist in supporting farmers through the significant market disturbance.

I deeply understand the considerable challenges faced by our pig farmers and the significant stress they are under. I will continue to engage with them over what I know will be a challenging period ahead and seek to support them through that.

Deputy Matt Carthy

I saw reported in one media outlet that in 1986, what pig farmers were receiving equated to €1.40 per kilo. Today, 36 years later, they get €1.42, which puts in very stark terms the broader challenge faced by this sector, like many of our other agricultural sectors. I welcome the initiatives the Minister has taken to date, but we now require clear resolve in terms of how we can allow our farmers to get over this crisis and flourish into the future.

The Minister did not mention the issues pertaining to the workforce in the processing sector. He has outlined that 2,000 staff will come into the sector. The big question is when that will happen. It will make a difference but it needs to happen quickly.

The second point is on the SBCI. Will measures be put in place for those farmers who have already been in contact with their banks but have been shown the door in order that they have a realistic prospect of returning there? What measures has the Minister discussed with them?

The Minister spoke about what he raised at the AGRIFISH Council. Can we point to anything productive coming from that which says this will allow the situation to be resolved?

I will return to the point I made about the Brexit reserve fund. It was the story of Irish agriculture, by and large, that allowed us to be successful in making the case for the fund in the first place and for Ireland to have a significant portion of it. To date, farmers have not received any direct supports. This is a clear example of a sector that has been impacted by Brexit and would benefit from that fund. Is the Minister open to examining whether the Brexit reserve fund can be used in this instance? Will he expedite efforts to secure and deliver funding from that mechanism?

Deputy Charlie McConalogue

I thank Deputy Carthy for the constructive way he has raised this issue with the focus being on how we can support pig farmers at a very difficult time. I have been engaging with the Department of Enterprise, Trade and Employment and the Minister of State, Deputy English, in particular, about the workforce. We will work to try to expedite the capacity for workforce permits for the processing sector, which is very important and has been under pressure.

With regard to the SBCI and loans, I explored the option of a potential separate pig fund or a new scheme for pigs. However, from meeting with banks and the SBCI, it is clear that the Brexit loan scheme is in place and the Covid credit guarantee scheme is available and they apply to pig farmers here. They provide an 80% State-backed guarantee of the loan funding and therefore, lower interest rates and unsecured credit of up to €500,000. Those schemes are very much in place and there is no limit to the amount of funding available through them. Both of them are open for pig farmers to apply and the banks are being very clear with farmers on that. Lower interest rates and unsecured credit are provided. That support mechanism is there.

With regard to the Brexit adjustment reserve or other measures, I will explore all options. Obviously, there is the issue of state aid. Capacity for any schemes would have to be led and provided for at European level for anything of significance to be available to the sector. I will continue to raise it and engage with the Commissioner and the Commission on that. They committed to exploring it and closely monitoring the situation, but I will be raising it again. I will be in Strasbourg for the EU Council meeting this weekend and will raise it once more.

Like Deputy Carthy, I am very much aware of the pressure and stress facing farmers here. Agriculture is a difficult industry, but of all the sectors within it, I often look at the pig sector and wonder at the stresses and strains associated with its cyclical nature. This is an example of a significant cyclical impact. When one is at the low end, it is very unclear when one will come out of it. I want to work with farmers to support them through this period.

Road Projects

Deputy David Stanton

I thank the Ceann Comhairle's office for selecting this matter and the Minister of State, Deputy James Browne, for being here to respond to this issue regarding the N25 between Midleton and Carrigtwohill.

This particular stretch of road is one of the busiest in the country. There are 30,000 vehicle movements per day on it. It is also extremely dangerous and the local authority is worried about the danger posed by this road. There are medians on it, grade junctions and residences going straight onto the road. It is bumper-to-bumper traffic at 100 km/h and 30,000 vehicles per day. That is the first point: the issue of safety and lives being put at risk. There have been a number of accidents on that road already.

The second point I want to make on why this road should be upgraded is that there is a very large industrial site on the roadway at Ballyadam that has been lying idle for the past 12 years. Amgen was to go in there 12 years ago. That did not happen. It has been lying idle for 12 years now and it is fully serviced. It is one of the few sites in the Munster region of this scale and size, but it cannot be used because the road network is totally inadequate. If you exit the site, you have to go down to Midleton to come back to Carrigtwohill. The head of IDA Ireland, Mr. Martin Shanahan, was in with us last week at the Joint Committee on Enterprise, Trade and Employment and he agreed with me this is a major problem. Therefore, there are jobs now going begging because of this road as well.

The third reason is we all know there is a housing crisis. There is a plan that has been worked on for quite a number of years and is quite advanced to build 5,000 houses in the area. That is now at risk. The Minister of State can imagine that number of houses. Transport Infrastructure Ireland, TII, has objected to planning applications that have been lodged because the road is inadequate.

We have a situation where we have a very unsafe road, we have a very large industrial site lying idle for 12 years, and we now have thousands of houses being put at risk and being objected to by TII because the Department is refusing to fund the road.

Consultants were appointed to carry out feasibility studies on this on 21 January 2020. I think Deputy Christopher O'Sullivan was the mayor at the time. A lot of work has been done. There has been €1.3 million spent on this feasibility study. That is now at risk. That is gone. By the time this comes back again, all that work might have to start again. There have been two sets of public consultations. They were about to announce the preferred route and start on the compulsory purchase order, CPO, and they were told there was no more money and to stop everything.

A total of €100 million has been expended already on the industrial site I spoke about. The Department of Housing, Local Government and Heritage has spent €4.5 million on the housing. All this is now at risk and there has been no explanation. I wrote to the Minister for Transport, Deputy Ryan, about a month ago. I did not get an acknowledgement or a response, which I am very disappointed about.

This is extremely serious for our area. There are lives, safety, jobs and housing at risk. I would like to know why this is happening. The Minister of State has come in to address this matter and I thank him for being here. The local authority officials are completely flummoxed because they put a pile of work into this over the past four years. The county councillors are worried about it and I am very concerned about life and limb and safety on this road. There have been a number of fatal accidents on it already. Given the speed of the traffic, the way the road junctions are arranged is lethal. There will be a pile-up some evening and there will be many people killed.

This work is well advanced. A great deal of money has been spent. That money will now go to waste unless the Minister changes his mind, engages on this and allows the next phase to go ahead, which is to announce the preferred route and start the CPO process. That will not cost a whole lot of money. Let us move the project on and, eventually, maybe in four or five years' time, we might see some work there. My worry now is nothing might happen for another ten years.

Minister of State at the Department of Justice (Deputy James Browne)

I thank Deputy Stanton for raising this important matter on the urgent need for the upgrade of the N25 national road between Midleton and Carrigtwohill, County Cork. It is not the first time the Deputy has raised it. He has been raising it consistently with the Minister.

The Minister for Transport has responsibility for overall policy and Exchequer funding in relation to the national roads programme. Once funding arrangements have been put in place with Transport Infrastructure Ireland, TII, under the Roads Acts 1993-2015, and in line with the national development plan, NDP, the planning, design, improvement and upgrading of individual national roads is a matter for TII in conjunction with the local authorities concerned. TII ultimately delivers the national roads programme in line with Project Ireland 2040, the national planning framework and the national development plan.

In the new national development plan launched in October 2021, approximately €5.1 billion is earmarked for new national road projects to 2030. This funding will enable improved regional accessibility throughout the country as well as compact growth, which are key national strategic outcomes. The funding will provide for the development of numerous national road projects, including the completion of projects that are already at construction stage and those close to it, as well as the development of a number of others. The N25 Carrigtwohill to Midleton project is included in the list of projects to be evaluated for potential prioritisation during the period covered by the national development plan.

Due to the fact the greater portion of the national development plan funding for road projects becomes available in the second half of the decade, there is a constraint on the funding available for new projects this year. However, most national road projects in the national development plan will continue to be progressed in 2022. Projects such as the N25 Carrigtwohill to Midleton that do not have the required funding to progress this year remain part of projects for consideration in the national development plan and will be considered for funding next year.

Technical advisers have completed their assessment of the route options for the N25 project and have determined the preferred solution. Improvements to crossings over this very busy section of the N25, to enhance active travel, are being considered as part of the scheme. Given funding constraints as referred to earlier, TII was unable to provide an allocation for this project in 2022. Progression and potential prioritisation of the project to design and development of the business case for decision gate 1 under the public spending code will therefore not be possible this year. The delivery programme for the project will be kept under review for next year and considered in terms of the overall funding envelope available to TII.

Deputy David Stanton

I thank the Minister of State for his response. TII has written to me to tell me, "Due to limited funding available ... and the many competing demands for that funding, we are unable to provide a grant allocation to enable the project to advance in the current year", and further details on the grant allocation process can be found in the road allocation grants, which I have looked at. This came out of the blue at the end of the year, that funding was not available. The local authority expected the funding to be made available. That did not happen.

I stress the urgency of the safety aspects of this road. If you travel on this road some evenings and some mornings, which are extremely busy, you take your life in your hands. There are cars travelling at 100 km/h bumper to bumper and there are other cars trying to get in and they cannot. The slip roads are too short. There are median junctions where people are trying to cross and there are people trying to come out of their houses onto this road. It is very dangerous.

There is no short-term solution here but I am very concerned that this is now being put on the long finger. It is said we may be considered for funding next year. That is not good enough. On top of that, we also have a site sitting there for 12 years, with which IDA Ireland states it cannot do anything, and we have thousands of houses at risk, with TII itself objecting to the housing going ahead. One half of the Administration does not seem to be talking to the other. The Department of Housing, Local Government and Heritage is promoting housing and giving local infrastructure housing activation fund, LIHAF, funding to the tune of €4.5 million, and people put in planning applications in good faith thinking this road project will happen to enable them to get onto the roadway. We also have a railway at the other end, which is very welcome. There will be a great deal of money put into it to electrify it, which is very welcome, and we have cycleways, which also might be at risk because of this.

I ask the Minister, if he is listening out there somewhere, to have another look at this and to let the project advance to the next stage. It does not cost that much to allow it to go to the next stage, but to delay it now and to stop it creates a concern, and the local authority is concerned as well, that this might be stopped indefinitely with no progress in sight. I thank the Minister of State for listening to me.

Deputy James Browne

I thank Deputy Stanton for raising the important issue of the funding of the N25, to upgrade it between Carrigtwohill and Midleton. In particular, the Deputy raises the important concerns around safety, employment and housing. I will certainly bring the Deputy's concerns to the Minister's attention.

As I mentioned, the N25 Carrigtwohill to Midleton project remains on the list of projects included in the national development plan. Approximately, €616 million of Exchequer capital funds have been provided to TII for national roads in 2022. In line with the national development plan and Government policy, TII is allocating national road funding to local authorities for 2022 in a manner that seeks to achieve the following key outcomes: protection and renewal of the existing national road network; progression of major projects in or near construction; progression of major projects that are pre-construction but well advanced in the development pipeline; and prioritisation of any remaining funds for projects that provide for local bypasses and compact growth in Ireland's towns and villages.

Heritage Sites

Deputy Christopher O'Sullivan

It is first important to describe Desmond Castle, although I will not do it justice. It is a stunning work of old architecture, a 500-year-old castle tower built by the FitzGerald family and located in the heart of historic Kinsale. Kinsale is a terrific town with so much going for it. It is a tourism destination that is well known as a foodie attraction. History is very important to the town. It has bucketloads of history and has been the site of many historic events. Desmond Castle is at the heart of everything historic in Kinsale. It is a seaside town with a rich maritime history, and this was the old customs house many hundreds of years ago. It is also known as the French Prison because it was used to house French prisoners during the Napoleonic Wars, and most recently it was a popular wine museum, until approximately four years ago. At that time, the Office of Public Works, OPW, decided to close the building and that is where the problems began. There has been structural and water damage because it has been closed. There has been no heating in the building, which has led to further damage within the structure. This stunning building of such significance is deteriorating in front of our eyes and the OPW needs to intervene.

Kinsale History Society, an active and terrific group that values the town’s heritage and history, has a plan for a programme of remedial works, first and foremost, to repair the castle and prevent any further damage. Second, and this is probably the key element of the group's plan, it wants to turn this fantastic building into an interpretative centre for the famous Battle of Kinsale of 1601. This building is of such importance and would be such a good fit because it was used as a centre for the Spanish forces during that famous battle. We all know the significance of the Battle of Kinsale, a turning point in Irish history. Many historians describe it as the beginning of the end of Gaelic culture and contend it was one of the major events that led to the eventual plantation of Ulster.

I urge the Minister of State with responsibility for the OPW, and the Department of Public Expenditure and Reform, to see the value in turning the building into an interpretative centre. It would be a perfect fit for Kinsale, which is both a successful foodie and tourism town and, importantly, an historic town. We have seen the success of Charlesfort, which is one of the flagship centres of the OPW, and this would be a perfect historic complement to that. I urge the Minister of State, Deputy O'Donovan, to do everything possible to ensure action will be taken in order that Desmond Castle will be turned into an interpretative centre.

Deputy James Browne

I thank the Deputy for raising this important issue of the future of Desmond Castle in Kinsale, a beautiful town I have visited on a number of occasions. His passion for the heritage and culture of that part of County Cork is well known. I am taking this matter on behalf of the Minister of State with responsibility for the OPW, Deputy O'Donovan.

Desmond Castle in Kinsale, which is also known as the French Prison, is one of more than 700 national monuments throughout the country that are conserved, maintained and managed by the OPW. As the Deputy will be aware, the castle is closed at the moment for conservation works and has not been accessible to the public since the end of 2017. When it was open for visitors, it operated as a town centre seasonal site during the summer months and was managed by OPW staff in conjunction with the other major national monument site in Kinsale, namely, Charlesfort. The latter attracts approximately 100,000 visitors each year, so the importance of these locations to the local community and economy is well recognised.

Desmond Castle was built by the Earl of Desmond around the year 1500 and is a fine example of an urban tower house, with a three-storey keep and storehouses to the rear. It has had many uses over the years. It was originally built as a customs house to meet the international trade coming into Kinsale by sea. It served as a prison for some time in the 18th century and was an ordnance store supplying the local English garrison in Charlesfort during the Battle of Kinsale of 1601. It then served as a local workhouse during the Great Famine of the mid-1840s. By the early decades of the 20th century, however, the castle had fallen into decay, before it was taken over by the then Commissioners of Public Works and declared a national monument in 1938. The varied nature of its history has to some degree caused confusion about the site and why it is noteworthy. In recent times, the castle was home to an historic wine collection, and while this was an interesting exhibition and linked in to Kinsale's reputation as a food tourism location, it did not really work to copper-fasten a strong, historic context and theme for the castle.

The site is currently closed because extensive conservation works are required and the castle was considered a risk to visitors if kept open. Due to water penetration issues, the building requires a full programme of fabric repair and refurbishment works. Several surveys have been completed on the building, including a mechanical, electrical and digital survey and a full building fabric report. The works needed to deal with the water penetration issues have also been identified. This is a multi-phased and complex repair project and the OPW is now seeking to appoint an external conservation architect for the entire repair and refurbishment programme, from preliminary design to handover. Scoping documents are being prepared for the procurement and appointment of the external conservation architect. An interpretation consultant will also be brought on board to undertake the design of the public interface when all conservation works have been completed. Given the castle is a national monument, the consent of the Minister for Housing, Local Government and Heritage will be required for all repair and conservation works.

Deputy Christopher O'Sullivan

I thank the Minister of State for his comprehensive response, which contained a good chunk of interesting history on the castle's previous uses. I take from the reply that there is a plan to repair and conserve the building, given scoping documents are being prepared. That work should be carried out fairly rapidly because the castle has been closed for four years and people are concerned about its structure.

I reiterate the point Kinsale History Society wants me to make regarding its vision for the use of this building as an interpretative centre commemorating the world-famous Battle of Kinsale of 1601, such a famous event in both Irish and wider European history in terms of the impact it had Europe-wide. There is a fantastic opportunity here to enhance Kinsale as a tourism town and the gourmet capital of Ireland, a reputation it has rightly earned. As an incredibly attractive and historic destination, too, there is a great opportunity for us to create something in Desmond Castle with an interpretative centre on the Battle of Kinsale of 1601 to complement the already-incredible attraction of Charlesfort, which, as the Minister of State mentioned, attracts 100,000 visitors per year. Will either the Minister of State with responsibility for the OPW or departmental officials meet the Kinsale History Society to at least discuss the group’s proposals for the castle?

Deputy James Browne

I again thank the Deputy for raising this important matter of the future of Desmond Castle in Kinsale. As I said, this is a complex project with several elements, all of which will have to come together when work starts on the site. Appointing the specialist design team is the first step in the process, which has begun. While it was anticipated the repair and conservation project would be well advanced at this stage, the impact of the pandemic on work programmes and the redirection of internal resources cannot be overstated. Work has commenced on assembling the full design team, however, and I assure the Deputy progress is being made.

As for the question on engagement, I will bring his concerns to the Minister of State, although I am sure all necessary engagements will be carried out. The OPW expects the repair works contract will be carried out by external contractors, with particular conservation elements undertaken by the OPW's skilled workforce.

The target is to have the full design process under way and potentially completed by this year. The OPW appreciates the importance of the castle locally and it is not ideal that the property has remained closed to visitors. The completion of the design phase of the project was also impacted by the pandemic, as I stated, and the OPW’s internal resources came under pressure. However, the OPW sees an opportunity to consider the site afresh, with a view to interpreting its varied history and bringing it to the attention of more visitors to the region. The design phase of the project, therefore, will bring a new focus on the history of the property, with the 1601 rebellion perhaps being a central theme that can be explored.

I thank Deputy Christopher O'Sullivan for raising this important matter. I will relay all of the Deputy’s comments to the Minister of State with responsibility for the OPW.

Local Authorities

Deputy Catherine Connolly

I thank the Minister of State, Deputy Browne, for standing in, although I am not sure why the relevant Minister is not here.

This is a serious issue in regard to Galway city, a city that has been designated as one of the five cities to grow its population by 50%, yet here am I, raising the matter as a Topical Issue to draw attention to the crisis in Galway. We know from councillors’ reports and from press reports that there is a staff crisis. That staff crisis seems to have arisen for a number of reasons. First, there is a legacy issue and, second, there seems to be a cap, although it is difficult to actually work out whether the problem is with the Department of Public Expenditure and Reform setting a cap. Then, there seem to be management issues in regard to not extending a temporary panel.

The upshot is that we now have a situation where there is over a 10% vacancy rate in a city that has a budget of €103 million and serious plans. All councillors in the area received a presentation lately, Regenerating Galway city up to 2030, which I have with me. It sets out ambitious plans for public and private development of up to €4 billion, yet we cannot continue a service that was brilliant at collecting bulky services at a time when bringing people on board is extremely important.

Galway people have always shown the way. What do management in Galway do in a crisis? They cut the bulky service and they cut the sweeping of the city. I do not know where the problem is. I have tried to find out and I was there myself for a long time. It seems to me that, with a budget of €103 million in a city that is growing all the time, there is something seriously wrong where we have a paper report telling us this. The director of services said the council had an over-dependency on the contract system because that was the only option, but they are trying to get the Department to agree to a new headcount. He said they are having difficulty engaging with the Department and that they have been talking to them for a year and a half. I presume that is both Departments or is it just the Department of Public Expenditure and Reform? The chief executive said cuts to services were temporary and that they were in the process of recruiting general operatives.

With regard to general operatives, which must be the easiest part of the solution, there was a panel. Towards the end of January, that panel was not renewed and the general operatives who were on temporary contracts were let go. Rather than extending the panel for a particular period until we got permanent general operatives, the wise management let them go and decided to have a gap in service.

I could go on but I will not. I hope the Minister of State has a response that makes some sense as to where the solution to this problem is and the role of both Departments, the Department of Public Expenditure and Reform and the Department of Housing, Local Government and Heritage.

Deputy James Browne

I thank Deputy Connolly for raising the important issue of staff shortages in Galway City Council which have led to the cancellation of some essential services in the city. I would like to clarify that under section 159 of the Local Government Act 2001, the chief executive is responsible for staffing and organisational arrangements necessary for carrying out the functions of the local authority. I am aware that Galway City Council has some current staffing gaps which have been exacerbated by the impact of the Covid-19 Omicron variant. However, the number of staff unavailable due to Covid-19 is reducing. In addition, there are other staffing gaps deriving from the natural rotation of staff. I understand that active recruitment is ongoing, with a view to filling the immediate gaps in the next two weeks.

With regard to staffing numbers generally, Galway City Council staff numbers reached their lowest level at 418.5 full-time equivalents in 2015 and, since that time, there has been a managed upward trend, reaching 504.4 full-time equivalents by the end of 2020. There will continue to be gradual increases in staff numbers over the next few years to reflect the new skills required within the sector.

Local authorities will be undertaking a new strategic workforce planning exercise, which will focus on strategic priorities, deployment of current staff to deliver key priorities and the identification of skills gaps going forward which will be required to meet the strategic priorities. An ambitious local authority people strategy was launched in 2018 and sets the strategic human resources agenda for the period 2019 to 2024.

Across all schemes and funding sources, my Department provided €57.2 million in 2019 and €82 million in 2020 to Galway city. The increase year on year is due to the Covid support provided to the local government sector since the start of the pandemic. The allocation to Galway City Council from local property tax, LPT, for 2022 is €6.7 million, of which €4.3 million is for the authority's own discretionary purposes, with the remainder used to fund the provision of housing services in the city. It is relevant in this context that the elected members of Galway City Council have had the option over the past eight years to increase the LPT rate if additional income is necessary. As with all budgetary matters, such decisions are reserved functions of councillors. In that time, Galway city has never applied any local variation to the LPT rate.

As has been the case since the outset of the Covid-19 pandemic, my Department will continue to engage regularly and constructively with the local government sector and with individual local authorities on the impacts of the pandemic.

Deputy Catherine Connolly

I am not sure which Department the Minister of State is representing.

Deputy James Browne

I am representing the Department of Housing, Local Government and Heritage.

Deputy Catherine Connolly

Perhaps the Department of Public Expenditure and Reform should be here. There is something seriously wrong when we get an answer that they have not increased or decreased the property tax. That is an unacceptable answer. What we have is management, the CEO, who is on a substantial salary, and the director telling us they need approval if they are going to take on new staff. There is a simple and straight answer to that. If the Minister of State is not able to give it, he should just tell us that.

When I get an answer like this, I point out that I spent 17 years on the council and know exactly what powers local authorities have. We have a city manager saying the city council does not have the approval of the Department, or at least the director of services is saying that. We then have a practical matter like a panel for general operatives that was not extended so we could have avoided this break in service. One of the answers given was that they need the approval of the Department even for an addition to the employment of general operatives. I find that very hard to accept because I understand it is only above a certain grade and a certain salary that they need the approval of the Department. Will the Minister of State clarify that for me tonight? Does the city council need the approval of either Department in regard to extending a panel for general operatives so there is no gap in services or taking on extra general operatives or both? Does that need the approval of the Department?

Generally, does the Minister of State think it is acceptable for a city like Galway, destined to be the city on the western side that will balance the development of Dublin, which is out of control, to be struggling to provide basic services, something as basic as the collection of a bulky service which the people of Galway have come to use and trust? Is that acceptable? How are we going to tease this out? We have this presentation from the management in regard to the amount of duties and obligations they have and the staff they need. We then have an answer like this from the Department. Something is seriously amiss.

Deputy James Browne

Unfortunately, I do not have a specific answer on the need for approval by a Department in regard to extending panels or hiring specific staff, but I will bring that to the attention of the Minister for Housing, Local Government and Heritage and endeavour to get an answer for the Deputy.

I will finish with an important point which, bearing in mind the concerns raised, puts the situation into context. Since the onset of the Covid-19 pandemic has presented challenges to local authorities in respect of the delivery of services, in recent weeks, in line with trends among the general population, local authorities have experienced heightened disruption due to the transmissibility of the Covid-19 Omicron variant, meaning that a number of staff were unavailable for work. With the ongoing return to the Galway City Council workforce of staff affected by Covid-19 and new staff taking up duty in the impacted departments of the council shortly, the temporary disruption to two services out of the significant range of services provided by the council will be resolved in the coming days.

Cuireadh an Dáil ar athló ag 11 p.m. go dtí 9.12 a.m., Dé Céadaoin, an 2 Feabhra 2022.

The Dáil adjourned at 11 p.m. until 9.12 a.m. on Wednesday, 2 February 2022.