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Seanad Éireann debate -
Thursday, 24 Jan 2013

Vol. 220 No. 5

Adjournment Matters

IDA Site Visits

I thank the Cathaoirleach for yet again accepting my request for an Adjournment matter to be discussed. It is a useful opportunity for Senators to question Ministers on important matters relayed to us by people, as we do not have the rights evident in the Dáil.

Today's issue arises from a parliamentary question in the Dáil which revealed to my colleague, Deputy Dara Calleary, that there were no IDA Ireland site visits to County Meath last year. That is disappointing because County Meath has a number of significant advantages over many other parts of the country, including a very highly skilled workforce that, by and large, commutes to other counties for employment. We also have some large industrial properties, most notably the former Quinn premises in Navan, which badly needs a tenant to provide jobs and keep the economy moving.

The excuse is often given that County Meath is not in the Border region and cannot avail of the same grants but that ignores the fact that only last year, Coca-Cola - on its own initiative and after many years of planning - opened its European, Middle East and Asian headquarters in County Meath. As I understand it, there were no grants available to the company but the other factors that encourage companies to locate in County Meath appealed to it. As I mentioned, those factors include a skilled workforce, the availability of premises, particularly in the urban parts of the county, and the convenient distance to Dublin. Dublin Airport may as well be a local airport for County Meath and there are also convenient connections to local transport hubs and the transport network in Meath, which includes notable motorways, rail and other modes of transport, including buses.

Meath has many advantages, with its educated workforce crying out for jobs in the local area. There are many advantages to locating employment in County Meath and attracting multinationals to the county. If people have jobs there will be fewer people commuting to Dublin and energy costs will be reduced. People would also be happier if they worked closer to home. It is very disappointing that IDA Ireland does not see it as appropriate to bring companies to the county. Alltech in Dunboyne is a major international company and the Minister would be familiar with it.

There are so many companies willing to work in County Meath but the people of the county are demanding that IDA Ireland does its bit to bring in people. The fact that there was no site visit at all last year tells me that the organisation is simply not interested in County Meath, which is disappointing. I urge the Minister to change that position.

I thank the Senator for raising the issue. County Meath is part of IDA Ireland's eastern region, which includes counties Dublin, Kildare, Wicklow and Meath, and overall, the region has performed extremely well. There has been increased employment in the past two years totalling 6,000 jobs, compared with a net job loss in the previous four years of 7,000. There has been a dramatic turnaround in the performance of the eastern region. I can understand the Senator's disappointment that not more of the new job creation is occurring in County Meath, although the people of County Meath have gained an advantage from the strength of performance in the wider region.

This is a bigger issue in the context of IDA Ireland. I had the privilege to be in this office 15 years ago and there has been a dramatic change in the profile of the sort of company that is picking Ireland as a location, which creates a difficulty in achieving a regional spread. Increasingly, companies involved with information and communications technology, medical devices and financial services come in clusters where Ireland has achieved competitive strength. They tend to be much more focused on gateway cities within regions, and IDA Ireland is increasingly focused on delivering effectively within those regions.

That is not to say IDA Ireland does not promote other areas, as it does so. Its representatives recently met people from Meath County Council to discuss the property solutions available. As the Senator mentioned, these include the Quinn building and the business park in Navan. IDA Ireland has recently got planning permission for a significant new site to ensure availability of properties for companies seeking to invest. Ultimately, IDA Ireland does not decide the locations that companies choose, which is a difficulty. Depending on their sectoral strength, companies look to different labour market pools. That is part of the wider challenge we face.

I have set a target, like the previous Government, that 50% of projects would be won outside Dublin and Cork, and IDA Ireland continues to work to that goal. For many years, under both this and the previous Government, it has not been able to achieve that target because of difficulties. Ireland must make a transition from an economy that got too big with construction and debt activity to an economy that can be built on exports and enterprise. We must look to our indigenous companies and the inherent strengths of regions. We will continue to seek to press all regions but companies ultimately come with a list of what is required in a region or particular location. Very often, those requirements narrow the focus, and we must work under such constraints.

Much of the work being done in the action plan for jobs looks to deepen the strength of our indigenous companies, building an export base and getting more companies who only consider the domestic market to expand into exporting. There is a big challenge to broaden what we regard as successful regional strategies for a county or region and deepen all elements rather than just seeing foreign investment as the only element.

I note the Senator's points but the eastern region is performing strongly. Overall, County Meath has just 14 foreign-owned companies, employing 1,200 people. The foreign sector is relatively small within the overall employment profile of the county. I continue to focus on achieving regional spread but this will come within the constraints of the types of company which are relevant. Compared with many years ago, companies are demanding research and development skills and very specific sectoral specialties which creates a constraint for the type of spread we want to achieve. I remain conscious of the need to continue to focus on this matter. I engage with IDA Ireland regularly in order to focus on regions that need support and to ensure there is a regional spread. The organisation must understand the dynamic of different companies and regions.

I thank the Senator for raising the matter, but it is not an area where we can just turn on a tap to solve the problem. It is heartening to see the turnaround in international confidence in the overall region and we are now attracting more companies. IDA Ireland is happy to work with Meath County Council and other players in the region to try to increase the attractiveness of Meath as a location for international companies.

I accept much of what the Minister says, but it is disappointing that there were no site visits. Site visits are, presumably, part of the way in which IDA Ireland attracts companies to Ireland, in that it offers a menu of places. I ask the Minister to be conscious of the Drogheda Business and Technology Park which is, in fact, located in County Meath. It has an international financial services company on site, but nothing else. While I underplayed the issue of grants and State support that can be given for Border regions and non-Border regions, that park is in county Meath, even though it is called Drogheda, and is not in a Border region. As there is a company there, companies come to these areas. Coca-Cola's European headquarters in County Meath is not far away. That was opened in the last two years. There are reasons for such companies to come to the area and I would like the IDA Ireland to support that further.

I thank the Senator for his contribution. IDA Ireland has already met Meath County Council and will continue to build a relationship in the county.

Bank Branch Closures

The issue I raise is one I mentioned briefly during my contribution on Private Members' business, for which the Minister was present. He might be familiar with what I will say. When banks are restructuring the Minister for Finance should ensure that, as they deleverage, they do it in a way that does not alienate local communities and leave them without vital services. We all know there is a need to reduce the size of the banks. After their excessive growth during the boom it would be naive not to expect them to undergo significant restructuring. However, the process of deleveraging agreed between the Government and the troika must not leave communities, particularly small communities in rural areas, without an adequate provision of banking services.

Given the volume of public money that has been pumped into the banking system, there is a social responsibility on bank chiefs and the Government to ensure the restructuring of banks not only makes commercial and economic sense but also social and community sense. I see the potential impact that recent bank closure announcements is having in my home county and particularly in towns such as Belturbet, Killeshandra and Kilnaleck. In many ways banks are the bedrock of communities and towns. They are the bedrock for businesses and also attract people into towns. When people are in the town they will call into local shops and other businesses in the area. That supports the local economy. However, once the bank branches are closed there will inevitably be a knock-on effect on the local economy and businesses.

Apart from the inconvenience these closures will cause for the customers of Ulster Bank in the affected locations, there is a more worrying dimension in terms of the provision of banking services in rural areas in the wake of branch closures by AIB, the former National Irish Bank and Northern Bank and the reduction in services by Bank of Ireland in other locations. We must consider the bigger picture and the impact on many rural areas, where the lesser alternative of online banking or mobile banking might be very difficult due to problems with connectivity. We must wake up to the fact that with the closure of small banks in rural areas, particularly in areas where the Garda stations have already been closed, there is a danger of more criminality and theft. Businesses must transport their money to deposit it in banks, which leaves the people concerned vulnerable to attacks.

We are watching the withdrawal of vital services from communities which already have been negatively affected by the economic downturn. On a personal basis, many customers, particularly elderly customers, will not travel the extra distance to the bank. They might not be able to do so. Where will they keep their money? This might result in people keeping more money at home, which will be another problem. It will make them the target of burglars, which does nobody any favours.

The closure of bank branches due to deleveraging marks the withdrawal of another vital service from rural towns and villages. The value of such services should not be underestimated because they are important for businesses and individuals in such towns and for people who are unable to travel longer distances to the nearest branch. We talk about economic regeneration in the indigenous economy and trying to achieve economic growth on a widespread geographical basis. In that context, we should examine how to retain as many of these bank branches as possible to serve the local communities and local businesses, rather than close them and make those local areas uncompetitive. Not everybody can conduct his or her banking online or by telephone and not everybody has the capacity to travel extended distances to branch offices. These points must be made to the banks in question when they are being restructured.

I thank the Senator for raising this matter. Being from a rural background I understand her concerns very well. Unfortunately, a number of bank branches are being closed in my constituency also.

As the Senator will be aware, operational decisions for the covered banks - AIB, Bank of Ireland, Irish Bank Resolution Corporation, IBRC, and Permanent TSB - remain the responsibility of the boards and management of the institutions. Notwithstanding the fact that the State is a significant shareholder in these institutions, we must ensure the banks are run on a commercial, cost-effective and independent basis to ensure the value of the banks as an asset to the State. The relationship frameworks between the Minister for Finance and each bank define the nature of the relationships with those banks as per the memorandum on economic and financial policies agreed with the European Commission, the European Central Bank, ECB, and the International Monetary Fund, IMF. These frameworks were published on 30 March 2012 and can be found on the Department of Finance website. Likewise, the State has no control over operational decisions made by the non-covered institutions operating in the State.

As the Government has stated previously, it is an inevitable but unfortunate consequence of the necessary restructuring of the banking system, and return to viability of the sector, that branches in certain towns and villages across the country will be closed. Each branch is looked at on an individual basis regarding income and costs. Banks also assess the level of usage of each branch in the decision-making process. Other factors affecting the decision may include whether the premises is owned or leased. The Government appreciates that any branch closures will have an impact on the affected towns and villages. However, it is an inevitable consequence of the cost cutting programmes being undertaken across the banking sector. Nevertheless, to mitigate the impact of the branch closures on customers, both AIB and Danske Bank have developed a relationship with An Post that allows customers to perform a range of banking functions in their local post office. In the case of AIB, additional banking facilities are available in over 90 selected post office outlets in areas affected by branch closures. AIB has also launched a new mobile bank service to provide certain banking services to customers in remote locations.

All the banks are keen to embrace new technologies to enhance the customer experience and there has been increased investment in new and innovative ways for people to bank. The availability of Internet and telephone banking with mobile and iPad applications allows customers the opportunity to perform banking transactions outside traditional hours. It is now possible for customers to access banking services 24 hours a day and 365 days a year.

The Government is committed to the development of rural areas and supports this commitment with resources that aim to diversify the rural economy and improve the quality of life in rural areas. Programmes managed by the Department of the Environment, Community and Local Government such as the rural development programme and the local and community development programme continue to provide the financial resources necessary to support both economic and community activity in rural Ireland, thereby laying strong and sustainable foundations for vibrant rural communities for the future. The Government is committed to the roll-out of broadband services to rural Ireland and will ensure all customers can avail of the full range of new innovative services provided by the banks.

Schools Building Projects Applications

I welcome the Minister of State. Last March I raised the matter of capital funding for Gaelscoil Philib Barún. I draw attention to the long campaign waged by the board of management, the principal and the pupils at the school to have prefabs, which are in place to teach most of the pupils, transformed into buildings in order that pupils can have proper accommodation. The project upon which the school has embarked will provide a new eight-classroom replacement school, teaching accommodation for three full-time special education teachers and the appropriate ancillary accommodation, including a general purpose room. A site of 2.5 acres has been identified. There is one building in the school, but it is surrounded by prefabs. The response last year was that, because the Department is looking at growing needs and changes in demographics mean we need to ensure new schools are built, it was not possible to find replacements for prefabs in all schools across the State. There has since been a site visit by the Minister and officials of the Department of Education and Skills, and positive indications were given to the principal and the board of management. A public meeting organised by the school and attended by most of the Oireachtas Members put pressure on us to raise the issues with the Minister.

The school opened in 1985 with 29 pupils. It was a one-teacher school and moved to new premises in 1989 when it had 65 pupils. In 1992 a site was identified in Tramore, but in 1993 planning permission for the site was refused. In 1994 a second site was identified but in 1995 planning permission was refused again. In 1996 a series of meetings with council officials took place with a view to identifying a new site. In 1999 this happened and in 2000 the first building was built. Pupils have since been taught in prefabs. In view of the history of the struggle of the school and its long association with trying to get new buildings built and given that this has gone to the architectural design stage and that the majority of pupils in schools are being taught in prefabs which cost more in terms of rental accommodation, it would make economic sense as well as good social sense to ensure pupils are taught in the best possible accommodation. Everyone accepts that we are in tight circumstances and that it is more difficult to provide capital funding for everything. However, when the major capital investment in schools was announced by the Minister last year, we can appreciate that the pupils, parents, principal and board of management of the school believed their school would be successful. Unfortunately, it was not. Since I raised this matter on the Adjournment last year, the Minister has visited the school and he knows at first hand the need for the prefabs to be replaced with new classrooms to ensure pupils are taught in the best way. I hope the Minister of State has good news. If he does not have good news about capital funding being made available in order that the school can move to the building and planning stage, perhaps he can outline the future plans of the Department for the school.

I thank the Senator for raising this matter as it provides me with an opportunity to outline to the Seanad the Government's strategy for capital investment in school building projects in the next five years and to clarify the current position on the application for major capital funding from Gaelscoil Philib Barún, Tramore, County Waterford.

Gaelscoil Philib Barún is a primary school catering for both boys and girls and operating under the patronage of the Bishop of Waterford and Lismore. The school has been in operation since 1986 and was afforded permanent recognition in 1996. Enrolment for the 2011-12 school year was 219 pupils, an increase of 13% in the past five years. While enrolments have increased overall in the area in the past five to ten years, projections at primary level for the Tramore area up to 2018 indicate that enrolments will remain largely unchanged, with no anticipated increase in demand for additional classroom accommodation in the area over that period.

The brief for the major building project is to provide a new eight-classroom school, plus accommodation for three full-time special education teachers and appropriate ancillary accommodation, including a general purpose room. The design team for the project was appointed on 12 March 2012. The project is at an early stage of architectural planning. A standard pre-stage 1 meeting with departmental officials, the school authorities and the design team was held in the Department in July 2012. The pre-stage 1 meeting is a relatively recent introduction, as part of my Department's revised design team procedures, and is designed to consider all of the site-specific design options as presented by the design team and to agree on the best design option in taking the project forward. Due to issues arising from the pre-stage 1 presentation for Gaelscoil Philib Barún, a revised pre-stage 1 report was requested. This was received in the Department in November 2012 and, following its review, the school authorities and the design team were advised in December 2012 that the project was authorised to complete stage 1.

The design team is working on the completion of the stage 1 report and it is anticipated that the report will be submitted to the Department shortly. Once this stage is complete, the design team will proceed to stage 2a, which involves developing a more detailed design in preparation for the submission of applications to the local authority for planning permission, fire certificate and disability access certificate. These statutory applications, along with the completion of the tender documents for the project, comprise stage 2b, which is the final design stage of the architectural planning process.

Due to competing demands on my Department's capital budget imposed by the need to prioritise the limited funding available for the provision of additional school accommodation to meet increasing demographic requirements, it was not possible to include the project for Gaelscoil Philib Barún in the five year construction programme announced in March 2012. School building projects, including the new school for Gaelscoil Philib Barún, which have not been scheduled for construction in the five year programme but which had previously been announced for initial inclusion in the building programme will continue to be progressed to final planning stages in anticipation of the possibility of further funds being available to the Department in future years. The project for Gaelscoil Philib Barún remains available to be considered for progression in that context.

In January 2003 Gaelscoil Philib Barún moved to the incomplete site. In the same year the number of students in the school doubled. Since 2003, pupils have been in prefabs. That factor means the school should receive the appropriate funding and be in the capital programme. That is the Minister's call, not mine, and he must address that with the students and board of management. It is amazing that the school has jumped through every hoop and over every hurdle. The design team is in place and stage 1 is complete. This process may well end up being completed, with the design and planning completed, but the funding will not be available, even though the school has increased in size to a massive extent.

The Minister of State referred to demographics. The town of Tramore will come into the new metropolitan area of Waterford city under the new local government structures. It makes perfect sense for the Minister of State to ensure the school is properly built in order that it can cater for the growing needs of the people of Tramore. I must impress upon the Minister of State that the school must be built for the sake of the students who have been taught in prefabs for far too long. It is not good enough. I ask the Minister of State to ask the senior Minister to reconsider and ensure capital funding is provided as quickly as possible.

The Seanad adjourned at 3.10 p.m. until 1.30 p.m. on Tuesday, 29 January 2013.
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